Chapter 25. Performance

Supporting Documents for this Chapter:

• TtW Performance Measures Methodology sign-in required (sign-in required)

• TtW – Measure 2.1 Active Servicing Rate – Reference Guidesign-in required (sign-in required)

• TtW – Measure 1.1 Outcome Rates – Reference Guidesign-in required (sign-in required)

• TtW – Measure 2.2 Barriers – Reference Guidesign-in required (sign-in required)

The Department will assess Provider performance using the Transition to Work (TtW) Provider Performance and Quality Framework (Framework). The Framework:

• ensures TtW Providers are delivering a high-quality Service and providing Participants with personalised and holistic support that encourages Participants to engage in Education or training and/or reduces the risk of Participants becoming or remaining long-term unemployed,

• encourages innovation and drives continuous improvement over the life of the Deed, and

• ensures Providers are fulfilling their obligations under the Deed and meeting appropriate standards.

This Chapter outlines the Framework, its 5 modules, and how the Department will assess Provider performance.

This Chapter should be read in conjunction with the TtW Performance Measures Methodology supporting documentsign-in required (sign-in required).

(Deed Reference(s): Section B1.4 - Provider Performance and Quality Framework)

TtW Provider performance is monitored and assessed by the Department on a regular basis and takes into account a range of factors. As well as ongoing internal monitoring, there are two key elements to the Department’s assessment of Provider performance:

• random and targeted assurance activities; and

• interim and final (annual) performance reviews each year.

These elements allow the Department to review and discuss aspects of each Provider’s performance to identify strengths, as well as areas requiring improvement.

Performance reviews assess the performance of each Provider against the Key Performance Indicators (KPIs) in the Framework at the end of each Performance Period. These performance measures (or KPIs) are assessed based on data from either the most recent 12-month period or using data from the most recent six-month Performance Period.

To inform a Provider's performance result, the Department will use data collected through the Department's IT System, as well as information and data collected from sources, including:

• Performance Period reviews

• feedback from Participants, Employers, Host Organisations, and other employment services providers; and

• intelligence from the Department's Employment Services Tip off Line and National Customer Service Line (NCSL).

The Framework enables the comprehensive assessment of Provider performance against performance measures at the contract level.

The TtW Provider Performance and Quality Framework comprises 5 modules:

• Education and Employment

• Progress to Employment

• Quality of Service

• Efficiency of Service; and

• Deed Compliance and Contract Management.

These modules consist of a range of measures and include both quantitative and qualitative metrics. The frequency of assessment under each measure is dependent on what is being measured.

The Department may refine the Framework modules and/or measures over time if they are not fully achieving what is intended or if they lead to undesirable behaviour by Providers. Providers will be notified in advance of any changes to the Framework.

Performance ratings will be given for each performance measure and these ratings will be combined to arrive at module-level ratings. The ratings that apply at both the module level and for individual performance measures are High, Moderate, Low or Very Low.

See the TtW Performance Measures Methodology supporting documentsign-in required (sign-in required) for a detailed description of the methodology used for calculating Provider performance under each measure.

Module 1 – Education and Employment

This module captures Education and Employment Outcome Rates achieved across a Provider’s Caseload.

The performance measures for this module include:

• 1.1a 12 Week Employment Outcome Rate

• 1.1b 26 Week Employment Outcome Rate

• 1.2 Education Outcome Rate

The Employment Outcome measures track the rate at which Providers achieve 12 Week Employment Outcomes and 26 Week Employment Sustainability Outcomes (including Hybrid Outcomes) across their entire Caseload.

The Education Outcome measure tracks the rate at which Providers are achieving Education Outcomes across their entire Caseload.

Refer to the Vacancies and Outcomes Chapter for further information on Outcome requirements.

Table 25-A: Education and Employment Outcomes

Note: If a Participant achieves both a 12 and 26 Week Employment Outcome (including Hybrid Outcome) in the assessment period, both will be counted towards the relevant measure.

Note: If a Participant achieves multiple Education Outcomes in the assessment period, only one will be counted towards the measure.

Module 2 – Progress to Employment

This module assesses a Provider’s proactive support and engagement with Participants to help them successfully develop skills which increase their likelihood of achieving sustained Employment. This includes assisting Participants to identify, and learn to sufficiently manage or address, significant Vocational and Non-vocational Barriers which are impacting their ability to secure and maintain suitable Employment or reconnect with Education.

The performance measures for this module include:

• 2.1 Active Servicing Rate

• 2.2 Barriers with linked Activities

The Active Servicing Rate measure (2.1) focusses on Provider engagement with Participants. Participants in TtW are expected to participate for 25 hours per week and this measure ensures Providers are making the most of the time they have with each Participant on their Caseload.

Providers are considered to be actively servicing a Participant where each month:

• the Participant has attended at least one appointment with the Provider, and

• the Participant is engaging in at least one Activity (including Job Placement).

The barriers with linked Activities measure (2.2) is designed to assess whether a TtW Provider is supporting, motivating, and engaging their Participants to identify and work towards sufficiently addressing Vocational and Non-vocational Barriers they are experiencing.

Providers are expected to identify and record key individual barriers by entering these in the Capability Management Tool (CMT). If a Participant already has a barrier recorded, Providers are expected to discuss with the Participant whether the barrier is still current or should be closed. Providers must enter and link the associated Job Plan Activities to the identified barriers to demonstrate the Services or supports that are being sourced and made available to the Participant.

Note: The Department's expectations are that the key/most significant barriers for each Participant are captured in the CMT, and that Providers are not just recording more simple barriers that easily satisfy performance thresholds and can be managed quite quickly. Barriers that are no longer relevant or appropriate should be closed. If Providers do not use the measure in the spirit it is intended to operate, the Department reserves the right to change or alter these measures.

Table 25-B: Progress to Employment

Module 3 – Quality of Service

This module recognises the importance of Providers delivering high quality and flexible services to both Participants and Employers. It assesses the quality of Services provided compared to the expectations of Participants, Employers and the Department.

The performance measures for this module include:

• 3.1 Quality of Service - Participant

• 3.2 Quality of Service – Employer

Table 25-C: Quality of Service

Quality of Service performance measures assessment criteria

Using intelligence gathered about the on-the-ground service delivery of the Provider, the local labour market and services available in their region as well as data compiled by the Department, Provider Leads assess and rate Provider performance at the contract level for the above Quality of Services measures against the following 4 criteria:

• Supported - How the Provider engages with Participants and Employers to deliver high quality support and individualised services to them

• Connected - How the Provider connects with and leverages relationships with key local stakeholders and other community services and programs and uses labour market intelligence to the benefit of Participants and Employers. Consideration is also given to each Provider’s ability to upskill Participants in accordance with local labour market conditions

• Collaborative - How the Provider actively shares best practice and strategies for success with other TtW Providers and how they collaborate with a range of other relevant stakeholders to assist Participants and Employers

• Continuous Improvement - How the Provider adjusts their service delivery in response to feedback from Participants and Employers, the staff development practices available within the organisation and how the Provider responds to changes in the local labour market or in the face of environmental factors (such as COVID-19).

Module 4 - Efficiency of Service

This module measures Provider efficiency in attracting Volunteer Participants and Commencing Participants onto their Caseload, as well as the timeliness of those Commencements.

The performance measures for this module include:

• 4.1a Referral to Commencement Rate

• 4.1b Timeliness of Commencement

• 4.2 Ability to attract and Commence eligible Group Two Participants

The Commencement Rate and Timeliness measures work together to identify both the proportion of all Referrals that Commence in TtW, along with the timeliness of those Commencements for the majority of young people.

The Group Two Participant Commencement measure monitors Provider performance in actively finding and commencing eligible young people onto their Caseload.

Table 25-D: Efficiency of Service

Module 5 – Deed Compliance and Contract Management

This module assesses the Provider's compliance with the requirements set out in the TtW Deed, Guidelines, the Service Guarantee, Service Delivery Plans and Service Offer Commitments.

Provider compliance with the Service Guarantee, and the commitments made in their Service Delivery Plan and Tender response (Service Offer) is an integral part of the Framework. These commitments set out the service and support a Participant can expect from their Provider, as well as the Department's expectations of how Providers will interact with Participants and Employers.

The Department will monitor each Provider’s compliance with Deed requirements through ongoing contract management activities (including visits to Provider sites), regular and targeted assurance activities, and feedback received from Participants, Employers and relevant stakeholders, and through the department’s National Customer Service Line.

This module has one performance measure and will be based on the assessment of the results from Program Assurance Activities and Audits, and breaches recorded.

See the Supporting document – Service Delivery Plan – Provider Informationsign-in required (sign-in required) for more information.

Table 25-E: Deed Compliance and Contract Management

(Deed Reference(s): Clause 82)

Provider performance will be assessed against performance thresholds established for each performance measure, under each module, in the Framework. Further information, including thresholds for each performance measure, can be found in the TtW Performance Measures Methodology supporting documentsign-in required (sign-in required).

Performance under each module will be assessed as High, Moderate, Low or Very Low and combined at the module level based on the following rules:

Table 25-F: Module performance requirements

Where there is an even number of performance measures and a Provider has achieved an even split, of adjacent ratings at the performance measure level in a given Module the lowest rating will determine the final Module score, for example:

• two 'Moderate' and two 'High' = 'Moderate'

• two 'Moderate' and two 'Low' = 'Low'

• two 'Low' and two 'Very Low' = 'Very Low'

Where the Provider has achieved an even number of non-adjacent ratings at the performance measure level, the combination will be averaged at the whole of module level, for example:

• two ‘High’ and two ‘Low’ = ‘Moderate’ 

• two ‘Moderate’ and two ’Very Low’ = ‘Low’ 

At the completion of a performance assessment, Providers will be provided a Performance Report, and results will be discussed with Providers through formal performance feedback discussions/sessions at the interim and final performance reviews.

Providers are required to actively engage in the performance discussion by:

• reviewing performance assessment documentation provided by the Department to ensure they are prepared for the feedback discussion

• providing relevant documentation when requested by the Department

• engaging with Provider Leads on an ongoing basis

• undertaking other actions as required by the Department.

Individual Provider performance results will not be published, Providers will generally be advised how their performance compares to other Providers in the Performance Report and during performance feedback discussions. The Department will periodically publish aggregate results at a Program level, without identifying individual provider performance.

(Deed Reference(s): Clauses 27, Section B1.4)

The Department will work in partnership with the Provider to clarify and resolve any issue(s) that arise from the performance assessment to help improve the Provider's performance.

Action the Department may take, where necessary, to address poor Provider Performance include:

• requirement for the Provider to enter into a Performance Improvement Plan (PIP),

• reduction in the Provider's Locations and associated Places (for Very Low performance twice in a row for at least two of the five modules),

• recovery of Upfront Payments, and/or

• any other action under the terms of the Deed.

Where a Provider is failing to perform at an adequate level (i.e. their results are consistently Low or Very Low), they will be subject to performance management action as necessary. Depending on the circumstances, this could include the use of a Performance Improvement Plan (PIP).

Following either the interim or final (annual) performance report, a rating of Very Low (at the performance measure level) will lead to a PIP being implemented. Similarly, where a Provider has been rated as Low over two Performance Periods with no upward trajectory this will be treated as a Very Low result, and they will be placed on a PIP. PIPs will generally target the specific area of underperformance and may not be put in place at the whole of module level unless there is justification for doing so. If the Provider’s performance has not improved sufficiently after the completion of the PIP, remedial action may be taken in accordance with the Deed.

Where a Provider has demonstrated ongoing Very Low performance in two (or more) of the five modules more severe sanctions, such as reallocation of business or recovery of Upfront Payments, will be applied. Ongoing poor performance is categorised as 'Very Low' ratings at the module level over two consecutive Performance Periods.

Where more severe sanctions are required an appropriate sanction/s will be selected to align with the type of underperformance.

The Department will periodically initiate broader reviews of the Framework to ensure it is driving the overall policy intent of the model. Such reviews could result in the Department making changes to the Framework, such as adding, removing, or adjusting modules and/or measures as well as changing the thresholds for individual performance measures.