We aim to enhance the value we create by collaboration and forming positive relationships. Enriching our value chain is about how we manage our risks while working with our employees, our suppliers and other key partners. When we create value through collaboration, our outcomes are strong and relationships prosperous.

Strategic priorities

Our four value chain focus areas are:

Supply chain management

  • Identify and address key environmental, social and governance risks which fall beyond our direct control
  • Develop and encourage sustainable procurement practices with our partners

Employee engagement

  • Attract and retain high performing employees
  • Develop leaders who are authentic, accessible and performance focused 

Stakeholder engagement  (Find out more in Our Business.)

  • Develop and maintain strong relationships through regular and genuine engagement with Stakeholders
Governance and risk management 
(Find out more in Capital Strength and Operational Excellence.)
  • Integrate sustainability management and performance into our culture, processes and business relationships
  • Maintain a prudent risk profile to ensure we remain a sustainable business and attractive proposition for our investors in both the short and longer term

FY16 progress

TickSymbol B Strong employee engagement of 83%, equal to Global High Performing Norm and eight points above Australian National Norm
TickSymbol CORP 61% of employees now have flexible work arrangements through Flexibility@Stockland
TickSymbol CORP Launch of Stockland Connectivity Centre at Stockland Green Hills redevelopment, enabling enduring local employment and economic development
TickSymbol CORP Best Process Improvement winner at 2015 CIPS Australasian awards for procurement and supply chain excellence

Our progress




Sustainability in our supply chain

Effective management of our supply chain enhances our long-term business performance as it enables us to identify and address key environmental, social and governance risks and opportunities associated with our developments that are beyond our operational control.

Stockland continues to develop and encourage sustainable procurement practices across our supply chain. We expect all of our key supply chain partners (contractors on our development sites, suppliers of corporate goods and services, and service providers at our operating assets) to demonstrate their commitment to environmental and social responsibility.

Among our key initiatives, this year we developed our supply chain framework to provide clear guidance on what we expect from our suppliers and their supply chain in meeting commitments in regards to governance and management, environmental impact, health and safety, social value, human rights and capability and capacity. This is supported by our guideline What Stockland Expects of our Suppliers, which is provided as part of our annual supplier update.

Our initial priorities for the supply chain framework are:

  • Materials – we are seeking greater understanding of the source of goods and services utilised in our developments to enable us to source and specify more sustainable products. During the year we developed minimum requirements for the quality and sustainability of materials to be used in our developments.
  • Earthworks and spoil management – reducing our reliance on virgin materials and reducing spoil to landfill and carbon dioxide emissions in the development of our projects.
  • Local employment and procurement – working with our strategic suppliers to identify opportunities for local employment and encourage local procurement opportunities in the delivery of our assets, particularly in regional communities. By committing to source labour and goods and services from the local communities in which we operate, Stockland seeks to provide a positive and lasting impact on these communities.
  • Capability and capacity – partnering with industry to help the development and construction sector to improve its knowledge of sustainability practices and provide training and skills development opportunities that increase sustainability awareness, education and industry skills and capability.

In recognition of efforts to implement leading procurement and supply chain processes in asset delivery, in 2016 Stockland was awarded Best Process Improvement at the coveted Chartered Institute of Procurement and Supply (CIPS) Australasian awards.

Supporting enduring employment and economic development

As one of Australia’s leading sustainable property companies, we aim to enhance the value we create through positive relationships with our employees, suppliers and other key partners in the community. By working together, we are able to address key environmental, social and governance risks and opportunities and achieve more sustainable outcomes for all.

The Stockland Green Hills Connectivity Centre, launched in June 2016, is one example of how we are working with our business and community stakeholders in this way.

The $372 million redevelopment of Stockland Green Hills in the New South Wales Hunter Valley is expected to be complete by April 2018. The centre will more than double in size to around 70,000 square metres and will feature the first new format David Jones department store in the Hunter, and around 225 specialty shops with a vibrant new dining and entertainment precinct. The redevelopment will generate more than 1,350 direct jobs during construction and over 1,250 permanent, full time jobs in retail and hospitality once completed.

Recognising that unemployment is a major issue for local youth, Stockland joined with construction partner, Brookfield Multiplex and undertook extensive discussions with community stakeholders about what kind of assistance would be of most enduring value.

The resulting Stockland Green Hills Connectivity Centre is a whole-of-community response. For the first time in the Hunter region, jobactive providers, led by youth not-for-profit yourtown, along with Maitland City Council, local employers and community groups, have come together to support and assist those most disadvantaged by unemployment, linking them to job opportunities generated by the Green Hills redevelopment.

Importantly, the Connectivity Centre is focused on finding jobs today as well as creating pathways and training so that people will be job ready for years to come. The centre provides a space for candidate screening, training and job-matching to support employment in construction and retail jobs. It also hosts programs designed to instil vocational skills, build confidence and provide exposure to business culture and mentoring.

The Connectivity Centre is located next to the Stockland Green Hills construction site at 4 Molly Morgan Drive and is staffed by yourtown, five days a week. The centre has been built by Stockland and Brookfield Multiplex with site sub-contractors donating the fit out. Additional funding has been secured from the NSW Department of Industry for resourcing the centre. As at 30 June 2016, more than 200 expressions of interest had been received from people seeking employment across a range of fields and 34 referrals had been made to contractors with vacancies.

Stockland Corporate Reporting 2016 – Enrich our value chain

 




We have a multi-faceted approach to enhancing employee engagement, including career development, and reward and recognition programs, health and wellbeing initiatives, giving and volunteering activities, an inclusive workplace and flexible work arrangements.

Monitoring and promoting employee engagement remains a priority. As such, we have various mechanisms in place to help create a desirable and productive workforce, the most prominent of which are our annual ‘Our Voice’ employee survey, our internal communications strategy and our programs to develop leaders who are authentic, accessible, performance focused and a beacon for talent.

We are also committed to building an aligned and accountable workforce, and a scalable and agile workforce. To deliver improvements in these areas, we undertake targeted learning and development initiatives and a rigorous performance and development review process.

In 2016 we undertook our 12th annual Our Voice survey, achieving an engagement score of 83%. We remain above the Australian National Norm (ANN) and equal to Willis Towers Watson’s Global High Performing Norm (GHPN), with 95% of employees indicating they fully support the values for which Stockland stands for, 93% of respondents saying that they believe strongly in the goals and objectives of Stockland and 94% of respondents indicating they are willing to work beyond what is required to help Stockland succeed. Stockland achieved strong performance across the following areas:

  • Corporate responsibility and sustainability (87%), reflecting our employees’ pride in the contribution we make to the community and society (92%) and the perception that we are a socially (95%) and environmentally responsible organisation (94%).
  • Diversity and inclusion (87%), continues to be a key driver of employee engagement for our employees. As we continue to create a more diverse and inclusive workplace, it is encouraging to note the large proportion of employees who perceive the working environment to be accepting of differences with regard to gender and age (92%), cultural background and/or lifestyle and ethnic  differences (95%), people with disabilities or psychological/physical impairment (85%), and working style (84%).
  • Health and safety (92%), with employees indicating they are aware of their responsibilities to ensure that all areas under their control are safe (97%), that Stockland does a good job of ensuring workers’ health and safety wherever we operate (95%), and prompt and effective action is taken when unsafe conditions are brought to management’s attention (90%).
  • Leadership, with a clear sense of direction from the Executive (83%) and a clear understanding of Stockland’s goals and objectives (94%), we performed 17 points and 15 points, respectively, above the ANN. These results reflect our ongoing focus on employee communication and leadership team visibility in reinforcing priorities and strategic objectives.

The Our Voice survey also identified the following areas for improvement:

  • Work processes and systems (68%); whilst remaining higher than the ANN, this is an area that requires ongoing focus to improve employees’ perceptions of computerised management systems providing information to do their jobs (58%). We have subsequently launched the Core Systems Program to improve our processes and systems (see page X for further information).
  • Work-life quality (67%) saw a two point decline from FY15, but remains two points above both the GHPN and the ANN. This result reinforces the importance of continuing to build on several key projects that were launched in FY16, which aim to improve workload, increase operational efficiency and enhance the flexibility options provided to employees. The establishment of the Wellbeing and Inclusion Employee Advocacy Group (EAG) is also designed to help address this issue.


Employee turnover

We recognise that employee engagement has a direct relationship with both productivity levels and talent attraction and retention. As such, we use key metrics to determine the success of our employee engagement activities, including employee initiated turnover, turnover in the first year and key talent retention.

In early FY14, analysis of our employee turnover data revealed that a disproportionate amount of our employee-initiated turnover was occurring in the first 12 months of service, as 31% of employees left within their first year of service in calendar year 2013 (29% employee initiated). A number of initiatives were undertaken to address this and ensure a consistent recruitment and on-boarding experience for new employees. As a result, there was a significant reduction in employee turnover in FY15 and a more uniform distribution of turnover by tenure group. In FY16, we exceeded our target of 12% for employee initiated turnover for employees with good performance or above, with a rate of 11.8%. However, overall employee initiated turnover in the first 12 months increased in FY16 due in part to concerns regarding the establishment of the Stockland Support Centre. Employee initiated turnover is expected to stabilise as the Centre is further embedded into business as usual activities and its benefits are realised. Find out more about the Stockland Support Centre in Operational Excellence.

Employee engagement and development




Diversity and inclusion

At Stockland, we aim to leverage the maximum potential of our people, irrespective of individual differences, such as gender, ethnicity, age, physical abilities, sexual identity, family status, beliefs, and perspectives.

Our Diversity and Inclusion Steering Committee is chaired by our Managing Director and CEO, Mark Steinert. Mark is also is a founding member of Property Male Champions of Change. The three priorities for our Steering Committee in FY16 included:

  • Increasing the focus on women in management positions;
  • Mainstreaming flexibility and demonstrating more examples of senior managers working flexibly; and
  • Increasing employee awareness and participation in diversity and inclusion.

In FY16, women represented 44.6% of Stockland’s management team and our target is to achieve 50% by 2020. To support this goal in FY16, seven male Executive Committee members sponsored high potential females from the senior manager job band. The program had the dual focus of supporting the career development of high potential females through greater exposure to the Executive Committee and enhancing our male leaders’ understanding of corporate life from a female perspective.

During the year we also implemented a company-wide flexibility campaign, Flexibility@Stockland to give all of our employees the opportunity to openly discuss and access flexible work options. The program centred around managers working with individual team members to identify One Simple Thing that would support greater flexibility. A guide to flexibility is built into our onboarding process for all new employees. Since the launch of this campaign, we have seen a further 36% of employees introduce a flexibility arrangement into their working week on top of the existing 25% of employees with existing flexible working arrangements.

Together with our focus on embracing flexible working and inclusive leadership, our leading edge parental transitions program provides support to employees preparing to commence or return from parental leave. This program has been instrumental in maintaining our parental leave return rate well above our target of 80% again this year. During the year we strengthened our diversity and inclusion governance with the introduction of four Employee Advocacy Groups (EAGs) aligned to our four focus areas for diversity and inclusion. The employee-led EAGs are responsible for setting diversity and inclusion objectives and guiding resourcing and implementation.

This year we were successful in securing Employer of Choice for Gender Equality status from Workplace Gender Equality Agency (WGEA), as one of only two property firms and one of 100 Australian corporates and organisations to achieve this challenging citation. We are currently applying for FY17 accreditation.

Stockland Corporate Reporting 2016




So that we create and maintain these positive relationships and collaboration we aim to:

Maintain 100% of active development projects with Stakeholder Engagement Plans.

Outperform the Australian High Performing Norm employee engagement score of 80%.
Increase women in management to 50% by 2020.
Implement our Sustainable Supply Chain Charter to provide guidance on setting and delivering specific supply chain initiatives.

Our targets




DownloadContent B   Our People Metrics are provided on page 52 of our Annual Review. 
Download Annual Review (PDF)

  

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