VPSC is working with the Government, our public service and the broader public sector to deliver reforms to Victoria's executive employment and remuneration framework.

Executives play a critical role, leading our public institutions and supporting the delivery of high quality services for Victorians. Enabling government to recruit and retain the best people is important. Victoria must ensure that executive employment arrangements reflect best practice and position our executives to continue the quality work and progressive leadership which characterises our public sector.

Reforms will:

  • make sure employment and remuneration arrangements for all public entities are clear, effective, efficient and transparent
  • support public sector employers in attracting, retaining and developing the best senior leaders
  • enable easy comparison of executive performance across agencies
  • ensure Victoria receives value for the remuneration it provides

review of Victoria’s Executive Officer employment and remuneration framework was delivered to the Premier in July 2016.

It recommended significant changes to existing arrangements, in order to establish a clearer, more effective framework.

In December 2016, the Premier directed VPSC to implement a number of the recommendations and to expand its review to the broader public sector.

This will involve 3 key streams of activity:

  • review of executive employment across the broader public sector
  • a new approach to executive classification within the public service
  • an executive performance management framework within the public service.

VPSC is on track to deliver the agreed program of work in 2018.

For further information about the Executive Workforce Reform program, please contact us.

3 key reform streams

Review of executive employment arrangements in the public sector.

OBJECTIVE: Make sure employment and remuneration arrangements for all public entities are clear, effective, efficient and transparent.

Following the 2016 public service focused review, VPSC was asked to look at executive workforce employment and remuneration arrangements in more than 200 public entities.

VPSC consulted with public entity board Chairs, CEOs and senior executives, seeking their opinions and input to ensure all executive employment and remuneration arrangements remain fit for purpose.

The reviews were broken down by industry segment, resulting in 8 groupings:

  • public healthcare
  • transport, construction and infrastructure
  • finance and insurance
  • water and land management
  • sport, recreation, arts and facilitiees
  • emergency services
  • TAFE and other education
  • regulators and other agencies

The reviews were conducted between January 2017 and March 2018.

VPSC is preparing a final report which draws together the themes from all 8 industry segment reviews, and presents a set of overarching findings and recommendations.

New Executive Classification Framework

OBJECTIVE: Deliver a Framework that is clear, values the work of Victoria’s executives and is competitive so Victoria can attract the best talent.

VPSC will develop an Executive Classification Framework for the Victorian public service, which consists of:

  • assessment of executive roles based on work value
  • work level standards which offer a basis for describing and determining the classification of executive roles
  • work value assessment methodology and training

The Framework will help public service employers to create executive roles with clear expectations of work level, and assist departments and agencies to manage equity.

This work will affect executives in the public service who will be consulted as part of the Framework’s design.

New Performance Management Framework

OBJECTIVE: Deliver a framework to set clear executive performance expectations that are linked to organisational and whole of government objectives and build a culture of high performance.

VPSC will develop a Performance Management Framework that complements the Classification Framework, to assist the public service to manage executive performance.

2016 Review

Review of Victoria’s Executive Officer employment and remuneration framework

In July 2015, the Premier directed VPSC to review Victoria’s executive officer (EO) employment and remuneration framework.

The review was the first comprehensive examination of Victoria’s EO employment and remuneration arrangements in over two decades. It provided an opportunity to consider optimum arrangements for the employment of high performing Victorian public sector leaders now and into the future.

The review found that current Victorian Public Service (VPS) employment and remuneration arrangements are not best placed to support a high performing EO workforce. Fundamentally, current arrangements do not provide transparency, fairness and rigour in classification and remuneration of EOs. In addition, Victoria’s EO employment offer does not incentivise movement from the non-executive public service workforce into the EO classification, and is uncompetitive with other jurisdictions.

Proposed changes included:

  • The development of a new framework for classifying and remunerating public service executives on the basis of work value.
  • Changes to employment terms and conditions so that Victoria’s executive offer is more competitive.
  • Stricter requirements and improved guidance on performance management processes.
  • More systematic oversight and governance of the workforce, including a single point of oversight for significant remuneration decisions and analysis of public sector EO employment trends.
  • Public entity industry segment reviews to examine the applicability of the proposed VPS employment arrangements to the broader public sector.

The proposed changes are intended to drive greater integrity, accountability and value for money. Importantly, the reforms are intended to attract and retain high performing EOs, and establish Victoria as an employer of choice for public sector executives in Australia.

The Review of Victoria’s Executive Officer Employment and Remuneration Framework: Summary Report contains further detail about the issues in executive workforce arrangements and recommendations for establishing optimum arrangements.

Download the Review of Victoria’s Executive Officer Employment and Remuneration Framework: Summary Report (PDF, 733KB, 53pages)

If you have difficulties downloading the PDF, or require an accessible version, please contact us.