How We Manage Our People

CNH Industrial considers its people an essential asset. Operating in dynamic and highly competitive industries, success is achieved first and foremost through the talent and passion of skilled individuals. Indeed, the Company strongly believes that business growth is made possible by personal growth, and invests the fruit of its business growth into the growth of its people in a kind of virtuous circle.

The materiality analysis evidenced the significance of aspects relating to Human Resources, such as respect for human and labor rights, the promotion of diversity and equal opportunities, the management and development of expertise, the building of a common internal culture, the promotion and protection of occupational health and safety, and the balance between professional and private life.

CNH Industrial is committed to ensuring respect for fundamental human and labor rights wherever it has a presence. Indeed, the Company is aware of the role it must play as a large global enterprise in contributing to the economic growth and social development of the countries in which it operates (see also page 59). CNH Industrial strives to build a corporate culture whereby the Company selects, assigns, evaluates, and cultivates talent according to well-founded criteria and principles, while employees can present diverse opinions freely and communicate with one another openly.

The safeguarding of diversity and the respect for equal opportunities are important aspects for a multicultural enterprise operating globally. In addition to preventing discrimination and ensuring the inalienable rights of every person, the Company manages these aspects proactively through inclusion and by enhancing diversity, thus boosting its competitiveness and ability to attract personnel. From the stakeholders’ viewpoint, it is important that the people who form part of the Company see their differences respected and valued. Indeed, it emerged from the stakeholder engagement in 2014 that leveraging diversity helps a company strengthen its reputation and increase talent attraction. It is also important for investors, who increasingly consider these aspects as reputational risks for companies, as well as development opportunities, owing to the stimulating environment that emerges where different genders, races, ages, religious beliefs, and any other such factors or attributes are adequately respected and represented.

Managing and developing expertise is vital for the Company to select, develop, motivate, and retain the best talent. It is important for people to have clearly defined goals in order to make personal career choices, and to have adequate support in terms of training specific to their goals. This is why CNH Industrial adopted the Performance and Leadership Management process. Stakeholder engagement conducted during the year underlined the differences in perception on this issue across the different Regions. In NAFTA, specifically, stakeholders showed that a performance and leadership management tool is important both to support talented people within the Company and to attract highly skilled individuals. Indeed, they believe that personnel evaluation through competition and comparison with peers is a good method to improve skills and strengthen commitment.

The Company aims to help people adapt in real time to change in an increasingly complex world. Shared internal culture development is thus an essential means for the Company to divulge its strategies in a timely manner and engage its personnel, across the globe, in achieving common targets. As evidenced by the stakeholder engagement results, one of the challenges that large multinationals will have to face over the coming years is linked to globalization and the resulting increased importance of cross-cultural communication and organizational policies and procedures. The ability to manage a wide range of talents in an international context is thus seen as a challenge for the success of a company.

Occupational health and safety management is one of the most important aspects to emerge from the materiality analysis. CNH Industrial recognizes the inalienable right of every employee to a safe and healthy work environment. It is also aware that investing in safety is crucial to prevent risk of injuries, accidents at work, and disruptions to production. This also contributes to boosting the Company’s competitiveness, its public profile, and staff motivation. The stakeholder engagement results showed that health and safety management is recognized as a prerequisite for a large enterprise like CNH Industrial: an essential requirement that a company cannot afford to overlook, although interpretations may differ across the different Regions. Specifically, in NAFTA, stakeholders perceive that health and safety management is an important aspect to avoid reputational damage. In LATAM and APAC, on the other hand, this aspect is linked to the Company’s efforts in guaranteeing good working conditions, reducing the risk of occupational accidents and diseases, which are widespread both in Brazil and Asia.

Wellbeing and work-life balance are considered material aspects as they are essential to ensure that employees are effective, productive, and satisfied in all dimensions of their lives. Improving the balance between work and private life while continuing to deliver excellent performance is a challenge that the Company and its CNH Industrial’s commitment to all of these material aspects is stated in the Code of Conduct1, in its Policies (such as the Health and Safety Policy and Human Rights Policy) - which are an integral part of the Code itself - and in the Human Capital Management Guidelines. The Code of Conduct and Policies were approved by the Board of Directors, distributed to all employees, and made available on the Corporate website and Intranet portal.

From an operational point of view, the Chief Human Resources Officer (CHRO), who is also a member of the Group Executive Council (GEC), is responsible for the management of human capital.

The process ensures control over all material aspects identified and is managed by global representatives from Leadership Development and Internal Communications, and by the Heads of Human Resources of each Region.

The latter are responsible for the management at regional level of diversity and equal opportunity aspects and for work-life balance initiatives. Health and safety protection in the workplace, on the other hand, in every area of activity and in every country, is promoted by a dedicated organizational structure (Environmental Health and Safety - EHS) identified in each Region within the scope of manufacturing.

The objectives and actions that fulfill the Company’s commitments to continuous improvement provide a clear measure of the effectiveness of human capital management. Targets are set annually on a voluntary basis and included in the Sustainability Plan (see also pages 29-33); their progress is regularly monitored to enable corrective actions, should they become necessary. Through the Sustainability Plan, CNH Industrial not only makes public the targets to be achieved each year, it also indicates the instruments used and results obtained, in the name of transparency regarding all stakeholders. In the following pages, further details are given of the initiatives and projects developed to promote the management of our people, as well as the resources allocated and the mechanisms to evaluate their effectiveness.

(1) The CNH Industrial Code of Conduct complies with national laws, the UN Universal Declaration of Human Rights, and the fundamental conventions of the International Labour Organization (ILO).