Audit of Readiness for the New Public Service Employment Act – Highlights

October 2006

Why did the Public Service Commission conduct this audit?

The new Public Service Employment Act (PSEA), which came into force December 31, 2005, is an important component of the modernization of human resources management in the public service of Canada. The intent is to allow the appointment process to be more adaptable and efficient. Also, it is intended that there will be more room for managers to exercise judgement in carrying out appointment processes and in making appointment decisions. The PSC developed essential elements that departments and agencies had to have in place before the new PSEA came into force at the end of 2005. The essential elements included the new delegation instruments, policies, training and communication, and accountability and reporting requirements.

The objective of this audit was to determine whether a selection of departments and agencies had met the essential elements prior to the implementation of the new PSEA. The PSC chose to audit the Readiness for the new PSEA because of the importance of these changes and the early detection of potential problems.

We selected six organizations to audit representing large, medium, and small organizations and those with a regional presence. The audit covered the period from January 1, 2005 to March 31, 2006. Staffing activities and appointments under the new PSEA were only being implemented at this time, and consequently, the audit did not include a review of completed appointment processes by which to measure compliance. At this stage there can be no assurance that the accountability instruments, policies and training provided have led to changes in practices. This will be a question for subsequent audits.

What did the PSC find?

Overall, we found that the selected departments and agencies had met the essential elements for the coming into force of the new PSEA. The success was largely due to the concerted efforts of all those in the community: sub-delegated managers, human resources advisors, deputy heads, the PSC and the Public Service Human Resources Management Agency of Canada (PSHRMAC).

The process of change is just starting and there are significant challenges ahead that will have to be dealt with if full implementation of the new PSEA is to be a success. We found that there was a need for continued emphasis on training managers, human resources advisors and employees; and a need to make continual improvements to tools, learning and communication. We noted that organizations had challenges in attracting and retaining human resources specialists needed to implement the new PSEA due to a variety of factors such as promotions, transfers, and retirements of the human resources advisors. Furthermore, our audit raised concerns about the reliability and timeliness of human resources data to adequately support monitoring and central reporting requirements.

What is being done?

Prior to the coming into force of the new PSEA, it was anticipated that deputy heads would be required to undertake further activities to continue the momentum for change. These "Moving Forward" activities include the implementation of integrated business and human resources planning, continued emphasis on training and enhancements to policies and support activities (tools, learning and communication).

Deputy heads accepted the findings of this audit and agreed to implement the recommendation that they provide ongoing leadership to support the full implementation of the PSEA with particular attention to:

• implementing the "Moving Forward" activities;
• developing a reasonable level of human resources advisors with appropriate staffing expertise to support sub-delegated managers; and
• improving the reliability and timeliness of data to support monitoring of staffing activities and reporting.

The PSC has committed to working with departments and agencies, the human resources community and PSHRMAC to establish timelines for the "Moving Forward" activities.