Business Value Driver
The competencies, experiences, behaviours, engagement and wellbeing
of AGL’s employees and contractors.
Workplace talent and culture
We are focused on attracting, developing and retaining the right talent to build a safe, engaged and performance-driven culture that can deliver the best outcomes for our customers and other stakeholders. We recognise the significance of this Business Value Driver to AGL’s ability to deliver on strategic priorities and manage Tier 1 Strategic Risks (page Operating Environment ).
Following a comprehensive review of our values in FY19, AGL’s refreshed values are: Care in every action, Integrity always, Better together, Deliver your best, and Shape tomorrow. These values provide a guide as to how we will deliver on our strategic priorities (page Purpose, Values & Strategy ).
The safety of our people is always 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 FY19 we focused on implementing the AGL Lifesaving Rules across the business to establish clear expectations of our people. This includes rolling out Critical Control Checks as part of the visible leadership program, and developing an AGL-wide Safe System of Work framework that provides guidance on permitted and non-permitted work on-site and the minimum risk controls required.
To deliver on our strategy, we need an engaged and diverse workforce with the right skills to ensure that we continue to optimise the value of our existing business, and the capabilities to meet the requirements and opportunities of the evolving energy landscape.
Recognising the broad-ranging benefits of an engaged workforce, during FY19 we focused on a range of initiatives under the two focus areas borne out of an engagement survey undertaken in late 2018 – keeping our employee promise and making it safe to speak up. These initiatives have included launching additional employee benefits, developing a ‘Families at AGL’ portal to help our people navigate work-life balance, launching a new connected leadership development program, and undertaking broad workplace consultation as part of the refresh of our values.
We continue to prioritise an inclusive workforce culture, recognising that increased diversity of thought, experiences and backgrounds in our workforce enhances our ability to innovate, problem solve and deliver sustainable outcomes for our customers and communities. An inclusive workplace culture also enhances our ability to compete for talent and retain talented people. Our FY19-20 Diversity and Inclusion Strategy channels our activities into four focus areas to drive success: inclusive practices, diversity in leadership, flexible working, and engaging externally.
During FY19, we critically reviewed our organisation to ensure we have the right structure and capabilities to deliver on our strategy. This involved AGL undertaking a significant review of our organisational design to put in place a structure, including new Executive Team appointments, to position AGL for our next phase of development, while also recognising the importance of having a stable environment for our people to perform their roles.
We are committed to ensuring our corporate governance framework, policies and practices reflect a high standard of ethical behaviour. For AGL, ethical governance means more than just complying with legislative requirements – it means setting clear principles and values of expected behaviour and holding our people to account. Ensuring our people feel safe to speak up is an important pillar in maintaining a strong ethical culture.
Creating opportunities for our people to develop and grow reduces the risk of skills and knowledge loss and enhances performance and business continuity. We support the targeted development of AGL people through a range of solutions including internal and external learning programs, and critical experiences gathered on the job in the form of key projects, secondments and other internal and external placements. We also have a talent strategy designed to deliver end- to-end talent solutions that focus on diversity and inclusion, capability development and a strong talent pipeline.
3,750Number of employees (headcount)
3,586Number of employees (FTE)
47.9%Proportion of workforce
employed under enterprise bargaining agreements
Our key safety and wellbeing risks over FY19 included permit to work/isolation, working at heights, confined space and mobile equipment operation.
While the number of reportable incidents increased (driving the Total Injury Frequency Rate (TIFR) upwards), the severity of incidents is reducing year on year. The majority of FY19 TIFR injuries were low to moderate in severity.
As we continue to develop our Target Zero strategy and framework, we are incorporating two additional key focus areas: an enhanced safety leadership program and building an increased focus on serious injury prevention.
TIFR (employees +
Fatalities (employees + contractors)
High potential near miss: recordable incident ratio
Culture and values
AGL achieved a six percentage point improvement in employee engagement scores over FY19, driven by a focus on delivering on employee promises and creating an environment in which people feel safe to speak up.
The number of appointments of males to senior leadership roles has increased resulting in an overall reduction of female representation in the Senior Leadership Pipeline (SLP). This is primarily driven by appointments to Group Operations leadership roles.
AGL experienced an increase in the number of complaints relating to unacceptable behaviour in the workplace in FY19. After investigations were undertaken there were no substantiated material breaches of AGL’s Code of Conduct. AGL considers the increased reporting of incidents as a reflection of our focus on creating an environment in which it is safe to speak up.
Gender mix in SLP
Code of Conduct breaches
Not reported in the same way
Talent and leadership
Structural changes have resulted in minimal change to our key talent retention rate as compared with the year before.
Attrition (total workforce)
Key talent retention
Improving trend and/or satisfactory outcome
Key relationships and trade-offs with other Business Value Drivers
There is a direct relationship between the People and Customers Business Value Drivers. AGL recognises that investments we make in continuously improving our organisational culture promotes a sense of trust in our people, which in turn encourages them to advocate for AGL in the broader community and helps to foster a sense of community trust in AGL. We also recognise that an inclusive and diverse workforce delivers a greater opportunity for our people to understand and respond to our customers’ needs.
The launch of AGL’s new purpose and values on 1 July 2019 will drive work in FY20 to continually embed the purpose and values into employee experiences, before launching them to our customers and the community. Equality, particularly gender equality, will also be a focus in FY20. This includes recognising that operational sites have specific needs and priorities and has driven the establishment of separate work streams to focus on gender equality at AGL’s sites.
Historical data from FY15-FY19 as well as information on other people indicators (including diversity statistics, turnover and additional safety metrics) is available at 2019datacentre.agl.com.au.