Rolls-Royce plc

The overview

Not to be confused with the luxury car brand from which it separated in 1973, Rolls-Royce is a producer of engines, turbines and other power systems for a range of applications, including aircraft, marine vessels and energy production. With 38,000 employees in 50 countries worldwide, the company is a global giant, and achieved turnover of £11.1b in the 2011 financial year.

Areas of operation

The company's biggest business, accounting for over 40% of annual turnover, is the civil aerospace division, which produces engines for more than 30 different commercial aircraft types. According to former chairman Sir John Rose, some 200,000 people are travelling in Rolls-Royce-powered planes at any one time, and 650 airlines, lessors and freight companies (along with 4,000 corporate operators) currently use its engines.

The company’s defence aerospace business is the second-biggest producer of military engines and products in the world, with 160 clients in 103 countries. A total of 18,000 engines are currently in service in functions like combat, reconnaissance, training and transport, and are used in helicopters, jets, and unmanned aerial vehicles.

In marine, the company is a market leader, with over 2,500 customers using its equipment on more than 30,000 vessels in the fishing, merchant, offshore, naval surface ship and submarine sectors. Products and services include:

• Automation and control equipment (eg dynamic positioning and integrated bridge systems).
• Deck machinery (eg fishing winches, platform mooring systems and offshore vessel systems).
• Electrical power systems.
• Propulsors (eg propellers, tunnel thrusters and waterjets).
• Ship design (including offshore vessels, naval support vessels, merchant ships and fishing vessels).
• Syncrolift shiplifts and transfer systems (used to lift boats out of water for repair and maintenance).
• Submarine equipment (eg energy storage, flexible coupling and turbo generators).
• Technical support.
• Training.

Rounding off the company’s business units is the energy division, which makes compressors, fuel cells, turbines and power units (both gas and diesel) for different energy producers, and the nuclear division, which supports production at nuclear plants.

Clients

Unsurprisingly, its clients tend to vary by business unit, and include:

• Civil aerospace: All Nippon Airlines, Egyptair, Lufthansa, Monarch Airlines, Singapore Airlines.
• Defence: German Army Aircorps, NATO, Royal Air Force, UK Ministry of Defence.
• Marine: Royal Navy, US Navy, Australian Maritime Safety Authority, Foss Maritime, Trinity House.
• Energy: BP, Statoil and Sonatrach (via the Salah Gas project), Braintree Electric Light Department, Europac, Northern Border Pipeline, Petrobras.

Business opportunities

The company has placed a strong emphasis on global expansion in recent years, and says it expects to double its size in the next 10 years. This move towards growth has placed it in good stead for the future, enabling it to access many of the world’s biggest growth markets such as China.

It also benefits from its continued investment in research and development, on which it has spent more than £3.5b in the past five years. As well as helping it comply with increasingly strict environmental regulations – a key issue for the industry as a whole – this has helped bolster its range of products, services and capabilities.

Increasing demand for commercial aircraft and turbine helicopters is expected to provide numerous development opportunities in the coming years, and global defence spending is also expected to rise. According to its own forecasts, countries like the US, Japan, South Korea and India are likely to lead this growth, so look out for further developments in these areas.

Rankings and awards

• Constituent of the FTSE 100.
• Ranked 403 in the 2011 Brandfinance top 500 most valuable brands.
• Ranked number one in the Centre for Brand Analysis business superbrands official top 500 in 2011 (and has consistently been in the top ten since 2008).
• Included in Fortune’s 2011 list of the 350 most admired companies in the world – it ranked eighth in the aerospace and defence industry in the same report.
• In the top 5 of the Reputation Institute’s latest survey of public opinion, which covers the top 200 companies by market capitalisation and revenue.

Salary and benefits

Rolls-Royce runs two graduate programmes for which the following are the current starting salaries:
Professional excellence programme: £26,300.
Leadership development programme: £28,800.

Other benefits

• A £2,000 joining bonus.
• 33 days’ holiday per annum (including eight statutory days).
• Bonus scheme offering a lump sum equivalent to up to two weeks’ pay (dependant on company performance).
• Pension scheme.
• Share plans.
• Life and accidental injury insurance.
• Flexible working.
• 24-hour counselling service.
• Payroll charity donations.
• Career break options.

Culture and values

In addition to its core behaviours framework (see the Competences and qualifications section in ‘How to get hired’) Rolls-Royce has a set of three key values with which it identifies its culture:

• Innovation: taking a flexible and forward-thinking attitude, and continually seeking improvement.
• Integrity: ensuring ethical issues are considered in all of its operations.
• Reliability: commitment to meeting customers’ needs and deserving their trust.

The company also has a ‘people approach’ to govern its workforce management, which focuses on several key themes: globalisation, standardisation, health and safety, flexibility and capability (namely rewarding its top performers).

Working conditions

Reportedly, there is a decent work/life balance at Rolls-Royce, with most employees working normal office hours with little overtime. Although important projects can result in some longer days, this is unlikely to be the norm. There is also the option of flexible working, so some variety may be possible.

A reverse-mentoring scheme lets top execs learn from juniors.

There isn’t a heavily corporate atmosphere, although this will likely vary between divisions and business functions. The company itself notes that the dress code is vastly different depending on the role; some people may wear business dress, while others will wear company polo shirts (most likely those in more hands-on technical jobs – a tie is hardly appropriate for work on turbine components).

This relaxed attitude seems to translate to relationships with managers, as many graduates and work placement participants say that even senior staff members are friendly and willing to help out when needed.

Taking the flat structure a step further, a reverse-mentoring programme was recently launched to help top executives learn from their juniors. The scheme will see senior managers mentored by colleagues lower down the career ladder, who will hopefully give them a fresh view of the business and even their own management techniques.

Employee engagement surveys

The company carries out an engagement survey of its employees twice each year; this is aimed at gaining insight into employees’ views and identifying any issues they may have. According to the latest findings, members of staff said they:

• are proud to work for Rolls-Royce.
• are challenged by their work.
• believe that the company is responsible.
• consider themselves to be treated fairly.