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Transcript of 1 A New Organization – A New Focus: Valuing Work at Viterra Diane McLean, CCP, Manager...
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A New Organization – A New Focus: Valuing Work at Viterra
A New Organization – A New Focus: Valuing Work at Viterra
Diane McLean, CCP, Manager Compensation, ViterraDiane Panting, CCP, CHRP, Vice President, Aon Hewitt
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• Review innovative approach to compensation delivery
• Discuss Viterra's specific approach to valuing work at the new organization
• Understand links to HR programs
Learning ObjectivesLearning Objectives
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• About Viterra
• Valuing Work
• Viterra’s Journey
Presentation TopicsPresentation Topics
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About ViterraAbout Viterra
1 Unaudited Pro forma Statements for the 12 months ended October 08 (results not necessarily indicative of future performance)2 Based on October 8 share price
• The world’s largest exporter of canola
• Strategically located in the world’s top exporting countries
• $9 Billion combined revenue1
• $640 Million combined EBITDA1
• $4 Billion Market Cap2
• Over 4600 employees
• The world’s largest exporter of canola
• Strategically located in the world’s top exporting countries
• $9 Billion combined revenue1
• $640 Million combined EBITDA1
• $4 Billion Market Cap2
• Over 4600 employees
Moving essential ingredients from field to table
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Our HistoryOur History
Early – mid 1990s
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2
3
4
Today
Canada Australia
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Fully Integrated and Diversified Agri-Business CompanyFully Integrated and Diversified Agri-Business Company
WORLDWORLDFARMERFARMER
Customers throughout the entire value chain
Agri-ProductsAgri-Products Food/Feed ProcessingFood/Feed Processing
Grain Handling, Marketing, Logistics
Grain Handling, Marketing, Logistics
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• Shipments of up to 24mmt of grains/oilseeds annually • Exports to more than 50 countries
• Shipments of up to 24mmt of grains/oilseeds annually • Exports to more than 50 countries
KievKiev
BeijingBeijing
SingaporeSingapore
New Zealand
New Zealand
Southern AustraliaSouthern Australia
IndiaIndia
GenevaGeneva
JapanJapanCairoCairo
CanadaCanada
United StatesUnited States
Strategically Located in the World’s Leading Grain Exporting CountriesStrategically Located in the World’s Leading Grain Exporting Countries
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How Organizations Are Changing – Valuing WorkHow Organizations Are Changing – Valuing Work
Valuing employees as assets
• Increased use of technology and knowledge workers
• Globalization and competitive pressures
• Flattening, right sizing and reorganizations
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• Work less routine, demanding innovation
• Self-managed employees
• Demands for continuous learning
• More external awareness and knowledge
• Greater focus on customers
• More business acumen required
• Greater demands, broader accountability
How Work Is ChangingHow Work Is Changing
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How Organizing and Describing Work Has ChangedHow Organizing and Describing Work Has Changed
• Narrowly defined duties
• Minute differences
• Functional hierarchy
• Vertical Promotion
• Broad responsibilities
• Meaningful, substantive differences
• Flatter/matrix organization
• Lateral development
From To
JobJob Role/Job FamilyRole/Job Family
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What Has Been TriedWhat Has Been Tried
Typically with point-Typically with point-factor plansfactor plans
• Abolish the committeeAbolish the committee• Job questionnaireJob questionnaire• Computerized toolsComputerized tools
• Competencies/contribution
• Whole job ranking
• Market pricing
• Default: with no system, negotiation of pay by incumbent/job, at manager's discretion
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Traditional Job Evaluation –Job Evaluation Challenges
• Lack of flexibility in deployment of resources
• Subjectivity creates conflict
• Inefficient
• Bureaucratic
• Internal inequities
• Inconsistencies due to no shared understanding of values
• Labour intensive — both initial and ongoing
• Centralized control
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What Job Families Are
• Broad/more generic descriptions of work performed
• Reflective of increasing levels of accountability defined in relation to common elements
• Contemporary approach to documenting work and valuing work by grouping jobs into broad roles or job families
• Do not describe tasks or activities
• Job family levels are evaluated not individual jobs
Level 3Level 4
Level 2
Level 1
Level 5Level 3
Level 4
Level 2
Level 1
Level 3
Level 2
Level 1
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What Job Families AreWhat Job Families Are
Provide client support Provide client support to resolve issuesto resolve issues
Analyze data and Analyze data and assess impactsassess impacts
Develop project plansDevelop project plans
Manage project Manage project activitiesactivities
Provide guidance to Provide guidance to junior staff junior staff
Systems Analyst
Financial Advisor
EnvironmentalSpecialist
JobJob Job FamilyJob Family
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Valuing Work Framework – The Picture Comes TogetherValuing Work Framework – The Picture Comes Together
Sample Ranking of Job Families/Grades Based on Internal Relativities
Administrative Services
Professional Business Services
Sales
Marketing
Network Operations
Network Engineering
Grade 1 Grade 2 Grade 3 Grade 4 Grade5 Grade 6 Grade 7 Grade 8100-199 200-299 300-399 400-499 500-599 600-699 700-799 800-89930K 35K 40K 45K 55K 65K 75K 90K
PBS-2PBS-1 PBS-3 PBS-4 PBS-5
S-1 S-2 S-3 S-4 S-5
M-1 M-2 M-3 M-4
NO-1 NO-2 NO-3 NO-4 NO-5
NE-1 NE-2 NE-3 NE-4 NE-5
AS-1 AS-2 AS-3
GradePointsJob Rate
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Valuing Work Considerations
• Judgments based on commonly shared criteria
• Appropriate autonomy & flexibility for management
• Facilitate openness and understanding by employees
• Reduce need for ongoing job description preparation and evaluation
• Strengthen links to the competency model, performance management, career development and succession planning
• Free HR resources for more value added activities
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Initiative Success Factors Initiative Success Factors
• Ownership of the executive group
• Reinforcing shared understanding and buy-in around:
– Compensation philosophy
– Accountability levels and related ranking
• Bringing together disparate parts of the organization
• Opportunity for high involvement of employee teams
• Substantive involvement/buy-in of managers
• Communication throughout the project
• Training and education of managers and employees
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How About in Your Universe?
What challenges is your organization experiencing re valuing work – from the manager perspective and from the employee perspective?
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Viterra’s JourneyViterra’s Journey
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Project ObjectivesProject Objectives
• New organization – new compensation structure
• Sustainable model
• Framework for all employees – union and non union employees; North America and beyond
• Common terms and conditions for all employees
• Internal and external equity
• Foundation for other HR Programs
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Job Family Project Team - 2008Job Family Project Team - 2008
• Viterra
– Project Sponsor
– Compensation team
– HR Generalists
– Senior Managers in key business areas
• Aon team
– Compensation/Rewards
– Communication
– Technology
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What Were The ChangesWhat Were The Changes
• Development of Compensation Philosophy and Guiding Principles
• Job Families for all jobs below Vice President level
• Evaluation of job family levels for each job family
• Slotting of all jobs into job family levels
• New salary structure
• Introduction of variable pay for all employees
• Determination of costing to ensure all employees were paid in the range
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Viterra Compensation PhilosophyViterra Compensation Philosophy
Viterra is committed to providing a competitive total compensation package that recognizes and rewards employee performance and enables the organization
to retain and attract talented employees
• Provide employees with an attractive, market competitive pay opportunity that includes variable based pay
• Be competitive from a corporate and regional perspective
• Foster a pay for performance culture
• Utilize a universal job evaluation/classification plan to allow for mobility of talent
• Ensure pay practices reflect regional market and any legislative requirements
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Base Salary Guiding Principles:
– Competitive salary ranges to attract and retain employees
– Competitive salary increase budgets to reward and motivate employees
– Reflects performance and contributions of employees, motivate and reward performance and move salaries through the range
Variable Pay Guiding Principles:
– Focus management and employees’ efforts on the business objectives established by the Company.
– Designed to provide a competitive total cash compensation package
– Reward employees for significant achievements
Base Salary Guiding Principles:
– Competitive salary ranges to attract and retain employees
– Competitive salary increase budgets to reward and motivate employees
– Reflects performance and contributions of employees, motivate and reward performance and move salaries through the range
Variable Pay Guiding Principles:
– Focus management and employees’ efforts on the business objectives established by the Company.
– Designed to provide a competitive total cash compensation package
– Reward employees for significant achievements
Viterra Guiding PrinciplesViterra Guiding Principles
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• Using a partnership team from Viterra and Aon, determine how many job families and how many levels within each family
• Draft descriptions of progression
• Work with senior leaders to develop and finalize
• Develop Job Evaluation tool and evaluate each job family
• Work with senior leaders to slot jobs into family levels
• Gather market data
• With Aon’s Ubertool, evaluated levels and developed new salary structure – assessed impact
ApproachApproach
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Job Family DevelopmentJob Family Development
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Job Family DevelopmentJob Family Development
Job FamilyJob Family Number of Job Family Levels
Number of Job Family Levels
4 Levels
5 Levels
3 Levels
4 Levels
7 Levels
Business Support Services
Professional TechnicalAdvisory Services
Facility Operations
Sales Services
Management
CoreAreas
ofBusiness
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Challenge #1:
• Compensation Programs for both non union and union employees which supports Viterra's compensation philosophy and guiding principles
Solution:Competitive ranges + variable pay + pay for performance
Challenge #2:
• How to educate and communicate the new program
Solution: Assessed change management implications + Regional meetings + Managers Guide + Managers Online FAQ site + Job Family Brochure
Challenges & SolutionsChallenges & Solutions
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Challenge #3:
• Compensation Program for all business units – operations vs. enabling functions
Solution:Work closely with business leaders to ensure all core functions are
described + continually review to maintain
Challenge #4:
• Global differences in pay practices and policies
Solution:Global Total Rewards area reviews global job leveling + develop
different compensation structures to reflect regional pay
Challenges and SolutionsChallenges and Solutions
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Provides consistency in administration
- Accommodates differences in scope, complexity and accountability
- Streamlines job evaluation process
- Still have job descriptions which are slotted into job families, not evaluated individually with job evaluation tool
Provides the framework for:
- Performance Management
- Variable Pay
- Recruitment and Selection
- Career Development and Career Pathing
AdvantagesAdvantages
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• Ensure as much involvement from the business as possible
• Develop a project plan that encompasses all aspects
• Ensure sufficient time is taken with business to create buy-in and that the right amount of education is provided
• Communicate, communicate …
Lessons LearnedLessons Learned
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Progress since 2008Progress since 2008
• Phased in:
– Feed Products – Canada and US
– Fertilizer business
– Food Processing - Oats
• Acquisitions:
– Canola Crushing plant
– Australia Barley Board (ABB)
– Dakota Growers - pasta plants
– Other smaller acquisitions
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Does Approach Work for Viterra?Does Approach Work for Viterra?
• Changes made are consistent with compensation philosophy and commitment to employees
• Values work performed and provides progression of responsibilities
• Pay equity compliance
• Starting to align other HR programs
• Communication challenges exist with diverse and global company but managed
• With new lines of business being acquired have to review tools and determine whether refinements need to be made
Comments/Feedback/Questions?Comments/Feedback/Questions?
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Thank You!Thank You!
Diane McLean, Viterra(204) [email protected]
Diane Panting, Aon Hewitt (204) [email protected]
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Live Long and Prosper!