It

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A New Organization A New Focus Valuing Work
at Viterra
Diane McLean, CCP, Manager Compensation,
ViterraDiane Panting, CCP, CHRP, Vice President,
Aon Hewitt
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Learning Objectives

• Review innovative approach to compensation
  delivery
• Discuss Viterra's specific approach to valuing
  work at the new organization
• Understand links to HR programs

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Presentation Topics

• About Viterra
• Valuing Work
• Viterras Journey

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About Viterra

• The worlds largest exporter of canola
• Strategically located in the worlds top
  exporting countries
• 9 Billion combined revenue1
• 640 Million combined EBITDA1
• 4 Billion Market Cap2
• Over 4600 employees

Moving essential ingredients from field to table
1 Unaudited Pro forma Statements for the 12
months ended October 08 (results not
necessarily indicative of future performance) 2
Based on October 8 share price
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Our History
Canada
Australia
Early mid 1990s
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2
3
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Today
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Fully Integrated and Diversified Agri-Business
Company
Grain Handling, Marketing, Logistics
Food/Feed Processing
WORLD
Agri-Products
FARMER
Customers throughout the entire value chain
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Strategically Located in the Worlds Leading
Grain Exporting Countries
Canada
Kiev
United States
Geneva
Beijing
Cairo
Japan
India
Singapore
Southern Australia
New Zealand

• Shipments of up to 24mmt of grains/oilseeds
  annually
• Exports to more than 50 countries

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How Organizations Are Changing Valuing Work

• Increased use of technology and knowledge workers
• Globalization and competitive pressures
• Flattening, right sizing and reorganizations

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How Work Is Changing

• Work less routine, demanding innovation
• Self-managed employees
• Demands for continuous learning
• More external awareness and knowledge
• Greater focus on customers
• More business acumen required
• Greater demands, broader accountability

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How Organizing and Describing Work Has Changed
From
To

• Narrowly defined duties
• Minute differences
• Functional hierarchy
• Vertical Promotion

• Broad responsibilities
• Meaningful, substantive differences
• Flatter/matrix organization
• Lateral development

Role/Job Family
Job
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What Has Been Tried

• Competencies/contribution
• Whole job ranking
• Market pricing
• Default with no system, negotiation of pay by
  incumbent/job, at manager's discretion

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Traditional Job Evaluation Job Evaluation
Challenges

• Lack of flexibility in deployment of resources
• Subjectivity creates conflict
• Inefficient
• Bureaucratic
• Internal inequities
• Inconsistencies due to no shared understanding of
  values
• Labour intensive both initial and ongoing
• Centralized control

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What Job Families Are

• Broad/more generic descriptions of work performed
• Reflective of increasing levels of accountability
  defined in relation to common elements
• Contemporary approach to documenting work and
  valuing work by grouping jobs into broad roles or
  job families
• Do not describe tasks or activities
• Job family levels are evaluated not individual
  jobs

Level 5
Level 4
Level 3
Level 2
Level 1
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What Job Families Are
Job
Job Family

• Provide client support to resolve issues
• Analyze data and assess impacts
• Develop project plans
• Manage project activities
• Provide guidance to junior staff

Systems Analyst
Financial Advisor
Environmental Specialist
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Valuing Work Framework The Picture Comes
Together
Sample Ranking of Job Families/Grades Based on
Internal Relativities
GradePointsJob Rate
Grade 1 Grade 2 Grade 3 Grade 4 Grade5 Grade
6 Grade 7 Grade 8 100-199 200-299 300-399 400-499
500-599 600-699 700-799 800-899 30K 35K 40K 45K 5
5K 65K 75K 90K
Administrative Services Professional Business
Services Sales Marketing Network
Operations Network Engineering
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Valuing Work Considerations

• Judgments based on commonly shared criteria
• Appropriate autonomy flexibility for management
• Facilitate openness and understanding by
  employees
• Reduce need for ongoing job description
  preparation and evaluation
• Strengthen links to the competency model,
  performance management, career development and
  succession planning
• Free HR resources for more value added activities
  

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Initiative Success Factors

• Ownership of the executive group
• Reinforcing shared understanding and buy-in
  around
• Compensation philosophy
• Accountability levels and related ranking
• Bringing together disparate parts of the
  organization
• Opportunity for high involvement of employee
  teams
• Substantive involvement/buy-in of managers
• Communication throughout the project
• Training and education of managers and employees

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How About in Your Universe?

• What challenges is your organization
  experiencing re valuing work from the manager
  perspective and from the employee perspective?

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Viterras Journey
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Project Objectives

• New organization new compensation structure
• Sustainable model
• Framework for all employees union and non union
  employees North America and beyond
• Common terms and conditions for all employees
• Internal and external equity
• Foundation for other HR Programs

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Job Family Project Team - 2008

• Viterra
• Project Sponsor
• Compensation team
• HR Generalists
• Senior Managers in key business areas
• Aon team
• Compensation/Rewards
• Communication
• Technology

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What Were The Changes

• Development of Compensation Philosophy and
  Guiding Principles
• Job Families for all jobs below Vice President
  level
• Evaluation of job family levels for each job
  family
• Slotting of all jobs into job family levels
• New salary structure
• Introduction of variable pay for all employees
• Determination of costing to ensure all employees
  were paid in the range

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Viterra Compensation Philosophy

• Viterra is committed to providing a competitive
  total compensation package that recognizes and
  rewards employee performance and enables the
  organization to retain and attract talented
  employees
• Provide employees with an attractive, market
  competitive pay opportunity that includes
  variable based pay
• Be competitive from a corporate and regional
  perspective
• Foster a pay for performance culture
• Utilize a universal job evaluation/classification
  plan to allow for mobility of talent
• Ensure pay practices reflect regional market and
  any legislative requirements

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Viterra Guiding Principles

• Base Salary Guiding Principles
• Competitive salary ranges to attract and retain
  employees
• Competitive salary increase budgets to reward and
  motivate employees
• Reflects performance and contributions of
  employees, motivate and reward performance and
  move salaries through the range
• Variable Pay Guiding Principles
• Focus management and employees efforts on the
  business objectives established by the Company.
• Designed to provide a competitive total cash
  compensation package
• Reward employees for significant achievements

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Approach

• Using a partnership team from Viterra and Aon,
  determine how many job families and how many
  levels within each family
• Draft descriptions of progression
• Work with senior leaders to develop and finalize
• Develop Job Evaluation tool and evaluate each job
  family
• Work with senior leaders to slot jobs into family
  levels
• Gather market data
• With Aons Ubertool, evaluated levels and
  developed new salary structure assessed impact

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Job Family Development
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Job Family Development
Number of Job Family Levels
Job Family
Business Support Services
4 Levels
Professional Technical Advisory Services
5 Levels
Core Areas of Business
Facility Operations
3 Levels
4 Levels
Sales Services
7 Levels
Management
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Challenges Solutions

• Challenge 1
• Compensation Programs for both non union and
  union employees which supports Viterra's
  compensation philosophy and guiding principles
• Solution
• Competitive ranges variable pay pay for
  performance
• Challenge 2
• How to educate and communicate the new program
• Solution
• Assessed change management implications
  Regional meetings Managers Guide Managers
  Online FAQ site Job Family Brochure

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Challenges and Solutions

• Challenge 3
• Compensation Program for all business units
  operations vs. enabling functions
• Solution
• Work closely with business leaders to ensure
  all core functions are described
  continually review to maintain
• Challenge 4
• Global differences in pay practices and
  policies
• Solution
• Global Total Rewards area reviews global job
  leveling develop different
  compensation structures to reflect regional pay

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Advantages

• Provides consistency in administration
• - Accommodates differences in scope,
  complexity and accountability
• - Streamlines job evaluation process
• - Still have job descriptions which are
  slotted into job families, not evaluated
  individually with job evaluation tool
• Provides the framework for
• - Performance Management
• - Variable Pay
• - Recruitment and Selection
• - Career Development and Career Pathing

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Lessons Learned

• Ensure as much involvement from the business as
  possible
• Develop a project plan that encompasses all
  aspects
• Ensure sufficient time is taken with business to
  create buy-in and that the right amount of
  education is provided
• Communicate, communicate

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Progress since 2008

• Phased in
• Feed Products Canada and US
• Fertilizer business
• Food Processing - Oats
• Acquisitions
• Canola Crushing plant
• Australia Barley Board (ABB)
• Dakota Growers - pasta plants
• Other smaller acquisitions

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Does Approach Work for Viterra?

• Changes made are consistent with compensation
  philosophy and commitment to employees
• Values work performed and provides progression of
  responsibilities
• Pay equity compliance
• Starting to align other HR programs
• Communication challenges exist with diverse and
  global company but managed
• With new lines of business being acquired have to
  review tools and determine whether refinements
  need to be made

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Comments/Feedback/Questions?
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Thank You!
Diane McLean, Viterra(204) 944-5520diane.mclean_at_
viterra.ca Diane Panting, Aon Hewitt (204)
954-5512diane.panting_at_aonhewitt.com
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Live Long and Prosper!