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 Summary Report contains further detail about the issues in executive workforce arrangements and recommendations for establishing optimum arrangements.
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