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People and
AGL Energy Limited 56
Employee engagement
Reward and recognition
Remuneration is a core driver for many employees. AGL regularly
benchmarks remuneration broadly to the external market as well
as focussing on relevant industry sectors such as resources, key
specialist areas such as energy trading and other key roles. By
regularly comparing our offering against the market, we ensure our
remuneration policies are effective in attracting and retaining the
right people. Generally total remuneration is targeted within the
50th to 75th percentile market range.
AGL’s remuneration system includes a short- and long-term
incentive program for senior managers and a short-term incentive
for middle and emerging leaders, with payment of the incentive
based on achieving a combination of company and individual
targets. Currently, 65% of AGL’s employees (1,363 people) are
eligible to participate in short-term incentive programs, and 1%
of employees (22 people) are eligible to participate in long-term
incentive programs.
All employees (with the exception of defined senior executives,
and employees with less than 12 months of service) are eligible
to participate in the Share Reward Plan, under which employees
are invited to take up ownership of up to $1,000 of AGL shares
at no personal cost, subject to AGL achieving specific business
outcomes. These business outcomes include improvement in
customer satisfaction, financial growth, and achievement of Health,
Safety and Environment action plans. In FY2012, 78% of employees
(1,676 people) were invited to participate in the Share Reward Plan
As a result of partial achievement of these business outcomes, the
Board awarded $950 of AGL shares to eligible employees (to be
paid in FY2013).
The Customer Service incentive program has both short- and
long-term components. Performance is assessed against a monthly
scorecard and a short-term incentive is paid to the top 30% of
performers each month. The top 30% of performers nationally
who achieve a Performance and Development Review (PDR) rating
of three or higher at the end of the PDR cycle are also eligible for
an annual incentive.
Employee benefits
AGL offers:
>> 14 weeks paid parental leave for primary carer (women and men,
with flexibility to take this leave at half pay over 28 weeks
>> two weeks paid partner leave which can be taken at the time
of birth
>> option to take paid parental leave and paid partner leave on
a flexible basis
>> up to two weeks purchased leave
>> 25% employee discount on AGL energy usage and service charges
>> up to two years salary continuance income protection in the event
of an illness or injury
>> financial and study leave support for employees pursuing further
study through the Assisted Education program
>> access to a counselling service for employees and their families
>> volunteering leave (Employee Volunteering)
>> AGL matched charity giving program (Employee Giving)
>> wellbeing program
>> flexible work options
>> discounted health insurance.
>> AGL VIP energy discounts for family and friends
>> Share reward and share purchase plan
>> Living the Values awards
>> Service award program
>> Social Club
1 This figure is based on a headcount number of 2,126 as at 1 September 2012,
the time at which the share offer was made.