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Operations Report - Fuels and Infrastructure

Fuels & Infrastructure

In 2018 Caltex launched a new employment value proposition (EVP), rolled out programs to build a fair and flexible workplace and reaffirmed its commitment to gender equity, Indigenous employment and inclusiveness.

These programs have extended the cultural transformation that commenced in 2017 with the launch of a newly defined purpose and refreshed organisational values.

Employment value proposition and employee engagement

Building upon the insights from the Culture Survey conducted in 2017, we undertook comprehensive research in 2018 to uncover the core strengths and unique elements of our employment proposition. Caltex’s heritage and longevity of success, the calibre and expertise of our people, flexible workplace culture, and opportunities for career growth presented by the scale of our network, were universally attractive to our employees. A desire from employees to play a role in our community programs was also identified and this will be accelerated through the Caltex Foundation in 2019.

The resulting value proposition, ‘You Take Us Further’, was developed to bring these strengths to life and builds on our purpose and corporate values which were relaunched in 2017. The new proposition differentiates Caltex from its competitors across key employee segments and was launched externally in November 2018 through our digital employment presence. Refreshed candidate communications strategies and collateral support our talent acquisition efforts, telling the story of how our people drive our success and, reciprocally, how Caltex invests to ensure the professional growth of our people. Our employment brand identity is being implemented through multiple touchpoints, bringing to life the experience of working with Caltex; an ASX-listed business that is transforming itself.

In 2018 we also conducted our bi-annual Employee Engagement Survey to get feedback from our employees on working at Caltex. The survey reinforced that values-led leadership and flexibility are strengths that make Caltex a great place to work. Our overall engagement score of 83% was significantly above the Australian corporate average and on par with the oil and gas and retail industry averages.

Our new employment value proposition and implementation of engagement programs have supported our efforts to build a workforce of diverse and highly capable people required to support our two core businesses to deliver the Caltex strategy.

Annual Report 2018 Case Study

A fair and flexible workplace

In 2018, Managing Director & CEO Julian Segal became a Pay Equity Ambassador for the Workplace Gender Equality Agency (WGEA), promoting our commitment to an inclusive workplace through equal access to career opportunities, development and pay equity. Mr Segal has personally championed having a diverse Caltex executive team, with three out of seven (42%) of his direct reports being female.

A detailed gender pay audit was conducted in 2018 to identify any gender bias during the salary and short-term incentive review. The audit found no gender bias during the salary review, with females receiving an average increase of 1.7% compared to the male average of 1.6%. Similarly, there was no gender bias found in incentive payments with the average payment score for females of 129.9% and males of 129.5%. The review identified that Caltex has a pay difference of 1% in favour of males in like-for-like roles, which we still aim to improve.

Continued focus on developing women in their careers will be crucial to achieving our gender equity objectives. Caltex acknowledges that sustainability is reliant on a pipeline of future female leaders, built up from earlier career stages. For this reason, we have invested in talent, development and early career programs to build our pipeline.

In 2018 Caltex established its first Women in Engineering Scholarship through UNSW. This Scholarship aims to encourage and assist a female student to achieve a bachelor’s degree in engineering over a four-year period. Towards our goal of early career talent pooling, we have increased Caltex’s profile with the university through the scholarship promotion and involvement of Caltex leaders in associated events; developing industry case studies to present at the university, and hosting networking events on behalf of the UNSW Women in Engineering Society – all providing greater access to a pool of potential future candidates.

The Caltex Graduate Program plays a key role in sourcing diverse talent for the future, with over 60% (10 out of 15) female graduates hired in 2018 for the 2019 intake. By business area, female graduates make up four out of six positions in Fuels & Infrastructure, three out of five positions in Convenience Retail, and three out of four positions across Group functions.

Our talent development programs will continue to identify and develop employees exhibiting potential for promotion. Of the 2018 talent pool identified through our succession planning processes, 45% are women; which is 8% higher than at the same time in 2017 and 10% higher than female representation among the eligible group.

Female representation at Caltex

The rate of female promotions into the Senior Leadership group has been favourable, with seven of 13 promotions recognising talented women within Caltex.

Flexibility

Flexibility continues to be a priority for Caltex as both an enabler of inclusiveness and part of our employment value proposition.

Caltex people value flexibility in many different forms and our policy on flexible work has demonstrated many positive benefits. Two out of three employees who responded to the 2018 Employee Engagement Survey utilise some form of flexible work arrangement, and these employees on average were 6% more engaged. 83% of all employees surveyed in 2018 agreed that their leaders are considerate of their lives outside of work.

To ensure that we sustain these outcomes, in 2018 Caltex ran a Focus on Flexibility campaign to share case studies on successful flexible working arrangements and to support leaders to make decisions consistent with our desired culture.

Flexibility also continues to be essential to parents at Caltex. In 2018 we reviewed our Parental Leave Policy to remove the minimum tenure for access to paid parental leave. This initiative aligns to our employment value proposition – making it easier for expectant parents to join Caltex, manage the care of their newborn and then return to work. This change was promoted both internally and externally to attract diverse candidates and promote our inclusive and flexible work environment.

Indigenous employment market capability

Caltex’s inaugural Reconciliation Action Plan (RAP) was launched in 2018 to reinforce our commitment to making a meaningful difference to the lives of Indigenous Australians. The RAP is a public declaration of our commitment to reconciliation under the three pillars of building respect, relationships and opportunities.

Under the Opportunity pillar, attracting and retaining Aboriginal and Torres Strait Islander employees is a key area of focus.

In 2018 the number of employees who identified as Aboriginal or Torres Strait Islander increased from 83 employees to 147 employees, representing over 2% of our total workforce.

Caltex has strengthened our partnership with CareerTrackers, a program that provides Caltex with a future pipeline of Indigenous talent. We have increased the number of Indigenous interns employed through the CareerTrackers program from three to eight in 2018 and employed our first Indigenous school-based trainee.

Inclusiveness

During 2018, Caltex acknowledged and celebrated a series of events such as R U OK day, Harmony Day, International Women’s Day, Close the Gap, National Reconciliation Week and NAIDOC week, with a number of these being led by our ‘Women in the Fuels Industry’ and ‘Indigenous Trailblazers’ employee groups and supported by the Caltex Diversity and Inclusion Council.

Caltex was also a key sponsor of the external International Women’s Day event ‘Superhero Daughter Day’. Taking place across Australia, this event was run by the non-profit Tech Girls Movement and focused on providing primary school-aged girls the opportunity to participate in interactive activities that introduce them to the world of science, technology, engineering and maths (STEM). Over 60 Caltex employees and their families attended the event across Sydney, Brisbane, Melbourne and Adelaide.

Caltex has continued its support for veteran employment in 2018 and has participated in veteran employment fairs, raised funds and provided office space for the non-profit ‘Soldier On’.

Finally, Caltex employed its first CareerSeekers intern within the engineering team of our Fuels & Infrastructure business. CareerSeekers is a program designed to give asylum seekers and refugees the opportunity to gain paid experience in the Australian marketplace and reconnect to their profession of choice. As well as helping to broaden the cultural talent profile at Caltex, this program also ensures that Caltex is an inclusive organisation and plays a part in efforts to resettle asylum seekers and refugees in Australia.