![The Department of Defence implemented a moratorium on contracting former staff back into the department within 12 months of them leaving. Picture by Keegan Carroll The Department of Defence implemented a moratorium on contracting former staff back into the department within 12 months of them leaving. Picture by Keegan Carroll](/images/transform/v1/crop/frm/143258707/0b30e064-15ee-40e5-9a97-7acba569f0d5.jpg/r0_256_5000_3078_w1200_h678_fmax.jpg)
The surprising thing about the Defence Department's decision to ban contracting former staff within 12 months of their departure is that such a rule wasn't already in place.
Subscribe now for unlimited access.
or signup to continue reading
Non-compete clauses and similar stipulations are common in business and employment contracts.
In fact, the government is concerned that they are so widely used that they are hurting competitiveness in the economy.
The moratorium has been brought in as a step toward reducing Defence's heavy reliance on external expertise, which it spent $26 billion on last financial year.
But it is also a backhanded acknowledgement that departing staff have knowledge and skills that are valued and highly sought after by consulting firms.
This goes well beyond any particular technical or occupational qualifications a worker may have.
What consultants particularly prize is insider knowledge about department planning and strategy, how to navigate procurement processes and even what language to use on tender documents and the like.
Such information helps firms not only compete for current contracts but anticipate the likely scope and scale of future demand for expertise, and to gear up accordingly.
With so much money up for grabs, it is hardly surprising that consultants are keen to poach public servants.
It is also making it harder for departments to hang on to staff - something for the Australian Public Service Commission to consider as it negotiates the next APS wage offer.
READ MORE:
But, unable to compete with the lucrative salaries of the private sector, the Public Service Commission and government will need to think more broadly about stemming the flow of public servants.
Government agencies have scrambled to reform policies around their use of external labour in the wake of the PricewaterhouseCoopers scandal, a parliamentary inquiry into consultants, and intensified media scrutiny.
But they will need to shift gears from reactive to proactive to enact lasting change.
The Albanese government, committed to reforming the public service, does not have the resources to replace every external labour role in an instant.
A gift of 10,000 additional APS roles in the May budget was a one-off, a spokesperson for Public Service Minister Katy Gallagher said at the time, aptly adding: "Now that we have provided departments with the resources, they need to do their job."
As Defence works towards a goal of slashing 2000 contractors by the end of 2024, it will need to find a way to mend capability gaps which have long been plugged by external labour.
Unable to offer the same alluring perks of the private sector, Defence and the government as a whole will need to convince talent to stay with meaningful work, and ample opportunities for career growth.
Addressing those capability gaps will also be crucial to ensure department officials do not lean too heavily on fairly generous exemptions to the moratorium for compassionate, commercial and capability reasons.
We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.