Manager categorisation

A number of organisations told us that the manager categories required to be submitted in their Workplace Profile did not always reflect the variety of roles in their corporate structure. To help better reflect the internal structure of your organisation and your managers, we have added some additional manager categories. The two new manager categories give you more options to better classify your managers and means the Agency is able to better understand the gender composition of leadership in Australian workplaces.

Understanding the new manager categories

The two new manager categories are Head of Business (HOB) and Key Management Personnel/Head of Business (KMP).

Head of Business (HOB) refers to:

  • the CEO or equivalent of a subsidiary organisation within your corporate group
  • an employee who has strategic control and direction over a substantial part of the business, but whose responsibilities do not extend across an entire corporate group, such as the head of a brand within a group. 

The Key Management Personnel/Head of Business category is designed for employees who meet the definition of both KMP and HOB. 

This category might be used for employees who are:

  • the head of a business line within a corporate structure, with responsibilities that extend across the entire structure, such as the Head of Retail Operations 
  • a KMP with strategic control and direction over a substantial part of the business, such as Head of Operations or Head of Logistics

This category would not be used for roles such as Head of Finance or Legal. These roles would likely fall into the KMP category. 

Your organisation is able to classify managers by ANZSCO categories, however this is not mandatory.  Including ANZSCO classifications will mean that the Agency is able to provide better benchmarking and statistical analysis of your data.   You are able to provide ANZSCO codes by major group  level up to the  4 digit unit group level (i.e. a Chief Financial Officer could be classified as ANZSCO #0001 for Managers, or ANZSCO #1322 for  Finance Managers). Even if you choose to classify your managers using the major group level (i.e. 1 digit), the Workplace Profile template requires 4 digits to be entered via the drop-down list. For example - to classify your managers using ANZSCO code #1, you should choose #0001 from the drop-down list.  

All manager categories

Managers need to be categorised against seven standardised categories:

  1. CEO
  2. Head of Business
  3. Key Management Personnel/Head of Business
  4. Key Management Personnel
  5. Other executives and general managers
  6. Senior managers
  7. Other managers

When categorising managers, please note:

  • you need to assign your managers against the category that best reflects the responsibilities of their role, not their formal/internal job titles
  • your organisation may not have managers in every category
  • a manager does not need to have people reporting to them. 

For corporate structures, you will need to choose whether to categorise your managers based on the entity where they work or their position in the overall corporate structure.  

Manager categories explained

Category 

Role 

CEO

Your CEO is the highest-ranked officer within your organisation or corporate structure. This includes an acting CEO. You may know them by a different title, such as:  

  • Managing Director  
  • Vice-Chancellor  
  • General Manager  
  • Managing Partner 
  • Principal. 

You should only have one CEO position in your entire organisation or corporate structure. For corporate structures, the CEO should be reported in the submission group containing the ultimate parent.

You do not need to provide remuneration data for your CEO. However, this is strongly encouraged to ensure a more accurate calculation of gender pay gaps.

Key Management Personnel (KMP) 

In line with Australian Accounting Standards Board AASB124, KMPs have the authority and responsibility for planning, directing and controlling the activities of an entity, directly or indirectly. This includes any director (executive or otherwise) of that entity.

A defining feature of KMPs is their influence is at the entity level. KMPs are likely to direct the strategic function of their section and are often functional heads, such as head of operations or head of finance. They represent at least one of the major function of an organisation and participate in organisation-wide decisions.

 For corporate groups, KMPs will have authority and responsibility across the entire structure.

You will be required to provide remuneration data for your KMPs.

Head of Business (HOB)

Head of Business is a new category.  It refers to:

  • the CEO or equivalent of a subsidiary organisation within your corporate group
  • an employee who has strategic control and direction over a substantial part of the business, but whose responsibilities do not extend across an entire corporate group, such as the head of a brand within a group. 

You do not need to provide remuneration data for Heads of Business, if they are also a CEO or equivalent of a subsidiary organisation. However, this is strongly encouraged to ensure a more accurate calculation of your gender pay gaps.

KMP/HOB

This is a new category designed for employees who meet the definition of both KMP and HOB. 

This category might be used for employees who are:

  • the head of a business line within a corporate structure, with responsibilities that extend across the entire structure, such as the Head of Retail Operations 
  • a KMP with strategic control and direction over a substantial part of the business, such as Head of Operations or Head of Logistics

This category would not be used for roles such as Head of Finance or Legal. These roles would likely fall into the KMP category. 

You do not need to provide remuneration data for KMP/HOBs if they are also a CEO or equivalent of a subsidiary organisation. However, this is strongly encouraged to ensure a more accurate calculation of your gender pay gaps.

Other executives and general managers 

Other executives and general managers are responsible for a department or business unit within an entity. In large organisations, they may not take part in organisation-wide decisions with the CEO. Alternatively, they may take part in those decisions to share expertise or develop projects, but not have the entity-level or corporate group authority that would make them a KMP. 

You will be required to provide remuneration data.

Senior managers 

Senior managers are responsible for one or more functions, departments or outcomes for an entity. They are more likely to take part in both the strategic and operational sides of management, including resourcing, budget and assets (capital expenditure). Some of their decisions need approval from a higher-level manager. 

You will be required to provide remuneration data.

Other managers 

Other managers are responsible for operational functions. They oversee day-to-day work, following and enforcing their entity’s defined parameters. They may be responsible for strategies, policies and plans to meet business needs for their areas of work. They often manage time, financial and other resources, and assets such as facilities or IT infrastructure. They may also coordinate different functions or people. Line managers belong to this category, but supervisors do not. 

You will be required to provide remuneration data.

 

Example of a corporate structure

This image depicts an example of a hierarchical structure of a corporate structure, in reference to the new manager categories required in the Workplace Profile.

 

 

 

 

 

 

 

 

 

 

 

 

 

In this example, each of the roles would fit into the manager categories as follows: 

  • CEO, Parent Company – this manager should be categorised as a CEO 

  • Head of Banking, Parent Company – this manager should be categorised as a KMP/HOB (this employee is the head of a business line within the corporate structure, with responsibilities that extend across the entire structure. They also have strategic control and direction over a substantial part of the business as the Head of Banking).   

  • Chief Financial Officer, Parent Company – this manager should be categorised as a KMP (this employee directs the strategic function of their section and is a functional head). 

  • CEO - Subsidiary 1 and Head of Retail, Parent Company – this manager should be categorised as a KMP/HOB (this employee is the head of a business line within the corporate structure, with responsibilities that extend across the entire structure. They also have strategic control and direction over a substantial part of the business). 

  • CEO, Subsidiary 2 – this manager should be categorised as a HOB (as the CEO of subsidiary 2, this employee can be classified as a Head of Business). 

  • Head of Retail, Subsidiary 1 – this manager should be categorised as Other executives and managers (Other executives and general managers are responsible for a department or business unit within an entity). 

  • Chief Financial Officer, Subsidiary 1 – this manager should be categorised as Other executives and managers (Other executives and general managers are responsible for a department or business unit within an entity). 

  • Chief HR Officer, Subsidiary 2 – this manager should be categorised as Other executives and managers (Other executives and general managers are responsible for a department or business unit within an entity). 

  • GM Corporate Affairs, Subsidiary 2 – this manager should be categorised as Other executives and managers (Other executives and general managers are responsible for a department or business unit within an entity).