Engaging Our Employees
Along with our customers, employees are IPL’s most influential and important stakeholders. Studies have shown that highly engaged employees perform up to 20% better and are 87% less likely to leave an organisation than employees with low levels of engagement. Engaging our employees is therefore essential in order to meet our customer needs, live our Company Values and achieve our business objectives.
Business Excellence (BEx) is Incitec Pivot’s Business System through which a culture of continuous improvement is being built. BEx engages our employees by involving them directly in the design of streamlined processes and activities, and in the implementation and sharing of 'best practice' in their own work areas. Through BEx Leadership, employees at all levels of our business are encouraged to think laterally, to share their experiences and ideas, and to participate in implementing improvements, resulting in outcomes which are highly valued by both the business and our employees. Employee recognition is fostered through activities such as our quarterly MD&CEO Values Award program, introduced in January 2014. The program recognises employees from all parts of our global operations for demonstrating positive cultural behaviours, aligned with our Values and business priorities. Over the year, 97 Values Awards were awarded globally to individual employees and teams through our recognition programs.
We undertake benchmarking of employee turnover rates for the Global Manufacturing and Oil & Gas/Mining/Energy industries, as well as by Executive job level and by total workforce. We use voluntary turnover rates as one indicator of employee engagement and, along with exit interview data, use this information to inform our talent and engagement practices. Turnover rates within the company have been tallied at a Group level, with the exception of our Papua New Guinea and Hong Kong operations. Statistics from these regions have not been included when determining the average turnover rates provided in the table. Voluntary employee turnover rates have fallen across all age groups and regions in 2016, with the exception of the Asia Pacific region. This is likely to be due to current labour market trends and the impact of the restructure of our organisation and workforce during 2016.
Organisational climate surveys are well established as an effective tool for human resources management. Surveys were conducted at some company sites last year with a planned rolling two year cycle, and were primarily used to assess, track and inform future strategies regarding employee mindset and management of change. The surveys also allowed our employees to engage with us on a number of other critical factors including teamwork, communication, effectiveness of leadership and employee satisfaction. In response to the survey results, changes were made during 2016 to facilitate increased two way communication throughout the company, including a strategic increase in the frequency and reach of business strategy & performance updates and more regular collaboration forums.
During 2016 we also built on our climate survey results through strategic leadership coaching. Leadership coaching is when the leaders in an organisation incorporate a coaching approach into their leadership style. In addition to facilitating a more direct and engaged monitoring of the culture across our business, research indicates that a leader's style has as much as a 70% impact on the climate within the organisation.
A leader who encourages and nurtures a coaching culture also reaps the benefits of a skilled, enthusiastic and committed workforce by unlocking each person's potential to maximise their own performance. Read about how Coaching as Leadership also increases the long term value and returns associated with training under Learning and Development.
We also developed social return on investment (SROI) metrics during 2016, which will help us communicate our values and our social contribution to the global communities in which we operate. Communicating these values to employees has been shown to increase both employee engagement and retention and these metrics will be built into the IPL employee value proposition.
Read more about our SROI metrics under Attracting and Developing Talent.