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Employee natural turnover in trend countries decreased to 13.4% which is below our 2014 goal of 14%. While some affiliates, such as Australia, have reversed an upward trend in turnover through targeted intervention, there is still more work to be done to improve turnover in certain affiliates, particularly where the competition for talent is strong. With enhanced intelligence on the factors influencing voluntary turnover, and an increased focus on employee engagement through our SHINE and CATALYST initiatives, we will continue to proactively manage this area of performance. Our gender ratio of female to male employees remains broadly unchanged, while our equal opportunity ratio of female/male managers as a proportion of female/male employees is markedly improved at 0.75. Training costs as a proportion of employee costs decreased by 13.6%, against 2013, to 0.63%. The average hours spent on training per employee has increased by 31.5% to 40 hours per employee. This reflects a greater focus on training – including training in technical and managerial skills, Operational Integrity training, and employee on-boarding. The proportion of employees completing annual performance appraisals has increased against 2013 to 67.3%.

Charts are available in our Data Bank on the following pages:

Natural Turnover

Gender Equality


Performance Review

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  • 2014 Progress Against Targets

    2014 Commitment Status Update on Progress
    During 2014, we will roll out the recruitment module and pilot the learning management system module of our HR information system

    Launch e-recruitment in all affiliates by end of 2015
    On track

    E-recruitment was launched in 16 affiliates during 2014 and is on schedule to be implemented globally by the end of 2015

    During 2014, we developed a critical talent program focusing on high potential managers and technical experts
    We will continue to benchmark critical job roles in 2014 and launch the rewards and recognition element of our HR information system to improve performance monitoring and reporting of data linked to remuneration On track
    Monitor employee feedback on SHINE using the 2013 baseline, on a continuous basis On track During the period 2013-2014, 89% of employees responding to our SHINE feedback survey were satisfied or highly satisfied with their onboarding experience
    Improve performance monitoring and reporting of data linked to remuneration by benchmarking critical job roles and pilot the rewards and recognition element of our HR information system in 2014 We benchmarked critical job roles and we piloted the rewards and recognition element of our HR information system during 2014
    We will continue to support the affiliates in developing a globally consistent approach to L&D while ensuring that it reflects local business priorities On track We collaborate with affiliates on aligning learning programs to business priorities
    Develop and pilot third module of Leadership Development Program in 2014 Behind schedule Our critical talent program will replace the planned third module of the leadership development program
    Design the learning management system element of our HR information system for progressive roll out in 2014 and 2015 On track We piloted the learning management system and this is on track for roll out in 2015
    Further develop our approach to conducting and measuring formal performance reviews during 2014 Behind schedule Following feedback from our CATALYST employee survey in 2014, we have been working with managers to improve their support of employee growth and career progression
    Expand the number of employees participating in CATALYST in 2014 Achieved Over 36,000 employees took part in the survey in 2014 compared to 26,000 in 2013
    Repeat the Global Corporate Challenge in 2014, aimed at improving health and wellbeing and reducing sickness absence Achieved 2,583 employees across 369 teams in 34 countries took part in the Challenge in 2014
    Revise the sustainability e-learning modules in line with our new strategic Plan and sustainability targets, for launch in 2015 On track Sustainability learning content was revised and will be launched through a series of sustainability videos from early 2015
    2014 Goal Status Update on Progress
    Natural turnover <14% by 2014

    Natural Turnover

    Achieved Natural turnover has decreased by 5.6%, against 2013, to 13.4%, and remains one of the highest areas of spend in our Green Book. Performance varies between affiliates, with turnover remaining low in Europe due to the economic situation and increasing slightly in countries where it has been historically high. In one of our affiliates the increase can be explained by the relocation of the head office. Through our programs to ensure we recruit the right people, integrate and develop them, we expect turnover to continue to decrease.
    Training costs as a percentage of total employment costs to be 1.0% by 2014


    Not achieved This ratio has decreased by 13.6% against 2013, to 0.63%. The average hours spent on training per employee has increased by 31.5% to 40. As previously reported, we recognize that the cost of training as a proportion of total employment costs may not be the most meaningful indicator of our investment in training. This is because the methods of training – such as e-learning and cloud-based platforms - which are designed to improve accessibility, are also more cost-effective. A more accurate measure of our investment in training is the time spent by employees on their learning. Our performance on training hours reflects a greater focus on training in technical and managerial skills, Operational Integrity training, and employee on-boarding.
    100% of employees receiving regular performance reviews by 2014

    Performance Review

    Behind schedule 67.3% of employees received regular performance reviews, an increase of 4.1%. Performance reviews vary between affiliates, with some currently reviewing their performance management systems. We will focus on improving the performance measurement in this area while also continuing to reinforce the importance of all employees receiving regular performance reviews
    Sickness absence rate <1.5% by 2014

    Sickness Absence Rate

    Almost achieved Sickness absence has remained stable at 1.53%. The Global Corporate Challenge initiative, first launched in SGS in 2013, will continue in 2015 to encourage more of our employees to maintain healthy lifestyles

  • Our 2015 Commitments

    • Launch global core leadership competencies by mid-2015. These competencies will support our critical talent program
    • Pilot critical talent program in selected regions, identifying up to 20 people per region
    • Pilot new management development program involving structured development plans with defined objectives
    • Extend the scope of CATALYST to more than 50,000 employees