The Company’s success depends heavily on the sense of ownership of every employee. Those with a strong sense will always care.
Human resource excellence is a part of our strategy to enhance Adaro’s competitive advantage. We maintain a number of initiatives to ensure that our human assets support our goals to build a capable, talented and loyal workforce. These include standardizing human resource management, building our corporate culture based on our “I MORE” values – Integrity, Meritocracy, Openness, Respect, Excellence – and preparing highly qualified future leaders, those who have excellent competencies in their respective areas as well as strong dedication and professional character.
EMPLOYEE ENGAGEMENT SURVEY
We believe that the Company’s success depends heavily on the sense of ownership of every employee. Those with a strong sense of ownership will always care and give their best to the company. They will be willing to work hard, going the extra mile. In the other words, employees with a strong sense of ownership usually also have a high level of engagement to their job and their company.
From the end of 2014 to the beginning of 2015, with the help of leading international HR consultant Towers Watson, we conducted an employee engagement survey to measure the engagement level of employees throughout the group. It o ered employees the chance to voice their opinions about the company, from things the company has done well to frustrations and changes they would like to see
The survey, to which 7,894 employees participated – around 87% of Adaro Group permanent sta – resulted in a sustainable engagement score of 82. The key determinants for this index are leadership and corporate culture, career development and teamwork. Benchmarking against Tower Watson’s standard, our sustainable engagement score is three points higher than the average norms for most global companies in the mining industry but three points lower than the average norms for the broader category of high-performing global companies. Although the survey indicated a high engagement level among employees, we know we still have much room for improvement.
REMUNERATION SYSTEMS ALIGNMENT ACROSS BUSINESS UNITS
We understand that job rotations that move employees between companies will be increasingly necessary for employee development and to prepare future leaders. Without standardized remuneration systems, however, it would be di cult for us to apply this, so in 2014 we began aligning the remuneration systems and standards across the companies within the group, which consisted of salary standard, bonus and benefits. In 2015 we finished this process successfully.
HARMONIOUS INDUSTRIAL RELATIONS
Throughout 2015, there were no co- ordinated protests by employees in any of our companies. This reflects the good relationship between management, labor representatives and our employees. It is a result of e ective communication between management and the employees’ representatives through bi-partite forums, which have built a high level of trust. Problems in our group companies are by default resolved through deliberations to reach consensus.
The renewal process of our subsidiaries’ Collective Labor Agreement, which expired in 2015, was completed without any major obstacles, as both management and the employees’ representatives had the same goal, to maintain the balance between productivity enhancement and employee welfare.
SUCCESSION PLAN FOR PREPARING FUTURE LEADERS
Although in 2015 the business condition was still under pressure because coal prices had not recovered, we remained consistently active in developing the careers of employees being groomed as future leaders. All high-achieving employees with high competence and appropriate character are o ered the same opportunity to earn promotion to higher positions. Adaro’s succession involves the boards of directors at all our subsidiaries to ensure that the process is conducted objectively.