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, 122 Values Awards were awarded globally to individual employees and teams through our recognition programs.
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 our BEx aligned Leader as Coach program also increases the long term value and returns associated with training under Learning and Development.
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 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 in the under 30 age group, and remained consistent in most geographical regions with the exception of Europe. 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. Both surveys and spot ‘health checks’ have been conducted across various IPL sites since 2015, and are 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 have been made to facilitate increased two way communication throughout the company, including an increase in the frequency and reach of business strategy & performance updates and more regular collaboration forums.
During 2018 all IPL Group employees will have the opportunity to participate in an employee engagement survey relating to improving our workplaces and our employees’ everyday experience of work at IPL. Using a world class model, the results of the engagement survey will be benchmarked against global data and will be used to develop high level strategy planning, team based reports and individual action plans for leaders.
We also developed social return on investment (SROI) metrics last year, which are helping us communicate to our employees about 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. Read more about our SROI metrics under Social Return on Investments Metrics.