- Title page
- Commissioner's Foreword
- A Public Service for the Future
- Executive Summary
- Staff Numbers
- People Costs
- The wider State services - Wage inflation comparisons
- Personnel expenses
- The Public Service annual salary movement
- Total salary cost
- Average salary movement and total cost by occupation
- Performance pay
- Recruitment and retention
- Leave - Annual leave balances, annual leave entitlements, parental leave
- Efficiency and effectiveness of HR functions
- Leadership in the State Services
- Capability and Diversity
- Appendix 1: FTE employees by department
- Appendix 2: Department diversity information
- Appendix 3: Tenure, annual leave, and sick leave by department
- Appendix 4: Occupations in the HR customised occupation groups
- Appendix 5: Definitions
It is important for agencies to understand the total cost of staff. On average, 40% of agency costs are people. People costs include elements such as wages and salaries, superannuation, performance pay, redundancy and retirement. Agencies also have costs associated with their HR function, which run the people policies and processes to effectively recruit, develop and manage staff.
The wider State services - Wage inflation comparisons
To supplement the annual HRC survey salary information, SSC purchases a customised report from Statistics New Zealand's LCI to monitor the movement in Public Service wages and salaries on a quarterly basis. The LCI measures movements in salary and wage rates, or wage inflation, for the New Zealand workforce.
In the year to June 2014, the LCI measured an increase in wages and salaries of 1.2% for the public sector. Within the public sector, the Public Service moved by 1.1%, the education sector by 1.2% and the health sector by 0.7%. In comparison, the private sector increased by 1.8%.
HRC and LCI salary movement figures are different because adjustments are made to the LCI that ensure a constant quality and quantity of labour is measured, whereas the salary increase shown in the HRC survey reflects the change in occupational structure of the workforce, the movement in staff pay due to both bargaining movements and pay progression. Figure 7 shows the LCI long term trend in salary and wage movements of selected sectors since March 2010 on a quarterly cumulative basis. Generally the salary and wage movements in the Public Service have been lower than those in the private sector and other government sectors over the last four years to June 2014.
Between March 2010 and June 2014 the gap in wages in salaries has widened between the public and private sectors. The LCI shows that public sector wages and salaries have increased by 6.2% compared to 8.4% for the private sector over the last four years. Within the public sector, the Public Service has increased by 5.2%, followed by 5.8% for the education sector, 5.9% for the health sector, and 8.7% for the local government sector.
Figure 7: Public and private sector wage movements, 2010-2014