The Public Entity Executive Classification Framework (PEECF) applies to relevant roles in public entities as defined in section 4 of the Public Administration Act 2004 and the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019.
The PEECF sets out the work value methodology for assessing and classifying executive positions into one of three bands, using tailored work value assessments.
Resources
Public entity executive work value assessment interview template
Use this template when conducting a work value assessment interview. This template incorporates questions against the work level standards and serves as a record of the interview.
Public entity work value streams overview document (for interviews)
This document is a high-level summary of the work value streams. This one-page overview provides a definition for each work value stream and is a handy resource to refer to when conducting a work value assessment interview.
Refer to the public entity executive classification framework for the detailed work value stream descriptors by band.
Public entity work value assessment tool
This is a downloadable version of the public entity work value assessment tool. Use this to determine a score by comparing information gathered through the assessment process against the descriptors in the tool.
Public entity executive work value assessment scoring sheet
Use the scoring sheet template to record the rationale for each work value standard score and determine the recommended classification level for a VPS executive position.
Public entity executive work value assessment report template
Use this template to complete a VPS executive work value assessment report. This report records the recommended outcome of an executive work value assessment.
Introduction
The Victorian Public Entity Executive Classification framework (the Framework) for executive roles in Victorian public entities aims to provide clarity on the expectations of executives at different levels. There is a similar parallel tool for executives in the Victorian public service (VPS) – the
These tools set a consistent basis for classifying executive positions into one of three bands, based on work value factors. This resource focuses on the public entity framework.
In guiding consistency across the sector, the framework supports executive mobility and the attraction of candidates.
The framework classifies the work value of a position based on a combination of factors and is not an assessment of the performance, strengths and/or specific expertise that an incumbent might bring to a position.
Key elements
The key elements of the Victorian Public Entity Executive Classification Framework include:
- a three-tier public entity executive classification band structure, where Public Entity Senior Executive Service Band 1 (PESES-1) is the lowest band and Public Entity Senior Executive Service Band 3 (PESES-3) is the highest band
- a methodology for evaluating the degree of complexity and responsibility associated with a position to support an assessment of where that position sits in the PESES band structure
- acknowledgement of the diversity of public entity Chief Executive Officers (or equivalent positions) in the classification approach.
Acknowledging the diverse nature of public entities, there is no provision for standard position titles.
Classification methodology
The Framework uses a methodology where positions are assessed and scored against eight work value factors which reflect the range of competencies and accountabilities with which executives working in the public sector are typically engaged.
Each position is allocated a point score on a scale of 1 to 7 for each factor, where scores increase in relation to the associated increase in complexity and responsibilities, with a clear differentiation in scoring rationale across the three bands.
The accumulated scores for the eight factors reflect the overall work value for the position and determines in which of the three PESES bands the position sits.
The eight work value factors are:
- knowledge
- relationships
- judgement and risk
- independence
- strategic change
- breadth
- impact
- resource management.
1 Overview
1.1 Purpose
The Framework provides clarity on the expectations of executives at different levels. It sets a consistent and transparent basis for classifying public entity executive positions into one of three bands, using a methodology which scores the work value of a given position.
1.2 Scope
This framework applies to relevant roles in public entities as defined in section 4 of the Public Administration Act 2004 and the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019 (VIRTIPS Act). This includes current, new and vacant positions.
The framework should be read in conjunction with the Victorian Government Public Entity Executive Remuneration Policy (the PEER Policy).
The PEER Policy applies to executives in a public entity prescribed under the VIRTIPS Regulations that are:
- a CEO (or similar role if not titled as such); or
- in a role that has been classified under the Framework with a work value score of at least 21; or
- in a role that has not yet been classified under the Framework that has a Total Remuneration Package (TRP) of at least the equivalent of the minimum TRP value of the Senior Executive Service 1 remuneration band for executives employed in public service bodies.
but does not include:
- staff whose remuneration rates are specified by an award or enterprise agreement; or
- technical specialists who meet one of the criteria outlined above, but do not have a people management function; or
- statutory or prerogative office holders appointed to public entities.
There is a broad range of work value amongst public entity Chief Executive Officers which requires a framework that can accommodate this diversity, as outlined in 1.6 below.
1.3 Timing and consultation
A current work value assessment under the Framework must be undertaken and the relevant position must be classified accordingly where:
- creating a new position; or
- renewing an expiring contract; or
- making a remuneration adjustment (other than as a result of an annual adjustment determined by the Tribunal or government).
For the purposes of renewing an expiring contract or making a remuneration adjustment (other than as a result of an annual adjustment determined by the Tribunal or government), a work value assessment is considered current if it is completed within the 12 months preceding those circumstances.
Public entities are required to consult with their portfolio department before finalising a work value assessment:
- for a new executive position; or
- where a change to the classification of an existing executive position is proposed.
1.4 Design
The Framework provides:
- a clear methodology for classifying positions and a good foundation for classification decisions
- an assessment methodology that is easy to understand, simple to use, and that can be applied to executive positions across the public entities.
The framework aligns as far as possible to the Victorian Public Service Executive Classification Framework in the interests of supporting consistency between the public service and public entities.
1.5 Executive classification bands
There are three public entity executive classification bands: PESES-1, PESES-2 and PESES-3. The band classification of a position is determined by the following:
- level of accountability
- complexity of work undertaken, and the associated knowledge required
- management and oversight of subordinates
- associated risk
- authority to make decisions, form policy and/or provide advice and recommendations within the organisation and to other public sector stakeholders.
1.6 Chief Executive Officers
Chief Executive Officers (CEO), or equivalent positions of Victorian public entities can lead organisations which range in size from less than 10 staff to more than 1,000. They represent approximately 10 per cent of the public entity executive workforce.
Acknowledging the diversity of CEO positions in public entities, the framework has been designed to allow for a public entity CEO to be assessed as sitting in any one of the three PESES bands. The position is assessed using the same work value criteria as will be applied to all public entity executive positions.
In some instances, a Chief Executive Officer may be assessed to have a work value below an executive classification as defined by the framework but will continue to retain the legislated title of Chief Executive Officer (or equivalent) and will continue to be defined as an executive for the purpose of the PEER Policy and the Tribunal’s Determination. An outline of this is presented in Table 1 below, where the full detail of the methodology can be found in subsequent sections.
Table 1: Chief Executive Officer classifications
| Public Entity Chief Executive Officers | ||||
| Classification assessment | Public entity CEO who does not meet a PESES band | Public entity CEO in PESES Band 1 | Public entity CEO in PESES Band 2 | Public entity CEO in PESES Band 3 |
| Framework status | Not classified under this framework | Classified under this framework | ||
| Who it applies to | Public entity Chief Executive Officers whose work value score does not meet the threshold for an executive classification under this framework | Public entity Chief Executive Officers who meet the work value score equivalent to PESES-1 (see section 2.3) | Public entity Chief Executive Officers who meet the work value score equivalent to PESES-2 (see section 2.3) | Public entity Chief Executive Officers who meet the work value score equivalent to PESES-3 (see section 2.3) |
End of table
2 Work value scoring and work streams
2.1 Work value scoring
The heart of the Framework 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 summary of the process for assessing an executive position using the Framework
- an illustration of what a set of assessment outcomes in example organisations could look like.
2.2 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 principle functions of public sector executives. The streams are summarised in Table 3.
Table 3: Work value streams
| Stream | Definition |
| 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 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 PESES Band 2 level and confirm that the position aligns.
2.3 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
| Classification | Score |
| 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
| Outcome | Possible action |
|
Currently under classified (position assessment results in a higher alignment relative to the executive structure than previously) |
The entity Head or Board may decide to:
|
|
Currently over classified (position assessment results in a lower alignment relative to the executive structure than previously) NB: This could include positions which score less than 21 points and therefore fall below the threshold to meet an executive classification |
The entity Head or Board may decide to:
|