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NYSE: RAI $62.64   +0.36 (0.575%)
Employee Responsibility

Talent Pipeline

Acquiring, developing and retaining top, diverse talent is critical to the long-term sustainability of RAI and its subsidiaries. Our employees have the opportunity to excel in their careers and lead the transformation of the tobacco industry.

Workforce Diversity

Reynolds American and its subsidiaries have long recognized, valued and enjoyed the many benefits that diversity brings to both our employees and our businesses. The Transforming Tobacco vision is shaped by the diversity of backgrounds, thoughts and experiences of our employee population. Our commitment to diversity is a strong element of our core beliefs. At the RAI companies, diversity is:

  • Recognizing and respecting the differences in our workforce;
  • Appreciating and valuing the differences in our customers, consumers and communities;
  • Leveraging the strengths in all employees to drive business results;
  • Empowering employees to challenge conventional thinking; and
  • Creating competitive ideas and innovation.

Reynolds American and its subsidiaries have a diverse workforce of approximately 5,600 employees in the U.S. In aggregate, RAI’s subsidiaries’ workforce was 29 percent female and 26 percent minority in 2015. Within the ranks of management, 31 percent were female and 17 percent were minority. Our executive leadership team is 50 percent female.


GENDER DIVERSITY

29.50%
28.70%
28.40%
28.80%
29.10%
2011 2012 2013 2014 2015
Percent Female


ETHNIC DIVERSITY

23.50%
23.10%
23.90%
25.50%
26.20%
2011 2012 2013 2014 2015
Percent Minority


RAI and its subsidiaries support freedom of association and respect employees’ right to choose whether or not join a trade union. No employees of RAI or its operating companies are unionized.

Talent Acquisition

While people are drawn to Reynolds American Inc. and its subsidiaries because of the iconic brands and revolutionary products, they stay for the visionary, principled and passionate people they get to work with every day. We work hard to ensure new hires are equipped with the right tools to succeed in their work and career. With the acquisition of Lorillard, we are especially proud of our efforts to help new hires quickly acclimate to, and feel a part of, our companies. To gather candid feedback about what makes our companies great and how they can be improved, the executive vice president and chief human resources officer of Reynolds American Inc. and RAI Services Company meets monthly with new hires.

In 2015, RAI and its subsidiaries doubled the size of the intern program to 30 interns. We successfully expanded the program to trade marketing, ultimately hiring 15 of the intern class full-time or for a second internship. In addition, we attended more than 60 career fairs, information sessions and employer panels around the country during the 2014–2015 campus recruiting season.

Accelerating Talent Development

RAI and its subsidiaries encourage employees to take ownership of their job performance and career planning from day one. Our leadership team sets goals to execute against our Transforming Tobacco vision, which are supported by individual goals for each employee. This gives employees a sense of purpose and commitment to RAI’s Transforming Tobacco vision, and fosters personal and professional growth, as well as business success. This empowerment contributes to the recruitment and retention of high-performing talent.

To assist employees in meeting their short- and long-term personal growth goals, RAI and its subsidiaries offer many training programs throughout the year. We identify behaviors that exemplify success at each level of the organization, helping employees navigate their personal development within the company. In 2015, we developed new resources to further contribute to employees’ individual development, including coaching effectiveness training.

Our robust curriculum includes training on both interpersonal and technical skills to help our employees develop their careers. Training options include “Discovering Emotional Intelligence,” “Presenting for Influence,” “Innovation in Action” and “Running an Effective Meeting.”

In 2015, RAI employees received 231,756 hours of training, for an average of 42 hours per full-time employee and an investment of more than $2,498 per employee. Training hours decreased from 73 hours per employee in 2014 due to a smaller number of new hires during the year.

The individual development plan (IDP) process puts employees in charge of driving their career progression through a thoughtful planning approach. During the IDP process, employees share their career goals with their manager and review feedback from the succession planning process. Together, they create an actionable IDP to improve personal performance and identify ways to achieve their career goals. Progress toward the IDP is reviewed during annual performance reviews, where each employee receives an assessment of their readiness to take on additional responsibilities. RAI’s online talent-management system provides a comprehensive tool for IDP planning, which integrates goal setting, performance evaluations, succession planning and a variety of developmental resources.

Managers hold calibration meetings to discuss performance reviews of all employees. These discussions ensure that employees at each job level are held to consistent standards. Our succession-planning process builds a pipeline of talent that not only benefits employees by providing equal opportunity for advancement, but also maintains a sustainable, high-performing and innovative talent base for our companies.

Compensation programs are designed to reward employees’ high performance. We have a pay-for-performance rewards system in which every full-time employee participates in a single bonus plan aligned with overall company goals. Compensation is linked to the annual performance review process. For salaried employees below senior vice president level, bonus payouts are determined through a multiplier of personal and company performance. For production associates (hourly employees), bonuses are determined by a personal performance multiplier. Through this process, employee performance is rewarded and employees feel tied to the success of their companies.

A key indicator of our success in developing talent is the ability to fill vacated roles with qualified employees. In 2015, 76 percent of open positions at RAI and its subsidiaries were filled by internal candidates.

Employee Engagement

Together, our employees are transforming the tobacco industry. Excitement about RAI’s transformation vision and the focus on overall well-being has contributed to employee satisfaction, pride, advocacy and loyalty.

To maintain top-tier talent and a high-performing culture, it is critical for RAI and its subsidiaries to keep our employees engaged. In 2009, RAI began conducting quantitative employee surveys through IBM-Kenexa, in which employees provide feedback on multiple aspects of their employee experience. Over the past several years, RAI’s employee engagement score has ranked among the top 25 percent of companies, based on IBM-Kenexa engagement norms, and in the February 2015 survey, the engagement level rose to the top 10th percentile of companies.

 


EMPLOYEE ENGAGEMENT

78%
79%
86%
2011 2013 2015
90th Percentile      
75th Percentile      
50th Percentile