HR Lineup December 2020

— HR Lineup

December 2020

— Table of contents

004 

Who is GBS HR? Summary of the GBS HR organization and how we partner with you

005 –006

Project Fusion Introduction to the exciting global HR digitalization initiative

007 

Open Job Market How you can support the new approach Empowering our talent to advance Resources for supporting your employees’ career development PDA and Single Cycle Key changes and dates for performance and compensation planning Engagement survey results 2020 Next steps for sharing results with your teams

008 

009 –010

011 –012

— HR Lineup

Bi-monthly publication for ABB line managers

Welcome to the first issue of the HR Lineup . We are excited to introduce this new tool created in response to your requests for the sharing of relevant information and updates regarding annual processes, special projects and initiatives and other items of interest. We need your help and partnership to ensure the content we include is meaningful and of use to you! Please share your feedback and questions, as well as suggestions for content to include in the

future, by sending an email to ch-gbshrcoms@abb.com.

Thanks, and enjoy!

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— Who is GBS HR?

The current Global Business Services Human Resources (GBS HR) organization, . which belongs to the business sphere and is governed by the Business Areas, was formed in October 2019 as part of the ABB-OS transformation. Our mission is to serve as a united, business-oriented HR team focused on delivering professional, end-user centered and high-quality ser- vices in a simple, responsive and effective way. Our organization consists of three pil- lars: Expert Services, Operational Services, and Excellence. Our Expert Services pillar includes Com- pensation & Performance, Talent Acquisi- tion & Talent Advancement, Global Mobil- ity and Labor Relations. Our Operational Services pillar includes operational sup- port from global and regional hubs as well as front offices in multiple countries.

Our Excellence pillar includes HR End-to- End Process Design, HR Communications & Experience, HR Performance (KPIs), Master Data & Job Architecture and Project Fusion & People Analytics. As we partner with you in support of your various people-related needs, we are com- mitted to taking an outside-in and end- user focused approach, and it is our goal to ensure you have an outstanding experi- ence whenever you work with us. We mea- sure our performance in multiple ways, regularly reviewing our KPIs and forming action plans to address improvement op- portunities. We will share some of these KPIs in each issue of the HR Lineup, and appreciate your candid feedback on what we are doing well and ways we can partner with you even more successfully.

— Featured GBS HR KPIs

99.83% Payroll Accuracy

92% Hiring Manager Satisfaction

89% Candidate Satisfaction

The team is exceeding the industry average of 99.7%, however sys- tem complexities and various country-specific situations reduced the overall accuracy.

The percentage of Hiring Managers who rated their overall Talent Acquisition experience as met, above, or well above their expectations.

The percentage of Candidates who rated their overall Talent Acquisition experience as met, above, or well above their expectations.

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— Project Fusion

What is it? Earlier this year ABB made the decision to invest in the digitalization of HR, and we have already begun the important work of simplifying our HRIS landscape! This excit- ing initiative, called Project Fusion, in- volves globally implementing Workday, a cloud-based software that specializes in human capital management, and four What does this mean for you? This initiative will result in you as leaders having state-of-the-art tools for managing your people management tasks. In addi- tion, our Talents will be able to easily iden- tify their next career opportunity within ABB, the businesses will gain insights into relevant people data in the palm of their hands, and our HR team members will be able to work even more efficiently and truly perform at their best. seamlessly integrated and carefully selected additional applications.

When is this happening? From a timeline standpoint, the broader Workday project is scheduled to kick off in early 2021, and implementation will happen in multiple phases, with phase 1 “go-live” in mid-2022, and phase 2 and 3 following in due course. The implemen- tation of the new talent experience plat- form, Phenom People, has already been kicked off, and the timelines for the addi- tional applications will be finalized as commercial negotiations are concluded. What is next? We are in the process of building the proj- ect team(s) who will lead this effort, and we look forward to onboarding the core project team members very soon. We are extremely excited about ABB beginning this HR digitalization journey, and can’t wait to roll up our sleeves and get to work bringing it to life!

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— 01 Workday overview video

Where can I learn more? We intend to provide regular updates in this newsletter and other forums, includ- ing a dedicated Inside+ page that is cur- rently being built to provide a “one-stop- shop” for information regarding the project. We have also established an email address that you can send questions to: ch-projectfusion@abb.com. For a “sneak peak” into what is to come with Workday, please take a moment to view this Work- day overview video. Phenom People As noted, the implementation of Phenom People has already begun. Phenom People combines a highly-personalized career site experience for both internal and external candidates with modern tools for talent partners. The Phenom Employee Experi- ence, or EX, will go live at the end of Janu- ary 2021, and the Candidate Experience (CX) and Manager Experience (MX) will go live in Q2 2021. While we will continue to use the existing e-req tool until Workday is implemented, the overall talent acquisition experience will be significantly improved and we are very excited to bring this first piece of Project Fusion to life! For a glimpse into what Phenom People can do for hiring managers and employees, please take a moment to watch this overview video.

— 02 Phenom People overview video

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— Open Job Market

The launch of the Open Job Market in ABB was announced in September, and all busi- nesses are working to ensure their leaders and employees understand what it means, including what is and is not changing. For line managers in general, the largest changes relate to mindset and our overall approach to empowering and developing our talent. interested and qualified employees to apply, to stimulate diversity in job appli- cations and to avoid bias in hiring deci- sions. Hence, there will be no appointing of candidates without posting a vacancy; a solid selection process will be applied to identify the best qualified candidate. Plan enough time to interview as many suitable candidates as possible! • Line managers play a critical role in driv- ing diversity within ABB, especially gen- der ambitions; filling a vacant position is a great opportunity to focus on this aspect. Specific changes for line managers include: • All positions must be posted to allow all

• Succession planning is still a valid tool to identify development actions and for risk management, but not to pre-determine a hiring decision any longer. However, can- didates on a succession plan can be alerted to new jobs so that they can ap- ply if they choose. • Any employee can apply to another job at any time without the requirement to ask for their manager’s permission. To avoid surprises, the PDA process and 1:1 meet- ings should be used to discuss the ambi- tions of team members and how line managers can help them grow. • From the employee perspective, owning their own career means reflecting on their ambitions and taking steps to grow and develop their skills and experience. There is also an element of reflecting on “employability.” While there is no require- ment to be in a current job for a time be- fore applying for another, sometimes the better choice may be to spend more time in a job to create impact and gain rele- vant experience. • The grandparent principle must be ap- plied, meaning the hiring manager’s line manager must be involved and approve of the selected candidate. At the end of the day, open job market means that we will have full transparency on all open positions within ABB, and it also means that everyone is empowered and expected to take charge of their own career. It is your responsibility to give your team members open and honest feedback on improvement areas, and also to sup- port them with development actions and training so that they are ready for their next step whenever they decide to take it.

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— Empowering our talent to advance

With the introduction of the Open Job Market we aim to unleash talent through- out the organization, and bring forward qualified internal candidates to stimulate more diversity in job applications. While employees are empowered to own their careers, you play a vital role as their man- ager! You can support their career devel- opment by checking in with them on a reg- ular basis. How often do you have career conversations with your team today? Are you aware of your employees’ career aspi- rations? The upcoming PDA discussion in particular provides a great chance to dis- cuss potential development opportunities. If you’re not sure where to start, or how to help, you are in luck! Resources exist to as- sist you in guiding your employees to take ownership of their careers, and two exam- ples are the Electrify Your Career portal and the Explore. Own. Accelerate. Enabling Talent program.

The Electrify Your Career portal contains tools and resources for helping an em- ployee reflect on their career aspirations and the areas they would like to focus on in order to take the next step. The portal, available globally to all colleagues with an ABB email address, also includes resources to equip you as a line manager to have pow- erful career conversations with your team. The Explore. Own. Accelerate. Enabling Tal- ent program is geared toward empower- ing our most engaged and committed em- ployees. Upon invitation, participants self-enroll to benefit from activities such as completing a Virtual Career Counselling course, attending an Inspirational Speaker Series session on mindfulness or receiving an email alert with relevant job opportuni- ties. The current group of participants in- cludes 1,465 employees, and these are just some of the activities taking place, with many more to follow throughout the re- mainder of the cycle until April 2021.

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One theme of the ABB Purpose is Creating Success through our customers and our employees to reach new levels of performance. — PDA and Single Cycle

As managers, we take ownership for our own and our teams’ performance to drive our business forward. We have the cour- age to communicate openly and honestly about performance and rewards; we care about our teams and what they do, collab- orating to identify and measure perfor- mance in order to recognize and reward achievements; and, we are curious and ac- tively seek and give feedback to ensure we perform to our best and learn from our successes and failures. As employees, we acknowledge that we will be paid for per- formance by being recognized and re- warded for our achievements and mean- ingful contributions. This pay for performance approach is an important component of our performance culture, and supports the delivery of business per- formance. changes to the performance management and compensation planning processes to create a “single cycle.” To align compensa- tion and performance planning timelines, final Performance and Development Ap- praisal (PDA) ratings are due January 24 , so the PDA rating can then be used to help make pay for performance decisions. It is highly recommended that a performance In order to enable a pay for performance culture, we are making a number of

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discussion with the employee occurs to discuss the past year’s performance prior to this date. Managers of employees par- ticipating in the Annual Incentive Plan (AIP) will also assess the performance of the goals linked to employees’ Individual Per- formance Measure (IPM) by applying “what” (results) and “how” (behaviors) logic and award one consolidated IPM%, input into a new AIP tab in the HR Group Tools (HRGT) system. Training on the IPM will be available in early December, and HRBPs will support the process. AIP 2021 plan direction, business measures and key changes from 2020 will be communicated by Business Area/Function leaders in mid-January, confirming the performance priorities for 2021. While the final PDA rating for 2020 perfor- mance is due January 24, the system will remain open to enable the entry of up to six (6) performance goals for 2021. You

have the choice as a manager to include a discussion regarding goals during any performance discussion that may be held before January 24, or to have a separate discussion regarding goals, finalizing the plan for 2021 with your employee before submitting in the system for them to acknowledge and sign off by February 28. All of these activities around discussing and assessing performance, and making compensation-based decisions, are a key responsibility for all people managers, and we appreciate your efforts and your com- mitment to making the time to focus on them. Please see below for a summary of the key dates for line managers relating to the single cycle process; additional infor- mation will be shared in the coming weeks. Please reach out to your local HRBP or compensation and performance team member with any questions. Single Cycle Calendar • December 1 – systems open for PDA and AIP IPM % entries • December 18 – employee self-assess- ments due in system • January 24 – final PDA ratings and AIP IPM % recommendations due in system AIP IPM% recommendations will be reviewed and should not be communi- cated to employees until after the review is completed in mid-February • Latest by February 1 – AIP 2021 plan let- ter (does not include numerical targets) issued to employees via managers • February 1 – salary planning begins • February 28 – performance goals and employee sign-offs due in system • Mid-March – compensation statements and AIP 2021 plan letter (including targets) issued to employees (managers in CC)

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— Engagement survey results 2020

Higher participation, an engagement level above the global benchmark, and positive feedback show we are moving in the right direction.

What does this mean for you? As of November 26, the Glint platform was opened for all eligible line managers. An el- igible line manager for this purpose is one who has at least five respondents. All teams with at least five respondents will be able to see their individual team results as well as the overall performance of ABB on a global level – as a comparison to the team results from 2019 and an external benchmark. Teams with fewer than five re- spondents will not receive their own team re- port but will be able to see the results of their extended team, one level up in the organiza- tion. Comments are only displayed for teams of 15+ employees and are anonymous. HR has organized trainings for eligible line managers to be able to navigate and un- derstand the reporting tool, interpret re- sults and set action plans. Line managers can find all necessary information about engagement survey including the training recordings and slides on Engagement Survey - Line Manager Resources sharepoint site.

We recently announced the full results of our second annual ABB Engagement Sur- vey to all employees and now are looking towards the next steps. First of all, thank you to all of you and your teams who par- ticipated, promoted the survey and gave your honest feedback. This year, we have both higher participation and engagement rates which show we are on the right track to a culture of open dialogue. The results show we have made progress, and importantly employees have felt sup- ported during this challenging year. Yet, there is still work to be done in improving cross-team collaboration, driving empow- erment and removing barriers to execu- tion. Colleagues also asked for more infor- mation about the company’s future and to continue our endeavors to strengthen our customer focus. The Executive Committee has decided to continue with ‘Company Direction’ as the priority while Business Areas and Divisions will define their priori- ties based on the findings from their own teams.

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Next steps In the coming weeks, detailed analyses will be conducted throughout the organiza- tion. Each team can expect to have a face- to-face or virtual dialogue with their line managers and to agree on actions for the team by the end of February 2021. In line with continuing to foster a culture of dia- logue, we encourage you all to have open discussions. As we continue to evolve, we will count on everyone to reflect on how to live our values of Courage, Care, Curiosity and Collaboration, and work together to draw the appropriate lessons, build upon

our strengths and take action to create a successful ABB, where everyone feels safe, secure and empowered to perform at their best and achieve their full potential. Any questions? If you have any questions on the above process, please reach out to your respec- tive HRBP. For more information on the survey and results, visit the dedicated mi- crosite here. For any technical issues with the survey platform, please contact Glint Service desk: support@glintinc.com.

— GBS HR Your People Partners Trista Schlick, Global HR Communications & Experience Lead trista.schlick@ch.abb.com

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