2015

Leveraging Employee Resource Groups to Drive ChangeDiversity & Inclusion @ Ingersoll Rand

Perez, NeddyIngersoll Rand

1/1/2015

About this Guide

In the next few pages, you have an opportunity to learn more about Ingersoll Rand and the work we are doing to drive change and create a more progressive, diverse and inclusive workplace through Employee Resource Groups (ERGs).

Ingersoll Rand is committed to fostering a culture that encourages and enables employees, vendors and customers to feel respected and valued. We are not just interested in attracting top talent, we want to make sure that we are building a sustainable pipeline of incredible people who are aligned with our core values, are passionate about the environment, and interested in being affiliated with a global premier performing company.

Our Diversity and Inclusion efforts are an important part of the company’s goals to create a Winning Culture, drive Operational Excellence and Growth.

All of our ERGs are focused on developing business skills, increasing business understanding, serving as brand ambassadors in the community and helping to uncover new market niches.

Sincerely,

Neddy Nereida (Neddy) Perez, Vice President & Chief Diversity Officer, Ingersoll Rand

Why Employee Resource Groups (ERGs)?The recruitment, development and retention of people in manufacturing is a critical part of our overall diversity, talent and workforce strategies. In the U.S. manufacturing accounts for 12.0 percent of gross domestic product (GDP). The industry employees more than 17.5 million people and in the next 10 years there will be over 3.4 million new jobs created of which approximately 1.4 million of those roles will go unfilled due to a growing talent gap and competition for talent from other business sectors.

Part of the challenge facing manufacturing is that careers in the industry have not been seen as physically or financially appealing because there is a perception that the jobs available are in dirty and are located in outdated plants. Additionally, the percentage of women and minorities that pursue degrees in the Science, Technology, Engineering and Math (STEM) is very low. Ingersoll Rand recognizes that in order to be successful and fully engage the workforce that we needed to help grow the pipeline of top talent by showcasing the manufacturing industry as a viable place to have a career where women and minorities can thrive personally and professionally at a global level.

As part of this commitment we have set in motion a number of programs and partnerships to help focus our efforts and increase awareness about career opportunities, including:

Our board of directors now has 33% female representation and there are three women on our executive leadership team.

As part of our Sustainability Goals we have made a commitment to grow our

female pipeline of women in senior role to 34 % by 2020.

Starting in 2011, with the launch of the Women’s Employee Network (WEN), we have launched seven other ERGs. We now have more than 2000 employees involved globally in ERGs.

We created an in-house Women’s Leadership Program focusing on the talent development needs of women

We have built talent acquisition, promotion and retention goals into our business sector goals; and

Established more than 12 external partnerships with a number of nonprofits and professional associations in Engineering, Finance & Accounting and Business in order to increase our brand externally with diverse talent.

We have partnered with the Manufacturing Institute which is an arm of the National Association of Manufacturers to effect change in the industry’s diversity pipeline.

Employees at the annual ERG Summit

Focus of the ERGsWith more than 2000 employees engaged in employee resource group activities and events, it is critical that the ERGs not just focus on social activities. They have been structured as an

extension of the Diversity & Inclusion Department and operate like a small business department. This structure helps provide employees with access to senior leaders and an opportunity to learn critical business skills like budget and project management as well as presentation and team management skills.

There are five areas of focus for the ERGs, these include:

Professional Development – through workshops and networking events on career development and management

Recruitment – participants often attend conferences and college events to speak to and recruit new talent to the company

Community and Sustainability Involvement – The ERGs have made a huge difference as ambassadors in the community. Some partnerships include: the Urban League Technician Certification Program, the Dragon Boat Race, Dances of India Partnership, Engineering Week and the Charlotte PRIDE Parade.

Market Connectivity – Some ERGs have participated in providing input to changes in the company’s domestic partner benefits and some have played a key role in our supplier diversity efforts.

Cross Collaboration - by working on projects and activities with employees from different business groups and functions as well as gender orientation, and/or other nationalities locally or globally

Employee Groups in Place

There are a total of seven employee resource groups at Ingersoll Rand. These groups include:

Asian Employee Resource Group (AERG) Black Employee Network (BEN) Group of Latinos (GOL) NewNet (New Employees) PRIDE (Lesbian, Gay, Bisexual &

Transgender Employees)

Women’s Employee Network (WEN) Veterans Employee Resource Group

(VERG)

All ERGs have a chair and steering committee structure which reflects the structure of a micro- business unit within the company. The structure includes:

Executive Sponsor – this is a senior member of the company’s Executive Leadership Team who is appointed by the CEO and Chief Human Resources Officer to each ERG.

Chair/Co-chair – who are selected to lead a particular ERG

Program Chair – coordinates and implements programs/activities

Finance Chair – manages ERG budgets Membership/Communications Chair-

develops and implements communications to promote activities.

Program Chair – creates and leads events for the ERG.

ERGs Make a Difference & Impact Business

Some of the projects developed and implemented by the ERGs have included:

The Black Employee Network (BEN) partnered with the Urban League of Central Carolinas in the creation of a grant for $100K to increase the number of minorities certified as HVAC Service Technicians

Hosting more than 30 events at the national and local level focusing on work-life management, career development, leadership, etc.

Participating in Habitat for Humanity, Susan Komen Foundation, United Way and a multitude of other non- profit activities

PRIDE’s Ally Program resulted in 350+ people registering to support the LBGT community.

Representing the company at national or global conferences as speakers and/or recruiters at the Society of Women in Engineering (SWE); National Society of Blacks in Engineering (NSBE); Global Conference of Women; etc.

Participating in the company’s supplier diversity initiatives to increase the number of women, minority, veteran, LGBT, disability owned businesses we buy services and products from

Thanks to the efforts of the ERGs the company introduced a back-up care program that provides emergency care for working parents with children or other family dependents.

External Business Partnerships:

Our company was founded by scientists, researchers and entrepreneurs but it is engineers that are critical part of us designing, developing and improving products and systems as well as creating new product lines. As part of our diversity efforts we have focused on four key partnerships in engineering:

Society of Women Engineers (SWE) National Society of Blacks in Engineering

(NSBE) Native American Association of Scientists

and Engineers Society of Hispanic Professionals in

Engineering (SHPE)

Talent Acquisition and Business Leaders at the Society of Hispanic Professional Engineers national conference.

We have also developed a strong relationship with external organizations that help us attract talented business leaders ranging from Finance & Accounting professionals to a broad range of other business skills. These groups include:

Ascend – enabling connections to the Pan Asian community

Association of Latino Professionals in Finance & Accounting (ALPFA)

LGBT Link – a career network within the Lesbian, Gay, Bisexual and Transgender community

National Association of Blacks in Accounting (NABA)

Out & Equal – connecting to the Lesbian, Gay, Bisexual and Transgender community

U.S. Business Leadership Network (USBLN) – providing opportunities to connect with people with disabilities.

We are constantly on the lookout for other external partnerships and opportunities that enable us to attract the best and the brightest talent possible.

Supplier Diversity and Dealerships

We are committed to not just increasing the percent of women and minorities in the industry and senior roles but we also want to see women minority entrepreneurs and business owners be successful.

In 2013, the commitment of the Diversity Council, Office of Diversity and Inclusion and Procurement organization the company hired its first supplier diversity leader.

Ingersoll rand team at the Women Business Entrepreneurial National Council (WBENC)

Within three years time, Ingersoll Rand has increased from two percent spend with diverse suppliers to six percent spend.

In addition, senior leader and past Davidson WEN Chapter sponsor, Sheila Tierney has been elected to the board of the National Minority Supplier Diversity Council (NMSDC).

Under the leadership of Jackie LaJoie, manager of Supplier Diversity, a Supplier Diversity Ambassador Program to engage the ERGs was developed. This effort led to strong partnerships with the BEN ERG in Georgia and Tennessee.

In addition, the company is now actively involved and attending a wide variety of events focused on increasing the mix of women, minority, veteran,

disability and LGBT owned businesses through partnerships like:

Women Business Entreprise National Council (WBENC)

WEConnect - global women business owners network

National Minority Supplier Development Council (NMSDC)

National Gay Lesbian Chamber of Commerce (NGLCC)

U.S. Business Leadership Network (USBLN)

U.S. Pan Asian American Chamber of Commerce (USPAACC)

Breaking New Ground

In 2012, the North Carolina Employee Resource Group Summit was created as a way to provide, not only Ingersoll Rand’s ERGs, an opportunity to learn and share best practices with each other but also became a way for vendors and client companies to do the same.

Over the course of the last two years, the event has been recognized nationally and companies from as far as California and New York have sent representatives to the conference. Averaging, 150+ attendees, the event allows employees from different industries and companies to learn from each other. It provides an opportunity for these groups to also collaborate on local community events and causes.

Volunteers from one of the ERG Summits

Steve Hagood, CIO and leaders of the U.S. Pan Asian American Chamber of Commerce.

An Employer of Choice

We are fortunate that as a company our efforts to drive organizational change have been recognized by our colleagues, vendors and even competitors for consistently outstanding results. Among our accolades are:

Dragon Boat Races – Ingersoll Rand Team

Diversity Careers Readers Choice Award for 3 years straight

Human Rights Campaign Equality Index Latina Style Top 50 Best Places to Work Military Friendly (2013, 2014 & 2016) Profiles in Diversity Journal Innovation

Honorable Mention Rostoff Diversity & Inclusion Honorable

Mention Winds of Change (Native American)

Magazine

For more information on the Employee Resources Groups and Diversity and Inclusion efforts please contact:

Nereida (Neddy) Perez, Vice President & Chief Diversity Officer, Talent & Organizational Capabilities Office Ingersoll Rand Neddy.Perez@irco.com

http://www.linkedin.com/in/neddyperez/