Audit of the Efficiency and Effectiveness of the Staffing Process in Health Canada 2004-03-04

Summary

Authority for the Project

The audit of the efficiency and effectiveness of the staffing process in Health Canada was performed by the Audit and Accountability Bureau (AAB) in accordance with the 2002-2003 Risk-Based Audit Plan as approved by the Health Canada Audit and Evaluation Committee. This is the report of the audit.

Objectives

The primary objective of the audit was to determine the department's ability to meet the staffing and recruitment challenges at present and in the near future. The specific objectives were to independently review, assess and report on:

• the general efficiency and effectiveness of the human resources staffing process in support of departmental and operational objectives;
• the status of succession planning and subsequent staffing across the department to determine whether appropriate measures are being taken for the renewal of human resources; and
• the involvement of the Human Resources Directorate with respect to providing adequate support advice and guidance in the process.

Scope

The audit scope covered the entire staffing process in Health Canada, looking specifically at staffing actions within the 2002 calendar year, including the linkages between the respective roles of the Human Resources Services Directorate (HRSD) and departmental managers. The audit excluded any determination of whether staffing practices comply with the Canadian Human Rights Tribunal Order since that has been covered in other audit work.

Key Observations

Recent departmental realignment has made it difficult for the department to plan human resources management in the long-term. The Workplace Health and Human Resources Modernization (WHAHRM) initiative has raised awareness of recruitment and retention issues. It provides a sound basis for long term human resource management along with other HRSD initiatives however, the implementation of WHAHRM action plans has just started.

Although significant retirements are expected in the EX and scientific communities as well as others, this demographic challenge has not yet made a major impact on the department. There is still an opportunity to better manage the staffing process and to prepare for the impact of future retirements and potential staff shortages. HRSD has been aware of future demographic challenges for some time and there are plans for a more strategic approach to staffing including succession planning.

The department and the branches have not yet developed and implemented a staffing strategy to support the achievement of the department's mandate. Succession planning for EX's is included as a component of the Annual Review of Executives but no succession plans exist for senior level positions at the EX 01 and EX minus 1 levels. Action is not yet being taken in a concerted way to prepare staff for senior positions through developmental assignments and professional development, and to fill gaps with recruitment. Occupations with shortages of qualified candidates have been identified but only limited staffing plans have been developed and implemented to address them. A more in-depth analysis of the present demographics, projected retirement and growth factors is required to support the development of a staffing strategy including succession planning in Health Canada.

There is significant use of short-term staffing within the department which is increasing the workload for all involved and potentially limiting qualified candidates. One of the barriers to indeterminate staffing reported by managers and HR staff is that funding in the Branches may be allocated for short-term projects. Delegated managers do not feel that they can staff indeterminately when the funding is short-term. Improved business and human resources planning and risk-management of salary funds is needed to identify longer-terms skills and competencies and enhance the use of indeterminate staffing to increase departmental capacity for the future.

Staffing activities should be reviewed to provide reasonable assurance that staffing decisions are in line with the desired results. At the time of the audit, there was limited monitoring of the quality of staffing actions and their outcomes. Of the staffing activities reviewed during the audit, the staffing processes used by managers ranged from those which were very good to others which were inefficient and some which did not support staffing values and principles. The poor practices noted were linked to a lack of training information on staffing, lack of buy-in to the process or the need for speed to meet operational requirements.. In particular, a number of new managers were unaware of probationary period administration which will be especially important during a time of greater recruitment.

The effectiveness and efficiency of present staffing processes, including service standards, is not measured regularly. Increased monitoring of staffing methodologies, outcomes and time frames would provide information upon which to base improvements to the staffing program and would assist the department in realigning its staffing priorities to improve efficiencies. It was also noted that the security policy, the classification process and organizational design all have an impact on the efficiency and effectiveness of staffing in Health Canada.

HRSD has been innovative in a number of areas such as: scientific and other developmental programs; increased use of post-secondary recruitment; new delegations of staffing authority; new policies aimed at reducing temporary staffing and most notably, employment equity programs. Health Canada has been cited as a model for the public service for employment equity. Employment equity outcomes are regularly reported on. Activities such as establishing inventories of visible minorities for selection boards, providing training to managers and their employees on their responsibilities and conducting workforce analysis have contributed to a more representative workforce. However, there are still areas which need to be addressed and there appears to be a lack of resources to do so. There are many other HR challenges facing HRSD particularly in labour relations, staffing and classification and new requirements for middle management development due to legislative change and Central Agency initiatives. Managers will need increased support for human resources planning and staffing strategies than they have in the recent past. These challenges are faced at a time when there is a shortage of qualified HR staff members across the public service.

Conclusion

Despite a slow start, the department is taking its staffing needs seriously and is currently positioned to move forward with the development of a comprehensive departmental staffing strategy. This will require a strong commitment on the part of senior management to ensure a coordinated effort of all Branches which best meets the department's staffing needs both short and long term.

Current staffing practices need to be reviewed to ensure that the limited time available to both managers and HR is focussed on the greatest impact, that recruitment efforts are coordinated across the department for selected groups, and that developmental programs are used effectively.

Managers rely on quality staffing advice from the HR Advisors. Continued sound leadership from professional HR staff will be key to the department's ability to renew its human resources, in a highly competitive environment. The capacity of HRSD to deliver the service required to support HR modernization will be severely challenged and is a significant risk area for the department.

Recommendations

It is recommended that the ADM Corporate Services:

1. Review the current resource allocation and priorities of HRSD to reallocate resources, if required, to:
   • initiate a monitoring system which clearly identifies responsibilities, examines trends against values and agreed upon performance indicators, and ensures that results are reported to senior management for corrective action
   • provide improved advice, training and information to managers and HR staff on their staffing responsibilities, including probationary period administration for new appointments to the public service.
2. Advise Branch ADMs to promote the use of indeterminate staffing whenever possible and review their internal funding and human resources management practices for project work to more effectively risk-manage the use of departmental human resources.
3. Building on existing initiatives, designate resources to work with departmental senior management to identify departmental staffing needs, based on in-depth demographic analysis and forecasting of future needs and develop, implement and monitor an overall staffing strategy including succession plans to resource key positions.
4. Review the capacity of HRSD, and in conjunction with ADMs review the newly developed Branch Management Services Groups, to address staffing issues, including the level of resources and the availability of qualified HR staff in the short- and long-term. Where there are shortfalls, develop a human resources plan and/or a business case for transition costs, based on sound human resources forecasting and HR business planning principles.