2016 Sustainability Report

2016 Sustainability Report

Xylem People

Employee
Engagement

To understand where our organization is headed, it helps to understand our past. Many of our brands have more than a century of experience delivering water solutions, but Xylem did not become a stand-alone public company until our spinoff from ITT Corporation in 2011. Since then, we have been transforming from a conglomerate organization into an operating company, purposefully building a Xylem culture that extends across our family of brands and hundreds of locations around the globe.

Employee engagement surveys are one valuable tool that we’ve used since becoming an independent company to evaluate our progress and develop a more Xylem-centric culture. We use both large-scale surveys and small pulse surveys in our various business units and geographic markets to gauge employee morale, and to solicit feedback and ideas on how we can improve business results and be the best employer possible.

Surveys have also been used to help us manage the change brought by one of our largest acquisitions to date. With the integration of Sensus’ 3,500 employees and their unique skills and capabilities, it’s a new day at Xylem. Shortly after the acquisition, we conducted high-level assessments with the integration leadership team on cultural similarities, differences and gaps between the two organizations. We will expand on that work through a 2017 company-wide survey, to be conducted in June, which will include evaluations of culture for the first time. From there, we will identify ways to actively shape and evolve the culture of our combined organization.

Attracting and retaining the best employees is fundamental to our continued success.

Recognizing Superior Performance
Attracting and retaining the best employees is fundamental to our continued success. Xylem takes a total rewards approach to attracting, motivating and retaining talented employees worldwide and to driving our high-performance culture.

Our total rewards philosophy integrates programs for compensation, benefits, recognition, learning and development, corporate citizenship and work-life balance. While individual program components may differ by country, job role or level, our culture and commitment to results remain constant.

We also encourage our managers to conduct Stay Interviews with their direct reports. The concept of a Stay Interview is to maintain open lines of communication related to individual employee satisfaction and engagement and to provide real-time feedback.

Diversity & Inclusion at Xylem
With operations in more than 150 countries, diversity is part of Xylem’s DNA. We believe that diversity in all its forms allows us to compete more effectively around the world and drive exceptional customer satisfaction, innovation and company performance. Among our executive ranks, 85 percent are local nationals.

It is our policy to ensure equal employment, advancement opportunity, incentives and discipline without distinction or discrimination based on gender, ethnicity, race, gender indentity, age, religious or political beliefs, disability, sexual orientation, protected veteran status or other protected classifications.

In addition, as a U.S. Government contractor, Xylem is committed to taking affirmative action to hire and advance minorities, women, qualified individuals with disabilities and covered veterans. In 2016, the ratio of basic salary and remuneration of women to men by employee category in the U.S. was 98 percent average for non-exempt employees; 95 percent average for exempt employees; and 95 percent average by grade.

Xylem also sees diversity as key to leadership development. When selecting participants for our internal development programs, we ensure that groups are balanced across a number of factors including gender, ethnicity, tenure and function with the company, geography and more. We have also built concepts such as inclusion and leveraging of differences into our training programs for top leaders.