Defence Ex-Service Organisation People Briefing Day

Defence Ex-Service Organisation People Briefing Day Tuesday 17 May 2011

Major General Craig Orme AM, CSC Head of People Capability

Setting the Scene Defending Australia in the Asia Pacific Century  White Paper outlines the Government’s strategy for the Defence of Australia, our People and their interests.  It provides for a substantial investment in the military capabilities of the Australian Defence Force (ADF).  As well as systems and platforms, building Force 2030 requires investment in People.  Defence will need to attract its required share of the potential workforce.

Setting the Scene Generating the Future Force Force 2030 is built upon three foundation elements:  the equipment, systems and associated support that provides the hard edge of military capability  the People capability required to operate and support the equipment and systems, and to manage the business of Defence  the delivery of Strategic Reform in Defence creating the capacity to re-invest in Defence Capability.

Strategic Reform in Defence The Strategic Reform Program 

Developed by Defence Leadership and Government.

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Will fundamentally overhaul the entire Defence enterprise.

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Designed to create an agile, effective, efficient and accountable organisation.

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Deliver Force 2030 in a sustainable form.

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There are 15 streams, comprising of around 300 separate projects across Defence.

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More than half the streams are NOT required to generate cost savings. Rather they are areas where Defence has identified opportunities for improvement.

Strategic Reform in Defence

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Reform unleashes energy in the form of new ideas and a desire to make things better.

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Under SRP, money has been put aside to invest in some of these ideas and to support skills development and process change.

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There are three basic measures for assessing the SRP: • Cost reductions achieved; • no detrimental impact on capability, including safety; and • not breaking the organisation.

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In order to meet all three measures at the same time, work must be done differently and that is the real point of the SRP.

Defence Workforce Overview Current People Position  ADF Strength – 58,239  Navy – 13,849 (increase of 427)  Army – 29,701 (increase of 452)  Air Force – 14,689 (increase of 9)  13.7 percent female – up 195 personnel on last year  Rolling Separation Rate of 7.6 percent (increase 0.6 percent)  APS 22,145 – Rolling separation rate 7.0 percent (increase 1.3 percent)

People in Defence 2015

People in Defence is focused on 2015 because: 

The new approaches we need to adopt are aligned to the Strategic Reform Program – they either support SRP or rely on it – and 2015 is the timeline for completion of the Workforce and Shared Services reform stream.

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Achieving improvements in the delivery of outputs that matter to our people over the next four years is a prerequisite to building the Force of 2030.

Implementing the Blueprint THE TOTALITY OF THE DEFENCE PEOPLE STRATEGY

People in Defence Vision

How Do We Ensure We Get There?

People in Defence Initiatives

There are many initiatives under the People in Defence project, many of which are either well underway or finalised. Some of these include: • Developing new housing and accommodation assistance options to reduce the number of anomalies in the current policy. • Reviewing and enhancing rehabilitation and injury compensation policy and support • Implementation of the Defence Annual People Plan to help achieve People in Defence initiatives and keep us on track.

People in Defence Initiatives

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Driving cultural change through the New Generation Navy, Submariner Workforce Sustainability Review, Adaptive Army and Air Force – One Team reform strategies.

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Improving support to families through availability and services of Community Development Officers and enhancement of spousal employment support and children’s education support.

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Implementing programs to increase the retention of women.

Partnering to deliver People Commitments The Hon Warren Snowdon Minister for Defence Science and Personnel and Veterans’ Affairs

The Defence Employment Offer Major General Craig Orme AM, CSC Head of People Capability

Defence Employment Offer Project

As part of the overall People in Defence program, the Defence Employment Offer Project has been designed to help attract and retain our workforce.

Our initial research has indicated that there are a number of areas where we need to look at what we are saying versus what we are doing to meet people’s expectations.

Defence Employment Offer Project

An effective employment offer is determined by a clear understanding of: 

The elements of employment that people targeted by, and working in, the organisation value most;

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The unique characteristics of an organisation that differentiate it from its competitors; and

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The elements of employment that an organisation can confidently deliver.

Defence Employment Offer Project

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In 2008 DEPSEC PSP articulated a series of ‘brand promises’ or foundation commitments, which can be seen as the initial steps towards the concept of an employment offer.

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These brand promises provide a focus for delivering key elements of the Defence people strategy.

Defence Employment Offer Project Findings on Importance – Core DEO elements The core DEO elements rated as most important for Defence personnel overall were (in order of priority):  Opportunity  Reward  People  Work  Organisation

Defence Employment Offer Project Top five employment sub-elements by importance - by Service TOP 5 EMPLOYMENT SUB ELEMENTS BY IMPORTANCE DEFENCE - WIDE JOB SECURITY - JOB SATISFACTION - RESPECT - TRAINING AND DEVELOPMENT - HEALTH AND WELLBEING

Navy Job Satisfaction Training & Development Respect Career Management Location Remuneration – Non Salary

Army Job Satisfaction Job Security Leave Retirement Benefits Remuneration – Salary Remuneration – Non Salary

Air Force Job Satisfaction Job Security Career Management Health &Well-being Promotion

Army Reserves Training & Development Community & Country Job Security Collegial Work Environment Leader Quality

APS Respect Fairness Job Security Job Satisfaction Promotion

ADF Job Security Job Satisfaction Training & Development Health & Wellbeing Career Management

Defence Employment Offer Project The top 11 subcategories within the DEO framework that members have rated as important are: • • • • • • • • • • •

Job Security Job Satisfaction Respect Training & Development Health & Wellbeing Fairness Promotion Leader Quality Remuneration – Salary Work-Life Balance Career Management

(Opportunity) (Work) (Organisation) (Opportunity) (Organisation) (Organisation) (Opportunity) (People) (Reward) (Work) (Opportunity)

Defence Employment Offer Project

Where to now? ď‚&#x;

A communications working group has been established to commence building the communications and marketing strategies.

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Further validation of original findings.

QUESTIONS

Support for Wounded Injured or Ill Program SWIIP Major General Craig Orme AM, CSC Head of People Capability

Background

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Early 2010 Head People Capability and Commander Joint Health Command agreed the need to review the support process for injured or ill ADF members

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As a consequence the Support for Injured or Ill Project (SIIP) was conducted between Aug and Dec 10

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SIIP included a gap analysis against best practice of Defence, single Service and DVA policies, processes and services

Existing Support Process CCPS OHSMIS

DEFCARE JEDHI

OHSCAR

JEDHI

rlike

TECHNOLOGY

Link up functions

Wa

LEGISLATION

DEPSEC PSP VCDF

Occupational Health & Safety Act

Non -wa rlike

OWNER

Workplace Safety

ADF Health

VCDF CJHLTH

Rehabilitation Compensation

VCDF CJHLTH

DVA

Military Rehabilitation & Compensation Act Safety, Rehabilitation & Compensation Act

Pea ce t ime

ELEMENT

JP2080 - PMKeys

CADET

Veterans Entitlements Act

Transition

DSG

A Coordinated Effort

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The review concluded that the system is generally good and results in high return-to-work rates for rehabilitated ADF members

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It also concluded that more coordination and integration of Defence and DVA programs would improve outcomes for members and their families/carers

Current Situation

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A second phase (renamed Support for Wounded, Injured or Ill Project (SWIIP) will be conducted during 2011

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SWIIP will implement the recommendations of the gap analysis and develop a structure around which to build a coherent, effective and efficient support system

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SWIIP is a joint Defence and DVA program

The Future Support System – Guiding Principles The aim of SWIIP is to realise a support system that complies with the following Principles: • The system works for the member while enabling ADF capability • The system promotes a culture of resilience, rehabilitation and recovery • The system is family friendly, recognising the role of the member’s family and/or significant carer in the member’s rehabilitation • The system shields the individual and their families or carers from its inherent complexity • The system enables the Services to fulfil their moral obligation to the ADF member during and after service

Guiding Principles

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The system addresses the long-term effects of operational service

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The system facilitates improvement in Occupational Health and Safety performance

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The system enables the earliest possible notification and reporting between Defence and DVA to enable liability to be determined

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The system facilitates DVA establishing a relationship with the ADF member

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The system meets the needs of all parties, providing open access to information unless legislative restrictions on access apply

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The system is enduring

SWIIP is Not Just Another ‘Good Idea’

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SWIIP is more than just another project

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At SWIIP’s heart is an agenda for change – a fundamental shift in culture in both Defence and DVA

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SWIIP is about a truly joint approach to the provision of support to wounded, injured or ill ADF members

QUESTIONS

ADF Housing Ms Sylvana Bell Director Housing and Removals Policy

Housing Assistance Overview

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Housing assistance policy objectives and rational

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Key components of housing assistance

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Home ownership assistance

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Future policy direction

Policy Objectives and Principles

Commonwealth Housing Goals 1985 ď‚&#x;

principal goal - to provide housing that is required for the efficient and effective operation of the Defence force that is equitable, efficiently administered, and cost-effective

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subsidiary goal - to compensate for the housing disability caused by the Defence requirement for members and their families to frequently relocate

Why is housing assistance provided?

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To support Defence capability;

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To compensate for the requirement to relocate frequently; and

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Allow members and their families to be part of the local community (whenever possible).

Key Components

Living-in Accommodation

Rent Allowance

Service Residences

Home Ownership Assistance

Defence Home Ownership Assistance Scheme

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introduced on 1 July 2008

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a targeted ADF Retention measure (increased subsidy for longer service)

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subsidy on the interest component of a home mortgage

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administered by Department of Veteran’s Affairs

DHOAS

Home Purchase Assistance Scheme ď‚&#x;

grant to assist with the first home purchase while in the ADF

Home Purchase/Sale Expense Allowance ď‚&#x;

reimbursement of the expenses incurred in buying and selling a home on posting

Future Policy Direction

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contemporary policies to support ADF capability (including attraction and retention)

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strategic contract management that is appropriately funded by Government

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access to quality housing that meets ADF member needs and matches community standards

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greater flexibility of housing options for members

Remuneration Military Salaries and Allowances CAPT Angela Bond (RAN) Director Military Salary and Allowances Policy

Military Salaries and Allowances

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structure of ADF Remuneration

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the Defence Force Remuneration Tribunal

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Remuneration Reform Program

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salaries – GOPS, GORPS and other Pay Cases

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Strategic Allowance Review

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Workplace Remuneration Arrangements

Structure of ADF Remuneration

The current ADF allowance system has two discreet jurisdictions under the Defence Act 1903 • the Ministerial power of determination (Section 58B); and • the Defence Force Remuneration Tribunal (DFRT) power of determination (Section 58H).

Structure of ADF Remuneration

• The current Australian Defence Force allowance system has two discreet jurisdictions under the Defence Act 1903; the Ministerial power of determination (Section 58B) and the Defence Force Remuneration Tribunal (DFRT) power of determination (Section 58H).

Structure of ADF Remuneration

Section 58B benefits 

compensatory in nature

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compensate members for the exigencies of Service life

Section 58H allowances 

remunerative in that they recognise the conditions under which work is performed.

The Defence Force Remuneration Tribunal

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established by statute on 25 October 1984 with the enactment of legislation amending the Defence Act 1903

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determine the salaries and relevant allowances to be paid to both Regular and Reserve Force members

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biennial review of both salaries and salary-related allowances

Benefits of the DFRT

Allows for a more equitable remunerative system for ADF members ď‚&#x; independent, statutory body ď‚&#x; able to remain largely free from political influence in the determination of ADF salaries and allowances

Remuneration Reform Program

6 Phases •

Phase 3 – GOPS

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Phase 4 – GORPS

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Phase 5 - Specialist Pay Cases

Remuneration Reform Program RRP pay structures  based on establishing employment categories  categories are classified by job family & inter-family relationships

Placement within these families is dependant upon  assessments of rank and work value  ADF capability and internal relativities  external comparisons to meet market-force demands

Regular reviews  conducted by the Defence Force Remuneration Tribunal  may result in increased pay for members

Remuneration Reform Program – Phases 1 & 2

Phase One 

quantification of the Qualification and Skill, and Disability components of the major environmental allowances

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phase concluded in mid-2003

Phase Two 

the Qualification and Skill elements of the major environmental allowances were made superannuable

Remuneration Reform Program – Phase 3

Stage One • •

development of new graded pay structures for officers and Warrant Officers Class One new structures were approved on 5 October 2006

Stage Two • •

placement of all officers and Warrant Officers in the new pay structures (with effect 9 August 2007) provided increased pay for many Officers and Warrant Officers

Remuneration Reform Program – Phase 3 

Graded Officer Pay Structure

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recognises Rank and Skill

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10 Pay Grades

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differentials approx 4k+ (informed by roll-in of Q&S Allowances)

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single Service placements

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based on internal relativities

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command valued differently between Services

Remuneration Reform Program – Phase 4 Stage One • • •

16 graded pay structure for Other Ranks Qualification and Skills elements of allowances rolled into salary implemented on 9 August 2007

Stage Two • • •

10 graded pay structure for Other Ranks and Warrant Officers pay improvements - up to 10% for specific employment categories effective from 4 September 2008

Modernisation of trainee pay rates • • •

changing the percentage discounts introduction of a Trainee Allowance to compensate for disabilities incurred while undergoing training effective from 8 January 2009

Remuneration Reform Program – Phase 4

Summary • • • • • • • •

Graded Other Ranks Pay Structure recognises Rank and Skill 10 Pay Grades Tri-service “Family Placements” based on work value / internal relativity similar placement for like trades differentials grow from PG 2 onwards WO1(E) covered by separate structure that is an extension of GORPS

Remuneration Reform Program – Phase 5 Modernisation of Aircrew remuneration Introducing an Officer Aviation Remuneration Structure Aviation Officers choose between: • a career tailored from progression to senior levels • one that priorities specialist employment in a flying/air traffic control console operator employment

Air Traffic Controller and Aircrew Capability Allowances  

designed to address ADF capability demands effective from 1 October 2009

Salary Reviews Outside of RRP

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Star Ranks

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Service Warrant Officers

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Medical Officer

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Specialist Officer

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Recent Pay Cases

Star Ranks Remuneration Arrangements

Introduced 

senior officer graded structure (17 March 2011)

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senior specialist Medical Officer structure (17 March 2011)

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individual remuneration for senior specialist Legal and Dental Officers

Service Warrant Officer Remuneration

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currently covered by Individual Determinations in Tier D of the Warrant Officer Class 1 (E) pay structure

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proposal has been made to the DFRT

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simplify remuneration arrangements for Service Warrant Officers

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introduces a single pay point

Medical Officer Remuneration

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Medical Officer Specialist Officer Career Structure was reviewed in 2010

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salaries benchmarked against public sectors and increased to be competitive with but not equal to public sectors

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increment points added to two competency levels

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procedural specialist pay point introduced

Review of the Specialist Officer Career Structures Specialist Officer Career Structures covering: • Legal • Dental • Medical Officers • Chaplains Introduced between 2002 and 2003 Competency based with a rank overlay Structures to be: • reviewed in 2011 • presented to DFRT in 2012

Recent Pay Cases 

ADF Investigators

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Physical Training Instructors

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Ground Base Air Defence

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Surveillance Target Acquisition

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Royal Australian Infantry Corps

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Air Base Protection

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Aviation Support

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Maritime Warfare Officer/Maritime Combat Officer

Remuneration Reform Program – Phase 6

Strategic Allowance Review Review of all Defence Act 1903 section 58H Allowances Incorporates: •

previously postponed biennial reviews of individual allowances

•

a holistic look at the overall structure, quanta and contemporary validity of the allowances

QUESTIONS

Continued Engagement A Way Forward MAJGEN Craig Orme AM, CSC Head People Capability