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Appendix 6

Definitions

Box plots

Box plots are used in this report to graphically represent the distribution of salaries. The line in the middle of the box is the median salary. Half of employees have a salary greater than the median and half have a salary of less than the median. Median salary is less affected by extreme values than mean (or average) salary.

The bottom of the box indicates the 25th percentile. Twenty-five percent of employees have salaries below the 25th percentile. The top of the box represents the 75th percentile. Twenty-five percent of employees have salaries above the 75th percentile. This means that 50% of employees earn salaries within the range of the box.

The two t-bars or whiskers capture data that is within 1.5 times the range of the box. The salaries that lie outside this range have been excluded.

Core Government Administration

Core Government Administration refers to:

  • all Public Service departments (excluding the Corrections Services section of the Department of Corrections, and the Child, Youth and Family, and Work and Income sections of the Ministry of Social Development)

  • five selected Crown entities: Housing New Zealand Corporation; New Zealand Qualifications Authority; New Zealand Transport Agency; New Zealand Trade and Enterprise; and Tertiary Education Commission.

Core Government Administration excludes:

  • the Corrections Services section of the Department of Corrections

  • the Child, Youth and Family, and Work and Income sections of the Ministry of Social Development

  • Crown entities (apart from the five noted above)

  • non Public Service departments (New Zealand Defence Force, New Zealand Police, Parliamentary Service, New Zealand Security Intelligence Service, Office of the Clerk, Parliamentary Counsel Office).

State services

The State services comprises the agencies that operate as instruments of the Crown in respect of the Government of New Zealand (i.e. the Executive Branch of Government). This includes the Public Service, most Crown entities, the Reserve Bank, a range of agencies listed on the 4th Schedule of the Public Finance Act 1989, companies listed on Schedule 4A of the Public Finance Act, and a small number of departments that are not part of the Public Service.

Public Service

Public Service departments are defined in section 27 of the State Sector Act 1988 as comprising the departments specified in Schedule 1 of the State Sector Act. As at 30 June 2014 there were 29 Public Service departments.

Core Crown

A reporting segment consisting of departments, Offices of Parliament, the NZS Fund and the Reserve Bank of New Zealand.

Total Crown

Includes the core Crown (defined above) plus Crown entities and State-owned Enterprises.

Full Time Equivalent (FTE)

Each employee is assigned a FTE value between 0 and 1 depending on the proportion of full-time hours (however defined by each department) worked. For example, an employee working full-time equals 1 FTE while an employee working 60% of full time hours equals 0.6 of an FTE. The FTE values of all employees are added up to give the total number of FTE employees in an organisation.

Turnover

Turnover rates for the Public Service are derived from the exits of staff from departments. As a result, turnover includes movements between departments and so the actual level of ‘loss' to the Public Service is below the figures reported in this report. Two turnover measures are used:

  • Core unplanned turnover – primarily due to resignations of open-term employees, but also includes retirements, dismissals and deaths. Core turnover rate is calculated as follows:

    Core turnover = (terminated permanent staff, who left due to resignation, retirement, dismissal, death or unknown reasons) / [(current year's permanent headcount + previous year's permanent headcount) / 2] x 100, (excludes fixed-term employees)

  • Gross turnover – includes both core unplanned and planned turnover. Planned turnover includes cessations of staff on fixed-term employment agreements and cessations due to restructuring. Gross turnover rate is calculated as follows:

    Gross turnover = (terminated staff on permanent and fixed-term contracts who left for any reason)/ [(current year's headcount + previous year's headcount) / 2] x 100

Gender pay gap

The gender pay gap is defined as the difference between the average salary for women and the average salary for men, and is expressed as a percentage of the average salary for men.

Ethnic pay gap

Ethnic pay gaps are defined as the difference between the average salary for an ethnic group and the average salary of those not in that ethnic group, and are expressed as a percentage of the average salary of those not in the ethnic group.

Integrated Data Infrastructure (IDI)

The results in this report that have been derived from data sourced from the IDI, managed by Statistics NZ, are not official statistics, they have been created for research purposes. The opinions, findings, recommendations, and conclusions expressed in relation to these results are those of the State Services Commission, not Statistics NZ.

Access to the anonymised data used in this study was provided by Statistics NZ in accordance with security and confidentiality provisions of the Statistics Act 1975. Only people authorised by the Statistics Act 1975 are allowed to see data about a particular person, household, business, or organisation, and the results in this report have been confidentialised to protect these groups from identification.

Careful consideration has been given to the privacy, security, and confidentiality issues associated with using administrative and survey data in the IDI. Further detail can be found in the Privacy impact assessment for the Integrated Data Infrastructure available from www.stats. govt.nz.

The results are based in part on tax data supplied by Inland Revenue to Statistics NZ under the Tax Administration Act 1994. This tax data must be used only for statistical purposes, and no individual information may be published or disclosed in any other form, or provided to Inland Revenue for administrative or regulatory purposes.

Any person who has had access to the unit record data has certified that they have been shown, have read, and have understood section 81 of the Tax Administration Act 1994, which relates to secrecy. Any discussion of data limitations or weaknesses is in the context of using the IDI for statistical purposes, and is not related to the data's ability to support Inland Revenue's core operational requirements.

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