TALENTS
Today, our mission consists in arousing our people’s curiosity and challenge them into driving their own personal and professional development. This is the only way to generate the necessary technical and adaptive capacities to address our strategic objectives.
The CAP Group development management policy pursues both the retention as well as the professional development of our people, ensuring they are sufficiently motivated to harness their potential at maximum capacity. Thus, we make sure we have the best people occupying key company positions, we prove we are flexible enough to conciliate people’s needs with those of the organization’s and, finally, we value, recognize and compensate each person’s performance.
As shown by the 2017 Compass ESG survey on employee perception, the culture of feedback and clarity of objectives are seen as two key issues by our workers.
Based on this survey, 62% of workers “agrees” or “strongly agrees” with the company’s general management of environmental, social and corporate governance aspects, which positions the company in a medium-high performance level, provided the 32% obtained as global result from the survey conducted at Tupemesa is discounted.
According to this study, compensations, training and development, community, suppliers and anticorruption are the main issues on which corporate management should place its attention.
Under these circumstances, in 2014 we undertook the challenge to articulate the talent management policies and processes that are part of the corporate people management system, with the aid of SucessFactors (SSFF) and the decision to move forward in the incorporation of digital and data analysis tools into our people management processes.
In 2017, our Development Dialogues (2D) were relaunched as a formal feedback initiative while the corporate competency model was revamped. The 2D is mainly tasked to promote a positive feedback culture where dialogue can be the means through which we can define the best work styles to effectively respond to the way our businesses evolve while also responding to the individual concerns of our workers.
Management by Objective (MBO) assists the company in the definition of short and medium-term goals and in the identification of individual contributions to area and company objectives.
The MBO is applied to all people not covered by collective contracts. As for the remaining workforce, the performance management system to be applied by the company will be determined by the collective contract each worker’s contract is subscribed to.
Development and performance go hand in hand with recognition. This is why people contribution to company results exert a direct impact on the compensation system applied to each worker. Just as stated in our Recognition Policy:
Fixed compensations are associated to the development and performance delivered by each employee.
Variable compensations is determined by goal fulfillment.
In 2017, 70% of workers had their performance evaluation.
On this same topic, CAP Acero has been applying, for six years now, a performance management model originally applied on a biannual basis that later on became an annual process involving the entire general payroll workforce. The process starts every July and August with the objective definition stage to be closed between December and January with the evaluation and feedback phase.
CAP Minería, on the other hand, applies an evaluation system where competencies are measured according to type of function and achievement of goals. In 2017, this company continued to apply its competency development plan for supervisors. This project is started out of the importance attached to leadership by the company as a key component in the development of work teams, organizational efficiency and the achievement of strategic outcomes. During this period, the following workshops were organized on this subject:
Time management
Post graduate programs
Training of mine maintenance mentors (Los Colorados mine)
Visible leadership
Training of SERNAGEOMIN monitors
Conduct enhancement program
Additionally, under the collective contracts executed in 2017, CAP Minería introduced benefits designed to recognize performance in the achievement of goals (DPO).
| Minería | Acero | Processing | New Businesses | CAP S.A. | Total 2017 | |
|---|---|---|---|---|---|---|
| Performance evaluation based on quantitative KPI | 1,852 | 755 | 230 | 6 | 55 | 2,898 |
Attracting young talents has become a highly complex challenge for the largest world companies, as a result of the new aspects and dimensions nowadays prioritized by the new generations at the moment of deciding their professional destination.
These priorities, sometimes turned into non-negotiable conditions, are associated to the social and environmental commitments undertaken by companies, working hours flexibility for workers, internal innovation and participation opportunities and career development chances offered by the organizations.
In this sense, CAP stands out for having in place a continuous learning model designed not only to prepare its worker to perform their duties but also to equip them with the skills required by an increasingly complex business context where success is determined by factors such as experimentation, empathy, ethics, entrepreneurship and tolerance to failure.
How CAP trains its leaders and collaborators
Since its creation in 2015, the Corporate People and Sustainability Management has been actively working on updating the competencies of the entire workforce (not only of leadership levels) with the purpose of creating a personal leadership model that goes beyond the mere performance of assigned duties.
Thus, CAP has focused its work on the dissemination of advanced management techniques through the programs “We are CAP” and “Leaders for the Future”.
Likewise, special emphasis has been placed on the generation of innovation skills with the aid of our program “We Crate Future”. This initiative prompts participants to continually challenge themselves in the way they understand their jobs and scrutinize the business models currently in place from a creative and constructive perspective.
Finally, leveraging female leadership has also been a priority for the company in response to the “Promociona Mujer Chile” program aimed to promote female participation in executive positions. For CAP, this initiative will allow governance teams to adapt to new environments and understand more easily the needs from the different stakeholders.
Training at affiliates
At the different affiliates, this training approach is complemented with the specific training needs demanded by each operation:
CAP Acero: In 2017, this company bolstered its workers’ technical specialization, with a focus on topics associated to physical asset management and maintenance. Likewise, diplomas on logistics management and on productive maintenance management were organized as well as a seminar for reduction specialists (blast furnaces), attended by experts from steelworks from Argentina and Brazil. Also, other courses were offered, such as Metallurgy of Long Steel Products taught by a foreign instructor and Lamination Process and Production of Clean Steels, directed to people working with long products.
CAP Minería the most relevant training topics were safety, innovation and environment.
In 2017, Cintac training plan was focused on reinforcing the skills necessary to fulfill the strategic goals and on aspects of communications, innovation management, safety and self-care and regulatory knowledge. Nearly 40% of the workforce received training.
TASA training courses were focused on disseminating the Labor Law and on bolstering risk and safe work regulations. These activities were complemented with workshops on Office (Excel), integral welding and ergonomics, among others.
Tupemesa worked on an annual training plan designed to leverage operational and administrative workers’ soft and technical competencies. Thus, the affiliate trained workers on subjects like Excel, internal audits, welding basics, assertive communication and problem solving. There were also other courses on occupational health and safety focused on constructing a culture of prevention. A total of 474 workers received training; that is, 3,606 training hours in the year.
The above training programs meant a US$ 1,225 thousand investment for the company in the last year with a total average of 22.86 man / hours in training.
| 2015 | 2016 | 2017 | |
| Total training in thousand man / hours | 139.9 | 101.3 | 149 |
| Average training hours per worker | 33 | 32 | 22.86 |
| Investment in training in thousand US$ | 885.5 | 747.9 | 1,225 |
| Average US$ per worker | 211 | 234 | 320 |
OPINION
PIECE
Ernesto Escobar E.
"Human requirements
of tomorrow’s society"
Today we may be experiencing the most profound change process ever occurred in the industrial age, mostly as a result of the dawn of a technological revolution that is about to modify the fabric of the way we live, work and interact with each other. As Klaus Schwab, puts it in his book "The Fourth Industrial Revolution", in its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before.
The Industrial Revolution 4.0 will launch a wave of innovation that will not only revolutionize the industrial processes but will also cause a direct impact on society and on people as individuals. It will change not only what we do but also who we are.
In terms of adaptive challenge, it might be said we are facing a technological Darwinism where organizations unable to adapt to this disruptive tendency are doomed to disappear.
McKinsey management consulting has defined the Industry 4.0 as the next phase in the digitization of the manufacturing sector where the integration of electronics, information technologies and communications in production processes are helping enhance automation processes and organizations to become smarter. That is, it facilitates the decision making stage, improves product quality, greatly boosts the efficiency of production processes, reduces waste generation and improves the occupational health and safety standards.
No doubt, this fourth industrial wave brings along opportunities and risks. Among the first are the productivity leap that is to take place in all sectors and all-sized companies as a result of new accessible technologies. In 2015, Accenture estimated this revolution might well add US$14.2 billion to world economy in the next 15 years, just by way of efficiency and productivity.
While experts agree that the entire spectrum of consequences cannot be foreseen, there is no deny that labor and human intervention substitution in manufacturing processes will be accelerated. At global level, the fourth revolution is estimated to displace almost 5 million job positions in the 15 most industrialized countries in the world. Without going any further, a McKinsey Global Institute report states that, in the next 30 years, machines and robots will occupy half of the jobs carried out by Chilean workers. Thus, estimates indicate that 3.2 million jobs might be automated.
While the first three industrial revolutions had an impact on machines and hard technology, mainly, the fourth revolution, more than any of its predecessors, will have an impact on people. Thus, people will be the cornerstone of this revolution. In fact, company’s survival within this technological cyclone will be determined rather by their talents, education, attraction and permanent training than by their technological absorption capabilities.
More than ever, organizations will require knowledge professionals qualified to make decisions in highly uncertain contexts, in an expedite way to generate key learnings in fast-paced environments, highly capable of solving complex issues and strongly oriented to working in collaborative networks. In executive echelons, the skill to navigate troubled waters while promoting disruption of current business models will be a “must” that organizations will not be able to bypass as this transformation process will only benefit those companies that have embraced innovation and adaptation.
We cannot lose sight that the robotization of economy and organizations is not the key to all adaptive issues posed by global markets. Though it contributes to the analysis and management of big data, it is far from enhancing inspiration, intuition and creativity, qualities encountered only in human capital and not in technological assets.
Organizations are faced to the major challenge of retaining and developing human talent from among this competence pool where innovation capacity is likely to become one of the most coveted professional attributes to capitalize the benefits of new technologies and work forms.
The saying goes that people are creatures of habit and routine but it also applies to organizations. Just as individuals tend to repeat those actions that in the past proved to be beneficial, companies tend to return to strategies that once led to successful outcomes, a tendency that lures us into the inaction of the comfort zone.
Resisting the idleness and coziness of status quo should be the principle to instill into every fragment of the organization and let it there to spread like a virus among all members of the community and thus change not only what we do but also who we are.
Ernesto Escobar E.
Chief Executive Officer (CEO), CAP Acero
Compañía Siderúrgica Huachipato S.A.