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

Executives officers 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 EO employment arrangements reflect best practice and position our executives to continue the quality work and progressive leadership which characterises our public sector.

These 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

The initial stage of the project – a review of Victoria’s Executive Officer employment and remuneration framework – was delivered to the Premier in July 2016.

That review recommended significant changes to key elements of 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.

Specifically, this new stage of the project will see 3 key streams of activity:

  • review of executive employment across the broader public sector
  • a new approach to classification and remuneration
  • a performance management framework

VPSC is on track to deliver the agreed program of work in May 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 last year’s public service focused review, VPSC will now look at executive workforce employment and remuneration arrangements in more than 200 public entities. This includes consulting with sector CEOs and senior executives, seeking their opinions and input.

This will allow Government to ensure all executive employment and remuneration arrangements continue to remain fit for purpose.

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

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

The first four reviews are already underway. The remaining segments (TAFE and other education, emergency services, sport, recreation, arts and facilities, and regulators and other agencies) are scheduled for the second half of 2017.

New Executive Classification and Remuneration 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 and Remuneration Framework for the Victorian public service (VPS), addressing

  • classification and remuneration work levels
  • work level standards
  • work value assessment methodology and training
  • implementation recommendations

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

This work will effect executive officers in the public service, and these staff will be consulted as part of the Framework’s design.

New Performance Management Framework

OBJECTIVE: A Framework that helps employers set clear performance expectations, assess achievement and intervene where required, and enables benchmarking of executive officer performance across agencies.

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

This project stream is in the planning phase with consultations to begin soon.

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.

Key changes proposed are:

  • 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 has more details on 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 VPSC.