2022 HUMAN CAPITAL MANAGEMENT REPORT - Cummins Inc.
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Cummins Inc. 2022 HUMAN CAPITAL MANAGEMENT REPORT
At Cummins, we are committed to what is now a more than 100-year tradition at our company— creating and maintaining a dynamic and exciting workplace. Chairman and CEO Tom Linebarger 2022 Human Capital Management Report | Cummins Inc. 2
CEO LETTER
Our commitment to
our most important
asset—our people
We are steadfast in our commitment to
building a dynamic workplace where all
employees are inspired and encouraged
to achieve their full potential.
This is how we define Leadership Culture at Cummins. To be successful,
it must be embedded at every level of our company as helping our employees
reach their full potential impacts our ability to innovate, serve our stakeholders
and maintain our position as an industry leader.
THE ROLE OF LEADERS
This work starts at the top with our Board of Directors. In 2020, we renamed
our Compensation Committee as the Talent Management and Compensation
Committee, reflecting the much-needed emphasis on employees at our board
level. The committee focuses on our employee experience, recently overseeing
the creation of global implementation plans and process improvements in
Chairman and CEO Tom Linebarger meets
response to employee feedback.
with a women’s employee resource group.
We focus on leadership at all levels of Cummins because leaders play
such a pivotal role in creating a great work environment. More than anyone,
2022 Human Capital Management Report | Cummins Inc. 3
CEO LETTER
Cummins
leaders shape the experience for employees positions us to deploy our talent more effectively than others. at a glance
across the company. There are many companies working to solve complicated
global challenges. What sets Cummins apart is that we are
We have invested significant time and resources into Cummins Inc. is a global power leader made up
experts in using the power of difference to address tough of complementary business segments that design,
leadership development programs. Diversity among the
issues – leveraging the capability of our leaders and the manufacture, distribute and service a broad
participants is intentional – spanning our various business portfolio of power solutions, including diesel,
diverse perspectives of our teams to deliver the best solutions
segments, functions, and regions around the world and natural gas, electric and hybrid powertrains
to customers around the world in a way that is customized to and powertrain-related components.
targeting employees at different levels in the organization.
their culture, language and needs.
Our curriculum recognizes the need for today’s leaders
to build business acumen and emotional intelligence ESTABLISHED: 1919
MEETING FUTURE CHALLENGES
to successfully drive business results while effectively HEADQUARTERS: Columbus, Indiana (U.S.A.)
engaging with a diverse set of stakeholders. Creating and maintaining a dynamic work environment
has never been more important. We are entering an SALES/EARNINGS:
The result of our investment is a resilient, experienced, agile unprecedented period in Cummins’ history. Climate change is Cummins earned $1.8 billion
and accountable group who is well prepared for complex the existential challenge of our time, and the companies that on sales of $19.8 billion in 2020.
global challenges. I am confident that the pipeline of leaders succeed in the future will deploy their diverse talent to solving
we have developed is one of our most sustainable strengths EMPLOYEES: 59,900 as of Dec. 31, 2021
complex problems while using fewer of the world’s resources.
irrespective of industry changes and business cycles. OPERATIONS:
We are confident that our path to zero carbon emissions Cummins serves customers around
DIVERSITY, EQUITY AND INCLUSION is the best for the planet, our stakeholders and Cummins’ the world, with principal manufacturing
continued success. All our employees have a role to play locations in eight U.S. states and
Diversity, equity and inclusion (DE&I) is our competitive six of the seven continents.
in this. Our children and their children will look back and
advantage. We have a history of bringing people together
ask what we did to address climate change, and we must
with different talents to solve complex problems and drive WEBSITE: cummins.com
dedicate our talent and resources toward solving it.
innovation for our customers. We can do this better and
FORTUNE 500 RANKING: 150 (as of 2021)
faster by creating an environment for everyone to reach This is the challenge in front of us and there is no
their full potential. company better positioned to confront it. STOCK SYMBOL: CMI (New York Stock Exchange)
Our commitment to diversity enables us to attract the CEO: Tom Linebarger (2012 to present)
best talent, and our commitment to equity and inclusion Tom Linebarger
Chairman and CEO, Cummins Inc.
2022 Human Capital Management Report | Cummins Inc. 4
MISSION, VISION AND VALUES
Cummins’ story VALUES LEADERSHIP
CULTURE
Our approach to human capital management INTEGRITY
Inspiring and encouraging
is guided by the Cummins’ vision, mission Doing what you say you will
all employees to achieve
do and doing what is right
and values and the company’s Leadership their full potential
Culture. Cummins’ history and values inspire DIVERSITY & INCLUSION Cummins’ Leadership Culture
our compassion and actions. Valuing and including our is supported by a leadership
differences in decision making development framework
is our competitive advantage reflecting three overarching beliefs:
MISSION CARING
1 Leaders need to build
business acumen and
Making people’s lives better by Demonstrating awareness
and consideration for the
emotional intelligence.
powering a more prosperous world wellbeing of others 2 Leaders have a responsibility
to teach and coach others.
EXCELLENCE 3 A leader’s development
Always delivering superior results starts with individual
VISION development then moves
to team development.
TEAMWORK
Innovating for our customers Collaborating across teams, To learn more about how great
to power their success functions, businesses and
borders to deliver the best work
leaders make Cummins a great
place to work, see page 25.
2022 Human Capital Management Report | Cummins Inc. 5
Report contents
Our commitment to our most important asset—our people............................... 3
Cummins’ story..................................................................................................... 5
Creating a great workplace starts with the Cummins board............................... 7
Putting human capital management to work..................................................... 10
Our global reach.................................................................................................. 11
Our workforce strategy....................................................................................... 12
Diversity, equity and inclusion: our competitive advantage.............................. 15
Our workforce...................................................................................................... 18
Engaging employees and families in improving wellness................................. 23
Developing enlightened leaders to drive Cummins’ success........................... 26
Working to be the company of the future, now................................................. 28
Cummins workplace honors............................................................................... 30
2022 Human Capital Management Report | Cummins Inc. 6
BOARD OF DIRECTORS
Creating a
great workplace
starts with the Cummins President and Chief
Operating Officer Jennifer Rumsey
Cummins board
talks to prospective customers.
In 2022, longtime member
The Cummins Board of Directors These include the calls for racial equity and social Alexis M. Herman announced
justice that swept across the United States in 2020, her retirement from the
is leading by example on human as well as the movement toward flexible and remote Cummins Board of Directors.
capital management, adding working arrangements since the onset of the global Herman, a former U.S. Secretary of
Labor, joined the board in 2001 and
pandemic two years ago.
more women and ethnically served as Lead Director at the time of
her retirement.
diverse members while aligning GAINS IN BOARD DIVERSITY
ALEXIS M.
In that position, she played an important
role conferring with the Chairman on,
HERMAN
its focus to creating dynamic The board ended 2021 with five women members— and approving, board agendas as well
as serving as the leader of the board’s
the most at any time in the company’s more than
work environments. 100-year history—and then added a 14th member
Governance & Nominating Committee.
and a sixth woman in early 2022 when Cummins She guided the board through the
Working with our company leadership, the board sudden onset of the COVID-19
President and Chief Operating Officer Jennifer Rumsey
for much of the past year has been taking a broader pandemic in 2020 as it provided vision,
joined the board. Later, long-time Lead Director Alexis strength and stability. The board met
view of the plans, policies and practices impacting 15 times in 2020 – three times its
Herman announced her retirement, effective at Cummins'
Cummins employees, with a special focus on the new normal number of meetings. Herman is
Annual Meeting May 10. Chairman and Chief Executive Officer
and unprecedented issues around talent management
of New Ventures, LLC, a corporate
and compensation emerging since 2020. consulting company.
2022 Human Capital Management Report | Cummins Inc. 7
BOARD OF DIRECTORS
Female board members in addition to Rumsey and
Herman as of March 31, 2022, include Georgia R.
Cummins Board of Directors
Nelson, retired President and CEO of PTI Resources LLC,
who joined the board in 2004; Karen H. Quintos, retired
Chief Customer Officer of Dell Technologies, a board
member since 2017; Kimberly A. Nelson, retired Senior
Vice President of External Relations at General Mills, Inc.,
a board member since 2020; and Carla A. Harris, Vice
Chairman and Managing Director at Morgan Stanley,
who joined the board in 2021. ROBERT J. DR. FRANKLIN R. BRUNO V. STEPHEN B. CARLA A.
BERNHARD CHANG DIAZ DI LEO DOBBS HARRIS
Members across other dimensions of diversity include
Harris, Herman, Kimberly A. Nelson, Franklin R. Chang
Diaz and Bruno V. Di Leo. Chang Diaz, a board member
since 2009, is a former U.S. astronaut who today is
President of the Ad Astra Rocket Company. Di Leo,
a board member since 2015, is the Managing Director
of Bearing North LLC, an independent advisory firm
focused on business expansion. Prior to that role,
he served as a Senior Vice President of IBM. ROBERT K. ALEXIS M. N. THOMAS THOMAS J. WILLIAM I.
HERDMAN HERMAN LINEBARGER LYNCH MILLER
Taken together, more than half of the Cummins Board
of Directors consist of women or members of other
dimensions of diversity.
The board also has diversity in terms of business
expertise and experience, including backgrounds in the
automotive and transportation sectors, technology and
(Board as of March 31, 2022)
IT, sales and marketing, academia and financial expertise.
GEORGIA R. KIMBERLY A. KAREN H. JENNIFER W.
NELSON NELSON QUINTOS RUMSEY
2022 Human Capital Management Report | Cummins Inc. 8
BOARD OF DIRECTORS
Twelve of the 14 members including Herman are fully
independent directors, consistent with the definition
Since 2020, Cummins has taken many steps
in the talent management area including:
Board diversity
established by the U.S. Securities and Exchange The Cummins Board of Directors is
• Executed robust safety protocols for
Commission and the New York Stock Exchange. becoming increasingly diverse both
essential on-site personnel.
Cummins’ Chairman and CEO Tom Linebarger was by gender as well as race and ethnicity.
the only board member employed by the company • Implemented a remote working environment for
before Rumsey’s appointment in 2022. employees who could perform their duties off site. BY GENDER
This chart looks at the board
EXPANDING FOCUS • Launched a global mental health awareness by gender as of March 31, 2022.
campaign to destigmatize conditions such as
In 2020, the board broadened the focus of depression and encourage employees to seek WOMEN 43%
its Compensation Committee to include talent support offered by the company.
management. The Talent Management and MEN 57%
Compensation Committee’s expanded charter • Developed and piloted a diversity, equity and
reflects both the critical role employees play in inclusion learning curriculum with a focus on
BY RACE, ETHNICITY
the success and sustainability of the company awareness of privilege and unconscious bias.
This chart looks at the board by race
and the impact of the ongoing pandemic. • Extended key elements of Cummins’ talent and ethnicity as of March 31, 2022.
management programs to hourly employees
It’s also consistent with Cummins’ commitment
to advance their capabilities and careers. ASIAN 0%
to diversity, equity and inclusion, both in the
recruiting and retention of talented employees The challenge of attracting, developing and BLACK 21.4%
and the establishment of great work environments. retaining the best employees has never been
Finally, the committee has aligned its focus to the greater and the stakes are high for all of the LATINX / HISPANIC 7.1%
company’s overarching Leadership Culture theme company’s stakeholders. Cummins’ Board
of “inspiring and encouraging all employees to of Directors is determined to take a leadership WHITE 64.3%
reach their full potential.” role to meet that challenge, so the company
flourishes for the next 100 years. OTHER 0%
TWO OR MORE RACES 7.1%
2022 Human Capital Management Report | Cummins Inc. 9
Putting human capital COVID-19 tested Cummins and its human capital
management practices. Here are 12 steps we took
management to work to help employees during the pandemic.
1 2 3 4
IMPLEMENTED robust health INSTITUTED mandatory ESTABLISHED production EXPANDED employee leave
and safety protocols including health screenings before centers to make masks for policies to help maintain
personal protective equipment entry into essential facilities. global distribution. safe and productive
for essential employees. work environments.
8 7 6 5
ENCOURAGED LAUNCHED global mental EXTENDED ergonomic DEPLOYED virtual
employees to access available health awareness campaign support to employees collaboration tools to help
telehealth resources. to destigmatize depression, working remotely. employees working remotely.
anxiety and other conditions.
9 10 11 12
OFFERED key talent INITIATED virtual INTRODUCED virtual SPONSORED vaccination
management programs options to maintain collaboration tools to clinics delivering more than
to help hourly employees commitment to leadership support talent acquisition 45,000 shots to Cummins
advance their careers. development training. and intern programs. employees, contractors
and their families.
2022 Human Capital Management Report | Cummins Inc. 10HUMAN CAPITAL AT CUMMINS
Our global reach UNITED KINGDOM
Cummins employee 7.6% INDIA
assignments around-the-world: 15.3% CHINA
REST OF WORLD
9%
MEXICO
UNITED STATES
10.6% 2.6%
BRAZIL 11.6% AUSTRALIA
40.6% 2.7%
WORKFORCE DIVERSITY
TOTAL
EMPLOYEES:
7.6 27.8 11.6 60 35.7 35.4 33.1 59,900
(Dec. 31, 2021)
Latinx/Hispanic Percentage of women Black percentage Percentage of Percentage of Percentage Non-white
percentage of in global workforce of U.S. workforce women on Cummins ethnically/racially diverse of workforce percentage of
U.S. workforce Executive Team board members as represented by union U.S. workforce
of March 31, 2022
2022 Human Capital Management Report | Cummins Inc. 11Our workforce strategy Cummins’ strategic roadmap is centered on the critical enablers to realizing our company’s Leadership Culture and its vision of inspiring and encouraging all employees to reach their full potential. 2022 Human Capital Management Report | Cummins Inc. 12
OUR WORKFORCE STRATEGY How we do it
Cummins powers customer success
through five different business segments:
WORK-LIFE AT CUMMINS
The company’s workforce strategy cultivates an
ENGINE SEGMENT
environment where all employees, regardless of
The Engine business segment designs and
employee type and location, know what is expected builds diesel and natural gas engines for
of them, are rewarded based on performance and heavy and medium-duty trucks, buses, as
have access to differentiated experiences, tools well for use in rail and marine, agricultural
machinery and construction equipment.
and leadership coaching to help them develop.
POWER SYSTEMS
We embarked on a multi-year initiative to address
Cummins Power Generation designs and
the recognition that there is variation in how talent
manufactures power generation systems,
processes are applied to the hourly workforce, including standby and prime power,
leading to lower quality outcomes and inefficiency, distributed power generation and
combined heat and power systems.
and impacting the company’s ability to maximize “I’ve never had to
the capabilities of a deep talent pool.
wait for someone COMPONENTS SEGMENT
At a strategic level, we want the same talent and to quit or move on The Components segment designs
and builds exhaust aftertreatment
compensation polices, processes and mindset for in order to move solutions, filtration systems, fuel
the company’s hourly workforce as Cummins has systems and turbochargers to
up. That’s one of maximize engine performance.
for its salaried and exempt workforce.
my favorite things
Cummins’ aspirational goal is to build a robust NEW POWER
about Cummins.
talent pipeline where over half of the exempt The New Power segment designs and
You can create your builds battery electric and hydrogen fuel
vacancies are filled by internal hourly talent. cell platforms as well as products used in
own career path.” renewable hydrogen production.
Leadership Culture is foundational to the company’s
workforce strategy. It speaks to the criticality of ANNA NEESE DISTRIBUTION
leaders at all levels of the organization creating Finance, Indiana The Distribution segment provides sales,
service and support to customers around
the world through the largest number of
certified service and support locations
of any engine manufacturer.
2022 Human Capital Management Report | Cummins Inc. 13OUR WORKFORCE STRATEGY
Workforce strategy
the right environment for employees to achieve
their full potential, and coach and manage team
members for success. FOCUS AREAS BENEFITS
Sponsored by senior leaders, several streams
of work embed the foundational elements of the 1 Developing self-aware 1 Leaders prioritize the time to
company’s talent processes in each organization and effective leaders. observe performance and coach
across Cummins’ global footprint. and manage talent for success.
The roadmap is focused on: performance
management, talent acquisition and onboarding;
2 Creating a diverse, equitable
2 Leaders at all-levels role model
individual development and careers; and
and inclusive work environment. the company’s key leadership
merit-based compensation. behaviors and the right
behaviors are rewarded
For our company’s business, Cummins 3 Engaging employees and their (informally and formally).
expects improved productivity and engagement;
families in improving wellness.
skill-building that keeps the company current
with advances in technology and changing 3 Employees are encouraged and
supported in their development
customer needs; and access to a deeper pool
of diverse talent as we look to fill open positions
4 Extending Cummins’ talent and have the time and access
from within. process to the company’s to the tools to do this.
workforce at every level
and job type. 4 Employees are healthy physically,
mentally, and financially.
2022 Human Capital Management Report | Cummins Inc. 14DIVERSITY, EQUITY AND INCLUSION
Diversity, equity
and inclusion:
our competitive
advantage
Cummins is united in the desire
to see a world and a workplace
where all people are embraced
for who they are and who they
aspire to be.
We want a workforce that is representative at every
level of the communities where Cummins operates
around the world; and a workplace that is welcoming,
so every employee can bring their authentic selves to
work, learning from and appreciating each other.
Our goal is a workforce in which all employees
believe they can reach their full potential because
they experience a truly diverse, accessible, equitable
and inclusive work environment.
2022 Human Capital Management Report | Cummins Inc. 15DIVERSITY, EQUITY AND INCLUSION
leadership is held accountable for advancing our
company’s vision, setting goals, achieving results, WORK-LIFE AT CUMMINS
coaching others, and developing and being role models.
Business teams dedicate time on their agendas
to drive action toward diversity, equity and inclusion
goals and learn from one another. Progress is
measured and reported internally and externally.
The company is working to develop the talent
management and accountability systems
and processes necessary to mitigate bias
and ensure the equitable acquisition and
advancement of all employees.
“At Cummins, I haven’t had a
Cummins leaders and employees also promote
lot of obstacles because the
positive change in the communities where they live
and work, through our community engagement company is so driven by diversity
initiatives, supplier diversity programs and other and inclusion. The leadership
efforts to create the world we want to see. team is incredibly diverse,
Cummins prospers from harnessing the value of
Our commitment to diversity, equity and and that representation at
diverse ideas and perspectives. Diversity, equity and
inclusion contribute to the kind of work environment inclusion contributes to thriving economies the next level makes me feel
that comes up with the most creative ideas to our and stronger communities. represented and empowered.”
stakeholders’ biggest challenges.
Cummins leverages this business advantage
CRYSTAL GWYNN
The company has invested in an integrated, sustainable to create value for all of our stakeholders,
Engineer, North Carolina
and global approach to diversity, equity and inclusion. including the company’s employees,
We consider this to be a business imperative and customers and shareholders.
2022 Human Capital Management Report | Cummins Inc. 16DIVERSITY, EQUITY AND INCLUSION
Key strategy elements
Cummins’ Global Diversity, Equity & Inclusion (DE&I) Strategy is centered on
enabling a diverse, equitable and inclusive environment. Some key elements include:
LEADERSHIP BENEFITS, WORK ASSESSMENT,
ACCOUNTABILITY ARRANGEMENTS MEASUREMENT
Leaders demonstrate AND COMPENSATION AND RESEARCH
individual and collective Benefits, work arrangements Comprehensive assessment,
leadership accountability for and compensation systems measurement and research
enabling a diverse, equitable are equitable and optimize guides DE&I actions and
and inclusive culture. employee well-being,
potential and performance.
performance is shared with
all stakeholders.
Putting our values into action
RECRUITMENT, Several Cummins’ community engagement
RETENTION, LEARNING AND COMMUNICATIONS activities reflect the company’s commitment
DEVELOPMENT EDUCATION DE&I communications are a to diversity, equity and inclusion.
AND ADVANCEMENT DE&I skills and competence powerful and pervasive force
Cummins’ talent development are enabled in company leaders in achieving a more inclusive,
processes deliver equitable and and employees through equitable and prosperous CUMMINS POWERS WOMEN, for example, is a global community program
accessible recruitment, retention, education and development. workplace and world. to advance equity for women and girls. Launched in 2018, the $22 million
advancement, and a pervasive (to date) initiative has served about 26 million women and enabled equal rights
feeling of inclusion. and opportunity for thousands of women and girls around the world,. It has
COMMUNITY, funded advocacy grants leading to 32 gender equality law and policy changes.
GOVERNMENT
AND SOCIAL CUMMINS ADVOCATING FOR RACIAL EQUITY (CARE) is a new initiative
to help dismantle institutional racism in the United States. In its first year it
RESPONSIBILITY
partnered to invest more than $23 million into communities to address economic
Cummins will take a leading empowerment, criminal justice reform, police reform and social justice, leading
role within local communities to support for 311 black-owned enterprises. CARE volunteers were part of
and society at large to dismantle 17 advocacy initiatives resulting in eight law and policy changes, including
systemic inequities and revisions to two public safety use-of-force protocols.
advance justice for all.
2022 Human Capital Management Report | Cummins Inc. 17WORKFORCE DEMOGRAPHICS
Our workforce
Cummins strives for a workforce reflecting
the population where it does business.
That means the company’s goal is a workforce evenly split among
men and women. Cummins’ goals for race and ethnicity vary by region.
In the United States, the company’s goal is 12% for Black employees
and 18% for Latinx/Hispanic employees.
GLOBAL WORKFORCE
Cummins had 59,900 employees as of Dec. 31, 2021.
Hourly employees made up the largest share of the
company’s workforce.
HOURLY
EMPLOYEES
59.5%
SALARIED/
EXEMPT
40.5%
A Cummins employee works at the
Cummins Fuel Cell & Hydrogen Technology
campus in Mississauga, Ontario (Canada).
ABOUT OUR NUMBERS: All data in this section is as of Dec. 31, 2021. Data is rounded
to no more than two decimal points for simplicity and on occasion may add to just under
or just over 100%. Gender and demographic numbers are self-reported by employees.
2022 Human Capital Management Report | Cummins Inc. 18WORKFORCE DEMOGRAPHICS
GENDER DIVERSITY
AT CUMMINS
Cummins’ goal is to reflect the
markets where we do business.
Globally, that would be TOP LEADERSHIP BY GENDER
50% men and 50% women, As Cummins works to attract more women
to the company, it is putting a special effort
according to most estimates. in its leadership ranks. Here’s a look at the
gender breakdown of the company’s top
Here’s were we stood in 2021. executive teams.
CUMMINS EXECUTIVE TEAM
WOMEN 60%
GLOBAL WORKFORCE
MEN WOMEN
MEN 40%
BY GENDER
ALL EMPLOYEES 72.2% 27.8% CUMMINS LEADERSHIP TEAM
Hourly 73.1% 26.9% WOMEN 47.6%
Salaried/Exempt 70.9% 29.1%
MEN 52.4%
LEADERSHIP 73.9% 26.1% CUMMINS OPERATING TEAM
Directors and Executive Directors 74.3% 25.7% WOMEN 42.9%
Vice President and above (officers) 60% 40% MEN 57.1%
2022 Human Capital Management Report | Cummins Inc. 19WORKFORCE DEMOGRAPHICS
Cummins Leadership Team
The Cummins Leadership Team, one of three top senior leadership
groups at the company, is an example of how Cummins’ has strived
to live its diversity, equity and inclusion value.
Tom Linebarger
Chairman and Chief Executive Officer
Tony Satterthwaite Jennifer Rumsey Sharon Barner Amy Davis Tracy Embree Mahesh Narang
Vice Chairman President and Vice President – Chief Administrative Officer, Vice President and President – Vice President and President – Vice President and President –
Chief Operating Officer Corporate Secretary and New Power Segment Distribution Segment Components Segment
Chief Human Resource Officer
Norbert Nusterer Srikanth Padmanabhan Sherry Aaholm Mary Chandler Bonnie Fetch Jim Fier
Vice President and President – Vice President and President – Vice President – Vice President – Vice President – Global Supply Vice President –
Power Systems Segment Engine Segment Chief Digital Officer Corporate Responsibility Chain and Manufacturing Chief Technical Officer
Nicole Lamb-Hale Melina Kennedy Earl Newsome Mark Smith Nathan Stoner Jeff Wiltrout
Vice President – Vice President – Product Compliance Vice President – Vice President – Vice President – China ABO Vice President –
General Counsel and Regulatory Affairs Chief Information Officer Chief Financial Officer Corporate Strategy
2022 Human Capital Management Report | Cummins Inc. 20WORKFORCE DEMOGRAPHICS
U.S. DIVERSITY
Our diversity goal is
to reflect the markets
where we do business.
In the U.S., that would be 57.8% white, 18.7% Latinx,
12.1% Black and 5.9% Asian, according to the U.S.
Census. Here’s where Cummins stood in 2021.
The charts below look at Cummins’ U.S. workforce
based on self-identification as of Dec. 31, 2021.
The overall U.S. workforce was 24,306 on that date.
TOTAL U.S. WORKFORCE DIVERSITY OF LATINX / TWO OR DECLINED
U.S. WORKFORCE ASIAN BLACK WHITE OTHER
Employee classification (U.S.) HISPANIC MORE RACES TO ANSWER
ALL EMPLOYEES 11.4% 11.6% 7.6% 66.9% 0.6% 1.5% 0.4%
Hourly 2.5% 15.9% 7.8% 70.8% 0.8% 1.8% 0.5%
HOURLY
EMPLOYEES Salaried / exempt 21.9% 6.6% 7.4% 62.2% 0.4% 1.2% 0.3%
45.9%
LEADERSHIP 13.3% 6.2% 6.4% 72.7% 0.5% 0.8% 0.2%
SALARIED/ Directors and Executive Directors 13.5% 5.9% 6.5% 72.6% 0.5% 0.9% 0.2%
EXEMPT
54.1% Vice President and above (officers) 6.7% 15.6% 4.4% 73.3% 0% 0% 0%
2022 Human Capital Management Report | Cummins Inc. 21WORKFORCE DEMOGRAPHICS
UNION
OTHER WORKFORCE REPRESENTATION
About a third of the Cummins
MEMBERS*
35.4%
LANGUAGES SPOKEN
Cummins employees speak
METRICS global workforce is represented
SALARIED/
a variety of languages.
by various unions.
EXEMPT
64.6% 72%
ONE LANGUAGE
AGE * Cummins employees represented by a union under
More than half of the Cummins’ global
collective bargaining agreements expiring between
2021 and 2025. 14.8%
workforce is under the age of 39. TWO OR MORE
ASSIGNMENT EMPLOYEES 7%
THREE ORE MORE
60+ YEARS COUNTRIES WORKING
IN THE U.S.
5.9%
More than half of the Cummins
global workforce was on assignment 40.6% 6.2%
FOUR OR MORE
outside the United States.
50-59 YEARS EMPLOYEES
WORKING
16.3% OUTSIDE THE U.S. TOP 10 LANGUAGES
59.4% Here are the most popular
40-49 YEARS languages spoken at Cummins.
23.8% AGE
COUNTRY OF BIRTH
More than half of the Cummins 01 English
30-39 YEARS global workforce was born
outside the United States. 02 Spanish
33.7% 03 Chinese
20-29 YEARS AUSTRALIA 2.1% 04 Marathi
19.8% BRAZIL 2.8% COUNTRY 05 Hindi
OF BIRTH
CHINA 9.7% 06 Portuguese
UNDER 20 YEARS INDIA 18.4% 07 French
MEXICO 11.6%
0.5% REST OF WORLD 15.3% 08 German
UNITED KINGDOM 7.0% 09 Romanian
All data is of Dec. 31, 2021.
UNITED STATES 33.1% 10 Tamil
2022 Human Capital Management Report | Cummins Inc. 22IMPROVING WELLNESS Engaging employees and families in improving wellness There are significant business benefits that come from having a workforce that is healthy physically, mentally, and financially. A holistic philosophy that includes a broad approach to overall employee wellness considers an employee’s whole self and the interconnectedness of these components. Cummins’ strategy actively engages employees and their families in improving physical, mental and financial wellness. We are on a journey to offer broad and personalized options to employees globally, utilizing sophisticated means of engaging employees that demonstrate the company’s care and support. 2022 Human Capital Management Report | Cummins Inc. 23
IMPROVING WELLNESS
Employees and their families are aware of the
resources and offerings available to them and
• Financial wellness: Employee education that
provides a full understanding of the total rewards
Supporting the health
have ready access to valuable knowledge, skills provided by Cummins and the importance of of our employees
and resources. Examples include: financial planning for their future. Cummins provides diverse programs aligned with
• Telehealth: Advancement in technologies enable • Mental health: Mental wellness is intricately woven our company’s values and focused on supporting
accelerated expansion of telehealth adoption by into how Cummins works, cares for people and employees and their families based on their
global wellness providers, including Cummins’ how we encourage them to care for themselves. unique needs. Some of these include:
LiveWell Center. LiveWell, the company’s health Targeted communication campaigns augment
center in Columbus, Indiana (U.S.), not only treats policies and programs designed to support HEALTH CARE
illnesses but also helps employees and their and improve mental wellness and destigmatize Tiered health care costs so that more junior
families adopt healthier lifestyles. negative stereotypes. employees pay less for their premiums.
Leaders play a key role in enabling our wellness PARENTAL LEAVE
strategy. Developing self-aware and effective leaders Paid parental leave for primary and
who deeply care for the holistic wellness of their secondary caregivers.
employees is central to this effort. Engaging leaders
in detecting and addressing wellness topics within MEDICAL SERVICES
their teams is a necessity to drive a holistic Advanced medical services from clinicians
wellness approach. to support complex health care needs.
Learning and awareness programs equip leaders with EMPLOYEE ASSISTANCE
the skills to be able to recognize and properly respond,
Employee assistance programs with
demonstrating Cummins’ value of caring. Expanded tools diverse providers that can meet a range
and resources integrated into the company’s leadership of employee needs from race-related
trauma to transgender transition support.
development framework set up leaders to confidently
and capably champion wellness within their teams.
2022 Human Capital Management Report | Cummins Inc. 24WORK-LIFE AT CUMMINS
New ways of working embrace this wellness vision, KEY HEALTH AND SAFETY METRICS
considering ergonomics, schedule and location flexibility,
24,000
working across time zones, and effective work tools. Cummins’ telehealth “New Power China
Strong partnerships exist with Cummins’ Information participants in 2020. is such a warm and
Technology, Health Safety and Environment, Integrated
Services (Facilities) and Supply Chain functions to drive energetic team; everyone
enterprise solutions. is working hard towards
Improvement in the
one target. We are one
This approach to holistic wellness requires evolving company’s health and
big family, and everyone
capability. Benefit program design will continue to
evolve to meet emerging needs. Requiring deeper
19% safety Incidence Rate
in 2020. The rate was a has their own unique gift
technical competencies within the company’s specialty record low for Cummins. that they bring to the team.”
teams include helping leaders recognize and properly
respond to the evolving needs of their collective team CHELSEA YUAN
and individual employees. Marketing, China
Projects submitted in
149
Vendor partners who deliver wellness services on Cummins’ 2020 Ergo Cup
Cummins’ behalf must be managed effectively, living up competition recognizing
to the employee experience the company envisions. improvements in ergonomics
across the company.
2022 Human Capital Management Report | Cummins Inc. 25LEADERSHIP
Developing enlightened
leaders to drive
Cummins’ success
Cummins leaders must know
themselves well. That is why all of
our leadership development programs
start by increasing self-awareness.
This helps Cummins leaders better understand who they are,
what they value and what they expect of themselves and others.
In turn, they are better able to inspire their teams to work toward
their own and the company’s goals.
At the team level, Cummins leaders learn to set bold targets that
inspire their teams to excel and help our company meet its strategic
objectives. Cummins leaders feel accountable for results and ensure
that individuals, teams and organizations share that accountability.
Our leaders also learn to seek a diversity of perspectives, styles and
Engine Business segment strengths to ensure high performance and create better outcomes
President Srikanth Padmanabhan for both customers and the company.
visits with an employee.
2022 Human Capital Management Report | Cummins Inc. 26Vice President Tracy Embree, President of
the Cummins Distribution Business Segment,
oversees the sales, service and support
experience for the company’s customers.
Compensation
and benefits
The framework for Compensation and benefits at
Cummins are consistent with
great leadership the company’s goal of improving
Investing in developing outstanding leaders has long the physical, mental and
been a driver of Cummins’ success. The company’s financial wellness of employees
leadership development framework reflects three
overarching company beliefs: throughout their lifetime.
1 KEY FEATURES:
Features include base and variable pay, medical
Leaders need to build business acumen
coverage, paid time off, retirement saving plans and
While diversity by its nature can create conflict, and emotional intelligence to successfully employee stock purchase plans. When designing
successful leaders embrace that conflict as an drive business results and effectively Cummins’ base pay compensation ranges, the
opportunity to find better solutions. They manage engage with a diverse set of stakeholders. company does a market analysis to be sure ranges
are current and employees are advancing in
conflict well, aligning on decisions and effectively their earning potential.
implementing them for better results. 2
Leaders have a responsibility to teach and
Our leaders also learn to coach the employees they coach others. By personally investing their MARKET STUDIES:
supervise, providing honest, constructive feedback time, leaders demonstrate their commitment Cummins also does market compensation studies to
to our leadership culture. assess market movement, pay equity and living wages.
that helps team members reach their personal goals.
We believe authentic leaders must create a safe and 3 LIVING WAGES:
caring environment by being vulnerable and admitting A leader’s development journey starts with In 2018, Cummins conducted a living wage analysis
mistakes, asking for help and being open to feedback, individual development then moves to team globally to make certain our employees make a living
development. The company’s multifaceted wage where they live and work. The assessment was
which the best leaders recognize as a gift that helps incorporated into Cummins’ compensation structure
leadership training pairs long standing
them and the company improve. to ensure current and new hires never fall below this
elements and newer components to threshold. A $15 per hour living wage was calculated
meet emerging business needs.
Ultimately, Cummins leaders learn they must continue for our U.S. employees in 2019, although most
positions pay significantly more.
to grow, because their leadership journey never ends.
2022 Human Capital Management Report | Cummins Inc. 27PUTTING IT ALL TOGETHER
Working to be the company
of the future, now
Just as Cummins delivers innovation for
its customers, the company must have that same
mindset for its greatest asset—Cummins’ people.
Employees thrive when empowered to balance • Company facilities safely bring people together to
their work and personal needs. We are reimagining collaborate and complete work that cannot be done
the way we work to provide more flexibility, agility elsewhere, through spaces designed for teamwork.
and inclusion.
• Technology infrastructure enables connections,
reducing travel and relocation, so employees spend
WORK ENVIRONMENT
less time away from families and loved ones.
Cummins strives for a work environment where:
• Employees are attracted and retained by Cummins’
• All employees have flexible work options that fit culture, providing the company increased access to
their preferred way of working, whether on-site a larger, more diverse talent pool.
at a facility, a hybrid of on- and off-site work,
or off-site at their chosen location. • We achieve our diversity, equity and inclusion
aspirations through the company’s hiring and
• Employees feel included and have an equal development initiatives to make diversity at
sense of belonging, where physical location every level a competitive advantage.
is not a barrier to contribution or advancement.
2022 Human Capital Management Report | Cummins Inc. 28We listen to our
employees at Cummins
The company’s holistic approach
focuses on understanding if we are
helping every employee reach his or her
full potential. We also use what we learn,
in combination with other data, to better
EFFECTIVE LEADERS • Attentive to the mental and physical health of understand our company culture and
employees and their families, providing tools, gain insights into our workforce.
Cummins believes leaders should be:
resources and services to improve wellness.
• Authentic role models and advocates for new Listening takes place in three main ways:
ways of working, intentional about their own work A COMBINATION THAT WORKS
practices, and flexible to meet the needs of others.
When effective leaders and a dynamic
• Open communicators to ensure clarity to work work environment come together, 1 ACTIVE LISTENING
schedules and locations. Committed to helping Cummins believes the result is: using tools such as surveys.
their teams balance work and personal needs.
• World class leaders leading their teams
• Supportive of employees’ unique needs, to deliver excellence to customers while
demonstrating Cummins’ Leadership Culture creating the feeling of belonging necessary 2 PRIVATE CONVERSATIONS
as they work to establish individualized and for employees to reach their full potential. typically initiated by our employees.
dynamic work arrangements.
• Support at key moments in an employee’s
• Visible and accessible to employees at all levels work experience delivered through caring,
of the organization, enabling two-way interactions personalized, human-centric assistance, 3 TWO-WAY COMMUNICATION
regardless of work location. enabled by easy-to-use technology for through forums and other initiatives.
more routine tasks.
2022 Human Capital Management Report | Cummins Inc. 29AWARDS
WORK-LIFE AT CUMMINS
Cummins workplace honors
Cummins received a perfect score for a 18th Cummins in 2020 was named to the National Business
consecutive year in the 2022 Corporate Equality Inclusion Consortium’s fifth annual Best-of-the-Best
Index by the Human Rights Campaign, the largest Corporations for Inclusion list of 50 U.S. corporations
LGBTQ civil rights organization in the United States. striving to strengthen and celebrate diversity and
The company was also named to the HRC’s list of inclusion at the highest levels.
the “Best Places to Work for LGBTQ Equality.”
Cummins was named in 2020 a Top Scoring Company
Cummins was named to the 2021 Best Corporate on the 2020 Disability Equality Index, a national
Citizen list, which ranks companies on their benchmarking tool offering businesses the opportunity
performance in addressing climate change, to self-report on their disability inclusion policies and “My first motivation for what
the environment, financial matters, governance, practices. The company was recognized for the index’s
workforce issues and more. Cummins ranked Best Places to Work for Disability Inclusion. I do, which is also the reason
No. 49 in the review done for 3BL Media. why I applied to work for
Cummins in 2020 was named to the 20th annual list of Cummins, is that I wanted to
Cummins was one of 240 employers named to the America’s Top Corporations for Women’s Business work on clean energy technology
2021 Military Friendly Employers list in the U.S. for Enterprises, honoring corporations for having world-
creating opportunities for veterans and their spouses class supplier diversity programs that reduce barriers that will shape decarbonization
through employment and supplier initiatives. and drive growth for women-owned businesses. across many different sectors.
The award is sponsored by the Women’s Business
Enterprise National Council. I’m truly passionate about the
Cummins was one of 21 U.S. companies named journey of the technological
“Culture Champions” in 2020 by a partnership
between the Massachusetts Institute of Technology Cummins in 2021 was named to the S&P Dow Jones evolution that we’re living in.”
and Glassdoor, one of the world’s leading recruiting World and North American Sustainability Indexes.
websites. The company ranked first in the study’s It was the 15th consecutive time the company was ARNAUD DE LHONEUX
category for promoting a diverse and inclusive named to the North American index and the first time
Engineer, Belgium
workplace culture. on the world index since 2013. The prestigious indices
rate companies on their environmental, social and
governance performance.
2022 Human Capital Management Report | Cummins Inc. 30Cummins Inc.
Box 3005
Columbus, IN 47202-3005
U.S.A.
cummins.com
Produced in U.S.A. 4/22
©2022 Cummins Inc.
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