bat sustainability report 2007 - Attracting, developing and retaining talent

Some of our employees

The importance that we place on our people is highlighted in the Winning Organisation component of our Group strategy. Winning Organisation for us means that we successfully attract, develop and retain outstanding people and that we create a great place for them to work.

We are dedicated to providing equal opportunity to each prospective and current employee. Our Employment Principles mean that we will not discriminate when making decisions on hiring, promotion or retirement on the grounds of the candidates’ or employees’ race, colour, gender, age, social class, religion, smoking habits, sexual orientation, politics or disability. Our approach is based on the inherent requirements of the job, matching the ability and potential of the individual.

Our human resources strategy expresses our aim to build sustainable talent pipelines and an open, confident culture.

"What measures are attractive to people who are interested in working for British American Tobacco? What’s the employer brand?"

Business partner in dialogue

We aim for all our managers to be committed to developing high-quality people who can make a difference to our business. We also help employees to take ownership of their own careers and take on bigger business challenges.

Our companies, while operating to the Group Employment Principles, address their employee management and development issues, in ways that are most appropriate to their business environments. This allows initiatives to be highly customised and better able to generate results.

Managing the talent pipeline

Our guiding principles

Open-Minded... we encourage free thinking and expression.

Enterprising Spirit...we embrace change and innovation.

Strength from Diversity... we leverage individual differences.

Freedom through Responsibility... we create stretch and space for people to perform and enjoy.

By developing our people, we believe we build an essential continuity of leadership, though we use external recruitment to supplement this where necessary. Recruitment procedures vary, but include selection interviews, assessment centres and psychometric testing, designed to identify the best capability for the role.

Our focus on individual career plans is crucial to talent retention. Development planning around the Group is tailored to specific employees and can range from addressing any gaps in technical skills to leadership development.

We place considerable emphasis on creating a coaching culture throughout the organisation, as we believe that training and development should take place as close as possible to the work being done and that coaching is a good way to share knowledge and to encourage our people to develop themselves.

People with high potential for career progression are critical to sustainability.

Succession pools are analysed for quality and quantity and action plans are put in place to address any shortfalls. Talent reviews are held every year in every country, region and at a global level, to assess performance and potential and to develop our people.

Local succession coverage - 1:1:2 @ Business unit level

Transformation of the leadership pipeline 1 - 1:1:2 @ business unit level - Local succession coverage

Local top teams - 70:30 @ business unit level

Local top teams - 70:30 @ business unit level

How are we doing?

GRI performance

LA2 Total number and rate of employee turnover by age group, gender, and region

Data on all employment changes are not collated for the Group. However, the managerial data is as follows:

 New
hires
Total
turnover
Regrettable
turnover
Africa Middle East (AME)20524923
Asia-Pacific (ASPAC)29026928
America-Pacific (AMPAC)52446
Europe38654854
Latin America and Caribbean (LACAR)17021029
Total1,1031,320140

LA7 Rates of injury, occupational diseases, lost days, absenteeism and total number of work-related fatalities, by region
 20072006
Lost workday cases through injury to employees, 1 shift or more (LWC)206231
Lost workday case incidence rate (LWCIR) (Number of lost work day cases x 200,000 divided by total hours worked by all employees)0.390.42
Serious injuries to employees3023
Serious injuries to contractors88
Assaults and murders23
Total4034
Accidents involving the fatality of an employee62
Accidents involving the fatality of a contractor23
Total85

Proportionally, 26% of injuries were vehicle related (21% in 2006); entrapment accounted for 24% (19% in 2006); slips and trips, 21% (17% in 2006); and manual handling, 9% (23% in 2006). Causation reports were available for approximately 80% of reported injuries.

Talented people and providing the conditions for a great place to work are, in a sense, ingredients. It is the mixture which can make a real difference to business success.

We continue to place a high value on international career development and we move those with strong senior management potential across borders, although our aim is to ensure that we have sufficient local talent emerging with potential for senior positions.

Our succession planning aims to have succession pools with at least one local successor ready in the short term for each senior position at business unit level and two local successors ready in the longer term. Hence our targets are expressed as 1:1:2.

The chart above illustrates the early progress that we have made in the past two years against our objectives and we still have room for improvement.

For example, the chart above shows for 2007 56 per cent short-term succession for our Africa and Middle East region and 74 per cent long-term. This means that for all senior positions in that region, the short-term target of having at least one local successor has been achieved for 56 per cent of the roles and the long-term target of having two local successors has been achieved for 74 per cent of the roles.

We recognise the desirability of having appropriate local representation on business unit management teams and aim to have a 70/30 ratio of local to expatriate members on those teams. The current position is shown in the chart above.

© 2008 British American Tobacco