October 2021 HR Lineup

— HR Lineup

October 2021

— Table of contents

ABB Engagement Survey: make sure your team’s voice is heard and acted upon! Listening is just the first step. We must also fully embrace feedback and take action Single Cycle Learn how performance, incentives and salary review work together Promoting the Open Job Market How to champion the change Successful recruitment made simple Step-by-step guidance for hiring managers New Leadership Learning Ecosystem explained An interview with Guillaume Delacour, Head of People Development GBS HR – Supporting Business Success Business Area HR leaders weigh in on GBS HR governance and how it supports the people experience New HR procedures now in place Learn how they support core HR policies

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— HR Lineup

Bi-monthly publication for ABB line managers

Welcome to the October 2021 issue of the HR Lineup , a tool created in response to your requests for Human Resources 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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— ABB Engagement Survey: make sure your team’s voice is heard and acted upon! Listening is just the first step. We must also fully embrace feedback and take action

A look back since the last survey Last year we had significant improvement in the overall engagement score, increas- ing by four points to 75. Even though progress was made, employees asked for more clarity. In response, the Executive Committee decided to keep ‘Company Direction’ as the priority. Since our last survey, we have continued to clarify the ABB Way, our decentralized structure and our strategy for the coming years. For example, we continued the ABB Circles team discussions on the ABB Way with the Purpose at its center, and we have also further explained our shared company values of courage, care, curiosity and collaboration. We continued to actively manage the company’s portfolio by establishing new divisions, as well as executing divestment decisions. Going back to the Purpose, our commitment to the 2030 strategies for Sustainability and Diversity and Inclu- sion can be seen through initiatives such as the Global Parental Leave program and the launch of the Sustainability Changemaker Award.

ABB’s third annual Engagement Survey will launch on Tuesday, October 19, 2021, and will be open until Tuesday, November 2, 2021. Read more below to find out why engagement is important and how you can make sure that the voices of our employ- ees are heard! Engagement is at the heart of organiza- tional success. This annual survey provides a formal mechanism to understand how our people feel, and allows all of us to voice our opinions and suggestions. It also helps us to understand what is going well in the organization, enabling us to build upon our strengths, as well as address areas for improvement. Why do we focus on employee engagement?

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Review and close your team actions from last survey To maintain this engagement and ensure an open line of communication for honest feedback, we need to show our teams that their input is considered. After all, only by addressing employee feedback can we have engaged and inspired teams. For line managers who received team results last year, we trust you took the opportunity to discuss both strengths and improvement areas at your team level – either face-to-face or virtually – and worked together with your team members to develop associated actions. We now ask you to look back on the past months and see if progress has been made on those agreed actions. It is critical that you have closed the loop with your team and check in on the progress made. “You speak. We listen. Together we act.” ensuring that your team’s voice is both heard and acted upon is crucial. You can increase the engagement of your team by: • Highlighting actions taken since the last survey; • Encouraging employees to participate in the 2021 survey, while indicating that participation is voluntary; and • Giving confidence to your teams that confidentiality of the survey results is guaranteed. For more information about survey confi- dentiality, as well as your role in communi- cating results and taking action, please review these Line Manager resources. Your role as Line Managers: In the context of this year’s tagline

What happens next? • Just like last year, ABB employees with a business email address will receive a personal email invitation from Glint, including an individual link to take the survey. Employees without an ABB email address will receive an access code to participate in the online survey via a computer terminal/kiosk or on their smartphone or tablet using a QR code provided via posters and roll-ups. • To keep the momentum, this year the results platform will open on November 10 , just one week after the end of the survey. As before, if you have at least five team members who respond to the survey, you’ll be able to review and download consolidated reports/results. • Training will again be available to provide a walkthrough of the Glint platform and guidance on how to navigate through the results, create and keep track of goals and action items, and hold future conversations with your team. The training is a live virtual session led by Glint, and the same training will be run on three different dates/times in October and November. You will receive invitations so that you can attend the ses- sion that best fits your schedule. The sessions will also be recorded for those who can’t attend. We look forward to the launch of this year’s survey, and continuing to show employees how their input truly makes a difference.

Nov 10 Results Release

Response Window

O ct 19 launch

Nov 2 close

Nov 3, 08.00 – 09.30 CET Live Virtual: Manager: Talking Action (option 2)

Nov 15, 16.00 – 17.30 CET Live Virtual: Manager: Talking Action (option 2)

Oct 28, 16.00 – 17.30 CET Live Virtual: Manager: Talking Action (option 1)

— A high-level overview of the upcoming 2021 Employee Engagement Survey including manager training and results release

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— Single Cycle Learn how performance, incentives and salary review work together

ABB follows a business-focused, inte- grated Single Cycle for the management of employee performance and compensa- tion (salary and short-or long-term incen- tives where applicable). The Single Cycle features a common global timeline which aligns performance-based compensation decisions such as the annual salary reviews, short-and long-term incentive programs, and related sub-processes.

The Single Cycle is set up in a manner that allows coordination of global and local ex- ecution and necessary global governance and compliance, while providing business ownership and successful, streamlined de- livery, irrespective of geography. While the Single Cycle is a continuous process, it does have a number of clear and defined touchpoints based on the common global calendar. An overview of the key dates for 2021/2022 are:

PDA opens

December 1, 2021 January 24, 2022

PDA ratings to be confirmed in PDA tool

AIP Individual Performance Measure and Marketing & Sales measures confirmed in the HRGT system

January 24, 2022 February 28, 2022

PDA closes for goal setting

Global and local compensation planning commences

March 1, 2022

Effective date for any salary increases

March 2022 payroll*

Effective date for salary increase processing

March 2022 / April 2022 payroll**

* Unless governed by local legislation or Collective Bargaining Agreements (CBAs) ** Depending on in-country payroll processing date

Components of the Single Cycle

The Performance and Development Appraisal (PDA) is a component of people performance management and the Single Cycle. The PDA is an important commit- ment that gives managers and employees an opportunity to have honest, quality conversations that recognize strengths

and results, and also provide advice and coaching on how to deliver even better performance. Through the PDA, managers and employees engage in a formal two- way conversation that reflects on the past year and establishes expectations for the coming year.

Occurring between December and February, the PDA consists of the following components: • Employee self-review and appraisal, • Manager review and appraisal of employee performance, • Manager and employee performance discussion, • Manager and employee agreement on up to four (4) Performance Goals and up to two (2) optional Behavior Goals, • Finalization of PDA by manager, including the allocation of a performance rating for the past year, • Employee acknowledgement that a performance conversation occurred, and that the PDA document reflects the key points of the discussion. For more information on the PDA, please visit the People Performance Management page on Inside+.

During the PDA process, for employees who are eligible to participate in the Annual Incentive Plan (AIP) , managers are required to confirm the measures that form part of the assessment for AIP Award calculations by providing: • Individual Performance Measure (IPM) achievement • Marketing & Sales (M&S) achievement, where applicable. Annual Salary Review (ASR) refers to a global review of ABB’s employee salaries that is generally conducted following the conclusion of the annual performance review and as part of the Single Cycle. ASR is an important aspect of ABB’s reward strategy in which an employee’s salary is assessed and, where warranted, adjusted based on multiple factors. Finally, the Long-Term Incentive Plan (LTIP) rewards senior-level employees for achieving strategic company objectives and specific goals which are set to support shareholder value creation. LTIP awards are also determined as part of the Single Cycle. For more information on AIP, ASR and LTIP, please visit the Single Cycle page on Inside+. Watch for additional communication regarding the Single Cycle, including key dates and training and information ses- sions over the coming months.

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— Promoting the Open Job Market How to champion the change

With the introduction of the Open Job Market (OJM) in September 2020, employ- ees are empowered to take full ownership of their careers. They have more visibility to the opportunities that are available across the whole company, and, as a re- sult, have increased chances to actively grow their careers and seek new assign- ments of interest. As a manager, you play a critical role in championing this change, encouraging your team members and supporting them to make bold choices, actively plan for their career growth, develop their skills, and apply for new positions. You also have a great opportunity to identify and hire fresh talent from other parts of ABB into your own organization. By initiating open conversations about the OJM approach, you can make it easier for your team members to consider and discuss their aspirations – and once you know what they want and what they are

planning, you can support them as they prepare to interview for new roles. We also know that career progression is an important factor in employee engage- ment, and while there was some improve- ment in the career-related questions in the annual engagement survey last year, ABB is still two points behind the external benchmark. One particular engagement survey comment sums up the opinions of many: “ABB has good career opportuni- ties without any doubt, the only challenge will be if we are allowed to explore those opportunities.” This means being willing to let team mem- bers go on to learn new skills, experience new situations and work with different teams to help them develop the compe- tencies needed to progress their careers. It also means being open to hiring new and diverse people, and giving them an opportunity to learn and obtain the critical experiences needed to succeed. Managers have a responsibility to develop talent for the organization as a whole.

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OJM gives you a wider pool of talent to se- lect from, and the chance to bring fresh energy, ideas and skills to your team. The world is changing fast, and it is much harder to lay out clear career paths for em- ployees today. While it’s a positive thing that there are now many more potential routes, this lack of clarity can leave some employees feeling uncertain and insecure. Coaching them to adopt a learning mind- set, embrace change and be constantly open to new opportunities will help ensure they maximize their potential, both for themselves and for ABB.

Here are five simple actions you can take to help develop talent for ABB:

Bring up the topic of the OJM in a team meeting and encourage open discussion. Reassure your team about any concerns they may have, and reaffirm the benefits of the OJM. Let them know it’s ok for them to apply for new roles! Make it clear you value each of your team members for what they contrib- ute to your team, but that you also care about their longer-term career development and support them in their desire for professional growth. Share your positive personal experiences of the OJM (or others you are aware of – see success stories in this recent article) – did you find your own job through the OJM? Or maybe you’ve already recruited a great new asset to the team through the OJM?

Have regular discussions – outside of the performance manage- ment windows – with your team mem- bers about their career aspirations, the skills and experiences they need, and which job opportunities can help them get there. When an employee tells you they are applying for another position, show your support in practical ways. For example, by offering to review their application/CV, conducting a mock interview with them, or coaching them on the kind of questions to prepare for. The Open Job Market puts power into the hands of employees, but line managers also reap the rewards, and so does ABB as a whole. For more information, please visit the Open Job Market page on Inside+.

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— Successful recruitment made simple Step-by-step guidance for hiring managers

Every year, ABB publishes approx. 10,000 open positions in line with the Open Job Market. Filling these job opportunities with talented and qualified people re- quires close partnership between Hiring Managers and HR. In order to enhance the Hiring Manager experience, we have established an Inside+ page providing step-by-step guidance regarding the re- cruitment process. The intent is to create visibility on what actions are required in each moment and clarify responsibilities.

Starting from tips on what to consider even prior to the official process, all the way through providing feedback once the hiring has been concluded, Hiring Manag- ers will find valuable information, ‘how to’ videos and other resources to navigate the recruitment process. Are you currently recruiting for an open position, or planning to do so in the near future? Visit our Inside+ page today!

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— New Leadership Learning Ecosystem explained An interview with Guillaume Delacour, Head of People Development

the EL functions. These roles allowed me to gain insights on what our leaders need when it comes to development and career opportunities, from the view of both Busi- ness and Corporate. The roles also took me out of my comfort zone, driving my professional growth, and enabling me to connect with a broad range of great lead- ers and HR colleagues from whom I have learned a lot. In my new role as Head of People Development, I intend to use these experiences to boost a culture of lifelong learning and further empower our people to take their careers to the next level. HR Lineup: Why is introducing the new Leadership Learning Ecosystem crucial for our leaders? Guillaume: I believe three main reasons have led us as an organization to embark on a complete change of our learning strategy. First, we are all working in an increasingly complex, fast-changing, hyper-competitive world and often in a re- mote world. What we know and how we put it into practice becomes obsolete very quickly; we all need to continuously learn and upgrade to newer versions of our- selves to evolve as leaders. Second, over the past 18 months we have transformed the organization through the introduction of the ABB Way, ABB Purpose, ABB values

Guillaume Delacour, Head of People Development

We recently connected with Guillaume to discuss the new Leadership Learning Ecosystem being rolled out to all ABB leaders. Read on to learn more about how you can benefit! HR Lineup: Guillaume, thank you for taking time to talk to us about the new Leadership Learning Ecosystem. Before we jump into to the topic, we’d like to ask about your personal learning experience with ABB and what you have learned as a leader? Guillaume: Hello and thank you for the opportunity. I joined ABB in 2017 as Global Talent Management Lead, and later took the role of Global HR Business Partner for

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and, as part of the 2025 People Strategy, our Open Job Market. Now, we need to ensure that the leadership learning offer- ing remains relevant to the ever-evolving business and functional needs. Third, as leaders we do not accept anymore a one- size-fits-all approach. We all learn differ- ently, at different times and in different locations, and have different needs; we want a leadership learning offering that recognizes it. To address this change in our learning strategy, a team has been put in place, and the launch of the Leadership Learning Ecosystem is the result of great teamwork over the past months. Guillaume: Allow me to take Berlin as an example. Over the past years Berlin has become a place of reference for start-ups in Europe. Why? Because in one place you have the proximity of universities and research centers, co-working spaces, investors, entrepreneurs and students from around the world, good quality of life at an affordable price, a breeding ground for creative people, a safe economic and political environment, an active job market, etc. This combination of factors has made Berlin a great ecosystem where start-ups grow and thrive. Likewise, we envision the Leadership Learning Ecosys- tem to be a place where: • Technology will enable all our leaders to Learn, Connect and Grow in a continu- ous manner, anytime, anywhere, accord- ing to their learning style. • Leadership learning content will be a combination of core content coming from Harvard Business Publishing, and from a variety of partners including busi- ness schools, thought leaders, and ex- perts from the Business and HR worlds. The combination of contents, formats and delivery modes should allow our learning needs to be met in agile way. • All leaders are in the driver’s seat of their own development, supported by their re- spective managers and HR, and also HR Lineup: What do you mean by an Ecosystem?

of the development of their teams and other colleagues, by designing learning paths for themselves or even delivering some sessions – we learn so much by teaching! HR Lineup: This all sounds very exciting! What is already available today? Guillaume: First elements are already in place, and I really encourage everyone to check out our new Leadership Learning Ecosystem webpage. Here you can find instructions on how to access the Harvard Manage Mentor site, a series of dates for live webinars explaining in more detail how to best leverage all the functionalities of the Ecosystem, information about our two new leadership transition programs targeted at first time managers, and our exciting learning path to further develop curiosity during Q4. All facilitated programs have limited seats, and more information on how to register is provided on the webpage. For now, all programs will be delivered remotely by ABB Learning Coaches and external facilitators. If the epidemiological situation allows for it, we will hopefully turn these programs into a hybrid delivery mode. The Ecosystem will gradually grow as more and more leadership programs and learn- ing solutions will be launched centrally from the Corporate People Development team, in the businesses and functions, and by the managers themselves. This is a virtuous circle – the more offerings we have, the more users will connect to the Ecosystem, who will in turn increase the lifelong learning offering, etc. HR Lineup: Thank you very much! We are looking forward to seeing this come to life. Guillaume: I cannot wait for us to Learn, Connect and Grow together in our new ABB Leadership Learning Ecosystem!

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— GBS HR – Supporting Business Success Business Area HR leaders weigh in on GBS HR governance

and how it supports the people experience

With the introduction of the ABB Way operating model, there have been ques- tions raised regarding the scope of GBS HR and its governance. This article was drafted in response to your questions and to help clarify how GBS HR supports the businesses. The current GBS Human Resources organi- zation was established in late 2019 as part of the ABB-OS transformation. It is organized into three pillars: GBS HR Expert Services, GBS HR Operational Ser- vices and GBS HR Excellence. Through these pillars, GBS HR strives to create an outstanding people experience, part- nering closely with the businesses to help drive ongoing growth and success. In the context of the new Hire to Retire (H2R) core HR policy, GBS HR has been given by businesses the responsibility for delivering all common HR processes. As Herve de Barbeyrac, Process Automa- tion (PA) noted, “this delivery model helps the businesses to benefit from more ef- fective and efficient HR support, to be more agile in addressing business evolu-

tions, like divestitures and acquisitions, and contributes to productivity targets the businesses have to deliver.” From a governance standpoint, GBS HR exists within and among the businesses, and there are regular touchpoints between GBS HR and various key stakeholders in the business areas, divisions and countries to ensure continued alignment. These touchpoints enable active collabora- tion as well as regular opportunities to review, challenge and support GBS HR performance with investments and improvement plans. They also allow con- tinuous alignment and prioritization on future people-related actions. “In my view, the strongest benefits of working with GBS HR include driving resource efficiency and realizing opportu- nities to optimize operations for both core and common processes,” said Cherry Sheng, Motion (MO). “I have seen good progress in both transparency regarding the GBS HR operating model and perfor- mance, and KPI-based performance management. What we need to continue

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to focus on is a shared understanding of the end-to-end impacts,” she added.

I appreciate the efforts being made on all fronts to drive toward better awareness and understanding of priorities – and to fill any gaps that may exist,” added Giovanni Chirichella, Electrification (EL). As the organization continues to evolve, and changes to our ways of working are introduced through Project Fusion, the exciting HR digitalization initiative which includes implementing a new global HR system, GBS HR is committed to living up to its tagline of Your People Partners. To learn more, please visit the GBS HR Inside+ page. And be sure to participate in any GBS HR surveys you may receive, as your candid feedback will enable continuous improvement and enhanced performance.

Anthony McFeely, Robotics & Discrete Au- tomation (RA), agreed, noting “our part- nership is maturing all the time. We have clear KPIs, which enable focus and clarity, and we are very much operational. We need to continue to expand, and we are all working to look at the broader user experience end-to-end. By leveraging GBS HR’s scale and expertise with cross-business learnings, we are able to do this more effectively and better prepare for the future.” “We have seen a positive trend in our abil- ity to be more proactive due to an en- hanced customer-focus from GBS HR, and

— ABB HR Model: Structure, governance, delivery

Line Managers, Employees, Candidates

Corporate policies and selected core processes

Common processes

Distinct processes

Corporate HR

Business Area HR

GBS HR

Labor Relations

Electrification

Expert Services

People Development

Motion

Operational Services

Excellence & Project Fusion

Performance & Reward

Process Automation

Robotics & Discrete Automation

CORPORATE

BUSINESS

CHRO

— The entire Human Resources function works together to deliver a positive people experience for ABB. GBS HR exists within and is governed by the businesses – there are regular touchpoints between GBS HR and the business areas, divisions and countries to ensure continued alignment.

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— New HR procedures now in place Learn how they support core HR policies

The following core HR procedures are effective August 1, 2021.

Throughout 2021, HR is developing and sharing several core HR procedures sup- porting our recently announced core HR policies, which can be found here. These procedures expand on the policies and provide details such as roles, respon- sibilities and expected actions. It is man- datory for all Divisions, Business Areas, GBS and Corporate to follow these policies and procedures.

Performance & Reward policy • Compensation structure procedure – sets out the principles behind the de- sign of ABB’s compensation structures, the basic framework that applies to all countries and the key directions on adherence. • Salary planning and review procedure – defines the directions for carrying out salary actions in alignment with ABB’s principles for salary review, and de- scribes the key concepts and processes associated with salary reviews, including salary planning and salary ranges. Labor Relations policy • Labor Relations procedure – describes in more detail the directions which en- able ABB to comply with legal and regu- latory requirements. All of the core HR policies and procedures are available under the HR section of the ABB governance portal. If you have any questions, please contact your HR Business Partner. The following core HR procedures are effective September 1, 2021.

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

https://go.insideplus.abb.com/about-abb/global-business-services/gbs-human-resources

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