1998 April Report of the Auditor General of Canada

April 1998 Report—Chapter 1

Exhibit 1.10—The Impact of Incentives on Auditors, Computer System Specialists and Executives

We compared the fluctuations in the population of indeterminate employees in these occupational groups between April 1994 and March 1997 to assess the full impact of incentives. We have noted the following:

• Auditors (AU) The vast majority - some 450 or 94 percent - of the Auditors who left the public service between April 1994 and March 1997 left without an incentive. Although some individuals (30 or six percent) did receive an incentive, they were generally isolated cases throughout Canada or in Ontario. We have noted also that new recruits have dropped significantly between 1994 and 1997 when compared with previous years. There were some 5,100 employees in this occupational group in March 1994 and the same number in March 1997. Incentives did not have a significant impact on natural attrition or the total separation rate.
• Computer System (CS) The number of individuals in the Computer System group increased by some 900 from 6,200 in April 1994 to some 7,100 in March 1997. In 1994-95 natural attrition was approximately two percent and below that of the public service. Natural attrition increased to 3.5 percent, that is, above that of the public service, which was at some two percent in 1995-96 and in 1996-97. During the same period, however, some 430 Computer Systems Specialists also received an incentive to leave or retire from the public service. Natural attrition dropped but the total separation rate increased to some six percent. The majority of those who left with incentives were at the CS 2 and CS 3 levels in the National Capital Region. During the same period, some 650 individuals were recruited, mostly at the entry level (CS 1). In October 1997 the government signed a collective agreement that included lump sum payments to entice Computer System Specialists to remain in the public service. Furthermore, it has been reported that as many as 2,000 Computer System Specialists may be required to deal with the Year 2000 issue.
• Executive (EX) Between April 1994 and March 1997 the number of Executives dropped by some 600 or 16 percent, from some 3,850 to some 3,250. In 1994-95, natural attrition was higher than that of the public service, ranging from 6 to 15 percent depending on the level. Between March 1995 and March 1997, some 500 Executives left without any incentive while some 650 received incentives. The majority left with an early retirement incentive but a significant number left with an incentive under the Executive Employment Transition Policy (see Appendix A). Natural attrition for the Executive Group dropped to approximately three percent, but the total separation rate was between 7 and 10 percent depending on the level. Between 1995 and 1997, some 80 Executives were recruited externally, many at the EX 1 level.

Source: Incumbent File and Mobility File