June 2021 HR Lineup

— HR Lineup

June 2021

— Table of contents

Leading with integrity Management’s role in driving a culture of integrity Checking in on performance Review window number one opened May 31 Project Fusion: courageous transformation Simplifying and standardizing people processes to create meaningful digital experiences Turning openings into opportunities Reinventing Talent Acquisition to more quickly find the best-fit candidates for open positions HR policies: what’s new? Four new core HR policies are now applicable and available

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— HR Lineup

Bi-monthly publication for ABB line managers

Welcome to the June 2021 issue of the HR Lineup , a tool created in response to your requests for the sharing of relevant HR 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 HRLineup@abb.com.

Thanks, and enjoy!

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— Leading with integrity Management’s role in driving a culture of integrity

With the launch of the ABB Way, we de- fined our values and laid out clear integrity principles in our Code of Conduct. Our Code is the foundation of our strong, collective and individual commitment to in- tegrity and responsible business practices. At ABB, performance is measured not only by the results achieved, but also how results are achieved. As managers, we are expected to lead by example by pro- moting a culture of integrity. Integrity is not a slogan, but the key to sustainable business and our 2030 sustainability strat- egy. It is about how we behave – follow the law, act honorably and treat each other with respect. We need to create an envi- ronment where anyone feels safe to speak up. Integrity means doing the right thing even when nobody is watching.

“Leading with integrity means that we are responsible for our own behavior and actions as leaders, as well as for those of our teams and business partners. A culture of integrity is a pre-requisite for a world class and sus- tainable business,” says Carolina Granat, Chief Human Resources Officer, ABB. In the first quarter of 2021, more than 1,000 colleagues from 243 management teams made an express commitment to perform their objectives in line with our values and Code. Over the last year, more than 150 units across our businesses have also discussed Integrity on the Business Agenda topics. We will continue to generate greater awareness through more discussions going forward.

“Leading with integrity means that we are responsible for our own behavior and actions as leaders, as well as for those of our teams and business partners. A culture of integrity is a pre-requisite for a world class and sustainable business.”

Carolina Granat, Chief Human Resources Officer

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We have created interesting new tools and resources to help you do the right thing and lead with integrity. Here’s how you can utilize them best:

Leverage the interesting micro-learnings on our Integrity Awareness Portal, including episode 0, our latest interactive learning video, to help your team get a deeper understanding of what it means to act with integrity. Instead of mandatory integrity trainings, we will focus more on communicating clearly and often with such innovative tools to get higher engagement with all of you. tion as a trusted and reliable business partner. Let’s make a collective commit- ment to transparency and integrity, in accordance with our values and principles, as well as promote social progress and continuous improvement. You can count on the support of our leadership and the Legal and Integrity team. Our strength and future success depend on our long-standing, hard-earned reputa-

Champion our Code of Conduct by encouraging your team and business partners to download the mobile app and visit our user-friendly Integrity Gateway to disclose conflicts of interest. The Code is the foundation of our commitment to ethical behavior and can be accessed anywhere, anytime with the app. Develop a culture of openness by ensuring everyone on your team feels comforta- ble raising their concerns with you, with Legal and Integrity or HR, or through our ABB Business Ethics Helpline. Let them know that there is zero-tolerance for non-compliance and retaliation in any form at ABB. If there is a risk of non-compliance, we need to know about it immediately so that we can fix it. Communicate with your team often about integrity, leveraging our messaging and tools. Share our quarterly Integrity on the Business Agenda materials and our new Straight Talk stories of lessons learned from our successes and failures, and integrity metrics. This will help your team get a clear idea about the mportance of integrity and show that resources are being devoted to investigating cases that carry a risk of non-compliance.

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— Checking in on performance Review window number one opened May 31

The People Performance Management (PPM) process was reviewed and rede- fined in 2020 to further support the per- formance culture in line with the ABB Way. This includes having goals that are rele- vant and agile throughout the perfor- mance year and enabling real-time, frequent check-ins and more regular performance reviews. Regularly reviewing and discussing individual performance is key to building a culture that supports business perfor- mance. Informal or formal two-way conversations should occur throughout

the year and provide an important opportunity for regular one-on-one connections between managers and employees related to performance. During the PPM review, feedback was received that the mid-year performance review was not flexible enough for business needs. In response to this feedback, three shorter performance review windows are being introduced this year to provide more flexibility and options for capturing performance conversations in the HR Group Tools (HRGT) system.

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Performance reviews: why hold them and when are the windows?

• Confirm the accountability with employ- ees regarding their goal deliverables, behaviors and development actions • Ask others on your team for feedback, enabling you to recognize and drive performance During 2021, the performance review tem- plate in HRGT will be made available during three different periods between May and October. Performance review windows are available during the following dates:

The performance review is an optional step offered in the ongoing people perfor- mance management cycle, and provides an opportunity to: • Check on goal progress and the achieve- ments made to date • Review and/or adjust goals for rele- vance, which supports the delivery of business targets

— Performance review windows availability

Review Window

Opens for employees May 31, 2021

Closes for employees

Opens for managers

Closes for managers July 8, 2021

1

June 17, 2021

June 18, 2021

2

July 19, 2021

August 5, 2021

August 6, 2021

August 26, 2021

3

September 6, 2021 September 23, 2021 September 24, 2021 October 14, 2021

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employees can add more comments or edit existing comments, as needed.

Performance review windows: tips and tricks During each of the performance review windows the first three weeks are for employees to document their comments and reviews. The next three weeks are for managers to document their feedback and comments. The review will progress to the manager as soon as it is completed by the employee or on the dates specified specified in the table on page seven. Managers should also take the opportu- nity to ensure that employees who partici- pate in the Annual Incentive Program (AIP) have up to three (3) performance goals linked in HRGT. At the completion of each performance review window, the template in HRGT will close and cannot be re-opened. Capturing further comments can be completed during future windows. When the future windows open, the previous comments will be available, so you and/or your

Goals can be updated or additional goals captured using the comments section , if needed. Completion of a performance review in HRGT is completely optional . Though encouraged, it is up to the employee and/or manager to capture conversations during these three periods. To provide even more flexibility, as a manager, you can work with your employ- ees to decide if: • You will use all three windows to document information/conversations about all your direct reports, or • You will divide your direct reports into three groups – leveraging each perfor- mance review window for a different subset of your direct reports. Remember: the performance review windows are specifically related to HRGT access and are used if you want to document something. You can (and should) continue to have performance conversations throughout the year with your employees, but you can only docu- ment something in HRGT during these three windows. On May 31, employees received a system-generated email notification witha direct link to the performance review within HRGT for the first available window. Additional resources and information are available on the People Performance Management page on Inside+.

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— Project Fusion: courageous transformation Simplifying and standardizing people processes to create meaningful digital experiences

The architect stage of Project Fusion is coming to the end. For the past couple of months, business, HR and IS teams have been redesigned our future people processes and HR systems landscape. With the introduction of Workday in October 2022, you’ll be able to use a completely new, modern and global HR platform, while also benefiting from standardized workflows. To better understand the magnitude of the transformation ahead, let’s take a look at a couple of examples of the upcoming changes which are based on our design principles.

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Our Project Fusiondesign principles lay the groundwork for creating an improved HR experience

We add value for our end-users Future proven HR process design aims to reach better quality and improved customer satisfaction

We apply the grandparent principle Approval workflows follow ABB’s standard decision process (solid reporting lines only)

End-user

Grandparent

We focus on ‘moments that matter’ Create unforgettable customer experiences by changing the lens to the outside-in, even beyond system & tools

We simplify and automate Empowering employees through global standardization, lean & sim- ple processes, and easy systems accessibility We build one HR Master System ABB HR data is mastered centrally for all locations, Business Areas and other systems, and organizational decisions are based on the same data We aim for courageous decisions Following 80/20 rule by prioritizing requirements and assessing effort / complexity (good vs perfect)

Outside-in

Single Source

We design global processes One ABB Way allowing exceptions only for local legal and regulatory requirements

Global

Self-Service

We have a mandate to transform Moving away from lift & shift by making bold decisions - knowing that what is right does not always come easy

Transform

Courage

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Simpler and global processes In a shift from fragmented, local solutions to a global one, the team reviewed approximately 7,000 people processes covering the entire employee lifecycle – from hiring to retiring. When Workday is fully in place, operations like annual salary review, job changes, onboarding, termination and many more will be done the same way globally – from Canada to New Zealand. Deviations from global processes will happen only based on the legal, statutory and regulatory require- ments. As we begin rolling out Workday, local HR processes will stay local, but will be further integrated after the go-live. With the introduction of Workday and other so-called best-of-breed systems (e.g. Phenom People for recruiting and AssignmentPro for global mobility), ABB will retire a significant number of previously existing HRIS applications. This move itself will simplify our system landscape. Going forward, Workday will become our central source of HR data for all locations, Business Areas and other systems. Thanks to digital self-service, you and your employees will be able to review and update your information anytime, anywhere. You will gain direct access to a wide range of real-time, high-quality data, dashboards and reports that will help you make informed decisions and initiate people processes. Single source of truth: one HR Master System Direct access to the system & fewer approvals

Additionally, we will limit the number of approvals needed to process a transac- tion. Workday will also enable transparency and efficiency – making it clear who needs to take action or grant approval in order to complete a process. For a short intro to Workday, watch this video. Mandate to transform Project Fusion is designed to enable business-requested changes. One of these is tied to a continuous performance management model that has the employee at its heart. In response to the businesses, we will further transform this process. Beginning in late 2022, you’ll be able to edit, add/or cancel goals at any point throughout the year - not just during specified windows. Looking beyond Fusion Our HR transformation won’t be over when Workday goes live. The system will continue to evolve with us. With two releases a year, Workday will further enhance its functionalities and add new features, and we’ll keep working on opportunities to further simplify and automate. While the work won’t stop at go-live, it will be a giant step towards a more personalized, streamlined and digitized HR experience at ABB!

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— Turning openings into opportunities Reinventing Talent

Acquisition to more quickly find the best-fit candidates for open positions

Every year, ABB hires for about 10,000 open positions. The recent and upcoming changes to the recruiting process, which are based on business feedback and requirements, will attract better-fit, high-quality candidates and create an exceptional experience for them long before they join the organization. Have you noticed the changes in our job ads? We’ve revamped them to help us stand out, and attract and intentionally recruit for diverse candidates. These changes are also in line with our new employer branding identity and reflect ABB values and work spirit. Next time you need to hire someone, your Talent Partner will assist in selecting from more than 100 carefully crafted job advertisement templates. These templates are available in different languages and help simplify the recruiting process by following one global standard. Targeted outreach and improved communication

Not only are the look and feel of our job posts different, but we’ve also taken bold steps to introduce gender-neutral, inclusive language, and position ourselves with a D&I statement at the top of each job ad. We also aim to meet diverse talent where they are by posting open roles on prominent D&I job boards (e.g. through eQuest or Circaworks) and leveraging partnerships with organizations and associations committed to D&I, like the Society of Women Engineers (SWE), Femtec or Catalyst. With Femtec and Catalyst, we’re also organizing virtual training modules for our Excelle Program, which empowers women in our Early Talent programs to develop and own their career.

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Streamlined application and enhanced welcoming experience On LinkedIn alone, our open roles get more than 17.2 million views a year. With the new candidate relationship manage- ment system, which is equipped with artificial intelligence, it is easier for recruiters to weed through applicants and identify the right candidates who best fit the job requirements. The new External Career Portal also pro- vides candidates with personalized job recommendations, job alerts and a fit score. These features help candidates make informed decisions and choose the best open roles for them at ABB. Please note that ABB employees are, by default, directed to the Internal Career Portal. In order to view the external career site linked above, please either log out from your Internal Career Portal account, use a different browser, or view the site in a new Incognito window (for Chrome) or a new InPrivate window (for Edge). Shortlisted candidates receive a video guiding them through the next steps, which include a digital assessment, capability to record on-demand video interviews and scheduling their interviews using a dedicated ABB branded tool. Once the offer is accepted and the contract is signed, candidates receive a personalized video which shows how excited we are to welcome them aboard. Finally, a new global onboarding portal offers all the important information a new employee needs for their first 60 days. For an exciting summary of all of the changes being made to reinvent our candidate and new hire experience, please access this video.

Data-driven hiring decisions Our new career portals also elevate the hiring manager experience. Beginning in mid-June, Talent Partners will have access to an analytics module that will provide a wide range of dashboards and actionable insights. With this new analytics module, your Talent Partner can help you understand: • The performance of your posting(s), e.g. how many times they have been reviewed, • Where your candidates are coming from, • How they learned about your open role, • Access job seeker forecasts and hiring pipeline analytics, • Follow application trends, and • Assess the success of the recruiting campaign for the position in your team. Once this launches, you’ll be able to work with your Talent Partner to make hiring decisions based upon a completely new breadth of data.

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— HR policies: what’s new? Four new core HR policies are now applicable and available

With the introduction of the ABB Way last year, all functions have been reviewing and updating their core set of policies and procedures that align with the new operat- ing model and that are mandatory for Divisions, Business Areas and Corporate to follow. The new four Core HR policies are now applicable and available in the ABB governance portal. The Core HR policies: • Are simplified and standardized to focus on providing critical information to line managers, including their roles and responsibilities. • Replace the regulations created during the ABB-OS transformation – where applicable those prior policies have been incorporated into the Core HR policies. • May be supported by Core HR proce- dures, which provide additional details and carry the same weight and compli- ance requirements as the policies. • Govern all of ABB and define what is mandatory for all Business Areas and Divisions, Corporate and GBS. Introducing the four Core HR Policies • Hire to Retire: defines the global processes related to Talent, Talent Management, Performance Management, Employee Life Cycle (e.g. onboarding, promotions, internal transfers, terminations, retirement), Payroll, Compensation, Benefits, Global Mobility, Learning& Development,

People Analytics, Job Architecture, and Master Data Architecture

• Labor Relations: lays out items such as managing labor disputes, consulting during organizational changes and negotiating material for bargaining agreements • People Development: describes the core elements of Diversity & Inclusion, ABB Leadership Way, Employee Engagement, Employer Brand and Open Job Market • Performance & Reward: includes people performance management, salary reviews, short- and long- term incentive programs, job evaluation, benefit plans, employee business travel and global mobility programs What’s next? The Core HR policies will be periodically reviewed and updated to ensure clarity, simplicity and consistency. Currently, the focus is on developing Core HR procedures to support the Core HR policies. Together, these items will provide specific gover- nance information, including the roles, responsibilities and expected actions. The Core HR procedures will be introduced throughout 2021 and will also be published in the governance portal. Please take the time to familiarize yourself with the Core HR policies. If you have further questions, contact your HR Business Partner.

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

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