- Management Board Report
- Human resources
While 2015 laid the foundation to reshape Human Resources to deliver on company and organisational objectives, 2016 proved to be the year in which our HR strategy and objectives around People & Culture, World Class Leadership, and the Employer Brand, started to pay off. Our ambition continues to be the employer of choice in technology and the strong efforts we made in 2016 are getting us closer and closer to this goal.
The key to our future success as a company is reliant on the strength of our people and culture. We want to attract the best people, invest in their development and give them the opportunity to grow and achieve more every day. Entrepreneurialism is valued in our company and we believe that organisational flexibility will allow for people to make their own choices and thrive. TomTom attracts agile and adaptable people, capable of effectively dealing with and responding rapidly to changing circumstances. Having the best people enables us to deliver the greatest and most innovative products and services to our customers.
In 2016, we sought out ways to give employees a platform and support activities across the business. At the start of the year, we launched a new intranet platform that included Yammer, an employee social sharing network, as well as a daily news feed to share employee stories. The intention of the new platform was to build bridges between global offices and share stories, ideas and projects. Within the first week of launch 100% of our workforce joined the platform. It is the primary content hub for all things happening within TomTom.
Besides improving all internal platforms and communication channels, we focused on supporting employee activities, boosting awareness across all TomTom global sites, and bringing a higher level of communication efforts to everything we do internally. These activities include:
Live internal broadcasts of Hackathons, Innovation Days and other internal events;
- Awareness campaigns to support internal departments and activities;
- The launch of a narrowcast system, SCALA, to showcase all business content and employee generated content on designated media screens in offices around the globe.
We continue to find new and creative ways to celebrate people and culture within TomTom. 2016 saw a big shift in boosting and improving the level of our employee communication and activities.
TomTom is committed to the advancement and career development of our employees. This is exemplified by our policy to first recruit from within the company, which supports our 'Achieve More' proposition. In support of this policy, we are strongly promoting internal hires for leadership and management roles before recruiting externally. We continue to develop and improve our career track programmes in Finance, Customer Care, Map Operations and Software Development. The World Class Software Development Programme has continued to deliver value to the company in its fourth year of existence. These results have included further refining the way TomTom scales its Agile development, sharing best practices across product units, organising events such as Agile Summits and external speaker series. Our World Class Product Management Programme continued to make progress with strategies and roadmaps continually improving. Through our external engagements TomTom is increasingly visible as a leader in Agile organisations and this visibility has contributed to our recruitment and talent development. Finally, our product units have further refined and documented the different software development frameworks in place and made further improvements in the use of software development key performance indicators.
In 2016, TomTom's graduate programme continued to attract top talent. We attracted over 1,600 graduates from around the world (up by 150% from 2015). Graduates came from top tier universities: MIT, ESSEC, HEC, LSE, and Imperial College London. Due to the very rigorous selection process we have in place for graduates, we only hired six in 2016. It is an elite programme, and we only make offers to the very highest calibre of candidates. For 2016, we hired Product Managers and Marketing Managers, Mobile Developers and Test Engineers. The graduate programme continues to recruit the strongest performing employees who deliver significant results for the business. Our ambition is to continuously raise the level of this programme and to create a competitive engineering track that is a highly sought after placement for those who qualify.
Promoting a Learning Culture
Enabling our people's development and growth is key to delivering our 'Achieve More' promise to employees. Our learning and development platform provides employees with the opportunity to enhance their skills through various online and offline events, such as webinars, classroom courses and external presentations. The platform is tailored with programmes customised for individual employees, job segments, and for leaders. In 2016, we launched Lynda, the online platform for learning. Lynda proved to be a success with over 1,624 course hours completed and 100% participation of registered users.
We started to implement Workday in 2016 and the program will go live in 2017. This platform will improve all levels of employee and manager human resource management, and will give us a competitive advantage around candidate experience and talent management.
Our remuneration strategy is key for attracting and retaining talent. We aim to provide fair, competitive and responsible compensation for each of our employees. However, we recognise that the workforce is changing and markets are becoming highly competitive with respect to benefits, compensation and perks. A one-size-fits-all policy does not make sense for the workforce of the future. Given the changes in the market, especially in the technology sector, we continue to focus on the individual needs of our employees so that we can create customised, personalised programmes for different segments of our employee population. This will lead to a unique attraction and retention approach and will enable us to compete effectively against other benefit and perk-driven employers. In terms of employee benefits, TomTom is committed to offering all employees market competitive benefits such as pension and health care according to each country's unique context. Next to these important benefits, we also offer a product discount programme to encourage ownership of TomTom products. Long-term incentives for senior management and key individuals are part of our remuneration policy. These incentives are intended to attract and retain talent to the company. Our long-term incentive programme includes phantom stock and stock options which are offered to key talents. All of our long-term incentive programmes are conditional to continued employment of the employee only and have a vesting period of three years. Our performance-related bonus plan is in line with TomTom's vision, which is that success for our business should also mean success for the individual employee. The bonuses paid as a percentage of base salary vary according to the job grade and reflect the level of influence that each role has in the execution of TomTom's strategy.
World class leadership
We want to safeguard what makes us a strong company and therefore need leaders who will cascade that energy and ambition down to the employees to drive our 'Achieve More' proposition and deliver on our company vision for the future.
Dare to Lead
At TomTom we employ the best people. And the best people need the best leaders. These leaders play a key role in attracting, developing and retaining the right people. In 2016, we created TomTom's leadership model. The model is made up of pre-requisites which are intrinsic to a person, and pillars which can be developed and learned. This was based on internal surveys and interviews, as well as external research, and embodies our core value proposition around leadership.
Prerequisites for leadership at TomTom:
Drive: a continuous hunger for success through tenacity and the ability to endure even the most difficult situations.
- Adaptability: ability to change something or oneself to fit to occurring changes.
- Smart & curious: a persistent appetite to learn and improve yourself and the people around you. A desire to invest time and energy into getting to know more about the people, processes, products, concepts around you. Open to other points of view.
- Integrity: adherence to moral and ethical principles, soundness of moral character, honesty.
5 leadership pillars at the core of the TomTom Leadership model:
Drive high performance: by setting high expectations and guiding towards them.
- Dare to lead: align teams around vision, strategy and purpose.
- Create an autonomous environment: that drives innovation, ownership, and accountability.
- Unleash talent: through a passion to help people achieve more.
- Connect: to drive collaboration throughout the organisation.
Working in partnership with Right Management, experts in the field of leadership assessment and development, we then designed our World Class Leadership assessment programme. The purpose of the programme is to measure the potential that our existing leaders currently have against our leadership model, and to ultimately gain a full overview on where leadership potential is within the organisation. The assessment consists of three online psychometric surveys, an interview with a qualified assessor from Right Management, and a feedback session. All employees with people management responsibilities will go through the assessment during 2017, and will be identified as having high, medium, low or no potential against the model. There is an expectation that leadership teams will follow up on an individual basis with suitable measures, including development programmes for high potential leaders, and removal out of a leadership role for those showing low or no potential. HR will support in those measures.
2016 saw an increase in Employer Brand awareness, including a shorter time to hire, in key markets, as well as increased employee engagement scores in the markets where we focused our efforts. We continue to bring our employees to the forefront of the business and celebrate who we are, our talent, and what we have accomplished at TomTom. We work closely with our talent team on targeted recruitment and retention tactics that will contribute to our goal to be the employer of choice in technology.
To be the employer of choice in technology, TomTom wants the best talent. As the talent market continues to change and accelerate, we are transforming how we attract, develop and retain the right talent for our business – now and for the future. We build relationships. We source actively for all roles. We organise hackathons, use social media, work with our Fellows for thought leadership, and engage with and involve our leadership. At TomTom everyone recruits. 2016 saw a stronger partnership with Employer Brand. As a result, sourcing efforts, increased candidate participation in events, quality of hire and candidate conversion significantly improved.
Market-Leading Employer Brand
2016 saw external recognition as a thought leader in Employer Brand and the Future of Work. This is validated by numerous speaking invitations, roundtable discussions and influencer panels around our HR strategies, our views on the Future of Work in Technology and our positioning of the TomTom Employer Brand. Keynotes include: HR Tech, Workday Rising and the Universum Advisory Board roundtable discussions where we presented to 50 leading European companies in technology, finance, FMCG, education and others.
We continue to make ourselves present on the global stage and lead conversations around the Future of Work. We strive to create awareness around how we work, our unique company culture and the value we contribute to the talent market as a leading technology company.
Employer Brand Effectiveness
In 2016, we developed our first market campaign for one of our key technology hubs. In support of this campaign, we invested in several candidate activities of which the candidate response rate was more than expected. Time to hire significantly decreased and quality of candidates improved as a result. Furthermore, the campaign influenced employee engagement rates in this market.
While 2015 was the year to build foundations, 2016 was the year to create 'effective content' - observing what resonates with our core target audience and adjusting where necessary to deliver results. Our content engagement rates and interactions in 2016 were significantly above market and competition. From 2015 to 2016, we grew on our social channels by 120%, achieving higher than average per week rates in engagement and impressions without paid content. We continue to encourage employee generated content as well as produce employee digital stories such as Behind the Launch, revealing a behind-the-scenes look at our people and culture. In 2016, we produced over 100 communication campaigns to support our markets and to encourage employee engagement internally. In 2017, we plan to increase our digital presence with the addition of new social and technical community platforms and invest more in digital campaigns to drive traffic to our career site and relevant TomTom events.
[PLAATJE=10] Business outlook
In 2017, we will focus on our World Class Leadership programme, attracting and retaining top talent and celebrating our people and culture.
We will continue to make improvements in HR technology.
With the launch of Workday in 2017, we will launch a brand new career site. With this new applicant tracking system we hope to significantly improve the candidate experience as well as have better transparency on candidate analytics allowing us to create effective communication campaigns in 2017.