TomTom has 3,500 people working at over 40 locations around the world. Our workforce is hugely diverse which we believe has been a major contributor to our success.
Our passion for people is central to our culture. Work at TomTom is centred on four core values; open spirit, passion for results, innovative thinking and customer driven. Our core values are at the heart of TomTom’s talent acquisition, talent management, retention and compensation strategies.
In 2010, we implemented our talent management strategy. This strategy aims to deliver on several key objectives:
- to identify and support a ready pipeline of talent to take on management positions and critical roles in the future
- to retain employees by providing career growth and challenges for employees across the company. In terms of career development we recognise our employees have different career needs. For example 50% of our people work in technical fields and we have therefore created specialised career paths to allow for career growth in technical streams, and
- to improve employee productivity by matching people with their jobs, keeping them motivated and challenged.
As part of our talent management strategy, we introduced a Talent Board comprised of senior executives to assist in the development of succession plans and make key investment decisions. During the year, these investments resulted in the delivery of leadership development programmes for our commercial and technology teams worldwide. We also created and rolled out a new management development training approach for our first line managers to provide them with the necessary skills to manage employees effectively.
As in prior years, the use of team specific engagement surveys provided structured feedback from employees to help identify priorities and enable managers to take action to enhance employee commitment. The results provide our management teams with useful feedback to improve management action plans on topics like the organisation of work, training, remuneration and workload. These plans included the reallocation of work streams between our business units and technology teams earlier in the year.
The employee base in TomTom is diverse and geographically spread. In 2010, we made plans to increase the number of employees involved in engineering activities in Central Europe and India. We developed a global location strategy for our engineering teams worldwide. At the end of 2010, approximately 60% of employees were based outside the Netherlands (15% in the Americas, 14% in APAC and 30% in other European locations).
Our compensation programme supports our overall company strategy. It consists of a mixture of base salary and performance-related bonus, plus a long-term incentive for certain employees in mission critical roles.
The goal is to provide a fair, competitive and responsible base pay for each of our employees and to provide a consistent worldwide framework of compensation and benefits packages which also take local circumstances into account. We introduced a globally uniform job matrix for the company. The purpose of this project, known as “global grading”, was to rank jobs internally by using a fixed set of criteria so that we could compare all roles at TomTom internally and externally. By doing so, we have been able to provide cohesion between jobs located in different business units, departments or regions.
As a result we can develop more transparent compensation and benefits policies and programmes such as market competitive pay ranges, personal bonus policies and other benefits programmes such as our company car policy. Global grading will also better allow us to map out internal career paths for employees as well as an associated competency framework. In 2011, we will continue to fine tune this work, by evolving our job matrix and the associated policies and programmes.
The performance-related bonus plan, which was introduced in 2009, is a significant part of every employee’s total cash compensation. It directly links company performance to individual performance by creating a bonus pool based on the realisation of annually determined financial company targets. The available bonus pool is then allocated to eligible employees based on their individual performance. The target bonus percentages vary depending on the level of influence each role has on the execution of TomTom’s strategy. The plan fits with our vision that success for TomTom as a business should also mean success for our employees.
In addition to this annual bonus plan we provide individual, role-specific output bonuses as an incentive for certain employees for areas such as patent creation, exceptional individual recognition and referrals.
TomTom is committed to providing all our employees with competitive benefits in terms of pension, health and disability cover. Our worldwide benefit programmes therefore focus primarily in these areas. However, depending on local circumstances and practices in certain countries, some additional programmes are in place.