Board and Employee Capabilities, Remuneration and Talent Retention

FY15 Performance Against Commitments

 = Achieved   = Not Achieved   = Underway


Commitment Status FY15 Achievements
Implement human resources technologies that enhance people practices and efficiencies, with a focus on employee self-development and on-boarding applications Introduced Red-Carpet on-boarding technology platform Implemented new personal development program (Forte) to create personal action plans to improve competencies and career opportunity
Develop a series of learning and development programs to support people strategies relating to property expertise, institutional rigour and entrepreneurial spirit Implemented a refreshed Management Essentials Development program for all managers to increase management capability Completed the final components of the DEXUS Leaders Academy to increase leadership capability/expertise Designed a DEXUS specific valuations training program to improve capability and increase internal certifications/accreditations
Implement a program of events and practices supporting diversity and inclusion in the workplace Launched Lean-In Committee and Lean-In Circles for employees Launched DEXUS Health Week with a focus on a supportive/inclusive culture and employee health/wellness Implemented gender overlay for People and Culture processes - talent management, remuneration, appraisals Implemented a new superannuation framework for parental leave to assist in closing the superannuation gender gap Conducted Diversity and Inclusion awareness seminar Celebrated International Women's Day
Adopt the 'Plus One' initiative in which executive leaders commit to hiring a minimum of one senior female into an approved open role 32% of new hires at senior levels were female Achieved the 'Plus One' commitment adding seven new female managers/leaders across the business Focused external talent mapping and search activity for senior management specifically on female gender

Refer to Delivering FY15 Commitments and People & Culture sections of the 2015 DEXUS Annual Review.


Workforce Statistic

FY11 FY12 FY13 FY14 FY15
M F M F M F M F M F
Total workforce (FTE)
Permanent full-time 128.0 125.0 115.5 107.8 111.0 88.0 135.0 107.8 148.4 124.2
Permanent part-time 3.0 13.8 1.5 16.5 0.8 16.0 0.8 18.3 0.0 23.9
Contractor 2.0 10.0 3.6 8.0 3.0 8.0 3.0 2.0 11.2 14.4
Casual 3.6 4.1 0.2 3.3 0.8 6.4 3.7 5.4 3.0 8.9
Total workforce 136.6 152.9 120.8 135.6 115.6 118.4 142.5 133.5 162.6 171.4
Workforce by location
NSW 39% 38% 41% 36% 43% 38% 43% 32% 41% 37%
QLD 5% 6% 4% 8% 5% 10% 5% 10% 3% 7%
VIC 1% 4% 1% 5% 1% 3% 4% 6% 4% 7%
WA 0% 1% 0% 0% 0% 0% 0% 0% 1% 0%
California 2% 4% 1% 4% 0% 0% 0% 0% 0% 0%
Workforce by employment type
Permanent full-time 44% 44% 45% 42% 48% 38% 49% 39% 45% 37%
Permanent part-time 1% 5% 1% 6% 0% 7% 0% 7% 0% 7%
Contractor 1% 3% 1% 3% 1% 3% 1% 1% 3% 4%
Casual 1% 1% 1% 1% 0% 3% 1% 2% 1% 3%
No. of flexible work arrangements 10 31 11 25 6 25 7 26 9 52

Gender Diversity in the Workforce

FY11 FY12 FY13 FY14 FY15
Total workforce by gender
Number of female employees 152.9 135.6 118.4 133.5 171.4
Number of male employees 136.6 120.8 115.6 142.5 162.6
Total number of employees (FTEs) 289.5 256.4 234.0 276.0 334.0
Percentage of women in workforce 53% 53% 51% 48% 51%
Percentage of men in workforce 47% 47% 49% 52% 49%
Gender diversity in our senior leadership team
Number of females in Senior Management team 23.1 25.4 22.5 24.0 27.7
Number of males in Senior Management team 55.0 59.0 61.0 68.0 79.2
Total number of employees in Senior Management team 78.1 84.4 83.5 92.0 106.9
Percentage of females in Senior Management team 30% 30% 27% 26% 26%
Percentage of males in Senior Management team 70% 70% 73% 74% 74%
Percentage of female Non-Executive Directors 14% 25% 25% 43% 43%
Percentage of male Non-Executive Directors 86% 75% 75% 57% 57%

Commentary and Methodology

'Senior Management team' includes executive management and senior management positions within the Group, specifically positions with a corporate title of Executive Director, Executive General Manager, Group General Manager, Regional General Manager, General Manager and Senior Manager.

'Non-Executive Directors' are Independent Directors of DXFM and does not include the CEO or Executive Director Finance & COO who are counted in the Senior Management team for the purposes of workforce reporting.

All relevant headcount data is taken from each year's headcount report as at 30 June 2015, produced by DEXUS People & Culture.

Headcount data for the purpose of these statistics is based on Full Time Equivalent (FTE) employees, representing the active DEXUS workforce.


Engagement and Leave

FY11 FY12 FY13 FY14 FY15
Employee engagement rate
Survey participation rate 88% 93% 88% 83%¹
Engagement rate 83% 85% 78% 87%¹
Leave days taken
Annual leave 3,971 4,826 3,839 4,351 4,696
Long service leave 106 51 16 81 98
Parental leave unpaid 1,187 2,496 1,614 721 1,396
Parental leave paid 533 690 466 234 355
Personal leave 643 895 725 818 1,135
Leave without pay 107 154 172 171 325
Other leave 154 379 547 491 521
Absentee Rate (sick days lost per FTE) 2.2 3.5 3.1 3.0 3.4

From FY14, DEXUS will be conducting its Employee Opinion Surveys once every two years.

Commentary and Methodology

Engagement information was sourced directly from the Employee Opinion Survey for the respective reporting year. Employee Opinion Surveys are managed externally by Towers Watson via an online, confidential survey.

In 2015 DEXUS expanded its engagement with employees to focus on understanding the DEXUS culture and conducted a Culture Survey. In future DEXUS will conduct Employee Opinion Surveys and Culture Surveys on alternate years.

Leave data was gathered for each reporting period from payroll system records. The data was then consolidated into the categories displayed in the report as follows:

  • Annual leave: Annual leave only
  • Long service leave: Long service leave only
  • Parental leave unpaid: Parental leave unpaid only
  • Parental leave paid: Primary and non-primary paid parental leave
  • Personal leave: Sick leave, carers' leave and special bereavement or compassionate leave
  • Leave without pay: Leave without pay only
  • Other leave: Study leave, volunteer leave, jury duty and purchased leave

Definitions

Absentee Rate (AR) - the number of personal leave days per full time equivalent workers employed is calculated as follows:


Work Health & Safety and Discrimination

  FY11 FY12 FY13 FY14 FY15
Employee WH&S incidents
Workplace injuries (No lost-time injuries/diseases) 9 8 5 6 -
Lost-time injuries/diseases - - - - 1
Occupational diseases - - - - -
Fatalities - - - - -
Lost Time Injury Incidence Rate (LTIIR) n/a n/a n/a - 0.30
Lost Time Injury Frequency Rate (LTIFR) n/a n/a n/a - 1.64
Occupational disease rate (occurrences per million hours worked) n/a n/a n/a - -
Lost day rate (days lost per million hours worked) n/a n/a n/a - 3.28
Employee relations matters
Resolved by year end 2 5 1 3 2
Outstanding at year end 2 1 0 0 0

Commentary and Methodology

Work health and safety (WH&S) incidents account for all recorded incidents pertaining to DEXUS employees and do not include contractors. All reported incidents in FY15 related to personal injury.

In FY15, there was one OH&S incident reported by employees, with two days lost time from injury, resulting in a lost-time incidence rate (LTIIR) equal to 0.30 and lost-time injury frequency rate (LTIFR) equal to 1.64.

The system of rules applied in recording and reporting accident statistics include Australian Standard 1885.1 1990, Workplace injury and disease recording standard as well as definitions from the Global Reporting Initiative (GRI) G4 reporting standard relating to indicator G4-LA6.

Definitions

No lost-time injuries/diseases - those occurrences which were not lost-time injuries/diseases and for which first aid and/or medical treatment was administered

Lost-time injuries/diseases - those occurrences that resulted in a fatality, permanent disability or time lost from work of one day/shift or more

Occupational disease - a disease arising from the work situation or activity (such as stress or regular exposure to harmful chemicals), or from a work-related injury

Near misses - any unplanned incidents that occurred at the workplace which, although not resulting in any injury or disease, had the potential to do so

Fatalities - Fatalities that occur as a result of an injury or disease occurrence

Lost Time Injury Incidence Rate (LTIIR) - The number of occurrences of injury/disease for each one hundred full time equivalent workers employed is calculated as follows:

Lost Time Injury Incident Rate Formula

Occupational disease rate (ODR) - The number of occurrences of occupational diseases for each one million hours worked is calculated as follows:

Occupational Disease Rate Formula

Lost day rate (LDR) - the number of days lost to injuries/diseases for each one million hours worked

Where:

Number of hours worked in the period - refers to the total number of scheduled hours worked by all DEXUS employees as recorded at 30 June each year. DEXUS offers employees flexible work arrangements and staff are employed under individual contracts that stipulate 1824 hours per annum (equal to 240 days x 7.6 hours) for each full-time employee. As DEXUS does not track employee working hours and staff do not engage in overtime or shift work, DEXUS has defined the 'number of hours worked' as 1,824 hours per annum per full-time employee.

Number of workers - Is defined as the number of workers who worked in the reporting period as recorded at 30 June each year. Persons who were absent from work on paid or extended leave as recorded at 30 June each year are excluded from this calculation.


Retention and Recruitment

FY11 FY12 FY13 FY14 FY15
  M F M F M F M F M F
Total number of new hires 28 44 24 37 30 41 42 45 49 72
12 month voluntary turnover rates
Executive management 0% 0% 0% 0% 0% 0% 0% 0% 10% 0%
Senior management 2% 5% 4% 4% 8% 33% 11% 8% 6% 4%
Middle management 7% 0% 15% 4% 6% 14% 10% 5% 10% 8%
Professional/technical 17% 25% 31% 19% 15% 13% 4% 3% 18% 11%
Administration/operations 0% 20% 25% 20% 10% 15% 11% 22% 17% 15%
Total by gender 9% 16% 13% 12% 9% 15% 9% 11% 10% 10%
Total 13% 12% 12% 10% 10%
Return to work after parental leave - 10 - 15 - 6 - 5 - 8

Commentary and Methodology

The turnover calculation is a count of voluntary departures divided by the count of employees as at 30 June in each year. All relevant headcount data is taken from the headcount reports produced by DEXUS People and Culture at 30 June each year.

The employee count reflects the total number of people employed by DEXUS and accounts for circumstances such as flexible work arrangements and inactive employees on parental leave that are counted in full as departures.


Training and Development

FY11 FY12 FY13 FY14 FY15
Total M F M F M F M F
Training hours by work category
Executive management 433 257 130 274 103 614 144 1,154 174
Senior management 1,666 2,378 459 918 248 2,553 740 3,119 1,362
Middle management 2,398 931 667 837 420 713 720 1,217 2,195
Professional/technical 4,612 933 1,689 478 634 543 750 907 1,431
Administration/operations 1,517 613 707 422 1,026 167 536 208 883
Total 10,626 5,112 4,151 2,929 2,431 4,590 2,890 6,604 6,045
Percentage of performance reviews performed 98% 92% 93% 100% 100% 100% 100% 100% 100%
Hours of internal & external training
Internal 4,254 3,402 2,966 1,354 4,261
External 6,372 5,861 2,403 4,572 4,761
Hours of compliance training n/a 375 1,369 1,554 3,626
Average training hours by work category
Executive management 30 42 69 102
Senior management 47 39 42 47
Middle management 22 28 20 38
Professional/technical 61 19 24 27
Administration/operations 24 14 10 17

Commentary and Methodology

Training data is taken from the training database at the end of each reporting year. Data is categorised and consolidated to provide training hours completed for each category.

Data includes compliance training covering Human Rights issues as well as the DEXUS Code of Conduct which addresses victimisation, harassment and bullying.


Remuneration

FY11 FY12 FY13 FY14 FY15
M F M F M F M F M F
Ratio of basic salary by employee category
Executive management 1.0 1.1 1.0 1.2 1.0 1.0 1.1 1.0 1.3 1.0
Senior management 1.1 1.0 1.0 1.1 1.0 1.0 1.1 1.0 1.1 1.0
Middle management 1.1 1.1 1.0 1.1 1.0 1.0 1.1 1.0 1.1 1.0
Professional/technical 1.3 1.2 1.0 1.1 1.0 1.0 1.2 1.0 1.1 1.0
Administration/operations 1.3 1.1 1.0 1.0 1.0 1.0 1.2 1.0 0.9 1.0
Ratio of basic salary by location
NSW 1.7 1 1.6 1 1.6 1 1.6 1 1.6 1.0
QLD 1.4 1 1.5 1 1.6 1 1.8 1 1.6 1.0
VIC 2 1 1.7 1 2.8 1 1.6 1 2.0 1.0
WA - n/a - n/a 2.3 1 2.1 1 n/a n/a
California 1.2 1.0 2.3 1.0 n/a n/a n/a n/a n/a n/a

 

FY11 FY12 FY13 FY14 FY15
Multiple of all employees' salaries to CEO salary 11.18 9.16 8.09 8.76 9.15
Multiple of all employees' salaries, excluding Group Management Committee members, to CEO salary 12.18 9.44 8.89 9.20 9.58
Multiple of all employees' salaries, excluding all Senior Management, to CEO salary 16.43 14.35 12.80 13.41 13.55

Commentary and Methodology

Salary represents an employee's package including fixed cash and superannuation.

Category ratios are calculated by taking the average male salary and comparing it to the average female salary.

Location ratios are calculated by taking the average male salary and comparing it to the average female salary, where number of employees is 10 or more, according to the employee's physical work location.

CEO salary as a multiple of worker salary is calculated by taking the CEO's salary and dividing it by the Group's average salary excluding the CEO. The Group's average salary is then recalculated in the subsequent reporting item to exclude members of the Group Management Committee, and then recalculated again to exclude all senior management for the final reporting item.

For further information on DEXUS's employees refer to the People & Culture section in the 2015 DEXUS Annual Review, the People and Culture Disclosures of Management Approach or Thriving People in DEXUS's CR&S website.