Our approach
For Downer to deliver the best possible outcomes for our customers, we need a workforce that is diverse, inclusive, capable, and engaged.
We acknowledge and value the high-quality outcomes our people have delivered and how that effort drives our business success.
It is important that we continue to think about the way we work – both in terms of our ability to offer flexible career pathways which will put us in the best position to retain and attract excellent people, as well as our aim to build contemporary work environments where our people are encouraged to engage with us to achieve balance and certainty in the way work is delivered.
Supporting the wellbeing of our people and promoting an inclusive culture where employees feel a sense of belonging are vital to maintaining a competitive advantage and underpinning our future business success.
For more information about our approach, please click here.
Our performance
The performance information in this section includes Downer Australia and New Zealand, its contractors and employees involved in unincorporated joint ventures.
To achieve Downer’s People targets and objectives, Downer prioritised the following short-term focus areas in FY22, which we committed to in our FY21 Sustainability Report:
Focus area |
Result |
Reference | |
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Embed and leverage the Diversity and Inclusion Steering Committees within each Business Unit to focus on programs and initiatives that will support the achievement of targets |
✓ Tactical action plans developed for all Business Units. |
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Launch Downer’s workplace giving program |
✓ |
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Continue to review and modify Downer’s Mandatory Induction program to ensure our commitment to a diverse and inclusive workforce and working environment is embedded in Downer’s culture |
✓ In progress. Commenced in FY22. To be completed in FY23. |
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Realign our leadership programs to include further diversity and inclusion content and learning |
✓ |
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Develop and release an unconscious bias training program that will develop further capability to support an inclusive workplace culture. Engagement and roll out of Emberin’s Inclusive Habits Journey to business |
✓ |
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Deliver a series of Diversity and Inclusion Lunch and Learn sessions for all employees across the Group, covering a range of topics including Indigenous, gender, disability, sexual orientation and generational diversity |
✓ |
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Engage with not-for-profit and community organisations to provide pathways and opportunities for culturally and linguistically diverse groups and people |
✓ |
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Analyse Workplace Gender Equality Agency (WGEA) reporting data and use the learnings as key inputs to develop ongoing strategies, programs and initiatives |
✓ |
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Downer continued to progress work in FY22. |
Deliver Downer’s THRIVE women’s empowerment and capability building program to the business |
✓ |
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Work with Reconciliation Australia to develop and launch a Downer Group Innovate Reconciliation Action Plan |
✓ |
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Create an Indigenous Champions network across Downer Group |
✓ |
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Downer continued to progress work in FY22. |
Embed best practice cultural heritage monitoring within large-scale on-country project deliveries |
✓ |
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Continue to build a talent pipeline by investing in entry level programs that align with our generational diversity focus and priority areas, including: the Downer Graduate development program; cadetship and further under-graduate programs; and apprenticeships and traineeships. |
✓ |
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Enhancing the employee experience
Downer operates in sectors that are subject to highly competitive labour markets, making employee retention and attraction an important strategic focus across the organisation.
The materiality assessment conducted in 2021 identified two material issues relating to Downer’s workforce: Employee development and engagement; and Diversity and inclusion. Both issues are central to ensuring we attract and retain a skilled and engaged workforce that can continue delivering outstanding services for our customers.
Downer’s employee development and engagement strategy focuses on providing opportunities for employees to grow their careers, offering benefits that are competitive with the market, and creating channels for engagement and feedback. Our focus on diversity and inclusion aims to foster a diverse and inclusive workplace that facilitates opportunity and respect – this includes focusing on gender, cultural and generational inclusiveness to reduce inequalities.
Downer has undertaken extensive work in both of these important areas during FY22 with the aim of enhancing the employee experience and ensuring Downer remains an employer of choice.
Factors such as the COVID-19 pandemic, social justice movements, technology and the shifting demographics of our workplace have changed the way Downer sees, values and supports our diverse workforce. Creating an environment where all individuals are treated equitably, fairly and respectfully is important. This environment enables and empowers people to access opportunities, develop personally and professionally and fully contribute to our organisation’s success.
Downer recognises that creating a sense of belonging is imperative to our sustainability and success as an organisation. In recent times, we have witnessed an increased emphasis on creating an inclusive workplace culture and leveraging the benefits that diversity brings to an organisation.
To reflect this shift, in FY22 we moved from using the language of ‘Diversity and Inclusion’ to ‘Inclusion and Belonging’.
This acknowledges that our focus is on the inclusion of all people through valuing and respecting differences, and also reflects the significant work and initiatives completed over the past 12 months. This includes launching our first Groupwide Inclusion and Belonging Strategy for 2022-24, which is an important step to guide our behaviours and advance our workplace culture over the next two years.
Employee feedback received through our annual employee engagement survey shows that career development is important to our employees’ experience at Downer. In FY22, we continued to investigate options to provide our workforce with opportunities to develop and to support their career pathways.
We support the learning and career development of our people through formal training programs, online sessions and on-the-job development. In FY22, a significant amount of time and resources has been spent reviewing, updating and expanding our suite of learning and development opportunities within Downer.
By fostering an inclusive workplace where our people have a sense of belonging, feel valued and understand they have an opportunity to grow within their roles, we aim to ultimately strengthen Downer’s reputation as an employer of choice, allowing us to attract and retain the best people to continue delivering the best outcomes for our customers and communities, despite a tight labour market.
Gender diversity
THRIVE attendees by level of work
Aboriginal and Torres Strait Islander diversity
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FY21 Female | FY21 Male | FY21 workforce percentage | FY22 Female | FY22 Male | FY22 workforce percentage | |||||||
Aboriginal and Torres Strait Islander peoples | 237 (1.59%) | 317 (1.42%) |
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554 (1.64%) | 132 (1.78%) | 224 (1.35%) | 356 (1.48%) |
Generational diversity
Australian apprentices by gender
Aboriginal and Torres Strait Islander apprentices (Australian cohort)
Māori and Pasifika apprentices (New Zealand cohort)
New Zealand apprentices by gender
Disability and neurodiversity
In FY22, Downer’s Group Health and Wellbeing team worked closely with the Inclusion and Belonging team to ensure Downer employment programs include neurodiversity and promote a psychologically safe environment that fosters discussion on diversity within our workplace and the communities in which we work.
Downer will continue to develop a culture of support, inclusion and belonging for people with both visible and non-visible disabilities. We acknowledge and understand that employees do not always feel comfortable disclosing that they have a disability. We are committed to ensuring that we are creating a supportive, accessible and inclusive environment, where all employees have adequate resources to thrive and fully contribute to the success of their team and Downer.
Industrial relations
In FY22, Downer’s Industrial Relations team, with its specialist full-time investigator, managed complex workplace investigations across the organisation. Training is also being delivered to HR professionals and managers on the principles of undertaking workplace investigations to ensure that all complaints are handled according to The Downer Standard and closed out effectively.
The Industrial Relations team also commenced an internal audit pilot program with a team in the Facilities Business Unit. This involved bringing together the contract manager, the relevant line managers and HR Advisors to undertake specific training in the industrial instrument that applies to their business and instructions on completing an audit of areas of potential non-compliance. The pilot has been successful and, subject to a final review, we propose to roll out a similar program across areas of the business at greatest risk of non-compliance.
Freedom of association and collective bargaining
Our people have the right to freedom of association and collective bargaining. Of our workforce, 48 per cent are covered by collective agreements across the Australian and New Zealand markets.
Veteran support
Downer employs a number of ex-Servicemen and ex-Servicewomen. We continue to leverage our relationships to support the transition of ex-Defence personnel into employment.
Downer has partnerships with Right Management and the Australian Veterans Employment Coalition, which are core to supporting the transition of current and ex-ADF members and their families into employment.
Downer is a founding member of Australian Veterans Employment Coalition and supports all Downer businesses with access to transitioning and ex-ADF members through this platform. Additionally, we support and promote Australian Veterans Employment Coalition to enable other employers to access this talent platform, holistically contributing to employment of transitioning and ex-ADF members.
Parental leave benefits
In FY22, a total of 229 employees took parental leave, an increase of 1.3 per cent compared to FY21. In both reporting periods, the majority of employees who took parental leave were female.
Parental leave figures reflect leave taken by the primary carer only. A number of employees have taken secondary carer’s leave, but are not captured within this report.
Training hours | ||||||||||||
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FY21 Female | FY21 Male | FY21 Total | FY22 Female | FY22 Male | FY22 Total | |||||||
Total training hours | 77,108 | 149,681 |
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226,789 |
78,685 | 160,765 | 239,450 | |||||
Average hours per employee by category | 4.87 | 4.96 | 4.93 |
7.20 | 7.00 | 7.06 |
Parental leave | ||||||||||||
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FY21 Female | FY21 Male | FY21 Total | FY22 Female | FY22 Male | FY22 Total | |||||||
Employees who took parental leave during the year | 219 | 7 |
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226 |
220 | 9 | 229 | |||||
Employees returning to work in the reporting period after parental leave ended | 221 | 5 | 226 |
250 | 9 | 259 | ||||||
Parental leave return to work rate (%) | 87% | 100% | 87% | 88% | 89% | 88% | ||||||
Employees who returned to work after parental leave, and were still employed 12 months after return | 223 | 1 | 224 |
113 | 4 | 117 | ||||||
Parental leave retention rate 12 months after return (%) | 86% | 100% | 86% |
87% | 67% | 86% |
Our future focus
Downer’s measurable objectives for FY23 have been endorsed by the Board and reinforce the company’s Inclusion and Belonging Strategy.
In 2021, Downer set proposed FY21-23 targets, as below. Our FY23 measurable objectives and initiatives bring together the efforts and resources of the Group to support Downer’s Inclusion and Belonging Strategy and the attainment of targets.
- 40 per cent women in the workforce by 2023
- 25 per cent women in management positions by 2023
- 25 per cent women in executive positions by 2023
- 30 per cent women on the Board
- 3 per cent Aboriginal and Torres Strait Islander employees.
- Implementing the first year plan of our Own Different campaign
- Implementing our Own Career employee development program
- Revising and evolving Downer’s Talent Management and Succession Planning framework to be more inclusive
- Deploying the graduate capability framework
- Analysing WGEA reporting data and using the learnings as key inputs to develop ongoing strategies, programs and initiatives
- Developing and implementing the Own Respect framework, aligning to Downer’s positive duty obligations
- Reviewing and modifying Downer’s Mandatory Induction program to ensure our commitment to a diverse and inclusive workforce and working environment is embedded in Downer’s culture.
Emerging issues and market trends
Workplace flexibility
The forced working transformations brought on by COVID-19 have accelerated change in the workplace, with a rapid switch to the utilisation of online technologies allowing employees to collaborate in new, more flexible ways. As society adapts to COVID-normal ways of working, including employees returning to offices, we expect to see challenges in adapting to an increasingly hybrid work environment.
A WGEA report published in December 2021 highlighted a number of benefits from this turbulent time, including increased organisational productivity, enhanced ability to attract and retain employees, improved employee wellbeing, increased participation of women in the workforce, and future-proofing the workplace. In addition, flexible working can promote greater gender diversity across the organisation. The ability for men and women to participate equally in flexible working arrangements has also provided the opportunity for a potential shift in paid labour (employment) versus unpaid labour (for example, home duties).
A shift to widespread remote working also has drawbacks, including the blurring of work-life boundaries for many workers. This challenge was not limited to the pandemic, but was highlighted through the number of workers suddenly shifting to remote working. Remote working prevents opportunities for less formal interactions with a wider range of people across an organisation, where information sharing may result in projects and discoveries that otherwise may not have happened. Inperson collaboration also benefits individuals, allowing for easier collaboration and genuine connections with colleagues that may be more difficult to form remotely.
The challenge of adapting to a hybrid working environment going forward is something that organisations across all sectors will need to manage. It is important that the needs of the organisation are balanced with the opportunity to provide employees with flexibility while maintaining (or boosting) overall productivity, particularly in areas where flexible working opportunities are limited.
Generational difference
Over the next 10 years, we will see six generations within the workforce at one time. All will have different needs and wants, driven by different motivations and expectations. This will make the workforce more complex than ever. A shift in focus and effort is required to understand the expectations and adapt accordingly.
Downer has begun our discovery to understand what these generational differences will mean and how we adapt our engagement to ensure the employee experience is targeted and relevant to our generational span including our approach to communication, employee development and recognition.
Just transition
The term ‘Just transition’ refers to the transitioning to a lower carbon economy with less reliance on fossil fuels in a way that is fair and inclusive for everyone concerned, creating decent work opportunities and leaving no-one behind.
The move to a low-carbon future will see the significant restructuring of the energy industry with flow-on effects for urban and regional economies. However, while new industries will replace traditional fossil fuel energy sources, these sources may not be in the same regions; therefore there is a need to ensure that workers and communities are not disadvantaged.
Downer provides local employment and utilises local supply chains in servicing fossil fuel based power generation assets and supporting infrastructure across some of the regional areas likely to be affected by early closures. For example, Origin Energy’s announcement to close the Eraring coal-fired power plant in 2025, seven years earlier than anticipated.
A just transition will require collaboration by the key stakeholders within the value chain, including governments, private companies, industry associations, unions, workers and affected communities, to carefully plan and manage the risks associated with the transition that some communities are likely to experience in order to maximise the social and economic opportunities of climate action.
Downer is uniquely positioned to play a pivotal role in the just transition, ensuring that communities and workers are supported in a responsible manner, whether it be alternative employment opportunities, reskilling/relocation options or supporting a pathway to retirement in a fair and equitable way that meets their needs and the needs of the local community.
Employee retention and sourcing
The demand for skilled labour is greater than supply in both Australia and New Zealand, generating a highly competitive labour market.
Unemployment rates are at record lows in both Australia (3.9 per cent as of April 2022) and New Zealand (3.2 per cent as of March 2022), with the forecasts suggesting this is unlikely to change in the near future.
Job mobility has increased significantly, with 9.5 per cent of employed people in Australia at February 2022 having changed jobs in the previous 12 months – the highest rate since 2012 (10.5 per cent). In addition, 55 per cent of the employed population at February 2022 have been with their current employer for less than five years, representing changes in employment drivers within the labour market.
In this environment, Downer has identified employee engagement, retention, mobility and development as being critical for existing contract delivery and securing future works.
In Australia, the Wage Price Index rose again in the March 2022 quarter by 0.6 per cent, signalling the pressure on wage increases in key talent segments partly due to demand and supply competition, and also offsetting past COVID-19 wage reductions.
Downer’s sourcing approach will continue to be focused on employee mobility and development, supplemented by the external market, both domestic and international
Australian Industrial Relations Reform
The Australian Federal Election, held in May 2022, resulted in the Australian Labor Party (ALP) securing the necessary 76 Lower House seats to form Government, putting it in a strong position to implement its agenda for significant Industrial Relations reform. The most significant changes proposed by the ALP as part of its reform agenda include:
- ‘Same job, same pay’ policy proposal which would require contractors and labour hire providers to offer their employees the same pay and conditions as provided to the employees of the host employer
- Enshrining job security and gender pay equity as new objectives in the Fair Work Act
- Prohibiting fixed-term contracts for the same role being extended beyond 24 months or two consecutive contracts, whichever comes first
- Limiting the definition of casual employees to remove the concept of permanent casuals
- Portability for employees in ‘insecure industries’ to transfer their entitlements to annual leave, sick leave and long service leave across different jobs in the same industry
- The introduction of 10 days’ paid domestic and family violence leave into the National Employment Standards
- Making ‘wage theft’ a crime under Commonwealth law
- Abolishing the Australian Building and Construction Commission and the Registered Organisations Commission
- Giving effect to all of the recommendations of the Respect@Work Report
- Legislating that companies with more than 1,000 employees be required to publicly report anonymised salary data for the purpose of exposing gender-based and managerial/nonmanagerial pay gaps.
These changes will warrant ongoing monitoring and response for all organisations, including Downer. However, Downer does not believe these changes will have a material impact on how it manages its workforce.