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Last updated: 25 February 2008

Merit and transparency: Merit-based selection of APS agency heads and statutory office holders

Introduction

On 5 February 2008, the Australian Government introduced a policy implementing transparent and merit-based assessment in the selection of most Australian Public Service (APS) agency heads and other statutory offices working in, or in conjunction with, APS agencies.

A list of positions requiring merit selection and specific offices that are excluded can be accessed on the Australian Public Service Commission’s website at www.apsc.gov.au/apsprofile/agencyheadselection.htm and will be updated on an ongoing basis.

The new arrangements will also ensure that existing office holders are given sufficient notice as to whether or not they will be reappointed and that vacancies will be advertised well in advance of them falling due.

The merit selection processes outlined in this policy and guidelines come into effect immediately and are to be fully implemented by 1 July 2008. As there may be current vacancies and appointments due to expire shortly, a transition period will be necessary. This recognises that some appointment processes may be in train and these should not be disrupted by the new requirements. However, there should be adherence to as many elements of the new arrangements as practical.

Part One: Policy

1.1 Summary

The policy applies to APS agency heads—other than departmental Secretaries and their equivalents—and other statutory offices working in, or in conjunction with, APS agencies, unless specifically excluded (see section 1.2). The policy is summarised as follows:

The Minister will advise incumbents, in writing, at least four months before the expiry of their appointment whether it is intended to reappoint them, not reappoint them, or to advertise the position to test the field.
A merit-based and transparent process will apply for filling vacancies, with the following features:
1. oversight of the advertising process and assessment of applicants’ claims are to be undertaken by the Secretary and the Public Service Commissioner (or their representatives)
2. vacancies will be advertised at a minimum on the APSjobs website and in the national press
3. selections will be made against a core set of selection criteria, supplemented by additional criteria agreed to by the Minister and Secretary
4. a report, endorsed by the Public Service Commissioner, will be provided by the Secretary to the Minister recommending shortlisted candidates.
Where the Minister wishes to appoint someone not recommended by the panel, the Minister will need to write to the Prime Minister setting out reasons.
Where legislation provides for specific processes for appointments, those provisions will take precedence to the extent of any inconsistency with this policy.
Where the appointment of an agency head is made by a board, the chair of the board will have the responsibilities set out above, in lieu of the Secretary and Minister.
All appointments are to be made for a period of five years unless individual appointees advise in writing that they are seeking a shorter period, or the relevant legislation stipulates a different period, or other special circumstances arise justifying a short term.
All costs associated with filling the vacancy, such as advertising, will be borne by the agency where the vacancy occurs or as otherwise determined by the Secretary.

1.2 Exclusions

Secretary and Secretary-equivalent appointments (namely, the Public Service Commissioner, the Commissioner of Taxation, the Auditor-General, the Chief Executive Officer of the Australian Customs Service and the Australian Statistician) are excluded from this policy.

Part-time statutory offices are also excluded, other than APS agency heads and offices where there are both full-time and part-time offices with the same title.

Appointees who are also required to be APS employees (i.e. where legislation requires that a statutory office must be held by an APS employee) are excluded as they are already subject to merit-based selection under the Public Service Act 1999 (PS Act). However, the policy does apply to an APS employee who applies for a statutory appointment and would need to resign or be granted leave without pay to take up the appointment if successful.

The following are also excluded from the policy:

dual appointments where the appointee is already a full‑time office holder, as an office holder should only need to be selected once
appointments to an elected office, as these appointments allow the relevant community an opportunity to have a say in the selection of the office holder (for example, the Chairperson of the Torres Strait Regional Authority)
appointments to the Australian Defence Force
the Registrars of the Administrative Appeals Tribunal and National Native Title Tribunal (NNTT), the chief executive officers of the federal courts, Federal Court of Australia assessors, and the President of the NNTT
the Administrators of the Northern Territory, Christmas and Cocos (Keeling) Islands, and Norfolk Island
other offices where the Prime Minister (or the Minister authorised to act on his or her behalf) grants an exemption for:
1. a particular appointee in special circumstances, or
2. an office, on an ongoing basis, where it is inappropriate for the process to apply.

Part Two: Guidelines

2.1 Expiry of existing appointments

Each Secretary is responsible for keeping a record of all statutory appointments in his or her portfolio. The Secretary will notify the relevant Minister or Ministers, in writing, of an upcoming expiry of an appointment six months before the expiry date¹.

The Secretary will seek the Minister’s advice on whether:

the incumbent is to be offered reappointment (if allowed by legislation), or
the incumbent is not to be reappointed, or
the Minister wishes to test the field through advertising the position (which may or may not result in the incumbent being reappointed).

The Secretary’s notification to the Minister must be copied to the Public Service Commissioner (the Commissioner).

Where the Minister decides to advertise the job rather than reappoint the incumbent, an open and merit-based selection process must apply. The Secretary will consult with the Minister on details such as the scope of advertising and selection criteria. However, there are minimum requirements detailed in sections 2.6.1 and 2.6.2 below.

The Minister is responsible for formally advising the incumbent at least four months before the expiry of their appointment that he or she will:

be reappointed, or
not be reappointed, or
not be reappointed because the Minister wishes to test the field of potential candidates but he or she is able to apply.

The Secretary must advise the Commissioner of the Minister’s decision.

2.2 Reappointments

Where the incumbent is to be reappointed, the Minister will need to follow the current appointment process, including writing to the Prime Minister recommending the reappointment and, if agreed by the Prime Minister or by the Cabinet, preparing the appointment documentation for the appropriate person with the power to make the appointment (for example, the Governor-General).

2.3 Secretary’s role

The Secretary is responsible for overseeing the selection process for agency heads and statutory office holders. This involves:

keeping a record of all statutory appointments in their portfolio
six months before the expiry of each appointment, seeking the Minister’s advice, in writing, of their decision whether to reappoint the incumbent or advertise the position
consulting with the Minister on details such as the scope of advertising and selection criteria
chairing the assessment panel, or delegating this role if appropriate
selecting panel members (other than the Commissioner)
together with the panel, assessing applicants’ claims against selection criteria
providing a report to the Minister recommending a shortlist of suitable candidates.

Secretaries need to advise the Commissioner of the following:

upcoming expiry of an appointment
decisions to reappoint the incumbent or advertise upcoming or vacant positions
final outcomes announced by the Minister.

2.4 Public Service Commissioner’s role

The Commissioner ensures that assessment of candidates is based on merit. The Commissioner (or his or her representative) therefore plays an active role in the process.

The Commissioner will be involved during the following steps of the process:

participating in the assessment panel, or nominating a representative to participate in his or her place
reviewing the Secretary’s report prior to it being submitted to the Minister
endorsing the Secretary’s report prior to submission to the Minister where neither the Commissioner nor Deputy Commissioner themselves were on the assessment panel.

The Commissioner may update the core selection criteria, from time to time, in consultation with Secretaries.

2.5 Minister’s role

The Minister remains responsible for making the final recommendation to the Prime Minister. The Minister is responsible for:

advising the Secretary of whether it is intended to reappoint incumbents or advertise the position
advising the incumbent, in writing, at least four months before the expiry of their appointment whether it is intended to reappoint them, not reappoint them, or to advertise the position
advising the Secretary of his or her views on the scope of advertising and any additional selection criteria
contacting and encouraging particular candidates to apply if he or she wishes
considering the recommendations of the Secretary following the completion of a selection exercise
meeting with one or more of the recommended candidates, or consulting more widely with colleagues, the assessment panel or others, prior to making a final decision, if he or she wishes.

Once the Minister has made a decision, the Minister will need to follow the normal appointment processes, including writing to the Prime Minister recommending the appointment. The usual process for appointments, including the Governor-General’s approval where specified in legislation, should be followed.

If the Minister considers special circumstances exist where a full selection process is inappropriate (see section 2.6.6), he or she must write to the Prime Minister seeking approval.

Where the Minister decides not to appoint a candidate recommended by the assessment panel, the Minister must write to the Prime Minister outlining the reasons for this decision. These reasons will be included in Cabinet documentation where the Minister’s proposed appointment requires Cabinet approval.

2.6 Merit-based selection

For the purpose of these guidelines, merit-based selection is as follows, based on that applying to APS promotions and engagements:

an assessment is made of the relative suitability of the candidates for the duties, using a competitive selection process, and
the assessment is based on the relationship between the candidates’ work-related qualities and the work-related qualities genuinely required for the duties, and
the assessment focuses on the relative capacity of the candidates to achieve outcomes related to the duties, and
the assessment is the primary consideration in making the decision.

Examples of work-related qualities that may be taken into account in making an assessment include:

skills and abilities
qualifications, training and competencies
standard of work performance
capacity to produce outcomes from effective performance at the level required
relevant personal qualities
demonstrated potential for further development
ability to contribute to team performance.

2.6.1 Selection criteria

Selection for agency heads and statutory office holders should be made against a set of selection criteria, which are outlined below. As particular vacancies may have job-specific elements not covered within a standard set of criteria, additional criteria may be agreed by the Secretary and the Minister. A small number of positions may need quite different criteria, to be approved by the Secretary.

Agency head selection criteria

The core criteria for agency head positions are as follows (the italicised points are capabilities that illustrate how the criteria relate to on-the-job performance²):

Demonstrates high level leadership and vision
- sets a strategic vision and inspires others to achieve this
- innovative in dealing with issues
- articulates a clear direction for their organisation
Manages large and/or complex operations
- achieves results within the context of organisational and/or Government policy
- strong people management skills
- strong financial management, ensuring efficient, effective and ethical use of resources
- understanding of and commitment to quality organisational governance
Works with others to meet objectives
- operates collaboratively with others to meet organisational objectives
- cultivates productive relationships
- listens to people and values different perspectives
High level of judgement
Demonstrates a high standard of professional and personal integrity and capacity to promote these in an organisation.

The Commissioner may update the core selection criteria, from time to time, in consultation with Secretaries.

Statutory office holder selection criteria

For most non-agency head offices, the Senior Executive Service (SES) core criteria may suffice. These criteria are:

Shapes strategic thinking
Achieves results
Exemplifies personal drive and integrity
Cultivates productive working relationships
Communicates with influence.

The criteria, with a range of capabilities relevant to them, are set out on the Commission’s website at www.apsc.gov.au/selc.

2.6.2 Advertising

Vacancies must be notified at a minimum on the APSjobs website at www.apsjobs.gov.au and in the national press. Overseas advertising may be necessary for specialist positions. The Minister may also contact and encourage particular candidates to apply.

The Secretary may wish to engage an executive search firm to ensure the field of applicants is as strong as possible, although the Secretary, Commissioner and Minister still retain their responsibilities as outlined in these guidelines.

2.6.3 Assessment panel

An assessment panel will consider the claims of all applicants against the selection criteria. At a minimum, the assessment panel will consist of:

the Secretary and
the Commissioner.

Both the Secretary and Commissioner may choose representatives to participate in the panel. The Secretary, however, is still responsible for overseeing the process and providing recommendations to the Minister, and the Commissioner must still endorse the process.

The Secretary, having regard to any legislative provisions, will decide if one or more additional panel members are required to:

maintain gender balance
provide specialist expertise
represent the relevant advisory board, state/territory government, etc.

Just as Ministers’ staff cannot participate in the selection process for APS positions (including SES positions), they cannot sit on these panels.

Where legislation contains specific processes for appointments, those processes will take precedence to the extent of any inconsistency with this policy (see section 2.9).

2.6.4 Methods of assessment

Secretaries, in their role overseeing the assessment process, are responsible for establishing the means used to assess applicants. This would typically involve assessing written applications, conducting formal interviews and obtaining referee reports.

It may be appropriate to consult other people, for example, colleagues, board members, state or territory ministers or officials, or the Secretary of the Department of the Prime Minister and Cabinet, on a confidential basis.

Additional or alternative means of assessment are also available, including assessment centre methodologies, structured application forms, self-selection tools and occupational testing. All assessment processes must be overseen by the assessment panel.

The Secretary will also need to decide the level of pre-appointment checks to be undertaken (for example, declarations of private interests or security clearances).

2.6.5 Selection report

Regardless of who chairs the assessment panel, the Secretary provides a final report to the Minister at the conclusion of the assessment recommending a shortlist of suitable candidates for the Minister’s consideration. There is no requirement to rank candidates, although the panel may wish to do so where there is a clear order of merit or an outstanding candidate.

If neither the Commissioner nor Deputy Commissioner participated on the assessment panel directly, the Secretary’s report must be provided to the Commissioner for endorsement. The Commissioner’s representative on the panel will provide a separate report to the Commissioner confirming that the selection process has been based on merit.

2.6.6 Circumstances not requiring full selection process

Some circumstances may arise where the Minister does not wish to advertise a vacancy and conduct a full selection process. The most common circumstance where this could arise is where there is another office holder at a similar level that the Prime Minister considers should be appointed to the position. It is common practice for agency heads to be appointed to various positions throughout their career, and this is regarded as a reasonable alternative option.

Special circumstances where a Minister may consider a full selection process is inappropriate may include:

an urgent requirement to fill a position
the availability of an eminent person, where there would be little value in conducting a selection process.

The Minister must request the Prime Minister’s approval to fill a position without conducting a full selection process.

2.7 Duration of appointment

All appointments are to be made for a period of five years, unless:

individual appointees advise in writing that a shorter period is sought, or
the relevant legislation stipulates a different period, or
other special circumstances arise justifying a short term.

2.8 Appointments by a board

Where the appointment of an agency head or other statutory office holder is made by a board, the chair of the board will have the responsibilities in lieu of the Secretary and Minister as detailed above.

For Commonwealth Authorities and Companies Act 1997 (CAC Act) bodies, there are specific provisions under sections 28 and 43 of the CAC Act which enable the responsible Minister to require a Commonwealth authority or wholly-owned Commonwealth company to comply with general policies of the Government. CAC Act bodies should comply with this specific policy, unless there are special circumstances.

Prior to making any decision to apply the policy to a particular CAC Act authority or company, the Minister must consult the directors to seek their views on the application of this policy.

Where a board wishes to appoint a candidate not recommended by the assessment panel, the chair will need to consult with the responsible Minister and write to the Prime Minister setting out the reasons for the proposed decision.

2.9 Circumstances requiring modified processes

In some cases there may be legislative requirements, formal agreements with the states and/or territories or perceptions of conflict of interest that may arise which mean that the processes advised in this policy and guidelines need to be modified.

When this is the case, the Secretary, Commissioner and agency head (if relevant) will develop a standing alternative arrangement. Unless it is clearly inappropriate, any alternative arrangement must continue to include advertising, merit-based assessment and inclusion of the Commissioner (or representative) in the process.

2.10 Representation of women

Secretaries and Ministers will continue to seek to increase the representation of women in senior government appointments and include women on candidate lists, for example, by using the Office for Women database, AppointWomen.

AppointWomen is a database of women who wish to be considered for positions on an Australian Government decision-making body. Agencies may request the resume of one or a number of women for consideration. AppointWomen can be accessed at www.appointwomen.gov.au.

2.11 Costs

All costs associated with filling an agency head or statutory office holder vacancy, such as advertising costs, will be borne by the agency where the vacancy occurs, or as otherwise determined by the Secretary.

Appendix

APS Statutory Appointments

Merit-based and Transparent Selection Process (flowchart 1)
	Portfolio Secretary maintains records of all appointments
	Secretary advises Minister in writing (copied to Public Service Commissioner) of expiry appointments six months before expiry date
	Minister advises incumbent of writing whether or not they will be reappointed at least four months prior to expiry date and copies to Secretary. Secretary copies to Public Service Commissioner
	Incumbent to be reappointed?
YES			NO
	Special circumstances exist (eg office holder at similar level could be transferred, eminent person available).	unless	MERIT SELECTION PROCESS COMMENCES-See flowchart 2
	Minister writes to Prime Minister seeking approval
	Normal appointment process applies (Cabinet or Executive Council endorsement).

Merit-based and Transparent Selection Process (flowchart 2)
	Portfolio Secretary^a and Minister^a agree on selection criteria and advertising
	Vacancy advertised at minimum in national press and APSjobs
	Secretary^a (or representative) convenes and chairs assessment panel - includes Commissioner or representative
	Assessment panel: - assesses suitability of applicants against selection criteria - recommends shortlist of suitable candidates
	Where neither Commissioner or Deputy Commissioner on panel, Secretary^a provides report to Commissioner for endorsement
Governing boards consult Minister and write to Prime Minister	Secretary^a provides report to Minister
	Minister accepts reports recommendations?
NO		YES
Minister^a proposes an alternative appointee		YES
	Minister writes to Prime Minister seeking approval
	Normal appointment process applies (Cabinet or Executive Council endorsement)
a) Chair of board acts in lieu of Secretary and Minister where relevant.

1. FaHCSIA operate the Government Boards Reporting System which monitors, amongst other things, terms of appointments and the method by which people are appointed. Departments may wish to explore the features of the system with FaHCSIA. The system can be accessed at https://govboards.facsia.gov.au or by contacting the Office for Women.

2. The capabilities outlined under each of the main headings are not in themselves additional criteria and it is not intended that applications and assessments should address each and every capability. Rather, the capabilities assist in explaining why the criteria are important, by giving details of what will be expected on the job.

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