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Employee Responsibility

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Management Approach

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Total workforce by employment type, employment contract and region, broken down by gender

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Report the percentage of total employees covered by collective bargaining agreements

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Average training hours

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Programs for skills management and lifelong learning

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Percentage of employees receiving regular performance and development reviews

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Composition of governance bodies and employees

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Talent Pipeline

Attracting, engaging, and inspiring trailblazing talent is critical to the long-term sustainability of RAI and its subsidiaries. We are passionate about strengthening our talent pipeline with diverse and highly skilled employees, and continuously look at how we can take our talent practices to the next level, ensuring that we have the right people, programs and work environment.

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 5,500 employees in the U.S. In aggregate, RAI’s subsidiaries’ workforce was 30 percent female and 27 percent minority in 2016. Within the ranks of management, 33 percent were female and 17 percent were minority. At the end of 2016, the executive leadership team was 40 percent female.


GENDER DIVERSITY

28.70%
28.40%
28.80%
29.10%
29.50%
2012 2013 2014 2015 2016
Percent Female


ETHNIC DIVERSITY

23.10%
23.90%
25.50%
26.20%
26.80%
2012 2013 2014 2015 2016
Percent Minority


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

Talent Acquisition

While people are drawn to Reynolds American’s subsidiaries because of their iconic brands and innovative products, they stay for the visionary, principled and passionate people they get to work with every day. We work hard to ensure a consistent experience from candidate to employee, and that new hires are equipped with the right tools to succeed in their work and career. 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 with new hires on a regular basis.

In 2016, RAI and its subsidiaries again increased the size of the intern program to 39 interns, ultimately offering full-time positions to 75% of the interns. This year, the RAI Intern Program was listed on Vault’s 50 Best Internships as the highest rated in the Retail and Consumer Products category. In addition, we attended more than 70 career fairs, information sessions and employer panels around the country during the 2015–2016 campus recruiting season. Read more about joining our companies on the RAI careers page.

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 companies’ vision, which are supported by individual goals for each employee. This gives employees a sense of purpose and commitment to the vision, fosters personal and professional growth, and helps overall business success. This empowerment contributes to the recruitment and retention of high-performing talent.

Because we want employees to build a remarkable career where they feel challenged and engaged, our organization encourages employees to grow in new directions, offering multiple paths for professional development to nurture their unique ideas, diverse talents and career interests. We identify behaviors that exemplify success at each level of the organization, helping employees navigate their personal development within the company. In 2016, we furthered our employee individual development programs, such as the coaching effectiveness training, in which more than 2,900 employees took part. Through coaching effectiveness, our trailblazers are provided tools and practices to make everyday performance and development conversations more effective.

Our robust curriculum includes training on both business competencies and technical skills to help our employees develop their careers. In 2017, we plan to expand our e-learning offerings to provide employees multiple ways to nurture their diverse talents and career interests so they can achieve their current and future development goals. In 2016, The Hackett Group recognized us as a Leader in Talent Management Maturity, in large part due to our robust learning and development programs, resources and tools.

In 2016, RAI employees received a combined 148,000 hours of training, for an average of 42 hours per full-time employment. Including tuition reimbursement, this results in an investment of about $921 per employee. While hours of training remained constant compared to 2015, total investment per employee went down due to an increased head count and the conversion of numerous instructor-led courses to e-learning.

The individual development plan (IDP) process puts employees in charge of 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 equitable ratings and employee ownership of rewards for incremental compensation for above-the-bar performance. 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 and encourage employees to think and act boldly. We have a pay for performance rewards system in which all full-time employees (VP level and below, salaried and hourly) participate in the annual incentive plan that rewards based on individual and company performance. For salaried employees, bonus pay is linked directly to performance ratings with pay multipliers for above-the-bar achievements. Senior management (internal directors and above) receive stock that vests over three years — rewarding the leaders in our organization to deliver sustainable, future-focused growth. We believe our high-performing culture is a tangible outcome of all things we have put in place with the focus on employees as one of our strongest assets.

A key indicator of our success in developing talent is the ability to fill vacated roles with qualified employees. In 2016, 87 percent of open positions at RAI and its subsidiaries were filled by internal candidates.

Employee Engagement

Our companies’ employees are essential to achieving our transformation vision; they are the trailblazers who drive innovation and ignite the breakthroughs that are changing an entire industry. Mutual passion for transforming our industry along with a 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’s important that our employees have the opportunity to build a career where they feel challenged, engaged and empowered professionally, and engage in purposeful work where they can make a real difference.

In 2013, we established a five-year vision to become an “Employer of Choice,” enabling us to attract and retain a high-performing, sustainable and innovative talent base. We sought to increase employee engagement from the top 25th percentile to the top 10th percentile of companies (measured by our enterprise-wide engagement survey), a goal that we achieved three years ahead of schedule.