A Case Study: Building Vale’s Global Onboarding Program

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Global companies face the day-to-day challenge of developing their human capital in a faster, consistent, and better way. One size does not fit all anymore! One global organization, headquartered in Brazil with more than 119,000 people, including employees and contractors, working on 38 countries in five continents is not different. In this case study, you will learn all the steps that made this organization’s global onboarding program a successful case.

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A Case Study: Building Vale’s Global Onboarding Program

  1. 1. TU 116A Case Study: Building Vale’sGlobal Onboarding Program Desie Ribeiro Marta Enes General Manager of Education Director of and People Development Educational Technology desie.ribeiro@vale.com marta.enes@affero.com.br
  2. 2. You will learn • All the steps that made this organization’s global onboarding program a successful case. • How to engage stakeholders worldwide and to build an effective and motivated network of local HR professionals. • How to design a global onboarding program for all levels of the organization taking into consideration cultural and profile differences.
  3. 3. IntroductionThe onboarding process affects all Vale employees, located in over 30 countriesaround the world.Despite the cultural differences inherent in global work operations,Vale employees perform a wide range of activities, supervised by global andregional HR managers. Presented with these characteristics, how can we create a global onboarding program?
  4. 4. Affero Partnership affero.com.br Affero is a leading Corporate Education company in Brazil. It aims to be the key partner of top organizations in the country, supporting the implementation of organizational strategies through a complete understanding of business needs and the effective combination of products, services and people. It has been Vale’s strategic partner for 8 years, developing and implementing several projects involving the training and development of its employees worldwide, Knowledge Management and other initiatives.
  5. 5. IntroductionTo create the new onboarding program, a diagnostic study was performed.The necessary data was collected and analyzed in order to answer to three mainquestions.
  6. 6. Who are we andhow do we act?
  7. 7. Who are we and how do we act?To determine who are the people that make Vale the second largest miningcompany in the world and how these people act, we considered the followingaspects: Employee profiles Current Cultural onboarding aspects scenario
  8. 8. Who are we and how do we act?Vale Market capitalization2 1 # 1 global Iron ore producer US$ bn 2 # 2 world nickel producer BHPB 186 3 # 2 metals and mining company in the world VALE 131 4 # 21 company in the world1 RIO TINTO 107 5 Market cap of US$ 131 bn, on Mar 05, 2012 ANGLO AMERICAN 54 XSTRATA 54 20 hours/day of trading: BM&F Bovespa, NYSE, 6 Euronext and HKEx FREEPORT 39 3rd most traded ADRs in the NYSE in 2011, 7 GOLDCORP 38 ranked by trading volume 8 NORILSK NICKEL 38 Revenues (2011): US$ 60.3 Bn 9 NEWCREST 26 EBITDA (2011): US$ 33.8 Bn 10 Net Earnings (2011): US$ 22.9 Bn 2As of March 05th, 20128 ¹ Ranking of the 500 largest companies in the world by market cap – Financial Times
  9. 9. Who are we and how do we act?ValeAn illustration: Vale in 1997 was a Brazilian exporter company with 10,865employees¹ Belgium USA Japan China Brazil Legend Operations Offices Exploration offices Headquarters9 ¹ Vale’s employees including third parties
  10. 10. Who are we and how do we act?ValeVale in 2012 is a global company with more than 140 thousand employees¹ aroundthe world…10 ¹ Vale’s employees including third parties
  11. 11. Who are we and how do we act? Vale…with a diversified business portfolio Iron Ore Logistics Nickel Fertilizers Operation of ports and ~ 7.4 million tons of phosphate 323 million tons 242 thousand tons 10 thousand Km of railroads rock Coal Copper Steel minority Energy investments 2 operations (joint-ventures) Hydro Plants in Brazil, Canada 4.51 / 2.82 million tons 302 thousand tons and 3 projects and Indonesia 11
  12. 12. Who are we and how do we act?Vale To transform natural resources into prosperity and sustainable Mission development Vision To be the No 1 global natural resources company in creating long-term value, through excellence and passion for people and the planet Passion for people Excellence  Life matters most  Do what is Right Values  Value our People  Improve Together  Prize our Planet  Make it happen12
  13. 13. Our challenge: To be the No 1 global natural resources company in creating long term value, through excellence, with passion for people and the planet.13
  14. 14. Who are we and how do we act?Vale Employees ProfileResearch to gather social, cultural and work characteristics of theemployees, regions and countries that may affect the onboarding designand delivery.14
  15. 15. Who are we and how do we act?Cultural aspectsIn order to construct a global process, the cultural aspects of the initially mappedcountries were analyzed. To organize the actions, it was defined that the countriesshould be divided into four large groups in accordance with their interests.Besides religion and communication the criteria used were those established byGeert Hofstede: Uncertainty avoidance Individualism index Power distance Long term index orientation Masculinity15
  16. 16. Who are we and how do we act?Cultural aspects • Group 1 Group 2 Group 3 Group 4 High-context communication, strong Uncertainty Avoidance Index, large Power Distance Index, Catholic and Collectivity(Except New Caledonia that is individualist).16
  17. 17. Who are we and how do we act?Cultural aspects Group 1 • Group 2 Group 3 Group 4 High-context communication, weak Uncertainty Avoidance Index, Feminine large Power Distance Index, Collectivitiy and Catholic (except Guinea that is Muslim).17
  18. 18. Who are we and how do we act?Cultural aspects Group 1 Group 2 • Group 3 Group 4 High-context communication, large Power Distance Index, Collectivity, weak Uncertainty Avoidance Index (Oman has a strong UAI) and Muslim (exceptions, Singapore is mainly Budhist; China is politically defined as Atheist).18
  19. 19. Who are we and how do we act?Cultural aspects Group 1 Group 2 Group 3 • Group 4 Low-context communication, weak Uncertainty Avoidance Index, Masculine, small Power Distance Index, Individualistic and Catholic.19
  20. 20. Who are we and how do we act?Current onboarding scenario The current scenario of Vale’s HR managers from the locations were onboarding process was studied in interviewed to determine not only what several countries. the process is like, but also the gaps. Deve entender a importância de gerenciar a In Brazil, in addition toVale na sua implementação do GO the interviews, a New hire and the regional HR were also regional. Employee” was sent to “Mystery interviewed in a focal group conducted participate in the current onboarding in Carajás. Devemos in Rio de Janeiro. process comunicar a sensação de dono no process relativa à organização e disparo do GO localmente.20
  21. 21. What do wewant to be?21
  22. 22. What do we want to be? Interviews with key-stakeholdersVale’s executives involved in the onboarding program were asked to provideinformation on strategic guidelines and business goal alignment for the project.Key stakeholder requirements were used as input to the onboardingprocess design, measurement and materials.22
  23. 23. What do we want to be? Benchmark23
  24. 24. What do we want to be? BenchmarkingIn addition to the survey with other companies, we consulted the best-in-classprogram survey (source: Aberdeen Group). These are some of the results: increase of 31% iof new hire retention rate; reduction of 24% in the time for productivity; reduction of 12% in the cost per new employee.The study of the Aberdeen Group indicated that the performance of the best-in-class presented : a success rate of 84% in relation to fitting the culture; a success rate of 68% in socialization.24
  25. 25. How do weget there?
  26. 26. How do we get there?To depict the manner in which we will achieve the objectives we propose it isnecessary to determine:
  27. 27. How do we get there?Who are we going to focus on?
  28. 28. How do we get there?What should we resolve? Comunication Informartion/ Process training Management Infrastructure
  29. 29. How do we get there? What should we resolve?Incomplete, outdated, non-motivational, unbalanced andunorganized contentsand materials.Lack of guidance from Vale’s Deficient communication process betweenhead offices regarding the the company and employees andonboarding process and between employees.contents.Lack of qualified and The onboarding Leadership New hire workmotivated local HR program is short, New hire tools, includingpersonnel to develop motivation rates uninvolved with thematerials and lacks efficiency onboarding process; IT, are not drop very Lack of engagementconduct the and promptlyonboarding process. optimization. quickly. from managers. provided.
  30. 30. Rethinkingthe process
  31. 31. Rethinking the process? Phase IIAs we have seen in the previously presented gaps, three categories stand out:information/training; communication and infrastructure.This indicated a need to redesign the onboarding process by re-modelling theareas that do not either satisfy the needs of the stakeholders or maintain goodpractices.
  32. 32. Rethinking the Process?Phase II Step 1 Step 2 Step 3 Step 3 Step 4 Sep 3 Review list of Re-design the Design Outline Gaps and workflow to instrucional the eliminate gaps strategies and requirements and meet materials to existing related to support the each part of requirements. workflow workflow. the workflow. 1. 1. 2. 2. 3. 3. 4. 4.
  33. 33. Rethinking the ProcessProgram Deployment
  34. 34. Rethinking the ProcessCurrent Scenario • Company and employees profile. • Key-stakeholders interviews. • Benchmarking. • Gap Analysis.
  35. 35. Rethinking the ProcessChange Management An easier way sell the new process: • Risks and Opportunities (impact x probability). • Checkpoint with stakeholders to validate strategies. • Workshop with pilot countries: a- planning best training session methodology for implementation; b- training sessions and tools validation with local onboarding facilitators.
  36. 36. Rethinking the ProcessChange ManagementImplementation Game
  37. 37. Rethinking the ProcessCommunication PlanWe want to comunicate: Care for Processes Ownership EmployeesThe expected benefits are: Trust Belonging Integration
  38. 38. Rethinking the Process Management Model The Management Model integrates People, Resources and Technology Administrative Portal Regional HR and SSO User Portal Hiring Managers HR Systems and Softwares Trainers People TechnologyCorporate Structures (HR Processes, Health and Safety, Environment, Communication, IT, Resources etc) Process Tools (checklists, guides and references, templates and communication pieces)
  39. 39. Rethinking the ProcessManagement ModelWorkflow 1 2 Strategies and Models and Guidance Guidelines Cultural Groups Onboarding Sponsors Center of Expertise Local Onboarding (HR + SSO + (Corporate) Focal PointsCommunication Directors) (Regional HR) Results of the Applicability Program Feedback 4 3
  40. 40. Rethinking the Process Performance Support, Education, Communication The global onborading program is composed by 5 macrosteps Educating on Vale My RoleBefore Day 1 Day 1 Monitoring and Our Business and My Business Area
  41. 41. Rethinking the Process Performance Support, Education, Communication Divided in 8 shelfs, each one with an objective: 1 – Select new hire 2 – Onboarding setup 3 – Infrastructure and working tools 4 – Hiring procedures 5 – Current employees awareness and orientation 6 – New hire first welcome 7 – Area and functional onboarding 8 – Follow up and evaluation41
  42. 42. Rethinking the Process Performance Support, Education, Communication Toolboxes, designed to different target audiences are displayed on each shelf. HR regional Hiring Current New Hire Manager Employees42
  43. 43. Rethinking the ProcessPerformance Support, Education, Communication Tools are grouped in boxes aligned with each activity’s objectives. The categories are: Communication Education Performance Support
  44. 44. Rethinking the Process Communication We have created tools to support a change management plan in order to engage managers and current employees. Several tools help our employees to properly inform new hires.44
  45. 45. Rethinking the Process Education At Day 1, besides training the new hire, we should engage them by presenting our Mission, Vision and Values and teaching them how to find more information about their areas of interest. If the new hire does not achieve a satisfactory result in the learning evaluations, there are tools that will support Learning & Development teams in planning reinforcement activities.45
  46. 46. Rethinking the Process Performance Support GO Vale Portal46
  47. 47. Conclusion
  48. 48. ConclusionThis study was broad and complex and it involvedseveral areas of the company worldwide.It provided inputs to create GO Vale (Vale’s GlobalOnboarding Process), with structured processes,well defined roles and responsibilities and supporttools for all the activities.Now the HR professionals in the filed andcorporate areas should work together to createa welcoming culture for the new hire,guaranteeing a productive, integrated and highperformance work environment.
  49. 49. Thank you!Desie Ribeiro Marta EnesGeneral Manager of Education Director of Educational Technologyand People Development marta.enes@affero.com.brdesie.ribeiro@vale.com affero.com.br

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