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Business Value Driver

People

The competencies, experiences, behaviours, engagement and wellbeing
of AGL’s people.

It is important that AGL has a strong and effective workforce to deal with the complexities that our industry faces. We believe that progress is powered by our people, and attracting, developing and retaining the right people will enable us to build a safe, purpose driven, and values led culture that delivers progress for our customers and stakeholders.

We recognise that having an engaged workforce is critical for AGL to deliver value, and we are proud that AGL's employee engagement score improved by five percentage points to 73% in FY20. While there is still more to do, the steady improvement over the past two years is proof that the actions we’ve taken are making a difference.

During FY20 we made significant progress in anchoring our culture in our purpose and values through aligned and integrated people programs including a targeted values activation campaign along with embedding our values in approaches to recruitment, performance, talent and leadership development.

We continue to prioritise the engagement of our people with continued focus on two specific areas – keeping our employee promise and making it safe to speak up. In FY20 we provided a suite of development programs focused on strengthening trust and connection. In FY20, we also developed our People Promise, which highlights the unique experience that differentiates AGL as an employer across five key dimensions (as set out below).

We know inclusion is an essential ingredient that unlocks diversity of thinking - helping us to innovate, problem solve and deliver for our customers and communities. Our Diversity and Inclusion Strategy is focused on six key dimensions: gender; LGBTI+ inclusion; families and careers; family and domestic violence; disability; and cultural identity. We have active employee network groups supporting the strategy including dedicated groups to focus on the specific needs and priorities of our operational sites. We were proud to be named a Gold Employer at the 2020 Australian LGBTQ Inclusion Awards.

To meet the needs of our customers and thrive in a changing market, we need to continue to evolve our approach to developing our people. FY20 saw the formation of a central Learning and Development capability to drive focus on personal and professional growth in support of the achievement of organisational goals.

The safety of our people is our first priority. Our Target Zero strategy, which starts with the belief that all incidents are preventable, focuses on three pillars: visible leadership, fundamental risk management and simplified systems. During FY20, we rolled out a new digital Critical Control Checks app to help our leaders report insights that we can use to develop more targeted injury prevention programs. The Safe System of Work framework was also implemented across our operating fleet and is starting to deliver improved safety outcomes.

We are committed to ensuring our corporate governance framework, policies and practices reflect a high standard of ethical behaviour and accountability. During FY20 we updated the AGL Code of Conduct to drive behaviours aligned with AGL’s values. We also developed a new Human Rights Policy with the purpose of ensuring that our people and business partners operate in a way that respects, upholds and contributes to the realisation of human rights through our operations, business relationships and supply chains.

4,167Number of employees
(headcount)

3,988Number of employees
(FTE)

73%Employee engagement
score

Creating value

Safety and wellbeing

TIFR for employees and contractors decreased from 3.6 to 3.3, however we recognise that there is still more to do to drive our safety performance to zero injuries. While the total number of reportable incidents has increased, the majority of TIFR injuries were of low or moderate severity. Key contributing factors to injuries sustained included inadequate identification and control of hazards, mind on task/distraction issues, and incorrect techniques and work methods used for routine tasks. Contractor performance has improved due to increased focus across our operations and the utilisation of the Contractor Management Framework. Employee mental health has been a key focus in FY20, in particular during the peak of the bushfires and COVID-19 pandemic restrictions. We provided additional support to our Army Reserve members and volunteer firefighters, digitised our Better Mental Health programs to ensure employees had access to these programs during isolation and held COVID-19 specific webinars with an organisational psychologist to raise awareness of better mental health and wellbeing strategies.

KPI

FY20

FY19

FY18

FY17

FY16

Target

TIFR employees

2.6

2.1

1.2

2.0

4.3

-

TIFR (employees + contractors)

3.3

3.6

2.4

3.1

6.2

FY21: ≤ 3.4, always aiming for zero injuries

Fatalities (employees + contractors)

0

0

0

0

0

FY21: 0

High potential near miss: recordable incident ratio

0.9:1

0.9:1

Not reported

Not reported

Not reported

FY21: ≥ 0.9:1

Culture and values

AGL achieved a five percentage point improvement in employee engagement over FY20, driven by delivering on our People Promise through investment in growth and development, striving to ensure our values are lived and not just stated, and strengthening trust and connection to enable our people to feel safe to speak up and contribute to AGL’s future success. AGL has a clear aspiration for the proportion of females in AGL's senior leadership pipeline (SLP) to reach 50%, however this has remained at 38%, consistent with FY19. A significant proportion of the workforce at AGL is weighted to traditionally male-dominated vocations, more specifically the very stable workforce in our operational sites. AGL acknowledges that a 50/50 split for our overall SLP will take longer than three years to achieve.

KPI

FY20

FY19

FY18

FY17

FY16

Target

Employee engagement

73%

68%

Not measured1

Not measured

70%

FY21: ≥ 73%

Gender mix in SLP (% female)

38%

38%

42%

38%

34%

FY23: Meet gender diversity objectives outlined in AGL’s Corporate Governance Statement

Material breaches of Code of Conduct

0

0

Not reported

Not reported

Not reported

FY21: 0

  1. 1 No engagement survey was undertaken in FY18, however an engagement pulse survey was undertaken in early FY19, measuring engagement at 62%. This is considered a reflection of FY18 employee sentiment.

Talent and leadership

The improvement in key talent retention is consistent with an overall trend of lower turnover as well as a renewed focus on succession and development of key talent. In FY20 we delivered support tools for leaders and a targeted leadership development program for AGL’s Enterprise Leadership Team. Our talent processes ensure key talent and succession risks are identified and career development plans are in place.

KPI

FY20

FY19

FY18

FY17

FY16

Target

Attrition (total workforce)

8%

12%

11%

9%

10%

-

Key talent retention

98%

80%

81%

93%

94%

FY21: >80%

Legend

Improving trend and/or satisfactory outcome

Deteriorating trend

Neutral trend

KPI linked to FY20 remuneration outcomes for CEO and Key Management Personnel (page STI approach and outcomes )

Beyond FY20

In FY21 our focus on building a purpose-driven and values-led culture will continue, as will our long-standing commitment to diversity and inclusion as we commence the development of a Disability Action Plan and release our inaugural Reconciliation Action Plan. Attracting talent and unlocking the potential of our people through talent and succession, learning and leadership development will be a focus for FY21, along with simplifying our People systems and improving how we manage and capture value from change.

More information

Historical data from FY16-FY20 as well as information on other people indicators (including diversity statistics, turnover and additional safety metrics) is available at 2020datacentre.agl.com.au.

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