Thank you, Mr. Chair.
I am very pleased to be here today to discuss, on my own behalf and my fellow commissioners'—Susan Cartwright and Daniel Tucker—the Public Service Commission's 2012-13 annual report, tabled in Parliament on November 6.
The mandate of the Public Service Commission is to promote and safeguard merit-based appointments and, in collaboration with other stakeholders, to protect the non-partisan nature of the public service. We welcome this opportunity to report to Parliament on our mandate.
Today I will be focusing my remarks on three areas. I will discuss the results of our oversight activities, make observations on the hiring and staffing activities in the public service, and highlight some of areas where I think there is still more work to do.
Oversight of the staffing system is a priority for the Public Service Commission. Based on all our oversight and feedback mechanisms—which include monitoring, audits and investigations—the commission has concluded that the management of staffing in departments and agencies continued to improve in 2012-2013.
The 12 audits the PSC conducted this year found that most of the key elements of effective staffing management were in place, and deputy heads and managers respected their delegated authority. However, some areas still require further attention. For example, some organizations need to continue to improve their internal monitoring of appointment processes. That monitoring allows them to detect and correct issues in a timely way. This brings me to our investigations.
This year, 44 cases were founded. We saw more cases involving fraud—for instance, the use of false educational or professional credentials. Many of these cases were detected as a result of improved monitoring by departments and agencies, as well as by the PSC.
However, I would like to note that the number of problematic transactions and founded investigations is actually very low in the context of the more than 100,000 hiring and staffing activities conducted on average each year.
With respect to hiring activities, this was an unusual year in many ways as departments and agencies focused their efforts on redeploying employees and placing persons affected by workforce adjustments, thereby altering the normal staffing patterns in government.
Overall hiring to the public service declined by 28.3%. This includes indeterminants, specified term and casual hiring, as well as the hiring of students. With fewer hires and more departures, the overall population that is covered by the Public Service Employment Act declined by 5.4%. Public service hiring declined throughout the country, but more particularly in the national capital region.
While student hiring was also down, over 9,500 students were still hired for part-time and summer employment. They represented 31% of all hiring to the public service, a percentage that has consistently increased over the past four years.
We also saw enhanced access to public service jobs. National area of selection continues to allow more Canadians to apply for opportunities no matter where they live. As well, Canadians without any previous work experience in the public service accounted for 41.7% of new permanent hires, the largest component for the first time in over a decade.
Now I'd like to turn to the support that the PSC provided to organizations in managing workforce reductions.
In 2012-13, the PSC enhanced the priority administration program, which allows the public service to retain qualified employees who have the skills and experience needed for the future. Working in close collaboration with departments and agencies, the PSC placed 956 priority persons, 17% more than last year even though permanent hiring was down by some 60%.
I'm also very happy to say that since April 1 we have successfully redeployed another 953 priority persons, the vast majority of whom were surplus employees. At the same time, the PSC has seen a drop in the placement in other priority categories, including a significant decline in the placement of Canadian armed forces veterans who have been medically released.
At the request of Veterans Affairs, the Public Service Commission provided technical options to address this issue for their consideration and the government has recently introduced Bill C-11, An Act to amend the Public Service Employment Act (priority hiring for injured veterans). Should Parliament approve these proposed amendments, the PSC is ready to implement them.
I'd now like to turn to public service renewal. There were fewer graduates who entered the public service in 2012-13. There were also fewer employees aged 35 years of age and younger; they represented 18.4% of the public service in March 2013, down from 21.4% in March 2010. In this context, a focus on renewal and the recruitment of new employees will gain greater importance as the public service moves forward.
Future recruitment must also take into account our increasingly diverse population. According to the most recent population data published by Treasury Board Secretariat, overall, we are making progress with the representation of employment equity groups in the public service. However, we still have work to do.
This year, the PSC conducted further research to better understand the challenges that employment equity groups experience and to use the findings to better target areas for specific action. For instance, we looked more closely at how being a member of an employment equity group affects the chances of promotion. One of the notable findings was that both men and women with disabilities were less likely to be promoted compared to those not belonging to an employment equity group. Even though these findings represent a single snapshot over a period of one year, we are concerned and are now undertaking more detailed work using this year's data. As part of this, we are taking a deeper look at career progressions among the designated groups.
In the meantime, we are sharing these findings with those in the public service who have leadership responsibilities for employment equity, including deputy ministers, and heads of human resources. We've also shared these results with the champions and the chairs of the respective employment equity groups in government.
With respect to innovation, the PSC continues to leverage its technology and expertise to offer departments and agencies efficient and cost-effective services tailored to their needs.
This year, the commission expanded its e-testing capacity. We have seen a steady increase in online testing, which now represents 50% of all tests administered by the PSC. We also made further advances in the use of unsupervised Internet testing and computer-generated testing. These innovative tools are a valuable link in enhancing access to public service jobs and effectively managing high volumes of applications.
I would now like to turn to the issue of non-partisanship. Safeguarding the political impartiality of the public service continues to be of critical importance. Our 2012 staffing survey found that employees' awareness continued to increase. For instance, 73% of respondents were aware of their rights and responsibilities with respect to political activities—up from 69% found in last year's survey. We will continue to collaborate with departments, agencies and other stakeholders to find ways to sustain this momentum.
It has been seven years since the implementation of the Public Service Employment Act, and we are reflecting on how we can continue to evolve our risk-based approach to audits, for example, with respect to small and micro organizations.
Going forward, the Public Service Commission is committed to working collaboratively with departments and agencies to build a strong culture and foundation of compliance, while providing independent oversight and assurance to Parliament on the health of the staffing system and the non-partisan nature of the public service.
Finally, Mr. Chair, you may have noticed that the PSC itself was among the 12 organizations audited in 2012-13. The commission put in place robust measures to mitigate risks concerning possible conflicts of interest. The findings and the three recommendations in this audit are being addressed through the implementation of a detailed action plan.
I would now be very pleased to respond to your questions.