Human Capital Management

NNS employees at workAt HII, we recognize that our employees are our most important assets and they set the foundation for the company’s ability to achieve its financial and strategic objectives. All of our employees contribute to HII’s success.  HII’s employees are the keys to driving operational execution, meeting customer expectations, providing strong financial performance, advancing innovation, and maintaining a strong quality and compliance program.

HII has approximately 42,000 employees. We are the largest industrial employer in Virginia and the largest private employer in Mississippi. We employ individuals specializing in 19 crafts and trades, with approximately 6,700 engineers and designers and approximately 2,800 employees with advanced degrees. Our workforce contains many third-, fourth-, and fifth-generation employees, and approximately 1,500 employees with more than 40 years of continuous service. Employees in our shipbuilding divisions with more than 40 years of continuous service achieve the honor of “Master Shipbuilder.” As of December 31, 2020, we had 1,281 Master Shipbuilders at Newport News and 226 at Ingalls. We employ more than 6,500 veterans across the enterprise.

In addition, over 1,100 apprentices are enrolled in more than 27 crafts and advanced programs at our two shipbuilding divisions. From nuclear pipe welders to senior executives, we employ approximately 4,400 apprentice school alumni, 3,100 at Newport News, and 1,350 at Ingalls.

Approximately 50% of our employees are covered by a total of eight collective bargaining agreements and one site stabilization agreement. Newport News has three collective bargaining agreements covering represented employees, which expire in November 2021, December 2022, and April 2024 respectively. The collective bargaining agreement that expires in November 2021 covers approximately 50% of Newport News employees. Newport News craft workers employed at the Kesselring Site near Saratoga Springs, New York are represented under an indefinite DoE site agreement. Ingalls has five collective bargaining agreements covering represented employees, all of which expire in March 2022. Approximately 25 Technical Solutions employees at various locations are represented by unions and perform work under collective bargaining agreements. We have not experienced a work stoppage in over 21 years at NNS and over 13 years at Ingalls.  We are committed to working effectively with our existing unions and believe our relationship with our represented employees is satisfactory.

The success and growth of our business depends in large part on our ability to attract, retain and develop a skilled and diverse workforce of talented and high-performing employees at all levels of our organization. To succeed in the markets in which we compete for labor, HII has developed key workforce development, recruitment, and retention strategies and objectives that we focus on as part of the overall management of our business. These strategies and objectives form the pillars of our human capital management framework and are advanced through the following programs, policies and initiatives:

  • Competitive Pay and Benefits. HII’s compensation programs are designed to ensure we have the ability to attract, retain and motivate employees to achieve our objectives.
  • We provide employee base wages and salaries that are competitive and consistent with employee positions, skill levels, experience, knowledge and geographic location.
  • We utilize nationally recognized surveys and outside compensation and benefits consulting firms to independently evaluate the effectiveness of our employee and executive compensation and benefit programs and to provide benchmarking against our peers within the industry.
  • The structure of our executive compensation programs balances incentive earnings for both short-term and long-term performance and we align our executives’ long-term equity compensation metrics with long-term shareholder interests.
  • Employees are eligible for health insurance, paid and unpaid leaves, 401(k) plans, and life and disability/accident coverage.  We also offer a variety of benefits that allow employees to select the options that meet their needs including, Annual Leave/Paid Time Off; paid holidays, flexible work arrangements/schedules; telemedicine; parental leave; transgender medical coverage; and a Wellness Program that includes physical, mental, and financial wellness.  We also fund the operation of Family Health Centers near our two Shipyards that provide a full range of medical, lab, pharmacy, dental, physical therapy, and vision services.  Our Company is unique in that we focus on the well-being of our employees and their families – their physical health, mental health, and financial health. We want them to be savvy consumers of health care, mindful savers who look to the future while budgeting for today, and willing seekers of help and mental health support when in need. More information on our strategies and programs can be found here:  BeWell Annual Report
  • Recruitment, Training, and Workforce Development.  Together, HII’s three divisions hire thousands of employees each year.  In 2020, HII hired over 6,000 new employees.  To help us meet this large demand for talent, we have worked to create, develop, and maintain multiple talent pipelines.  One of the key components of HII’s approach to workforce development is to “grow our own”.  We operate two Apprentice Schools, one at Ingalls and one at NNS.  The NNS Apprentice School was founded in 1919, Ingalls’ in 1952.  Combined they have graduated over 14,000 graduates since their inceptions.  The schools are nationally renowned and are a critical to training both our craft/trades and technical workforces as well as for developing the future leaders of our company.  Ingalls School has partnered with the Mississippi Gulf Coast Community College to permit their Apprentices to earn credits toward an Associate’s Degrees.  NNS’s Apprentice School has partnered with two community colleges and also with Old Dominion University which enables Apprentices to earn a Bachelor’s Degree in Mechanical Engineering, Electrical Engineering, or Modeling & Simulation.

In addition to operating our own Apprentice Schools, HII has developed and nurtured multiple partnerships with state and local governments, pre-k education providers, primary/secondary school districts, community colleges, and four-year colleges and universities, as well as post-graduate institutions.  HII also makes significant investments with monetary contributions, leadership time, and employee volunteer hours to support these critical partnerships.

This has led to effective partnerships with key colleges and universities, Military bases for transitioning veterans, and regional community colleges to enable us to recruit and hire engineering, IT, and other technical talent.  Working closely with state and local government leaders we have successfully facilitated local, regional, and state-wide workforce development and education initiatives ranging from pre-K programs, high school trades programs/talent development labs, pre-hire trades/technical community college programs, interns/co-ops with colleges and universities, adult trades programs, veterans and military spouses training programs, and unemployed/underemployed training programs.  For more information about our workforce development activities, please visit our website at:  Workforce Development – Huntington Ingalls Industries

HII also invests in our employees’ children through the HII Scholarship Program which provides financial assistance for pre-k programs and two/four year post-secondary programs.  In the five years since it was established, the Huntington Ingalls Industries Scholarship Fund has awarded 766 scholarships totaling over $2,000,000 to 449 children of HII employees.

  • The Program is administered by Scholarship America and funded primarily by Mike Petters declining his annual salary.  The fund is supplemented by individual and employee donations.
  • 221 awards/renewals totaling $663,000 have been provided to pre-kindergarten aged children of HII employees
  • 545 awards/renewals totaling $1,398,000 have been provided to children of HII employees pursuing post-secondary Associates or Baccalaureate degrees.
  • Now fully implemented, the Scholarship Fund is able to annually distribute up to $570,000 in scholarship awards.

For more information please visit our website at: HII Scholarship Fund – Huntington Ingalls Industries

The senior leadership team views our workforce as a “leadership factory” and have developed a robust and effective succession planning process that ensures continuity in our leadership ranks.  Since HII’s founding in 2011, we followed our succession plans 80% of the time when replacing a vacancy in an existing VP position, and for newly created VP positions we filled 75% with internal hires.

Employee Engagement

Since 2008, we have conducted an anonymous engagement survey annually of our workforce, both non-represented and represented. Administered and analyzed by an independent third-party, the survey results are reviewed by HII’s executive team and other senior leaders at our three divisions. The results of this engagement survey are also shared with individual managers and employees, who are then tasked with discussing the results, and working together to set goals and planning new actions that will enable their teams to perform better.  Over 79% of our workforce participated in the 2020 survey.  At HII we believe that at the individual level, engagement is about taking ownership of your work and work processes. At the enterprise level, it’s about creating an inclusive and highly collaborative culture where we all care about and encourage each other’s success and is a great opportunity for creating more value and transforming our business for the future.

Health & Safety

The health, safety, and well-being of our employees together with ensuring we protect the environment in the communities in which we operate is firmly rooted in our culture across HII’s enterprise and is one of our core values.  Particularly at our Shipbuilding divisions and at DOE sites where are Technical Solutions division employees work, we prioritize, manage and carefully track safety performance and integrate sound environmental, safety and health practices to make a meaningful difference in every facet of our operations.  Safety goals are also included in our operational metrics for NNS and Ingalls.  We use a wide variety of training courses, pre-job Take Five Crew talks, medical surveillance programs, and employee involvement efforts to help keep our workforce focused on EH&S.  At NNS and Ingalls a key component of our EH&S program is the utilization of Health and Safety Teams which are comprised of production & maintenance employees and front-line managers whose goal is to educate, engage, and empower our workforce toward a culture which strives to reduce injury, illness, and environmental impacts.  We use programs focused on identifying, reporting and abating near misses and others that aim to recognize, evaluate, and control hazards. In 2020, these teams performed 11, 431 area inspections and corrected identified hazards. In addition to area inspections, all employees are encouraged to participate in the Safety Improvement Program to identify opportunities in their work area to improve conditions rather than simply finding and fixing discrepancies. In 2020, HII implemented close to 2,500 safety improvements, easily exceeding the annual goal of 2,200.

During 2020, HII tracked several metrics related to occupational injuries as one method to monitor our safety performance among others.  We also track the number of implemented safety improvements year over year.  One of the key metrics is TCR – this is the number of OSHA recordable injuries per 100 equivalent employees. In 2020, the TCR for NNS was 4.77 compared to 4.67 in 2019 and at Ingalls was 6.35 in 2020 compared to 6.59 in 2019.  NNS also tracks DART (Days Away, Restricted or Transferred) – this is the number of OSHA recordable cases in which the employee is unable to work, cannot work due to a restriction, or can work with a restriction as a result of an injury per 100 equivalent employees.  In 2020, DART was 3.41 compared to 3.01 in 2019.  Ingalls tracks two other safety metrics – LTCR (Lost Time Case Rate) which is how many employees lost time per 100 employees, and LWDR (Lost Work Day Rate) which is the number of lost workdays per 100 full-time employees.  In 2020, the LTCR and LWDR at Ingalls were 2.53 and 56.37 respectively, and 2.39 and 56.82 in 2019.  We also implemented over 2,300 safety improvements in 2020, compared to more than 1,800 in 2019.

For more information about safety metrics, view our Employee Health and Safety metrics at Huntington Ingalls Industries (HII) Sustainability Accounting Standards Board (SASB) Disclosure 2020.

The Department of Defense designated our workforce essential to national security.  While HII’s production and support workforce has continued to work at our facilities and provide vital products and services to our government customers, many of our employees in our administrative functions have effectively worked remotely since mid-March.  Prior to the COVID-19 pandemic, we had less than 400 employees regularly working remotely.  At our peak, we have had over 11,300 employees working from remotely.

In response to the COVID-19 pandemic and related mitigation measures, we implemented changes in our business in March 2020 in an effort to protect our employees and customers, and to support appropriate health and safety protocols. For example, we began temperature screening and on-site testing for employees entering our shipyards, implemented extensive cleaning and sanitation processes for our shops, ships, and offices, re-engineered how some work was done in order to support social distancing requirements, and implemented broad work-from-home initiatives for employees in our support and administrative functions.  As we navigate through the challenges of COVID-19, employees across the enterprise have stepped in to prevent the spread of COVID-19 with cleaning of their own work areas, maintaining social distancing, and implementing work practices that allow them to work safely and stay healthy. The health and safety department plays a critical role in approving Safety Data Sheets in a timely manner to make cleaning supplies available to employees, evaluating work to ensure social distancing and face covering requirements could be maintained, and revising procedures to ensure alignment with changing CDC recommendations and guidelines.

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