Improving our culture
In the past five years, we’ve made targeted investments into our people, culture and reputation. We aim to keep our people positively engaged to deliver value to NAB’s customers, shareholders, people and the community.
This year’s employee engagement survey was conducted using a new methodology provided by independent consultants Right Management – to deliver more dynamic and intuitive reporting, demographic insights and access to global benchmarks.
Based on our previous model, engagement figures showed continuous gradual improvements to 69%.
The new model measures engagement via how engaged employees are with their job or role as well as how engaged they are with the organisation. Employees need to answer favourably to all eight items to be considered engaged. In previous years, the engagement score was calculated by averaging across four to five engagement questions. To provide the trends, we included comparable questions under the new 2014 model. Under the 2014 Right Management model, we have new base metrics, which are not directly comparable to previous measures. The results showed overall engagement result at 42%, job engagement at 55% and organisational engagement at 52%.28
Our strengths included the quality of our people leaders, career and personal growth, and alignment of roles to NAB’s strategy. Areas for improvement included fostering performance, enhancing leadership and agility, and organisation advocacy, which we’ll continue to address.
Strong leadership within our organisation is critical in order for us to execute our strategy. We strive to constantly improve the effectiveness of our leaders and how we recruit and manage talent. Our expectation is that employees at all levels should demonstrate leadership at NAB.
Each year we identify high-potential leaders for the NAB Group Talent Pool. As at the beginning of 2014, despite a year of significant change, 92% of those participating in the Group Talent Pool were still with NAB. This year we provided our 3800 People Leaders with access to leadership development. We also seek diversity within our pipeline of talent and in 2014, 50.6% of our Group Talent Pool was made up of females.
The value of diversity and inclusion
In August 2014, the Board approved a refreshed diversity and inclusion strategy for 2015 to 2017 and an updated Group Diversity and Inclusion Policy. The three priorities of our diversity strategy are life stage, gender equity and inclusion, such as Indigenous and Lesbian Gay Bisexual Transgender and Intersex communities. Underpinned by two key enablers – leadership and flexibility – our refreshed diversity and inclusion strategy forms part of our ongoing commitment that enables employees to reach their full potential at the various life and career stages – and a workplace that reflects the diversity of our customers and communities.
In 2014 we saw the proportion of women on NAB Group subsidiary boards increase to 32%.
NAB Board Ready, our program to develop aspiring directors, was recognised as a global innovative practice with a Practice Recognition Award from Catalyst, a global organisation dedicated to the advancement of women. We intend to make even greater improvements to the number of women in executive roles. Currently, 30% of NAB’s Executive Management roles are held by women.
Our return-to-work rate (87%) of employees on primary carer’s leave in Australia increased by seven percentage points over last year’s rate – supported this year by the launch of programs for employees on parental leave to enable them to maintain stronger connections with the organisation.
The Australian Network on Disability reviewed the actions within NAB’s Accessibility Action Plan 2012–2014, and acknowledged we had made significant progress since the plan was launched in December 2012. We know there is more we can continue to improve.
In 2014 BNZ piloted the award-winning MyFuture program which has been running in Australia since 2011. The program provides mature-age employees with the chance to explore their future and the transition to retirement. MyFuture encourages our employees to remain in the workforce longer, so we retain business knowledge and maintain strong customer relationships. Since 2012, the average retirement age within NAB has increased by 15 months to 59 years and eight months.
This year we recruited more than 79 Indigenous trainees, which totals 385 since the program was launched in 2009 – and we employed 30 graduating trainees. We also partnered with AFL Sportsready to deliver the first Emerging Leaders program to 12 Indigenous employees across the business.
Our employee initiatives
In 2014, we completed negotiations for a new enterprise agreement to cover all NAB employees. Employees endorsed the new agreement, which provided greater certainty in relation to wages and terms and conditions. The changes are expected to deliver greater efficiency through flexible part-time employment, management of rostered days off, and revising how we classify jobs.
Initiatives like our Domestic Violence Support policy and our commitment to gender pay equity aim to improve retention rates and our reputation as an employer. Our new remuneration initiatives for financial planners have attracted positive feedback due to the transparency of the advice structure, and the move to assessing performance based on a balanced scorecard.
Delivering on our reputation
We hold ourselves to high standards of business conduct and believe reputation is built upon trust and respect. In 2013 we refreshed our Code of Conduct to give even more certainty to our customers, people and the community. Outlining the professional and ethical standards we expect from our people and anyone working on our behalf, our updated Code of Conduct was launched in October 2013. During February and March 2014, all of NAB’s Australian employees were required to complete an online course, which bound them to the terms of the refreshed Code of Conduct.
We continue to monitor and report on the number of alleged breaches against our Code of Conduct. A breakdown of breaches and the action we have taken can be found on the Corporate Governance section of nab.com.au.
This year most of the breaches investigated by Workplace Relations related to workplace behaviour issues. In one example a NAB employee was found to have engaged in insider trading, unrelated to his work at NAB. NAB’s CEO strongly condemned the activity, which was in breach of our Code of Conduct, and the employee’s employment was terminated.
To support best practice, we offer our people a number of avenues to raise concerns, including our Confidential Whistleblower Alert line, the People Advisory Centre and our fraud investigation units. In December 2013, NAB was subject to an enforceable undertaking from the Australian Securities and Investment Commission relating to potential market misconduct. We agreed to adopt specific monitoring and control systems and made a voluntary contribution of $2m to fund independent financial literacy projects.