BENEFITS OF CREATING A

HIRE-TO-DEVELOP ENVIRONMENT

JOHN BROCKHAUS

CUMMINS

EXECUTIVE DIRECTOR – HUMAN RESOURCES, STRATEGY,

AND STRATEGIC GROWTH OBJECTIVES

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Benefits of Creating a Hire to Develop Environment John Brockhaus

03 October 2019

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Introduction

John Brockhaus

Executive Director,

Human Resources Strategy

and Strategic Growth

Objectives

20 Years in HR at Cummins Inc.

▪ Plant HR Leadership

▪ Fuel Systems Plant – Columbus, IN

▪ Engine Plant – Jamestown, NY

▪ Business Unit HR Leadership

▪ Fuel Systems – Columbus, IN

▪ Filtration – Nashville, TN

▪ Corporate HR Leadership

▪ Global Compensation – Columbus, IN

▪ Functional Excellence, Strategy and Mergers &

Acquisitions – Columbus, IN

Education

▪ Undergraduate in Psychology, University of Illinois

▪ Master’s Degree in Labor and Industrial Relations,

University of Illinois

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Introduction

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Our history

1940 19501910

Clessie Cummins

creates the

Cummins Engine

Company based in

Columbus, Indiana

(U.S.A). William G.

Irwin, who employed

Cummins as a

driver, supplies

nearly all of the

$50,000 in startup

capital.

1920 1930 1960 1970 1980 1990 2000 2010

For 100 years, we have defined ourselves by our unwavering values and our promise of

innovation and dependability. In the next 100, we will continue to challenge the impossible.

Here’s a look at some highlights from our past 100 years:

1919

Cummins takes Irwin for a ride in a

used Packard limousine that he

equipped with a diesel engine on

Christmas Day, convincing Irwin of

the engine’s potential. Irwin invests

a much-needed infusion of cash.

1929

Cummins barnstorms across the

country, demonstrating the

power and fuel efficiency of the

diesel engine in his Coast to

Coast Cummins Diesel Test Bus.

1932

Cummins earns its first profit.

1937

Miller becomes

Executive Vice

President of

Cummins.

1944

Miller becomes Chairman of

the Cummins Board.

1951

Cummins begins

operations in India,

first as a joint

venture with one

plant in Pune.

1962

Cummins enters

China as part of a

deal involving heavy

construction

equipment with

Cummins engines.

1975

Cummins celebrates

100 year anniversary.

2019

Cummins redefines

Our Story including

the Mission and

Values around its

Vision of “Making

people’s lives better

by powering a more

prosperous world”

2017

2020

Cummins purchases 86

percent of the Onan

Corporation in Minneapolis,

MN (USA), which would

become the basis for its

Power Generation Business.

1986

Cummins Engine

Company becomes

Cummins Inc. to

acknowledge we

are also a leader in

global markets

including filtration

and power

generation.

2000

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Wisdom of the Workplace

J Irwin Miller, American Industrialist:

▪ Leader in Civil Rights

▪ Supported the American Civil Rights

Movement and fought for equal rights

▪ Fought against the apartheid in South Africa

▪ Visionary

▪ Business

▪ Community

▪ Human Rights

▪ Patron of modern architecture

▪ Wisdom of the workplace

▪ Valuable knowledge on Shop and Office floor

▪ Need to build trust with employees

▪ Giving employees the freedom to exercise

their wisdom will lead to more meaningful work

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Encouraging All Employees to Reach Their Full Potential

Capable Leaders Performance

Culture Rewards &

Recognition

Growth Opportunities Talent Selection

How many of you worked in an hourly position?

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Cummins Inc. Workforce at a Glance

Shop Positions:1. Production Associate

2. Quality Inspector

3. Warehouse Operator

Technician Positions: 1. Field Service

2. Facilities Technician

3. Product Functional Test

Technician

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The Workforce Strategy will extend our talent management philosophies to

hourly employees, enabling ALL employees to reach their full potential

Organizational

Readiness

Global Job Descriptions

Career Development

and Advancement

Performance

Management

Leadership

DevelopmentRecruiting and

Onboarding

Market-Based

Compensation

Labor

Relations

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$4,969

73%

32%Average cost of turnover per hourly employee

(search cost)Cielotalent.com

of employers said employee development is

important, while only 49% put it into practicehttps://www.shrm.org/resourcesandtools/tools-and-

samples/toolkits/pages/developingemployeecareerpathsandladders.aspx

Turnover rate

in 2018 for

manufacturing employees https://www.bls.gov/news.release/jolts.t16.htm Can be up to 50% of annual salary for entry level

positions https://www.forbes.com/sites/billconerly/2018/08/12/companies-need-to-

know-the-dollar-cost-of-employee-turnover/#4e85aeb6d590

Top Reasons employees leave organizations:

1. Another career opportunity

2. Pay and Benefits

3. Personal/Family reasons

4. Lack of career advancement

5. Relationship with manager

Dec 2018 Mercer Compensation Policies and Practice Survey

77% Of turnover could be prevented by

employers https://workinstitute.com/about-us/news-

events/articleid/2259/2018%20retention%20report

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Table Discussions

▪What opportunities exist for your hourly employees to grow,

develop, gain and apply new skills and experiences?

▪What are the barriers and challenges?

▪What will you do differently going forward?

▪How will you action this with your workforce?

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Internal Use Only

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“It is critical to the success of our business that every employee has the

opportunity to achieve their full potential at Cummins. We are personally

committed to empowering employees and their leaders to realize this goal

for our entire workforce.”

Jill Cook Rich FreelandVice President President

Chief Human Resources Officer Chief Operating Officer

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