Indigenous Employment Evaluation Framework December 2016 Centre for Social Responsibility in Mining Sustainable Minerals Institute The University of Queensland, Australia www.csrm.uq.edu.au
The Centre for Social Responsibility in Mining (CSRM) is a leading research centre, committed to improving the social performance of the resources industry globally. We are part of the Sustainable Minerals Institute (SMI) at the University of Queensland, one of Australia s premier universities. SMI has a long track record of working to understand and apply the principles of sustainable development within the global resources industry. At CSRM, our focus is on the social, economic and political challenges that occur when change is brought about by resource extraction and development. We work with companies, communities and governments in mining regions all over the world to improve social performance and deliver better outcomes for companies and communities. Since 2001, we have contributed to industry change through our research, teaching and consulting.
Indigenous Employment Evaluation Framework About this evaluation framework This Indigenous Employment Evaluation Framework has been developed to help organisations 1 self-assess their commitment to and overall support for Indigenous employment. The Framework draws on various studies of Indigenous employment and procurement carried out at the Centre for Social Responsibility in Mining (CSRM) at the University of Queensland. While focused on the Australian on-shore extractive sector and associated Aboriginal and Torres Strait Islander populations, much of the learning is applicable to other sectors and to the broader fostering of Indigenous employment. On this basis, the term Indigenous is used throughout the framework as a synonym for Aboriginal and Torres Strait Islander, and the recommended actions are not exclusive to the extractive sector. Some of the terms used are specific to the extractive sector and are explained in the Definitions section. The framework presumes that the organisation being evaluated has an overall business and operational strategy that cascades to departmental management systems and defined processes; and within this architecture, employment and human resources procedures are clearly defined, repeatable and interlinked. It also assumes the organisation s human resources practices comply with all relevant legislation, including Equal Employment Opportunity and diversity. How to use this evaluation framework The evaluation tool is intended to capture an organisation s situation at a point in time. It includes four Key Dimensions of analysis and a Baseline tool. The attributes and actions listed, and by implication recommended, are individual inputs within an overall strategy aiming to improve levels of Indigenous employment. The framework does not attribute relative or absolute merit to any of the particular input actions it advocates. Attempting broad deployment of too many elements can be counterproductive and some specific actions may be more effective in a given context. On this basis, a refined evaluation of potential elements in context is required to identify which will have more leverage in that location. A critical mass of input actions working well will result in greater levels of Indigenous employment. The framework also includes a Baseline section (from p13) for recording the organisation s current Indigenous employment performance against specific indicators. This is designed to develop a baseline and record actual outcomes over time as selected input actions are implemented. The framework can also be used to compare assets performance and share best practice across the organisation. 1 For the purposes of this framework, organisations are businesses, not-for-profit agencies, government departments and other entities that employee more than 50 people. Page 3 of 15
Organisational evaluation should take place in small groups with representatives drawn from different relevant departments, including Human Resources, Social Performance and other staff accountable for working directly with Indigenous people. Following evaluation of the baseline situation, organisations can then determine how far they want to progress their level of Indigenous employment and which actions they will prioritise to achieve this. The evaluation tool is divided into the following key dimensions: promoting and enabling a positive organisational environment; targeted Indigenous employment strategy; competent Indigenous engagement; and management systems. Page 4 of 15
The questions presented under each of these categories seek to reveal the practical detail of the organisation s implementation plans and actions. Answer each question using the rating levels below and provide comments to support the rating. The evaluation can be completed in a workshop or by observation and interview, with results recorded directly in this document. The rating levels are defined below. 0 Not implemented. 1 Planned commitments to implement is demonstrated by management sign off of budget, resources and accountabilities. 2 Base implementation implemented with basic results. 3 Managed and embedded Indigenous employment is systemically managed with appropriate measurement and evidence of continuous improvements over time. It is embedded into the culture and systems of the organization, and will be sustained beyond the initial implementation and/or departure of a champion. It is not an ad hoc process outside the main employment processes. N/A Any responses of Not Applicable should be explained in the comments field. Page 5 of 15
Dimension One: Promoting and enabling a positive organisational environment This dimension considers organisation-wide comprehension of the intention and benefit of Indigenous employment. There should be alignment of organisational purpose for Indigenous employment and a well-defined business case to support it. It is imperative that the business case for fostering Indigenous employment is reflected in policies and procedures, that this is understood and embedded across the organisation. Achievement should be supported by encouragement and recognition of excellence. Corporate intent needs to be linked to strong support for asset-level comprehension, and implementation at department and individual level. Corporate level Question N/A 0 1 2 3 Comments Is there a clearly articulated business case for increasing Indigenous employment? Is Indigenous employment identified in the organisation s business strategy? Does this cascade into the organisation s business plan? Do formal planning processes consider opportunities for Indigenous employment, including workforce planning, recruitment and career development? Does the organisation have a policy statement that recognises and supports Indigenous employment? Does the policy refer to career development opportunities for Indigenous employees? Is the policy publicly available, for example on the organisation s website? Is achievement of policy outcomes published on the organisation s website? Is the policy supported by guidelines that clarify and explain its intent? Is the policy aligned with relevant government policies? Is there a documented process and frequency for review of the policy? Do the CEO and other senior executives publicly refer to the policy? Does the HR policy include specific adaptions for Indigenous cultural differences, such as provisions for cultural leave? Are there specific Corporate roles with accountability for implementing the policy? Does the company seek recognition through relevant external or internal Indigenous employment awards?
Asset level (can also be site, operation or project) Question N/A 0 1 2 3 Comments Does the asset recognise specific local Indigenous presence? Does the asset have an explicit policy for local Indigenous employment, including a definition of local Indigenous people? Is the policy promoted in the workplace? Is implementation of the policy linked to government policy, regulatory requirement and programs aimed at Indigenous employment? Is Indigenous employment incorporated into Community and/or Indigenous Land Use Agreements? Is the asset s commitment to Indigenous employment included in employees & contractors on-boarding procedures and induction programs? Does the asset require major contractors to align with the asset s Indigenous employment policy and contribute to achieving contractual targets? Does the asset allocate staff resources to support Indigenous employment programs? Is there a specific asset-based role with management accountability for Indigenous employment? Are Indigenous employment objectives included in key role descriptions, including Human Resources, Social Performance, Training and line leadership roles? Are there asset champions for Indigenous employment? Are these asset champions for Indigenous employment in front-line roles, including Operations? Does the asset have any partnerships that support Indigenous employment? Does the asset recognise and celebrate Indigenous employment achievement and champions? Page 7 of 15
Dimension Two: Targeted Indigenous employment strategies This dimension evaluates if an organisation has implemented targets and strategies to increase Indigenous employment, while maintaining transparent, open and fair recruitment processes, accountability and due process. Organisations may need to actively support and develop the capacity of local Indigenous candidates, and candidates should be informed about the organisation s recruitment and employment procedures. Indigenous employment strategies must also focus on employment at all levels. Employment strategies such as mentoring and coaching should be implemented to increase employee retention and enable career development. Question N/A 0 1 2 3 Comments Does the asset have publicly stated Indigenous employment targets that are consistent with corporate intentions/targets? Does the asset have publicly stated local Indigenous employment targets? Are key stakeholders, including Indigenous groups, involved in setting targets? Do the targets reflect the demographics of the community/ region (percentage of population that is Indigenous)? Are the targets incremental to achieve increased Indigenous employment over time? Are the targets promoted in the workplace? Is there a specific timeframe for achieving these targets? Does the organisation require EPCM and Tier 1 contractors to include Indigenous employment targets in contracts? Are EPCM, Tier 1 and 2 contractors monitored for Indigenous employment rates? Is an Indigenous work readiness program in place? Do Tier 1 contractors use the organisation s work readiness program? Does the alcohol and drug testing process educate and not permanently restrict employment? Does the security clearance system not automatically eliminate all candidates with a police record? Is there an Indigenous Traineeship program in place? Is there an Indigenous Apprenticeship program in place? Is there an Indigenous Cadetship/Scholarship program in place? Does the Indigenous employment program include mentoring, training and coaching? Page 8 of 15
Does Indigenous employment support extend to employees families, particularly in the first 18 months of employment? Is there a career development system for Indigenous employees that records individuals career goals, development discussions and plans, and development opportunities (potential and realised)? Page 9 of 15
Dimension Three: Competent Indigenous engagement To increase Indigenous employment, professional cultural competency is required of Human Resources, Social Performance and Operational staff, technical demand managers and senior management. There must be appropriate communication with Indigenous candidates to ensure they understand the recruitment process and are aware of employment opportunities. Question N/A 0 1 2 3 Comments Does the organisation provide local cultural awareness training at all worksites? Is cultural competency included in supervisor and management role requirements? Are employment opportunities regularly and appropriately communicated to local Indigenous communities? Is there specific engagement with potential Indigenous applicants to explain the end-to-end recruitment and employment process? Is there sufficient flexibility in recruitment approaches, including face to face recruitment in regional locations and support for preparing applications and CVs? Is sufficient and actionable feedback provided to unsuccessful Indigenous applicants? Are Indigenous applicants able to communicate directly with recruitment staff? Do assets work with local employment agencies? Has the organisation adapted recruitment and employment processes for context-specific situations? Do training staff have knowledge, skills and experience in designing and implementing Indigenous training programs? Is there a formal exit interview system and are Indigenous exit interviews consistently conducted? Is the information from exit interviews analysed and used to inform Indigenous employment strategies? For construction projects, are transition arrangements in place to assist Indigenous employees transition to the operating phase? Are successful Indigenous employment case studies written up, published and celebrated? Page 10 of 15
Dimension Four: Management Systems Organisations should have management systems in place that support their publically stated Indigenous employment policies. Management systems should be designed to enable Human Resources staff to work collaboratively with teams responsible for Indigenous engagement and social performance. Performance should be measured against specific quantifiable targets, with results reported internally and externally. Question N/A 0 1 2 3 Comments Is there a register that identifies key elements that influence Indigenous employment outcomes? Is Indigenous employment addressed in the annual planning/budgeting cycle including target setting? Are there explicit budget provisions for Indigenous employment and training? Have risks and challenges to Indigenous employment, and mitigation strategies been identified? Has Indigenous employment baseline information been recorded? (see following section on Baseline) Are there Key Performance Indicators (KPIs) in place for tracking Indigenous employment achievement? Are these KPIs measured regularly to track achievement over time? Do management roles accountable for employment and social performance have success-linked recognition? Is the recognition of social performance success and Indigenous employment success consistent? Are contractors required to report their actual and percentage Indigenous employment? Does contract tendering include weighting criteria for Indigenous employment? Is a database maintained of local Indigenous and Traditional Owner workready candidates, including skills, experience and qualifications? Does the database specifically identify Traditional Owners? Is Indigenous employment achievement regularly reported internally at asset and corporate level? Does the recruitment management system prompt priority assessment of Indigenous candidates? Page 11 of 15
Are all Indigenous employment plans, programs and activities documented? Is there a process for conducting an audit of Indigenous employment policies and procedures? Is there a documented process for receiving, recording and responding to complaints regarding Indigenous employment? Page 12 of 15
Baseline: Indigenous employment performance indicators The dimensional analysis sections of this Evaluation Framework are designed to review input measures for improving Indigenous employment. Implementation of a range of inputs over time will result in improved levels of Indigenous employment. Actual results will vary according to how many inputs are implemented, how well they are implemented, how well they are managed and complement each other, and the degree of conviction by the organisation and accountable people to make them work as intended. Beyond input measures, the questions below are examples of output indicators that can be used to measure actual performance. Not all of the indicators are necessarily appropriate to any particular circumstance, and selecting 1 to 3 particularly relevant indicators (Key Performance Indicators) is a better way to track performance than trying to track too many. Selecting several of these indicators according to context and intent will allow an organisation to evaluate its actual performance over time. Tracking an organisation s performance trajectory relative to itself over time is generally more useful than attempting to benchmark performance against other companies. Continuous improvement is more important than a ranking score, particularly when highly variably operational and social contexts means it is apples and oranges that are being compared. Question Current Year Previous Year 2 Years ago Comments What is the current organisational/asset target for Indigenous employment each year, broken down by direct employees and contractors? What is the current organisational/asset actual performance for Indigenous employment each year, broken down by direct employees and contractors? What is the current organisational/asset target for Traditional Owner employment each year, broken down by direct employees and contractors? What is the current organisational/asset actual performance for Traditional Owner employment each year, broken down by direct employees and contractors? What is the current organisational/asset target for Indigenous employment as a % of total employees, broken down by direct employees and contractors? What is current organisational/asset actual performance for Indigenous employment as a % of total employees, broken down by direct employees and contractors? What is the current organisational/asset target for Traditional Owner employment as a % of total employees, broken down by direct employees and contractors? Page 13 of 15
What is current organisational/asset actual performance for Traditional Owner employment as a % of total employees, broken down by direct employees and contractors? What are Indigenous employee numbers by role type (trainees, semi-skilled, graduate, supervisor, manager, senior manager etc)? What are Indigenous employee numbers by position type (permanent, contractor, full time, part time)? What are Indigenous employee numbers by gender? What is the average retention rate for Indigenous employees? Page 14 of 15
Definitions and explanation Aboriginal and Torres Strait Islander/ Indigenous Treated as synonymous for the purpose of this document: persons and entities that meet Indigenous identification criteria, as agreed by themselves and others, based on maintained pre-european ancestral affiliation and land-connections. Local Indigenous / Traditional Owner Indigenous employees who have ethnographic connections to lands and waters in the immediate vicinity of the Asset, usually defined in some form of local level agreement such as an Indigenous Land Use Agreement. Key Performance Indicators A quantitative or qualitative value that provides a simple and reliable means to measure progress towards a longer-term objective; in the context of this guidance, an Indigenous employment target (such as aggregate annual expenditure in $ or % of total organisational employment expenditure). EPCM Engineering Employment and Construction Manager companies specialising in these services that are contracted by extractive companies to undertake much of the construction and on-going project work at work sites. Tier 1 (suppliers) A business contracted by an extractive company to directly supply goods and/or services. Tier 2, 3 & 4 (suppliers) Businesses supplying goods and/or services to extractive companies through sub-contract arrangements. Page 15 of 15