Our workplace and people

Keller Safety Framework

The construction industry presents significant safety challenges, particularly in some of our emerging markets, where the safety culture within the industry, and indeed in society at large, is less well developed than in our mature markets. In order to have a consistent approach across the Group and to raise the safety performance of all our businesses to the standard of the best, we have developed a safety framework, which we call our ‘Think Safe’ programme. This is a system which links together different aspects of our safety management including our Safety Goal, Principles, Policy and Minimum Standards. Management of every business or operation is responsible for following the Safety Principles and implementing and maintaining the Minimum Safety Standards.

Safety performance in 2011

It is bitterly disappointing that, in a year in which safety was higher than ever on our agenda, we must report four deaths resulting from work-related accidents. Three of these involved Keller employees and the fourth involved an employee of a sub-contractor. Such accidents are always felt profoundly by colleagues around the Group and they remind us of why we must be relentless in our efforts to eliminate work-related accidents.

Investigations into how these and other accidents occurred and how they might have been avoided invariably point to the importance of having a strong safety culture, in which individuals check their own behaviour and that of their colleagues and, in so doing, prevent the unsafe acts or unsafe conditions which lead to accidents.

We recognise that changing the safety culture starts at the top and in recent years we have focused increasingly on making our senior managers clearly accountable for safety. In 2011 more of our senior managers were involved in conducting site safety tours (where safety is the sole purpose of the visit) and this will be extended further in 2012. We have recently conducted Safety Leadership Workshops in all of our regions, focusing on the role of senior managers in leading safety tours, accident investigations and annual assessments against our Minimum Safety Standards. In 2012, all direct reports to the Chief Executive and their direct reports will have specific safety objectives linked to their bonus arrangements which, if not met, will reduce their bonus potential.

Last year, we also brought together 25 of our safety professionals from around the Group for a four-day conference in London to highlight the importance of safe behaviour as the key to improved safety performance; develop safety skills, tools and techniques; and improve the consistency in approach to safety management across the Group.

Turning to our safety statistics, we use the accident frequency rate (AFR) and accident incident rate (AIR) to track safety performance, where AFR is the number of accidents per 100,000 hours worked and AIR is the number of accidents per 100,000 employees and where ‘accidents’ comprise fatalities, major injuries (as defined by the Health & Safety Executive in the UK) and injuries involving more than three days’ absence. The AFRs and AIRs for 2011 and 2010 are shown in the table below.

Reporting for 2012 will reflect our new divisional structure.

Changes in the annual Accident Frequency Rate (AFR) and Accident Incident Rate (AIR)

Excludes: Waterway acquired June 2010

Comparisons with industry standards

North America

The common safety measure used in the US construction industry is the experience modification rating (EMR). The lower the score, the better the safety record. In 2011, the EMR for the Group’s US foundation companies was 0.8, compared with an industry standard rating of 1.0.

An alternative safety measure used in the US is the total Recordable Injury Rate (RIR). The 2011 RIRs for our US businesses are shown below, alongside the industry average for 2010 (the most recent), published by the Bureau of Labor Statistics.

Business RIR to industry average

EMEA

An alternative safety measure used in the US is the total Recordable Injury Rate (RIR). The 2011 RIRs for our US businesses are shown below, alongside the industry average for 2010 (the most recent), published by the Bureau of Labor Statistics.

National comparator data relating to our principal markets in Western Europe (using the closest available comparators) are given in the table below.

Relevant and/or up-to-date national comparator data are not available for Australia or our Asian countries.

2011 Performance against safety objectives and 2012 targets

Last year, one of our objectives was to improve the reporting of near-misses as a leading safety indicator. Whilst the number of reported near-misses did not increase, the number of reported near-misses for which a full investigation was carried out and lessons learned disseminated did increase. In 2012 we will continue to encourage the reporting and investigation of near-misses, each of which we view as a safety improvement opportunity.

In 2010 we introduced a process for our businesses to assess their progress against our Minimum Safety Standards. Baseline assessments were carried out by each of the divisions; however, the process was largely subjective and there was some inconsistency of approach.

2012 Target: Each business unit to carry out a rigorous and documented safety assessment

In 2012, our safety professionals are updating the process to improve its objectivity, consistency and rigour, before further assessments are carried out in each business.

Last year, we aimed to involve more of our senior managers in site safety tours. We achieved this by extending the requirement to carry out safety tours to all of our North American companies and to those in Asia. (Anderson in the US and Keller in the UK already had established systems in place for safety tours.)

2012 Target: 100% of senior managers’ safety tours to be completed

In 2012, all direct reports of the Chief Executive and their direct reports are expected to undertake a number of site safety tours with findings and actions properly closed out and documented.

Being a responsible employer

Keller employs over 6,000 people worldwide, most of whom are working in front-line roles meeting with, and delivering for, our customers. We are only as good as our employees, which is why we want to be recognised as a responsible employer which people are proud to join.

As a Group, we believe in treating all employees with dignity and respect and do not tolerate any form of harassment, discrimination or bullying. We are committed to creating a working environment in which every employee is employed and promoted solely on the basis of his or her merit and personal contribution. We aim to provide fair employment opportunity to all whilst not offending, or being insensitive to, the traditions and cultures of countries in which we operate. This is not only about “being fair”; it also makes sound business sense.

We believe that equal opportunity means hiring and retaining the best people, developing all employees to their potential and using their talents and resources to the full. Diversity of people, skills and abilities is a strength which will help us to achieve our best.

Gender diversity at the Board level is discussed in the corporate governance report on page 39. Below Board level, women represent 8% of our senior managers (being managing directors and their direct reports, or equivalent) and 6% of our engineers and contract managers. These numbers are not unusual for our industry. In 2012 we will be surveying our women managers to identify what they perceive as the barriers which may prevent some women from joining the Group or progressing within it and how they can best be supported to meet their career goals within Keller.

Our businesses communicate regularly with their employees using a number of forums and media channels which provide employees with an opportunity to express their views. These include company newsletters, consultative councils, suggestion schemes, electronic messaging as well as informal, company-wide social events.

We are committed to providing training and development opportunities which enable employees to perform at their best and increase their contribution to the Group. In addition to technical and competency based training, management training programmes operate in all divisions. For example, Keller UK, which has been an ‘Investors in People’ employer since 2005, has a management development programme called ‘Keller Futures’ which includes management leadership modules specifically aimed at improving skills, competencies and behaviours of site supervisors, engineers and middle managers.

At the Group level, we run a strategic development programme, through which every two years some 20 to 25 senior managers from around the Group participate in three modules, each lasting one week.

Keller Australia has adopted a similar programme which it is running for middle managers.

One of the ways in which we measure how well we are doing as an employer is to measure our staff turnover, which is referred to in the operating review.