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John Deere

Winning years: 2007, 2006, 2005, 2004, 2003
Industry: Industrial Equipment and Commercial Machinery
Location: Moline, IL
URL: www.johndeere.com

Highlights of 2007 Winning Strategies

John Deere uses its retiree work force to meet customer needs. Retirees engage in temporary work assignments, with 503 participating in the past 12 months.

Additional Policies and Practices:

• Recruiting: To target mature workers, John Deere uses senior placement agencies.
• Workplace Culture/Continued Opportunities: To its full- and part-time employees, John Deere offers these learning and development programs: tuition reimbursement, in-house classroom training, on-line training, and certification classes. In the past 12 months, 90% of John Deere employees participated in at least one of the training opportunities with an average of 20 hours spent in training. Results from employee opinion surveys have led to improvements in career development, performance management, employee networks, and succession planning. Employees are provided with growth opportunities by participating in temporary assignments in other departments, team projects, and job rotations. John Deere accommodates employees with unique needs by offering flexible work hours (flex-time, working from remote location, and telecommuting) to meet work/life issues; granting leaves of absence for personal and educational reasons; and offering preferred parking and special office set-up for medical reasons.
• Benefits/Health: Full- and part-time employees receive individual and family medical coverage, individual and family prescription drug coverage, individual and family vision and dental insurance, individual and family long-term care insurance, and short- and long-term disability. Health benefits for retirees pre-65 and 65+ include individual as well as spouse medical and drug coverage, vision and dental insurance, long-term care insurance, and life insurance or other death benefit coverage. New hires are not eligible for these benefits upon retirement. The company offers an FSA plan to assist employees with out-of-pocket health care costs.
• Benefits/Financial: John Deere offers full- and part-time employees a 401(k) retirement plan and provides a match. Full-time employees are also eligible for stock options. All new hires may automatically enroll in the plan, employees may choose to invest in lifecycle funds, and employees 50+ can make catch-up contributions. Employees receive financial planning information from the firm that administers their 401(k) and from a financial planning website. John Deere offers a liberal short-term time off with pay policy and long-term leaves of absence without pay to allow for caregiving. These wellness programs are offered to employees: flu shots, health screenings, health risk appraisals, smoking cessation programs, health club discounts (full-time only), physical activity/exercise programs, and weight loss programs. John Deere offers dependent care services such as backup care for eldercare and referral services to assist with childcare/eldercare to its full- and part-time employees. Through United Way and other agencies, the company may provide funding to childcare and eldercare programs where John Deere facilities are located.
• Benefits/Alternative Work Arrangements: John Deere offers these alternative work arrangements to its full- and part-time employees: flex-time, compressed work schedules, telecommuting, and a formal phased retirement program in which the employee moves to working part-time hours. Full-time employees are eligible to move to part-time work on a permanent and temporary basis.
• Opportunities for Retirees: John Deere currently has 25,000 retirees and has an individual directly responsibility for retiree relations. The company stays connected with its retirees by inviting them to organization events/celebrations and formally acknowledging retirees when they retire.
• Age of Workforce: Thirty-seven percent of John Deere employees are 50+. The average tenure of employees age 50+ is 23.6 years.

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Winning Strategies 2006

John Deere's comprehensive health benefit plan is offered to any employee working at least one hour per week. Thirty-six percent of the company's employees are age 50+ and the average tenure of employees age 50+ is 24.6 years.

Other Benefits:

• Recruiting: John Deere uses senior placement agencies to target mature workers for employment.
• Workplace Culture/Continued Opportunities: The company offers the following learning and development programs to its full- and part-time employees (working at least one hour per week): tuition reimbursement (10% used in past 12 months), in-house classroom training (75% used in past 12 months), on-line training (5% used in past 12 months), and certification classes (3% used in past 12 months). Long-service anniversaries are celebrated with announcements, parties, and awards.
• Benefits/Health: Full- and part-time employees (working at least one hour per week) receive individual and family medical coverage, individual and family prescription drug coverage, individual and family vision and dental insurance, individual and family long-term care coverage, as well as short- and long-term disability. Of all employees 98% are enrolled in all of the above benefits, excluding the short- and long-term disability plans (information not provided). Health benefits for retirees pre-65 and 65+ include individual as well as spouse medical and drug coverage, vision, dental, long-term care, Employee Assistance Program services, as well as life insurance or other death benefit coverage. The company offers a health flexible spending account.
• Benefits/Financial: The company offers several retirement savings plans to its full- and part-time employees: a defined benefit plan, a 401(k) plan, and stock options. The company 401(k) match is variable, based on company performance; there is a higher match on the first 2% of pay the employee contributes, and a lower match on the next 4% with a maximum of 6% employee contribution. All new hires are automatically enrolled in the 401(k) plan, employees may choose to invest in lifecycle funds, and employees age 50+ can make "catch-up" contributions. The company offers referral "services to assist with child care and elder care. The following wellness programs are offered to full- and part-time employees: flu shots, health screenings, health risk appraisals, smoking cessation programs, exercise programs, and weight loss programs. Full-time employees also receive discounts to local health clubs.
• Benefits/Alternative Work Arrangements: The company offers alternative work arrangements such as flex time, compressed work schedules, telecommuting, and a formal phased retirement program to full- and part-time employees (working at least one hour per week). The phased retirement program allows a full-time employee to move to part-time work. Full-time employees are eligible to move to part-time work on a permanent or temporary basis.
• Opportunities for Retirees: The company currently has 25,000 retirees. There is an individual within the company who has direct responsibility for retiree relations. The company stays connected with its retirees by inviting retirees to organization events/celebrations. Retirees are offered the following work arrangements: temporary work assignments, consulting/contract work, telecommuting, as well as part- and full-time work.
• Age of Workforce: Of all the company's total number of employees, 36% are 50+, and 10% of the company's past 12 month new hires are 50+. The average tenure of employees age 50+ is 24.6 years.