Addressing workforce challenges: realising the potential of the flexible workforce in the APS

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2 Addressing workforce challenges: realising the potential of the flexible workforce in the APS APESMA believes that the current lack of inclusion of the flexible professional workforce in APS workforce planning is offsetting the potential for contracting professionals to help deliver government priorities, and impacting the attraction and retention of quality contracting professionals in the APS. If the flexible workforce is not included in the APS people management strategy, contractors and consultants will remain underutilised and the APS will fail to realise the full potential of this valuable resource. The Moran Blueprint for the Reform of Australian Government Administration suggested that among the reforms that would help equip the APS to meet contemporary challenges were better coordinated workforce planning, improved recruitment and induction and an expansion of learning and development opportunities. It is in these three critical areas that APESMA Connect hopes to contribute to the reform program. It is our view that implementation of the Moran review recommendations in relation to contracting and consulting professionals will provide an opportunity to harness the potential of the public sector s flexible as well as permanent workforce. By recognising the contemporary changes to the labour market, the particular needs of this group in terms of people management, and the potential significance of their contribution, the Service will be significantly better placed to support the government as it responds to national policy challenges whilst meeting its own organisational challenges. This brief report details our proposals to assist with implementing the recommendations of the Ahead of the Game report. Dr. Kim Rickard Executive Officer, Connect APESMA s special interest group for independent contractors and consultants

3 Realising the potential of the APS flexible workforce Section 1 - Background and introduction What is APESMA? The Association of Professional Engineers, Scientists and Managers, Australia (APESMA) is an organisation registered under the Fair Work Act 2009 representing over 25,000 Professional Engineers, Professional Scientists, Veterinarians, Professional Surveyors, Architects, Pharmacists, Information Technology Professionals, Managers and Transport Industry Professionals throughout Australia. APESMA is the only industrial association representing exclusively the industrial and professional interests of these groups. What is Connect? Over the last two decades, the way in which Australians are employed has shifted from direct employment to engagement at arms length 1. This has resulted in an increase in the number of those in non-standard work arrangements with the number of independent contractors growing to around one million 2 or around 10 per cent of the workforce 3. In 1999 in response to this shift APESMA developed a comprehensive program of services to meet the increasing need for information and representation of APESMA s several thousand members working in contracting and consulting roles. The APESMA Connect website which sets out the services and information available to members is accessible at Coverage In 1995, the Australian Industrial Relations Commission approved the amendment of APESMA s eligibility rules to also provide coverage for independent contractors. APESMA can cover any professional engaged as an independent contractor who would be eligible for membership of the Association if they were an employee performing the same work. This broad and exclusive coverage means APESMA is a strong and genuinely representative voice for science and technology-management contracting professionals across the public and private sectors. APESMA s public sector membership is comprised predominantly of IT contractors across the Service, and Professional Engineers and Scientists in the Department of Defence, Defence Science Technology Organisation and Bureau of Meteorology. Introduction Among its comprehensive set of recommendations, the report Ahead of the Game - Blueprint for the Reform of Australian Government Administration recommended strengthening the APS workforce. More specifically, the report recommended better coordinated workforce planning, streamlined recruitment and induction processes and expanded learning and development opportunities (Recommendations 7.1, 7.2 and 7.3). It is in these three areas that APESMA hopes to contribute to the APS reform program. It is our view that implementation of the recommendations in these critical areas provides an opportunity to harness the potential of not only the public sector s permanent workforce but also its flexible/contingent workforce. APESMA believes that the current lack of inclusion of the flexible professional workforce in APS workforce planning is offsetting the potential for contracting professionals to help deliver government priorities, and impacting the attraction and retention of quality contracting professionals in the APS. Page 1

4 Section 2 - Proposals for helping implement APS review recommendations APESMA proposes a three-part strategy for realising the potential of contracting and consulting professionals to contribute to achieving Service-wide, Agency and project goals: Recommendation Coordinate workforce planning/develop workforce planning framework APESMA proposal: Include flexible workforce, in particular contracting and consulting professionals, in workforce planning framework Recruitment of quality professionals as contractors Alongside a workforce plan which includes strategies for the recruitment, retention and engagement of the best professionals to permanent positions in the APS, APESMA believes the workforce plan should also identify strategic measures to address capacity and capability gaps beyond those which can be addressed by the permanent workforce. APESMA proposes putting in place a workforce planning framework which includes the APS flexible workforce. Within the flexible workforce, contracting and consulting technology-management professionals are a discrete segment whose needs may be distinctly different to those of casuals, short-term and other temporary staff. If this group is included in the APS people management strategy, they have the capacity to contribute significantly to the achievement of Service-wide and Agency goals and projects. If contractors and consultants are not included, they are likely to remain underutilised and the APS will fail to realise the full potential of this valuable resource. Eliminate unfair practices which adversely impact the flexible workforce APESMA proposal: Ensure contracting and consulting professionals are engaged under fair terms APESMA holds the strong view that to fully harness the potential of contracting professionals, the APS needs to change its practices relating to the contract terms offered via labour hire agencies. This would involve the elimination of unfair contract provisions involving termination of putative fixed term contracts at the discretion or convenience of the APS, and the opportunity to negotiate terms, in order to provide a level of certainty and integrity of contract for the flexible workforce. Recommendation Streamline recruitment and improve induction Recruitment APESMA proposal: Take a strategic approach to recruiting contracting and consulting specialists who will disperse skills across the Service With shortages in a range of technology-management skills expected to re-emerge and impact project delivery in the short-term, science and technology-based contracting professionals will play a significant role in the dispersal of specialist technical expertise across public sector Agencies, and directly impact Agency project completions and the delivery of Government priorities. Strategies for attracting and retaining the best contracting professionals alongside those aimed at attracting quality permanent staff should be an important part of the APS approach to recruitment and people management. Induction APESMA proposal: Utilise induction to embed more mature and inclusive practices and behaviour toward contractors, and engage them more actively in Agency and project goals Page 2

5 Professional engagement - the contracting professional should be familiar with and committed to the goals of the project and/or Agency and feel they are contributing directly to the achievement of those goals. An appropriate induction into the particular Agency would support the contracting professional and directly engage them with Service-wide, Agency and project goals. A targeted induction of contracting and consulting professionals upon engagement also has the potential to encourage a more mature and inclusive culture for contracting and consulting professionals - in Moran s terms, it would help embed new practices and behaviours to counter APS staff perceptions of contractors as outsiders - a view often encountered by contracting professionals within Agencies. Recommendation Expand and strengthen learning and development APESMA proposal: In view of the differential access of non-standard workers to learning and development opportunities, show leadership by using learning and development as incentives to attract contracting and consulting professionals to the APS In 2000, a publication called It s Not my Problem 4 documented the decline in training undertaken by those in non-standard work arrangements including the self-employed (Hall et al. 2000). APESMA believes it is critical for Government to show leadership in this area by demonstrating a commitment to skills development of not only its permanent workforce but also its flexible workforce. The opportunity for skills development would operate as a significant incentive to take on a contracting role with the APS. It would ensure the skills of the flexible workforce are current and that being part of the flexible workforce does not impede the accumulation of new skills which facilitate career pathing and advancement. Section 3 - Conclusion In summary, APESMA proposes: that the APS recognises the increase in the number of professionals operating through non-standard work arrangements, their legitimacy as part of the APS workforce, and the potential of this group to help achieve APS objectives; the inclusion of the flexible workforce in the workforce planning framework to ensure a strategic approach to meeting capacity and capability gaps; the inclusion of practices which will ensure the dispersal of science and technologymanagement skills across Agencies in the face of re-emerging skill shortages; the elimination of unfair contract terms for contracting professionals engaged via labour hire agencies; the inclusion of contracting and consulting professionals in an induction process at the beginning of their engagement to ensure their direct engagement in Agency and project goals, and to encourage a more inclusive culture; and providing training and professional development to contracting professionals as an attraction and retention tool, and to address contracting professionals differential access to professional development. References 1 Richardson, S. and Law, V. Changing Forms of Employment and their Implications for the Development of Skills, Australian Bulletin of Labour, Vol. 35, No. 2, 2009, p Australian Bureau of Statistics Forms of Employment Survey, November 2008, Catalogue number Australian Government Department of Innovation, Industry, Science and Research Independent Contractors Fact Sheet - Productivity Commission estimate 4 Hall, R., Bretherton, T. & Buchanan, J. 2000, It's Not my Problem: the growth of non-standard work and its impact on vocational education and training in Australia., National Centre for Vocational Education Research and Australian National Training Authority. Page 3