Ramsay Australia Workforce ReportHuman Resources / 2015

3 Overview

3 Scope

3 Key Performance Indicators

4 Majorinitiativesandachievementsinfiscalyear2014

Contents

3 Ramsay Australia Workforce Report 2015

Ourstrongfocusonpeopleisembeddedthroughouttheorganisation’sethosofPeopleCaringforPeople,andthisisrepresentedbyauniquecultureandasetofvaluescollectivelyknownas“TheRamsayWay”.Asalargeemployer,ensuringasustainableworkforceofapproximately27,000iskeytoachievingourgoalsandwemustensurethatourworkplacerelationsstrategiesand management practices support and enhance the deliveryofhighqualityhealthcareservices.

ScopeTheNational,StateandSiteHRteamsplan,developanddeliveranarrayofservicesandproductsforallfacilitiesandworkplacesofRamsayHealthCareAustralia.Thisincludes:

Thisincludes:

DevelopmentofHRsystems,policiesandproceduresusingclearstandardsandguidelines;

Education,instructionandadviceonHRmanagement practice and appropriate action whendealingwithworkforceissues;

Establishingperformancestandardsandtargetsfortheworkforce,andmonitoringorganisationalperformance;

Ensuringcompliancewithindustrialregulationsandgoodfaithbargaininginallindustrialsituationsincludingbothindividualandcollectivebargaining;

Monitoringorganisationalcultureandengagementoftheworkforceandsupportingbothstaffandmanagementincontinuouslyseekingwaystoengagestaff;and

Developmentandimplementationoflearninganddevelopment(L&D)initiativesthatsupportgrowthofboththeorganisationandindividualswhilstalso,throughmandatorytrainingrequirements,ensuringcompliancewithrelevantpolicies,practicesandlegislative/regulatoryrequirements.

Key Performance Indicators• Employeeturnover

• Employeeabsenteeism

• Traininganddevelopment:100%mandatorytrainingcompliance,graduate/traineerecruitmenttargets,clinicalplacementnumbers,interntraining,totalL&Dspendasa%oftotallabourcosts

• CompliancewiththeWorkplace Gender Equality Act 2012

• Mitigationofindustrialaction&reductioninnumberofbullying/harassmentoradverseactionclaims.

Overview

RamsayHealthCarerecognisesthatitsemployeesareessentialtoitssuccessandaccordingly,strivesforexcellenceandcontinuousimprovementindeliveryofworkplacepracticestopromoteapositive,harmoniousandproductiveworkplacewherepeopleliketowork.

4 Ramsay Australia Workforce Report 2015

MyTimeimplementationMyTimeisRamsay’snewtimeandattendancesystemandisasingleconvenientonlinesystemthatimprovesoncurrentpayrollandHRprocesses,eliminatingpapertimesheetsandrosterstoachieveanewlevelofefficiencyandaccuracy.TheMyTimeprojectcontinuestorolloutthroughoutAustraliaandinJuly2015,59hospitals(17,356employees)wereliveandbeingpaidonMyTime.

EmployeeturnoverRamsayHealthCare’semployeeturnoverhasremainedsteadyat9.85%,wellbelowtheCompany’sKPIof14%.“Onboardplus”aprogramthatincludesdetailedscreening,interviews,scheduleddebriefsandregularreviewsaimedatimprovingturnoveroutcomes,continues toplayanimportantroleinthelowturnoverrate.

EmployeeabsenteeismTheCompanyinvestsheavilyinstaffwellnessprograms,employeebenefitsandflexibleworkingarrangementswhichcontributetolowabsenteeismrates.Therehavebeennoindustrialdisputesresultinginemployeeabsenteeism.Absenteeismremainsstableat4.13%.

Major initiatives and achievements in fiscal year 2014

% Turnover % Absenteeism

5.00

4.00

3.00

2.00

1.00

0

20.00%

15.00%

10.00%

5.00%

0.00%

2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

5 Ramsay Australia Workforce Report 2015

Learning&DevelopmentRamsayHealthCareiscommittedtotheongoingtrainingofourexistingemployeesandinvestsinthefutureworkforceofAustraliathroughtrainingofstudentsandgraduates.

RamsayHealthCarehasarobusteducationand training program across the company and has many stronglinkswiththeTertiarySectorinrelationtoeducation.Ourcommitmenttotraininganddevelopmentisevidencedinthefollowingways:

Employmentofdedicatededucatorsinallfacilities

Investmentingraduatenursingprograms(EN&RNgraduatewages)atacostof$27million

AccreditedSpecialistDoctortraining–over170medicalregistrarshiredin2014-15atacostof$6.4million

39,476clinicalplacementdaysofferedtostudentnurses&midwives

1573enrollednursestrainedinpartnershipwithTAFEin2015

Strong use of trainees and apprentices throughout the organisation

Continuedinvestmentin,andownershipof,aRegisteredTrainingOrganisation(RTO)calledthe“RamsayTrainingInstitute”

Studyleaveandeducationsupportprovidedtoemployees–$4.874million.

TheRamsayTrainingInstituteTheRamsayTrainingInstitute(“RTI”)offersawiderange of education programs for new and existing staff.TheRTIhaseducationprogramsinplacewhichincludeanumberofscholarshipsforfullysubsidisedexternaltertiarytraining,diplomaandcertificatetrainingprogramsruninconjunctionwithTAFEandothertertiaryinstitutions,aswellasanumberofin-housetraininganddevelopmentprogramsandacomprehensivee-learningprogramforarangeofcompulsorytrainingmodulesforallstaff.

TheRTIhasanannualbudgetof$1.1milliontoproduceanddelivermandatoryandotherspecialisttrainingtoallRamsayHealthCarefacilitiesinAustralia.ThefollowingisabreakdownoftrainingundertakenbyemployeesthroughtheRTIinthelasttwelvemonths.

Modulescompleted

Totalwagescost to

undertake

Mandatory training 172,286 $5.32million

Orientation 62,842 $1.93million

Professionaldevelopment 12,178 $501,616

Managementdevelopment 1,921 $79,125

TOTAL 249,227 $7.83million

6 Ramsay Australia Workforce Report 2015

RegisteredNurseUK TransferProgramRamsayhaslaunchedaninnovativepilotprogramforregisterednursesemployedintheAustralianbusinesstotransfertoRamsayUKandworkinahospitalinEnglandforaperiodofuptotwoyearsandreturntoAustralia.Thisprogrambringstogetheraglobalvision,allowingthetwocountriestoworktogethertosolvearesourcesdeficitandutilisesskilledresourcesthatmayotherwisebesurplus.

Theprogramprovidesanopportunityforourgraduatenursestogainvaluableexperienceandadvancetheirnursingcareersinadynamicway.

Graduate recruitmentRamsayHealthCarehasacomprehensivegraduateeducationprograminplacewhichresultedinthehiringofover539graduatenursesandmidwivesinAustraliain2015.Thisdevelopmentprogramisruninallstateswhereweoperateandourabilitytohiregraduatesislimitedonlybyourabilitytoaccommodatethemwithinabalancedhealthcaremodel.Wagesforgraduatenursesandmidwivesinourfacilitiesin2015totalledover$27million.

RamsayHealthCarealsopartnerswiththeDepartmentofHealthandAgeingtodirectlyemploymedicalgraduatesinourfacilities.During201557medicalgraduateswereemployedand95medicalgraduatepositionsareprojectedtobeavailablefor2016.Theemploymentofmedicalgraduatesinprivatehospitalsisanewinitiativeasinthepast,graduatesgenerallyneededtoworkinalargepublichospitalinordertomeettherequirementsoftheirtraining.

WearehopingtocontinuetogrowthenumberofRamsayHealthCarefacilitieswhichwilldirectlyemploymedicalgraduates.Wealsosupportmedicalgraduatesemployedbythepublichealthsystembyprovidingopportunitiesforrotationsthroughprivatehospitals.

Workforcediversity,genderequalityandequalopportunityLeadershipequalityandgenderdiversityisevidentthroughoutRamsayHealthCare.Someofthemeasuresin placetopromotegenderequalitywithinthecompanyare:

• Flexibleworkingpractices

• Job-sharing

• Purchasedannualleave

• Paidparentalleave

• On-sitechildcarefacilities(somehospitals)

Therepresentationofwomenthroughouttheorganisationisstrong.In2015womencomprised82%ofemployeesthroughouttheGroup.Womenoccupy16.7%ofseniorexecutivepositions1and53%of senior management positions2.Thesefiguresdonotreflecttheleveloffemalemanagementrepresentationinourhospitalfacilitiesas60%ofallAustralianseniormanagementpositionsarecurrentlyheldbywomen,whichisexceptional.

InApril2015ourfirstfemaledirectorswerewelcomedtotheBoard;PatriciaAkopiantzandMargaretSeale,meaningthatwomennowcomprise20%oftheRamsayHealthCareBoard.

Ramsayreceivedthe2015WorkforceGenderEqualityAgency(WGEA)noticeofcomplianceaftersubmittingtheWGEA2015Report(publiclyavailablehere)andis committed to ongoing initiatives to improve gender equalityintheworkplace.

1 SeniorexecutivepositionsarethosereportingdirectlytoChrisRex,CEOandManagingDirector

2 Seniormanagementpositionsarethosemanagersuptotwolevelsbelowtheseniorexecutivepositions

7 Ramsay Australia Workforce Report 2015

Ramsayhasa“50Plus”programwhichrecognisesandrewardsthecontributionofourexperiencedworkforce,whichisessentialfordeliveryofcomplexhealthservices.Traineesprogramsandapprenticeshipsareencouragedandsupportedandcontributetoyouthemployment.

Additionally,thecompanyhasover1073sponsoredoverseasemployeesworkinginavarietyofclinicalroles,aswellas57overseasmedicalinternstrainedinourhospitals,whichevidencesbothourcommitmenttodiversityandourcommitmenttotrainingAustralia’sfuturehealthcareworkforce.

WorkplacerelationsTherehasbeennoindustrialactionforthelastnineyearsatRamsayHealthCare,despiteneedingtocloseanumberofdepartmentswithinsmallerfacilitiesduetochangingoperationalneedsorreducingservicedemandsinspecificareas.TherehasbeensignificantrationalisationofthenumberandcomplexityofindustrialinstrumentsusedatRamsayinordertosimplifyinterpretation,createsomeconsistencyintermsandtoensurealignmentwithchangingModernAwardsandnewNationalEmploymentStandards.During2015,RamsayhastakenactiontoaddressarangeofparticularlabourissuesincludinglimitingemployeesworkingexcessivehoursbyrationalisingemploymentcontractswhereemployeeswereworkingmultiplerolesacrossdifferentRamsayownedfacilities.

Grievances and workplaceissuesThereareabroadrangeofpoliciesandguidelinesavailabletomanagelabourforceissuesandtogiveemployeesaclearpathwayforengagingwithmanagementand/ortoraisegrievances.Managersare trained in the use of the Performance Management systematRamsayHealthCareandemployeeshaveaccesstotheDisciplinaryGuidelinesbywhichpoorperformanceand/orbehaviourstandardsareenforced.Additionally,thereisaNationalHRServicesTeamwhichoperatesasaHR“Helpdesk”todeliverworkplacerelationsadvice,supportandcoachingtomanagersandstafftoassistintheresolutionofperformancemanagement,disciplinarymatters,grievancesandcomplaints.TherearealsoStatebasedEmployeeRelationsexpertswhoaredeployedtofacilitiesineachstatetodeliverannualtrainingprogramsincludingcomprehensiveperformancemanagementprograms,aswellasresolvinganyescalateddisputesorconflict.

RamsayhasengagedDeloittestoprovideanexternalWhistleblowerHotlineforemployeecomplaintsandareescalatedtoaRamsayBoardmemberandamemberoftheExecutiveManagementteamforinvestigation.ThereisalsoacomprehensivestaffEAPprogramwhichprovidesconfidentialcounsellingusingqualified,independentproviders,whichisavailabletostaffandtheirfamiliesforanyworkorpersonalrelatedissuestheymaybeexperiencing.

8 Ramsay Australia Workforce Report 2015

Staff satisfaction and engagement indicatorsFollowingthe2014nation-wideStaffSatisfactionSurvey,Ramsayfacilitiesimplementedactionplanstoensureeachfacilitycouldmaintainorimprovetheirtopstrengthsaswellasaddressanypoorperformanceareasorspecificemployeeannoyances.RamsaycontinuestomonitorstaffsatisfactionandengagementandmultiplechannelsareavailableforemployeestosharetheirthoughtsaboutworkingwithRamsay(performancereviewprocess,exitinterviewsandsurveys).

EmployeeshareschemeThepurposeoftheEmployeeShareSchemeistoprovidelong-servingstaffwiththeopportunitytoacquireanownershipinterestinRamsayandhasbeenofferedforthe3rdsuccessiveyeartoeligiblestaff.Theschemehasbeenahugesuccessandverywellreceivedwithmorethan13,000employeesthatshareinthefinancialfuture atRamsay.

www.ramsayhealth.com.au 0310RH

C