HR Lineup Feb 2023 Issue

— HR Lineup

February 2023

— Table of contents

004 –006

Single Cycle: Next Steps The process that lays the foundation for great conversations

007 –009

HR Transformation Program: Your feedback helps shape future people processes and experience Alignment of HR to the ABB Way

010 –012

Recruitment process updates Effective February 1, 2023

013 –014

Learn, Connect, Grow Day on April 19, 2023 Save the date

— HR Lineup

Bi-monthly publication for ABB line managers

Welcome to the February 2023 issue of the HR Lineup , created in response to your requests for Human Resources information and updates regarding annual processes, special projects, 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 email your feedback and questions, as well as suggestions for content to HRLineup@abb.com.

Thanks, and enjoy!

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— Single Cycle: Next Steps The process that lays the foundation for great conversations

Single Cycle commenced at the beginning of December 2022 with the launch of the Performance and Development Appraisal (PDA), and we are now well into the Com pensation planning stage. As a Manager, the conversations you have with your employees allow them to connect their individual performance and contributions, the business performance, and the recog nition and reward outcomes they receive. Taking the time to engage with your

employees during the Single Cycle has a significant impact on engagement, trust and creating a workplace where feedback and performance conversations are valued.

Where are the opportunities for great conversations?

Employees participating in the Annual Incen tive Plan (AIP) will have recently received their 2023 AIP plan letter with their preliminary

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business measures – this is one of the op portunities to ensure employees are aware of their AIP measures and how they, indi vidually, can impact business performance during 2023. Discussing and agreeing on the Performance Goals for 2023 allows you to agree on the expectations and direction and inspire and motivate your employees for the coming performance year. These goals should be recorded in the (PDA) document before February 28, 2023 . Depending on the local process, from early March , you may receive letters to be dis tributed to your teammembers eligible for Annual Salary Review (ASR) confirming any salary actions. It is at this time you should connect and thank your team for their valuable contribution. Your HRBP can advise on the local arrangements. During March , employees participating in AIP 2022 will receive confirmation of their annual incentive plan award . Use this opportunity to discuss the Individual Performance Measure (IPM) result that you assigned – and the reasons why – as well as the business performance that resulted in the overall award. By the end of March , the 2023 AIP plans, including business measures and targets, will be available, providing another oppor- tunity for you to communicate with your team and reinforce the relevant KPIs and how they can impact business performance. Business specific Sales Incentive Plan (SIP) communications would typically follow a similar timeline process. As a reminder, support materials, links and key Single Cycle dates can be found on the Single Cycle page on Inside+. For your convenience they are also included on the next page.

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— 2022/2023 Detailed Calendar Employee & Line Managers

DECEMBER 2022

Key Dates Manager Actions Employee Actions

7–16 PPM 2022 Rating training for managers

AIP Annual Incentive Plan ASR Annual Salary Review GG Global Grade IPM Individual Performance Measure LTIP Long-Term Incentive Plan M&S Marketing & Sales PPM People Performance Management

18 PPM 2022 employee self-assessment due

JANUARY 2023

FEBRUARY 2023

1–17 ASR 2023 GG 8–20 local process

6–13–20–27 PDA rating reminder, including link to guidance

18 AIP 2023 review / release of Letter A (w/o targets)

14 AIP–IPM 2022 % inputs confirmation from managers

20–31 AIP 2023 e-learning for managers & employees

24 AIP–IPM 2022 consolidated % due from managers

28 PPM 2022 performance goals discussion completion & employee sign-off

MARCH 2023

APRI L 2023

5–26 LTI communication to employee

6–23 ASR 2023 GG8–20 local compensation statement release 16–23 ASR 2023, AIP & LTIP 2022 GG1–7 consolidated compensation statement release 16 AIP 2022 GG2–7 local compensation statement release

28 AIP 2023 Release of Letter B

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— HR Transformation Program: Your feedback helps shape future people processes and experience Alignment of HR to the ABB Way

existing across ABB with a global people management platform – Workday. In parallel, we’ve started standardizing major people processes and related data elements. In light of the extended timeline of implementing Workday (the go-live is now planned for Q2 2025), we have kicked off additional initiatives to better align the HR organizational structure with the ABB Way and gather additional feedback to enhance our people processes and ways of working already in 2023.

The Human Resources function is under going a multi-year transformation – driven by the HR Transformation Program (HRTP) – to define a new way of working aligned with the ABB Way and focused on simplic ity, business partnership, and creating an outstanding candidate, employee and manager experience. In its early stages, the program was pri marily focused on a technology upgrade to replace multiple, fragmented HR tools

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Transition of the HR Expert Services

enhancements that we can introduce to our current processes and ways of working. Feedback collected through a survey, inter views and workshops with many of you and HR colleagues helped us identify multiple improvement opportunities in addition to gathering valuable insights about what’s already working well. The feedback has been analyzed and passed on to respective process owners within the HR function. Two areas that you pointed out as the most impactful and important are recruiting together with onboarding and grading, and this will inform our HR priori ties for 2023. Thank you so much to all who participated and provided feedback helping us sharpen our focus for this year.

Guided by the ABB Way and based on ex- tensive feedback collected from Business and HR stakeholders, we’ve introduced a new structure for the HR Expert Services of Compensation & Performance, Global Mobility and Talent Acquisition. As of January 1, 2023, they moved from the HR Services organization to the businesses. You can read more about the transition in this organizational announcement.

Improving people processes based on your feedback

As part of the ongoing transformation, we have a unique opportunity to listen and learn more about your perspective on

—

35% people leaders recommended improvements to the grading process

42% people leaders pointed out recruiting as the key improvement opportunity

150+ people leaders interviewed

500+ employees involved in listening workshops

Your feedback provided via survey, workshops and interviews helps us shape future people processes at ABB.

1,300+ responses to the survey

February 3, 2023

© 2023 . All rights reserved.

Slide 1

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Improvement projects ahead

for more information and ongoing updates. Your Talent Partners can also advise you on the most recent and upcoming changes. The grading topic will be addressed by the Performance & Reward leadership team in close partnership with the HRTP. Based on the feedback we will specifically focus on supporting the grading aspects of the job architecture project, communication and training and improvements to processes to help support business needs. More information about recruiting, onboard ing and grading changes will be shared as plans are developed. We look forward to taking action on your feedback to enhance the overall experience at ABB!

A dedicated project is being established within the HRTP to address the recruitment topic in close partnership with Electrifica tion as the new lead business for talent acquisition. Some improvements will be introduced in the course of the coming months and years in order to enhance speed, quality, and the overall experience for hiring managers, candidates and new hires, and others will be realized with the implementation of Workday in 2025. There are several enhancements already under- way, e.g., related to global grading selection in eRec, interview options, and overall guidance for hiring manag-ers. Please refer to the Hiring Manager toolkit on Inside+

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— Recruitment process updates Effective February 1, 2023

We have introduced some updates to the recruitment process that fulfill integrity, trade, and compliance requirements, improve internal candidate experience and ensure the collection of high-quality recruitment data.

Organizational Sprint in 2022. A dedicated initiative has been created to work and action your recommenda- tions. You will hear more about it in the coming months. Read the following pages to understand the changes that are in effect as of February 1, 2023.

These changes are a result of fee d back provided by many of you during the HR

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Interview process changes

Changes in the job requisition creation page

Integrity dilemmas *

Global grade drop-down list in eRec

• Hiring Managers (especially when in- terviewing without a Talent Partner) are expected to ask 2-3 general and role-specific questions that test a candidate’s ethical compass during the interview. • The integrity dilemma questions are available here on Inside+ and include examples of satisfactory and unsatis factory answers. Instructions on how to use the questions are available here. A new option has been added to the short list feedback questionnaire on eRec. This option enables Hiring Managers to select video interview or assessment for the next step. The selection then triggers an auto mated notification to the Talent Partner to initiate as agreed in the Kick-Off Meeting. Candidate experience for ABB colleagues applying for internal vacancies is vital. Therefore, following interviews with inter nal candidates it is compulsory for Talent Partners and Hiring Managers to provide verbal and constructive feedback to ABB colleagues not selected to proceed further in the recruitment process. Internal candidates & interview feedback Video interview or assessment selection on eRec

• The free text field for inputting grade information has been replaced with a drop-down list from which to select the grade. This update applies to newly created requisitions from February 1. • In cases where the global grades from 1 to 20 are not applicable for the role, the Hiring Manager can select option “99” and indicate in a mandatory com ment field the local grade value.

Step-by-step information for hiring managers

A link to the step-by-step information for hiring managers guide on Inside+ has been added to the top of the job requisition cre ation page in Manager Self-Service in eRec.

Additional column in eRec

A new column has been added in eRec to support the correct selection of “Job for Position”. It indicates if a job should not be selected because it is obsolete or only for use in the EL Business Area.

*Integrity dilemmas may not be introduced in countries where co-determination with employee representatives has not yet taken place, e.g. Austria, Germany. The implementation date for these countries will be communicated separately in due course.

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Obtaining candidate information for citizenship, permanent or temporary residence Trade and compliance rules require all candidates to provide information about their citizenship, permanent or temporary residence. It is needed to evaluate whether any applicable international trade compli ance rules could impose restrictions on the ability of the candidate to access ex port-controlled technology or software source code during their employment. particular citizenships, permanent or temporary residences, the Talent Part ner should contact the Country Trade Compliance Officer (CTCO) for the country where the job will be located. • Hiring Managers should be prepared to provide information to the Legal & Integrity team as requested. • If an interviewed candidate has

Further changes are coming in March 2023

The upcoming changes will be primarily related to global Conflict of Interest (COI) and Pre-employment Screening (PES pro cesses. Information on the changes coming soon will be shared in due course. If you have any questions or feedback about the changes implemented so far, please contact your Talent Partner.

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Recruitment process summary of changes Effective February 1, 2023

Supporting Trade & Compliance assessment If an interviewed or to be interviewed candidate has particular citizenships, permanent or temporary residences, Talent Partners should contact the CTCO. Hiring Managers should be prepared to provide information about the position and its access to technology as requested

Step-by-step information for Hiring Managers A link to the Hiring Manager information guide has been added to the job requisition creation page in eRec. A new column was introduced in the dialog window for selection of a “Job for Position” to indicate obsolete and EL only jobs

Video interview or assessment Option for Hiring Managers to select video interview or assessment in the eRec shortlist feedback

Internal candidates & interview feedback It is compulsory to provide verbal and constructive feedback to ABB colleagues following job interviews if they are not selected to continue in the process

Global grade drop-down list added to eRec (applies to newly created and historical requisitions from 1st February)

Integrity dilemmas During interviews candidates should be asked 2 to 3 questions which test the ethical compass of the candidate

questionnaire (following the

agreement with Talent Partner in the Kick Off meeting)

System changes

Interview process changes

January 30, 2023

© 2023 . All rights reserved.

Slide 1

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— Learn, Connect, Grow Day on April 19, 2023 Save the date!

• engage with leaders and meet col leagues, establish new connections, learn from others, and have fun.

With the ABB Leadership Learning Ecosystem milestone's one year anniversary, this ye a r is a great time to engage with everyone at ABB to help employees embrace life-long learning and take ownership of their career development and personal growth. Therefore, we will hold the first Learn, Connect, GrowDay (LCG Day) on April 19, 2023 , and invite people to explore what learn, connect, and grow means to all of us across ABB. The LCG Day will help us to: • develop a culture of learning, connecting, and growing at ABB; • discover available resources that will help us make learning a habit and pro- actively plan our career development and personal growth;

Business areas and divisions to bring Learn, Connect, Grow Day to life

To make this event a success, the Corporate People Development team will collaborate closely with all business areas and their management teams. Leaders across ABB are invited to volunteer to host local discus sion sessions with their teams at offices and sites to r eflect together what learn, connect, and growmeans for all of us at ABB. The local discussion sessions will be supported by global kick-off broadcasts in three different time zones, as well as learning material in the form of videos, a learning pathway and much more.

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Next steps: Save the Date

We ask you to block time on April 19 in your calendar to participate – and contact your BA T&L lead or LCG Day lead if you’d like to host one or more local discussion sessions. More information will follow through your business area. For questions, you can reach out to your local HR speaking partners.

Preparations are already in full swing: each business area will decide where local discussion sessions will take place in the coming weeks. Dedicated LCG Day leads for each country and location will help organize the local initiatives.

Helpful Links

• Single Cycle

• Global Onboarding Portal

• Recruiting toolbox for managers

• HR Transformation Program

• Leadership Learning

• AskHR

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

https://go.insideplus.abb.com/about-abb/abb-functional-services/hr-services

©Copyright 2023 ABB. All rights reserved. Specifications subject to change without notice.