2007 Interactive Registration Document - Renault

03 EMPLOYEE-RELATIONS
SUSTAINABLE DEVELOPMENT
PERFORMANCE
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control the incoming workload and the management of resources:
350 people (in-house transfers or external recruits) are to be hired between
now and the end of 2008 as part of a recruitment plan,
new forms of organization have been put in place to make communication
easier (systematic weekly meetings and a “Team Day”);
provide support through training and skills management:
. training stepped up in personal efficiency, stress prevention and
management, and the conduct of annual performance and development
reviews;
succeed through welfare at work:
. refi tting of meeting places (meeting rooms, terraces, restaurants, etc.),
. shorter working hours at engineering sites,
. life in the workplace improved by reminding staff of the operating rules
(effi ciency of meetings, professional travel, lunch break, etc.),
. teleworking developed in compliance with the corporate agreement.
These points are naturally supported by the reorganization of the HR function,
particularly the decentralization of the HR function and the appointment of local
HR offi cers in the fi eld.
3.1.1.2 ASSESSMENT AND RECOGNITION
ASSESSMENT: THE ANNUAL PERFORMANCE AND
DEVELOPMENT REVIEW ✦
At Renault the annual performance and development review is a unique
opportunity for employees and their immediate managers to communicate
and dialogue together. It is an important managerial task that serves to set
targets, assess performance and identify how each employee can best pursue
his/her personal and professional development.
The annual performance and development review was recently revised to support
the implementation of Renault Commitment 2009.It now effectively targets the
contribution of each employee to the Group’s priorities, while focusing on clear,
ranked and measurable objectives.
The assessment of each employee’s performance is based on a factual review.
It looks at whether the employee has achieved his/her targets and in what way
(i.e. professional skills, behavior in the workplace, and managerial qualities for
executive-level staff).
If results fall short of expectations, a program of improvement is implemented
by the manager and employee, in order to give fresh impetus to individual
performance.
The link between this performance assessment and the promotion plan (changes
in job position or coeffi cient, revision of fi xed remuneration/basic salary, bonuses
where applicable) is coherent. The promotion plan looks not only at whether
objectives were achieved but also how.
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A number of new tools were developed in 2007 in order to provide greater
support for managers and employees in the 2007-2008 campaign of annual
performance and development reviews. A guide setting out all aspects of the
annual performance and development review in detail was made available to
all staff. At the same time, managers received practical training in the conduct
of annual performance and development reviews.
REMUNERATION
Changes to remuneration
Renault is conducting a dynamic policy on resources.
At Renault s.a.s., management and trade unions (CFDT, CFE-CGC, CFTC and
FO) signed a pay agreement on February 19, 2007 that included an overall pay
increase for production and non-managerial staff of 3.6% for the period from
April 1, 2007 to March 31, 2008. These measures include an overall pay rise
of 1.5%, individual awards and promotions of 1.5%, a 0.34% seniority-related
rise, a 0.24% increase in vacation and end-of-year bonuses and a review of
the compensation for transport and for duty hours.
Outside France, the remuneration policy respects local market standards.
The subject of senior executives’ pay is addressed in c hapter 4.4 on corporate
governance.
Performance bonuses
A new system of performance bonuses for senior managers, directly linked
to their success in meeting targets, was put in place in 2006, and applied
to results in 2007. This corporate system, rolled out Group wide, concerns
around 2,500 managers and is based on their success in meeting collective
and individual targets.
3.1.1.3 SHARING THE BENEFITS OF GROUP
PERFORMANCE ✦
Renault operates an incentive scheme that includes a redistribution of profi ts.
It may also take the form of bonus payments for local performance.
The incentive agreement signed by Renault s.a.s. for 2005, 2006 and 2007
comprises two separate components: a share in the profi ts and a bonus related
to the performance of each site. Payments on profi ts are equivalent to 6% of
Renault’s consolidated net income, after tax and correction of any extraordinary
factors relating to Nissan and after deduction of minority interests. For calculating
individual entitlements, the same base is applied to all categories of personnel
(gross annual salary, social security basis), with a minimum gross annual level
of remuneration. This agreement expired at end-2007.
82 Registration Document Renault 2007
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