WESFARMERS SUSTAINABILITY REPORT 2018

Safe and inclusive culture

Safety

Kmart’s business strategy outlines its commitment to ensuring its business operations do not adversely affect the safety, health or wellbeing of any people affected by its business including team members, customers, visitors, suppliers and contractors. Kmart’s corporate values encourages all team members to ‘Reach Higher’ and ‘Take Care’ to ensure that all team members go home in the same, if not better, condition than when they arrived.

In the 2019 financial year, safety objectives focused on injury prevention and safety leadership. The overarching goal of the safety team was a 10 per cent reduction in TRIFR via an investment in three primary health and safety initiatives, introduction of a centralised health and safety advisory line, manual handling training for site managers known as Moving Safely and knowledge and behavioural observation programs embedded in monthly site programs.

Kmart finished the year with a 8.3 per cent increase in its TRIFR of 20.8 and a 6.7 per cent reduction in recurrent workers compensation premium as a percentage of remuneration (0.76 per cent). Throughout the 2019 financial year, the safety program received strong awareness, however, it was not achieving a measurable impact on safety results. In the fourth quarter of the 2019 financial year, it was identified that further investment was required. A new safety organisational structure was introduced to enhance role accountability. The refreshed safety program entitled ‘Every Hour, Every Day, Every Body, we all lead health, safety and wellbeing at Kmart’ was launched. The program establishes key priorities and deliverables under four pillars: Safety Promotion & Prevention, Regulatory Governance, Wellbeing and Injury Rehabilitation. These four pillars are underpinned by a balanced scorecard of both lead and lag indicators as well as a commitment to safety leadership and continuous improvement. This strategic program has been established to take Kmart into the 2020 financial year with clear deliverables under each of the pillars.

Target’s management approach for safety includes a robust and comprehensive safety management system supported by senior and operational managers. Throughout the 2019 financial year, there has been an emphasis on proactive return-to-work and the promotion of the Target ‘First 15 Minutes’ process which includes the offering of modified duties for injured team members.

Target achieved a sixth year of improved safety performance with a 11.2 per cent TRIFR reduction to 16.7, as well as meeting all positive performance indicators. This success has been made possible by efforts to ensure all team members, customers, contractors and visitors are safe when visiting Target stores. In April 2019, the results from the Target Your Voice team member survey was communicated to the business. Results from the safety-related questions received an 84 per cent favourable score versus an average of 64 per cent. 

Key projects delivered in the 2019 financial year included provision of safety leadership training to state leadership teams with outcomes including improved knowledge and engagement of safety leading practice which inspired improved performance within store teams towards achievement of TRIFR reductions. In particular a continued ‘gloves on for safety focus’ led to a 45 per cent reduction in laceration medically treated injuries.

In partnership with all Wesfarmers businesses, Target and Kmart have been active participants in the Wesfarmers Safety Steering Committee and have developed Driving Peak Performance Safety Plans. These plans outline Target and Kmart’s 2020 - 2022 strategy, objectives and key projects to further improve safety, wellbeing and engagement performance.

Diversity and inclusion

At Kmart in the 2019 financial year, women in leadership roles reduced slightly from 43.1 per cent to 42.6 per cent. This reduction was partly due to the restructure of the Kmart Leadership Team in 2019 when four female leaders chose to pursue other opportunities for career progression within the Wesfarmers group. A paid parental leave policy was introduced effective 1 July 2019 to support the retention of women in leadership roles. An audit was completed by 20-First, identifying flexible working arrangements as a key consideration for achieving gender balance. Kmart now has a plan which is focused on developing and implementing flexible working solutions in the financial year 2020 to support talent acquisition and retention of gender-balanced leadership teams. Kmart team members with Indigenous backgrounds increased from 1.7 per cent to 1.9 per cent and the number of focus stores increased from twelve to eighteen. Store ’listening sessions’ conducted by senior leaders identified an opportunity for greater engagement with Kmart store leaders and their local communities. There were 150 people with disabilities employed in Australia during the financial year.

At Target, women in leadership roles increased from 44.8 per cent to 48.0 per cent. An audit was conducted by 20-First, which identified paid parental leave and a perceived gender imbalance in some areas as key considerations to be addressed. As a result, the revised paid parental leave policy was launched in July 2019. An internal audit is currently underway with a diversity recruitment strategy being developed to review the approach to internal promotion and to ensure gender balance remains a priority. Target Team members with Indigenous backgrounds now represent 1.4 per cent of the total Australian headcount, increasing from 1.3 per cent at the same time last year. Target will continue to deliver greater Indigenous employment opportunities as a strategic recruitment plan and cultural awareness training programs are deployed to selected stores.

Kmart Group - Safety performance