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People and
Sustainability Performance Report 2012 49
Employee engagement
Introduction to employee engagement
Employee engagement measures the degree to which
employees are intellectually and emotionally connected
and committed to the company they work for, and is
a core metric for measuring the health and success
of the organisation.
AGL undertakes the annual AGL Engagement Survey to understand
how engaged employees are by measuring key drivers that are
important to them such as employment experience, career
opportunities, company reputation, change management, customer
focus, safety and diversity.
This year, AGL transitioned to a new survey provider, ORC
International, an independent global employee research organisation.
The transition has enabled a more timely delivery of reports,
online reporting, greater ability to analyse engagement data, and
action plans stored and tracked centrally. Whilst there has been a
change in survey provider, the same methodology has been used to
calculate engagement scores to provide a direct comparison against
2011 results.
A shorter pulse survey was conducted in 2012 as a means of
tracking progress against engagement action plans that were
formulated following the 2011 AGL Engagement Survey. These
plans aimed to address the key opportunities to drive improvement
in employee engagement. The pulse survey covered the key
engagement questions, which assess employee advocacy (‘say’),
employee commitment (‘stay’) and employee discretionary
effort (‘strive’), as well as open-ended questions to provide
verbatim commentary.
AGL uses the results from the pulse survey to refresh action plans
to address the key opportunities to drive improvement, where
appropriate, in employee engagement.
Vision for employee engagement:
With the transition to the
new survey provider, ORC International, AGL has reviewed and
updated the question set that will be used to create the engagement
score in future surveys. Additional questions were trialled in
the 2012 engagement pulse survey to ensure the engagement
questions used are more relevant to the organisation in terms of
understanding employee engagement. In light of this, a new baseline
2012 engagement score has been provided by ORC International to
set targets for FY2013. Based on the new approach, the AGL overall
engagement score for 2012 was 70%. This score places AGL just
below Aon Hewitt’s Best Employer benchmark. AGL’s focus for next
year is to improve employee engagement further.
Improving performance in key areas such as diversity
and inclusion (page 50), talent acquisition and development
(page 52), and reward and recognition (page 55), will influence the
engagement of employees over the long term. Safety (pages 58
62) also has a strong influence on engagement.
AGL set a target to increase engagement by eight percentage
points compared to the FY2011 score. AGL overall achieved an
engagement score of 64%, which exceeded the set target. There
was an improvement across most areas within AGL and, in particular,
within the larger business groups, Retail Energy and Merchant
Energy. This improvement has been achieved through sustained
focus on identifying and addressing the key issues impacting
engagement in each major business group. Initiatives have been
implemented in FY2012 across all the areas that drive engagement.
We also acknowledge that in FY2012 the organisation was more
stable in comparison to FY2011, when a period of significant
organisational change impacted on employee engagement.
Employee engagement scores are used as a key performance
indicator in senior managers’ Performance and Development
Reviews. Operational leaders and employees are measured on
their contribution to specific engagement action plans that have
been agreed in their business units and other activities that aim
to positively impact on engagement. In FY2013, senior leaders will
also be measured on the achievement of engagement action plans.
Employee engagement
Engagement score
Aon Hewitt ‘Best Employer’ Zone
> 65%
The FY2012 pulse survey was conducted in May-June 2012 with an overall response rate of 85%.