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Deloitte Shared Services Conference 2019

How to retain talent in a hot shared services location: Arla’s story of fighting the attrition rateTorben Fabrin, Natalia Góra and Anna Gugala, Arla

How to retain talent in a hot shared services location

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Breakout 142019 Deloitte Shared Services ConferenceSeptember 2019, Dublin, Ireland

Arla’s story of fighting the attrition rate

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Welcome to Arla’s story of fighting the attrition rate Please have the conference app ready - we will use the polling functionality

Torben FabrinHead of IT and GSS

Natalia GóraService Delivery Manager

Anna GugałaHR Business Partner

Arla is the 4th largest dairy company in the world We create the future of dairy to bring health and inspiration to the world, naturally...

10,000+OWNERS

19,000+COLLEAGUE

S

14+ BN KGMILK INTAKE

10+ BN EURO REVENUE3 BRANDS

THE 4THLARGEST

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4

Gdańsk is the place to beHotspot for investors and talent

Right at the seaside

3 cities in 1 area

Clean environment

Talent and office space availability

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Arla discovered the location’s potential over 10 years ago And followed the plan of steady growth and moving up the value chain

• Process harmonisation

• Standardization

• RPA

• SSC talents supporting other functions (STA)

Value Creation2017

2013

• Performance Management

• LEAN

• Multi-functional growth

Transformation

2008SSC setup

• Finance processes in scope

• Centralisation

• Lift & Shift

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56 199 322

FTE

¹Number of BPO, SSC, IT AND R&D centers in Gdansk, ABSL 2018

We were not the only onesCompetitors picked up the pace and Arla was no longer in a league of its own

Big entries of the Big Brands

Competitive Employee Value Proposition offered for strong

skills

Exciting job-opportunities available to talents

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52

102

131

0

20

40

60

80

100

120

140

2007 2010 2015 2018

Number of centers in Gdansk¹

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30 August 20197

The battle for talent began

…and we were losing this battle

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From 2014 to 2017 the GSS attrition rate skyrocketed

2014 2015 2016 2017

Attrition Rate

9%

17%

25%

… with 10% of the operational positions constantly vacant

30%

Reasons for people leaving

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The vicious circle of attrition impacting center’s delivery

High workload

No time for value

add activities

People leaving

Slow recruitment

Open vacancies

Inattractivebrand

Lowsalaries

What is the attrition rate in your organization?Please open the Conference App and vote

[POLLING SLIDE]

A

Too high

B

On the spot

C

Too low

D

I don’t know

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30 August 201911

Our way from 30% to 12%

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Four tactics to win the battle…by breaking the elements of the vicious circle

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03

04

02

Salary Adjustments at 0 budget increase

Multi-channel “We are Arla GSS” employer branding campaign

Two well-targeted leadership programs

Improved Talent Acquisition approach

Salary Adjustments at 0 budget increaseWe generated savings that we re-invested to salary increases

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Target: close the gap to the market and keep up with it

Continuous Improvement to fund the

increase

Disciplined performance mgmt. to stay on track

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Strong funding was fundamental for our strategy …and continuous improvement is easier said than done

Juniors

Seniors

Team Leads

Mgmt.

Juniors

Seniors

Team Leads

Mgmt.

Optimized task-allocation across the team pyramid

2016 2018

6%

Efficiency

YoY

Strong Year on Year efficiency gains

Waste-removal and process streamlining

Broad process standardization

Improved day to day ways of working

Robotic Process Automation

Juniors

Seniors

Team Leads

Mgmt.

Two well-targeted Leadership programsTeam leaders are the backbone of our delivery organization

Consistent leadership behaviours make workdays better for the many people

20 Team Leaders impact the 220+ employees – effective investment

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Constant focus on leadership development Leadership in Arla is not just an addition to performance, it’s an enabler

Current Team leadersLeadership Program:

• Desired and consistent leadership behavior

• 12 Leadership skills

• Leadership as 1st priority

Future Team Leaders Coordinator/Successor Program:

• Setting clear goals

• Defined set of competencies

• Develop competencies

80%

of Team Leader positions closed with internal candidates

30%

of participants promoted Team Leader

78%

employee satisfaction rate in terms of leadership

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Four tactics to win the battle…by breaking the elements of the vicious circle

01

03

04

02

Salary Adjustments at 0 budget increase

Multi-channel “We are Arla GSS” employer branding campaign

Two well-targeted leadership programs

Improved Talent Acquisition approach

“We are Arla GSS” Video from EB Campaign[PLACEHOLDER] - https://www.youtube.com/watch?v=kEGL3Kw0rHg

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https://www.youtube.com/channel/UCP7MxwPSBdYtWzhTClPlJ5g/videos

We also encourage you to watch the rest of our EB movies:

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“We are Arla GSS” employer branding campaignOur employees changed the GSS brand and built the campaign

150% Increase in number of applications (both internal and external applicants)

Employees re-discovered ARLA and our brand

Best Employer Branding Campaign in Poland 2018

Improved Talent Acquisition ApproachRecruitment process designed around segmentation, speed and consistency

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Speed recruitment process for

external candidates

Customised and faster internal

recruitment

Proactive pipeline management

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We managed to revert the trendFrom 2017 to 2019 the GSS attrition rate decreased from 30% to 12%

2014 2015 2016 2017 2018 2019

Attrition Rate

9%

17%

25%

30%

15% 12

%

…with only 3% operational positions vacant

New Target:

15%

There are no miracles

The traditional approach worked for usKey take-aways from our story

Clear and consistent priorities

Discipline in execution

Long-term strategy with broad buy-in

Thank youDo you have any questions?

30 August 201924

Appendix

12 leadership behaviours in Arla FoodsWe used them in our GSS leadership development programs

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