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At 3M, the proportion of total rewards aligned with variable (incentive) pay increases with job level and reflects the job level’s influence on both short- and long-term results. Eligibility for 3M’s Annual Incentive Plan (AIP) and Long-Term Incentive Plan (LTIP) is based on job level, considering both the job level’s ability to influence the incentive period being measured and market competitiveness for these types of compensation.
In late 2018, the Board of Directors updated the company’s clawback policy that covers both cash and equity compensation for executives. The updates address situations involving significant financial or reputational harm as well as risk management failures. The Board of Directors continues to monitor regulatory developments relating to recoupment of incentive-based compensation.
Additional information on 3M Total Rewards can be found in the Employee programs section.
Pay based on role, responsibilities, skills, and performance.
We maintain our focus on our global compensation principles to provide market-competitive, fair, and equitable pay. We continue our journey to assure we appropriately benchmark compensation within our many sites globally and use consistent methods to analyze our compensation position against the market. Efforts continued in 2019 to standardize and simplify our methodology around market pricing, utilizing data sources from multiple vendors. As we move forward, we will continue to look for ways to handle this process in an increasingly efficient and consistent manner.
Our Global Market Pricing Process assures market-competitive compensation for employees and drives consistency and transparency in compensation practices across all regions. Using common job descriptions and grades throughout the world, this process uses data from three global surveys to benchmark pay levels and map job grades, which helps drive our pay principles for fair and equitable pay. In 2019, the Compensation Committee formally added to its list of responsibilities a review of matters relating to internal pay equity.
In 2019, approximately 95% of the shareholder votes cast on our say-on-pay proposal approved the compensation of our Named Executive Officers as disclosed in 2018’s Proxy Statement. The Committee will consider the results of this year’s say-on-pay proposal, as well as feedback from our stockholders, when making future executive compensation decisions.
3M has the same annual incentive plan design for all eligible employees, including our executive officers — the same payout curves, thresholds, maximums, metrics, and metric weightings.
This year, we will consolidate incentive plans to align with our global business model. 3M will continue to conduct assessments for the purpose of identifying and mitigating significant economic and reputational risks in the design of our incentive compensation programs.
In 2019, 3M announced new business segments and leadership appointments. This new structure will increase our customer focus, agility, and productivity in 2020.
Looking forward.
How we work 118 119 3M 2020 Sustainability Report #improvinglives Compensation
Our commitment.
At 3M, we lead with culture. We want our employees to focus on making an impact on the world and feel empowered to bring innovation into their work.
We know that engaged employees are more satisfied with their work, tend to stay longer, and are more productive and committed. We foster and reinforce behaviors that support engagement on many levels, including networking, collaboration, diversity, and inclusion. We focus on the quality and the impact of professional development and career growth.
3M is the place to be for employees interested in development opportunities. Our company touches nearly every industry in every market globally. If you work at 3M, you have a range of development opportunities few other companies can offer. Our people can live in different countries, learn about different cultures, and develop a variety of skills across different industries.
It’s possible for someone to go from a lab, to marketing, to sales, to business development, and all the way up to the C-suite. 3M is so diverse that people can reinvent themselves and their careers all within one company — and so inclusive that they’ll be able to collaborate with other curious, creative minds wherever they go. For more information, see the Employee diversity and inclusion section.
We encourage our employees to pursue areas of interest, and we support the development of career paths and opportunities aligned with those interests. Development programs may consist of formal training, on-the-job development, mentoring, and more.
Our actions.
Our most valuable resource is our people, and we invest in their success. We offer a wide range of benefits and discounts designed to help them live their best lives. We also provide tools, opportunities, and support for people who want to grow their careers.
A learning-focused culture.
Our 96,000 employees do work that matters, applying 3M science in ways that make a positive impact on people’s lives. In today’s fast-moving business environment, it’s more important than ever to anticipate and exceed the needs of our customers, shareholders, and employees. Creating a high-performance culture built on continual learning helps 3M achieve business growth for the company and professional growth for employees.
Employee programs Building a meaningful culture.
Investing in our people.
The professional growth of our people is essential to the growth of our business. In 2019, we provided over.
We leverage a 70-20-10 development model which indicates that, over the course of a career,
Our learning orientation and philosophy focus on experiential learning and skill building rather than classroom-style training.
The number of training hours and the training cost per employee are not our leading indicators of human capital performance. Instead, we focus on indicators that align employees’ results to the company’s success when assessing our development programs. Leadership and employee engagement, employee retention rates, brand recognition, acquisition integration milestones, and Lean Six Sigma (LSS) project value are a few examples of indicators that contribute to 3M’s recognition as an industry and global business leader.
3M has prioritized learning and career development opportunities not only for leaders but for all employees. Further, 3M has separate processes for employee performance and career development. This gives employees the freedom to create meaningful development plans without performance or compensation implications.
Employee development.
Effective employee development programs are crucial in order to reach our goal of 100% of employees engaging in development activities. With our global online employee learning platform, Develop U, employees are easily able to access development resources to support their career aspirations and advance their strategic capabilities within 3M. Develop U provides employees with a personalized experience by recommending relevant content based on their role within the organization.
Additionally, content is organized and aligned to directly support our organizational priorities, including the 3M Leadership Behaviors, company-defined functional competencies, LSS, Sustainability, and supervisory content. Develop U provides access to tens of thousands of unique, just-in-time learning resources in over 15 languages, allowing 3M’s global workforce to engage in employee development.
Given this breadth, we’ve seen.
Considering job-specific training as well as self-directed, over 1.5 million training classes were completed. In 2019, we launched 10 data science and eight digitization functional learning paths, leading to over 3,800 completions. These and other live events pushed our live event completions total to over 102,000 and reached both production and non-production employees globally.
Employees create or update development plans that include activities meant to improve individual skills and further career development. Employees can use additional skillmapping tools in collaboration with their supervisors to identify long-term desired goals and define actions needed to help reach those goals.
70% of learning is done on the job 20% comes through other employees 10% of meaningful development is reached through formal training.
69% of our global workforce engage in self-directed training via online platforms.
25+ for full-time equivalent (FTE) employees.
hours of training and development.
Goal: 100% participation in employee development programs to advance individual and organizational capabilities by 2025.
Science for Community.
How we work 120 121 3M 2020 Sustainability Report #improvinglives Employee programs
A key part of career development is understanding the available career paths and resources. Employees can access functional competency models that clarify expectations regarding the knowledge, skills, and abilities to be developed over a career within a specific function. Based on shared expectations, career paths are aligned with relevant training and development resources. Each function follows a competency model that leverages 3M’s learning platform and directs employees to relevant training opportunities.
Functions also provide development suggestions that can grow competencies through on-the-job activities or social learning activities, such as meeting with a coach or mentor. Currently, the competencybased resources cover approximately 93% of the non-production professional employee population.
At 3M, wisdom is shared. Just as we share and combine our technologies, we also share and combine our knowledge through mentorship, storytelling, and our internal social networking website. We define mentoring as a unique relationship in which a mentor (a more experienced person) helps a mentee (a less experienced person) with their development in a particular area. Further information can be found at Mentorship at 3M. At 3M’s internal social networking website, employees can start new topic groups, join groups, and engage with others on specific topics to help them collaborate and learn.
Setting new employees up for success 3M invests in onboarding and developing new employees so that they have access to the tools, resources, and networks they need to succeed. Our onboarding process begins at the time a candidate accepts a job offer and continues through the first year of employment.
A consistent, comprehensive onboarding platform provides pre-start information delivery and engagement for new employees on the front end and clear metrics, reporting, and tracking for 3M on the back end. This investment sets up new employees to succeed and make meaningful contributions from the start.
Nurturing the leader in everyone.
Leadership development is a competitive advantage at 3M. To maintain this advantage, we are continually leveraging new technologies and delivery methods, thereby assuring impact, consistency, and global inclusivity.
Many development opportunities and programs are available throughout the various stages of a leader’s career journey, spanning every geographic region and 3M business. Programs include a range of online and selfpaced offerings, from personal effectiveness to financial acumen, that cover core skill development aligned to the 3M Leadership Behaviors. These programs also focus on the future by embedding inclusive leadership strategies, promoting development through corporate social responsibility, and offering mentoring opportunities.
Global executive and leadership development.
The 3M Leadership Way is a suite of high-potential leadership development journeys within 3M Learning & Development, bringing one consistent approach to how 3M develops leaders across all geographic areas, business groups, and functions. Each program is an integration of customer-focused, results-driven, and experience-based learning that takes leaders outside the classroom walls to sharpen their skills with leadership challenges for our customers and in our global communities.
Development for people leaders.
With a focus on the critical skills that leaders need to be successful in leading others, the Essentials for People Leaders program emerged as a multi-module program with the flexibility to be delivered as faceto-face classroom training or as online, virtual training. This flexible delivery format is key to providing a consistent development experience for all leaders of 3M while still allowing for needed localization.
All-employee development.
All our people globally, at every level of the 3M organization, are provided with opportunities to develop themselves as leaders. These leadership development offerings target areas of strategic importance, including the development of a growth mindset, agility, innovation, and customer focus. Delivery of content is available face to face in experiential workshops, through virtual instructor-led training, and via self-paced e-modules.
Leadership development is a competitive advantage at 3M. To maintain this advantage, we are continually leveraging new technologies and delivery methods, thereby assuring impact, consistency, and global inclusivity.
Coaching 3M has invested in external leadership coaches to support and accelerate the development of 3M leaders around the world. These coaches work in a variety of ways with 3M leaders. We offer one-on-one time with a coach to help employees apply new learning or on-demand coaching to work through a change. We also work with teams to help them stay close to changing stakeholder expectations.
How we work 122 123 3M 2020 Sustainability Report #improvinglives Employee programs
Learning from listening.
For more than 50 years, 3M has been conducting surveys to solicit employee observations, attitudes, and opinions. Our Standard Opinion Survey program covers the entire globe and provides specific and relevant feedback to major units within the company (e.g., divisions, sites, and countries). All employees have the opportunity to complete the 3M Standard Opinion Survey, and our average response rates are typically about 85%.
The Standard Opinion Survey program enables us to regularly assess the state of employee engagement and other workplace factors critical to high performance and providing a great place to work. In 2019, we launched a new survey platform to provide leaders of the business groups surveyed with an in-depth dashboard of survey results. This is a cycle of continuous improvement for us, year after year.
• Management Team Reviews function not only to provide comprehensive information about an employee, but also to further the goal that rating considerations will be consistent for employees within an organization.
Each year, all 3M non-production employees identify their contributions in meeting their specified goals through an employee performance process. 3M strives to have 100% of non-production employees complete the entire performance review process. In 2019, all eligible employees were rated through calibration meetings, and these employees and their supervisors received tasks to complete the year-end process in the performance system.
Be rewarded for your efforts.
To drive 3M’s successes, we incentivize our employees to excel. Our process includes two components: measurable targets agreed upon by employees and their supervisor, and Leadership Behaviors ratings, which reflect the extent to which the employee is engaged in core behaviors that allow 3M to execute our strategies and meet our objectives.
The performance assessment process helps hold each of our employees accountable for his or her contribution and everyday behaviors. The process aligns personal goals with organizational goals — we strive to achieve our goals in ways that support and strengthen our culture and achieve sustainable growth.
Each unit or business group that surveys must review their results, present them to their employees, and execute an action plan to address the issues that arise from the results. We built supports into our process that make it easier to bring about successful change through action planning — such as accountability checks and specific tools to act on the results. We identified key drivers of employee engagement and developed and deployed learning opportunities for leaders (e.g., multiple on-demand instructional videos on engagement). We continually assess survey content and update it as needed to assure alignment with company strategy and major initiatives. Thus, our surveys support strategy and business objectives directed at supporting sustainable corporate success through our employees’ behavior on the job.
Long may your curiosity flourish here.
Our global voluntary turnover rate continues to be under.
We calculate voluntary turnover separately from retirements, companyinitiated turnover, and reductions in workforce. Voluntary employee turnover is defined as turnover due to employee-initiated reasons (e.g., returning to school or going to another job in a different company).
Total turnover includes voluntary turnover and all other forms of turnover (e.g., termination as a result of restructuring, termination for poor performance, and retirements). Our total employee turnover rate is an annualized rate that measures terminated or retired 3M employees during the calendar year, excluding foreign service employees and 3M temporary employees.
Temporary employees are 3M employees hired temporarily with intent to be employed short-term. They do not include contingent workers.
3M follows all applicable local laws and regulations regarding notice periods in the event of business operations changes.
3M’s Human Resources (HR) Department is unique in that we have one global system to track HR information. At every 3M site around the globe, we have instant access to this information through our global reporting tool.
Workforce experience, services, and rewards.
The more an employee contributes to 3M’s success, the more success they create for themselves. We offer a competitive base pay, and depending on position, variable incentive pay linked to company and individual performance. We also offer a wide range of benefits and discounts designed to help employees live their best.
3M has long prioritized taking a well-rounded view of an individual’s performance, assuring that employees are treated in a fair and consistent manner: • Performance goals, linked to higherlevel organizational goals, are set jointly between the individual and his or her leader • Tools provided to leaders facilitate conversations between leaders and employees to assure mutual understanding of expectations and desired behaviors • Feedback on progress toward these goals is provided formally, twice a year, and supervisors are taught and encouraged to provide routine feedback to help employees adjust performance and meet or exceed goals 6%, a source of great pride for our company.
How we work 124 125 3M 2020 Sustainability Report #improvinglives Employee programs
U.S. employee parental leave.
In 2018: 1,159 total employees 354 female employees 805 male employees.
Usage of parental leave.
In 2018: 1,020 total employees 288 female employees 732 male employees.
Parental leave retention 88.0% in 2018 98.4% * in 2019.
U.S. parental leave retention rate *2019 numbers may include those that left on leave in 2018 and came back in 2019. Some employees on leave in 2019 may return in 2020.
In 2019: 1,119 total employees 322 female employees 797 male employees.
In 2019*: 1,101 total employees 330 female employees 771 male employees.
In 2019, our overall United States work and retention rate, those returning after leave, was 98.4%.
Further information on 3M’s wide range of benefits, healthy living program resources, and discounts designed to help employees live their best can be found at Working at 3M: Benefits.
Highly competitive pay.
We offer a competitive base pay, and, depending on position, variable incentive pay linked to company and individual performance. For more details, see the Compensation section and Working at 3M: Pay.
When and where to do the best work.