Organizational Strategy - Sustainable Development - L'Oréal

7 L’OréaL - GrI DaTa SHEETS 2011
n In France, the obligations arising from the agreements envisage specific end-of-service compensation payments. Furthermore, an early
retirement scheme is in place, along with a defined benefit retirement plan. Moreover, within certain group companies, medical cover
for retirees is partially paid by the group.
With the exception of the medical cover for retirees, these commitments are the subject of partial external financial cover;
n abroad, when retirement plans or other specific defined benefit commitments exist, the corresponding actuarial liabilities, net of the
capitalized funds allocated to their cover, are also taken charge of on the basis of the entitlement acquired by employees.
From 1 January 2009, the group has chosen to adopt the IaS 19 option that permits immediate recognition in shareholders’ equity of
actuarial losses and gains for defined benefit schemes subsequent to employment, in place of the corridor method.
The charge recognized in the income statement for the financial year includes:
n the additional entitlements acquired by the employees during this financial year;
n the variation from the updating of the entitlements existing at the start of the financial year, as a result of the passage of time;
n the product of the external funds calculated on the basis of the normalized yield from the long-term investments;
n the effect of any modifications to the plans in relation to previous years or of any new plans.
In order to determine the updated value of the obligation in respect of each plan, the group uses the retrospective method with end-ofservice
salary projection based on the so-called projected unit credit method. The valuation of the commitments and the plan assets takes
place each year and, for the valuation of the commitments in particular, takes into account length of service, life expectancy, rate of staff
rotation per category and also economic hypotheses such as inflation rates and discount rates. actuarial shortfalls recorded on the other
benefits such as long service awards, etc. are immediately recorded in the profit and loss accounts.
The debt relating to the company’s net commitment concerning staff is recorded on the liability side of the balance sheet, in the section
Provisions for pensions and other post-retirement benefits
> For more details, see section “1.23. Provisions for retirement, end-of-service packages and other benefits granted to employees” on page
99 of the 2011 reference Document.
LA12
MaP (Managing and appraising Performance) is an evaluation system that permits the evaluation and development of the skills and
performance of all L’Oréal staff.
MaP deals with the following points:
• Integration of roles, key responsibilities, targets and skills of the employees
• Career management: taking into account of the wishes of an employee, along with their evaluation, experience and resilience
• Training decisions based on the development plan
• remuneration decisions (taking into account their command of the key responsibilities and achievement of targets)
The MaP On Line system, which is currently being deployed, has been used by 25,731 people in 62 countries this year. The plan is to
extend it to the population as a whole while gradually replacing the paper format.
MaP consists of an end-of-year interview and, for most staff, a mid-year interview.
• The mid-year interview
The mid-year interview (EMa) takes place at the year’s midpoint, thus permitting the employee to gain a detached view of their
everyday activities, to measure the progress made with their manager and to examine with them any supporting measures that might
be necessary.
• aims:
- To conduct a review of the progress made in terms of the employee’s targets and skills
- To develop a personalized development plan for the next twelve months
- To give the employee and manager a shared view of the best way of working together
• The end-of-year interview
The EFa is centered on:
- the evaluation of their performance during the year elapsed
- the prospects for the year ahead
• The end-of-year interview (EFa) offers an opportunity for the employee to speak with their manager and their n+2 about:
- their performance
- their targets for the coming year
- their aspirations
- their developing needs.
It should take place within a spirit of open dialogue and objectivity.
24,353 employees used MaP On Line to publish their EFa report after the 2011 end-of-year interviews, which is 25% more than last year.
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