People

This extract from the Halma plc 2016 Annual Report & Accounts has not been updated since publication in June 2016.

 

Our sustained, high level of performance has been achieved through the commitment, innovation and excellence of our people.

We believe in empowerment. Our decentralised management structure allows local managers to be autonomous and be responsible for making timely decisions in the best interests of their business. Halma supports personal and professional development through a range of training programmes. The value of this investment is shown both in our financial performance and succession planning. Almost all of the members on our Executive Board have been promoted from our subsidiary companies.

We are committed to innovation and customer satisfaction. Creating and developing new products and new ways of working gives us a competitive edge, while delivering solutions to some of the world’s major problems in safety, health and the environment.

We encourage the sharing of knowledge and technology throughout Halma. This ability to transfer state-of-the-art technology from company to company, from one sector to another, is something most of our competitors simply do not have. Through collaboration and sharing best practice we continue to deliver market-leading products that create benefits for our customers.

We invest a lot of time finding and developing the right people who have the initiative, knowledge and leadership qualities to make a positive impact.

In return, we offer:

  • The opportunity to make a difference – our products make the world a safer and healthier place;
  • An entrepreneurial business culture;
  • In-house training for personal and professional development;
  • International career development opportunities;
  • Performance-linked rewards;
  • A culture of innovation; and
  • An environment in which success breeds success.

Our Values

Periodically we complete a survey of employees to determine whether our core values are authentic in our organisation. The survey establishes the values individual employees wish to see in our operating culture and to what extent they exist in our current culture. In 2006, our survey of senior managers showed that five (50%) of the values they wanted to see in our business were actually present. Since then, we have improved the accessibility of the survey by making it available in paper format as well as online, and by offering it in various languages. In the latest survey, conducted in January 2016, we had record participation, increasing 12% on last year. The number of matching values met the target of five (50%) indicating that the alignment between the values that employees want to see in their business and the values that are actually present is very good.

Our value driven culture consistently demonstrates a sense of purpose in our businesses – teams that are aligned and highly productive and people that take pride in and have commitment to their work – resulting in a highly engaged and loyal customer base.

The Group will continue to monitor the survey results to enable us to better support our people in bringing these values and strengths to work so that they and we may derive further benefit from them.

Values Alignment KPI

Values alignment (out of 10)

Performance

5

Target

≥5

Value Alignment KPI 2016

Strategic focus
Halma conducts an annual survey of its employees to assess how well the Group’s values are aligned with its employees’ current experiences and future aspirations.

KPI definition
The survey of Group employees looks for matching values in a comparison of the 10 current culture values with the equivalent 10 values employees want to see in their working culture.

Comment
The results indicate consistent alignment over each year, meeting or exceeding the target of five or more matching values. Numbers of participants in the survey have increased by 12% since last year.

2017 target
The goal for 2017 will be to continue to improve the Group’s communication of its values and to maintain the high rate of employee participation in such surveys.

Employee consultation

This extract from the Halma plc 2016 Annual Report & Accounts has not been updated since publication in June 2016.

The Group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Group. This is achieved through formal and informal meetings, the Group collaboration platform and the annual financial statements.

Employee representatives are consulted routinely on a wide range of matters affecting their current and future interests.

Diversity

This extract from the Halma plc 2016 Annual Report & Accounts has not been updated since publication in June 2016.

We see diversity and inclusiveness as an essential part of our productivity, creativity, innovation and competitive advantage. It is the foundation of a performance culture that promotes respect, understanding and appreciation of different perspectives, backgrounds and experiences.

Developing regions, including China, Brazil, India and Africa make up an increasing share of the world population. They will account for approximately 88% of the global population by 2050. Economically, diverse markets represent a growing source of consumption and buying power, and we must be prepared to serve the needs of the changing marketplace.

Because our customer base is constantly changing and growing, we need to be prepared in the following ways:

  • diverse and inclusive enough to recognise the needs of customers in our current and new markets;
  • aware enough to anticipate, respond to, and serve the needs of the changing marketplace; and
  • engaged enough to contribute at the highest levels to deliver superior performance.

By increasing the diversity and inclusion of our workforce and leveraging the insights of our diverse talent through an inclusive environment, we enhance our ability to compete in the world’s increasingly diverse marketplace. Our efforts are directed towards increasing the proportion of individuals with experience in the business and geographic markets in which we see our operations growing.

Our strong preference is to develop policies and actions which support our long-term aims as well as establishing appropriate measurable targets. We believe the former evolves into being embedded into corporate culture more readily.

As part of our Diversity and Inclusion Initiative, we have a new programme which encourages our operating companies to review the diversity of their directors. Where companies decide that they need greater diversity they now invite a member of staff to join board discussions and decision-making as ‘co-opted’ board members.

Co-opted board members are chosen for their ability to make a valuable contribution to board discussions. Their participation is entirely voluntary and they have no legal responsibilities. They usually contribute to board discussions for a year and then another employee is invited to fill the role.

You can read our Diversity and Inclusion Policy here.

Geographic diversity

As our businesses continue to expand globally, it is imperative that the insights and perspectives of local markets be represented on our leadership teams. Several Group initiatives have been implemented to support and encourage our operating companies to put leaders on the ground in key markets. We have well-established Halma hubs in China and India and have expanded into Brazil as well. The China hub has introduced innovative R&D programmes to incentivise local product development for local markets. We continue to seek ways to ensure that local leadership is contributing to the global business strategies.

Gender diversity

Gender diversity charts

  1. Includes non-executive Directors of the Company.
  2. For Halma, 'senior managers' is defined as subsidiary company officers and above.
  3. Figures as at 2 April 2016.

Disabled employees

Applications for employment by disabled people are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort will be made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of disabled people should, as far as possible, be identical to that of other employees.

Diversity policy

At Halma we recognise that the diversity of the people in our business and the inclusion of all enriches our products, performance and the lives of our employees. We believe that the diversity of our workforce contributes significantly to our aim to protect and improve the quality of life for people worldwide.

We are building a culture that encourages talented people of all backgrounds, beliefs or any form of personal identity to be involved, respected and inspired to develop to their full potential.

Our intention is to create effective team environments that enhance decision-making processes. We achieve this by encouraging the contribution of unique perspectives and capabilities to achieve superior business results through trust, collaboration and innovation of new ideas.

By ensuring fairness and equality of opportunity in recruitment, training, development, career progression and reward, Halma is committed to ensuring diversity and inclusion in the workplace and all areas of our business.

Each year the Board reviews our policies and their implementation to ensure that they create and maintain a diverse and inclusive organisation. To the same end, the Executive Board recently revised our KPIs for Diversity to reflect our ambitions for representation of women and international leaders at all levels in our Group.

Halma believes that the diversity of our staff is a significant contributor to our success and has identified two specific areas for improvement in Halma’s organisation, particularly at managerial levels:

  1. Geographic diversity – each board to include at least one member whose nationality is other than US, UK or European. For Emerging Market headquartered companies, this becomes reversed and the goal is to have at least one member whose nationality is of the US, UK or Europe.
  2. Gender diversity – to have at least 30% female executives on operating company boards by the end of our 2019 financial year.
People development

This extract from the Halma plc 2016 Annual Report & Accounts has not been updated since publication in June 2016.

We offer challenging personal development programmes to raise the quality of leadership throughout Halma. Our development programmes are designed to promote personal growth, enhance leadership and relationship skills. They also offer the chance for employees from diverse Halma companies to come together and learn from each other.

Our objective is to provide these individuals with the tools and training they need to achieve more in their existing role and potentially to advance through the organisation if their achievements merit it.

The following courses are offered in China, USA and Europe:

  • HPD Enterprise – developing ability at Managing Director and Sector Vice President level to innovate across all aspects of the business;
  • Talent Mindset – ensuring the Group and company leaders have the capability to maximise the quality of talent on their teams;
  • HPD Executive – focusing on the leadership skills needed at board level in our operating companies;
  • HPD Management – personal development, enhancing self-awareness and teamwork skills for managerial roles; and
  • HPD Graduate – our graduate programme recruiting and developing the next generation of leaders and technical specialists.

HPD Enterprise was launched in April 2016 and helps our Senior Vice Presidents and Managing Directors to think entrepreneurially about how they can grow their businesses in fast-changing markets. HPD Executive and HPD Management are well established programmes and the cumulative number of candidates that have completed each course is set out below:

During the year we launched a new programme that will see Halma MDs serve as a non-executive director on the board of a sister operating company. We anticipate two-way benefit from this programme for both the receiving company to gain additional insight, perspective and talent; and for the non-executive director to have the opportunity to see how another Halma board operates.

Development programmes (KPI)

Development programmes (management development)

58%

Performance

>50%

Target

Management Development KPI graph

Strategic focus
Halma development programmes provide key personnel with the necessary skills they need in their current and future roles; new programmes include non-executive director (NED) opportunities, enterprise programmes and sales management development, alongside our refreshed executive, manager and graduate programmes.

KPI definition
Number of current employees having attended an in-house development programme compared with the estimated pool of qualifying participants.

Comment
We met our target, with 58% of our qualifying participants having attended one of our development programmes. The performance metric is influenced by the introduction of new courses and new eligible employees joining the Group through acquisitions. Overall we are pleased with our performance and progress.

2017 target
Our range of new programmes, and the refreshment of existing programmes, indicate our continued commitment to achieving this KPI.