Our talent strategy focuses on the total well-being of our employees and recognizes that a culture of well-being is a tapestry of physical, emotional, social and financial elements that help our employees achieve their personal, professional and financial goals:
Career Well-Being: Mastery, Purpose & Autonomy
The RAI companies are rich in opportunities, commitment and resources to help employees build the remarkable career they envision. Whatever their ambitions may be, employees can make them happen by taking an active role in charting their growth. We maintain a culture where experienced leaders and mentors are both interested and invested in the success of every employee. Managers provide the guidance that employees need to grow based on their performance, unique talents and professional goals. Employees continually receive feedback and recommendations for development that will help move their careers forward. We also invest in life-long learning opportunities by encouraging employees to attend seminars, conferences or eLearning, complete job-related certifications and receive advanced degrees.
We categorize the behaviors, skills and abilities critical to achieving our business goals into six Leadership Dimensions. In 2016, we introduced Talent Management 2.0 to ensure these Leadership Dimensions provide employees with the knowledge to perform to the best of their capabilities. Based upon observable behaviors needed to demonstrate leadership at each level of the company, this new program provides a roadmap for our trailblazers to develop at their own pace. For each level, online videos with resources for development enable employees to take charge of their career.
Whether it’s development in role, cross-functional rotations to broaden skill sets, or development in preparation for a promotion, RAI and its subsidiaries are rich in opportunities and resources to help our trailblazers build remarkable careers. To promote career well-being, we offer:
- Collaborative goal-setting and performance-management processes;
- World-class professional and interpersonal-skill development programs;
- Experienced mentors invested in each employee’s success; and
- Developmental cross-functional rotation experiences.
Financial Well-Being: Effectively
Managing Their Financial Life
The financial health of employees is vital to their overall well-being. RAI and its subsidiaries go beyond offering competitive compensation and benefits by also providing financial education programs to help employees better leverage their benefits, achieve their personal goals and enhance their overall financial well-being. Our online total rewards portal allows employees to see the full range and value of the rewards that are offered by the company, including:
- Pay for Performance: Throughout our operating companies, we strive for market leadership. We believe that to achieve market leadership, employees must receive fair and competitive pay that is linked to their performance. Our compensation packages are based on individual performance, as well as the performance of our companies, rewarding their contributions to Transforming Tobacco. All levels below Senior Vice President take part in the Annual Incentive Awards Program. In addition to our annual incentive bonus, in 2016, we introduced the one-time Game Changer Bonus associated with the Lorillard acquisition.
- Retirement and Savings: We provide a number of plans for eligible employees that are designed to support the lifestyle they want during their career and in retirement. Employees can take advantage of the company-matched award-winning 401(k) plan, confidential personal financial counseling services, and many other tools and resources that support their personal financial goals. To ensure that employees take advantage of benefits offered them, we automatically enroll new employees in our 401(k) program and increase contributions by 1 percent annually until they reach the maximum contribution. In addition, we provide training on personal budgeting, debt management and cash flow, along with training on how to best leverage the extensive company benefits programs.
- Additional Financial Benefits: We offer a variety of additional programs to support employees, including tuition reimbursement and purchase of RAI stock at a reduced rate.
Physical & Emotional Well-Being: Good Health
& Enough Energy to Get Things Done
We are focused on a holistic view of employee physical and emotional well-being, which goes beyond comprehensive benefits to include programs and tools that help them thrive at work and in their personal lives.
In 2016, we introduced a new medical plan option with lower premiums than our standard plan. The new plan also provides employees with a health savings account (HSA) to use for medical expenses. Employees were provided a $600 start-up contribution to the HSA if they participated in the associated health plan, and we launched a series of tools to enable employees to evaluate and select the medical plan that works for them.
We also launched Virgin Pulse — a healthy lifestyle incentive program — throughout RAI and its subsidiaries. As part of the program launch, every employee received a Virgin Pulse Max™ activity tracker. Employees can also use a variety of other wearables to track healthy behaviors such as walking, drinking water and getting enough sleep. Employees can earn rewards, including gift cards and merchandise, for participating. The program includes:
- Activity tracking with choice of multiple devices and apps;
- Encouragement, feedback and motivation;
- Personalized content on a variety of well-being topics;
- Social feeds and community features;
- Stress, nutrition and sleep tracking; and
- Team challenges and contests.
In addition to the new Virgin Pulse program, we promote physical well-being through:
- High-quality medical, dental and vision care at affordable rates;
- On-site fitness centers at no cost;
- On-site health centers and telemedicine services; and
- Convenient on-site cafeterias complete with healthy food options.
Promoting well-being also means fostering a culture where employees can manage their work-life balance by giving them more control over their schedules. Full-time office employees may shift their work hours or location in keeping with our flexible and remote working policy.
We have invested in a major workplace environment upgrade that includes collaboration and “gathering” places to improve our work environment and promote collaboration. In one location, we introduced a new work concept where employees — at all levels — are working together in a modern workspace that replaces the traditional “office cube” with collaboration tables.
In November 2016, the RAI tobacco-use policy went into full effect. The policy, which was first introduced in 2014, restricts smoking to designated areas at RAI’s headquarters and subsidiary facilities. As the policy does not ban all tobacco products, it is designed to be inclusive, rather than exclusive. While employees may not consume traditional combustible cigarettes other than in designated smoking areas, employees may continue to use tobacco products such as snus, moist snuff, vapor products or heat-not-burn cigarettes in communal areas. Designated smoking areas, constructed in tandem with the headquarters renovation, provide spaces where employees can collaborate in a creative, enriching and innovative environment while enjoying our companies’ diverse products. We believe this approach respects personal choice and enables our employees to feel comfortable in the workplace.
Our employees say they are drawn to working for us because of our operating companies’ brands, but they stay for the visionary, principled and passionate people they get to work with every day. Creating strong relationships forms a platform for the continued growth of our employees and our businesses. We encourage employees to develop internal connections, as well as foster relationships with the communities where they live and work.
The transformative effect that recognition has on employee engagement and retention is powerful. We have three distinct programs: peer recognition, years of service and Leadership Team awards. Our peer recognition program is our way of acknowledging that our employees’ hard work and dedication directly contribute to the organization’s success. It’s also a great way to empower employees to personally recognize each other for lending a helping hand, an impactful thought or idea, demonstration of great teamwork or for simply going the extra mile. We also celebrate and recognize career milestones as a way to acknowledge an employee’s collective “body of work” over time. The highest level of recognition is the Leadership Team Awards where our Executive Leadership honors employees who make exceptional contributions to achieve extraordinary business results.
Our employees demonstrate their personal commitment to our communities through donation of their time, talent and resources. They are passionate about employee-directed giving — organized at both the enterprise and local levels. Our primary foundation matches employee gifts to nonprofit organizations and institutions of higher learning up to $7,000 per employee per year. Our companies, along with their foundations and employees, donated approximately $13 million to a wide range of nonprofit organizations in 2016. We are especially proud that this past year saw the highest-ever participation rates in our matching grants program and our employees continued to give back to the community by volunteering with numerous organizations in our communities, including the United Way’s Days of Caring. Employees also participate in the United Way’s Young Leaders United program and Women’s Leadership Council. Hundreds of employees serve in leadership roles in organizations in our communities as well. Read more in community engagement.