Today Comparably compares the cultures of five companies in the Heavy Equipment Industry. This includes heavy metal tractor manufacturers and copying machines, as well. Looking at employee submitted data from the five companies – Baker Hughes, Caterpillar, Deere & Company, Parker Hannifin, and Xerox – to see whether these war horse companies have adapted to modern culture practices, or whether factory floors and headquarters are still operating like its 1978.
OVERALL CULTURE
Looks like a lot of stagnant, old-fashioned work cultures currently plague the industry. John Deere wins the first trophy with an unremarkable B- score. Runner-up Caterpillar barely avoids the D-level grade that hit all three of today’s other companies.
Baker Hughes: “Little team work. Wrong people put in position of authority.”
Caterpillar: “Need more job security. Older work force feels pushed out. No chance that we will retire with the company.”
John Deere: “They have a pretty rigid, old fashioned corporate culture. some things work, some don’t.”
Parker Hannifin: “Most here feel that we are not valued and that we are here to serve the shareholders.”
Xerox: “I’m neutral about the environment.”
CEO & LEADERSHIP
John Deere’s CEO Samuel Allen pulls out a second victory for the company with a lower-than-usual winning grade, barely beating out runner-up Thomas Williams, from Parker Hannifin. Caterpillar’s Jim Umpleby, Baker Hughes’ Lorenzo Simonelli, and Xerox’s John Visentin (who all rated notably low scores.) All five of the CEOs rated poorly among companies of a similar size.
Baker Hughes: “Leadership needs to get better at providing a vision of what are we going to be best at in the world.”
Caterpillar: “He seems to be trying to make slow improvement changes but he really needs to get a hold of one of the biggest problems. The human factor.”
John Deere: “Leadership needs to realize that they don’t produce anything tangible, and that their pay comes from the work of the people they’re treating like trash.”
Parker Hannifin: “The CEO is top notch and improvement driven, but doesn’t address the information systems issue.”
Xerox: “Leadershipis non existent, and when they do make their cameo appearances they operate from 25 years ago and expect similar results, turning a blind eye and tuning out the issues.”
COMPENSATION
Things are slightly less gloomy in the Compensation department, but once again none of our five companies rates a truly sterling passing grade. Taking a third easy win among an underachieving field is John Deere, who beat out runner-up Caterpillar by just a few percentage points. Baker Hughes, Parker Hannifin, and Xerox all got alarmingly poor scores here.
Baker Hughes: “Paid at the lower end of pay scale for high job knowledge and skill set.”
Caterpillar: “There is no stock sharing or employee equity in the company. No pension plans.”
John Deere: “I’m compensated fairly and much better than anywhere else in the area.”
Parker Hannifin: “I believe it is fair and equal.”
Xerox: “It’s better than nothing, feels like everyone is cutting back.”
PERKS & BENEFITS
Xerox takes its first trophy with – surprise, surprise – a relatively low score that still managed to take out the competition. Runner-up here was golden boy John Deere, with Caterpillar just behind that company. Baker Hughes and Parker Hannifin once again find themselves in the basement with ‘D’ grades.
Baker Hughes: “Savings plan, health insurance, dental ins.”
Caterpillar: “Yearly bonus of 2% of base pay.”
John Deere: “They think the old timers made the company. The post 1997 employees should have the same rights and privileges including wages and insurance after retirement.”
Parker Hannifin: “A wellness program, and company paid retirement plan.”
Xerox: “Health, Vision, STD, LTD, 401K, birthday pay with massage, dental.”
DIVERSITY
Deere wins for Diversity, earning just short of a B- grade from its employees. Xerox comes up second with the only other ‘C’ grade. The other three companies all rate D grades here, implying they operate like truly old-school American companies in terms of diversity.
Caterpillar: “Diversity among the races is good. Diversity among the genders up until salaried management level is bad. 25 men to 1 woman ratio in management role is typical.”
John Deere: “Lots of diversity where I am.”
Parker Hannifin: “Hardly any diversity at the high levels. Females in HR and almost all white males everywhere else.”
Xerox: “A fair amount of diversity.”
OUTLOOK
Baker Hughes: “Fired multiple people for doing nothing wrong. Turnover is awful.”
Caterpillar: “Caterpillar could be doing so much better if they would put a stop to the good ole boys club when awarding job promotions and actually hire qualified persons to fill management positions.”
John Deere: “I enjoy working with a highly aligned team with a great attitude.”
Parker Hannifin: “Improve the information systems, Parker is stuck in the 80’s and leadership is afraid to take a hit and upgrade to the 21st century.”
Xerox: “Every day we do more with less and less. Upper management has ignored the future and spent way too much resources on other company programs.”
Deere & Co. won this round and the whole competition, but the whole heavy machinery industry needs to be put on alert that in this day and age, retention and a healthy corporate culture go hand in hand. Unless these companies like a high turnover rate – and who does? – its time for them to drag themselves into the 21st century.
