Building human capital is one of the four strategic pillars of the Aboitiz Group. Our Group’s Human Resources (HR) team is at the forefront of building human capital through programs that are centered on attracting, optimizing, and retaining the right talent. We look for A-people who believe in our purpose and our brand promise, whose values are aligned with our core values, and who will thrive in our culture.
The Aboitiz culture is the secret sauce of the Group’s success over the past 100 years. It is about people who shape, evolve, build our culture, and preserve our core values. In HR, our role is to find the right talents and place them at the right seat on the right bus at the right time.
The Group HR team functions as the governance body that develops policies and standards and instills best practices across the business units (BUs), a business partner that provides value-added services to our BUs, and a center of excellence for the Group.
HR’s strategic roles in these areas are delivered through 10 major initiatives, or what we refer to as “rocks.” Where relevant and appropriate, we initiate projects Group-wide to deliver on these 10 rocks. The BUs customize and execute these projects through their respective HR teams.
For talent attraction, our goal is to sharpen our ability to build talent communities and select the right talent with the right fit.
With our Strategic Workforce Planning (SWP), we are able to anticipate the talent needs of the Group, prioritize, and align these to the BU’s long-term strategic plans. This is a continuous process, reviewed and embedded in the annual strategic planning process of every BU. This is more important than ever as we move towards digital transformation and plan the talent pool that will be required for the future.
In 2018, we started building Talent Communities through online tools, enabling us to reach our target talent through social media channels like Facebook, Instagram, and LinkedIn. We also build communities and groups, and engage and source target talent through our employer brand communications and social events.
A critical strategy to build human capital is to increase our ability to attract the right talent through the power of a strong employer brand. Employer brand is crucial as to how talent perceives Aboitiz as an employer. To attract talent, we need to communicate our key attributes or qualities that would entice them to join our organization. These qualities have to be authentic and are actually being experienced by our team members. We have started the activation of our employer brand with our Employee Value Proposition (EVP): A Future Built by You.
We have five EVP pillars, namely, shaping a better future (inspiring purpose), personal growth, winning with integrity, finding a better way everyday (innovation), and together for the long haul (family-led).
The journey of employee candidates begins with Awareness, Consideration, and the Desire to Apply. Once shortlisted, they are assessed through tests and interviews. When there’s a right match or fit, they are onboarded. “Discover Aboitiz” is an Onboarding Program that ensures the candidate experience is seamless, personalized, and helps them quickly assimilate The Aboitiz Way.
The goal of talent optimization is to get our A-people to reach their highest potential in the Aboitiz Group.
The “Bugsay Program” is a Self-Driven Development mindset that we launched Group-wide in 2018. Following the 80-20 principle, 80% of career development comes from hard work and one’s own efforts, while the remaining 20% comes from the support of others – team leaders, mentors, and the resources provided. Talents are responsible for their own development and career growth in the company, with the support of their leaders.
The Group ManCom and each Business Unit Management Committee conduct regular Key Talent Reviews. Everyone is evaluated for succession and career aspirations and development options based on performance, competency, achievement, leadership capability, and potential.
Decisions for succession are made based on a “build, buy, or borrow” replacement strategy for key leadership positions across the Group. The Board of Aboitiz & Company has oversight over this process.
Under Learning and Development, aside from a regular set of core programs that comprise the Aboitiz Academy, we offer electives suited to the needs raised by our BUs, such as design thinking, agile and scrum courses, among others.
In 2018, we entered the digital learning space, introducing a platform that uses artificial intelligence to feed bite-sized, on-demand customized learning, all accessible via a mobile phone. We have also converted a few traditional workshops into gamified learning.
We have created five functional pools of high-potential talents in development clusters such as general management, finance, HR, technology, and legal. There are currently 128 high-potential talents in these clusters. Our aim is to develop these talents for bigger roles in the organization.
Our mentoring partnership program is an important development initiative that connects mentees and mentors from different BUs to facilitate cross-functional and cross-BU learning. It is one of our most in-demand development interventions, with a 276% increase in participation rate since its inception in 2016. This program is an important foundation for performance management, as we prepare to transition into coaching for performance and career development.
We take pride in our Leadership Development strategies. We have produced leaders from our ranks and today, 79% of our top executives are homegrown talents. As of 2018, 77% of vacancies for this level has been filled internally. This is a trend we wish to sustain in the future. The global benchmark for internal succession is at 75%.
We have what we call a Leadership Circle, composed of about 200 senior leaders from across the Group. We have adopted a leadership framework with the goal of deepening our collective leadership competence and effectiveness.
The goal of our talent retention is to give our A-people a compelling reason to stay with us for the long term.
In the area of Culture and Engagement, we commissioned Gallup in 2017 to help us do a baseline assessment of our team member engagement. Results showed that we are above average in having engaged team members while implementing significant growth and changes across the organization. We conduct frequent pulse surveys focused on areas of improvement in engaging our team members. The George tool pulse checks and creates visibility for team engagement.
Living our core values is most essential in shaping The Aboitiz Way culture. The behavior of AEV teams indicate that they abide by the Aboitiz core values of integrity, teamwork, innovation, and responsibility. They have personalized and live by these values inside and outside the workplace.
Under Total Rewards, we comply with all legal requirements and remain competitive in the market across all the industries where we operate. We provide compensation, benefits, and retirement packages that promote the current and long-term economic well-being of our team members. These remuneration packages are consistent regardless of age and gender, following a Group-wide position leveling framework based on competencies. All our companies also adhere to the highest standards of occupational health and safety.
Finally, under Group Executive Management, we are managing Group Systems Level (GSL) Talent. This program is used to rationalize positions to establish job levels and to manage succession and mobility, learning and development strategies, compensation, benefits, and rewards. Among our top-tier leaders, 87% are Filipinos and were hired from the local community, promoting the Aboitiz Group’s significant presence in the country. Of these senior leadership positions, 27% are female.
In 2019, we will focus our efforts towards building the right Group Human Capital Management Systems. These will involve updating our policies, processes, and guidelines and implementing a robust HR system that is intuitive, flexible, and can meet the requirements and priorities of our future workplace.
By choosing the right technology solution, we will be able to make HR’s day-to-day operations even more efficient. As such, we can spend more time in strategic business partnering rather than on transactional and operational HR. We aim to raise service levels and improve talent experience using technology and tools that are user experience-focused. We also intend to use data-driven talent analytics for decisions that will truly drive value.