Diversity Discoveries

— Diversity Discoveries

The Global Executive Search Team D&I Newsletter

Second Quarter 2022

— Table of contents

Gender Diversity and the Role of the ABB Executive Search Team by Gary Earle, Domenico Zuccarello Employee Spotlight Q&A with Julija Lavrac – VP, Global Leadership (Learning Ecosystem Lead) What Are Female Executives Looking for in Their Workplace? Insights from the Global Executive Search Team by Jamie Rich, Gary Earle and Domenico Zuccarello ABB Partners with Fairygodboss to Help Promote Female Hiring The ABB Global Executive Search Team Our added value, process and diversity recruitment strategy

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— Intro Page Welcome Volume 1/Issue 1

Welcome to the inaugural issue of Diversity Discoveries, the publication of the Global Executive Search Team highlighting the team’s efforts to increase gender diversity in ABB’s senior positions. To support ABB’s goal of increasing female representation among ABB leaders by 2030, the team is focused on executing a short and long-term proactive recruiting strategy to place external female executives in senior positions.

The Editor’s Insights – Diversity as a Business Strategy

Studies show that companies with Diversity & Inclusion practices have greater employee retention than those without. In addition to being the correct thing to do, researchers have also revealed that building and maintaining a diverse, equal, and inclusive labor force produces a more productive, creative, and better perform- ing business. Investing in an inclusive work environment not only boosts retention of employees within an organization, but it also enhances the perception of the company as an employer of choice for future workers as well. ABB’s continued commitment to a diverse workplace is an essential resource in being able to recruit and keep top talent. – Jamie Rich

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— Gender Diversity and the Role of the ABB Executive Search Team

Over the past decade, an increasing number of companies have realized howmuch a di- verse leadership team represents a true source of competitive advantage and suc- cess for their organizations. McKinsey & Company research shows that companies with ethnically and gender di- verse leadership are 33%more likely to out- perform on profitability and 21%more likely to have above-average profitability with gender diverse leadership teams. BCG and the Technical University of Munich found a direct correlation between innovation, diversity in leadership teams and profit- ability of new product releases. They discov- ered that four types of diversity — industry background, country of origin, career path, and gender — positively correlate with innovation. McKinsey, ‘Delivering Through Diversity’ 2018.

Not only financial performance and innova- tion, but also the richness of diversity in the long-term is vital if companies are to achieve success in the business world of the future. Though given this reality, few major multinationals have imple- mented focused global recruiting strate- gies encompassing proactive gender di- verse executive candidate sourcing. However, this must change if companies expect to recruit competitively in the global battle for top diverse talent. To effectively mitigate challenges for recruiting diverse leaders, organizations must define and establish a recruiting roadmap that is forward thinking and proactive in nature in order to be successful in attracting the top female executive talent needed to compete and win in today and tomorrow’s business environment.

by Gary Earle and Domenico Zuccarello

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To help achieve ABB’s goal of narrowing its gender imbalance among its executive workforce, the ABB Executive Search Team is proactively building and nurturing a net- work of external gender diverse executives from which to recruit for all future positions at ABB. ABB needs to establish today the professional contacts that will lead it to the best employees of tomorrow. Developing candidate pipelines well before individuals are required for employment allows ABB’s Executive Search Team to become ambas- sadors for the company and to promote the company’s employment brand. Introducing ABB and building relationships produces a gender diverse candidate pool that will al- ready know the organization and have an interest in joining the company at the time an appropriate opportunity arises at ABB.

Proactively constructing a diverse candi- date pipeline helps to ensure that when job requisitions are opened the most talented individuals are being hired by the company. Recent senior leadership positions filled by the ABB Executive Search Team with female candidates: • Head of Strategy and Business Devel- opment Process Industries, • Chief Counsel Labor Law, • Global Leadership Learning Ecosys- tem Manager, • Vice President of Service, RAMA • Director of Indirect Procurement, Americas.

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— Employee Spotlight

Julija Lavrac is a VP, Learning Ecosystem Lead. She was sourced by Domenico Zuc- carello of the Global Executive Search Team and joined ABB on November 1, 2021. Jamie Rich spoke with Julija to dis- cuss her time at ABB so far. Q: Tell me a little about yourself. A: I’m originally from Slovenia but have lived in Switzerland for a long time. I also worked abroad; 2 years in the US, also I spent time in the UK and Singapore. From an experience perspective, I worked a number of years in the investment bank- ing industry and most recently in pharma, always in the talent & leadership develop- ment area. Q: Why ABB? A: Due to the type of work that I specialize in, a large, multinational organization which is transforming itself, was of great

interest to me. I had previously been in the investment banking industry & pharma so I was interested in applying my experience in a different industry. Q: I know it’s early, but so far what is the most challenging about your role? A: Lots of flexibility in the role and lots of opportunities to build something new. This is also what is enjoyable about the role. Due to COVID, onboarding was mainly virtual so still learning the business re- motely creates its own set of challenges. Q: How would describe ABB to prospec- tive female executive? A: It’s a very collaborative environment, fast-paced and energetic. There are lots of opportunities to drive change at ABB; the company is welcoming to good ideas.

Thanks so much for your time.

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— What Are Female Executives Looking for in Their Workplace? Insights from the Global Executive Search Team Based on Market Research

Most companies today have recognized the importance of having women in lead- ership positions. This not only creates gender diversity, but it also contributes to the diversity of ideas, better problem solving, and increased collaboration. Ulti- mately, having women as part of the com- pany’s management team represents a true source of competitive advantage and success for each organization. To attract top female executives, it is im- portant to understand what women are seeking when embarking upon a new job search. Men and women look for career opportunities differently and the Covid-19 pandemic, among other factors,

has highlighted the distinctions between what men and women are expecting from prospective employers. Due to the pandemic, women lost jobs at a rate of nearly 2x greater than men. COVID-19 ushered in what we now know of as “The Great Resignation” where many employees voluntarily left their jobs to find a more rewarding work milieu elsewhere. Some sought new positions which kindled their passions and renewed their vigor or provided more flexibility versus the tradi- tionally structured environments of their previous employers. This phenomenon has led female executives to be much more se- lective in their current job searches.

by Jamie Rich, Gary Earle and

Domenico Zuccarello

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where every year more than 10,000 open positions are being published internally and externally. 3. Equal Pay Even women who climb to the highest rungs on the corporate ladder are some- times, in some companies, still paid less than their male counterparts. In addition to salary, this discrepancy can also extend to incentive pay, such as stock grants and bonuses. The gender pay gap has been in- crementally improving, but it is still taking time to achieve parity with their male counterparts. There is substantial evi- dence to show that companies that can close these gaps perform better and are subject to less business risk. As one of the world’s foremost companies, ABB is a leader in ensuring equal pay for equal work for all its employees. As such, ABB has adopted a Global Grading System with support from Hay Consultants which allows ABB to measure the relative worth of all openings in the organization. This means that jobs are reviewed in a fair and consistent way with similar jobs be- ing compared to each other across coun- tries, and in many cases across Divisions. The Global Grading System and the result- ing grade evaluation is a foundation for re- muneration decisions involving base pay, short term incentives, long term incentives and other benefits. 4. Tailored Benefits According to a MetLife survey, the majority of women in the workplace say it’s import- ant that their employer provides tailored benefits as part of their employment package. Tailoring benefits to address the specific needs of employee populations is becoming increasingly important. With this in mind, ABB provides two employ- ee-focused programs that offer more options for a catered benefit experience. ABB believes there is a direct link between the physical and mental health of its people and the company’s overall performance. The Global Parental Leave Program is gen- der-neutral and grants 12 weeks of paid leave for primary caregivers and 4 weeks

Here are several items female executives are identifying as being important when choosing a new employer: 1. Flexible Work Schedule/Working Re- motely A flexible schedule and the ability to work remotely are no longer “nice to haves,” they are “must haves.” Studies have indi- cated that for women, flex or remote work is even more important than the financial benefits a company can offer. According to Egon Zehnder, women benefited greatly from working from home during the pan- demic. Working from home created better work-life balance by providing more flexi- bility in their work schedules and a less stressful work environment while increas- ing productivity. ABB has embraced flexi- ble work options depending on job com- patibility without compromising customer service or impacting colleagues: Common Flexible Work Practices (FWP) include Flex- time, Compressed Work Week, Remote Work, Telecommuting, Part Time, and Job Share. Global Flexible Work Practices Guidelines detail standards and processes which will apply across ABB. However, many countries will go beyond these stan- dards where local legislation allows. 2. A Position with Purpose Research has also confirmed that women are looking for roles that fit well with other areas of their lives. They want en- joyment from the work that they do, be- lieving that their job gives them the op- portunity to make a difference in their organization. This concept also positively impacts communities and societies around them and has been referred to in some circles as “a calling.” Experiencing work as “a calling” is directly related to in- creased job satisfaction. Today, ABB offers a unique platform to leverage individual competencies and fu- ture aspirations while energizing the transformation of society and industry to achieve a more productive, sustainable fu- ture. Moreover, ABB is helping each em- ployee build a fulfilling career by making all opportunities open to everyone through its “Open Job Market” policy

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roles is not only reasonable and good for business, but also improves recruitment, retention, and the morale of the workforce in general. Today’s corporate executives have a key opportunity to reimagine what work means and what it can look like, especially for gender diverse employees and candi- dates. Once conceived, they must move quickly to implement these new workforce and workplace concepts. The COVID-19 pandemic has shown that successful orga- nizations are the ones that can adapt swiftly. In doing so, the practices they em- ploy now will have a lasting impact on cur- rent and future leaders. ABB strives for a culture where individual differences are not only welcomed but cel- ebrated. As such, ABB has a three-pillar model based on governance (processes, policies, tools, best practice empower- ment and D&I) as well as inclusive leader- ship & culture, and partnerships.

for secondary caregivers across the global organization. Every ABB employee world- wide under the program who is having a child, whose partner is having a child, or who adopts a child or becomes a parent through surrogacy, is entitled to paid pa- rental leave. The Employee Assistance Program, which is offered to employees across the world, provides confidential information, sup- port, and referral services to help you maximize productivity and achieve work/ life balance. This includes help with topics such as substance abuse, stress, family is- sues, personal finance, career resources, and much more. 5. A Diverse and Inclusive Organization Companies that embrace a diverse work- force stand out in more ways than one. It has repeatedly been confirmed that gen- der diversity results in increased productiv- ity, greater innovation, and better decision making. Having more women in executive

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— ABB Partners with Fairygodboss to Help Promote Female Hiring

The Executive Search Team is pleased to announce ABB’s affiliation with Fairygod- boss. What is Fairygodboss and how will it benefit ABB? Simply put, Fairygodboss is the world’s largest female focused career community serving over 15 million women. Working with more than 150 top compa- nies, Fairygodboss offers employers a cus- tomized and comprehensive networking platform from which to find prospective female candidates.

The partnership with Fairygodboss will en- hance ABB’s ongoing efforts to be seen as an “employer of choice for women” and will support the company’s gender diversity recruitment efforts by driving more female job applicants to ABB’s career website.

Attract Top of Funnel Activity

More qualified women applicants

Convert Unlimited jobs

Engage Employer Profile + Content

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— The ABB Global Executive Search Team Our added value, process and diversity recruitment strategy

The ability for ABB to grow reve- nues and profits is enhanced if the right executive is available at the right time. However, be- cause of increased competition in the market, exceptional lead- ers are a rare commodity. Across the globe, ABB is confronted with the challenges of filling critical positions due to a lack of avail- able candidates.

To effectively mitigate recruiting challenges for senior level roles, ABB Executive Search has estab- lished a recruiting model that is forward-thinking and proactive in nature. A strong, proactive ABB Executive Search Team will accel- erate enterprise growth plans, have a positive influence on en- terprise strategy decisions, and help drive profitable growth.

ABB has a diversity and inclusion goal of increasing female repre- sentation among ABB leaders by 2030. The Global Executive Search Teamwill support ABB’s efforts to increase gender diversity in the company’s senior positions by ex- ecuting a focused short and long- term recruiting plan.

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— Our Added Value The Benefits of Partnering with ABB Executive Search

Bottom Line, Competitive Intelligence, Corporate Branding, Company Knowledge

Some of Our Recent Success

Examples of past placements: SVP Global Business Line, Global and Regional HRBPs, VP of Sales, VP of Platform Engineering, VP HSE Americas, SVP US PAMA, Global Continuous Improvement Manager ELSB, Global Channel Director PAEN, Head of Strategy and BD PAPI, Chief Counsel La- bour Law, Head of Insurance Risk Manage- ment, Global Leadership Learning Ecosys- tem Manager, Vice President of Global Service for B&R.

Cost Savings

External executive search firms charge on average one-third of the candidate’s first year’s salary and bonus. The resulting cost to the businesses can average from $75,000 to $120,000 or more per search. With ABB Executive Search Team there is no additional cost for external place- ments to the businesses. Executive Recruiters interview a substan- tial number of prospects before arriving at 3-5 shortlisted candidates to present to the hiring team. A significant amount of competitive intelligence is gleaned from those conversations. With the ABB Executive Search Team that valuable Infor- mation remains with ABB. Information

Image

When the search is conducted by in-house Executive Recruiters, the ABB brand is bet- ter controlled and protected by the com- pany than by the external agency that can be perceived as an Intermediate filter by candidates.

Familiarity

Internal Executive Recruiters have a bet- ter understanding of ABB culture. They develop relationships with hiring manag- ers that allow them to be more targeted and efficient when driving the external executive search.

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— Gender Diversity Recruitment Strategies Campaigns for Senior Level Positions at ABB

As part of the Global D&I Inclusion strat- egy, the Global Executive Search team will proactively: • Identify top tier external female candi- dates currently holding executive level positions with expertise in areas that are the least represented at ABB, i.e., with an emphasis on engineering, opera- tions and P&L responsibility.

• Reach out to these executives to build relationships/rapport with the intent to make them aware of present and future opportunities at ABB. • Maintain regular contact with the identi- fied prospects to determine their ca- reer goals and aspirations and their timing for making a career and/or com- pany change.

Create a database of female ex- ecutive candidates whose skills align with the needs of ABB with an emphasis on the least repre- sented competencies.

Partner with Communications to provide suc- cess stories, white papers, etc. and highlight hires/promotions of female execu- tives at ABB.

Source/recruit without the pres- sure to fill just open vacancies, but rather to present profiles to create new op- portunities for external female candidates.

Use the database to proactively build a network of female execu- tives from which to recruit for all future positions at ABB.

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— Gary Earle

San Diego, CA USA e-mail: gary.earle@us.abb.com

Director of Executive Talent Acquisition – Global Gary Earle leads the ABB Executive Search team and has over 20 years of experience in the Executive Search Industry specializ- ing in the field of power electronics. Prior to ABB, Gary was the Director of Talent Acquisition at Power-One, a power supply and solar inverter manufacturer that was purchased by ABB. For ten years, he also owned and managed a boutique executive search agency providing recruiting services for start-ups and major companies.

and Corporate functions in recruiting for senior positions globally.

His goal is to ensure that he and his team assist in maintaining ABB’s industry lead- ing brand by recruiting the world’s top se- nior talent to the company. Academic background Gary holds a Bachelor of Arts degree from the University of California, Santa Barbara and studied finance at San Diego State University’s graduate school of business. He also spent a year at the University of Nairobi in Kenya participating in a foreign studies program.

In addition to managing the team, Gary supports all of ABB’s Business Areas

— Domenico Zuccarello

Baden, Switzerland e-mail: domenico.zuccarello@ch.abb.com

International Executive Recruiter – Global Domenico Zuccarello is a member of the ABB Executive Search team and has devel- oped over 10 years’ experience in the Exec- utive Search Industry. In his current role, he directly supports all of ABB’s businesses and Corporate func- tions in hiring senior positions globally. He works closely with senior leaders, hir- ing managers, and HR business partners to find the right executive at the right time. Prior to ABB, Domenico has been working at Korn Ferry Executive Search within the Global Industrial Markets Practice. He has been supporting various Large-Mid Cap

companies primarily across the following industries: Building Products, Metals, In- frastructure sectors. Domenico has been involved in several ap- pointments, with strong focus on: Chief Executive Officers, Operating Officers, Di- visional Presidents, Country Leaders, Commercial Directors, Strategy Directors and Operations Directors amongst other. Academic and Professional background Domenico holds a master of science in business administration and management from LUISS Business School in Roma, he is fluent in Italian and English.

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— Jamie Rich

Editor Raleigh, NC USA e-mail: jamie.rich@us.abb.com

Global Executive Diversity Search Specialist Jamie Rich is a member of the ABB Exec- utive Search team and has 20+ years of experience in Talent Acquisition with ex- pertise in diversity, sourcing and talent management. In this role, he is responsible for active sourcing and pipelining of executive di- versity candidates globally. Prior to joining ABB, Jamie worked for global Fortune 500 companies focusing on diversity, recruitment and sourcing meth- ods. Most recently he was a Senior Recruit- ing Specialist at Johnson and Johnson.

Earlier in his career, he worked for Ingersoll Rand and Cisco Systems where he focused on sourcing diverse talent for niche positions. Jamie has been instrumental in creating a strategy that will support ABB’s efforts to increase gender diversity in the compa- ny’s senior/executive ranks. Academic and Professional background Jamie holds a Bachelor’s degree from the University of North Carolina at Chapel Hill and has several certifications and training in D&I and sourcing. He has worked abroad and speaks conversa- tional French.

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