Remuneration

We have developed a range of incentive programs designed to support attraction, retention and a culture of performance. Part time employees have access to the same benefits as full time employees on a pro rata basis. These include a staff discount card, access to the Woolworths Employee Credit Union and discounted private health insurance.

Our remuneration structure is comprised of two components – fixed remuneration (base salary plus superannuation) and a variable, performance-based component. The cash-based short term incentive plan (STIP) is made available to all managerial salaried employees and the long term incentive plan (LTIP) is offered to managers who play a critical role in the long term success of our business, such as executives and Supermarket and BIG W store managers and buyers.

Share Purchase Plan (SPP)

We encourage employees to become shareholders in our business as this provides a greater sense of ownership and personal involvement in the company. In 2007–08, we introduced a new Share Purchase Plan (SPP) to make it easier for employees to become shareholders. The new SPP is an annual invitation allowing participating employees to acquire Woolworths Limited Shares using pre-tax income, rather than after-tax income. Participation is entirely voluntary.

During the 2007–08 financial year, 18,593 employees accepted the invitation.

KiwiSaver

In April 2008, the New Zealand Government introduced a retirement savings scheme for working adults, KiwiSaver. Contributions are made by both the employer and the employee.

To give our employees a headstart in saving for their future, Progressive Enterprises offered employees a number of benefits that went above the requirements. These included:

• Offering KiwiSaver contributions to members of staff under 18 years of age.
• Contributing 1% above the minimum required contribution by employers during the first year, thereby doubling the contributions participating employees will receive in that period.
• A transitional “2 + 2” arrangement to assist employees in adjusting to making contributions. This allows employees to make a 2% contribution during the first year, rather than the 4% usually required.

Performance development

All salaried employees undertake an annual performance review with their manager. Once the Company business plans have been set and senior executive key performance indicators (KPIs) developed, these KPIs are incorporated into the performance criteria of each manager to ensure everybody in the business is working towards the same broad goals.

The purpose of annual (and in many cases half yearly) reviews is to set specific goals and objectives for the year ahead for each employee, review the previous year’s performance and identify a development plan to be implemented that year. The outcome of the review is also reflected in the employee’s annual remuneration review and STIP.

Non-salaried staff receive a review during and at the conclusion of their probation period.

Recognition

We are very proud of our people and aim to recognise their achievements as often as possible. A range of individual, team and store award programs that recognise outstanding accomplishments for community work, customer service excellence and business performance are offered throughout all divisions. We actively seek opportunities to identify and nominate talented employees for recognition. In 2007–08, some notable achievers were:

Internal recognition
Established in 1995, the Paul Simons Awards is an annual awards program that recognises the development of young people within Woolworths. The awards are a tribute to Paul Simon’s outstanding contribution to Woolworths and recognise his long held interest in the development of young people. Paul Simons started as a trainee manager in 1954 and went on to play a significant role in every aspect of Woolworths’ operations for more than three decades.

Participants are nominated from across all divisions and compete in the following categories:

• National Certificate II/III Trainee of the Year.
• National Certificate IV Trainee of the Year.
• National Apprentice of the Year.
• National Trainee Buyer of the Year.
• National Graduate of the Year.
  

This year 52 participants competed for a place in a three day program in Sydney and the opportunity to participate in a development opportunity suitable for their area and level in the business.

External recognition
The Joe Berry Award has recognised outstanding young achievers in the retail business since 1986. There are two categories within the award:

• Young National Executive of the Year for 35 years and under.
• ASMCA Scholarship (Association of Sales and Marketing Companies Australasia) for 25 years and under.

In 2008 one of our employees won the Young National Executive of the Year including a prize of a $5,000 scholarship towards education and development. Another of our employees was a finalist in the same category. The New South Wales finalist for the 2008 ASMCA scholarship was also a Woolworths employee.

Approximately 70 Woolworths employees entered the competition in 2008.

Absenteeism

All full time and part time employees have access to personal leave so they can take time off either due to their own illness and/or injury or to provide care and support to a member of their immediate family or household. In cases where an employee is absent from work for an excessive amount of time and this impacts on their ability to perform the requirements of their role, an assessment and investigation of the employee’s condition is undertaken. This helps us to work with the employee to identify the appropriate next steps.

Number of absentee hours in 2007–08
	Absentee leave as a % of total paid hours
Supermarkets	2.9%
BIG W	2.3%
Logistics	4.1%
Liquor	1.9%
Petrol	2.0%
Dick Smith Electronics	1.7%
IT	2.4%
Corporate	3.2%

Designate Reporting © 2008