The diverse markets we operate in around the world, shifting workforce demographics, and technological advances that are changing the way we work are all risks and opportunities for Newmont. Our people are a distinct competitive advantage, and we are committed to attracting and retaining top talent by providing a workplace that offers a range of experiences and growth opportunities, is respectful and inclusive, and protects worker rights.
Supporting these commitments are global standards on Employment, Compensation and Benefits, Global Inclusion and Diversity, Labor Relations, Conduct and Non-Discrimination, Talent and Performance Management, and Third-Party Workers.
Our human capital strategy aligns our talent management efforts with the overall business strategy. Its focus areas include enhancing the employee experience and evolving for future workforce needs; building our bench strength and leadership capabilities; developing effective labor relations that align stakeholders with a shared future; and improving inclusion and reaching gender parity.
The Executive Vice President (EVP) of Human Resources leads our global human resources organization and is responsible for the development and execution of the human capital strategy. Each region has a human resources lead who reports directly to the respective Regional Senior Vice President and indirectly to the EVP. The Board of Directors reviews the strategy on an annual basis, and the Board’s Leadership Development and Compensation Committee reviews and discusses quarterly reports on matters such as executive compensation, talent and succession planning, benefit plans, and inclusion and diversity programs.
Global inclusion and diversity
Our goal is to build a workplace where our leaders and employees respect, value and support each other, and where we retain, represent and attract a diverse talent pool, and have the best leaders. To achieve this and create a competitive advantage, our global inclusion and diversity strategy has focused on three areas: integrating principles, practices and content into the workplace; increasing the representation of women, nationals, local and indigenous people and other diverse people across the organization; and establishing community partnerships that support a diverse talent pipeline and our values of inclusion and diversity.
Our focus on an inclusive and diverse workforce includes equal pay for equal work. To evolve and support our value of inclusion and diversity, we are committed to annually reviewing and adjusting our pay practices, where necessary, to ensure that our workforce is compensated fairly and equitably.
Integrated into the strategy is Paradigm for Parity, a coalition of business leaders across the U.S. that is committed to achieving gender parity in corporate leadership by 2030. The Paradigm for Parity framework includes an action plan designed to catalyze change and support our goal of building a more inclusive workplace, and a toolkit that helps identify root causes and prioritize our global inclusion and diversity efforts.
Talent management and skills development
To build and maintain a high-performance organization that has the right people with the right skills to deliver our business strategy, we invest in training and development programs that include on-the-job development and technical training for specific job functions, formal training and development programs, and ongoing educational opportunities through apprenticeships, tuition assistance, and scholarships to universities and technical schools.
Our global university strategy is designed to meet Newmont’s future needs by creating a robust pipeline and recruiting the next generation’s best talent. We have formed partnerships with 17 universities located in every country where we operate, engaging with professors and administrators on curriculum and research and development programs relevant to our business. Through internship and graduate programs, we offer top university talent with valuable early career-development experiences.
Newmont strives to provide all employees feedback on their performance. The structure of that feedback varies among locations, job categories and workforce agreements. Where no formal process for performance management is in place (for example, with our unionized employees), we follow local protocols to make the connection between employee skills and competencies and business performance.
We recognize and respect our employees’ right to join a union and engage in collective bargaining without interference or fear of retaliation. We have collective bargaining/enterprise agreements (covering wages, benefits and other employment terms) with unions in Australia, Ghana, Peru and the U.S., and a new union was formed in Suriname in 2018. Members of unions or collective bargaining agreements comprise approximately 42 percent of our workforce. Through ongoing engagement with all the unions that represent our employees, we aim to avoid labor unrest and work stoppages that can create distrust and cost our business.
During contract negotiations, guidelines help regions balance the interests of represented employees with those of the business. Our overall goal is to evolve the collective bargaining process to one based on collaboration.
Newmont commits to timely disclosure of significant operational changes to all employees. Of our seven operations with collective bargaining agreements, Ahafo and Akyem have a minimum notice period of seven days for communicating operational changes and three months for communicating a reduction in workforce. Minimum notice periods for Boddington in Australia and our operations in Nevada are four weeks and eight weeks, respectively. At Tanami in Australia, the period is one to four weeks, depending on the worker’s length of service. KCGM in Australia and Yanacocha in Peru do not have minimum notice period requirements.
Through comprehensive employee surveys conducted at least every two years, we solicit feedback on the effectiveness of our efforts to engage employees. One way we measure our inclusion and diversity efforts is by setting internal, region-based gender and national targets as well as public targets for local employment and enterprise-wide female representation.
Quarterly updates on progress against our internal and public targets to the executive leadership team and Board of Directors’ Leadership Development and Compensation Committee – as well as annual updates to the full Board – provide an opportunity to review our performance and adjust our approach as needed.
Concerns about workers’ rights can be raised through our site-based complaints and grievances (C&G) mechanism and registers, our online Ethics Solutions Tool, or a manager or human resources representative.
Newmont’s global workforce comprised 12,442 employees and 11,765 contractors at the end of the year. The biggest changes in workforce numbers were at KCGM in Australia, where a pit wall failure suspended operations in a portion of the mine and impacted jobs, and at Yanacocha in Peru where a change in the mine plan resulted in a workforce reduction.
Global inclusion and diversity
At the end of 2018, our enterprise-wide female representation was 15.0 percent. This is up from 14.7 percent at the end of 2017; however, we were just short of our public target for female representation to grow to 15.4 percent by the end of 2018. While our hiring rates for women have increased over the years, the attrition rate among female employees (10 percent) is higher than that of their male colleagues (6 percent). This challenge demonstrates that the inclusion focus of our strategy is essential for attracting and retaining top talent and ensuring diversity thrives. For 2019, our target for female representation is 16.1 percent.
Within our regions, female and national representation at the end of the year was as follows:
- Our Africa region exceeded all its female and national representation targets. Women made up 27 percent of executives, and Ghanaian nationals represented 53 percent of our regional leadership team and 89 percent of managers.
- Compared to 2017, our Australia region experienced a decline in overall female representation but increased female representation among executives.
- All key gender metrics in our North America region increased, with female executive representation growing to 26 percent.
- In South America, overall female representation in the region remained steady compared to 2017. Due to relocating the South America regional office from Lima, Peru to Miami, we will redefine national representation targets for the regional leadership team. The percent of managers who are Peruvian or Surinamese nationals is 96 percent and 72 percent, respectively.
Around 88 percent of our senior leaders (those at the senior director level and above) work in their country of nationality. We include a detailed discussion on local and indigenous employment in the Value Sharing section of this report.
During the year, we refreshed our global inclusion and diversity strategy, developing a strategic framework and road map that details the programs and actions we will undertake. Work that began in 2018 will continue into 2019 across the following three strategic pillars:
- Demonstrating inclusive leadership – In 2018, our regional leadership teams in Australia, North America and South America, as well as our leaders at the corporate office, participated in inclusive leadership workshops focused on building skills for engaging diverse talent and understanding Newmont’s inclusion and diversity approach. For 2019, senior leaders will participate in workshops to continue understanding, personalizing and practicing language that supports inclusion and diversity. Building on work started in 2018 in which 15 basic symbols of exclusion were eliminated, we will work to identify and eliminate additional symbols of exclusion such as uniform designs and personal protective equipment.
- Disrupting people systems – To improve talent management systems, we will audit our systems for unconscious biases. We also plan to complete pilot testing on blind resumes, inclusive job postings, and diverse hiring slates and replicate successful programs in other regions.
- Leveraging accelerators – Our business resource groups (BRGs) are vital to our strategy by creating a sense of belonging and partnering with the business in various ways to deliver our strategy. In 2018, we added three BRGs. Across our operations, we now have a total of 24 BRGs with at least one BRG at each mine site. In 2019, our focus is on continuing to empower, sponsor and resource all our BRGs. We will also look at additional opportunities to use technology as a critical accelerator of our strategy.
Across all pillars of the strategy, a set of diversity and inclusion metrics will hold senior leaders accountable. We discuss the refreshed strategy and these metrics in the featured case study.
Our operations across the globe continued to support our inclusion and diversity goals. Highlights in 2018 include:
- In the corporate office, Newmont President and COO Tom Palmer, and Pride BRG members and their families and friends, participated in Denver’s annual LGBTQI Pride Parade, and during the Company’s celebration of International Women’s Day, employees had the opportunity to experience other dimensions of diversity through a virtual reality experience where one could better understand unconscious biases and the perspectives of others.
- In Africa, the region’s Women and Allies BRG recognized male colleagues who are supporting gender equality efforts, and the Akyem mine opened its first nursing mothers’ room.
- The Australia region launched a second BRG in the regional office focused on supporting LGBTQI efforts, and provided ally training to support employees within the LGBTQI community.
- The North America regional leadership team sponsored the region’s first BRG summit, which brought together BRG leaders, members and executive sponsors from the Colorado and Nevada operations to learn from each other and share best practices.
- In the South America region, the Merian operation in Suriname launched its first BRGs – Uma-Sra (meaning Women and Allies) and one representing the interests of employees from the local Pamaka community.
Among the recognition Newmont received for advancing inclusion and diversity:
- Newmont won the large-cap category at the National Association of Corporate Directors (NACD) inaugural NACD NXT Recognition Awards that recognize excellence in board diversity and innovation as a strategy for creating long-term value.
- Women in Mining U.K. (WIM), a nonprofit dedicated to advocating for women in the mining industry, named six Newmont women to the third edition of its “100 Global Inspirational Women in Mining.” Noreen Doyle, Newmont’s Board Chair; Beatrice Opoku-Asare, Director, Inclusion and Diversity; Gloria Alorchie-Apetor, Senior Maintenance Planner at Ahafo; Jakeline Claudia Olivos Cruz, Heavy Equipment Operator at Yanacocha; Shannon Youd, Senior Maintenance Planner, KCGM; and Violeta Vigo, Director, Ejecutivo ALAC (Yanacocha’s community foundation) were nominated by peers and selected for their contributions to the mining industry.
- In early 2019, Newmont was named to the 2019 Bloomberg Gender-Equality Index, the world’s only comprehensive investment-quality data source on gender equality.
In 2018, all employees (except those in fixed-term positions and internships) were invited to participate in a global survey measuring and identifying opportunities for improvement across key areas of employee engagement.
Overall employee engagement remained well above the industry benchmark. Among the areas of highest engagement: 90 percent of employees agree that Newmont is committed to environmental protection and sustainability; 90 percent indicate that safety is a clear priority; 84 percent were proud to work for Newmont; and 81 percent said they were confident in Newmont’s future. Areas requiring additional focus include opportunities for skills development and career advancement. Across our regions and sites, we are developing action plans to address areas where we have room for improvement while continuing to build on our strengths. In 2019, we plan to conduct a global survey on employee preferences related to benefits.
Talent management and skills development
We continuously review and update our development programs to meet the needs of our leaders throughout the Company. To apply a more consistent approach to leadership across our operations, we offered internal leadership development courses in most regions for first and second level managers. In 2018, we revamped our global development program for mid-level leaders and launched a new strategic leadership program that focuses on a continuous review of Newmont’s strategy and building the leadership capabilities to execute the strategy.
We invested approximately $8.0 million in training and development programs. We recognize that stakeholders increasingly want companies to quantify and measure their return on investments in employee development. As a result, we are reviewing our data and assessing opportunities to provide greater detail about how our training and development programs create value for Newmont.
Of our total employee population, around 89 percent participated in a formal performance review process.
We will continue to implement our strategy to recruit the next generation of Newmont team members through ongoing engagement with universities around the world. The Newmont Graduate Program, which we refreshed in 2018, invites the most promising graduates in key disciplines to learn our business through a structured two-year rotational program.
We continued to maintain positive and collaborative relationships with the unions that represent our employees.
In Ghana, we concluded the negotiations for the wage adjustment framework, applied it to adjusted wages for 2018 and will apply it to labor rates for 2019. Following contractor-led protests at the Ahafo mine, we engaged the country’s Minister of Employment and Labour Relations on a resolution process that included security support and the appointment of an independent mediator. The process has resulted in Newmont establishing a framework that includes minimum requirements for wages and conditions of service for all contractor companies.
We continued negotiations of the collective bargaining agreement covering surface operations at the KCGM joint venture in Australia that expired in 2017.
Our North America region developed an engagement plan in preparation for collective bargaining negotiations that began at the end of 2018, and in early 2019, we reached a three-year agreement with the union covering hourly employees at our Carlin operation in Nevada.
At our Merian operation in Suriname, a new union was formalized in March 2018, and at the end of the year, approximately 49 percent of Merian’s workforce were union members. Engagement with the union began during the year, and negotiations on a labor agreement will begin in early 2019.
There were no strikes or lockouts at any of our operations in 2018.
Through the Ethics Solutions Tool, we investigated, substantiated and closed 105 cases of misconduct or inappropriate behavior that often involved issues between employees and their managers. Actions based on the investigations’ findings ranged from counseling to termination of the employees involved. During the year, there were also 25 grievances or allegations from employees related to human rights tracked through the Ethics Solutions Tool, with issues ranging from allegations of discrimination based on gender or race to allegations of sexual harassment. Additional information about our approach to human rights allegations and grievances is discussed in the Human Rights section of this report.202-1,
Benefits by Major Operations
Newmont’s compensation and benefits programs and practices for employees – of whom more than 99 percent are full time – are designed to be fair and equitable and support our ability to recruit, engage, reward and retain talent in each respective region.
In Australia, our employee benefits include comprehensive medical insurance; an employee and family assistance program; a superannuation plan for retirement savings and general financial planning services; voluntary life and disability insurance; and various paid leave benefits such as holidays. Australia also offers additional benefits such as salary continuation and long-service and bereavement leave. Flexible work arrangements are also available to support the diverse needs of our workforce.
In Ghana, employee benefits include comprehensive medical coverage; life insurance; short- and long-term disability insurance; a defined contribution pension with an employer contribution; a national social security contribution; and various paid leave benefits. Other benefits competitive for the market include a housing allowance; funeral assistance; tertiary scholarships; educational assistance for dependents; severance benefits; wellness services; mobilization; a subsidy on interest on personal or auto loans; malaria prevention devices; and a long-service award.
In Peru, employee benefits include medical insurance with dental and vision coverage; oncological insurance; life and accident insurance; short- and long-term disability insurance; medical evacuation; and paid vacations. Other benefits competitive for the market include funeral assistance, bereavement and immediate family sickness leave, and legal assistance for retirement planning.
In Suriname, we offer employees a defined contribution retirement plan; comprehensive health coverage inclusive of medical, dental and vision; an employee assistance program; life insurance; accidental death and dismemberment insurance; short- and long-term disability insurance; paid leave benefits; and service awards.
In the U.S., we offer a defined benefit pension plan to salaried employees; comprehensive health coverage inclusive of medical, dental and vision; paid family leave; wellness programs; an employee assistance program; life insurance; accidental death and dismemberment insurance; short- and long-term disability insurance; a defined contribution 401(k) plan with a company match; paid leave benefits; tuition assistance and scholarships; recognition programs; and service awards. Additional voluntary employee offerings include legal services, pet insurance, charitable gift matching programs and paid volunteer days. Flexible work arrangements are also available to support our workforce.
On a global basis, stock ownership is awarded under a long-term incentive plan for employees in designated pay grades. Our Medical Benefits Abroad program provides coverage for employees, eligible dependents and Board members for accidents or illnesses that occur during travel on approved business outside the country of residence.