Organizational Strategy - Sustainable Development - L'Oréal

7 L’OréaL - GrI DaTa SHEETS 2011
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RECRUITMENT
The number of new recruits in 2011(*) was 6,746, breaking down as:
• 4,967 recruited on permanent contracts,
• 1,779 recruited on temporary contracts.
(*) This indicator pertains to roughly 60% of the global area.
NUMBER OF NEW RECRUITS AT L’ORÉAL SA:
L’Oréal recruited 301 persons on permanent contracts, 346 on fixed-term contracts and 284 on work-study programmes (170 apprenticeship
contracts and 114 vocational training contracts). To this are added 300 persons taken on occasionally during holiday periods or for a season.
L’Oréal does not experience any difficulties with recruitment, either at executive level or for other staff categories.
NUMBER OF DISMISSALS AT L’ORÉAL SA:
In 2011, there were no economic redundancies. Out of a total workforce of 6,015, there were 47 dismissals for inherently personal reasons,
including 2 for physical inaptitude.
INFORMATION RELATING TO WORKFORCE REDUCTION AND JOB PROTECTION PLANS, REDEPLOYMENT AND REHIRING EFFORTS AND
SUPPORTING MEASURES:
at L’Oréal Sa, there were no workforce reduction plans in place during 2011.
> For more details, see “recruitment” on page 182 of the 2011 reference Document.
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PROFIT SHARING AND INCENTIVE SCHEMES
For many years now, it has been L’Oréal’s policy to allow staff to share in the company’s results, which in 2011, resulted in 204.3 million euros
being redistributed.
L’Oréal has set up a global incentive scheme linked to the economic results of the subsidiaries (WPS – Worldwide Profit Sharing Program), the
aim of which is to increase staff’s sense of belonging and motivation.
at corporate level, adherence to the scheme’s principles and rules is coordinated by the Social relations Department, with the involvement
of the General Management and Human resources departments from the zones, together with the General Management of the group. The
scheme’s implementation and management are carried out locally by the General Management of each subsidiary.
In addition to profit-sharing and incentive schemes for staff, the group has for some years been issuing stock option plans within an international
framework, in order to offer the chief contributors a stake in the future development of the group’s results and to enhance their sense of belonging.
In 2009, L’Oréal expanded its policy by introducing a mechanism for the Conditional Grant of Shares to Employees (CGSE), in order to reach
a wider group of potential beneficiaries by means of a long-term coordination tool with a greater motivating effect than stock options.
In 2011, the group decided to further widen the scope of the CGSE.
In total, nearly 3000 staff, in this case nearly 14% of managerial staff worldwide, benefit from at least one stock option or CGSE, in accordance
with the terms explained on the corresponding pages of section 7 – Stock market / Social capital information.
> For more details, see “Profit Sharing and Incentive Plans on page 183 of the 2011 reference Document.
INCENTIVE SCHEMES
The incentive scheme is a system for which provision is made in law but which remains optional in nature. It was introduced within the
framework of a group agreement in France from 1988 and renewed in 2009. Its amount is proportional to the current profit before tax adjusted
by exceptional elements and weighted by the salary/added value ratio. The incentive scheme is available immediately but it may be
blocked for 5 years in the Company Savings Plan in order to benefit from tax exemption.
Within the framework of the new regulation on profit-sharing (article 1 of law no. 2011-894 of 28 July 2011), L’Oréal has proposed the payment of
an additional Incentive payment, in respect of the non-compulsory financial benefits” envisaged by the texts, in connection with the increase
of the dividend per share paid in 2011 in respect of the 2010 results. L’Oréal chose to offer an additional Incentive because it constitutes the
system most in line with the concept of “value-sharing”. a company-level agreement was thus concluded with L’Oréal’s Central Works Council
on 6 October 2011. Coming on top of the incentive amount paid in 2011 of +6.5%, this additional incentive was paid on 31 December 2011.
DEVELOPMENT OF THE GROSS INCENTIVE SCHEME PAYMENT AT L’ORÉAL SA FOR ALL THE COMPANIES CONCERNED:
In thousands of euros 2007 (1) 2008 (1) (2) 2009 (1) (2) (1) (2) 2010
L’Oréal S.A. 51,766 55,236 57,358 58,809
(1) Paid in next financial year.
(2) Sums paid after corporate social contribution.
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