At 30 June 2010, Boral had 14,806 full-time equivalent (FTE) employees and around 6,000 FTE contractors working across its global operations. In addition, approximately 3,000 employees were working in joint venture operations. The number of FTE employees was broadly steady on the prior year with a 5% decrease in the USA offset by an increase in employee numbers in Asia.
Boral businesses increased the number of contractors due mainly to improved economic conditions in the second half of the financial year. Boral engages contractors in a range of activities including transport, maintenance, roof tiling, plasterboard installations, concrete placement and various professional services such as finance and information technology.
The average age of Boral's workforce is 44, with 30% of employees over the age of 50 and 17% under the age of 30. In recent years the proportion of older employees has increased reflecting broader social changes and the ageing of the population. In response to an ageing workforce, greater emphasis is being placed on health and safety and flexible working arrangements.
Employee turnover in Australia was 16% in 2009/10, down from 20% last year. The lower turnover reflected the uncertainty in employment markets and the lower levels of job vacancies in Australia. In the USA, as the market downturn began to stabilise, staff turnover of 26% was significantly lower than the high level of 60% in the prior year. In Asia, turnover remained steady at 18%.
Length of Service
The average length of service of Boral employees globally is around eight years. In the USA, the average length of service is high at 11.8 years, in Australia it is 8.7 years and in Asia it is just under five years.
Boral is committed to operating in a manner that respects differences among employees, customers and communities. Diversity is the variety of skills, abilities, experiences and cultural backgrounds that enables our people to achieve superior business and personal results. Diversity brings many benefits; we encourage greater diversity within our workplaces.
Boral has maintained its status as an Employer of Choice for Women as recognised by the Australian Government's Equal Opportunity for Women in the Workplace Agency. The award recognises Boral's initiatives to create an equal workplace for women including our pay, recruitment and promotion processes which are merit-based and transparent.
Women represent 13% of Boral's employees at 30 June 2010, which is consistent with our industry sector, and is in line with last year. Women occupy 9% of Boral's management positions. This is also consistent with the industry average. Some of Boral's initiatives aimed at attracting and retaining women include: Boral's parental policy, the "Springboard for Women" training program and the online Care for Kids program.
Boral's Indigenous Employment Strategy demonstrates the company's commitment to the employment of Aboriginal and Torres Strait Islander people. Boral works in partnership with the Federal Government's Corporate Leader Program.
Our strategy has seen a steady increase in the number of indigenous people applying for and being successful in obtaining jobs with Boral. A total of 46 indigenous people have been employed under the current Structured Training and Employment Program (STEP) which is managed by our Indigenous Employment Manager in conjunction with the Federal Government (Department of Education, Employment and Workplace Relations). Boral has applied for funding for another STEP Program for 2010-2012.
Boral supports the NSW Government's Aboriginal Job Compacts, which are aiming to improve employment outcomes for indigenous people in Dubbo, Tweed Heads, South Western Sydney, Eastern Sydney and Western Sydney. Through this initiative Boral is connecting better with local Aboriginal communities, schools and TAFE Colleges and assisting to improve community awareness of local employment opportunities.
Boral works hard to retain and develop the careers of indigenous employees through Aboriginal Cross Cultural Training, a mentoring program for indigenous staff and improving relations with local indigenous communities. This year, Boral has continued its sponsorship of the Bangarra Dance Theatre as well as sponsoring an Outward Bound Aboriginal Leadership Program for 15 indigenous youth from Kempsey in northern NSW.
Personal development and training
Ensuring that our people have the right skills and capabilities to perform their jobs effectively and develop their careers is a key part of our people strategy.
We provide a range of training and development tools to our people, such as on-the-job training, mentoring, coaching and leadership development programs. Typically on-the-job training and competency-based training for operational, frontline employees and contractors is delivered and managed within each business. Boral's Organisational Development team provides leadership training and career direction to support the development of managers and future leaders.
Enhanced personal development programs are being developed to identify high potential employees and a new executive leadership training program will cultivate the next generation of leaders. Focus is also being given to improving employee appraisal, career development and succession planning processes.
Registered training organisation
Boral's Construction Materials division operates a registered training organisation (RTO) which uses the national training system to establish rigorous performance benchmarks for operator, frontline, supervisor and management roles.
Further changes to Australia's workplace relations legislative framework occurred during the year with the introduction of the Fair Work Act.
An extensive review of internal procedures was conducted together with an education program for management to assist with the introduction of new legislation. Boral took on a lead role for building and construction materials industry groups in the award modernisation process.
All of Boral's Australian non-salaried employees work under registered industrial instruments. Some 104 collective enterprise agreements operate in Australia, supplemented by a diminishing number of individual agreements, Australian Workplace Agreements and Individual Transitional Employment Agreements.
Managing and rewarding our people
Boral's remuneration practices are designed to be market competitive to help us attract and retain the best people.
We use variable at-risk remuneration to reward good performance and motivate employees to meet and exceed agreed targets.
Approximately 58% of Boral's Australian employees work under an enterprise or industrial agreement with an agreed hourly rate of remuneration and in some cases a productivity bonus. A further 34% are in salaried staff positions and 8% are in managerial roles. An annual short-term incentive plan focuses managers on achieving business-specific objectives which are linked to the financial performance of the business. Details of Boral's remuneration policy and structure for senior executives are included in the Remuneration Report found in the 2010 Annual Report.
We estimate from our records of union payroll deductions that in Australia 38% of our non-salaried employees are financial members of a trade union and in the USA 7% of Boral's employees are members of a trade union.
In Australia, Boral provides eight weeks paid maternity leave and one week paid paternity leave. The "Boral Care for Kids" program assists employees to find online appropriate child care services.
Boral's community partnership programs enable employees to combine community-giving activities with their work schedules and with their family life. Through these programs, employees have access to complimentary family zoo passes to Taronga and Western Plains Zoos and discounted tickets for partner events. Boral funded eight Family Re-Discovery scholarships with Outward Bound Australia in 2009/10 to employees with a high school aged son or daughter.
In the USA, Boral provides six Educational Scholarships of US$4,000 per year for four years towards the college tuition fees for children of employees.
In 2009/10 Boral introduced a new School Educational Scholarship program to benefit 200 children of our Indonesian employees.
Boral's employees in Australia have access to the BWell health and well being program and an employee counselling service, BEAP. Further information on these programs is detailed in the Health and Safety section of this report.
1 Reported as ~5,700 in Boral's 2008 Sustainability Report and has been revised to ~ 7,000 due to enhanced data collection.
2 Reported as 23% in Boral's 2008 Sustainability Report and has been revised to 24% due to reclassification of USA data.
3 Reported as 29% in Boral's 2008 Sustainability Report and has been restated to 37% due to reclassification of USA data.