Introduction and background

This audit was included in the Audit and Evaluation Branch (AEB)’s 2015 Integrated Risk-Based Audit and Evaluation Plan, as approved by the Deputy Minister, upon recommendation of the External Audit Advisory Committee (EAAC).

As an innovative initiative, the AEB and the Public Service Commission (PSC) collaborated on this audit. This minimized the burden and interruption to human resources operations, and promoted audit efficiency. Another benefit gained from this initiative was the learning acquired by both teams through sharing of information and audit practices.

The audit also included a follow-up component to confirm whether the recommendations from the 2011 PSC Audit Report^{Footnote 1} were implemented.

Staffing

Staffing activities refer to appointments to the public service as well as promotions, lateral and downward movements and acting appointments within the public service. An appointment is an action taken to confer a position or set of duties on a person and is based on merit and non-partisanship.

Under the Public Service Employment Act (PSEA), the PSC is accountable to Parliament for the overall integrity of the staffing system. The PSC ensures the integrity of the staffing system through its regulatory authority, Appointment Framework and its oversight model, which includes audits and investigations. The PSC works in partnership with deputy heads who are accountable for how delegated appointment and appointment-related authorities are exercised in their departments and agencies.

The PSC renewed its Appointment Framework on April 1, 2016. The revised framework, which includes the Appointment Policy and the Appointment Delegation and Accountability Instrument (ADAI), was designed to simplify staffing across the public service, consistent with the expectations set out in the PSEA. Although the PSEA did not change, the policy suite has been reduced from 12 policies to one policy, and aims to provide deputy heads with a greater ability to customize organizational strategies based on unique context and business needs.

Classification

As per the Treasury Board (TB) Policy on Classification, a classification program ensures the infrastructure for the effective management and control of the classification of jobs or positions in the core public administration. A classification decision is an establishment or confirmation of the occupational group, sub-group (if applicable), level or ratings assigned to a job, which must be made by an employee exercising delegated/sub-delegated classification authority^{Footnote 2}.

The Treasury Board Secretariat (TBS) implemented a new classification policy framework on July 1, 2015. The TBS’s Chief Human Resources Officer (CHRO) is accountable for developing and maintaining the public administration-wide Classification Program including the occupational group structure, policies and related instruments, job evaluation standards, tools, learning and oversight.

The revised classification policy framework was developed to streamline and clarify deputy heads accountabilities and harmonize reporting requirements. It aims to improve how departments and agencies manage their day-to-day human resources classification operations by creating a foundation for sound classification decision-making through increased competency, oversight and, ultimately contributing to better management of the salary expenses. The framework includes the Policy on Classification, Directive on Classification, Directive on Classification Oversight and Directive on Classification Grievances.

One of the key changes with the new approach is that classification accreditation is now administered centrally by the Office of the Chief Human Resources Officer (OCHRO). In addition, classification oversight, which includes monitoring, audits and reporting, is now done biennially^{Footnote 3}.

ECCC’s Human Resources Branch

The Human Resources Branch (HRB) is responsible for the development and implementation of an integrated framework of HR strategies, policies, programs and advisory services. These tools enable ECCC to recruit, develop and retain a representative, competent and motivated workforce required to fulfill its mandate and deliver expected results. There are approximately 270 employees working in the HRB across the country. The total number of resources under the HRB has decreased over the last few years with the move of compensation advisors to Miramichi and other government initiatives.

Major initiatives, either recently completed or currently underway, have significantly impacted and challenged the HR function in recent years. Most notable are the centralization of Compensation Services in Miramichi, the implementation of the new pay system (Phoenix), reorganization of large branches in ECCC such as the combining of the Corporate Services Branch with the Finance Branch. In addition, the HRB has also gone through organizational and process restructuring, including a national staffing virtual team in November 2011 and, in April 2014, both the classification and staffing virtual teams were amalgamated to form the Integrated Classification and Staffing Solutions Directorate (ICSS).

In 2015-16, the HRB carried out 975 classification actions^{Footnote 4}  that required analysis and/or decisions and over 5,000 administrative classification actions^{Footnote 5} . During the same period, the HRB conducted over 1,000 staffing activities.