Select from the following icons to learn more about our energy and climate change programs.
Talent Acquisition
We seek talented, professional and creative people. We select people based on a combination of skills, competencies, experience and motivation using a systematic approach to short-listing candidates and conducting competency-based interviews.
- Diversity and equal opportunities: We base all aspects of our employment relationships on the principle of equal opportunity and we believe that all employees must be treated and evaluated solely on their job-related skills, qualifications, behavior and performance. Discrimination is not tolerated
- All employees and managers are trained in the principles of non-discrimination as part of our mandatory annual integrity training (see our section on Professional Excellence). In addition, we develop programs to promote diversity across our global network. For example, our HR Discovery Pass fast-tracks high potential HR professionals through a series of six-month placements in different regions to experience our diverse network of skills, languages and cultures. Affiliates also engage in programs designed to embrace inclusivity within and outside the company. For example, SGS Australia has submitted an application to the Australian Government to be accepted as a workplace gender equality employer. Similarly, SGS Spain has signed the Spanish diversity charter, Charter Diversidad 2015-2017, which commits the company to complying with equal opportunities and anti discrimination legislation. This means adhering to a number of basic principles, such as equal opportunities and respect for diversity in the workplace and making progress in building a diverse workforce by fostering the inclusion of a diverse range of people, of different gender, race, nationality, ethnic origin, religion, belief, age, sexual orientation, and disability
- SGS Employer Brand: The SGS employer brand helps us to communicate to internal and external audiences what distinguishes us as an employer
- E-recruitment: E-recruitment has become a significant channel for attracting and acquiring talent across the SGS network. During 2015, SGS continued its strategic partnership with LinkedIn, and noted a significant increase in the number of followers via this network – from around 14,000 in 2012 to more than 220,000 by the end of 2015. As well as posting information about job vacancies, we increasingly use this platform to share people-related content, as well as notices of forthcoming events, such as careers conventions, and testimonials from employees. We have found this to be particularly useful in helping people to understand more about our company and the SGS employer brand
- Building a talent pipeline: We offer opportunities for graduates and undergraduates to work alongside professionals on challenging client-based projects across a range of industries. We also provide targeted, regional training programs in key disciplines. For example, our HR Discovery Pass, launched in 2012, aims to build a talent pipeline in HR management. High-potential HR professionals are recruited to complete six-month assignments in three company locations around the world. The aim is to develop their skills and enhance their knowledge of diverse cultures and businesses within SGS in order to actively contribute to the company’s ongoing success
- Employee on-boarding: SHINE is our global onboarding program for new recruits. It takes a structured approach to making a significant, positive impact within the first six months of an employee’s journey at SGS. The program, supported by managing directors, HR, line managers and peer advisors, aims to make every new employee feel that they are supported in their role and are engaged in the company’s principles, values and business aims. Welcoming employees to our company in this way helps them to settle in more quickly and enables them to fulfill their objectives. During 2015, we introduced a ‘lite’ version of the program which has proved to be useful to affiliates employing short-term contract workers
Monitoring employee natural turnover
In a dynamic employment market, employee turnover is a challenge and managing it remains a priority at SGS. In particular, there is 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, we will continue to proactively manage this area of performance.
Our Green Book provides senior managers with detailed analysis of the financial impact of our sustainability performance using a range of sustainability indicators, including natural turnover. By reporting comparative performance across affiliates, the Green Book identifies notable ‘hot spots’ which may impact the bottom line if they are not effectively managed. A number of affiliates are actively using the Green Book to inform strategies aimed at tackling employee turnover.
Back to top
Talent Development
Our global learning and development strategy uses a collaborative approach to helping our people to reach their full career potential while delivering high performance business results. Our programs are designed to equip employees to meet customer requirements and our own standards. A combination of corporate-led and locally-developed programs are used to develop employee, manager and leadership competencies using vocational, technical and compliance training which ensure that our employees retain necessary certifications and qualifications as part of their continuing professional development.
During 2015 we invested more than CHF 16,7 million and 2,7million hours on learning and development. We continue to transition from classroom learning for many programs to virtual learning through e-learning, videos and cloud-based applications. Not only is this more cost effective, it reduces the need for employees to travel to training courses and promotes a better work-life balance. Given this rationale, a more meaningful measure of our investment in training is not so much about spend per FTE but FTE hours spent on training.
-
Global HR curriculum: During 2014-2015, we developed a global HR curriculum to standardize HR capabilities across our network. Applicable to all senior HR professionals with at least six months’ employment with SGS (e.g. regional and country HR managers and potential successors), the HR curricular is specifically designed to:
- Align HR capabilities with SGS business growth plans and objectives
- Enhance understanding of business needs and expectations
- Develop skills within our HR teams
- Drive consistency in our HR practices
- Grow a robust HR talent pipeline
Recognizing that competencies vary from one job type to another, we have identified three professional role categories (‘HR Tracks’), and defined five competencies under each. The HR Tracks are defined below:
- HR Organizational Architect (HROA) – focused on aligning business structure, processes and policies with organizational culture, values and strategy
- HR Systems and Processes (HRSAP) – focused on effective operational execution
- HR Credible Activist (HRCA) – focused on credibility and proactivity
Competencies are assessed based on degrees of proficiency, ranging from basic understanding to subject matter expert. Knowledge or skill gaps identified through the assessment and discussion phase are addressed through recommended learning and development activities. Targeted development through tailored Individual Development Plans (IDP) is also encouraged. Following a pilot of the Global HR curriculum in November 2014 involving 14 countries, 86% of the pilot group found the curriculum useful for their professional development and believed it will bring value to SGS. Based on the pilot learning, the program has been extended to 45 countries in 2015, and will be extended further in 2016
-
Individual development plans (IDPs): IDPs record three developmental goals that are jointly agreed and monitored by employees and their manager. The goals must be aligned with business objectives, consider career aspirations and what would be required to succeed in these roles, and functional and technical training skills. The development methods used for IDPs is based on the 70:20:10 model, which we have adopted across our organizational learning strategy.
-
Critical talent program: Our program focuses on high potential and high performing managers and technical experts; people we identify as having talent that is critical to business success. We aim to develop talented leaders within SGS through effective high level succession planning, which creates more visibility of critical talent across our global network among members of the Operations Council. Managers identified as critical talent will have structured development plans which align with our individual development plans (IDPs)
-
Leadership development: In view of our new leadership competency model we are redefining our leadership development program. Also, given changes in our leadership team during 2015, we have decided to pilot our new leadership development program in 2016
-
Management development: Alongside our revised critical talent program, we aim to revamp our management development program. We will design a framework to enable affiliates to develop their own programs for specific business and geographical needs. Mirroring our critical talent program, the management development program will involve structured development plans with defined objectives, and will draw on the excellent work being undertaken in our affiliates. (See our Case Studies section for details of our Essentials of Management and Leadership course launched in 2015.) As with our leadership development program, we have decided to defer deployment of our management development program until 2016
-
Performance management: 2015 has been a year of transition in how we manage performance management at SGS. First, we introduced the 2015 Annual Incentive Plan (AIP), which takes into consideration, alongside financial indicators, individual performance objectives and behaviors. Second, we deployed the new performance management format, encompassing a generic objective for all SGS employees to perform the requirements of their job, with greater emphasis on third party feedback. These two elements will eventually allow a more documented and more accurate end-of-year evaluation. Finally, TalentForce was implemented, our new HRIS tool to track performance management initiatives.
Feedback from employees through our 2015 CATALYST survey indicates there is more to be done to provide employees with feedback to help them achieve their growth and development potential within SGS. Just over half of employees agree that they can achieve their career goals at SGS, and feel that there is a promising future for them at SGS. This suggests that employees need greater clarity on what their future may hold at SGS, and better understand what potential career paths may be available. Below are details on the actions we are taking to address these issues:
- Annual performance reviews: In addition to TalentForce, managers and supervisors are expected to conduct a formal dialogue with employees every year to review performance in relation to their job description, expectations and goals. Training, guidance and on-line tools are provided to managers and supervisors to ensure that employee performance is fairly assessed and to ensure a consistent approach. Training includes modules on objective setting and evaluating performance, the latter of which will be modified in 2016 to align with our critical talent program. In 2015, 67% of employees received regular performance reviews, compared to 66% in 2014.
-
- TalentForce: Our new performance management learning module was launched in 34 countries in July 2015. The program, which focuses on structured development planning, was the result of feedback in our CATALYST employee engagement survey which suggested that employees expected more from SGS to help them develop their careers and growth. Further dialogue revealed that employees were looking for something pragmatic and logical. TalentForce is a tool powered by Oracle that will revolutionize the way that SGS employees operate and support major Group initiatives, through the effective deployment of SMART objectives and development planning, and progress monitoring. We are currently implementing TalentForce at our headquarters in Geneva through our Core HR system and we expect it to be fully integrated by mid-2016. Workshops on how to manage end-of-year evaluations, from both management and TalentForce perspectives have been made available in Q4 2015 and early 2016. These workshops, together with newly deployed resources (such as a toolkit, guidelines and remote learning tools) will support employees and managers to complete the 2015 performance management cycle by the end of January 2016.
- Sustainability learning: Since 2010, SGS has provided sustainability learning to new and existing employees. In 2015, we migrated from e-learning modules to a series of short animated videos using drawings and voiceovers. In the first year, we launched three videos: Sustainability at SGS; SGS Sustainability Highlights 2014 (also available on YouTube); and SGS and Climate Change (developed as part of our preparations for the COP21, climate change conference in Paris in December 2015 and also available on YouTube). To date, 2,723 of employees have downloaded the videos and, following positive feedback, we plan to launch further videos in 2016 aimed at engaging employees across our network in our sustainability programs.
Our sustainability videos complement other sustainability learning initiatives in our affiliates. For example, SGS Spain produced a newsletter for employees to coincide with World Environment Day. This featured details of our ISO 14001 certified environmental management system in the Madrid office, and the actions that employees can take to reduce waste while maximizing resource efficiency
Back to top
Remuneration
SGS offers competitive remuneration and benefits to employees. Our standard entry-level salary rates are set by business lines and regions, and are equal for men and women. Thereafter, salaries are influenced by various factors including relevant experience and performance, the local labor market and local regulations. Remuneration is benchmarked across industries and geographies to ensure internal consistency and external competitiveness. While we do not use external consultants to give their advice on specific cases, remuneration is determined by factors such as external remuneration benchmarks and cost of living indices at country level.
- Benefits: We provide competitive and industry-appropriate benefits to all part-time and full-time employees on permanent contracts. These are largely determined at affiliate level. In Geneva and other locations worldwide (such as Australia, USA, France, Taiwan, Canada, South Africa, Ghana and Brazil), benefits including retirement plans, healthcare benefits and disability and life plans, as well as emergency evacuation on medical and security grounds while traveling on business, are provided to full- and part-time employees on permanent contracts.
- Rewards: The financial contribution of our sustainability performance, as measured through our Green Book, directly impacts our operational efficiency which is linked to the bottom line. Bonuses are paid based on the profitability of the business, as measured at local level. Employees are rewarded for their contribution through performance-related pay and variable remuneration such as incentive plans.
Executive remuneration is awarded in line with long-term company and shareholder interests and is approved by the Remuneration Committee.
Our new annual incentive plan, which formally links business and team performance to reward, will be further deployed in 2016 after a first wave which took place in 2015.
How SGS incentivizes sustainability performance
Certain functional roles (for example in Environmental Services, Systems and Certifications Services, Agricultural Services, Minerals Services and Consumer Testing Services) are financially rewarded when generating business related to climate change (for example: environmental and social impact assessment, emission trading verification, wind turbine blade testing, carbon footprint, life cycle assessment). Targets against which performance is assessed are set annually as part of the SGS performance management process.
SGS issues rewards outstanding personal achievements, which may or may not be linked to financial performance, including actions on climate change relief. SGS has a sustainability ambition to reduce CO2 emissions (per revenue and headcount) by 20% by 2020 using a 2014 baseline. To achieve this, our affiliates are expected to work on reducing electricity consumption and fuel consumption and costs. Assisted by our Green Book, senior managers are able to assess and monitor the financial impact of our sustainability performance, including our carbon footprint. The Green Book includes specific KPIs related with electricity consumption and pricing. These enable us to measure reductions in costs and the ensuing increase in margins which have the potential to contribute towards a discretionary cash bonus. In addition, we will introduce a specific sustainability KPI in management remuneration as part of our 2020 ambitions. This KPI will be based on the achievement of our 2020 sustainability ambitions.
Back to top
Engagement & Wellbeing
Employee engagement survey: During 2015, 30 countries and Headquarters participated in our employee engagement program, CATALYST. Countries operating CATALYST for the first time included Austria, Bosnia, Colombia, India, Italy, Peru, Poland, Slovenia and Uruguay. Through our annual survey, employees are encouraged to share confidential feedback on our strengths and the areas for improvement at organization, team and leadership levels. The findings help us to gauge the level of employee engagement over time, celebrate success, prioritize issues, allocate resources and drive business performance.
Over 31,200 employees were invited to participate in CATALYST and 87% (representing 26,681 employees) responded to the survey, which is the highest response rate we have received to date. The survey, comprising more than 50 questions (including new questions in 2015 linked to remote working and employee volunteering), uses two defining indices:
- Employee Engagement Index (EEI), which measures the extent to which employees are motivated to contribute to organizational success
- Performance Excellence Index (PEI), which measures the extent to which employees believe the company is committed to excellent customer service and organizational excellence
By ranking both indices against global norms, our 2015 findings show that our EEI at 68% (up from 64% in 2014) and our PEI at 71% (up from 70% in 2014) are positive scores, especially encouraging given the structural and leadership changes taking place in the company at the time of the survey. Despite there being the same number of countries involved in the survey this year, the smaller sample of employees being surveyed was the result of certain countries who had participated previously, not hosting the survey this year, to allow them to address issues arising from previous years.
We are especially pleased that both the EEI and PEI have increased from last year. Furthermore, the Sustainability Engagement Index (which is unique to SGS) continues to show a high level of employee engagement in our sustainability program, with 77% of employees recognizing the role that sustainability plays in supporting our business aims and 80% understanding what sustainability means to their role and how they can actively contribute to our sustainability performance. Other key findings reveal that integrity is the value that employees most relate to, 80% of employees are proud to work for SGS, and 73% believe that we regularly use customer feedback to improve our work processes. However, employees want to know more about the direction SGS will take in the future, and they need greater clarity on how they can achieve their career goals at SGS.
Employee representation and consultation: Collective bargaining agreements exist in most of the countries we operate in. We strictly adhere to tariff structures and collective bargaining agreements negotiated with trade unions. In countries where freedom of association or collective bargaining is restricted by law, we facilitate parallel means of independent and free association and bargaining. In 2015, 28% of our employees were covered by collective bargaining agreements. We recognize the need to inform and consult employees on relevant business activities. For example, we respect statutory minimum notice periods and give reasonable notice of any significant operational changes in line with local practices and labor markets. Minimum notice periods are specified in collective bargaining agreements between SGS and trade unions or employee works councils.
Our affiliates operate communications and consultation processes tailored to local needs. Within the European Union, the SGS European Works Council (otherwise known as the Euroforum) ensures constructive dialogue with elected employee representatives on relevant transnational issues. During 2015, the leadership team signed an amended European Works Council agreement covering the next four years, and new employee representatives were welcomed to the group. Chaired by the Chief Operating Officer, Northern and Central Europe, the Euroforum held a meeting in October in Edinburgh, which was attended by the CEO, the Senior Vice President Human Resources, the UK Managing Director and Chief Operating Officer Western Europe, the Vice President Corporate Sustainability, and the Vice President Operational Integrity. A series of questions were posed to management by Euroforum members on behalf of employees in their affiliates. These broadly related to three core themes: business strategy, people management (including safety and health), and sustainability. (See our section on stakeholder dialogue for more detail on this consultation and the responses from management to the questions posed at the Euroforum.)
Wellbeing: During 2015, teams across SGS participated in the Global Corporate Challenge (GCC). Aimed at reducing stress, encouraging team spirit and improving the health and wellbeing of employees, the Challenge was an opportunity to help address the upward trend in sickness absence in certain areas. More than 2,900 employees formed 415 teams across 22 countries and stepped their way to improved physical and mental shape over 16 weeks. With a daily average of 13,471 steps, employees reported a more positive attitude to exercise, 68% stated they had lost weight; and 76% felt that increased activity levels had become habitual. 75% exceeded more than 10,000 steps per day (compared to 20% pre-GCC) and 88% of employees say that they would participate in the GCC again. During the year, our affiliates also engaged employees in various wellbeing programs. For example, in September 2015, employees in SGS Russia were encouraged to sign up to a cycle to work scheme. Using dedicated cycle spaces provided in the car park, employees who biked to work were greeted on the first day of the scheme by HR colleagues distributing refillable water bottles and certificates.
Back to top
