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- Dampier port upgrade
- Skilled Park
- Greater Gabbard wind farm
SKM at work
We have continued to see a dynamic growth in staff numbers, jumping by 12 per cent during the year to approximately 6,500 (including contractors and casuals).
- New staff
- Retaining people
- Employee satisfaction
- Staff rewards
- Attracting new staff
- Staff recognition
- Staff rewards
- Safety first
New staff
At the same time voluntary employee departures remain high (about 18 per cent), meaning we have to work hard not only to retain our good people, but to recruit aggressively in a competitive labour market.
We had 2,795 new staff start work in 2007–08, including contractors and casuals. This equates to more than 53 new people each week.
This has put pressure on our induction processes, which we improved during the year. Research shows that if new staff are not welcomed formally and effectively in the first few weeks, it increases the likelihood of their leaving.
Retaining people
The most common reason employees leave SKM is for 'a career opportunity' or 'career development', according to our data on departing employees. Most are aged 25 to 35, and have been at SKM for one to three years.
Retaining these employees is an important goal for SKM, especially in a tight and competitive labour market.
Employee satisfaction
An employee satisfaction survey held in 2006 provided insights into employee expectations. While the overall results were positive, many employees indicating they wanted a defined career development path over the next 12 months to five years. In response we have taken a number of steps, including broadening our training and leadership programs, and offering a wider range of courses. More than 8,000 people completed at least one of the 35 training programs on offer during the year (this figure does not include courses on health and safety). Another survey of staff satisfaction and engagement in the second half of 2008, will further inform us on how best to retain staff.
Staff rewards
We also know that our remuneration needs to be competitive in the market. We have reviewed our mix of rewards including the use of performance bonuses to acknowledge good performance and to help us retain staff. In recognition of excellent work, some staff are given 'on-the-spot rewards', such as cinema tickets, restaurant meals, wine and gift vouchers.
While our employee turnover was about 18 per cent, this is consistent with last year and better than the industry standard. Turnover is highest in Western Australia, where again our retention rate is better than our key competitors.
Attracting new staff
Finding new staff was once a mainly seasonal event, recruiting university graduates. It is now a year-round exercise, with more than 30 people globally dedicated to recruiting SKM staff.
Traditional methods, such as newspaper advertisements, continue to be effective.
We also widely use the Internet, referrals from existing employees, and international expos, which in Europe and Asia have proved particularly successful.
Staff recognition
The company has four excellence medals, with the overall global winner selected from regional winners:
- CEO Medal, for client service orientation
- Jack Knight Medal, for demonstrating SKM's shared values
- Chairman's Medal, for leadership in health, safety, environment or community
- John Winton Medal, for technical excellence.
These awards recognise our truly exceptional people who provide leadership in key areas, innovate and enable positive change, and embody our shared values. They also provide the opportunity for staff to recognise and nominate their peers. The awards are a key focus for SKM as they represent the central themes driving SKM's success.
Staff rewards
In 2007-08 we continued to focus on improving SKM performance and rewarding employees for their contribution.
As a result we introduced a new performance bonus scheme, the Performance Excellence Plan (PEP), under which employees can get up to 10 per cent of their base salary as a bonus.
This scheme was offered to about 25 per cent of SKM's employees in 2007-08, as part of a pilot project. It has been successful and well received, and bonus schemes will be available to all permanent SKM employees in 2008-09. In 2007-08 we spent in excess of A$30 million on incentives.
Staff are also entitled to company benefits, such as subsidised gym membership, and access to a range of goods and services at company rates, such as flights, car hire and laptop computers.
Safety first
The health and safety of all employees and clients is a priority at SKM.
During 2007/08 we continued to roll out our LiveIt health and safety program designed to trigger a cultural change across our business. More than 95 per cent of our workforce have now completed training as part of this program.
We have set many records for lost time injury-free periods on major projects.
LiveIt underpins a culture that does not attribute blame, but rather one that encourages the reporting of actual and potential safety incidents in order to improve safety systems.
LiveIt, combined with strengthened systems and data collection this year, has led to a noticeable increase in the number of potenial or 'near-miss' safety incidents reported. This will allow us to further improve safety in coming years. Pleasingly, the decline in the frequency of lost time injuries continues.
Pleasingly, the decline in the frequency of lost time injuries continues.
