June 2021 HR Lineup

HR L I NEUP JUNE

14

— 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.