Successful KBR Global Job Re-structure

• KBR is a leading global engineering, construction and services company supporting the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets.

• Head office: Houston, Texas

• Revenue: $12 Billion

• Total number of employees: 40,000

• Has offices in 21 countries.

Introduction of KBR

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How We Got to Where We Were:

• Spun-off from Halliburton in 2007.

• Inherited legacy job titles that do not support the KBR core business with salary bands as wide as 250+%.

• Total number of job count before project = 1,715.Examples:– Manager, Manufacturing Center | Legacy title– Barge Captain | Legacy title – Visual Room Coordinator | No incumbents for 18 months– Captain (pilot) and First Officer I KBR does not own planes

• Single and random jobs with no career progression structure.

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The Project Kick-Off:

• It all started from the top: CEO approved and supported.

• Assigned one full-time Compensation headcount.

• Not a “when we have time we’ll get to it” project.

• Buy-in from business leadership to re-align the KBR Job Structure to reflect the current business needs

• Results will improve the accuracy of market pricing, enhance employee career development opportunities, and augment recruiting, retention and human capital initiatives

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Difference between Jobs and Positions

• Examples of Jobs– HR Manager– Senior Accountant

• Examples of Positions- HR Manager, Asia Pacific

- HR Manager, South Africa

- Senior Accountant, Financial Reporting

- Senior Accountant, Upstream

- Senior Accountant, Technology Sales

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Project Objectives

• Eliminate and consolidate unnecessary jobs and job functions not currently in use

• Example– Elimination

• Well/Production• Barge Operations

– Consolidation• Sr. Manager – Procurement• Regional Sr. Manager – Procurement• Sr. Manager - Subcontracts

Sr. Manager - Procurement

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Project Objectives

• Standardize career ladder

• Example

– Professional Career Ladder

Not all job families will have jobs at every levelExample: IT Management Job Family

(This family begins at Manager, and employees in other Information Technology job families are promoted into the IT Management Job Family)

Associate

Specialist

Sr. Specialist

Manager

Sr. Manager

Director

Supervisor

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Project Objective

• Standardize job levelsCareer Level Level of Job Example Job

99 CEO  

90 - 98 VP, S. VP, E. VP VP - Tax

80 - 89 not currently used but can easily be build out  

70 Directors Director, Accounting

60 Sr. Manager Sr. Manager, Accounting

50 Manager Manager, Accounting

40 Supervisor Supervisor, Accounting

30 Sr. Specialist Sr. Accountant

20 Specialist Accountant

10 Associate Associate, Accounting

0 - 9 Non-exempt Accounting Support Specialist

Most families built out following this hierarchy 8

Project Objectives

• Review and update job descriptions as appropriate with standard career level descriptions

• Standardize Job Codes with Logic– Example

• SACT50 - Manager, Accounting

S - Support Services Super functionACT - Accounting Job Family

50 - Career Level 50 (Manager)

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The Process Begins:

• Rolled-out globally to Regional Compensation Leads at locations with most employees.

• Engaged:– HR Directors (to work with internal clients)– HRIS and Developers (for all impacted systems

including SAP, PS2000, JD Edwards).

• Conference calls with major stake holders (including Government billing).

• Meetings held with top Business Function leaders.

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Approach

• Always from the top.

• Example: We met with the CFO to re-align Accounting and Finance organization

• The following slides are an example of a presentation package made to the CFO.

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KBR Job Family Re-Alignment Proposal

Accounting & Finance

Job Family Re-Alignment Overview

Goals & Summary

A major initiative is underway to assess, design, and implement an improved job structure that fits our current business needs.

Compensation is analyzing vacant jobs to determine if they should be eliminated and consolidating those with similar responsibilities and functions. In addition, we will update current job descriptions with your input, and standardize a career ladder to provide a clear career progression for employee development.

The outcome of this job structure change will improve the accuracy of market pricing, enhance employee career development opportunities, support recruiting, and capture human capital initiatives. Your knowledge and input is essential to the success of this project.

Contacts

Functional Lead: ___________HR Global Account Manager: ___________Compensation: ___________

Designated Functional Lead Contact

_______________________

Additional Global Resources

_____________________________

_____________________________

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Job Family Re-alignment: Steps

1. Review the information in this packet- Contact your HR Global Account Manager or Global

Compensation if you have any questions

2. Designated Functional Lead Contact to work with Global Compensation to edit description of your job family's major responsibilities

3. Return this information to HR Global Account Manager and Global Compensation contact

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New KBR Job Structure

Executive & Operations ManagementEx: Executive level positions and corporate level operations management

Support ServicesEx: Corporate Support Services

Business Acquisition Ex: Business Development,

Marketing, Sales & Direct Support

Construction ServicesEx: Craft & Construction Management

Logistics & Government ServicesEx: OM&L Project Management and

Logistics, Misc. Govt. Operations

Engineering, Technical, & Scientific

Ex: Technical Disciplines

Operations SupportEx: Project Controls, Material Control,

Procurement

Job Function(Support Services

Example)

Job Family

Human Resources Accounting Quality Risk Management Legal

Compensation Tax Quality Assurance Insurance Counsel

Super

FunctionB

S

C

G

E

O

X

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Proposed Job Family Re-Alignment Summary

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NEW FAMILY LEVEL CURRENT JOB CODE CURRENT JOB TITLE PROPOSED JOB TITLEPROPOSED JOB CODE

Accounting

70 K520 Director, Accounting & Finance Director, Accounting SACT70

60A018 Senior Manager - Accounting

Sr. Manager, Accounting SACT60K521 Sr. Manager, A&F

50A011 Manager - Accounting

Manager, Accounting SACT50K522 Manager, A&F

45A012 Supervisor - Accounting

Supervisor, Accounting SACT45K523 Supv, A&F

40 A016 Lead Accountant Lead Accountant SACT40

30 A017 Senior Accountant Sr. Accountant SACT30

20 A010 Accountant Accountant SACT20

10A013 Associate Accountant

Associate Accountant SACT10A057 Senior Billing Specialist

Complete Job and Position Description Example

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Position Title: Sr. Manager, Federal TaxJob: Sr. ManagerJob Family: TaxLevel: Sr. Manager (60) Job Family Description: Owner: Business Functional LeadInitiates and keeps track of tax reports, returns, and other information connected to taxes. Ensures compliance with laws, regulations, and tax statutes to reduce tax liability. Proposes other tax treatments to ease or minimize tax burden. Job Level Description: Owner: CompensationUnder broad direction, is accountable for the performance and results of multiple related disciplines or sub-groups within a function. Manages the delivery of functional objectives by providing leadership and direction to managers or professional staff. Participates in the development of functional strategy and may be responsible for global processes and procedures. Skills required for this job are typically acquired through the completion of an undergraduate degree and 12+ years of experience, 3 of which should be in management.  Position Description: Owner: Hiring Manager• Primary technical resource for the Federal Tax Group who is responsible for both Federal Tax compliance and the Domestic Tax provision • Assume primary responsibilities for proper analysis and treatment of major tax transactions including acquisitions and reorganizations• Manage the final integration of an acquired group of companies. • Implement process improvements which will increase effectiveness• A solid understanding of FAS109 • Knowledge of accounting method changes and current federal tax issues

Next Steps

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• Internal business review

• April 23 - Re-connect over proposal, discuss and agree on job structure changes

• April 30 – Receive approval to implement job structure changes

Result for Accounting and Finance

• Job Families created for Accounting and Finance:– Accounting– Accounting Support– Internal Audit– Payroll– Risk Management– Tax– Treasury

• Each job family has a distinctive function.

• Rewrote Job Family and Level Descriptions

• Developed full career progression for each job family and market priced.

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Job Pricing

• Historically KBR used an “HR Generalist Tool” – an internal website where an HR Generalist can enter one job code and receive:

– The market, by location, of that job and the ranges

– Internal average of incumbents in that job– Survey data mapped– How data was aged

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Job Pricing

• Decisions to make:

– Which surveys to use for each job family.

– How survey data should be aged

• Theory of maximum and minimum increases to the market reference

– Check for consistency of level to level increases.

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Sample of a Career Progression Ladder

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Accounting

Job Code

Job Title Market Low Market Market HighEE

CountInternal Average

Level Delta

SACT70 Director, Accounting $129,600 $162,000 $194,400 19 $160,000 30%

SACT60 Sr. Manager, Accounting $100,000 $125,000 $150,000 37 $120,000 13%

SACT50 Manager, Accounting $88,800 $111,000 $133,200 52 $105,000 20%

SACT45 Supervisor, Accounting $74,000 $92,500 $111,000 57 $90,000 11%

SACT40 Lead Accountant $66,400 $83,000 $99,600 33 $78,000 15%

SACT30 Sr. Accountant $57,600 $72,000 $86,400 28 $70,000 31%

SACT20 Accountant $44,000 $55,000 $66,000 39 $53,000 15%

SACT10 Associate Accountant $38,400 $48,000 $57,600 13 $47,000

Communications of Project

• Lead time required for employee notifications and consultations at international locations – statutory requirement.

• Communications from Global Compensation to all U.S. employees – purely an Administrative change.

• No change in employees’ current job responsibilities, salaries or benefits.

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Implementation

• Global Implementation on one day

• Challenges

• Lessons learned

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Length of Project from Initial Design to Implementation

• 14 months

• No external consultants, a 100% in-house project and product.

• Pending items at completion of project:– Pricing for all jobs at international locations.

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Summary

• Total number of jobs before the project started: 1,715• Number of jobs deleted or consolidated: 543 • Number of jobs created: 46• Examples:

– Associate Specialist, Proposals | to complete career path – Manager, Scheduling | to complete career path

• Final count of jobs: 1,218• Number of job families reviewed: 223• Number of job families after restructure: 188• Built career progression ladders for all families.• U.S. Markets KBR priced: 5

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• Questions?

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