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People and
Sustainability Performance Report 2012 55
Employee engagement
Reward, recognition and benefits
Providing clear expectations and recognising and
rewarding performance and contribution to the business
is motivating for employees and critical to achieving
AGL’s goals and targets.
Performance and Development Review process
AGL’s Performance Management Cycle is an important process
for creating a high performance organisation, where people take
accountability for delivering results and for building the capability
needed to progress their careers in AGL.
AGL’s Performance and Development Review (PDR) process is used
to measure and manage employee performance. The PDR process
incorporates measurable objectives, regular (at least monthly) one-
to-one conversations between leaders and employees, mid-year
and full-year performance reviews, career development planning
and stakeholder feedback.
The PDR provides employees with clarity about what is expected
of them, and links reward and recognition of employees’
performance and contribution to the business in a transparent
and equitable manner.
To increase the transparency of the PDR process, a company-wide
calibration process is undertaken to ensure that performance ratings
are applied consistently and equitably.
During June 2012, AGL transitioned PDR processes and paper-
based documents for employees who are not employed under an
enterprise bargaining agreement (EBA) onto an online platform,
. As the foundation of an integrated talent management
will provide a central data repository and
common, web-based portal for AGL’s performance, career and
talent processes. Employees who are covered by EBAs are expected
to transition to
in FY2014.
To ensure employees’ efforts are aligned to strategic goals,
mandatory objectives are developed and cascaded through the
executive team to other layers of leadership (where relevant).
The mandatory objectives for FY2012 included: financial, health
safety and environment, employee engagement, and customer
satisfaction targets.
Career development
In the context of a rapidly changing energy industry, being able
to offer attractive and challenging careers is critical to attracting
and retaining talented employees, and ultimately, to the delivery
of business results.
AGL’s Career Management Framework is composed of five career
factors that need to come together to deliver an employee’s
long-term career growth. This framework helps leaders in their
discussions about employees’ career development strengths, gaps
and potential career moves, as well as projects or experiences that
may be needed for their development.
In addition to the new Career Development Framework, there are
a range of processes and offerings that enable employees to realise
their career aspirations in AGL:
>> Career Development Plan
>> promotion of internal job opportunities
>> career development workshops
>> talent management
>> assisted education program
>> 360 degree feedback
>> leadership development
>> personal development.
AGL’s new remuneration Position Framework launched in FY2012,
describes the architecture of all positions in AGL and, as such,
provides an accessible matrix of potential career paths for
employees planning their careers at AGL. A hierarchy of work levels
defines the “size” of a position relative to other positions at AGL,
and categorises each role according to four streams of work, each
with a different focus. The Position Framework is underpinned by
the Hay job evaluation methodology, an internationally recognised
methodology for “sizing” jobs.
Assisted Education program
AGL supports employees completing formal qualifications at
secondary and tertiary level through the Assisted Education
program. This program supports employees financially and
by allowing time off work to study.