The future of HR in the digital age

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1 The future of HR in the digital age 15th Kienbaum Annual Conference Ehreshoven, June 2, 2016 Janina Kugel, Member of the Managing Board of Siemens

2 Active in around 200 countries Revenue of 75.6 billion Nearly 170-year history 348,000 employees Siemens AG All rights reserved Page 2

3 Virtual world Real world Siemens AG All rights reserved Page 3

4 We need to get the right people to the right places faster Labor market Demands Battle for talent New expertise Demographic change More responsibility Lack of specialists More flexibility à HR is elementary! Siemens AG All rights reserved Page 4

5 Complexity Siemens AG All rights reserved Page 5

6 Competence management Job architecture Behaviorally anchored rating scale Competence Model Balanced scorecard Strategy Succession Planning Strategic workforce planning Career paths 360 KPIs Job description Job profiles Talent management Talent review Job ads Performance appraisal Employee skills & competencies profile Recruiting Siemens AG All rights reserved Page 6 Development plans HRIS Source: Prof. Dr. Armin Trost, Complicatedness meets Complexity

7 We ve designed a global HR setup Global HR business partners ensure proximity to global businesses provide global solutions for global businesses together with Global Expert Teams/countries Global HR setup Current and future employees and alumni HR (Lead) Countries ensure proximity to local businesses and local labor markets state-of-the-art and efficient solutions for local businesses HR Functional Shared Services deliver high service quality and efficiency Global Expert Teams (GET) set consistent global standards focusing on both innovation and the integration of business/country/ methodological perspectives Siemens AG All rights reserved Page 7

8 1. We re building necessary expertise proactively

9 Our training project is already creating necessary expertise Example Service technician Server and storage technologies Siemens AG All rights reserved Page 9 Sensor/actuator technology Cloud computing Knowledge management Data analysis Self-management Virtualization Systematic thinking Software development Self-directed learning Robotics ID systems Data bases Process management PLM software Project management Embedded systems Business development & planning Infrastructure & connection technology IS/DS & security Lean management Media expertise Network protocols/ip addressing Network technologies Today/ACUTAL Tomorrow/TARGETED

10 We re continuously updating our training programs Siemens AG All rights reserved Page 10

11 We need digital expertise and culture change Development of skills Tearing down silos Experimental thinking Siemens AG All rights reserved Page 11

12 2. We support more flexible and innovative collaboration

13 We re providing more space for creativity and innovation Employee ideas Work 4.0 Opportunities to exchange ideas Siemens AG All rights reserved Page 13

14 3. Data analyses enable even more strategic HR planning

15 Strategic HR planning Analyze expected staff Define job profile Identify gaps & risks Results & recommendations Implement measures Analyze expected demand Siemens AG All rights reserved Page 15

16 4. We use social media routinely

17 Over 160,000 active users in 15,000 groups work and communicate in the Siemens Social Network.

18 5. We foster and demand diversity

19 Siemens AG All rights reserved Page 19 Source: Prof. Dr. Armin Trost

20 Diversity at all hierarchy levels More women in management positions Strengthen generational diversity Expand employee networks Foster a culture of tolerance

21 6. The right management culture is a key success factor

22 Manager Employee Siemens AG Alle rights Rechte reserved vorbehalten Page 22

23 Manager Colleague Advisor Employee Coach Mediator Mentor Siemens AG Alle rights Rechte reserved vorbehalten Page 23

24 In the future, we ll have to assess managers more comprehensively What How Why Siemens AG All rights reserved Page 24

25 We foster open and constructive dialogue Example Multi-source feedback Employees Candidate Colleagues Siemens AG All rights reserved Page 25

26 Our managers are our most important HR experts!

27 Questions Siemens AG 2016