Work value scoring
The heart of the Public Entity Executive Classification Framework (PEECF) is the eight work value factors (WVFs), which are the competencies and accountabilities generally associated with a public entity executive position and which are summarised in Table 2 below. The WVFs provide the basis for describing and determining the classification of executive positions into either of bands PESES 1, 2 or 3.
Table 2: Work value factors
|Work value factor||Definition|
|Knowledge||level of required knowledge, skills and expertise; proficiency in a specialised discipline; level of authority; depth of understanding of the work environment; whether a source of advice, and to whom|
|Relationships||requirement to influence and negotiate; level, frequency and quantity of interaction with internal and external stakeholders; assessment of the sensitivity and complexity of issues and interactions|
|Judgement and risk||the complexity of decision-making and risk assessment and mitigation associated with the position; degree of uncertainty and ambiguity; criticality of judgements and risks; the level at which the risk/judgement applies: e.g. organisational/state/nationwide|
|Independence||the requirement to make decisions without support; authority and freedom to plan objectives; requirement to contribute to or lead strategic direction of the entity|
|Strategic change||delivering change; measured by the position’s extent of responsibility for and level of complexity of significant strategic change management; contribution to business improvement;|
|Impact||developing the policy frameworks and the strategic direction of the entity; measured by the scope of the position’s impact internally, into the sector, across the state or nationally/internationally|
|Breadth||diversity of activities and functions managed by the position; geographical breadth of responsibility; range of programs, projects and services managed by the position.|
|Resource management||number of staff and size of resources and budget.|
The eight factors do not reflect all the possible components of positions at each band across each and every public entity. Rather they focus on the core components, common to all executive positions, that are considered to reach a classification outcome.
This document should be read in conjunction with the appendices which contain:
- the detailed descriptors for each factor, along with the differentiated scoring;
- a tool which summarises how to apply the methodology;
- a diagram of the process flow for assessing an executive position using the PEECF; and,
- an illustration of what a set of assessment outcomes in example organisations could look like.
Work value streams
The second element that is considered in making a classification recommendation are the tasks and responsibilities that executives undertake, i.e. to which activities the work value effort in areas such as knowledge, judgement and risk, strategic change etc are applied. These activities are grouped under five work value streams which reflect the principal functions of public sector executives. The streams are summarised in Table 3.
Table 3: Work value streams
|Delivery||A principal focus for an executive active in this stream is service delivery. This may include delivery of services within an organisation, such as financial, human resource or IT services. Or it could reflect the position’s responsibility for the delivery of services and/or policy objectives within a sector. This stream would also include many operational positions.|
|Policy||The policy stream relates to policy formulation, implementation and advice. This might include research and analysis, financial considerations and other relevant implications. Other responsibilities include seeking and addressing stakeholder views obtained through consultations, and articulation of policy, regulatory or financial measures and legislation.|
|Project and Program||In this stream, the most significant contribution of positions relates to the planning, management and ongoing implementation of project and program initiatives.|
|Regulatory||The most significant contribution of positions in this stream relates to information gathering and risk assessment and the design and implementation of compliance and enforcement programs within a governance framework.|
|Professional/Specialist||The most significant contribution of positions in this stream is the provision of technical, professional, specialist, or strategic advice at a significant level of complexity with associated substantial risk and accountability for high impact outcomes. Advice is core to an entity’s business and has a primary influence on the entity’s adopted strategies, plans and targets.|
Although any given executive position may incorporate many of these elements, the position will likely have a more significant contribution in one or two work streams.
Determining the work value stream or streams for a position is not a scored exercise. Rather it can be helpful to validate the position’s band determination. The full work stream descriptors in Appendix 2 differentiate between the bands based on the complexity and responsibility of the functions performed.
For example, where a position has been provisionally classified following the work value assessment as meeting PESES Band 2 and the assessment process has identified the role as active primarily in the delivery stream, the assessor can refer to the delivery descriptor for an executive working at SES Band 2 level and confirm that the position aligns.
Work value assessment outcomes
The assessment of a position will produce a score which determines the appropriate classification outcome. Table 4 shows the differentiation of scores across the three bands.
Table 4: Public Entity Senior Executive Service Classification Bands
|Public Entity Senior Executive Service Band 1||21 to 35|
|Public Entity Senior Executive Service Band 2||36 to 47|
|Public Entity Senior Executive Service Band 3||48 to 56|
Following the evaluation process there are several possible classification outcomes. In all circumstances it is for the Public Entity Head or the Board, where appropriate, to make the final decision on outcomes.
Where a position aligns to an entity’s current executive structure, no action is needed. For positions where implementation of the outcome would result in a different executive alignment, Table 5 below outlines the potential actions for consideration by the public entity Head.
An organisation may choose to not take immediate action and instead re-design a position after it becomes vacant. If the position holds a substantive executive employee, the decision can be implemented during the term of the substantive employee’s employment contract (subject to the contractual arrangements), or immediately following the expiry of said contract.
Table 5: Options for work value assessment outcomes
|The assessment outcome is in the remuneration band the role was allocated to on the date of the Determination||No action required.|
|The assessment outcome puts the role in a higher band relative to band the role was allocated to on the date of the Determination||The CEO or chair of the board may decide to:
The assessment outcome puts the role in a lower band relative to band the role was allocated to on the date of the Determination
|The CEO or chair of the board may decide to:
The assessment outcome puts the role at the edge of a classification, either at the highest score or lowest score possible for that band.
If this happened, the assessment team would tell the CEO or chair of the board in the outcome report.
The team would hold validation meetings on which outcomes are borderline and what the possible courses of action are.
|The CEO or chair of the board may decide to:
|The assessment outcome means the role doesn’t meet an executive classification.||If the work value score for a position is less than 21, the role doesn’t meet an executive classification|
Changes to roles, responsibilities or remuneration as a result of work value assessments can only occur when the contract expires or if the executive agrees to negotiate a contract variation.
Changes to a CEO role as a result of the assessment may require Ministerial approval under the public entity’s enabling legislation.