VHA GOVERNANCE
& APPROACH
ETHICS &
COMPLIANCE
INNOVATION &
TECHNOLOGY
SUPPLY CHAIN
PRACTICES
WORKPLACE
HEALTH & SAFETY
ENVIRONMENTAL
FOOTPRINT

2016 SUSTAINABILITY REPORT

Developing a talented and engaged
workforce to continue expanding
our abilities to innovate and serve
our stakeholders.

Human Capital Management
ESCO Technologies is proud of our unique, collaborative culture. We maintain an organizational structure that promotes open communication and innovation. Our employees take on many different responsibilities—and as a result, have a deep working knowledge of our products and processes. ESCO depends on our team to keep us moving forward. We strive to build a strong, talented and dedicated workforce that shares our vision for progress.
Developing Strong Leadership

ESCO values the importance of talented, knowledgeable and ethical leadership. We select directors and executives with demonstrated industry experience who can bring a strong voice to the company.

Our organizational review process facilitates smooth leadership transitions for our executive and board member positions. We create succession plans, identify high potential talent, and make development plans to ensure we meet our future leadership needs. Each year, the Human Resources and Compensation Committee of our board reviews ESCO’s long-term CEO succession plan. To further mitigate risk, they have also adopted an emergency plan in the case of an unexpected succession event.


Recruiting & Managing Talent

As we grow, ESCO aims to build a pipeline for highly-skilled individuals to join our team. We expect the recruiting market to become more competitive and have adjusted our communications platforms for cultural and generational differences. We leverage social media and a variety of internet resources to reach different audiences.

Many of our employees express interest in our community and wellness initiatives. Their interest inspired ESCO to strengthen connections between our recruiting and sustainability efforts. When we recruit and interview, we highlight our volunteer and personal wellness initiatives. Through our practices, we strive to attract and retain the highest caliber of next generation workers.

ESCO also believes that employees of diverse educational backgrounds expand our ability to innovate. We recruit team members with a variety of industrial and technological experience who can offer unique perspectives to our work. Our goal is to create a positive, inclusive and engaging work environment that allows employees to do their best work—while mitigating the risk of turnover.


Enhancing Employee Engagement

ESCO works hard to foster an open culture where employees have a voice. Our Human Resources departments maintain calendars of regular employee meetings and offer employees an opportunity to participate in volunteer opportunities. Each of our subsidiaries has a wellness committee that organizes their own activities.

One example of employee volunteering and wellness at the subsidiary level is our shared garden at our PTI Technologies facility. Employees voluntarily rotate shifts of planting, maintaining and harvesting the fruits and vegetables. Many of our employees from diverse backgrounds leverage the garden to educate their colleagues on crops grown in different cultures.

The ESCO Technologies Foundation strengthens employee engagement by offering opportunities to enhance the communities where we live and work. We seek to make meaningful contributions to children and families through both financial and volunteer support.

Our employees value the opportunity to give back to others through their time and dedication. We offer opportunities for corporate and subsidiary employees to support activities in the regions where they work. All employees have the opportunity to contribute financially to the the ESCO Technologies Foundation through direct contribution, stock designations, and payroll deductions. These dollars go towards our philanthropic causes, including scholarships awarded to the children of ESCO employees and grants to our core charities. Together, we live our values and serve our communities through our shared commitment to better lives for all.

We find that engaged employees are more likely to earn recognition, attend training and take accountability for their work. ESCO periodically conducts employee engagement surveys to measure our progress. We ask questions such as “Do you feel your input is recognized?” and “Do you feel you are able to utilize your skills?” After the survey, we conduct focus groups to gain better understanding of specific topics. This helps us to identify our strengths and opportunities, which provide direction for future improvement.


Employee Compensation & Benefits

Our employees dedicate their time and effort to our company daily. ESCO is committed to providing competitive compensation and benefits that reflect the value our team provides. We have a 401(k) plan with an above-average participation rate that we encourage our employees to utilize. We provide fair wages to our employees and reward performance when possible. Certain senior employees receive part of their compensation in the form of shares of ESCO restricted stock, which supports aligning the employees’ personal financial interests more closely with ESCO’s long-term corporate goals. We offer an employee stock purchase plan to all full-time US-based employees.


Employee Training

ESCO recruits individuals with strong technical skills and the ability to learn quickly. We look for people who can immediately contribute to our success. Our subsidiaries have various onboarding programs including matching new hires with experienced employees who coach them through their new responsibilities. Many of our subsidiaries have a diverse platform of online training courses that are customized to individual learning needs. For example, every employee completes our course on ethics and harassment, but someone who designs circuit boards may take specialized training. Several of our subsidiaries also have mentor programs to guide and develop leadership and technical skills of key or high-potential employees.


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