DHA Annual Report 2012

People and corporate

Overview

DHA demonstrates its commitment to motivating and engaging our staff by providing a workplace that supports and rewards high performance, innovation, continuous improvements and development.

How DHA recruits, trains, remunerates and retains our people is a major task in meeting the needs of a changing business. The DHA Human Resource Strategic Plan and the Corporate Learning and Development Plan support the business in meeting these challenges, enhancing organisational performance against business objectives and achieving our strategic goals.

Programs conducted in 2011–12 responded to these objectives. Specific and ongoing programs were undertaken to:

• provide clarity to staff on their responsibilities as individuals and members of teams
• provide ongoing and scheduled feedback on staff performance
• provide staff with a remuneration and employment conditions package that is flexible
• and recognises staff skills, experience and qualifications
• provide opportunities for career development and advancement through tailored learning and development programs as well as succession planning
• promote and reinforce health and safety arrangements within DHA, and
• provide strategic, responsive and specialist advice and services that are people focused and help achieve business outcomes.

In order to enhance our support to the business there was a focus in 2011–12 on improving internal consultation, communication and regional engagement. This was achieved in part through the use of the tested HR Network, the Staff Consultative Group and recently established Business Support Manager forums.

Staffing profile

The DHA Enterprise Agreement 2012–2014 (EA) covers all non-Senior Executive Service (SES) staff. DHA’s SES staff are covered under individually negotiated Common Law Contracts (CLCs).

DHA has undertaken staff learning and development initiatives in 2011–12 including people and performance management training and training that targets identified administrative and operational issues.

Productivity continued to improve as a result of staff growth and skills development,
thereby lifting the experience base and stability of our staff. This is in part demonstrated
by over 83% of ongoing staff having more than two years’ service and with 55% having
more than five years’ service.

Figure 5: Ongoing staff by length of DHA service and classification at 30 June 2012

DHA also benefits from 90% of the management group (represented by ongoing staff at classification levels Executive Level 1 to SES) having more than two years of DHA corporate knowledge, leadership and experience.

Figure 6: DHA staff by classification and gender at 30 June 2012

* SES figures include six males classified at the SES band 1 level, one female and four males classified at the SES band 2 level and one male classified at the SES band 3 level.

DHA’s Enterprise Agreement

DHA’s new Enterprise Agreement (EA) is a two year agreement that commenced
on 22 June 2012. The EA continues DHA’s and our staff’s commitment to increasing
DHA’s efficiency and effectiveness. The shared objectives of the EA are:

• employment conditions that meet the operational needs of DHA while providing employees with flexibility to maintain balance between their work and personal lives
• recognition of high levels of performance and the contribution they make to organisational success
• flexibility and responsiveness to meet the challenges of the future
• recognition of the productive benefits of diverse backgrounds, experience, skills and perspectives, and
• facilitation of the employment of the right people for DHA.

The new EA includes a number of enhancements from the previous Collective Agreement
including:

• salary increases on 1 July 2012 and 1 July 2013 brought forward from October each year
• modification of the existing Rostered Day Off arrangements to a structured flextime scheme for staff, at and below, the DHA6 level
• increase in superannuation employer contributions from 9.0% to 15.4% for accumulation fund members (formerly 15.4% provided only for PSSap members)
• the introduction of Fostering leave and Voluntary Emergency Services leave, and
• halving the length of qualifying periods for payment of higher duties for: DHA levels 3 to 6, from 4 weeks to 2 weeks, and Executive levels 1 to 2, from 12 weeks to 6 weeks.

Conditions and entitlements

The EA provides staff with flexible and competitive remuneration packages and attractive employment conditions. Rewards and recognition relate to skills, qualifications, performance of individual staff members as well as their contribution to corporate objectives, individually and as part of a team.

The EA remuneration package includes:

• guaranteed salary increases of 4 per cent on 1 July 2012 and 3.5 per cent on 1 July 2013
• access to performance bonuses for all classification levels, ranging from maximum potential bonuses of:
• 7.5% of base salary for DHA classification levels 2 to 4
• 12.5% of base salary for DHA classification levels 5 to Executive level 1, and
• 15% of base salary for Executive level 2 staff.
• employer superannuation contributions
• special allowances, and
• a higher annual salary increase for eligible exceptional performers.

DHA staff also have access to flexible remuneration packaging and choice of superannuation fund.

Special allowances

The EA recognises professionally trained and qualified staff undertaking additional duties that support a safe and healthy DHA work environment. These include Health and Safety Representatives, First Aid Officers, Fire Wardens and Harassment Contact Officers.

Northern Territory payment

DHA initiated a retention bonus program in the Northern Territory to motivate and retain skilled staff in this challenging region during periods of peak workload. The successful program, in operation for seven years, is continued in the EA.

Performance bonus

DHA’s Performance Development Scheme fosters high performance and capability development. In consultation with managers, staff develop and agree an annual Performance Development Agreement which sets key performance indicators against which staff performance is subsequently assessed.

High performing staff across all classification levels are rewarded with a performance bonus. For the 2011 appraisal year more than 90%of eligible staff received a performance bonus. Of the bonuses received, more than 70%were based on staff achieving a rating in the exceeded targets range.

DHA provides staff with the option of salary-sacrificing their performance bonus into their choice of an approved superannuation fund, subject to Australian Taxation Office legislation.

The Enterprise Agreement salary ranges are inclusive of the 4 per cent salary increase at 1 July 2012.

HR Information systems and payroll

DHA’s HR Management Information System and payroll processing function are managed in-house by an experienced team of specialists. The team provides accurate and timely HR and payroll related advice and reports in addition to supporting the administration of staff remuneration and conditions of service.

In June 2012, DHA brought its payroll disbursement functions in-house and no longer relies on a third party for these services. This will result in a significant reduction in costs to DHA. The transition to the new arrangement was undertaken over several months in consultation with DHA’s Business Solutions and Technology and Finance business units.

During the transition DHA reviewed its payroll practices and processes and implemented enhancements which include greater automation of the pay run process and reports
resulting in further efficiencies and cost reduction.

HR Network

The HR Network continues to provide middle and senior managers with up to date,
bi-monthly communication. In 2011–12, topics included:

• targeted HR information and advice
• learning and development, and
• HR system process enhancements.

The forum also provides managers with an opportunity to express their views and seek assistance regarding management issues and matters affecting the workplace.

Business Support Manager Forums

As part of a wider strategy to engage more regularly with our key internal stakeholders, quarterly forums with regional Business Support Managers (BSMs) have been successfully trialled. Representatives from each DHA corporate support business unit attend.
The objectives of the forums are to:

• provide updates on policies, programs and initiatives across the key Head Office support functions
• provide the opportunity for BSMs to ask questions and comment on the policies, programs and initiatives, and
• share ideas and obtain feedback on issues and challenges faced in HMCs.

Staff Consultative Group

DHA staff elect employee representatives from each region and a management representative to form the Staff Consultative Group (SCG). Where possible, the representatives are staff at varying classification levels. It is held on a regular basis to consult on issues that impact on the work environment.

During 2011–12, the SCG met five times to consider workplace matters including the Enterprise Agreement negotiations, learning and development programs and business support services and to provide input to proposed HR policy amendments.

Learning and development

In accordance with the key objectives outlined in the DHA Human Resource Strategic Plan and the Corporate Learning and Development Plan, DHA delivered learning and development initiatives that:

• enhanced the capabilities of staff to respond to ongoing and new business directions
• ensured learning and development opportunities were available for each staff member to help them reach full potential and to maximise their contributions to the business
• offered targeted skill enhancement opportunities as part of DHA’s attraction and retention strategy, and
• provided programs that promote professional development, mental health and wellbeing and are in line with DHA’s corporate objectives.

In addition to the continuation of successful programs from 2010–11, the key initiatives delivered throughout 2011–12 include:

• staff participation in a tier-based project management program which included the opportunity to obtain a nationally recognised accredited qualification
• provision of nationally accredited training at the Certificate IV and Diploma level (13% of DHA’s employees have participated at 30 June 2012)
• delivery of people and performance management training aimed at the middle to senior management level
• delivery of national training which targets identified administrative and operational issues
• delivery of personal development requirements as identified in individual Performance Development Agreements
• provision of a program focused in the area of managing complex complaints and targeted to DHA’s Customer Relations Managers, and
• development and delivery of a personal resilience program, to enhance individuals’ ability to manage highly emotional or stressful customer situations.

The investments in partnerships with quality service providers who understand DHA’s
culture have given DHA the ability to provide programs aligned with DHA’s values, vision, mission and business line objectives.

DHA supports staff career development through the Studies Assistance Program
and financial assistance for approved tertiary courses.

Employee evaluations indicate that these programs have improved individual capability. In particular, improvements in customer service, project management and people and performance management were evident.

Rewards and recognition

DHA rewards staff achievement through:

• Weekly ‘WOW Awards’ providing staff with the opportunity to recognise their colleagues’ accomplishments
• Service awards for 5, 10, 15 and 20 years of employment with DHA, and
• Annual DHA Awards for Excellence for exceptional individual staff performance in their respective business units.

Workplace health & safety

On 1 January 2012, the Work Health and Safety Act 2011 (Cth) (WHS Act) came into effect. Coinciding with this, a number of other legislative instruments that support the WHS Act have also commenced including the Work Health and Safety Regulations 2011 (Cth) and the Work Health and Safety Approved Codes of Practice 2011 (Cth).

DHA is no longer able to transfer its WHS obligations and risk to its contractors. DHA must ensure, as far as practicable, the health and safety of all workers involved in DHA activities. There is also a broader emphasis on consultation where DHA must consult with workers, not just employees, as far as is reasonably practicable, about WHS matters.

WHS implementation

The new legislation has had a significant impact on our business in many areas including procurement, contract management, incident and hazard reporting, policy and how we consult with workers.

DHA draws attention to the scale of the responsibility it now faces with over 1,000
contractors and sub-contractors being used across the country.

WHS governance

To meet WHS legislative requirements, DHA established a WHS governance system
with a WHS National Committee and two Advisory Groups – the Staff Advisory Group (SAG) and Contractor Advisory Group (CAG). The Advisory Groups have been established to assist the WHS National Committee meet our WHS legislative requirements.

Since 1 January 2012, there has been a major focus on integrating WHS legislative requirements into DHA’s procurement and contract management processes, developing
stage one of an online incident and hazard reporting system, updating our policies to
meet WHS requirements and developing training modules for staff.

Incident reports

There was an increase in reported incidents in 2011–12 compared with 2010–11, however
the 2011–12 figure was below the 70 incidents reported in 2009–10. Of the 65 reported incidents, one third related to falls, trips and slips by individuals. DHA has assessed each incident and taken preventative action where required. There were 10 incidents reported
to Comcare in 2011–12 and of these, six were notifiable incidents.

Workers compensation

A total of nine workers compensation claims were submitted in 2011–12. The majority of these claims related to minor injuries, such as falls, trips and slips. Comcare accepted liability for all nine claims.

WHS directions, notices and investigations

No directions, notices or investigations under the Work Health and Safety Act 2011 (Cth)
were conducted or given to DHA in 2011–12.

DHA Apprenticeship Support Scheme

The DHA Apprenticeship Support Scheme (DASS) concluded its third successful year of a four-year program that commenced in 2009. The program has maintained up to 22 apprentices in trades across Australia. This year, DHA celebrated the graduation of its first two apprentices supported under the program.

Records management

DHA complies with the Archives Act 1983 requiring staff to make and keep records. Specific initiatives in 2011–12 have included:

development and initiation of a National Digital Transition Plan to move DHA towards digital record keeping, and preparing for the introduction of a new security classification system under the Commonwealth’s Protective Security Policy Framework on 1 August 2012.

Whole of Australian Government (WoAG) travel arrangements

In April 2012, DHA signed an agreement to access the Commonwealth’s WoAG Travel Arrangements. The new arrangement, which took effect from 1 June 2012, provides DHA with access to lower prices for air travel, together with enhanced reporting and service support.

Corporate lease arrangements

DHA has a national presence in 21 locations across Australia. In 2011–12 DHA:

• entered into lease arrangements for 4 new offices
• negotiated 2 new office leases for existing locations
• sublet office accommodation in 2 locations, and
• exercised a further term for 1 office.

During the negotiations for these leasing arrangements, significant savings to the business were achieved.

DHA Head Office refurbishment

As part of the new lease negotiations for DHA’s Head Office in Canberra, a major building refurbishment was agreed. The refurbishment included an upgrade of the building to a National Australian Built Environment Rating System (NABERS), 4.5 energy rating. To assist in meeting the energy saving requirements of NABERS 4.5, the lessor upgraded the heating and cooling system of the building and installed new T5 lighting, ceiling tiles, carpet and window furnishings.

The refurbishment also included the building being painted internally and an upgrade of the building’s disabled facilities to meet the Australian Building Standard (ABS). This included the installation of a ramp at the front of the building for wheelchair access and improved dedicated disabled parking. In addition to this, the disabled bathroom facilities of the building have been upgraded to meet the ABS.