Performance measures and targets for Outcome 1 are described on pages 24–29 of the department’s Portfolio Budget Statements 2018–19 and pages 13–20 of the department’s 2018–19 Corporate Plan.

These performance measures and targets have been developed to support policies and programs that contribute to increased employment, workforce participation and engagement.

Several performance measures and targets relate to helping job seekers find and stay in work, move from welfare to work, and meet their mutual obligations. There are also measures and targets that relate to employment services providers delivering quality services, meeting employer needs and helping young people move into work and education through the Transition to Work service. In 2018–19, the department added measures and targets to track performance for New Business Assistance with NEIS (the New Enterprise Incentive Scheme), ParentsNext and the Time to Work Employment Service.

Performance data is based on an extract date of 30 June 2019 unless otherwise indicated. For ParentsNext and the Time to Work Employment Service, the new performance measures are based on services in the early stages, which delayed reporting against these targets.

The department publishes key performance targets for employment services across the four-year period to take account of external factors that limit the ability to estimate long-term performance. Adjustments may be made over time. A performance measure is considered met if it is within 5 per cent of the target.

In 2018–19, the department met or exceeded 16 of its 20 performance targets under the jobactive program, New Business Assistance with NEIS, the Time to Work Employment Service program, and the Transition to Work program.

jobactive program — find and keep a job

Having a job offers a range of benefits to the individual, including higher standards of living, better health and self-esteem, and stronger links within the community.

This performance measure was designed to ensure that jobactive is meeting its obligations to help participants find and keep work, by monitoring the proportion of job placements that were sustained to at least 26 weeks, and the proportion of participants who were employed three months after participating in jobactive.

Table 2. Targets and results — find and keep a job¹

Proportion of job placements sustained to 26 weeks, overall and for Indigenous job seekers

Research has found that most participants who are employed for 26 weeks will remain off income support for at least the following 12 months. When a participant is placed in a job, remains employed for 26 weeks and comes off income support, their provider receives an outcome payment.

This measure tracks sustainable employment gained through jobactive, reporting on the proportion of job placements that were sustained long enough to convert into 26-week outcomes. It uses administrative data and is reported publicly each year.

This measure also reflected the department’s commitment to the Closing the Gap initiative. To drive continuous improvement in Indigenous employment, the department set a specific parity target for achieving sustainable outcomes for Indigenous job seekers. For 2018–19, the target was increased to 30 per cent of job placements converting to 26-week outcomes, from 25 per cent in 2017–18.

The target was exceeded both overall and for Indigenous job seekers. Performance against this measure has improved each year under jobactive.

Figure 2. Proportion of job placements sustained to 26 weeks

Proportion of job seekers employed three months after participating in jobactive

Under jobactive, an eligible job seeker is assisted through one of three streams that correlate with differing levels of labour market disadvantage.

Stream A participants are the most job ready, and receive services to help them meet employer needs and navigate the local labour market. Stream B participants have some employment barriers, such as disability or lower levels of educational attainment, and need their provider to play a greater role to help them find work. Stream C participants require the most assistance, often having a combination of vocational and non-vocational barriers that need to be addressed before they are ready for employment. These barriers may include reduced work capacity, physical or mental health issues or substance abuse. Stream C job seekers receive case management support to help them take up and keep a job.

The department used results from the post-program monitoring survey to measure the employment status of participants three months after participating in jobactive. Those surveyed might have exited jobactive or might have still been receiving services. Post-program monitoring survey data provided information not available from the department’s administrative data, such as the employment and education status of exited participants. It also provided a fuller picture of employment outcomes, as not all employment undertaken by jobactive participants is captured in job placement records. Results from post-program monitoring surveys were published in the department’s quarterly Employment Services Outcomes Report.

Results for 2018–19 are based on job seekers who participated in jobactive between 1 January 2018 and 31 December 2018.

Figure 3. Proportion of job seekers employed three months after participating in jobactive, by stream

In 2018–19, the proportion of job seekers employed three months after participating in jobactive continued to exceed the targets for each stream and for the program as a whole.

Employment rates improved for refugee participants and sole parents and were relatively stable for Indigenous Australians. However, employment rates declined slightly for a range of disadvantaged participant cohorts, including long-term unemployed participants (participants registered with employment services for 12 months or more), culturally and linguistically diverse participants, ex-offenders, homeless participants and people with disability.

Figure 4. Proportion of job seekers in selected cohorts employed three months after participating in jobactive

jobactive participants are most commonly employed in temporary, casual or seasonal work three months after participating in the program. However, close to one-quarter of jobs held by 2018–19 participants at the three-month point were full time, and more than one-third were permanent.

Figure 5. Employment type of job seekers in employment three months after participating in jobactive

jobactive program — help job seekers move from welfare to work

Helping participants move off welfare and into work empowers them to gain control of their financial future and reduce their reliance on the welfare system. This performance measure was designed to gauge the extent to which jobactive led to sustainably reduced reliance on income support payments. A significant reduction is defined as an average reduction of 60 per cent or more.

Indicator	2018–19 target	Result
Proportion of job seekers moving off income support, or with significantly reduced reliance on income support, six months after participating in jobactive	40%	44.6%

Note: Includes participants in the Online Employment Services Trial.

Proportion of job seekers off income support, or with reduced reliance on income support, six months after participating in jobactive

The result for this measure was calculated using administrative data. A snapshot of the income support status of all participants on the jobactive caseload was taken at the end of each month between 1 January 2018 and 31 December 2018. Each participant’s income support status at this point was compared with their income support status six months later. The department publishes results for this measure every year.

In 2018–19, 44.6 per cent of participants had moved off income support or significantly reduced their reliance on income support six months after participating in jobactive.

Figure 6. Proportion of participants off income support, or with reduced reliance on income support, six months after participating in jobactive

jobactive program — help job seekers meet their mutual obligations

To increase Australia’s workforce participation, it is important that participants remain motivated and active in finding employment. Indicators under this performance measure tracked the extent to which jobactive participants are actively engaged, meeting their mutual obligations and attending appointments with their providers to look for suitable work.

Table 4. Targets and results — help job seekers meet their mutual obligations

Proportion of Work for the Dole participants reporting increased motivation to find a job

Work for the Dole (WfD) is a work experience program that places participants in activities where they can build new skills, experience and confidence to move from welfare to work while giving back to their community. The extent to which WfD increases participants’ motivation to find work is a measure of how effective the program is at keeping participants activated and engaged.

The department’s post-program monitoring survey measured the impact of WfD participation on job seekers’ soft skills and outlook. It was conducted six weeks after commencing in a WfD activity. Results were published quarterly in the Employment Services Outcome Report.

In 2018–19, the proportion of WfD participants reporting improved motivation to find a job was 76.7 per cent, exceeding the 75 per cent target for 2018–19 and improving on 2017–18 (74.9 per cent). A majority of participants also reported an improvement in their desire to find a job, ability to work with others, self-confidence, work-related skills and chances of getting a job.

Figure 7. Proportion of Work for the Dole participants who report improvements in their soft skills

Proportion of jobactive appointments attended by activity-tested job seekers

Appointment attendance is a measure of participant engagement, as participants must regularly attend appointments with their provider to monitor progress against their requirements and to discuss strategies to find work.

The calculation for this measure was refined for the 2018–19 financial year following the introduction of the Targeted Compliance Framework. The measure now calculates provider appointments attended as a proportion of the sum of attended appointments, appointments not attended for an invalid reason, and appointments where misconduct occurred. Previously the denominator included missed appointments that the provider chose not to report as non-attendance to the Department of Human Services (now called Services Australia).

The result for this measure was calculated using administrative data.

In 2018–19, 78.7 per cent of appointments were attended (see Figure 8). This is below the 90 per cent target; however, the target is designed to be aspirational. Comparison with the equivalent 2017–18 result is not meaningful, given the change in calculation method.

The department is continuing to work with providers and participants to improve performance against this measure.

Figure 8. Proportion of jobactive appointments attended

Proportion of participants with mutual obligation requirements who are actively looking for work

Ensuring that participants actively look for work and stay engaged with the labour market is a key priority of jobactive. To help sustain engagement, most participants are required to look for work as part of their job plan. A job plan is unique to the participant and outlines their mutual obligation requirements, such as appointment attendance and job search, as well as any education, skills training and other activities they need to do to improve their employability.

This measure reported on the proportion of participants who met the job search requirements in their job plan. In previous years the department reported on the proportion of participants with a job search requirement in their job plan. This measure was refined for 2018–19 following the introduction of the Targeted Compliance Framework.

The result for this measure was calculated using administrative data.

In 2018–19, 70.2 per cent of participants met their job search requirements (see Figure 9). While this was below the 98 per cent stretch target, performance improved significantly throughout the year and is expected to improve further as the department works with providers to increase job seeker compliance with mutual obligations.

Figure 9. Proportion of participants with mutual obligation requirements actively looking for work²

jobactive program — jobactive providers deliver quality services

Delivering high-quality services to job seekers and employers helps to support the achievement of other jobactive performance measures and provides the Australian community and job seekers with value for the money spent on employment services. The indicators for this performance measure reflected the effectiveness of the department’s approach to ensuring that providers meet their employer satisfaction and service delivery targets.

Table 5. Targets and results — jobactive providers deliver quality services

Indicator	2018–19 target	Result
Proportion of employers satisfied with the assistance provided by a jobactive organisation	80%	81%
Proportion of assessed commitments met by jobactive providers	80%	84%

Proportion of employers satisfied with the assistance provided by a jobactive organisation

By tailoring their services to employers’ needs, jobactive providers are better positioned to help job seekers achieve job placements, while providing a valuable service for employers.

Data for this measure is sourced from the department’s Survey of Employers’ Recruitment Experiences from the more than 800 employers who could recall the name of a jobactive provider they had used in the last 12 months.

The measure is the proportion of employers who were satisfied with the assistance provided. In the year to May 2019³, 81 per cent of employers were satisfied with the assistance provided by a jobactive provider. This meets the 80 per cent target.

Commitments met by jobactive providers

jobactive providers are monitored to ensure they are making available to job seekers, employers and other stakeholders the services to which they have committed in their tailored service delivery offers. The department continues to monitor these commitments through the contract management process, which assesses 25 per cent of each provider’s commitments each six-month period and determines whether they have been met.

For 2018–19, the methodology for calculating this measure was revised to focus on the proportion of jobactive providers which departmental contract managers assess as meeting at least 80 per cent of the assessed commitments.

In 2018–19, 84 per cent of jobactive providers met at least 80 per cent of their assessed commitments, exceeding the target. This demonstrates the department’s continued productive relationship with providers, ensuring commitments are met and services are of a high quality.

jobactive program — overall program measure: cost per employment outcome

The cost per employment outcome measure provides an overall indication of jobactive’s cost efficiency and performance, and confirms whether employment services are providing value for money. It was calculated as the average sum of money spent per outcome. When considered over time, this measure may demonstrate the department’s efficiency in achieving its purpose of developing and implementing national policies and programs that help Australians find and keep work.

Program costs take into account expenditure such as administration fees, outcome payments, and support provided from the Employment Fund. Employment outcomes are determined as the number of participants who are employed three months after participating in jobactive, as measured by the post-program monitoring survey. They are recorded for all types of employment, including part-time employment that is insufficient to generate a paid employment outcome for providers. As a result, this figure is different from the number of employment outcomes recorded in program administrative data.

Table 6. Overall program measure target and result

Cost per employment outcome

In 2018–19, the cost per employment outcome for jobactive was $2,410. This is below the $2,500 target, but exceeds the 2017–18 figure ($2,188).

New Business Assistance with NEIS — help people to create their own job through self-employment

New Business Assistance with NEIS helps Australians to become financially independent. NEIS is designed to assist people who wish to start their own business and offers a range of services such as accredited small business training, mentoring, and support. The program also gives eligible participants access to NEIS Allowance for up to 39 weeks while starting their business.

This measure helped to track how NEIS is helping Australians to take charge of their financial future, by assessing the proportion of participants who were off income support or working 20 hours per week, three months after exiting NEIS. The target recognised that some businesses may struggle with their first attempt.

Table 7. Target and result — New Business Assistance with NEIS

Proportion of NEIS participants off income support or working 20 hours per week three months after participating in and then exiting NEIS

In 2018–19, 67 per cent of NEIS participants were off income support or were working 20 hours per week three months after participating in and then exiting NEIS, meeting the target.

The result for this measure was calculated using administrative data for the period 1 July 2015 to 30 June 2019. This timeframe enabled a whole-of-program perspective that aligns with jobactive. It provided sufficient time for participants to complete the program and move off income support or achieve sustainable work, which may be up to 15 months from the date of commencing their NEIS business.

ParentsNext program — support parents to build their work readiness

This performance measure focused on efforts that help to promote the effectiveness of the ParentsNext program by reporting on the rate at which ParentsNext participants were engaged in a current activity. ParentsNext provides personalised support to parents, to help them plan and prepare for employment while caring for young children. It aims to increase their work prospects by the time their children start school.

Table 8. Target and result — ParentsNext

Indicator	2018–19 target	Result
Proportion of ParentsNext participants who are in a current activity	80%	88.6%

Proportion of ParentsNext participants who are in a current activity

This measure is the proportion of ParentsNext participants who had a current activity in their participation plan. This was calculated using administrative data and is the percentage of the current caseload with a current activity at the time of reporting.

As at 30 June 2019, of the 59,809 participants commenced on the caseload, 88.6 per cent (53,006 participants) were in a current activity.

Time to Work Employment Service — support Indigenous prisoners prepare to find employment and reintegrate back into the community

The department is committed to understanding each individual’s unique circumstances and barriers to undertaking employment and offering the assistance they need to re-enter the workforce. The Time to Work Employment Service (TWES) provides eligible indigenous prisoners with assistance while they are incarcerated, to help prepare for employment post release.

Commencement of TWES was slower than expected due to delays in signing memoranda of understanding (MOUs) and determining service start dates in prisons. The final MOU (for Western Australia) was signed in April 2019.

A number of factors have affected performance against the measures for this outcome:

• the time needed to process provider staff through security clearances and inductions at each prison before commencement of services
• differing approaches between states and territories and from prison to prison to identify eligible prisoners, promote the service and provide access and resources, including rooms for appointments
• the voluntary nature of the service, and prisoners having limited time and a range of programs and services on offer to choose from
• the fact that servicing has only just commenced in some of the larger facilities, where uptake rates have not yet reached their potential proportionate to eligible prisoners.

Table 9. Targets and results — Time to Work Employment Service

Indicator	2018–19 target	Result
Proportion of eligible prisoners that participate in the service	50%	33%
Proportion of participants that complete a facilitated transfer from their in-prison service provider to their post-release employment service provider	60%	55%

Eligible prisoners participating in the service

This performance measure set a target of 50 per cent of eligible TWES participants commencing in the program. The measure was calculated using administrative data.

At 30 June 2019, the proportion of eligible participants who had commenced in TWES was 33 per cent. While this is below the target, the shortfall is largely explained by the factors outlined above. The department continues to work with stakeholders to promote the use and streamlining of the service.

Participants completing a facilitated transfer from their in-prison service provider to their post release employment service provider

This measure of the program’s performance assessed how many TWES participants moved from an in-prison provider to a post-release provider. The 2018–19 target was 60 per cent. The result was calculated using administrative data.

At 30 June 2019, 55 per cent of TWES participants completed a facilitated transfer from their in-prison service provider to their post-release employment service provider, just short of meeting the 60 per cent target.

However, performance against this target in 2018–19 demonstrated that participants who completed the service were then connected to the most appropriate post-release employment services to receive the right support to help them find employment.

Transition to Work — help young people move into work or education

The Transition to Work (TtW) program is designed to give young people, especially early school leavers aged between 15 and 21 years who are not in education or employment, more options by offering intensive pre-employment support to improve their work-readiness and to find work. TtW also links young people with apprenticeships, traineeships or education.

In July 2018, funding for TtW became demand-driven, responding to a higher than expected number of young people seeking to participate in the program.

Indicators under this performance measure were designed to assess the rate at which TtW helped participants sustain employment and education through the program.

Table 10. Targets and results — Transition to Work

Indicator	2018–19 target	Result
Proportion of placements sustained to a 12 week employment outcome or hybrid outcome, or a 26 week education outcome	65%	71.7%
Proportion of placements that are converted to sustainability outcomes	40%	45.0%
Proportion of Transition to Work participants moving off income support, reducing their reliance on income support, or moving to Youth Allowance (student) six months after participating in the service	30%	34.6%

Figure 10. Transition to Work performance targets

Proportion of placements sustained to a 12-week employment or hybrid outcome, or a 26-week education outcome

This measure recognises the different ways a TtW participant can find and stay in work. The result was calculated as the proportion of TtW placements that are sustained to a 12-week employment or hybrid outcome or to a 26-week education outcome.

A TtW provider could receive:

• a 12-week employment outcome payment when a participant was employed for 12 cumulative weeks, where each period of employment comprised at least four weeks
• an education outcome payment when a participant undertook 26 consecutive weeks of:

– full-time participation in or completion of a Certificate III course or higher

– full-time participation in or completion of secondary education leading to a Year 12 qualification,

– full-time participation in the Adult Migrant English program or the Skills for Education and Employment program

• a hybrid outcome payment when a participant completed 12 consecutive weeks in a combination of employment or study (as described in the outcomes listed above).

The result was calculated using administrative data for placements occurring between 14 August 2017 and 13 August 2018, with outcomes achieved in the 12 months to 30 June 2019.

In 2018–19, 71.7 per cent of TtW placements achieved a 12-week employment or hybrid outcome or a 26-week education outcome. This exceeded the 2018–19 target of 65 per cent by 6.6 percentage points and is higher than the 2017–18 result (70.9 per cent).

Proportion of placements converted to sustainability outcomes

This measure reported on the proportion of TtW placements that converted to sustainability outcomes, meaning the participant continued in their employment or education placement for an additional 14 consecutive weeks following the completion of their 12-week employment or hybrid outcome.

The result is calculated using administrative data for placements occurring between 8 June 2017 and 7 June 2018, with outcomes achieved in the 12 months to 30 June 2019.

In 2018–19, 45 per cent of TtW placements converted to sustainability outcomes, exceeding the 2018–19 target of 40 per cent by 5 percentage points.

As sustainability outcomes under TtW are different to 26-week employment outcomes under jobactive, this figure should not be compared to the 26-week outcome measure for jobactive, which was the proportion of job placements sustained to 26 weeks.

Proportion of TtW participants moving off income support, reducing their reliance on income support, or moving to Youth Allowance (Student) six months after participating in the service

Participants who move off or substantially reduce their reliance on income support are on their way to becoming financially self-reliant and independent. Those who moved to Youth Allowance (Student) are studying and earning qualifications that will improve their employment prospects in the future.

This measure was the proportion of Transition to Work participants moving off income support, reducing their reliance on income support (defined as a reduction of 60 per cent or more), or moving to Youth Allowance (Student) payments six months after participating in the service.

The result was calculated using administrative data. Data was collected for participants in the Transition to Work service between 1 January 2018 and 31 December 2018. The income support status of these participants was measured six months later, between 1 July 2018 and 30 June 2019.

In 2018–19, 34.6 per cent of participants moved off income support, reduced their reliance on income support or were on Youth Allowance (Student) six months after participating in TtW. This exceeded the 2018–19 target of 30 per cent by 4.6 percentage points.

Customer service statistics

From 1 July 2018 to 30 June 2019, the department’s National Customer Service Line handled more than 223,686 calls about employment support services. These calls related to all Australian Government funded employment and related services, including jobactive, Transition to Work, ParentsNext, Youth Jobs PaTH, Disability Employment Services (administered by the Department of Social Services) and the Community Development Programme (administered by the National Indigenous Australians Agency).

In relation to the employment services administered by this department, the National Customer Service Line managed 87,654 feedback items (compared with 66,858 items in 2017–18 — a 31.1 per cent increase. There were 16,443 complaints, 29,875 requests for information and 28,353 transfers of job seekers between employment services providers (see Table 11).

Table 11. National Customer Service Line feedback by type, 2018–19

Feedback type	Number	Proportion
Complaints	16,443	18.76%
Requests for information	29,875	34.08%
Transfers of job seekers	28,353	32.35%
Other (e.g. compliments and suggestions)	12,983	14.81%
Total	87,654	100%

jobactive star ratings

In addition to assessing program-level performance measures and targets, the department calculated quarterly star ratings to assess the relative performance of individual jobactive provider sites nationally. They are published on the jobactive website and the department’s website to help job seekers and employers when choosing a provider. Sites rated with 3 stars perform around the national average, 4-star and 5-star sites achieve better than average results, and 1-star and 2-star sites are below average.

The ratings drive continuous improvement in provider performance against the assessed performance measures over a rolling two-year period. These measures focused on achieving sustained employment placements for the job seekers being assisted, and ensured that job seekers were undertaking activities to meet their annual requirements. Higher weightings were attributed to outcomes for the most disadvantaged job seekers. There was a strong focus on outcomes for Indigenous job seekers. This included the Indigenous Outcomes Incentive, which assessed individual providers’ outcome rates for Indigenous job seekers in comparison with non-Indigenous job seekers, resulting in positive adjustments to the ratings assessment if the outcome rates for Indigenous job seekers were higher, and negative adjustments if they were lower.

The ratings accounted for differences between sites in local labour market conditions, and the personal factors of the job seekers being helped, such as education level, length of unemployment and workforce experience.

Employment services program assurance

The department’s Employment Services Assurance Strategy provides for a principles-based approach to the oversight, management and reporting of assurance activities across employment services programs. It is supported by the Employment Services Assurance Framework, which gives guidance to staff on identifying, developing and undertaking program-specific assurance planning and activities.

The department employed a wide variety of mechanisms to assure the quality and integrity of employment services. These include the Rolling Random Sample, the Compliance Indicator, the jobactive Quality Assurance Framework, targeted assurance, data analytics and contract management activities.

Over the year, Rolling Random Sample activities continued to assess payment integrity across jobactive and included Transition to Work. The Rolling Random Sample results continued to show a high level of payment integrity, with most cost recoveries being the result of administrative error. Feedback on each Rolling Random Sample cycle is given to all jobactive providers to inform their claiming practices and their understanding of the jobactive Deed and program requirements.

Across the employment services administered by the department, $3,072,839 net was recovered in 2018–19. This is equivalent to 0.18 per cent of spending over the same period and is slightly larger than the proportion for 2017–18 of 0.14 per cent. This reflects the wider range of transactions reviewed and an increase in the average dollar value of each recovery. This proportion is calculated as the net dollars recovered in the year against employment services contracts, divided by the total Program 1.1 Administered Expenses set out in the Agency Resources Statement.

The Compliance Indicator is a measure of each provider’s compliance with the jobactive Deed and guidelines for submitting claims for payment and other relevant processes. It is a score between zero (absolute non-compliance) and 100 (perfect compliance) based on the aggregated results of compliance reviews finalised in the preceding 18 months.

The high level of jobactive provider compliance evident in the Rolling Random Sample result is reflected in the continued strong average Compliance Indicator score, 95.7 for the June 2019 jobactive star ratings, which is comparable to 96.1 for June 2018.

The Quality Assurance Framework sets the minimum standard of quality for jobactive providers. It has been in place since July 2015. Certification under this framework assures the department that providers have established policies and processes to support service delivery. All ongoing jobactive providers have maintained Quality Assurance Framework certification, and new providers contracted in 2018–19 are working towards achieving Quality Assurance Framework certification within the required timeframes.