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An online-only recruitment model used for the first time by the public sector last year "did not always meet the key objective of selecting the most meritorious candidates", an investigation has found.

The Merit Protection Commission's latest annual report says its review process is designed to assure Australian Public Service employees that "merit forms the basis of APS promotions, and to prevent nepotism and cronyism".

But this year the scheme detected "unintentional issues" with the application of the merit principle in a newly designed selection processes, according to Merit Protection Commissioner Linda Waugh...