Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
At Mirvac, our aim is to build a diverse and inclusive culture that values a diversity of perspectives and allows people to feel like they can be themselves and perform at their best.
Within our diversity and inclusion strategy, now in its third year, we’ve outlined four key areas of focus, being: diversity of thought; an inclusive culture; flexibility; and gender balance. In FY17, we made some great progress under each of the key areas, including:
To encourage diversity of thought, we recognise that different work styles need to be respected. To support this, a number of team workshops ran across the business during the financial year to highlight how valuable different work styles can be for teams. Our innovation program, Hatch, has also provided us access to a range of tools and methodologies that encourage different perspectives and shows us how to leverage these when designing solutions.
Mirvac’s Diversity & Inclusion Council identified a number of areas that are needed to create an inclusive culture, with inclusive leadership being a major focus. To emphasise our commitment to this, we’ve incorporated a focus on inclusive leadership into our Leading@Mirvac training program for new people managers and as an expectation in our Leadership Success Profiles.
Technology has also played a role in helping leaders to be more inclusive. Following the Transforming the Way We Work project, managers are now able to make meetings more inclusive, with employees given more flexibility around where they work.
Mirvac has undertaken a significant amount of work in the past 18 months to mainstream flexibility. Along with Transforming the Way We Work, we introduced a Flexibility Charter and a new Flexibility Policy to support a more agile working environment.
Building Balance and My Simple Thing were also implemented to empower our people to achieve better work/life quality.
Our efforts to create a more flexible workplace appear to be making a difference, with this year’s engagement survey showing that 76 per cent of Mirvac employees had some sort of flexible arrangement in place, compared to 44 per cent in 2015. In addition, our survey results demonstrated that more employees with flexible working arrangements in place reported higher levels of engagement. This year, we also saw that flexible working arrangements were more evenly spread across both males and females.
Mirvac is proud to be one of just a handful of ASX-200 listed companies with a 50 per cent female representation on its Board, which we achieved well ahead of our original 2018 target.
As well as having diversity targets for female representation at various levels in the business, we’re focused on having female talent in our succession plans for leadership roles, and require 50 per cent of candidates on leadership recruitment shortlists to be female. In FY17, we were delighted to exceed our target of women in senior leadership positions, which has increased by over 7 per cent in the past three years.
Our continued strategic focus on gender balance is having a positive impact on gender pay parity. The Group’s annual gender pay parity review showed the organisation-wide pay gap had decreased by 12 per cent in the past five years, while over three years, the by-level pay gap reduced by 3 per cent and the like-for-like gender pay gap decreased from 3 per cent to 0 per cent.
In addition to this, we introduced a Domestic and Family Violence Leave Policy, along with other support initiatives for employees who are directly affected by domestic and family violence. Mirvac is also working with White Ribbon Australia to obtain accreditation and to help raise awareness and provide education around domestic violence for all employees.
The considerable work we have done contributed to Mirvac being recognised and awarded with the Employer of Choice for Gender Equality citation for the third year in a row. This prestigious citation acknowledges our ongoing commitment to gender equality.
"The beautiful thing about My Simple Thing is that it gives our employees the freedom to achieve better balance in a way that resonates with them."
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz
Last year, Mirvac launched Building Balance, an initiative aimed at encouraging our construction employees to adopt more flexible work practices and improve their health and wellbeing. As part of the program, construction employees were also asked to think of one simple change they could make to improve their overall work/life quality. By providing opportunities for our construction teams to work in a more flexible way, we have managed to shift to a culture that’s less about putting in the hours, to one that’s more about working as a team to achieve outcomes and results.
In FY17, My Simple Thing was rolled out to all Mirvac employees to give everyone an opportunity to improve their health and wellbeing.
“The beautiful thing about My Simple Thing is that it gives our employees the freedom to achieve better balance in a way that resonates with them,” said Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz.
Mirvac launched My Simple Thing by asking the Executive Leadership Team to communicate their own ‘simple thing’ to the Group. Employees were then asked to follow suit, and to drive momentum a Yammer campaign ran on the Intranet asking employees to share their own ‘simple thing’ with their colleagues.
A fantastic outcome of My Simple Thing is the way it’s highlighted that flexibility is not just something for working mothers, but rather, an important part of everyone’s working life.
Services Design Leader, Foti Papoulis, for instance, leaves work early one afternoon a week to coach his daughter’s under 7s soccer team. “It’s the first time the girls have played soccer and the first time I have coached. It’s great to have the flexibility and it also gives me time out from my busy schedule,” he says.
Meanwhile, Deputy Group Company Secretary, David Sellin, uses My Simple Thing to flex his work hours so that he can train for triathlons. “I may not win any races but I love the exercise and the friendly competition the sport brings.”
My Simple Thing has also shown that flexibility doesn’t necessarily mean working less hours; it’s about working smarter and being creative in the use of time and technology to achieve results.