human management strategy - grupo argos · pdf filehuman management strategy strategy...

HUMAN MANAGEMENT

STRATEGY

Our people

Total number of Company

employees

2015

Men Wom Total

Grupo Argos 31 57 88

Argos 7968 1279 9247

Celsia 1071 358 1429

Situm 29 17 46

Compas 280 87 367

Sator 56 13 69

Total 9435 1811 11246

88

9.247

1.429

46 367

69

Total number of Grupo Argos Employees

Grupo Argos Argos Celsia Situm Compas Sator

2

Human management strategy

Strategy Structure People Technology

Performance and effective

results, balanced

and sustainable

Strategy Structure

People

Technology

Processe

s

3

We are an allied area of Collaborators andbusinesses with the goal of:

•Strengthening leadership as an organizationalcapability.•Developing a corporate culture.•Attracting, retaining, developing, mobilizing andfollowing talent – Corporate Talent.•Proposing policies and guidelines to generatefunctional and economic synergies with oursubsidiaries.•Accompanying the growth of the group withmergers and acquisitions.•Maintaining a competitive compensation model.•Ensuring an information structure that leveragesthe achievement of corporate goals.

4

Strict compliance

with the law

Decent, safe and

healthy work

Diversity and

inclusion

Respect for free

association

The Group's talent is

corporate

Competency-based

processes

Work - personal life

balancePersonal and professional

development

Flexibility, adaptability and self-

management in processes -

Innovation

How we live out our culture - DNA

People with a global vision

Innovators

With communication abilities

Incorporate the three dimensions of sustainability (economic, social, and environmental)

Multi-business thinking

Developers of people and team motivators

Diverse and inclusive

Results-oriented

That value ethics and respect for others

Characteristics of the Grupo Argos leader

5

Governance• There is a governance procedure to define the guidelines among the corporation

and its subsidiaries.

• The HR guidelines are related to the following processes:– Talent development / training and development / leadership Brand

– Work force planning / mobility and succession planning

– Employee satisfaction/ climate surveys

– Total rewards, compensation based on performance.

– Performance management process

Grupo Argos, through its talent committee design the HR guidelines that are

socialized in the HR synergy table. The Guide lines are adapted to each culture

by the HR department in each company.

The synergy tables are meetings where the HR responsible for each company

gather in order to share and talk about best practices. The meetings take place

every month and have an agenda that allows the group to achieve the

objectives.

6

GOVERNANCE

The human resources strategy and guidelines were approved byGrupo Argos’ board of directors in december 18th 2013; in order toalign and provide our leaders a framework, so they would be able tobe part of the Human processes and make decisions according tothem.

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CREATING AN ORGANIZATIONAL

CULTURE

•

Organizational CultureWe rely on Richard Barret's methodology to define and strengthen a corporateculture of the Grupo.

2014: the certification of 5 collaborators was completed and the Celsiaassessment was begun.

2016: the assessment will be conducted in Grupo Argos and its subsidiaries.

9

Culture and work environment

conversations

With the goal of strengthening

corporate culture and building a

better workplace together, Grupo

Argos organizes Culture and Work

Environment Conversations every

two months, where everyone has the

opportunity to express their opinions,

suggest improvements, and adopt

commitment to fellowship.

10

TALENT MANAGEMENT

•

12

Measure

mentDiagnosis

Korn Ferry Supplier

ManagementAssessment2015 - 2016

Union Consulting Supplier

Vía Edge Assessment

2015

360º Assessment

2014

Benzinger Assessment

2014

Current Competency Adjustment

Potential

Specific DepthGeneralist Amplitude

Balanced Balance

Left Basal

Right Basal

Left Front Right Front

Talent Development Strategy

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9-Box Grid

Mobility

Prestige

Development Plan

Unified

Korn Ferry Method

2016

Decision making

Training

Currently ready

Ready with developments

Ready in the long term

Leadership

Well located

Talent Leaders Matrix

Readiness

Career Plan Succession Plan

Talent Management Results

Feedback

Variables that feed

talent management

BE

- Inner Traveler experience

- Styles of thinking - Individual feedback based on each measurement

DO

- Identify Potential

- Performance management (SuccessFactors)

KNOW

-Identification of needs for training and development (SuccessFactors)

- Virtual training results

Focus of talent management

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Leadership

Teamwork

Innovation

Responsible and Sustainable

Achievement

SELECTION

- We evaluate the adjustment of external and internal candidates to corporate competencies by applying tests, assessments, interviews, and expecting a minimal adjustment of 80%

- For promotions and changes of position within the Company the same measurement processed is used.

TRAINING

- From the adjustment measurement of the competencies, stems an individual development plan that is conducted by the leader with support from the Talent area

- The company provides continuous training on competencies and focuses on one in specific each year, depending on the Organization at that moment.

PERFORMANCE

-Each year, the adjustment of each collaborator to the behaviors that describe competencies is evaluated to identify gaps and agree on plans of action to decrease them

In 2014 and 2015, we worked towards the development of the leadership competency

In 2016, the plan is to develop a competency of Innovation.

Corporate

competencies

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Identification of Potential

The most important factor for the consolidation and permanence of

Companies is the planning of the generational transition process in

critical and strategic positions. Because of this, we seek:

•To identify styles of leadership, thinking, and of potential through the learningabilities of the leaders in the organization.

•Establish career plans, succession, and development.

•Identify critical positions of different companies.

• In 2015, 67% of the population participated in the identification of potential, preferences, and amount of recruitment.

• The goal is to reach 364 leaders in 2016.• Korn ferry is our ally.

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Concepts

In-depth Potential Functional Expert - Can ascend in the functional area

Balanced Potential: Has potential in multiple functional areas.

Ample Potential: Has ample potential and can move around in different areas of the companies.

Learning Agility

• Responds to diverse, intense, varied, and adverse tasks.

• Demonstrates superior performance in the roles that are assigned to him or her

• Learns new competencies for his or her performance with enthusiasm

Concepts

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• Recognized for technical, functional, and

leadership experience.

• Trustworthy, even during difficult times

• Consistent performance

• Good developer of subordinates

• Could be difficult to replace

• Works independently, with little or no

supervision

• Learns new technologies and/or functions with ease

• Has a good problem-solving capacity

• Thinks strategically

• Changes behaviors with ease

• Has ample interests

• Usually performs well under any circumstance

• Can deal with ambiguity and complexity

HIGH PERFORMANCE IN CURRENT POSITION DOESN'T NECESSARILY

INDICATE POTENTIAL TO OCCUPY FUTURE LEADERSHIP POSITIONS.

"Learning agility allows us to differentiate between high potential and high

professionals"

HIGH PROFESSIONALS HIGH POTENTIAL

Concepts

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Location of Talent

Raw potential

Have potential, but the fulfillment of this

potential is in the future

Could be in the wrong position

Inferior performance

Doesn't present the desired results

Doesn't adapt to new situations

Inconsistent performance

Has potential to do more, but hasn't

demonstrated it yet

Could be in the wrong position or

function

High Potential Generalist

The best in his or her role

Ability to take on important tasks in new

areas

Can move laterally in any situation

Future Potential

Satisfies and can exceed expectations

Likes to approach new challenges

Points his or her career in different

directions

Solid Professional

Meets expectations and occasionally

exceeds them

Doesn't adapt to new situations

Has a professional interest for a specific

subject

Key performance

Meets the expectations of the position

Adapts to new situations

Can move up a position vertically or

laterally within the organization

High Professional

Specialist

Exceptional results

High performance within a defined

area

Can ascend within the functional /

technical area

Balanced High Professional

Exceptional results

Adapts to new situations

Can ascend in the functional /

technical or general managementP

E

R

F

O

R

M

A

N

C

E

POTENTIAL

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20

Measuring Talent

EVALUATED WITH VIA EDGE KORN FERRY

Celsia Grupo Argos Argos Odinsa

Total evaluated leaders

Learning Agility/Potential 130 50 21 4

Goal 364 leaders 130 58 141 35

% 100 86 15 11

EVALUATED WITH MANAGEMENT ASSESSMENT KORN FERRY

Celsia Grupo Argos Argos Odinsa

Total evaluated leaders

Current Competencies130 20 21 4

Goal 364 leaders 130 58 141 35

% 100 34 15 11

CORPORATE DEVELOPMENT

PROGRAMS

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Training and Development• Technical training: Technical and managerial updates • Corporate training: (Union Consulting, Prestige)

Development of competencies

Development of leadership ability

Bilingualism

Corporate programs: Ethics – University of the Andes;

Leadership for Equality – University of California Berkeley.

• Virtual training (SF) • International scholarship holders

64 hours of training per person in 2014.

81 hours of training per person in 2015.

Investment in corporate training and scholars in

2015 = $2,832 million COP.

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Corporate Programs

ETHICAL DELIBERATIONStrategic ally University of the Andes

Strengthen our corporate culture based on ethics.

Raise awareness about the importance of ethics in

organizations.

Provide clear and easy to use tools that enable our

employees to make ethical decisions.

Generate understanding of the different areas of

the company that ensure ethical actions.

Declare unacceptable behaviors in our culture as

holding.

12 hour program (8 on-site + 4 virtual), employees

up to level 3 from all companies and geographies.

LEADERSHIP FOR EQUALITYStrategic ally University of California, Berkeley

Develop and strengthen managerial abilities in women.

Understand the impacts of gender on power and

leadership.

Leverage and strengthen the feminine view to resolve

personal, organizational and global problems.

Provide tools for conciliation and negotiation, using

feminine influence.

2 coaching sessions to accompany the development of

women.

A talent agreement with a permanence clause was

signed.

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Corporate Programs

We have preliminarily identified the following content areas. The duration of the program will be

determined by the number of topics that can be covered in it. The definitive content will be adjusted,

prioritized and agreed upon during the program's development and design phase by a design

committee.

We have 50 places for Mid-Management employees from al subsidiaries.

Strategy Execution Strategy Finance

Management Growth Leadership

LeadershipThrough

Organizational Change

Global thinking High performance global teams

Integration, creation, synergies and silo

tours

HARVARD PROGRAM: Content Areas

LIDERARGOS

Why the liderargos model?− Create a brand of liderargos that differentiates us. It is a declaration of a shared vision

regarding what is expected from its Leaders.

− Leaders are the primary responsible for attracting, retaining, developing, inspiring, and

motivating key talent in the organization throughout their different stages.

− LEADERSHIP as an organizational capability Vs. Personal Leaders.

− MOBILITY: allows the Grupo to have an inventory of leaders to perform timely and effective

movements.

− COMPREHENSIVE MANAGEMENT: integrates with other related Human management

processes (Performance, Selection, promotions, etc).

Leadership management (5 dimensions):

− STRATEGY (Business leadership): create a strategic context and innovate.

− PERFORMER (Results leadership): implement actions

− TALENT MANAGER (People leadership): commits people

− TALENT DEVELOPER (People leadership): invests in people

− INTERNAL DOMAIN (Personal leadership): self-awareness and develops people

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Program data

• In 2014 , 94% of the total population of leaders participated in the program Liderargos (styles of thinking and workshop evaluation)

• In 2015 , 57% of the population of leaders (management ) participated in the continuation of the Liderargos program focused on providing tools for feedback and decision making.

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27

Bilingual Programs

Grupo Argos S. A. is a company that is constantly opening itself to the world. For thatreason the company incentives their employees to learn a second language.

Since 2013 the company has developed with “FNL Language Solutions” the followingprograms:

•Face-to-face classes: offers face-to-face English or German classes in different citiesacross Colombia (Medellín, Barranquilla, Bogotá) with two (2) sessions of an hour and ahalf (1.5 hours) each, for a total of 3 hours weekly. The focus is General English, BusinessEnglish and Specialized workshops for higher levels. The students can study at theirconvenient time on their working hours.

•Virtual classes: For those participants that can not take face-to-face classes we offer avirtual proposal that allows them to program classes with their assigned teacher throughour virtual platform, following a structured program.

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Bilingual Programs

Year 2015 Units Grupo Situm Sator IEA Tekia

Number of employees covered by the program

Numbers 50 29 19 23 2

Percentage of employees covered by the program

Percentage 56.8% 63% 27.5% 46.3% 0.3%

% employees by level 2015

Level Total

Basic 52.85%

Intermediate 28.46%

Advanced 18.70%

Grand Total 100.00%

52,85%

28,46%

18,70%

Level of Bilingualism - 2015

Basic

Intermediate

Advanced

In 2015, Grupo Argos continues to investin its employee to improve the level ofbilingualism of the company.

This is why 123 employees of GruposArgos and its subsidiaries Situm, SatorInterejecutiva de Aviación and Tekiacontinued the program that was started in2013, thus achieving an investment of 417million in 2015 and a total of 7,566 hoursof training.

E- Learning Program

In 2014, the Company launched success Factors for managing

virtual communities, courses, libraries, forums, chats, and

students.

In 2015 , Successfactors remains an element of great value in

implementing our strategy of virtual training, because it integrates

many of the training in a controlled environment and in a friendly

interface that allows you to record the frequency of students'

income to the platform, to track the progress and results.

It has also allowed many employees located in remote locations

can access the corporate and technical training of Grupo Argos.

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E- Learning Program

Code of conduct

Security and health at work

Classification of training programsThe Grupo Argos training programs are differentiated in the following ways:•Corporate training plans: Seek to strengthen the corporate culture and thedevelopment of competencies. They are programs with a transversal impacton all the companies. Ex. LIDERARGOS•Technical training programs: focused on leveraging technical capabilitiesand are related to the needs of the company.•National and international sponsorships for postgraduate studies,Master's programs, and Doctoral programs. In 2015, 2 people benefitedfrom international programs and 11 from national programs.•Training programs for upper level management , which are short refreshercourses for collaborators that have a high potential.

Training and development

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. 81

Training hours per employee

$22,282,551

Cost per employee

$759,521,601

Investment in International programs

2015 Data Grupo Argos

$1,960,864,488

Investment in Training Programs

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Leadership Program

for equality

General premises

• Program with a global focus

• Modular design

• Work tables and panels of experts

• Language skills does not exclude for the selection of participants.

• Completion of each module in different geographic locations (USA, Colombia).

• Attendants: 55 females, identified as having high potential, with good performance, with people under their charge and /or in succession chains.

• 2 training modules / 10 days

• Duration: from 12 to 18 months. Begins August 2015, second session April 2016

• Strategic Ally: University of California, Berkeley

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Agenda

35

Monday Tuesday Wednesday Thursday Friday

CORPORATE ETHICS

PROGRAM

General premises

• Program with a global focus to develop in 2015, 2016, and 2017.

• Case methodology

• Language skills does not exclude for the selection of participants.

• Completion in different geographical locations (USA, Colombia, Caribbean)

• Attendants: all holding employees and subsidiaries

• 1 training day per employee

• Strategic Ally: Universidad de los Andes or the INALDE, with their respective international

allies.

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TALENT DEVELOPMENT AND

MOBILITY

External academic committe -sponsorshipsThe company sponsors special education programs to employees such as foreign languages, internationalgraduate programs (Bachelors, Masters, Doctorates, etc.) or international formal programs with a duration ofat least one year.

Grupo Argos counts with an external committee that validates and guides the candidates to assure they willhave a successful admission process at the universities, and an excellent adaptation to an internationalacademic world.

The committee responsibilities are: Assigns the sponsorship percentage, guides the program and universityelection, aligns organizational needs with the candidate needs, and analyzes the candidate´s level ofadaptation in order to prevent a high cultural shock.

In 2013, the committee interviewed 15 employees from Grupo Argos and its subsidiaries. It chose 6, 2 ofthem from Grupo Argos. This meetings will take place every year. On 2014, two employees chosen by thiscommittee started their studies in United States and France.

Some of the committee advice are

•Grupo Argos should direct the grants to social, sustainability, environmental and engineering programsaccording to the holding and the subsidiaries' needs.

•High potentials and high professionals are the main target to obtain the grants

•The companies must prepare the candidates in an integral way

•The companies should have clarity of the career path and succession plan of the candidates.

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Scholarships aimed towards topics of interest of Group Argos and individuals that have been identified as high potential or high performing

Placing an emphasis on social, environmental, humanist, and engineering topics, according the business specialties of the Grupo Argos

Prepare candidates in a comprehensive manner

Strengthen fluency in two languages

Advisor to candidates in the selection of universities, making sure they are excellent

Have a clear development and candidate succession plan

Recommendations from the

Academic Committee

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Pablo Emilio Arroyave Fernandez

MBA – NYU

2008 - Presidency Assistant

2015 - Mergers and Acquisitions Manager - Grupo Argos

Alejandro Zuluaga Sierra

MBA – Saint Louis University

2008 - Director of Investments and Debt

2015 - Corporate Finance Manager - Grupo Argos

Maria Clara Aristizabal Restrepo

MBA – NYU


2015 - Corporate Strategy Manager - Grupo Argos

Adriana Mejía Velez

MS Human Resources Management and Services -Temple University

2010 - Director of Corporate Training

2015 - GH and Administration Manager - Grupo Argos

Andres Ramirez Restrepo

Global MBA - EADA España and CENTRUM of Perú

2010 - Director of International Commerce

2015 - Commercial Director - Sator

Tulio Eduardo Florez Alzate

LLM Master in International Law- Boston University

2010 - Senior Lawyer

2014 - Senior Lawyer - Grupo Argos

Currently retired

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Sponsorships Grupo Argos

Francisco Humberto Tobon Serna

Master's in Ecosystem Restoration – Universidad de Alcalá

2010 - Environmental Analyst

2015 - Environmental, Legal, and Sustainability Leader -Sator

Ricardo Andres Sierra Fernandez

Global Executive MBA – Trium - NYU

2011 - Vice president of Corporate Finance

2015 – CEO - Celsia

Tomas Uribe Montoya

MBA - Boston College


2015 - Director of Mergers and Acquisitions - Grupo Argos

David Ignacio Gaviria Garcia

Master's in Real Estate - American University

2012 - Director of Real Estate Investments

2015 - Property Manager - Situm

Maria Camila Villegas Piedrahita

Master of Arts in Sustainable International Development – Brandeis University

2012 - Director of Sustainability

2015 - Foundation Director - Grupo Argos

Margarita Maria Gonzalez Lema

MSc Business Innovation with Entrepreneurship and Innovation Management Program - Birkbeck -University of London

2012 - Senior Analyst of Financial Planning

2015 -Director of Sustainability - Grupo Argos

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Nicolas Valencia

MBA – EDHEC Business School

2015 – Presidency Assistant

2016 - Director of Treasury and Financial Planning

Vivian Garcés

Master in Human Resources – NYU

2014 - Director of Organizational Development

Currently studying

Jose Erlin Guerrero

PHD Wood Processing – Oregon University

2014 - Forester Coordinator

Currently studying


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PERFORMANCE

MANAGEMENT

With the performance administration model of SuccessFactors,

each leader was able to evaluate people under his or her charge in

the tool, according to the corporate competencies and objectives

of the variable compensation table. It starts with the self-

assessment completed in the first instance and closing with an

effective conversation to agree on the final information.

They agreed on a plan for development to apply in 2016 as well

that they can continuously monitor.

Management 2014

96% average coverage

Performance management 2015

45

Performance management campaign

46

“Your performance is a key factor in the management of human talent in Grupo Argos”

“This week everything is

allowed”

Hear - Talk - Teach -Guide - Motivate-

Learn

Performance management form

47

Strategic performance management 2015.Melisa Gutierrez Torres

GENERAL GOALS

Some of our goals for 2016

Performance management: more than 96% of employees

with an effective conversation in a year. In

2016 the goal is 100%

Leadership: Coverage of 364 leaders of Argos , Celsia and Grupo Argos with mapping

talent, development plan and succession plan .

Employ satisfaction: Implement the plan of action

resulting from the measurement in 2015 to

2017 move to the scale of excellence.

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ACADEMIC ALLIANCES

Ceb corporate leadership council

CEB is a leading member-based advisory web site which

combines the best practices of thousands of member

companies with advanced research methodologies and human

capital analytics. CEB equip senior leaders and their teams with

insight and actionable solutions to transform operations.

CEB offers comprehensive data analysis, research and advisory

services that align to executive leadership roles and empower

companies to focus efforts.

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Knowledge center

The Knowledge Center services are:

•Actualization programs: courses, workshops, and other training programs in cross topics for the top and middle managers of the companies related to Knowledge Center.

•Synergies: Activities in order to optimize, take advantage of the experience and knowledge in common topics, share practices, work together, do knowledge management, and referred processes. One of its tools are the synergy workshops, currently there are 15 of them.

•Development Center: its purpose is to support the development of competencies of the high potential executives to close the existing gaps in order to be able to promote them to higher positions.

•It is based on alliances for studying languages in different institutes in Colombia and abroad.

•Also, It manages alliances for scholarships for studies and masters abroad.

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WORK LIFE BALANCE

Our Philosophy

Aligned with our Corporate Strategy and ourOrganizational culture, our commitment is to createan environment that attracts, motivates, develops,and retains the best human talent through attractiveprograms that increase the long-term quality of life,balance work and family life, and that contribute tobetter performance and better results for theorganization.

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Objective and Scope

An activities and communication strategy that impacts the organizational

culture of Grupo Argos and its companies was implemented with the

goal of promoting good work habits and healthy lifestyles internally. This

harmonizes the personal environment with the work environment.

The campaign connects many activities for quality of life. The campaign

is activated at your pace. The name of the campaign is : Activa tu ritmo

13

It covers 100% of the population

55

How have we activated our

employees paceHEALTH PROMOTION AND PREVENTION

•SURA Medical check-ups

•Health week

•Active pauses

•Talks with special guests

•Ergonomic support in their job position and active pauses

SPORTS AND RECREATION

•Yoga

•Ecological Walks -

•Marathons

•Dance

•Bodytech 60% Benefit (Fondeargos agreement)

•We conduct medical/sports and nutrition evaluations

•Ciclovía meet

HEALTHY NUTRITION

•Breakfast on Fridays

•Fruit 2 mornings a week

•Support form a dietitian

WORK/PERSONAL LIFE BALANCE

•Shorter work schedule on Fridays

•Flexible work schedules and different

work modes

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Work life balance

- Activa tu ritmo.

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During 2015, the Company offered different

activities such as:

• Yoga classes.

• Ecological walks

• Ergonomic chairs

• Reflexology sessions

• Cardiac risk evaluations

• Nutrition conferences

Work life balance

58

• We celebrate birthdays

• We were part of the women´s race

• Valentines´celebration

• Recreational vacations for our employees´children

• Halloween celebration

Work life balance

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Flexible benefits Project

Grupo Argos begun the flexible benefits

Project during the years 2014 and 2015,

Mercer Marsh is our consultant.

The main objectives are:

•Identify the level of use and perception of the

current benefits.

•Innovate each year with different benefits

that suit our employees' needs.

•Take into account the generational

differences

•Build a great place to work

Benchmarkbenefits

Populationanalysis

Investmentanalysis

Innervaluation and

perception

60

2015 Achievements

Benefits:•A plan of extralegal benefits were defined for each Grupo Argos Company.

•24 credits were distributed in housing, education, calamity, and special areas. Manager'sspecial credits are focused on a vehicle- 90mm without deductions in 4 years) and housingFor existing managers, there is also a club shares benefit.

•Grupo Argos invests 3% of total annual compensations in vehicle credits, 12% in housingcredits, and 10% in credits to cover calamities.

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2015 Achievements

62

Holistic Health:• Executive medical check-ups were conducted with SURA for 40 people in levels 0, 1, 2

and this year we inlcuded level 3.

• Vaccinations were also applied to protect 80% of people in the organization againstinfluenza.

• Active pauses were conducted with Comfama in all work locations and with 100% ofthe population.

2015 Achievements

63

Additional services and benefits:

• 60% subsidy each semester or year for thegym.

• "Fonderargos" company employee funds,which has credit lines in addition to thebenefits and commercial agreements forhealth plans, training, technology, etc.

• The "Fomente" Mutual Investment Fund giveseach person 50 cents for each peso that issaved, up to COP 60,000.

• Monthly Sodexo food vouchers for COP138,000.

• Flexible work schedules during special timesof the year. During Christmas, the workscheduled is reduced for family integration.

MEASUREMENT OF

EMPLOYEE SATISFACTION

2015

The Trust inspired by

leaders and the

company

The Camaraderie present in the work

group

The Pride produced by

the work, the team, and

the company.

The Great Place to Work® Institute has developed and validated at the global level a

model for the understanding and comprehension of the work environment on three

planes whose pillars are:

Great Place to Work model

65

• Information

• Accessibility

• Coordination

• Delegation

• Vision

• Reliability

• Honesty

• Development

• Recognition

• Participation

• Work environment

• Personal life

• Pay equity

• Fair treatment

• Absence of

favoritism

• Justice in the

treatment of people

• Ability to appeal

• Fraternity

• Hospitality of the

place

• Hospitality of the

people

• Sense of team

• Pride in the work

• Pride in the team

• Pride in the

company

Credibility Respect Fairness Camaraderie Pride

Trust

Great Place to Work® Model©

Great Place to Work® Institute, Inc. 2015. All Rights Reserved

66

Unit Target

Population

Surveys

ReceivedParticipation

Margin of

Error

Presidency 10 8 80.0% 7.7%

Administrative Vice Presidency 29 29 100.0% 0.0%

Corporate Affairs Vice Presidency 14 14 100.0% 0.0%

Corporate Finance Vice Presidency 42 38 90.5% 1.6%

Total 95 89 93.7% 0.7%

Level of reliability 95%

Threshold of reliability (employees) 6

Date of Implementation November

2015

Means of Implementation Internet

Data Sheet

67

• Percentage of employees who have a favorable opinion of:

Their remuneration or,

The development of the company or,

The benefits offered by the company

Valoración

100% 0% Excelente

Indicator of the Company - Employee Link

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Excellent

Assessment of Dimensions

90% 8% Alta

90% 8% Muy alta

83% 13% Alta

92% 7% Muy alta

95% 5% Muy alta

93% 7% Alta

Credibility

Respect

Fairness

Camaraderie

Pride

General

Appreciation

Dimension Assessment

69

High

High

High

High

Very High

Very High

Assessment of DimensionsGreat Place to Work® Trust Index© Assessment

Information High

Accessibility Medium (+)

Coordination High

Delegation Medium (+)

Vision High

Reliability Very High

Honesty High

Development Excellent

Recognition High

Participation High

Work environment Very High

Personal life Excellent

Pay equity Very High

Fair treatment High

Absence of favoritism High

Justice in the treatment of people Medium (+)

Ability to appeal High

Fraternity Very High

Hospitality of the place Excellent

Hospitality of the people Very High

Sense of team High

Pride in personal work High

Pride in the team High

Pride in the company Excellent

General Appreciation High

Assessment Summary Amount

Excellent 4

Very High 5

High 13

Medium (+) 3

Medium (-) 0

Low 0

Very Low 0

Critical 0

Work Environment Index (WEI) 88.5

Breach of Excellence 6.5

Work Environment Assessment Very outstanding

70

• Highlights: Information, Coordination, Vision, Integrity, Respect, Equality,

Absence of Favoritism, Ability to Appeal, Camaraderie, Pride and General

Appreciation.

• Aspects below market level: None

• Unusual consensus (relative strengths) Development and Personal Life.

• Unusual questions (relative weaknesses): Accessibility, Competence and

Justice in Treatment

• Unusual indecisions: None

• Work Environment Index: 88.5 (Very Outstanding)

• Objective Work Environment Index: 91.7 (Very Outstanding)

• Priorities: Fair treatment, Absence of favoritism, Sense of team and

Information.

Summary of Results

71

STRUCTURE AND

COMPENSATION

Job scale

CEO

Executive

Top Management

Junior Management

Specialists

Other Employees

All jobs positions in Grupo Argos and its subsidiaries are graded usingthe HayGroup Methodology.

Grade 19+Executive

Grades 14 to 18Executive

Grades 12 to 13Managers

Grades 8 to 11Specialists

Grades 2 to 7Operational

Grade 19+Executive

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74

Collaborators by Gender

64.8% of collaborators are females. 61.15% of females in management levels, 55,56%of them are in top management and 66.67% are in junior management. There are nofemales in the executive level. In the Board of Directors there are 7 active members, 2of which are females. Gender Diversity and Equality policies have been designed tomaterialize the inclusion philosophy throughout the entire Organization. The companyhas a selection process based on competencies that is adjusted to the position,without considering gender, origin, race, age, religious affiliation, etc.

1

4

7 6

9

4

0 0

14 14

24

5

CEO EXECUTIVE JUNIORMANAGEMENT

OTHEREMPLOYEES

SPECIALLIST TOPMANAGEMENT

M F

64,8%

35,2%

75

Compensation – Structure

We have an adequate structure that allows us to reach the established organizational goals.Throughout the methodology is a description and assessment of positions, that ensures the correct description of profiles, competencies, and positions and that they are aligned with the policies and strategies of the company. It also ensures that salaries are correctly assigned according to the positions and the points obtained in the assessment process.

The compensation process stems from the correct description of job positions, which includes the basic information of its functions and responsibilities.

Description of position – Hay Methodology

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Assessment of job positions

Level Grade From To

Grade 23 3.021 3.580

Grade 22 2.551 3.020

Grade 21 2.141 2.550

Grade 20 1.801 2.140

Grade 19 1.520 1.800

Grade 18 1.300 1.519

Grade 17 1.056 1.299

Grade 16 901 1.055

Grade 15 749 900

Grade 14 624 748

Grade 13 519 623

Grade 12 442 518

Grade 11 365 441

Grade 10 311 364

Grade 9 265 310

Grade 8 213 264

Grade 7 179 212

Grade 6 150 178

Grade 5 125 149

Grade 4 104 124

Grade 3 85 103

Grade 2 70 84

Hay Points

CEO/ Executive

Top Management

Junior Management

Specialists

Others employees

Hay grade pointsThe job position assessment is based oninternational standards, it uses a point systemthat takes into account the followingcomponents of the job position:

• Knowledge, experience, and capabilities:

Amplitude and depth of knowledgeGeneral abilityHuman Relations

• Problem-solving:

Reference framework /environmentDemands/Complexity of problems

• Responsibility, freedom to act and magnitude:

Freedom to actMagnitudeImpact

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Compensation

Salary curves associated with each position are made taking into account Mercer's market survey,which ensures the competitiveness of the compensation in the market as a tool for attracting andretaining people.

Once the score from the assessment of the position has been defined, this score is associated with thecorresponding level on the salary scale. This way the salary assignment is always an objective andmethodological process.

Market Vs Grupo Argos

15

45

75

105

135

165

195

225

255

285

315

345

375

405

435

465

495

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Internal Equity

ILA MINIMO MEDIO MAXIMO

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Total CompensationThrough a just compensation based on national and international reference points, we seek to retain and attract highly qualified human capital.

The Variable Compensation System established Corporate and Area/Business objectives seeking to obtain results in the present and sustainable results for the organization in the future.

The participation of this component within the total compensation will beproportional to the level of the job position in the structure.

Since 2015 all levels of the company have participation in the Premium Organizational Results .

60% 60% 63% 63%

77% 77%

92% 92%100%

94%

25% 25%24% 24%

23% 23%

8% 8% 6%15% 15% 13% 13%

Annual Labour icome

Short term variable compensation system

Long term variable compensation system

79

60%Consolidated

EBITDA

40%

Area/Business SHORT TERM

2015 : Certification in the Code of Conduct.

2013

40%Consolidated

EBITDA

20%Budget Execution

40%

Area/Business

50%

Consolidated EBITDA50%

Consolidated Net Profit

40%

Area/Business

LONG TERM

2014 2015

GATEWAY

50%Consolidated

EBITDA

10% Budget Execution

Variable Compensation System

Up to 5% of Grupo Argos, S.A. consolidated net profit is paid

80

2015 Mercer Salary Survey

2015 TRS COLOMBIA PARTICIPANT LIST

CLIENT SOLUTIONS TEAM

In 2015 we acquired, through Mercer, a salary survey about employee compensationtrends in Latin America for all company levels. According to these best practices thecompany has a total compensation package (guaranteed compensation, variablecompensation and benefits) with an important component of short and long-termvariable incentives.

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2015 Indicators

• Accompanying the succession process of the President of Celsia

• Remuneration policy for Senior Management and VRS Policy

• Definitions of Real Estate Portfolio CC + GA

• Implementation of New Country Code

• Compliance with the Area/Business board of the President of Situm and Sator

• Structure of the "Infrastructure/Concessions" business unit as an additional pillar at Grupo Argos

• Definitions of Real Estate Portfolio CC + GA

• Accompanying the new redefinition of the strategy at Celsia

• Developing the capital structure model for GA

• Asset Divestment Strategy (portfolio optimization model)

• Continuous improvement of theIntegrated Report and DJSI process

• Implementation of New Country Code

• Comprehensive system for Human Rightspolicy

• Management system for reputationalrisks

• Establishing succession policies in light of the country code guidelines

• Implementing the corporate information security strategy

• Presentation of Tekia's environmental strategy

• Remuneration policy for Senior Management and VRS Policy

• Compliance with the board of IEA's management

• Grupo Argos Presidency

• VP Corporate Finance • VP Corporate Matters • Administrative VP

• 2015-2017 Management Plan for the urban planning business Definition of flow of revenues, divestments and main expenditures of the company during this time.

• Technical structure of the Carrera 65 construction project.

• Leading the process of redefining the Barú master plan according to the guidelines of the SITUM Board of Directors.

• Implementation of the Environmental Management System.

• Delivery of the Environmental Impact Study of the mine for the TermoBijao Project.

• Compliance with variable remunerations system indicators Managers.

• Evaluation study of exports to Panama.

• Accident Rates

• Situm Presidency • Sator Presidency

HEALTH AND SAFETY IN

THE WORKPLACE.

Sustainability Policy

Grupo Argos is a conglomerate of sustainable infrastructure investments committed togenerating long-term value. For this reason, the management of its investments aims forsustainability and competitiveness, while always keepingintegrity as the inspiring principle.

83

84

Occupational Health and Safety Policy Framework

The legal framework that regulates Occupational Health and Safety in Colombiaforces company to have an Occupational Health and Safety Management System(OHSMS), which consists in the development of a logical process in stages basedon a constant improvement, and which includes the improvement policy,organization, planning, implementation, evaluation, audit and actions with theaim of anticipating, recognizing, assessing and controlling the risks that may affectthe occupational health and safety.

During 2015, Grupo Argos has adopted this management model that has led thecompany to conducting the following processes:

PlanningDoingVerifyingActing

Podríamos agregar alguna información de riesgos ?

85

Planning

Establishing the activities and work plan to obtain results according to legalrequirements and the company's policies.

Information Policies and Objectives Initial Evaluation Resources Communication and Participation

Annual Work Plan Emergency Plan

Identification of hazards, evaluation and assessment of risks

86

Doing

Executing the Work Plan

Management System Sub-Programs

Documentation Contractor and Supplier Management

87

Verifying

Monitoring and measuring the system in terms of the policies, objectives andrequirements of the standards and reporting the results.

Audit of the Occupational

Health and Safety System

Revision by Directors

Safety Inspections Management Indicators

88

Acting

Taking action to constantly improve the performance of the system

Preventive, Corrective, and Improvement Actions

Investigation of Occupational Accidents and Diseases Change Management

89

Occupational Health and Safety Management

System

In order to monitor the system, we have a platform that enables us to record thework that has been carried out, leave evidence and trace action plans. This toolcan be found on Share Point.

90

Policy of the Occupational Health and Safety Management System

GRUPO ARGOS S.A. is a company dedicated to the development of sustainableinvestments in infrastructure and committed to protecting and promoting the health of itshuman capital, ensuring their integrity, within the framework of a culture of preventionthat promotes self-care, the intervention of physical, biomechanical, occupational-psychological, transit, biological, chemical, and safety condition risks; and theimplementation and maintenance of an Occupational Health and Safety ManagementSystem.

All levels of management assume the responsibility of promoting a healthy and safe workenvironment, in compliance with applicable laws, involving the relevant stakeholders inthe Occupational Health and Safety Management System, and allocating the necessaryhuman, technical, physical and financial resources.

All employees, contractors and temporary workers will be responsible for complying withsafety standards and procedures in order to carry out safe and productive work. They willalso be responsible for reporting in a timely manner all those conditions that may causeconsequences and contingencies for the employees and the company.

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Objectives of the Occupational Health and Safety Management System

OBJECTIVE INDICATOR

1. To fulfill the Annual Work Plan

established for the OHSMS

Fulfillment of the annual work plan

2. Reducing by 5% the rating of

the risks with the highest

assessment

Amount of risks with the highest

assessment of the current year vs.

previous year

3. Increasing the rating of the

progress of the Initial Evaluation

process to 70%.

Results of the Initial Evaluation of the

current year vs. previous year

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Planning

93

Initial Evaluation of May 20th, 2015

CHAPTER WEIGHING RATING PROGRESS

Occupational Health and Safety Policy 2.5% 1.74% 70.00%

Occupational Health and Safety Management

System Organization24.0% 13.80% 57.59%

Planning 33.1% 3.88% 11.75%

Implementation 28.9% 20.33% 70.29%

Audit and review by Senior Management 8.3% 2.48% 30.00%

Improvement 2.5% 0.00% 0.00%

Final Provisions 0.8% 0.00% 0.00%

TOTALS 42.23%

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Initial Evaluation May 2015

70,00%

57,59%

11,75%

70,29%

30,00%

0,00%

0,00%

POLÍTICA EN SST

ORGANIZACIÓN DELSG-SST

PLANIFICACIÓN

APLICACIÓNAUDITORIA Y

REVISIÓN DE LAALTA DIRECCIÓN

MEJORAMIENTO

DISPOSICIONESFINALES

OHSMS PROGRESS

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Action Plan Resulting from the Initial Evaluation

CRITERIA ACTIVITYPERSON IN

CHARGEPRIORITY

PO

LIC

Y A

ND

OB

JE

CT

IVE

S

PO

LIC

Y A

ND

OB

JE

CT

IVE

S

IT HAS A DEFINED, DOCUMENTED, SIGNED AND UPDATED OHS

POLICY WHICH IS APPROPRIATE AND COVERS ALL WORKERS

HAVE THE POLICY SIGNED AND

DISSEMINATED THROUGH THE

AXIS AND THE VIRTUAL

BILLBOARDS

MONICA

OSPINO

THE OHS OBJECTIVES ARE DEFINED, DOCUMENTED,

COMMUNICATED, SIGNED AND UPDATED; THEY ARE MEASURABLE

AND QUANTIFIABLE ACCORDING TO THE DEFINED PRIORITIES,

THEY ARE ALIGNED WITH THE OHS POLICY AND THE WORK PLAN,

THEY REFLECT THE COMMITMENT TO IDENTIFYING HAZARDS,

EVALUATING AND ASSESSING RISKS, ESTABLISHING CONTROLS

TO PROTECT THE HEALTH OF WORKERS THROUGH CONSTANT

IMPROVEMENT AND COMPLAINCE WITH REGULATIONS

HAVE THE OHSMS OBJECTIVES

SIGNED AND COMMUNICATED,

AND DISSEMINATED THROUGH

THE AXIS AND VIRTUAL

BILLBOARDS

MONICA

OSPINO

THE POLICY IS DISSEMINATED AT ALL LEVELS OF THE COMPANY

AND AVAILABLE AT THE WORK PLACES

IT WILL BE DISSEMINATED

THROUGH THE AXIS AND

VIRTUAL BILLBOARDS AND WILL

BE PRESENTED AT THE

ORIENTATION THROUGH THE

SUCCESS FACTORS TOOL

MONICA

OSPINO

We designed an action plan where we prioritized the actions and assigned responsibilities and resources. The plan was socialized at the highest level and is available on Share Point.

This is an example:

96

Identification of hazards, evaluation and assessment of risks

At Grupo Argos we assessed physical, safety condition, biomechanical, psycho-social, chemical, and biological risks and the risk level was determined to be ACCEPTABLE

Risk Level Meaning Explanation

I UnacceptableCritical situation, urgent correction

II

Unacceptable or acceptable with specific controls

Correct or adopt control measures

III ImprovableImprove the existing control

IV Acceptable

Do not intervene unless a more precise analysis justifies doing so

The assessment of risks is the process of evaluating risks that arise from a hazardtaking into account the sufficiency of the existing controls and deciding whether ornot the risk is acceptable. In order to do this, the acceptability of the risk isdetermined.

97

Risk Evaluation and Assessment Tables

Table 1. Description of damage levels

Damage

CategoryMild Damage Medium Damage Extreme Damage

HealthDiscomfort and irritation (e.g.

headache); temporary illness that

causes discomfort (e.g. diarrhea).

Illnesses that cause temporary

incapacitation. E.g. partial loss of

hearing, dermatitis, asthma, disorders of

the upper limbs.

Acute or chronic illnesses that cause

permanent partial incapacitation,

disability or death.

SafetySuperficial injuries, shallow wounds,

contusions, eye irritation caused by

particulate matter.

Lacerations, deep wounds, first degree

burns, concussions, severe sprains,

fracture of short bones.

Injuries that cause amputations, fracture

of long bones, head trauma, second

and third degree burns, severe

alterations of the hands, of the spine

with compromised spinal cord, of the

eyes with compromised visual field,

diminished hearing.

98


Table 2. Determination of deficiency level

Deficiency Level DL Value Meaning

Very High (VH) 10

Risks have been detected that make the

occurrence of accidents possible, or the

efficiency of the existing set of preventive

measures in terms of the risk is null or inexistent,

or both.

High (H) 6

Hazards have been detected that can cause

significant accidents, or the efficiency of the

existing set of preventive measures is moderate,

or both.

Medium (M) 2

Hazards have been detected that could cause

accidents of little significance or minor

importance, or the efficiency of the existing set of

preventive measures is moderate, or both.

Low (L)

No value is assigned0

No hazards have been detected, or the efficiency

of the existing set of preventive measures is

high, or both. The risk is controlled. These

hazards are classified directly in risk and

intervention level four (IV). See Table 8.

99


Table 3. Determination of level of exposure

Level of Exposure LE Value Meaning

Continuous (CE) 4

The exposure situation occurs without

interruption or several times for a prolonged

time throughout the work day

Frequent (FE) 3

The exposure situation occurs several times

throughout the work day for short periods of

time

Occasional (OE) 2

The exposure situation occurs some time

throughout the work day for a short period of

time

Sporadic (SE) 1 The exposure situation occurs eventually

100


Table 4. Determination of probability level

Probability LevelsLevel of Exposure (LE)

4 3 2 1

Deficiency Level

(DL)

10 VH-40 VH-30 H-20 H-10

6 VH-24 H-18 H-12 M-6

2 M-8 M-6 L-4 L-2

101


Table 5. Meaning of the different levels of probability

Probability Level PL Value Meaning

Very High (VH) Between 40 and 24

Deficient situation with continuous

exposure or very deficient with frequent

exposure. Usually the risk materializes

frequently.

High (H) Between 20 and 10

Deficient situation with frequent or

occasional exposure, or very deficient

situation with occasional or sporadic

exposure. It is possible that the risk

materializes several times throughout

the work life.

Medium (M) Between 8 and 6

Deficient situation with sporadic

exposure or improvable situation with

continuous or frequent exposure.

It is possible the damage occurs some

time.

Low (B) Between 4 and 2

Improvable situation with occasional or

sporadic exposure, or situation without

notable anomalies with any level of

exposure. The risk is not expected to

materialize, although it is conceivable.

102


Table 6. Determination of consequence level

Consequence

LevelCL Value

Meaning

Personal Injuries

Mortal or

catastrophic (M)100 Death (D)

Very Serious (VS) 60

Irreparable severe injuries or illnesses

(permanent partial incapacitation or

disability)

Severe (S) 25Injuries or illnesses with temporary

incapacity to work (TIW)

Mild (m) 10Injuries or illnesses that do not require

medical leave

Note In order to evaluate the level of consequences, take into account the

most severe direct consequence that could occur for the assessed activity.

103


Table 7. Determining the risk level

Risk Level

RL = PL X CL

Probability Level (PL)

40-24 20*10 8*6 4*2

Consequence

Level (CL)

100I

4000 – 2400

I

2000 - 1200

I

800-600

II

400-200

60I

2400 – 1440

I

1200 – 600

II

480-360III

120

25I

1000 – 600

II

500 – 250

II

200-150

III

100-50

10II

400 - 240III

100

III

80-60

III 40

IV 20

104


Table 8. Meaning of risk level

Risk Level RL Value Meaning

I 4000 - 600

Critical situation Halt activities until the

risk is under control. Urgent

intervention.

II 500 – 150Correct and adopt control measures

immediately

III 120 – 40

Improve if possible It would be

convenient to justify the intervention

and its profitability.

IV 20

Keep existing control measures, but

consider solutions or improvements

and implement periodic checks to

ensure that the risk is still acceptable.

105


Table 9. Risk Acceptability

Risk Level Meaning Explanation

I Unacceptable Critical situation, urgent correction

II

Unacceptable or

acceptable with

specific controls

Correct or adopt control measures

III Improvable Improve the existing control

IV AcceptableDo not intervene unless a more precise

analysis justifies doing so

106

Matrix of identification of hazards, evaluation and

assessment of risks

107

Communication and Participation

Grupo Argos will implement a multidirectional internal communications plan in order to ensure thatour own staff as well as outsourced staff are aware of the Occupational Health and SafetyManagement System, the risks they are exposed to, and the objectives of the Management Systemso that they can contribute to compliance with the Management System Policy and to constantimprovement.

It will also serve as a means to receive suggestions and information to review procedures andprograms.

The information, resolutions and news related to the Management System will be disseminatedamong the staff through the following means:

Informative memosE-mailTrainingScheduled and unscheduled conferencesOrientation and reorientationTraining for specific positionsOHS inspections and monitoringOHS performance evaluation

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Training

Overview:

The training program will be updated annually according to the identified OHSrequirements and reviewed together with the OHS Joint Committee (COPASST for itsSpanish acronym) and the company's senior managers in order to identify improvementactions.

The training program is extended to all levels of the company including dependentworkers, contractors, cooperative workers, and mission workers.

The teaching materials, attendance records, and training evaluations must be kept.

109

2016 Training Plan - First SemesterNO. CONTENTS TRAINING OBJECTIVE

SCOPE

(PERSONAL OBJECT)

1 IDENTIFICATION OF HAZARDS, EVALUATION AND ASSESSMENT OF RISKSTo provide the participants with the tools to identify hazards, and to evaluate and assess risks to serve as an asset in thedevelopment of the OHS management system.

COPASST, ADMINISTRATIVE STAFF, DRIVERS AND SODEXO STAFF

2 DISSEMINATION OF THE OHS POLICY To generate an OHS culture in such a way that it is implicit in all of the company’s actions ALL STAFF

3 DISSEMINATION OF THE GOALS OF THE OHS MANAGEMENT SYSTEM To establish everybody’s commitment to achieving the goals ALL STAFF

4 EVALUATION OF THE OHS MANAGEMENT SYSTEMTo demonstrate the company’s compliance with the OHS Management System and the respective action plan to achieve its objectives ALL STAFF

5 DISSEMINATION OF THE DRUG AND ALCOHOL POLICY To disseminate the policy and the framework of action to address the issue of drugs and alcohol ALL STAFF

6DISSEMINATION OF THE RESPONSIBILITIES RELATED TO THE OHS MANAGEMENT SYSTEM BY POSITION To disseminate the responsibilities of all levels in terms of the OHS Management System ALL STAFF

7 OHS STRATEGIC PLANNING To interpret and apply the concepts that define the OHS strategy in order to make the OHSMS objectives achievableADMINISTRATIVE COORDINATOR, OHS INTERN AND EXTERNAL CONSULTANT

8PREVENTION OF WORK HARASSMENT AND PROMOTION OF A GOOD WORK ENVIRONMENT

To provide workers the technical and methodological elements for the intervention of work harassment that allow them to build prevention and mitigation strategies, and to strengthen the competencies of workers according to the organizational structure EMPLOYEE RELATIONS COMMITTEE

9 JOINT OHS COMMITTEE (COPASST)To establish the technical elements for the formation andoperation of the OHS Joint Committee according to currentlegal standards.

COPASST, ADMINISTRATIVE COORDINATOR AND PROCESS LEADERS

10EMPLOYEE RELATIONS COMMITEE (WORK HARASSMENT PREVENTIVE AND CORRECTIVE MEASURES)

To promote the establishment and operation of employee relations committees by reviewing legal guidelines and formulating actions plans focused on preventing harassment within the context of work. EMPLOYEE RELATIONS COMMITTEE

11 AWARENESS AND DRIVING ETIQUETTE FOR DRIVERS To identify dangers associated with driving and motorcycletraffic to propose and implement responsible actions aimedat preventing road accidents. WORKERS WHO DRIVE COMPANY VEHICLES

12 EMERGENCY PREVENTION, PREPARATION AND RESPONSE PLAN To provide the tools to consolidate emergency prevention and response programs that allow us to safeguard the integrity of our people and ensure the continuity of the processes developed by the company. EMERGENCY BRIGADE

13 CIVIL RESPONSIBILITY AND WHAT TO DO IN CASE OF AN ACCIDENT To offer guidance to our staff in the event of a traffic accident ALL STAFF

14 ALCOHOL AND PSYCHOACTIVE SUBSTANCESTo raise awareness among staff about the effect produced by alcohol and psychoactive substances when driving a vehicle ALL STAFF

15 DRIVING ETIQUETTE, DRIVING INTELLIGENTLY FOR MOTORCYCLE DRIVERS To offer knowledge on preventive measures for motorcycle drivers ALL STAFF

15 DRIVING ETIQUETTE, DRIVING INTELLIGENTLY FOR BICYCLE DRIVERS To offer knowledge on preventive measures for bicycle drivers ALL STAFF

17 TALK ON ZIKA VIRUS AND RESPIRATORY DISEASES To raise awareness about the hazards of the Zika virus for staff who travel to affected areas STAFF WHO TRAVEL TO TROPICAL AREAS

18 HOW TO PREVENT EXTORTION To offer tools to avoid and prevent extortion ALL STAFF

19 POSTURAL HYGIENE To teach and correct bad posture at work through practical exercises and games ALL STAFF

110

Education and Training

During 2015 Grupo Argos had four main approaches to training.

1.Training to implement the objectives of the Occupational Health and Safety Management System

2.Control of risks identified in the hazards matrix

3.Orientation

4.Emergency response training for support groups

We have provided over 800 hours of training related to occupational health and safety topics.

111

Education and Training

Road safety training aimed at drivers and bodyguards

Training for Grupo Argos brigadiers

112

Drills

113

Healthy Lifestyles: Healthy Body

Promotion and prevention activities for employees

Active breaks: This program is carried outwith specialized personnel from COMFAMACompensation Fund, and in 2015 weinvested 367 hours and USD 4,300.

The main objective is to preventmusculoskeletal problems as aconsequence of prolonged postures andrepetitive movements at work stations.

114

Healthy Lifestyles:

Addiction-Free Life

In order to reinforce the strategy to prevent the use of alcoholic and psychoactive substances, GrupoArgos has the following policy:

The Vice Presidency of Human and Administrative Management promotes the culture of care and self-care in compliance with current legal regulations regarding occupational health and safety with the aimof improving constantly and generating work conditions that favor the physical, mental and emotionalhealth of our employees.The company is committed to the physical, mental, emotional and social well-being of our employees,and it is aware of the adverse effects on health and productivity caused by alcoholism, drug addictionsmoking. Therefore it maintains and promotes safe workplaces and conducts educational preventionand control campaigns that help improve the quality of life.In line with the foregoing, the company prohibits and does not tolerate the use, consumption, carrying,commercialization, distribution, and transport of alcoholic beverages and toxic or illegal drugs duringthe execution of work activities within the facilities or while driving a company vehicle. Likewise, it isalso prohibited to show up to work under the effects of alcohol, drugs and/or hallucinogenicsubstances and narcotics that are habit-forming.The drug, alcohol and smoking policy applies to all direct employees, contractor employees and anyperson entering the company's facilities.

115

Healthy Lifestyles:

Safe Work

Grupo Argos conducts activities aimed atmanaging occupational risks in order to preventaccidents and occupational diseases.

In 2015 we acquired 150 ergonomic chairs at aninvestment of USD 150,000 in order to preventcumulative trauma disorders and injuries to themusculoskeletal system due to prolonged andmaintained postures.

116

Commitment to Safety

In line with our policy, workers, suppliers, contractors, and visitors must commit toadopting the guidelines aimed at preventing work accidents and incidents,occupational diseases and socio-environmental impacts, at complying withestablished guidelines in the event of an emergency, and at complying with OHSlegal requirements.

In order to do so, they must abide by the following obligations:

117

Workers' OHS Obligations

a) To take care of their health;

b) To provide clear, accurate, and complete information about the status of their

health;

c) To comply with the standards, regulations, and instructions of the company's

OHS Management System;

d) To inform their employer or contractor in a timely manner about the latent risks

and hazards in their workplace;

e) To participate in the OHS training activities defined in the OHSMS training plan;

and

f) To participate and contribute to the achievement of the objectives of the

OHSMS.

g) Report to immediate supervisor: Nonconformities, unsafe acts/conditions,

occupational incidents/accidents, and environmental events.

h) Complying with the provisions of the internal work regulations.

118

Internal Work Regulations

ARTICLE 39º - Workers or remote workers must submit to all industrial safety and hygienemeasures prescribed by general authorities, and in particular those issued by theCOMPANY to prevent diseases and for occupational hazards when handling machinery,equipment, tools, and other work elements.

Paragraph. Failure by workers to comply with the instructions, regulations anddeterminations related to the prevention of risks, adopted generally or specifically as wellas those within the COMPANY'S occupational health programs, are classified as a seriousmisconduct that can lead to dismissal with just cause, even if it is the first time.

119

Obligations of Contractors and Suppliers

a) To submit social security payment prior to entryb) To bring and utilize al personal protective elements according to the area where

the work or task will be carried out.c) If it is a high-risk task (work at heights, hot work, confined spaces, lifting, chemical

products or hazardous energies), the worker must apply for a permit and wait forthe company's approval prior to commencing work.

d) The contractor must send their staff with uniforms and/or a distinctive item andproper ID.

e) To look for their health, that of their peers and of the members of ourorganization.

f) It is forbidden to enter the company's facilities under the effects of alcohol orother psychoactive substances, as well as promoting their use and sale. Thecontractor must ensure that its staff comply with this criterion and failure to do socan result in sanctions or removal as supplier or contractor.

g) To maintain the area where they conduct their activities or render their servicesclean and organized. This also applies to sanitary facilities, dining areas and otherspaces provided by the company.

120

Obligations of Contractors and Suppliers

h) Supply clear, accurate and complete information about the condition of your health to

your immediate supervisor, who will in turn report it to the internal OHS leader.

i) Help ensure compliance with OHS obligations.

j) Comply with standards, regulations, and instructions that have been issued.

k) If you need to mobilize in mechanical or non-mechanical traction vehicles in order to

render your services, do so in compliance with the provisions of the national traffic code.

l) Use the appropriate PPE for the task you will be carrying out and use it throughout the

duration of the task.

m) Use water, energy, and gas rationally to contribute to the conservation of the

environment.

n) The company will have the right to halt any activity that is being executed under

conditions that are unsafe, lack order and cleanliness, and generally violate standards,

procedures, and requirements that could be hazardous to staff, the facilities, the

equipment or the environment.

HR TECHNOLOGY –

SUCCESS FACTORS

122

Success Factors HCM Suite

“Improving Business Results Through People”

Success Factors is a robust workforce analytics and

planning tool that brings together talent and business

data, and is combined with the next-generation core

HR solution that improves executive insight and

decision- making, allowing the Organization to align

human capital investment with business’ needs and

strategy.

123

Why SuccessFactors • SuccessFactors is a tool to strengthen our employee's leadership.

• SuccessFactors is a SAP solution that seeks to improve

organizational performance through a system that supports the

execution of human management processes in a comprehensive

manner.

• It allows to manage the entire productive potential of leaders and

collaborators and ensures the alignment between the are of

human talent and the strategic objectives of the organization.

• It is a medium of service for the different areas of the company.

• Supports the process of consolidating talent information for

holding and of course, the supposed mobility of employees to

encourage their development.

124

Compensation

Learning

Succession/Development

ComponentsJam (Collaboration)

Recruiting

Workforce Planning

Employee Central

Performance & Goals

Workforce Analytics

125

Jam (Collaboration)

Delivers social collaboration where you

work, connecting customers, partners, and colleagues with

information, applications, and

processes to solve business-critical

problems and to drive results

Employee Central

This component is

designed for the global

enterprise workforce and

delivered securely via

the SuccessFactors

cloud, serving more than

20 million users

Components

Compensation

You can have better

business execution and

results by rewarding

great performance,

optimizing budgets,

improving compliance,

and reducing manual

errors

126

Learning

This component

combines formal,

social, and extended

learning with

unmatched content

management, reporting,

analytics, and mobile

abilities.

Recruiting

Helps your company to attract and engage top talent, select and hire

the best-fit candidates, and then measure

business results. With this solution, you can

focus on more than just the selection phase of

the process.

Performance & Goals

Equips your company with the in-depth

employee performance information you need to

retain, reward, and develop your best

people.

This component aligns clear and accurate goals

with objective talent assessments.

Components

127

Succession /Development

Helps to identify, develop, and retain talent at every level of your company, keeping your workforce responsive and flexible.

With a dynamic, comprehensive, and objective view of your

workforce, you can recognize and bridge the

talent gaps in your Organization.

Components

Workforce Planning

Helps your company ensure it has the right people with the right

skills at the right time and cost, so you can execute

successfully your business strategy now and in the

future

Workforce Analytics

Finds answers to key questions about

workforce challenges and provides guidance to help solve them. Such answers can help drive successful

workforce initiatives.

129

SuccessFactors supports the management of Grupo Argos human talent and is

comprised of:

SuccessFactors Scope

Collaborator Profile (EP)

Objectives (GM)

Performance (PM)Development

Succession

LearningJam

Goals PerformanceEmployee Planning

Recruitment Compensation Learning Succession Collaboration Analytics

Focus on Human Capital

Look for the appropriate

people and improve them Create your

Corporate Strategy

Executive Employee Manager Human

Resources

130

Current footprint of companies in the Grupo

131

Success Factors can contribute to the Strategy of the Grupo:

Business Strategy

Develop the Market

Synergy

Investments and creation of Companies

Global Expansion

Comprehensive Talent Management

Execution of GH

Retention

Efficiency

RegulatoryCompliance

Alignment

Compensationand Recognition

Diversity

Training and

Development

Talent Pipeline

Business Outcomes

Increase in Revenue

Revenue per

Employee

Margin

Value per Stockholder

Client Loyalty

132

What do we gain in return?

• Materializes the Human management

strategy

• An agile and flexible human talent

management process

• Interaction of the collaborators on the

platform

• Empowering of leaders in managing their

teams

• Database that is unified as a Group

• Organized registry of data, which allows us to

have coherent, clear, and aligned information

• Integrity and visibility of information

• Greater training coverage

• Virtually integrate work teams, creating

practice communities geared towards

Knowledge Management

• Provide objective and strategic talent

information for the decision-making areas.

• Transactional and operational

human talent management

• Outdated collaborator

information

• Lack of knowledge regarding

the career and mobility

expectations of collaborators

• Information in different files

(Excel)

• Different database versions

• Impossible to manage variable

compensation in a practical

and flexible way.

• There is a lack of consolidated

Grupo Argos human talent

information.

Before

Now

133

How do we live SF in Grupo Argos?Rio Grande

Ranch

Support Area

Human Talent Area

Network of Managers of Change

134

Compensation

Learning

Modules implemented in 2014

Employee profile

Performance and objectives

Jam collaboration

135


Performance Management:

Allows individual efforts to be oriented toward meeting

the organization's common objectives.

Real-time performance information per individual.

Creation of performance evaluations in less time.

Clear and efficient evaluations.

Alignment and Administration of Objectives:

Aligns efforts of all individuals for the completion of goals.

Improves the alignment of strategic and tactical

objectives.

Increases the commitment of individuals to fulfill

objectives.

Encourages personal participation in meeting the

company's long term objectives.

Compensation:

Improves the implementation of a performance

compensation strategy that generates greater retention

and organizational performance.

Creation of a culture of compensation based on

performance, improving retention.

Zero error systems through calculation and precision

modes

Employee Profile:

Allows collaborator's information to be managed

throughout their time in the organization.

Increases the visibility of information of the

organization's employees.

Allows the company to stay up-to date on collaborators'

information.

Promotes the interaction between collaborators and

different companies.

360 Degree Evaluations:

Allows a more profound and extensive performance

assessment by compiling information from diverse

sources.

Allows better communication within the organization.

Locates strengths and hidden points for development.

Learning:

Administers learning in a more effective manner that

combines formal and social learning

Allows remote learning

Improved learning content

Increases learning efficiency and visibility

136

Performance management

Commitment to meet objectives is crucial to

obtain proposed results.

As part of the Performance Management and with the goal of establishing of Variable Compensation System for 2015, each work team has the responsibility to create a table of indicators that will be used tomeasure their level of contribution to the company's achievements.

The period to present these indicators that are already approved by the Vice Presidency or Presidency is December 15. In the near future, supervisors will receive a checklist that will help the entire team create their tables.

Creation of a table of indicators of team

work

137

JamCollaboration network -

Communities in practice

•"Blogs" for the

•different committees

and/or

•work groups such as:

•conduct, fellowship,

•Purchases, hiring, etc.

We invite you to learn why Grupo Argos is talent on the

rise.

138

Employee ProfileThis module allows the information of all company users to be grouped accordingto their main information, contact information, family information, leadershipstyles, professional development, interests, academic achievements, and hobbies.

139

E- Learning ProgramIt's a system that allows for the development of a comprehensive training strategyfor the company that includes the management, development, and deployment oftraining, not only virtual, but semi face-to-face or face-to-face.

140

E- Learning Program

• 1. We are cordial and respectful

We seek interactions with our colleagues and the people that we come in contact with that are always courteous and respectful. We seek that three essential values predominate in Grupo Argos; spirit of collaboration, teamwork, and loyalty.

In addition, we respect the believes and ideologies of our colleagues and their families. We don't promote religious groups or political participation within Grupo Argos.

141

Change management

E. Team project plan

A. Identification

and segmentation of impacted

audience and the project

team

C. Communications Plan

June July August September October November December January February March

S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4 S1 S2 S3 S4

Project

preparationBlueprint Execution

Final

Preparation

Live Exit and

Support

B. Measurement of readiness to change

F. Learning and training plan

G. Measurement of project adoption

H - Risk management

2015 - 2016

142

What have we gained• Consolidate talent information

• Appropriation of tool by employees. Not only human resources

• Closing of variable system in a trustworthy manner

• More effective and quick audit procedures

• Information so that leaders can better manage their collaborators

• Promotes a culture of self-management and self-development

• One single database

• Support for the core holding processes

• Ease, speed, and economy for roll outs

• Increase in training by 10% of training hours, virtual training

• 98% of coverage of the performance management process in only 2

months

• Functional and economic synergies by working as a holding

143

Employee central

Payroll


Unification as one entity for homologous processes and to consolidate talent as a holding.

Succession and development

144

Workforce Analytics

Steps to follow in 2016

Unification as one entity for homologous processes and to consolidate talent as a holding.

www.grupoargos.com

Name

Maria Paula Vergara

[email protected]

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