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1. How to Slash Your Recruitment Bill by Retaining
90% of Your Trained Workforce in a Highly
Competitive Market
15 Well Kept Secrets to Shared Services Success
19th March 2009
Colin Glynn – Controller – European Finance Service Centre

2. Key statistics
s £9,174m
Underlying Sale
ries
50 Count
38,000
£55.5m
£974m
2

3. What we do
Power systems for:
Civil Aerospace Defence Aerospace Marine Energy
Wide-bodied jets Military aircraft Commercial Oil & Gas
Narrow-bodied jets Helicopters Naval Power generation
Corporate & Regional
Underlying Group sales 2008 £9,147m
Order book £55.5bn
4

4. Mastering Talent Development
How to slash your recruitment bill by retaining 90% of
your trained workforce in a Highly Competitive
Market.

5. Our Competition
Rolls-Royce shared services (HR and Finance)
employs approximately 300 people.
Other competition
− Egg - 1,000 employees (100m)
− Bombardier - 200 employees (500m)
− Toyota - 200 employees (4 miles)
− Councils - 500 employees (1 mile)
− Others
− Specsavers (New)

6. Creation of a “Retention” Culture
The statistics
Attracting the right people
How do we retain the people
− Employee Communication - minimum standards
− Environment – Workplace experience
− Listening
− Culture created
− Competences and Training
− Opportunity to grow
Top 10 Tips for Retention

7. Manpower History
Original Target Reduction
Heads
2000 - 2003 Original Scope 202.0 92.0 54%
2004 - 2008 Additional Scope 152.0 67.4 56%
Total Position 354.0 159.4 55%
Virtually all reductions have been at other sites as work is
inloaded.
Main issue of staff retention is through the changes thus
providing the experience required, reducing risk and ensuring a
service can be delivered.
Therefore – HOW DO WE TRY AND RETAIN EMPLOYEES.
FIRST WHO HAVE WE LOST

8. Leavers Analysis 2007, 2008
Leavers - to external 2007 2008
Start own business 1 -
Emigrate 3 1
Child Support 1.7 -
Retirement 1 1
Geographical relocation 1 2
Another employment opportunity 2 1
Severance programme - 8
Discipline 1 -
Leavers - to internal
Promotion, enhancement opportunity 10 7
Leavers Total 20.7 20.0

9. Attracting the People
By recommendation (50%+)
By links with local colleges/lecturers
By temp to perm arrangements
By interview process
− Basic tests
− Behaviour assessment
Rolls-Royce.com

10. 1. Employee Communication – Minimum
Standards
Monthly stand up brief (Controller, Process Head or Guest)
Management meeting every 2 weeks (set agenda)
Customer Service Review results every month (to all staff)
− Customer Service performance data (SLA)
− Customer/Supplier Incidents
− Issues
One to ones for all with Team Leader
Business Plan Deployment
Half year, full year briefs
Always two way

11. 2. Environment – Workplace experience
Open plan for all (access)
Hot desking for customers and business partners (service)
Standard equipment for all (equality)
− Desk, IT, software, chairs, space
Bright modern offices with environmental features (environment)
Flexible working around core hours (flexibility)
Simple perks (beverages f.o.c.) (reward)
Social Encouragement with subsidy (interaction)
Funded Team Building (with development/process improvement
theme) (enhancement)
Being seen to do the right things, e.g., recycling (environment)
Final Salary Pension scheme (reward)
Bonus based on total performance (reward)

12. 3. Listening and Feedback
Investors in People
Employee engagement survey
Quarterly employee/union forums
Personal thank you’s
Public praises and reward
People meetings, development cells, honest and robust
recorded feedback
Employee representative teams
Attitude – positive message, e.g.,
“I don’t drop players – I make changes”,
Bill Shankley 1913 - 1981

13. 4. Culture Created
Setting Expectations

14. Setting Expectations
Opportunities
FSC strategy review-Blue Sky Suggestions
20
EFSC Major Programmes year 1 to year 3 Issue : 9.0 January 2007
10 4
Project
Leader
OC&S year 1
Nov Dec Jan Feb Mar April May June
year 2
July Aug Sept Oct Nov
Difficult 1
Accommodation C Glynn J Richardson 6 5 3
Total FSC
Performace Related Pay/ All
Change
Inclusive (PRP) S Hall
Benchmarking C Glynn N Hepke
InterCompany C Seymour
NAS Data Transfer S Leach B Johnson
IIP
IFRS in SAP (Other)
J Richardson
C Seymour
J Richardson 5 5 5 5 5 5 5 5 5 5 5,6
15 7
FA&R
IFRS (FX) in SAP C Seymour
Convergence J O'Farrell 6 7 8
BCS Hyperion Replacement C Seymour talk to chris
8 9
Business Attitude
BW & ERP Strategy J O'Farrell colin to talk to geoff to be linked into Hub
Nicky
Payroll & Expenses
Short term
Payroll & Expenses Merger G Castlehow 6 7,8
T&E Expanded Scope (Credit
Cards) G Castlehow 6,7,8
Pensions G Castlehow
Major FSC Projects
HR Shared Services G Castlehow C Stackhouse
On Line Payslips
International Payrolls
G Castlehow
G Castlehow 6
10
Employee Self Service (ESS) G Castlehow
Credit Vetting S Hall talk to sam
AR CM
DMS into SAP S Hall 10
programme vs
Internet Banking S Hall J Richardson
Project Steam Packet S Hall talk to sam 1,2,3
E&T Transfer S Hall 1,2 3,4,5 6 7 8
Civil Wave 2 ERP K Connally J Richardson 6 7 8
NPNP -JVs G Bates J Richardson G5
NPNP - Commercial G Bates J Richardson/N Hepke G5
NPNP - Intergroup G Bates J Richardson/N Hepke G5
AP
NPNP - Purchasing Coverage G Bates G5
EDI Process - 2007 (top 100) G Bates
RRD PIP G Bates 123
Global PIP G Bates
Long Term 2
Invoice Solution G Bates
RRD 2005 (AP) K Connally N Hepke 8 5
RRD 2005 (AM) K Connally N Hepke 5,6 7 8
RRD 2005 (AR,DMS) K Connally N Hepke 8
Intended Migrations
RRD 2006 (Cash) K Connally N Hepke 8
RRD 2006/7 (GL) K Connally N Hepke
Migrations
AR&O C Glynn N Hepke 8
Submarines C Stackhouse C Stackhouse 4 5 6 7
Turbine Surface Tech Ltd JV G Pendlebury N Hepke
Project Oberursel C Glynn N Hepke 8
‘blue sky’
N3 C Glynn M Walker 1 2,3 4,5 6 7 8
RRSP C Glynn J Richardson
Project Hamburg S Hall 0,1,2 3
Project Munich C Glynn C Stackhouse 1,2 3,4 5 6 7 8
Project Saxony
Nordics Payroll
G Castlehow
G Castlehow
1,2 3,4 5 6 7 8
Easy Difficult
5 10 15 20 5 10 15 20
Rolls-Royce proprietary information Rolls-Royce proprietary information Systems
Make – Buy applies to services
Threats – as well
Potential for outsource
Control Make
‘make’ whilst competitive Maintain World Class
Competitiveness
Otherwise outsource Performance
/ offshore Buy Protect
Outsource Invest or Partner
Business Criticality
Non-Core Core
Rolls-Royce proprietary information

15. 4. Culture Created
Setting Expectations
Clear Vision
Clear Strategy
Visual Management
Continuous Improvement Expectation

16. 5. Competence and Training
Publicly available skills matrix

17. Skills Matrix

18. 5. Competence and training – Continued
Publicly available skills matrix
Training
− In House
− Catalogue of on-line and classroom based training (from Excel
to Spanish)
− On the Job
− Formally recognised as “training”
− Recorded and monitored
− Professional training
− Supported for personal or business enhancement.
− Currently 22 supported.
− Generous support but with an expectation and a penalty

19. 5. Competence and training – Continued
Professional Training
− Various professions supported (IIP, ICM, CIMA, AAT, etc).
− Fully funded including
− Membership, Exam fees, Exemption fees, Tuition, Revision courses, Study
materials
− Individual released from role (e.g., CIMA)
− 4 tuition days (tutored), 3 revision days (tutored), 1 question based day
(tutored), 1 extra revision day (self study), Exam leave
− In exchange we expect the employee to “pass first time” or face
penalties
− Fund own retakes and leave
− If course not completed refund 12 months costs.
− Leaving the company refund last 12 months costs (up to £10,000).

20. 5. Competence and training – Continued
Publicly available skills matrix
Training
Personal Development and Service Centre Tool Set

21. 5. Competence and training – Continued
Personal Development
− Individual development plan (owned by individual)
− Part of Personal Development Review (6 monthly)
Service Centre Development of tool set
Links back to Individual Development Plan and Skills
Matrix

22. 6. Opportunity to Grow
EFSC is seen as stepping stone into higher roles
Financial Professional Development Structure exists

23. Finance Professional Development
Plan Define Recruit Measure Improve Promote
Finance Strategy Finance Roles Finance Performance Apply Training Maximise
Resource Development Potential
Finance Chief Finance
Qualified Performance Technical Development Cell
Business Officer Professional Development
Finance Director
Requirements Review FS1 FS2 FS3 Cell
Internal Competencies
Finance Recruitment Measured
Americas Cell
People Controller Systems
Performance
Development Master classes
Finance Manager External Europe Cell
Organisation Review
Recruitment
Objective Behavioural
Corporate Cell
Setting
Management
Systems Accountant Early Career Managing
Individual Relations
development Review Potential
Plan
Managing
Finance Trainees
Continuous Work
Professional Executive
Improvement Personal
Profile Judgement
Leadership
Finance Support
Internship
Integrity and
Early Career
Trust
Energy and
Succession Planning Drive

24. 6. Opportunity to Grow
EFSC is seen as stepping stone into higher roles
Financial Professional Development Structure exists
Internal Opportunity to grow
− E.g., Boarding Structure – Internal Opportunity
Creation

25. 6. Opportunity to Grow - Continued
Professional Growth Structure within Shared Service Centre Principal Finance
(and RR Finance) Professional
UPS80
Ability to grow within job
Process of Senior Finance
Professional
UPS70
− Recommendation by manager
Professional
− Presentation to two managers Senior Accounting
Technician
UPS60
− Success leads to promotion and £2,000 plus salary
increase Accounting
Technician
Higher levels require qualifications, supervisory experience UPS50
and varied experience.
Achieved Senior Accounting
Assistant
UPS40
− 2007 14 completed
− 2008 7 completed
Support
Accounting
Assistant
UPS30
− 2009 2 to date
Drives motivation from within a role and encourages Accounting
Administrator
movement within the EFSC. UPS20
Three for one concept

26. Top 10 Tips for Retention
Careful recruitment
Communicate, Communicate, Communicate
Learn to Listen
Create an Enjoyable Environment
Set expectations
Develop everyone
Empower the individuals
Create opportunity
Treat everyone equally and fairly
Value the human asset.

27. Questions