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Employee turnover in trend countries increased slightly to 14.2%. While some affiliates, such as Australia, have reversed the trend through targeted intervention, there is still more work to be done to improve turnover in certain affiliates, particularly where the competition for talent is fierce. With enhanced information on the factors influencing voluntary turnover, and an increased focus on employee engagement through our SHINE and CATALYST initiatives, we will continue to manage this area of performance proactively. Our gender ratio saw a marginal increase in the proportion of female to male employees, while our equal opportunity ratio remains stable at 0.65. Both training costs as a proportion of total staff costs and the overall hours spent per employee on training have increased, signifying continued investment in learning and development. The proportion of employees completing annual performance appraisals has decreased against 2012 to 64.7%.

 

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  • 2013 Progress Against Targets

    Target Achieved? Progress in 2013
    Natural turnover <14% by 2014 In progress

    Natural turnover has increased by 3.6% against 2012 to 14.2%, and remains one of the highest areas of spend in our Green Book. This figure reflects more accurate reporting from certain affiliates. Performance varies between affiliates, with turnover remaining low in Europe due to the economic situation and increasing slightly in countries where it has been high historically. In one of our affiliates the increase can be explained by office relocation. Through our programs to ensure we recruit the right people, integrate and develop them, we expect turnover to fall

    Training costs as a percentage of total employment costs to be 1.0% by 2014 In progress This ratio has increased by 4.3% against 2012 to 0.72%. The average hours spent on training per employee has increased by 5.2% to 30.3. This reflects a greater focus on training in some of our largest affiliates in terms of headcount, such as technical training, managerial training, Operational Integrity training, and the SHINE onboarding program
    100% of employees receiving regular performance reviews by 2014 In progress 64.7% of employees received regular performance reviews, a fall of 5.7%. 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 In progress Sickness absence has remained stable at 1.52%. The Global Corporate Challenge initiative, first launched in SGS in 2013, will continue in 2014 to encourage more of our employees to live healthy lifestyles

  • Performance on 2013 Commitments

    Commitment for 2013 Achieved? Progress in 2013 Commitment for 2014
    Launch a new HR information system (HRIS) during 2013 to allow accurate, user friendly and quickly accessible data that will enable us to manage the workforce, maximize our recruitment, manage people’s contribution to the business and track their journey with SGS In progress By end 2013, we finalized the implementation roadmap for global deployment of the HR information system. We will continue to roll-out the system in 2014 and expect it to be fully implemented by 2016 During 2014, we will roll out the recruitment module and pilot the learning management system module of our HR information system.
    Implement our global L&D strategy to provide a structured and consistent approach to learning and development across the network In progress Ongoing alignment of programs such as Managing People and Performance (MPP) to local business needs We will continue to support the affiliates in developing a globally consistent approach to L&D while ensuring that it reflects local business priorities
    Review our current global programs linked to employee reward and recognition, succession planning and career management as part of the second phase of HR transformation during 2013 and 2014 In progress We began the process of benchmarking critical job roles during 2013 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
    Expand our global initiative to evaluate job families and grading in order to further enhance consistency across the Group In progress We began the process of benchmarking job families during 2013 and plan to extend this in 2014 We will continue to benchmark  critical job roles during 2014
    Develop the third module of our Leadership Development program in 2013 Deferred to 2014 Module 3 of leadership development program postponed to 2014 We will develop and pilot the third module of our Leadership Development Program during 2014
    Launch e-recruitment in more than 17 countries In progress We designed the recruitment element of our HR information system During 2014, we will roll out the recruitment element and design the learning management system element of our HR information system
    Monitor the implementation of SHINE across our global business and establish baseline data on which we can benchmark performance on effective employee onboarding Achieved SHINE metrics include total voluntary turnover (tVt) of permanent employees with less than 12 months tenure, total number of new permanent employees, and results from ‘the SHINE onboarding experience’ survey Continue to monitor the implementation of SHINE using metrics introduced in 2013
    Further enhance our leadership development approach by strengthening individual development plans and developing critical skills In progress Continued enhancement of Leadership Development Programs in certain affiliates such as China and Hong Kong We will develop and pilot the third module of our Leadership Development Program during 2014

  • Our Commitments

    • Launch e-recruitment in all affiliates by end of 2015
    • Monitor employee feedback on SHINE using the 2013 baseline, on a continuous basis
    • Improve performance monitoring and reporting of data linked to remuneration by benchmarking critical job roles and piloting the rewards and recognition element of our HR information system in 2014
    • Develop and pilot third module of Leadership Development Program in 2014
    • Design the learning management system element of our HR information system for progressive roll out in 2014 and 2015
    • Further develop our approach to conducting and measuring formal performance reviews during 2014
    • Expand the number of employees participating in CATALYST in 2014
    • Repeat the Global Corporate Challenge in 2014, aimed at improving health and wellbeing and reducing sickness absence