General Publications
Department of Labour Annual Report 2006
Report on the Department's Activities in 2005/06
Who we are
Evolving with society and the economy
The way people live, work and play has changed substantially and the Department is changing to , in order to continue its work enhancing people ’s lives and New Zealand ’s economy.
As New Zealand’s labour market evolves and changes, the Department of Labour is transforming to ensure it responds to New Zealand’s future needs.
The Department has been reorganised, with a new business model and activities aligned with our long-term goals and medium-term priorities. The Department’s overall structure is now organised into the following groups:
- Workforce, which focuses on managing immigration in New Zealand’s best interests and on people, skills and participation
- Workplace, which focuses on how we work, raising productivity and the quality of working lives
- Work Directions, which focuses on achieving the best labour market outcomes possible at a national, regional and sectoral level, through strategic analysis, engagement and comprehensive and tailored labour market information
- Corporate, which ensures that the Department has the people, systems, financial and technological capability to achieve and communicate our aims
- Legal and International, which ensures we understand and respond to our legal obligations and manage our labour-related international engagements.
A number of strategic development tasks were started during the year. We focussed on key areas that had been identified in strategic planning and the baseline review.
The priority areas in the medium-term include:
- Sector leadership – The Department must have a single sector-leadership system that maximises the potential for effective relationships with key sector groups. The framework will be implemented across the Department’s full work programme
- Knowledge – The Department must create a culture and processes that encourage and allow the sharing of knowledge and facilitate the use of relevant and accurate information when making decisions
- Integration/connectedness – Work across the Department must be coherent. It must be driven by a shared set of principles that reinforce appropriate connections. It is critical to manage the risks and opportunity costs of the Department’s dispersed capability
- Our workforce/workplace performance – The Department must define, design and deliver a framework and system that provides the basis for ensuring it has the right workforce and workplace. The output will be a single workforce and workplace development system
- Prioritisation – The Department is improving its ability to prioritise its work and flexibly manage its resources to deliver the most value to its stakeholders, particularly in terms of excellent workforce and workplace performance.
Building capability and adaptability
The Department is working to develop business systems and capability that will support the major change programmes currently under way and help the Department be agile, highly productive, and provide high-quality working lives for employees. We have started to:
- develop integrated information and intelligence bases on what we need to do and what works to inform decisions
- maximise economy by prioritising our activities and building the capability to make complex decisions without increasing our demand for resources
- develop consistent systems and processes
- build the capability of our managers and staff
- ensure a stronger customer focus
- provide support for business-wide change.
A number of strategic initiatives are under way to enhance the Department’s capability. These include:
Staff seminars
Staff seminars were held throughout New Zealand in May 2006 to discuss the Department’s outcome, purpose, goals and priorities. These seminars provided an opportunity for staff to meet the Strategic Leadership Team and ask questions about where the Department is heading. Supporting these seminars, a short summary of the Statement of Intent and an intranet site were developed to present the Department’s strategy in a simple, easy to understand format. A video about the Department’s future direction was made available to staff in overseas branches.
Information and ICT reference enterprise architecture strategies
Information is the foundation of our knowledge, the services we provide and the influence we apply. The Department has developed an information strategy to coordinate information management across the entire Department. The information strategy is driven by the Department’s operating model.
Maori and Pacific peoples’ initiatives
The Department reviewed its Maori strategy in late 2005 and has subsequently been developing a new strategy with a greater emphasis on achieving better labour market outcomes for Maori. This is supported by building internal capability and improving relationships with key Maori groups.
The Department has also been evaluating the capability required to ensure that we achieve better labour market outcomes for Pacific peoples, as outlined in the Pacific strategy. A Pacific fono was held in March 2006.
Ethnic responsiveness strategy
Our Ethnic Responsiveness Strategy and action plan was developed in the past year to look at how we can improve labour market outcomes for people from different ethnic backgrounds, as well as improving our own capability, policies and practices.
Disability strategy
The Department is involved in implementing the New Zealand Disability Strategy, with a focus on achieving the full participation of disabled people in the labour market. The Department is also improving its own capability, policies and practices in this area.
Human resources planning
The Department has set out a framework (see over) and plan that will guide its human resource activities for the next five years. The framework and plan are based on the life-cycle concept of an employee in an organisation, underpinned by core values and systems.
Activities based on this plan include:
Recruitment
Current recruitment policies and practices have been reviewed to align these across the organisation. The Department has also invested in a centralised recruitment function to coordinate recruitment-related activity, simplify processes, build consistency and enable cost savings. Further work is under way to ensure that the Department attracts and selects the best candidates.
Induction
A new two-day induction programme covers the obligations of staff as Public Servants, the Public Service and Departmental Codes of Conduct, and provides an integrated introduction to the Department. An induction process and programme for managers is also being developed.
Performance management
In the past, the Department has operated with a number of different performance management systems. A new performance management system, Performing for Outcomes, was introduced in June and July 2006. The new system will help all staff agree upon objectives with their managers that align their work with the Department’s goals. It will also provide a way for all staff to identify the capabilities they need to develop and plan a career with the Department.
Leadership development
A comprehensive leadership development strategy for managers is being developed and will be implemented over coming years.
People Framework
Partnership for Quality, working with the PSA
The Department is committed to working with the Public Service Association (PSA ) and has established a joint work programme to support the PSA -developed Partnership for Quality activities in the Department. Activities over the past year included the development and pilot of training for managers and PSA delegates, use of Partnership for Quality tools by managers and PSA members, skills-based block training for delegates to lift their capability and deepen their understanding of the Partnership for Quality programme and inclusion of the PSA in key organisational projects.
Pay and employment equity
The Department and the PSA worked together over the year to complete a successful review of gender equity in the Department, focussed on our culture, policies, processes and practices. The Department’s Pay and Employment Equity Unit noted that this approach provides a benchmark for other government agencies. It found that the Department’s 91% general pay equity ratio was better than the overall Public Service at 86%. A response plan was developed and will be put into place over the next three to five years.
Other initiatives in the Department that set clear expectations for staff, provide them with support for their work and help them build their capabilities include:
Code of Conduct
A new Code of Conduct was developed for the Department. The new code outlines the standards of behaviour expected from the Department and all staff. Workshops were held for all managers and staff to discuss the implications of the code on future work practices in the Department.
Information and Management Systems
A variety of different payroll systems were brought together during the past year. With the integration of some key systems, the Department has started to get better reports about its people and resources. Reports to the Strategic Leadership Team were initiated, along with updates to managers and staff. Work is currently under way on a management reporting framework that will help the Strategic Leadership Team assess how well the Department is achieving its strategic priorities. Work is also under way to develop the infrastructure required to support better business intelligence tools.
Employment relations
The Department was able to build on its strengthened Partnership for Quality relationship with the PSA during the last year. The Department and the PSA worked collaboratively to align employment terms and conditions across the Department and incorporate the integrated performance management and remuneration systems with the settlement of two collective employment agreements. The Department and National Union of Public Employees also aligned terms and conditions with the successful settlement of a collective employment agreement.
Internal controls and risk management
An external review of internal controls was commissioned and completed in 2005/06. The results contributed to the development of an internal assurance and risk management framework.
Sustainability
The Department is committed to the Government’s sustainability programme, called Govt3. In February 2006, we created a sustainable practice action plan. A sustainability pilot on one floor in our National Office in Wellington reduced waste sent to landfills. We also expect to see energy savings in the coming year. Sustainability is also being incorporated into the Department’s new procurement policy and accommodation initiatives.
The Department is reviewing its procurement processes to ensure that not only are they sustainable, but that they also deliver value for money. For example, a review of travel has resulted in identified savings of $1.2 million from using a new approach to booking flights.
Building financial capability
The Department is working to increase financial capability across the organisation over the next three to five years. This work includes a full capability assessment, a review of our financial management system and building the financial knowledge and competence of the Department’s managers. In the past year, this work has included:
- developing a new framework for financial delegations
- integrating six separate financial systems into one
- integrating a number of different financial policies.
Prioritisation/Baseline Allocation Project
The Department is improving its ability to prioritise its work and flexibly manage its resources to deliver the most value to its stakeholders, particularly in terms of excellent workforce and workplace performance.
A new approach to prioritisation is taking shape and should be finalised in late 2006. It looks at:
- whether there is a role for government in relation to the work
- whether the Department is best placed to deliver or lead it
- what the contribution would be to the Department’s goals and outcomes
- the level of value creation for stakeholders and across the government sector
- the relative value versus the relative effort and risk Involved
- whether the activity will build our knowledge, influence and capability
- whether the activity will facilitate an integrated, connected Department.