Centrelink annual report 1999 – 2000 Contact officer

Providing better work/life choices

In recognition that competing demands on people’s time is often an area of stress in their lives, we are developing an online Work/life Resource Kit that will provide employees with information on how they can find better balance between work and home.

Health and Safety

In order to improve our OH&S performance and make the greatest contribution to our overall business performance, we have focused this year on strategies to:

• 
  reduce the number and severity of accidents and incidents occurring in our workplaces;
  
• 
  reduce the frequency and cost of workers’ compensation claims;
  
• 
  ensure our compliance with OH&S legislative requirements; and
  
• 
  integrate OH&S activities into mainstream management practices.
  

Centrelink recognises that customer aggression is a major occupational health and safety issue. Reducing the severity and incidence of customer aggression has been a priority this year.

Centrelink and Comcare co-sponsored a project to develop best practice principles to identify, assess and control all actual and potential situations and events that may give rise to customer aggression. Major outcomes of the research project are:

• 
  an action plan to implement improvements in prevention, incident management and post-incident management of customer aggression; and
  
• 
  the release in February 2000 of a Centrelink/Comcare risk management guide for customer service providers entitled Applying Best Practice Principles to the Prevention and Management of Customer Aggression.
  

The release of the guide at a time when the issue of workplace violence was being highlighted in the media and other forums has identified Centrelink as a recognized best practice organization in the prevention and management of customer aggression. As a result, Centrelink is regularly consulted by other customer service provider organisations wishing to develop or further enhance their approach to preventing customer aggression.

Monitoring, Evaluation and Analysis of OH&S Outcomes

Centrelink recognises that effective health and safety management systems make good business sense, represent a cost-effective investment in our people and will lead to a reduction in the high social and financial costs of occupational injury and illness. To ensure that a cooperative and consultative relationship exists between Centrelink and its employees in resolving health and safety issues, all Centrelink Human Resource Advisory Units report quarterly on the:

• 
  number of Designated Work Groups;
  
• 
  number of Health and Safety Representatives and Deputy Health and Safety Representatives, and requirements for health and safety training;
  
• 
  number of Health and Safety Committee meetings and details on the frequency that committees meet; and
  
• 
  qualitative aspects of health promotion and early intervention activities.
  

Table 15: Occupational Health and Safety Details 1999–2000

With a focus on the proactive aspects of health promotion and early intervention activities, we began from June 1999 to monitor investment in organizational well-being in the Balanced Scorecard. Using external benchmarks from other public sector employers, we set a target of an average of $150 per full-time equivalent employee. We achieved our target with an annual average investment per full-time equivalent of $156.64.

Reducing the Comcare Premium

Comcare has advised that Centrelink’s 2000–01 workers’ compensation prescribed premium rate will be $1.00 for each dollar of wages and salary, down 22 cents from the 1999–2000 rate of $1.22 per wage and salary dollar. Centrelink’s performance compares very favourably with other Commonwealth agencies where the average reduction in prescribed premium rate was only half a cent. However, Centrelink’s premium rate remains slightly higher than the Commonwealth pool rate of $0.98 per wage and salary dollar.

Premium rates are determined by reference to both claim frequency and cost. For Centrelink, this year’s premium rate reduction can be attributed to fewer claims (when compared both to other agencies and to our 1998–99 claim frequency) and a higher proportion of claims without time off work. This result points to the success of our early intervention and prevention strategies.

However, the average cost of our claims rose an average of $1331 in comparison to a $1012 rise for the Commonwealth pool. To address this issue, we will be encouraging our rehabilitation case managers to focus on best practice approaches to managing high cost claims.

Positive Attendance project

We have been monitoring employee attendance through the ‘Improved Attendance’ measure in the Balanced Scorecard since 1997. This measure includes all personal leave (including sick and carer’s leave), short periods of unpaid miscellaneous leave and compensation leave. This measure (minus the compensation leave component) is also included among the measures used to determine pay rises in the Centrelink Development Agreement 1999–2002.

This year we reduced our unplanned absence by 15.68 per cent, which is the equivalent of two days per full-time equivalent employee. This is a good result considering that unplanned absence had risen by 3.6 per cent during 1998–99. However, this year’s overall result of 14.73 days for each full-time equivalent employee remains higher than APS and industry averages.

Maintaining the reduction in unplanned leave is a priority for Centrelink. Under the agreement, the unplanned leave measure is one of the measures used to determine our next pay rise.

• 
  an attendance policy statement aligned with Centrelink’s current and future business needs;
  
• 
  a team leader’s resource kit containing information and tools to assist managers and team leaders to obtain solutions tailored to local needs;
  
• 
  an education program for employees to assist them to understand the extent, nature and cost of non-attendance; and
  
• 
  better attendance monitoring and reporting tools.
  

Promoting a culture of high performing people

We have been working toward creating a high performing workforce by:

• 
  clearly articulating the productivity outcomes people need to deliver and linking these outcomes to pay;
  
• 
  providing structured performance feedback that links employees’ objectives to our goals and Shared Behaviours;
  
• 
  improving recruitment and selection processes; and
  
• 
  recognising the superior performance and contribution of our people.
  

Table 17: Centrelink Development Agreement Scorecard

MEASURES	TARGET	RESULT
Client Partnerships timeliness of claims processed	1	1.11
Client Partnerships—accuracy standards are met	1	1.04
Client Partnerships—compliance benchmark	1	1.10
Customer & Community—overall customer satisfaction	1	1.00
Customer & Community—satisfaction with personal service	1	1.06
Customer & Community—call waiting time	1	3.04
Customer & Community—appeals	1	0.97
People—Team and Individual Learning Plans	1	0.88
Cost-Efficiency—reduced Comcare premium	1	1.16
Cost-Efficiency—increased attendance	1	1.07
Cost-Efficiency—debt reduction	1	0.89
Overall Average*		1.21

* Assessment based on 31 May 2000 year to date data as June data would not alter outcome.

Linking Pay to Performance

To recognise the contribution made by all our people to achieving business outcomes, and to ensure that pay increases are supported by genuine productivity improvements, the Centrelink Development Agreement 1999–2002 links employees’ salary increases with our overall average of performance against the following 11 Balanced Scorecard measures.

As we had met our target, in accordance with the agreement, a 2.5 per cent pay increase was paid from the first full pay period in July 2000. We will continue to focus our efforts on maintaining and improving our performance against these measures because they will also be used to determine the 4 per cent pay rise in July 2001.

Structured performance feedback

In 1999 we introduced a new performance assessment system that is linked to individual salary advancement, provides regular, structured feedback and an annual assessment of an employee’s performance. Assessment is based on:

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  team based assessment of whether an individual’s behaviour is aligned with our Shared Behaviours; and
  
• 
  supervisor assessment of achievement against agreed work objectives.
  

Implementing the new system has required a change in culture and work organisation, particularly for managers and team leaders carrying out the performance assessments. Employees also have a responsibility to provide feedback to their colleagues, develop their own plan and participate in a self-assessment of their performance.

Staff poll responses indicate that the value of performance feedback is beginning to be noticed. For example, more people agree that they have a clearer understanding of what is expected of them at work. In 1997 only 13 per cent of poll respondents agreed that they knew what was expected of them at work (reflecting a significant uncertainty at the time of the creation of Centrelink). However positive responses increased to 82.6 per cent in June 2000. Similarly, 81.8 per cent of poll respondents indicated they understood Centrelink’s purpose and how it applied to their work in June 2000. This was a 1.1 per cent increase on the October 1999 result and a 44.8 per cent increase on the 1998 result.

Core Selection Criteria that Target Key Attributes

In February 2000 we adopted three core selection criteria for all positions other than the Senior Executive Service (SES). These criteria were developed in consultation with managers and employees who were asked to consider what attributes our people need for the future. The attributes centre on the Centrelink Shared Behaviours, customer service and business acumen.

Local and National Award and Recognition Schemes

In Centrelink recognition schemes have been in place at the local level for some time. These schemes focus equally on informal and formal mechanisms to recognise our people’s contributions and develop a common sense of purpose.

The Centrelink National Awards were introduced to provide a more formal framework for recognition and to encourage acknowledgement of the vital role our people play in helping achieve corporate goals and objectives. Awards are made in four categories: Customer Service; Community Partnerships; Change Management; and Support Services, leading to the selection of an overall winner.

The Quality Committee of the Board developed the seven criteria by which nominations are judged. The first National Awards, presented in September 1999, attracted 45 high quality nominees. Overall winner was the Employment Needs Assessment Trial, a joint Centrelink and FaCS initiative, which also won the 81 1999–2000 Annual Report Our People Customer Service category award. Other category winners were:

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  Community Partnerships: Innovations in Disability Servicing, Area Pacific Central;
  
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  Support Services: IT Infrastructure Team, National Support Office;
  
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  Change Management: Quality Team, Area Western Australia.
  

(See also Chapter 9, Corporate Overview, page 120 for details of other awards.)

We also support and encourage a high level of local recognition for individuals and teams through our Balanced Scorecard ‘recognition’ measure. As this was the first time we included this measure, we set a modest target of 4 per cent of all employees. We have been delighted with the outcome of an average of 51 per cent. This outcome is confirmed by the very positive poll results in regard to feedback.

Promoting effective leadership

Organisational culture change requires the direct, visible involvement of the Chief Executive Officer (CEO) and top executives. Accordingly, the Guiding Coalition (see Chapter 9, Corporate Overview, page 115) commissioned the development of a Centrelink Leadership Framework which outlines the strategies and tools we need to develop the leadership capabilities required now and in the future.

Recent staff poll results relating to leadership have shown a substantial rise in positive responses from 50 per cent in 1998 to 68.1 per cent in October 1999.

The June 2000 results show a slight drop to 62.5 per cent, which we have started to address through the Leadership Framework.

Developing the Centrelink Leadership Framework

The Centrelink Leadership Framework was developed following the identification of needs and priorities for enhancing leadership in Centrelink. In particular, we:

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  undertook a survey of Guiding Coalition members;
  
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  analysed the demographics of our leadership groups;
  
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  considered feedback from previous staff polls;
  
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  reviewed the outcomes of 360 degree feedback exercises undertaken in 1998–99; and
  
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  Added an additional capability to the Centrelink Leadership Capabilities.
  

Table 18: Centrelink Leadership Framework

STRATEGY		TIMEFRAME
Level 1	Enhance the skills of of existing leaders at all levels	Short to medium
Level 2	Foster emerging leadership talent	Medium to long
Level 3	Establish the next generation of leaders	Long-term

Coaching and Feedback Workshops

Work on enhancing the skills of existing leaders has already commenced. Coaching, feedback, problem solving and influencing have been identified by the Guiding Coalition as priority issues to be addressed.

A rigorous program to enhance coaching skills was conducted with all Guiding Coalition members. In addition, several Area Leadership Teams have undertaken 360 degree feedback programs and coaching workshops. Using their feedback, we have identified communication and sharing of information, trust and delegation as areas to be addressed.

Leadership Development Programs

To enhance the skills of current leaders and develop the skills of future leaders, a wide range of Leadership Development Programs have been conducted across the network. They included issues such as leadership development, visionary leadership, succession planning and management. A mentoring program to develop potential leaders in Centrelink has commenced and will be expanded in the next year.

In addition to our internally developed programs, the Centrelink Leading Change panel of providers continues to provide access, where appropriate, to external expertise in leadership development.

Australian Workplace Agreements

To provide greater flexibility, accountability, reward and development opportunities for Centrelink senior leaders (SES and nonSES) and to assist Centrelink to retain key employees, we have encouraged them to negotiate and sign Australian Workplace Agreements. To date 55 Centrelink SES and 108 non-SES employees have been paid approximately $607 000 in performance bonuses this year.

Creating a learning environment within Centrelink

The People Plan 1999–2000 states that Centrelink’s competitive advantage depends on the knowledge and ability of our people and the application of that knowledge and ability to their jobs. As a large and geographically dispersed organisation, the challenge for Centrelink is to target and deliver business-focused learning and development experiences of a consistently high standard across the full range of our people’s learning needs.

We are creating a learning environment that promotes and supports an integrated approach to team and individual learning and development. We want our people’s learning to be:

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  supported by effective Team and Individual Learning Plans (TILPs);
  
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  business-focused, competency-based and externally accredited; and
  
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  delivered using innovative technologies that provide good value for our learning dollar and a return on the investment of our people’s time.
  

Our initiatives appear to be having a positive effect. The positive responses in relation to learning opportunities rose from 24 per cent in 1998 to 58.2 per cent in October 1999. They dipped slightly to 55.9 per cent in the June 2000 poll, indicating that we need to continue our efforts.

Team and Individual Learning

Consistent with our move to a team-based approach where everyone contributes to meeting team goals, we are encouraging all our people to complete and maintain an up-to-date TILP. Through the TILP process we have the opportunity to identify, plan and deliver current and future learning and development programs to meet the needs of individuals and develop our overall people capability.

To monitor the TILP process we have included the completion and review of TILPs as a measure in the 1999–2000 Balanced Scorecard. To further highlight the value of this process, the measure was also included as one of the 11 measures used to determine salary increase provided for in the Centrelink Development Agreement 1999–2002.

Starting from a base of 46 per cent of employees with TILPs at June 1999, 86 per cent of employees had a TILP in place by 30 June 2000. Slow progress at the commencement of the year meant that we were unable to meet the 80 per cent target by the deadline of 30 December 1999, causing us to miss our pay rise target for this measure. TILPs remain a scorecard measure for pay rises for the life of the agreement.

Accredited Learning Programs

Centrelink is a Registered Training Organisation, which enables us to develop and deliver several nationally recognized competency-based learning programs. These programs all focus on building skills and knowledge to improve our customer service. We offer a:

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  Certificate in Business (Office Administration);
  
• 
  Certificate in Business (Administration) for front line customer service officers;
  
• 
  Diploma in Business (Administration) for Team Leaders;
  
• 
  Certificate in Community Services (Youth) for Youth and Students employees;
  
• 
  Diploma in Community Services (Disability Work) for Disability employees; and
  
• 
  Certificate in Fraud Control (Investigation) for Compliance employees.
  

Over 270 people are participating in these programs. Their feedback is being used to review the programs and to assist in developing complementary new programs.

Innovative Tools for Learning

Meeting the learning and development needs of employees in a national organization with Centrelink’s size and diversity presents a challenge. We are meeting this challenge by using state-of-the-art learning technologies to improve the consistency, access and timeliness of our learning outcomes. Our major innovation in 1999–2000 is the Centrelink Education Network.

(See Chapter 8, Our Innovative Organisation, page 108 for more details.)

To complement the Centrelink Education Network we are developing an Online Learning Centre, which will provide greater access to a range of web-based and computer-assisted learning materials. As with the Education Network programs, these materials are being developed by the actual product designers.

Development Programs

Feedback from our network suggested that products and policies designed in National Support Office did not always reflect an understanding of their full impact on the network. Two development programs, Inbound and Outbound, have been developed to address these concerns. They provide participants with a better understanding of Centrelink’s business and culture and an opportunity to contribute to the exchange of ideas and knowledge between National Support Office and the network.

Inbound

The Inbound Program, which commenced in November 1999, brings 16 Centrelink Band 4 employees from the network to National Support Office for an intensive five-day residential program during which participants complete projects on critical issues requiring network input and perspective.

The program includes presentations from keynote speakers including the Centrelink Executive, National Managers and the Secretaries of FaCS and DEWRSB. It also includes sessions on the governance of Centrelink and the purchaser/provider relationship with client agencies. A visit to Parliament also gives participants an opportunity to learn about parliamentary history, attend Question Time and meet both portfolio Ministers.

The three Inbounds that have been delivered have received excellent feedback from the 48 participants. The program will continue in 2000–01.

Outbound

The Outbound program, which also commenced in 1999, provides Centrelink Band 4 employees from National Support Office with an individually tailored program of three to five days experience in the network. The program takes them to Customer Service Centres, Area Support Offices and Call Centres where they have opportunities to experience first-hand the service delivery environment. We will be continuing this program as it has also received excellent feedback from the 85 people who have participated.

Noah’s Ark Outbound

The Noah’s Ark Outbound program aims to build mutual understanding and enhance working relationships between Centrelink and FaCS. SES officers from FaCS policy branches are paired with their Centrelink program counterpart for a fourday tour of our network. The schedule is similar to the Centrelink Outbound program but includes an additional visit to a FaCS State Office and other stakeholder agencies. This program will be delivered until December 2000, when a review will be undertaken to determine its future.

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