PACP Committee Report

Government Response to the Eleventh Report of the Standing Committee on Public Accounts

Chapter 2 of the May 2006 Report of the Auditor General of Canada on National Defence — Military Recruiting and Retention

Hon. Shawn Murphy
Chairman
Standing Committee on Public Accounts
House of Commons
Ottawa, Ontario  K1A 0A6

Dear Mr. Murphy:

Pursuant to Standing Order 109 of the House of the Commons, and on behalf of the Government of Canada, I am pleased to enclose the Government Response to the recommendations contained in the Standing Committee’s 11th Report based on Chapter Two of the May 2006 Report of the Auditor General of Canada (National Defence — Military Recruiting and Retention).

Your Committee’s 11th Report provided the Department of National Defence (DND) with an opportunity to update Parliament on its progress in improving its recruiting and retention strategies so as to meet the Government’s goals for force expansion and transformation. The Response underscores DND’s commitment to better understand and address the challenges involved in recruiting and retention in a timely and effective manner, and to keep Parliament informed of its progress in doing so. It also provides information on many of the actions that National Defence and the Canadian Forces have already taken to address specific areas of concern, including application processing times, effective advertising and the so-called ‘force reduction bubble’.

We would like to thank you and the other Members of your Committee for providing us with your views and advice on how we may accelerate progress towards our goal of expanding the Canadian Forces into a multi-role, combat-capable force that better connects with Canadian society.

Sincerely,

The Honourable Gordon J. O’Connor, PC, MP

Introduction

Introduction The Government of Canada has carefully considered the Eleventh Report of the Standing Committee on Public Accounts with respect to Chapter Two of the May 2006 Report of the Auditor General on the Department of National Defence’s progress in improving military recruiting and retention since 2002. The Government has taken note of the twelve recommendations contained in the Standing Committee’s Report.

The Government is committed to rebuilding and transforming the Canadian Forces into a multi-role, combat-capable defence force that is able to effectively defend Canada’s interests both at home and abroad. To this end, the Government has announced plans to expand the Canadian Forces.

The Department of National Defence (DND) and the Canadian Forces (CF) recognize that realizing this goal of force expansion requires a fundamental change of approach to recruiting and retention. The CF must address not only the effects of the planned force reduction in the 1990s, which has left a shortage of personnel in the middle ranks (referred to as the ‘force reduction bubble’), but also the challenges of attracting talent in a highly competitive labour market and of remaining representative of an increasingly diverse population.

To this end, the Canadian Forces have developed a new recruiting strategy that places recruiting at the heart of the CF mission and recognizes it as a crucial factor in the CF’s success. The strategy focuses on the creative and aggressive pursuit of five objectives: effective communication with Canadians, an efficient and effective recruiting process, a demographic composition more reflective of Canadian society, the enrollment of committed individuals in the right occupations to aid retention, and the promotion of the CF as an employer of choice. DND and the CF have already introduced a number of programs and initiatives that work towards these objectives, many of which are detailed in the responses below. While it is too early to provide performance measurements for many of these programs, early indications are that they are meeting with success.

The Department of National Defence is committed to ensuring that its recruiting and retention strategies are able to satisfy the demands of the Government’s vision for the Canadian Forces. The Government will continue to closely monitor, and keep Parliament informed of, National Defence’s progress in improving recruiting and retention, and seek effective solutions to outstanding problems.

The Response

This Response provides a concise overview of the Government’s position with respect to each recommendation. It also provides information on the plans and initiatives already in place with respect to improving military recruiting and retention to meet the Government’s force expansion targets and to ensure that the Canadian Forces remain a representative institution of Canadian society.

Detailed Responses to the Recommendations

Recommendation 1

That the Department of National Defence develop a detailed action plan for the implementation of the recommendations made by the Auditor General in chapter 2 of her May 2006 Status Report. The steps in this plan must be clearly linked to each recommendation, include implementation dates and performance indicators, and be tabled with the Committee by 31 March 2007.

Response

The Government has already commenced work on implementing the recommendations made by the Auditor General in Chapter 2 of her May 2006 Status Report, and detailed action plans for each of the five recommendations in the Auditor General’s report will be tabled with the Committee by 31 March 2007. For example, the Canadian Forces have developed a comprehensive national recruiting campaign, supported by a national recruiting attraction plan and new recruiting advertisements, in response to the Auditor General’s recommendation to review the processes used to attract applicants. In addition, the Canadian Forces Recruiting Group has taken action to decrease the time from application to enrolment in the Canadian Forces by streamlining application processes related to medical and security screening, and introducing performance standards for recruiting centres.

Recommendation 2

That the Department of National Defence report progress in the implementation of its action plan to strengthen the recruitment and retention of military personnel in its annual Departmental Performance Report, beginning with the Report for the period ending 31 March 2007. The Department should also report progress in implementing its national recruiting attractions plan as well as its strategic guidance on national recruiting. In making this information available to Parliament, the Department must make clear reference to the outcomes that are being achieved.

Response

The Department of National Defence will ensure that the information identified in this recommendation is included in its annual Departmental Performance Report beginning with the report for the period ending 31 March 2007.

Recommendation 3

That the Department of National Defence establish a formal commitment to process applications for membership in the Canadian Armed Forces within thirty days, ensure that all applicants are made aware of that commitment and report its progress in meeting those goals in its annual Departmental Performance Report.

Response

The Department of National Defence is committed to improving the application process leading to enrolment in the Canadian Forces, with a goal of processing most applications within 30 days after an offer of employment has been accepted. Owing to the complexity of certain applicants with respect to their medical and security status, achieving a 30-day turn-around for all applications is not an achievable goal.

In October 2006, the Canadian Forces Recruiting Group implemented changes to applicant processing to support the Canadian Forces’ goal of making job offers within five days to 30% of all applicants called in for processing. An additional 40% of applicants would be processed within 30 days. These changes were designed to streamline the process and included initiatives such as eliminating the physical fitness test from the selection process, authorizing recruiting centres to make real-time job offers, and advancing the initial security checks to the front end of the application process. Although it is too early to provide validated statistical data regarding the effectiveness of the recent process changes, early anecdotal evidence suggests that the initiatives are being well received by applicants and have significantly contributed to reducing processing time. Additional enhancements, such as extending the hours of recruiting centres and contracting out the process of conducting reference and education verifications, are currently under consideration with the intent of increasing the percentage of applicants processed within the 30-day time frame.

Attainment of this goal is predicated on the linkages established between the scheduling of appointments convenient for the applicant, the availability of job openings, and the applicant’s medical fitness. For example, in cases where an applicant requires a consultation from a civilian specialist physician, there may be a delay in obtaining an appointment with the physician. As a result, it is beyond the control of DND to process all applicants within 30 days.

In order to improve communication and to better manage applicant expectations, a customer-service approach has been implemented at all CF Recruiting Centres. Applicants can expect to receive detailed feedback on the status of their application, as well as any expected delays, early on in the application process. Using this approach, applicants can expect to be either called in for processing if their preferred occupation has job openings, counseled on other opportunities should their desired occupation(s) not be available, or counseled on the potential waiting period should the available job openings not be appealing.

The Government will continue to explore additional opportunities to streamline applicant processing and is progressing with the development of a robust performance measurement system based on the Treasury Board framework for service standards. Progress in meeting the goals identified above will be included in the annual Departmental Performance Report for the Department of National Defence, beginning with the report for the period ending 31 March 2007.

Recommendation 4

The Department of National Defence develop a policy to guide its efforts to attract recruits from specifically identified groups. This policy must include a clear accountability framework for achieving results and be completed and begin implementation by 1 April 2007.

Response

The Government agrees with the recommendation from the Committee that a clear policy and an accountability framework are required to guide efforts to attract women, Aboriginal people and visible minorities towards a career in the Canadian Forces. The Department of National Defence confirms that a policy and an accountability framework have been developed and were incorporated into the Canadian Forces Employment Equity Plan, which was approved by the Department on 1 December 2006. Details of the policy and accountability framework are described below.

The Canadian Forces policy for recruiting from the designated groups is articulated in the Canadian Forces Employment Equity Plan, which states: “In order to take full advantage of the ethno-cultural diversity of Canada’s population, the aim of the Canadian Forces is to have an inclusive workforce, representative of Canadian society. Diversity remains a source of strength and creativity, and continues to play a pivotal role in making the Canadian Forces a modern, forward-looking organization.” To support its recruiting and retention efforts, the Government is doing more to reach out to a broader cross-section of Canadian society, leading to greater diversity within the Canadian Forces. In fact, one of the key Corporate Priorities for Defence is to “advance leadership through the promotion of diversity and inclusiveness in the workforce.”

A key aspect of the Canadian Forces Employment Equity Plan is the commitment to improve representation. This involves taking a more systematic approach to recruiting and addressing specific issues regarding the propensity for women, Aboriginal people and visible minorities to join the Canadian Forces in general, and the combat arms occupations specifically. There is a commitment to proactively reach out to the communities representing these designated groups, particularly as concerns Aboriginal people and visible minorities, using personnel who have knowledge and understanding of those communities. Advertising and personal contact will be balanced and will provide those interested in joining the Canadian Forces with straightforward career options and a clear depiction of the realities of service life.

Specifically, the policy requires the Canadian Forces to:

• Ensure that all recruiting activities and materials (documents, presentations, web sites), as well as counseling and advice offered to prospective recruits, provide a realistic picture of life in the Canadian Forces. For example, there must be information regarding postings, deployments, and the military lifestyle;
• Ensure that external communications always present content and images that reflect a diverse organization;
• Raise awareness regarding the extensive work already done with respect to cultural and religious accommodations in the Canadian Forces;
• Update employment equity websites to include current plans, initiatives and highlights of employment equity in the Canadian Forces;
• Take a more systematic approach to outreach for Aboriginal people, women and visible minorities to raise the profile of the Canadian Forces among these groups;
• Develop and foster relations between Canadian Forces Bases/Wings and local communities representing the designated groups;
• Develop and implement a strategy that raises the enrolment of designated group members at Royal Military College;
• Develop and implement a strategy that raises the enrolment of designated group members as direct entry officers;
• Increase the representation of designated group members at Canadian Forces Recruiting Centres;
• Promote and encourage self-identification through census initiatives; and
• Aggressively pursue current initiatives to streamline the security clearance process and its timelines. Alternatively, establish a risk management regime regarding security clearances that will permit timely enrolment of affected designated group members.

An accountability framework has also been developed that identifies the specific organization(s) responsible for implementing and monitoring the employment equity plan. It provides the necessary tools required to monitor results and the time frame to achieve success for each initiative.

All of these efforts are part of the overall Canadian Forces Recruiting Strategy and form a key part of the “Connecting with Canadians” Campaign Plan, which was launched in February 2006, and aims to increase public visibility and awareness of the Canadian Forces through a broad range of community-based activities, including at major events such as the Calgary Stampede and the Grey Cup. Examples of specific initiatives to attract and recruit members of the designated groups include the Recruiter for a Day program, whereby serving CF members from the designated groups volunteer to assist recruiters to better connect with the segments of the population that they represent, and opening recruiting centres in cities with large visible minority populations, such as Toronto, Vancouver, and Halifax. In addition, there are a number of Aboriginal programs such as “Bold Eagle” and “Raven” aimed at attracting Aboriginal people. These programs provide Aboriginal people demonstrating an interest in the Canadian Forces with the opportunity to attend a six-week introductory program on the army (Bold Eagle) and navy (Raven) environments, exposing them to various aspects of the Canadian Forces lifestyle prior to making a decision to enroll.

The Government is committed to enhancing its efforts to attract women, Aboriginals, and visible minorities for service in the Canadian Forces and has already met the 1 April 2007 start date for implementation recommended by the Committee.

Recommendation 5

That the Department of National Defence record and evaluate the results of its advertising activities, report the results in its annual Departmental Performance Reports beginning with the Report for the period ending 31 March 2007, and make the appropriate changes to its advertising campaign and related expenditures.

Response

The Government is committed to evaluating the results of its new television advertising campaign dedicated to recruiting, and will institute appropriate changes as required. The Government also agrees to report the results of its current advertising campaign in the Department of National Defence annual Departmental Performance Report, beginning with the Report for the period ending 31 March 2007.

Since the launch of the “Fight with the Canadian Forces” advertising campaign in October 2006, the number of applications has increased by 25% as compared to the corresponding months over the past three years. Perhaps more revealing, yet less dramatic, is a modest increase (4%) in the number of applicants reporting that they were influenced to make an application to the Canadian Forces as a result of watching the advertisements on television. There are of course many factors contributing to the recent increase in the interest from Canadians wanting to join the Canadian Forces, including the high profile coverage of the Afghanistan mission. As part of its evaluation, the Government will identify and analyze all factors related to recruiting in order to leverage them for future success. The Government will utilize the remaining time in the current fiscal year to assess the true impact that the new advertising campaign is having on attracting more Canadians to join the Canadian Forces.

Recommendation 6

The Department of National Defence confirm that all of its recruiting offices have the capacity to deal with potential recruits in the official language of their choice and, where it finds gaps, take immediate corrective action.

Response

The Government confirms that all Canadian Forces Recruiting Centres and detachments have the capacity to process applicants in both official languages. To further improve the delivery of recruiting services, the Canadian Forces Recruiting Group has established a national call centre with services available in both official languages.

Recommendation 7

That, in the surveys it conducts among those leaving the Canadian Forces, the Department of National Defence include questions designed to determine whether language issues or problems linked to the availability of first language educational facilities are factors in decisions taken to leave the Forces before full service is completed. Immediate corrective action should be taken depending on survey results.

Response

The Government accepts the Committee’s recommendation to address language issues in the Canadian Forces exit survey. The current exit surveys do not include specific questions pertaining to language issues, but do include open-ended questions that are structured so as to allow respondents to raise any issues, including language issues, that may have contributed to their decision to leave the Forces. However, to ensure that language issues are specifically addressed, the Government will add the following three questions to the Canadian Forces exit survey:

• The following two questions will be added to SECTION D of the survey:

  STEP 1, INDICATE YOUR DEGREE OF AGREEMENT WITH EACH STATEMENT.
  STEP 2, INDICATE HOW THIS IS INFLUENCING YOUR DECISION TO LEAVE THE CANADIAN FORCES.

  1. The CF’s Official Languages Program and policies were a source of dissatisfaction during my career.

     [ ]  Strongly Disagree
     [ ]  Disagree
     [ ]  Somewhat Disagree
     [ ]  Somewhat Agree
     [ ]  Agree
     [ ]  Completely Agree

     [ ]  Extremely influential
     [ ]  Very influential
     [ ]  Moderately influential
     [ ]  Only slightly influential
     [ ]  Not at all influential

  2. If your answer is in the agreement range of the scale, please specify the specific aspects of the program and policies with which you are or were dissatisfied.

     ___________________________________________________________________________________
     ___________________________________________________________________________________
     ___________________________________________________________________________________

• The following question will be added to SECTION E of the survey (demographic information):
  3. What is your preferred Official Language of work?

These questions have been designed to elicit a complete and honest response on Canadian Forces official language policies and programs, without leading the response and without targeting the concerns of only one official language group. Question 2 will allow respondents to address a wide range of language-related issues, including both insufficient opportunities for second language training, and a lack of services in their preferred official language. Question 3 is designed to reflect the official language preference of the respondent.

A comprehensive analysis of the exit survey data will occur in the fall of 2007 when the sample size for the analysis is large enough to provide statistically significant results. The Government confirms that immediate corrective action will be initiated where indicated, including with respect to language-related concerns. This exit survey analysis process will be repeated on an annual basis.

Recommendation 8

The Department of National Defence determine the rate of attrition for female members of the Canadian Forces and, in its exit surveys, seek to establish which factors prompt female members to leave the Forces before full service is completed. The results, along with corrective measures taken to encourage women to complete their full service should be reported in the Department’s annual Performance Reports, beginning with the Report for the period ending 31 March 2008.

Response

Statistics from the Department of National Defence indicate that over the past 20 years, the average rate of attrition from the Canadian Forces has ranged from 5% to 8% annually. The attrition rate for women used to be higher than for men; however, over the past five years, the total attrition rate across the Canadian Forces has been equal for women and men at around 6.2%. As a result, differences in the attrition rates by gender for a given year are now random rather than systemic.

The actual attrition rate for female members of the Canadian Forces over the past five years is as follows:

Table 1: Female Attrition Rate from the CF

Year	Officers	Non-commissioned members
2001	4.76%	6.87%
2002	6.18%	6.79%
2003	6.08%	6.64%
2004	5.90%	5.76%
2005	5.85%	6.48%
2006	4.89%	7.64%

Of note, the results of a survey released by the Department of National Defence in December 2006 indicated that women do not report having greater intentions of leaving the Canadian Forces than men, and if anything, may have slightly lower intentions of leaving.

The Government confirms that the exit survey currently conducted by the Department of National Defence allows responses to be separated by gender. A comprehensive survey analysis that will be conducted in the fall of 2007 will allow the Government to better understand the reasons female members of the Canadian Forces decide to leave the military. Should trends be identified that indicate a need for change, the Government will initiate appropriate corrective measures. The results of this survey analysis, together with any corrective measures undertaken, will be reported in the Departmental Performance Reports, beginning with the report for the period ending 31 March 2008.

Recommendation 9

The Department of National Defence begin to report the results of the exit surveys it conducts among members of the Canadian Forces in its Departmental Performance Reports beginning with the Report for the period ending 31 March 2007. References to the methodology and scope of the surveys should be included.

Response

The Department of National Defence will ensure that the information identified in this recommendation is included in its annual Departmental Performance Report. However, since the comprehensive analysis of survey results will not commence until the fall of 2007, the reporting of these results can only begin with the report for the period ending 31 March 2008.

Recommendation 10

That the Department of National Defence establish a target for the maximum acceptable rate of attrition of its trained effective strength and monitor the performance of the package of measures it has instituted to meet that target. The Department should begin to report its progress in its annual Departmental Performance Report beginning with the report ending 31 March 2007.

Response

The Department of National Defence considers attrition to be an important element of force renewal. Indeed, some level of attrition is essential to ensuring the continuous development of officers and non-commissioned members. Historical experience would indicate that, excluding specific interventions such as the downsizing of the Canadian Forces during the 1990s, a long-term average attrition of 6-8% is needed to establish the balance between maintaining the effective strength of the Canadian Forces and ensuring force renewal.

However, experience shows that identifying an aggregate maximum acceptable attrition rate is not a productive undertaking, given the fact that the maximum acceptable attrition varies according to the context. For example, any amount of unexpected attrition in an under-strength or very small occupation will be problematic. As well, keeping in mind that training requirements from enrolment to being fully deployable can vary from 18 months to seven years depending on the occupation, unexpected attrition in occupations having extended training and experience requirements will have greater impact than would the same attrition in an occupation having a short training and work up period.

In lieu of setting a specific aggregate attrition target, the Department of National Defence uses specific indicators designed to permit early identification of negative trends, and to ensure that appropriate interventions are undertaken in a timely manner. For example, the Canadian Forces designates occupations as green, amber or red depending on the number of unfilled positions in the specified occupation. A red occupation is one having a trained effective strength that is 10% or more below the preferred manning level and will take at least two years to recover even with concentrated effort, whereas an amber occupation is 5-9% below trained effective strength. This system of classification provides an overview of the health of all occupations and the Canadian Forces as a whole.

In addition, the Canadian Forces conduct trend analysis for each occupation that includes year-by-year comparisons, identification of abnormal trends, demographic analysis, and comparisons with other nations. When a negative trend appears that can be attributed to attrition, reviews are conducted to better understand the causality. This may include the initiation of more focused surveys that identify problem areas and assist in the development of corrective measures and methods to monitor the performance of the corrective measures.

The Government will include data regarding attrition rates in the Department of National Defence annual Departmental Performance Report beginning with the report ending 31 March 2007. However, the data will be based on trend analysis as opposed to pre-determined targets.

Recommendation 11

The Department of National Defence take all appropriate measures needed to compensate for the effects of the force reduction bubble, including recruitment of individuals already possessing the skills needed to fill key positions and accelerating the promotion of qualified individuals already serving in the Canadian Forces to fill vacant positions.

Response

The Government confirms that the Department of National Defence has recently instituted measures to compensate for the effects of the force reduction bubble. Examples of the initiatives already in place include the following:

• Trained members of the Primary Reserve, who are committed to undertaking duty and training even when not on active service, are being encouraged to transfer to the Regular Force;
• A special transfer arrangement for Primary Reservists returning from Afghanistan has been established. Offers for direct and expedited transfer are presented so that Reservists need only say yes or no, thus eliminating much of the delay associated with administrative processing;
• Letters to former members of the Canadian Forces who have retired over the past few years and to members of the Supplementary Reserve, who are not required to perform duty or training except when on active service, are being prepared to solicit their return to active service;
• DND is working with Citizenship and Immigration Canada to determine how the immigration system might be used to help increase enrollment into the Canadian Forces, particularly in occupations where there are significant gaps; and
• A process of identifying high performers early on in their career has been developed so that specific mentoring, training and succession planning will prepare them for early promotion to higher rank.

Recommendation 12

The Department of National Defence take immediate steps to consolidate and strengthen its human-resources management information system based on a detailed action plan that includes a target implementation date. The Department should provide the Committee with a copy of this plan no later than 1 April 2007.

Response

The Department acknowledges the Committee’s findings and concurs with the recommendation to strengthen its human resources information management capability. Within the Department, the Assistant Deputy Minister (Information Management) is currently leading two significant initiatives that will see the rationalization and integration of a number of important information systems in order to ensure adequate and robust information.

The first initiative is the Rationalization of Applications, which will serve to identify which computer applications are redundant, thereby permitting the Department to ensure that there is no duplication of effort and that resources are well used. The second initiative being developed is the Defence Enterprise Resource Planning environment, which will see an increased integration of the various enterprise-wide systems currently in use, including the Financial Management and Accounting System and the Human Resources Management System.

In addition, the Department is seeking lessons learned from allied militaries that are also attempting to better integrate their internal systems. The integration and rationalization of information holdings is not unique to the Department of National Defence, but is also an issue under consideration by the Treasury Board Secretariat (Chief Information Officer Branch) on behalf of the Government of Canada as a whole.

The Department will not be in a position to provide the Committee with a copy of its action plan for the strengthening of the Department’s human-resources information management capability by 1 April 2007. The plan is currently in development and consultations within the Department are ongoing, and will not be completed within the Committee’s recommended timeline. The Department commits to providing the Committee with a copy of the action plan by July 2007, once it has been considered and approved by the internal governance committees.