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<strong>Human</strong> <strong>Resources</strong><br />

<strong>Report</strong><br />

Making every day<br />

a better day<br />

2005


Contents<br />

Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1<br />

A Shared Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3<br />

Sodexho in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4<br />

Offering our employees a Fulfi lling Professional Life . . . . . . . . . . . . . . . . .5<br />

Equality of Opportunity, Commitment to Diversity and Inclusion . . . . . .6<br />

Commitment to diversity and inclusion<br />

Promoting cultural diversity<br />

Advancing equal opportunities<br />

Evolving Careers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9<br />

Making opportunities known<br />

Building career paths<br />

Support for continuing education<br />

Listening and Dialogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12<br />

Understanding aspirations<br />

Listening to concerns<br />

Communicating with each other<br />

Dialogue with employee representatives<br />

Safety and Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15<br />

Ensuring safety at work<br />

Cultivating healthy lifestyles<br />

Promoting work-life balance<br />

Working with our employees to build a Business of Progress . . . . 17<br />

An Expertise-Driven Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18<br />

Successful induction<br />

Training experts<br />

Teaching our know-how<br />

A High-Performing Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21<br />

Encouraging performance<br />

Rewarding performance<br />

An Interactive Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23<br />

Generating synergies<br />

Enrichment through diversity<br />

The Business of Tomorrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25<br />

Adapting to change<br />

Planning our resources for the future<br />

Key Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27


EDITORIAL<br />

United by a common vision and shared values, our people<br />

are the main resource of Sodexho. Every day, 98% of our<br />

324,000 employees worldwide are in personal contact with<br />

our clients and customers, providing services as part of our<br />

mission to improve the Quality of Daily Life.<br />

Quality of Life also is a key focus in our approach to human<br />

resource management. The performance of a business is<br />

closely linked to the motivation of its employees which in<br />

turn is infl uenced by their degree of empowerment, their<br />

development opportunities and their day-to-day satisfaction<br />

in their working environment.<br />

To be the benchmark for all of our business activities, our human resource<br />

management must combine the progression of our people with economic<br />

performance. Our equal opportunities approach means that everyone can<br />

become part of the team, build their expertise, expand their skill set, assume<br />

new responsibilities, perform better and enjoy a fulfi lling professional life.<br />

The diversity of origins, cultures and expertise of our people is also a driver of<br />

progress and growth for Sodexho. It is one of our greatest strengths, providing<br />

a basis for developing synergies to serve our clients, our consumers and the<br />

community better.<br />

Through our ability to identify, train, develop and retain talent, and to<br />

draw strength from our tremendous diversity, collectively we can harness<br />

the power to build the Sodexho of tomorrow: the world leader in Quality<br />

of Life services.<br />

Élisabeth Carpentier<br />

Group Executive Vice President, <strong>Human</strong> <strong>Resources</strong><br />

Our human resource management must<br />

combine the progression of our people with<br />

economic performance.<br />

01 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE


A SHARED<br />

Culture<br />

Sodexho lives by its core values (service spirit, team spirit and spirit of<br />

progress) and its ethical principles (trust, respect for people, transparency<br />

and business integrity). Every employee in the Group is expected to share<br />

these values and principles, which refl ect our commitments and guide us in<br />

the daily performance of our work.<br />

SODEXHO forms<br />

a community<br />

of progress<br />

with its clients,<br />

its customers,<br />

its employees,<br />

its suppliers,<br />

its shareholders,<br />

in its host countries.<br />

OUR PHILOSOPHY<br />

Focuses and drives us toward our objectives.<br />

Who we are<br />

Our company is the community of our clients, customers,<br />

employees and shareholders. Our purpose is to exceed<br />

their expectations.<br />

Our business strategy: organic growth<br />

We continue to focus on achieving organic growth in earnings<br />

and revenues, while contributing to the economic development<br />

of countries in which we operate.<br />

Our mission<br />

Improve the Quality of Daily Life.<br />

Our objectives<br />

Be recognized by our clients as the benchmark in the services<br />

that we provide.<br />

Be the market leader in each of the segments where we provide<br />

and develop our food service businesses.<br />

Grow our service businesses, beyond food, faster.<br />

Have “desired company” status for the Group<br />

and its professions.<br />

Attract and retain talent.<br />

Make the Sodexho brand known worldwide.


OUR CORE VALUES<br />

They are the bedrock of our history<br />

and sustain our progress.<br />

Service spirit<br />

Clients and customers are at the center<br />

of everything we do.<br />

In order to serve them well, on a daily basis, at all<br />

levels, we have to demonstrate our availability,<br />

our ability to listen, our capacity to anticipate<br />

their expectations, our sense of conviviality,<br />

our responsiveness to their remarks and our pride<br />

in satisfying them.<br />

Sodexho has become a large, worldwide company,<br />

but we still remain a local company where each<br />

manager in the fi eld is a true entrepreneur,<br />

close to their clients and empowered in their<br />

decision-making.<br />

Team spirit<br />

It is an absolute need in all of our operations,<br />

our business units and administrative offi ces,<br />

as well as in our management committees.<br />

Each person’s skills combine with other team<br />

members’ knowledge to help ensure Sodexho’s<br />

success. Teamwork depends on the following:<br />

listening, transparency, respect for others, diversity,<br />

solidarity in implementing major decisions,<br />

respect for rules, and mutual support, particularly<br />

in diffi cult times.<br />

Spirit of progress<br />

It makes itself known through:<br />

our will, but also the fi rm belief that one can<br />

always improve on the present situation;<br />

acceptance of the evaluation of one’s performance<br />

and to be compared with colleagues in the<br />

company, or with competitors;<br />

rejection of fatalism and false alibis for avoiding<br />

change…;<br />

self-criticism, because understanding one’s<br />

successes as well as one’s failures is fundamental<br />

to continuous improvement;<br />

a balance between ambition and humility;<br />

optimism, the belief that for every problem there is<br />

a solution, an innovation, or some way to progress.<br />

02-03 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

OUR ETHICAL PRINCIPLES<br />

They guide us in all of our day-to-day activities.<br />

de nos progrès.<br />

Trust<br />

A foundation of loyalty between Sodexho and<br />

its clients, employees, and shareholders, based<br />

on honest, open relations. Trust is one of the<br />

cornerstones of operations in our organization.<br />

Respect for people<br />

<strong>Human</strong>ity is at the heart of our business.<br />

Sodexho is committed to providing equal<br />

opportunities regardless of race, origin, age,<br />

gender, beliefs, religion, physical ability or sexual<br />

orientation.<br />

Improving Quality of Life means according<br />

each person respect, dignity and consideration.<br />

Transparency<br />

This is one of Sodexho’s major principles,<br />

and is a constant with all stakeholders: clients,<br />

customers, employees and shareholders.<br />

Business integrity<br />

We do not tolerate any practice that is not born<br />

of honesty, integrity and fairness, anywhere<br />

in the world where we do business.<br />

We clearly communicate our position on this issue<br />

to our clients, suppliers, and employees, and expect<br />

them to share our rejection of corrupt and unfair<br />

practices.


SODEXHO IN BRIEF<br />

As of August 31, 2005<br />

11.7 billion euro in revenues<br />

324,000 employees at 26,700 sites<br />

Present in 76 host countries<br />

Sodexho Alliance is listed on the Paris Bourse and the New York Stock Exchange.<br />

24 th largest employer worldwide (1)<br />

7 th largest employer in Europe (1)<br />

2 nd largest employer in France (2)<br />

Food and Management<br />

Services<br />

Business and Industry<br />

Prestige<br />

Defense<br />

Correctional Services<br />

Healthcare<br />

Seniors<br />

Education<br />

Remote Sites<br />

No. 1 Worldwide (3)<br />

98% of Group revenues<br />

(1) Fortune 500, 2005.<br />

(2) Les Mille de L’Expansion, 2006.<br />

(3) Excluding concessions.<br />

2 activities<br />

Service Vouchers and Cards<br />

Businesses<br />

Public Authorities<br />

No. 2 Worldwide<br />

2% of Group revenues<br />

5.3 billion euro in issue volume


OFFERING OUR EMPLOYEES<br />

a Fulfi lling Professional Life<br />

Equality of Opportunity, Commitment to Diversity . . . . . . . . . . . 6<br />

Evolving Careers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9<br />

Listening and Dialogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12<br />

Safety and Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />

04-05 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE


S’ENGAGER Offrir à nos collaborateurs<br />

ET AGIR<br />

pour UNE VIE le développement ÉPANOUIE durable<br />

Offering our employees…<br />

Equality of Opportunity,<br />

Commitment to Diversity<br />

and Inclusion<br />

Respect for others is at the heart of our business, and diversity and inclusion are built<br />

into our mission, core values and ethical principles. We are committed to promoting<br />

and respecting diversity within Sodexho, as are our suppliers and partners. We<br />

are also committed to equal opportunities regardless of race, origin, age, gender,<br />

beliefs, religion, physical ability or sexual orientation. Our conviction is that a diversity<br />

of talents helps us to serve clients and communities better, and hence is a key<br />

driver of our Group’s growth.<br />

Indicators 2005<br />

Employee Engagement Survey<br />

The Sodexho Employee Engagement Survey ()<br />

carried out in 2005 showed that of<br />

the employees questioned, 80% in Food<br />

and Management Services and 82% in<br />

Service Vouchers and Cards responded<br />

that at Sodexho the employees who are diverse<br />

in dimensions such as age, gender or origin<br />

were valued for the differences they brought<br />

to the workplace.<br />

Local hiring ratio<br />

Sodexho is committed to contributing to local<br />

economic development. One way in which<br />

this commitment is expressed is by hiring<br />

locally in the 76 countries where we operate.<br />

In fiscal year 2005, 98% of Sodexho’s<br />

employees were hired locally.<br />

STRATEGY AND OBJECTIVES FOR 2006<br />

The Global Diversity Network,<br />

set up by Sodexho Group <strong>Human</strong><br />

<strong>Resources</strong>, brings together<br />

representatives from the main<br />

countries in which Sodexho<br />

operates, including Australia,<br />

France, the United Kingdom and<br />

the United States. Led by Rohini<br />

Anand, Sodexho’s Chief Diversity<br />

Offi cer in North America, the<br />

network is tasked in 2006 with<br />

COMMITMENT TO DIVERSITY AND INCLUSION<br />

BELGIUM<br />

In December 2005, Sodexho signed<br />

the Diversity Charter sponsored<br />

by the Ministry of the Economy<br />

and Employment, demonstrating<br />

our commitment to promoting<br />

ethnic and cultural diversity within<br />

the company.<br />

FRANCE<br />

In October 2004, Sodexho signed<br />

a Diversity Charter. The main<br />

aim of the Charter is to ensure<br />

equality of opportunity by<br />

promoting employment and career<br />

devising a strategy to promote<br />

diversity and multi-culturalism<br />

in the management committees<br />

of the Group’s principal entities;<br />

raising awareness of cultural<br />

differences in order to improve<br />

internal communication fl ows;<br />

and encouraging entities<br />

to reinforce their commitment<br />

to these issues.<br />

We expect all of our employees to understand the importance<br />

we attach to diversity and inclusion.<br />

development for all regardless of<br />

gender, age, origin or disability.<br />

A Diversity Group was formed in<br />

January 2005. The group, which<br />

includes employee and union<br />

representatives, meets every month<br />

to discuss the diversity agenda.<br />

NORTH AMERICA<br />

Canada and the United States<br />

have set up a Diversity Council.<br />

In the United States, the Diversity<br />

Council concept is now being<br />

rolled out across business<br />

segments and regions.


Sodexho has also fostered grass<br />

roots employee network groups<br />

based on diversity identity<br />

dimensions.<br />

In Canada, under the “Excellence<br />

Awards Program”, a Diversity<br />

Award is given each year to a<br />

manager with a proven day-to-day<br />

commitment to diversity.<br />

PROMOTING CULTURAL DIVERSITY<br />

In the United States, managers<br />

attended a day-long diversity<br />

training program “Equal<br />

Employment Opportunity and<br />

Affi rmative Action Training”,<br />

ahead of the Spirit of Diversity<br />

program that all managers are<br />

required to attend in 2006.<br />

Globally, Sodexho promotes the integration of employees from<br />

a wide variety of cultures and origins, both within the company<br />

and in society.<br />

AUSTRALIA<br />

Sodexho operates an Indigenous<br />

Employment Strategy, under which<br />

Serco Sodexho Defence Services<br />

has signed an agreement with<br />

the Department of Employment<br />

and Workplace Relations to employ<br />

some 40 indigenous people.<br />

The Indigenous Liaison Offi cer<br />

for Northern Australia, who<br />

is responsible for relations with<br />

the indigenous workforce and with<br />

the local indigenous communities,<br />

has set up diversity training<br />

programs.<br />

CANADA<br />

Sodexho is working closely with<br />

the Canadian Council for Aboriginal<br />

Business in the “Progressive<br />

Aboriginal Relations” (PAR)<br />

program, a long-term plan to<br />

help companies build fair,<br />

harmonious relationships with<br />

local communities and to encourage<br />

them to share their experiences.<br />

Since 2004, Sodexho has held<br />

“Gold Achievement Level” status<br />

06-07 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

in the PAR program, refl ecting its<br />

promising partnerships with the<br />

aboriginal communities.<br />

UNITED STATES<br />

To improve English-language<br />

skills among Hispanic employees,<br />

Sodexho piloted “Sed de Saber”,<br />

a self-help tool. The results<br />

were impressive: increased<br />

self-confi dence, retention and<br />

loyalty to Sodexho, improved<br />

relations with customers, and better<br />

awareness of safety-at-work issues.<br />

Users also found that the program<br />

helped them in their family and<br />

social life. Sodexho has decided<br />

to roll out the project nationwide.<br />

Meet...<br />

Viviane Matap Tamo, Chef-Trainee, Belgium.<br />

Life was hard. Then I joined a job<br />

opportunities program sponsored by Sodexho,<br />

which gave me the chance to learn some real<br />

skills in the catering industry. When I had<br />

fi nished the program, Sodexho showed faith<br />

in me by offering me a permanent job.<br />

Now, I’m happy at work. This experience<br />

changed my life, and gave me the strength<br />

and commitment to improve myself.<br />

I’m confi dent that I can look forward to<br />

a better future.<br />

In Belgium, Sodexho operates a job<br />

opportunities program in conjunction with<br />

various public welfare agencies, offering<br />

vocational training to the underprivileged.<br />

Viviane Matap Tamo, a young mother from<br />

Cameroon, came to Belgium with her two<br />

children in 1998. On completing the program,<br />

she signed a full-time contract as a cheftrainee.


S’ENGAGER Offrir à nos collaborateurs<br />

ET AGIR<br />

pour UNE VIE le développement ÉPANOUIE durable<br />

RECOGNITION FOR OUR COMMITMENT<br />

TO DIVERSITY<br />

In the United States, Sodexho was:<br />

- named among the top 10 in the International<br />

Innovation in Diversity Award;<br />

- named The Diversity Innovator by<br />

the National Women’s Business Center;<br />

- recognized by DiversityInc. as one<br />

of the 25 companies most involved<br />

in promoting diversity;<br />

- selected as one of the top 10 employers<br />

of Asian-Americans by Asian Enterprise<br />

Magazine;<br />

- presented by Latina Style Magazine among<br />

the top 50 companies offering Hispanics<br />

genuine career opportunities;<br />

- ranked 6 th among the top 10 employers<br />

for African-Americans by Black Collegian<br />

Magazine;<br />

- listed among the top 25 employers for<br />

African-Americans by Black Professionals<br />

Magazine;<br />

- identifi ed as one of the top 10 employers<br />

for people with disabilities by DiversityInc.;<br />

- named Employer of the Year by the Autism<br />

Services Association.<br />

ADVANCING EQUAL OPPORTUNITIES<br />

Sodexho operates a wide range of initiatives designed to<br />

reinforce equality for all employees.<br />

AUSTRALIA<br />

In the Defense sector, female<br />

employees wishing to advance<br />

to a managerial post are offered<br />

mentoring by a female senior<br />

manager. A working group<br />

of women from the senior<br />

management team is to be set up<br />

to study initiatives to encourage<br />

women in the workplace.<br />

FRANCE<br />

Sodexho is involved in life skills<br />

projects in centers for the disabled.<br />

Every year, 200 disabled people<br />

are trained in catering skills<br />

at approximately 40 Sodexhomanaged<br />

sites, while over 500<br />

disabled people work for our<br />

French subsidiary.<br />

NETHERLANDS<br />

Sodexho is a founding-member<br />

of a national network promoting<br />

gender equality. A key role of<br />

the network is to enable women<br />

who have temporarily left<br />

the company for family reasons<br />

to maintain their ties with their<br />

company, making it easier for them<br />

to return to work.<br />

Improving the quality of life for the disabled means, fi rst and<br />

foremost, helping them integrate into society. Sodexho furthers<br />

this objective across the board, from work within centers for the<br />

disabled to job training and public awareness campaigns.<br />

COLOMBIA<br />

Under a program to help the most<br />

disadvantaged in society, Sodexho<br />

offers grants to cover a 6-month<br />

training program leading to<br />

potential job opportunities within<br />

the company. Currently, 120 people<br />

are benefi ting from this program.<br />

ITALY<br />

For ten years, Sodexho has been<br />

working with institutions and<br />

non-governmental organizations<br />

to promote the integration<br />

of disabled people. Sodexho<br />

now employs over 200 disabled<br />

people in Italy, where we have<br />

also launched a website for<br />

the visually impaired.<br />

Helping the disadvantaged to reintegrate into society is<br />

something we see as our duty. We operate a wide range<br />

of initiatives to help the long-term unemployed and the<br />

underprivileged, along with offender resettlement programs.<br />

UNITED KINGDOM<br />

Sodexho subsidiary UKDS has<br />

created a state-of-the-art motherand-child<br />

unit within Bronzefi eld<br />

prison. The focus is on socioeducational<br />

programs, job training,<br />

workshops, maintaining family<br />

contact, and assistance in fi nding<br />

housing and jobs.


Offering our employees…<br />

Evolving Careers<br />

Since Sodexho was formed, it has provided a springboard for personal growth.<br />

Internal promotion is always favored where a suitable candidate can be found.<br />

Each employee has the opportunity of acquiring new skills and responsibilities<br />

and achieving personal growth, irrespective of their level in the organization,<br />

their qualifi cations on joining the company, their workplace, or their origin.<br />

Satisfying our employees’ expectations is one of our main aims.<br />

MAKING OPPORTUNITIES KNOWN<br />

Job vacancies are advertised on internal notice-boards,<br />

by e-mail, or on intranet and internet sites at the Group<br />

or subsidiary level.<br />

UNITED STATES<br />

Job vacancy advertisements and the recruitment process<br />

are managed by an on-line Career Center, accessible<br />

via the corporate intranet. Vacancies<br />

are posted on the intranet every<br />

week. Employees can set up a<br />

search engine facility that sends<br />

them an alert message whenever a<br />

vacancy arises that fi ts their profi le.<br />

They can also post their resumé<br />

on-line. All recruitment procedures<br />

and policies can also be accessed<br />

on the Career Center site.<br />

08-09 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

Indicators 2005<br />

Internal promotion: key figures<br />

With organic growth requiring substantial<br />

resources, 25% of site manager posts were<br />

filled by promotion from non-managerial<br />

grades, and 38% of managerial posts were<br />

filled by promotion from site manager<br />

or equivalent jobs in the fiscal year 2005.<br />

(Scope: 96% of Group employees as of August 31, 2005).<br />

In France:<br />

• 100% of regional directors and sales<br />

directors;<br />

• 60% of development managers and 67%<br />

of district managers;<br />

have come from internal promotion.


Meet...<br />

60%<br />

Zhijun Feng, Chief Financial Offi cer, China.<br />

If you really want to get on and work hard,<br />

Nam lieber at tempor et<br />

Sodexho backs you all the way. They give<br />

dispnedium sinedie.<br />

you opportunities to grow, and are always<br />

keen to give you new responsibilities whatever<br />

your age and experience. All you need to do is<br />

rise to the challenge!<br />

Armed with a bachelor’s degree and two<br />

years’ professional experience, Zhijun Feng<br />

joined Sodexho’s newly-established Chinese<br />

subsidiary in 1996. Enthusiastic and committed,<br />

she progressed as the company expanded.<br />

On-the-job coaching from her managers and<br />

a series of training programs gave her new<br />

technical and managerial skills. In just six<br />

years, she rose right through the ranks to<br />

become the subsidiary’s Chief Financial Offi cer<br />

in 2002. But the learning did not stop there:<br />

she is constantly expanding her skill set to<br />

meet the fast-moving needs of her job.<br />

BUILDING CAREER PATHS<br />

Internal promotion is a big motivator, driving growth<br />

and binding the Sodexho community together. Spotting talent<br />

and delivering tailored training programs are key factors<br />

in effective internal promotion.<br />

BRAZIL<br />

A development plan, begun in<br />

2000, provides site managers<br />

with the training needed to<br />

progress to district manager.<br />

In 2005, they can also follow a<br />

program preparing them for moves<br />

into sales functions. Site managers<br />

identifi ed by their line managers<br />

and the human resources team<br />

are fast-tracked into a tailored<br />

6 to 12 month on-the-job<br />

management trainee program.<br />

Thanks to these programs, six site<br />

managers have been promoted to<br />

district managers and one to sales<br />

manager.<br />

FRANCE<br />

Sodexho is the only industry<br />

player to offer employees a<br />

comprehensive fi ve-stage training<br />

plan, combining group sessions<br />

with on-site learning. Employees<br />

can progress through the ranks<br />

from technical operator to<br />

qualifi ed restaurant operator, chef,<br />

and fi nally site manager. In 2005,<br />

over 250 employees were in this<br />

program, half of them women.<br />

The program has attracted<br />

the backing of the French<br />

authorities. In the Greater Paris<br />

region, it is co-fi nanced by<br />

the European Social Fund and<br />

supported by the Ministry of Labor<br />

and Medef (the French employers’<br />

federation).<br />

UNITED STATES<br />

The “Rising Star” program was<br />

developed fi ve years ago in<br />

the Corporate Services Division.<br />

Potential high achievers identifi ed<br />

by line managers and the human<br />

resources team are offered a range<br />

of training options to help them<br />

identify their strengths, fi nd areas<br />

where they can progress, and<br />

recognize and seize opportunities.


SUPPORT FOR CONTINUING EDUCATION<br />

Each employee can expand his or her skills by following a<br />

continuing education program. Sodexho is actively researching<br />

and developing partnerships with a variety of schools, colleges<br />

and universities.<br />

AUSTRALIA<br />

A training program operated for<br />

the last 3 years in the Defense<br />

segment has already given 400 new<br />

employees the opportunity to obtain<br />

a nationally-recognized professional<br />

qualifi cation, boosting their selfconfi<br />

dence and encouraging them<br />

to pursue further training to acquire<br />

new skills and responsibilities.<br />

10-11 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

CHILE<br />

District managers are offered<br />

preparation for the Service Business<br />

Management Diploma course<br />

provided by the Universidad Santo<br />

Tomás, a partner of Sodexho.<br />

UNITED STATES<br />

Sodexho employees can prepare for<br />

Associate’s, Bachelor’s and Master’s<br />

degrees by following internet-based<br />

courses or completing a companybased<br />

project, as a result of<br />

partnerships with Strayer University<br />

and the University of Action<br />

Learning.<br />

RECOGNITION FOR OUR COMMITMENT TO EMPLOYEE DEVELOPMENT<br />

• Germany: In November 2005, Sodexho won the Caterer of<br />

the Year 2005 award in the “Strategy and Management”<br />

category. The jury was particularly impressed by the<br />

creation of a culinary school, designed to improve day-today<br />

cooking skills and promote knowledge-sharing.<br />

• United States: The Department of Defense recognized<br />

Sodexho with a Patriotic Employer Award for allowing<br />

employees to remain in their jobs while on active military<br />

duty.<br />

• Poland: In October 2005,<br />

Sodexho received the Investor<br />

in <strong>Human</strong> Capital emblem,<br />

awarded by the Institute<br />

of Management and Social<br />

Research Studio as part of<br />

a nationwide program to<br />

promote human resources<br />

sponsored by the Ministry of<br />

the Economy, Labor and Social Policy. This distinction<br />

rewards initiatives taken to encourage the development<br />

of all employees, and refl ects the team spirit and spirit of<br />

progress that motivate them.<br />

Sodexho was also named one of Poland’s most dynamic<br />

employers by two major business journals.<br />

• United Kingdom and Ireland: Sodexho has for the past<br />

fi ve years achieved certifi cation under the Investors in<br />

People standard, created to encourage fi rms to improve<br />

performance through the management and personal<br />

development of their employees.


Offrir à nos collaborateurs<br />

UNE VIE ÉPANOUIE<br />

Offering our employees…<br />

Listening and Dialogue<br />

Because respect is fundamental to our Quality of Life mission, we attach the highest<br />

importance to the dignity of the individual. Life at Sodexho would be inconceivable<br />

without mutual trust, respect, and transparency. This is why trust, respect<br />

for people and transparency are inscribed in our ethical principles.<br />

MEASURING EMPLOYEE ENGAGEMENT<br />

Sodexho carries out regular<br />

opinion surveys among<br />

its employees to measure<br />

their engagement with and<br />

commitment to the company.<br />

Employees are invited to express<br />

their opinions about a range of<br />

issues, including the Group’s<br />

senior management and their<br />

own line manager; their job,<br />

salary, and work-life balance;<br />

recognition of their achievements;<br />

opportunities for personal<br />

development; and diversity.<br />

The results of the survey are<br />

analyzed in order to identify<br />

priority areas for progress<br />

and to implement appropriate<br />

action plans.<br />

The 2005-2006 Employee<br />

Engagement Survey () is currently<br />

under way as part of a global<br />

project managed jointly by<br />

the central project team and<br />

local teams from the principal<br />

subsidiaries across all Sodexho<br />

activities. The fi rst wave of the<br />

survey was launched in October,<br />

2005 in seven European countries<br />

for Food and Management<br />

Services, and in 19 countries<br />

for Service Vouchers and Cards.<br />

The second wave is scheduled<br />

for April, 2006.<br />

The countries covered by<br />

the survey represent 87%<br />

of the Group’s employees.<br />

The survey will eventually<br />

be rolled out to cover<br />

all employees.


UNDERSTANDING ASPIRATIONS<br />

Recruitment, job transfers and internal promotion call for<br />

ongoing dialogue. The better we are at identifying what our<br />

employees want, the better we can place them in opportunities<br />

within the Group.<br />

NETHERLANDS<br />

“The right man/woman in the right place” is the objective of the “Career<br />

Aspiration Registration program”, which offers each employee career<br />

opportunities. Employees are asked to complete a questionnaire about their<br />

career aspirations, and can ask for an interview with the project manager or<br />

head of <strong>Human</strong> <strong>Resources</strong>. The information is evaluated and loaded into a<br />

database, where it is used to facilitate job transfers and internal recruitment.<br />

In the fi scal year 2005, more than 850 employees completed this process,<br />

and 71% of job vacancies were fi lled in this way.<br />

LISTENING TO CONCERNS<br />

At Sodexho, we are expanding opportunities to listen to our<br />

employees. Their views and ideas are building blocks, helping<br />

to construct a business of progress. Their complaints are<br />

handled fairly and with respect.<br />

AUSTRALIA<br />

Employees can use a free hotline<br />

to express their opinions or make<br />

requests relating to any aspect of<br />

the company.<br />

CANADA<br />

A “Network Complaint Line” logs<br />

criticisms and comments, which<br />

may be made anonymously.<br />

COMMUNICATING WITH EACH OTHER<br />

12-13 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

UNITED STATES<br />

A comprehensive system is in place<br />

to ensure all employees are treated<br />

fairly and with respect. Part of<br />

this system is Sodexho’s Offi ce of<br />

Employment Rights, which opened<br />

in 2003 and has authority to handle<br />

complaints from eligible employees<br />

relating to discrimination,<br />

harassment and/or retaliation in the<br />

workplace.<br />

We believe in communicating with each other and breaking<br />

down barriers. We encourage our people to meet and interact,<br />

in a spirit of openness.<br />

FRANCE<br />

On-site discussion forums are<br />

held regularly, giving everyone an<br />

opportunity to raise issues such as<br />

working conditions, site and task<br />

management, or scheduling.<br />

NORTH AMERICA<br />

Two initiatives illustrate management’s<br />

commitment to dialogue.<br />

First, we hold “Open Forums”<br />

approximately eight times a year<br />

in major metropolitan areas.<br />

All managers from the region<br />

attend, as do the Chief Executive<br />

Offi cer and other senior<br />

executives. A presentation of the<br />

company’s performance<br />

is immediately followed by<br />

an open Q&A session, which is<br />

Meet...<br />

Tilo Blomberg, Site Manager,<br />

European Central Bank, Frankfurt.<br />

A recent survey in Germany proved<br />

our employees had high expectations<br />

in terms of training. The system that<br />

we developed in response means that<br />

we can now train our employees ourselves,<br />

on site. The survey served its purpose:<br />

it helped us progress!<br />

Gerhard Schmid-Degen,<br />

Regional Director,<br />

Business and Industry,<br />

Western Germany.<br />

Completing a survey takes just a few<br />

minutes, but it can make all the difference!<br />

The last opinion survey highlighted some<br />

communication problems, so we set up an<br />

annual meeting for site managers so that we<br />

could share management’s vision with them.<br />

Now, we all speak the same language.<br />

Following the 2003 Sodexho Employee<br />

Engagement Survey, the German subsidiary<br />

identifi ed priority areas for progress and<br />

implemented action plans. These proved a<br />

success: in 2005, the employee engagement<br />

rating reached 71%, on a par with the average<br />

for Europe’s best employers identifi ed<br />

by Hewitt Associates in their survey Best<br />

Employers, Best Results 2004.


then posted on the intranet site.<br />

Second, we hold an Annual<br />

Management Conference for senior<br />

management, at which the CEO<br />

reviews progress made during<br />

the year and sets objectives for<br />

the following year.<br />

This conference provides<br />

an opportunity for exchanging<br />

views and networking, and<br />

for personal and professional<br />

development.<br />

SPAIN<br />

Under the Reduciendo Distancias<br />

project, functional staff spend two<br />

days on a site. These get-to-knowyou<br />

sessions with site staff and<br />

the site manager keep the head<br />

offi ce in touch with the front line.<br />

This program, which has proven a<br />

great success, is being expanded to<br />

include return visits by front-line<br />

staff to their head offi ce contacts.<br />

DIALOGUE WITH EMPLOYEE REPRESENTATIVES<br />

EUROPE<br />

Established in 1998, the European<br />

Works Council was extended<br />

in 2004 to the new European<br />

Union member states; it now<br />

includes representatives from<br />

21 European countries. Meetings<br />

of the Council and of its offi cers<br />

have provided a forum for<br />

responding to questions raised<br />

by employee representatives<br />

about Sodexho’s results and<br />

future prospects, and for the joint<br />

development of a performance<br />

report covering issues related<br />

to employment, safety at work<br />

and gender equality.<br />

UNITED STATES<br />

Sodexho enjoys positive<br />

relationships with a number<br />

of unions. We have over<br />

300 collective bargaining<br />

VENEZUELA<br />

All heads of <strong>Human</strong> <strong>Resources</strong><br />

and other head offi ce departments<br />

make regular site visits to keep<br />

in touch with the day-to-day<br />

concerns of front-line staff.<br />

These visits are reinforced<br />

by monthly meetings between<br />

head offi ce department heads<br />

and the site managers. The overall<br />

aim: to improve the sharing<br />

of information.<br />

INTERNATIONAL<br />

Many of our subsidiaries ask their<br />

newly-hired managers to write a<br />

“fresh eyes” report on completion<br />

of their induction course. These<br />

reports are a valuable source of<br />

ideas for management.<br />

We also carry on constructive, fruitful dialogue with employee<br />

representatives, in accordance with the relevant legislation in<br />

each country. From the outset, Sodexho has always recognized<br />

and respected trade union rights.<br />

agreements with 35 different<br />

unions. We respect our employees’<br />

right to organize or not to organize<br />

as they may so choose.<br />

We continue to negotiate contracts<br />

with labor unions in good faith<br />

and have a longstanding record<br />

of continuing operations without<br />

work stoppages. We have engaged<br />

in constructive dialogues with<br />

unions who have raised issues<br />

with the company, and<br />

we believe those discussions<br />

have been benefi cial in dispelling<br />

misconceptions about<br />

the company, strengthening<br />

our union relationships, and<br />

enabling us to work constructively<br />

to resolve outstanding issues.<br />

In 2005, we have received no<br />

complaints or adverse fi ndings<br />

against the company by the NLRB<br />

(National Labor Relations Board).


Offering our employees…<br />

Safety and Wellness<br />

By promoting a fulfi lling professional life, we improve the Quality of Daily Life<br />

of our employees. We strive not only to provide our employees with a safe and<br />

pleasant working environment, but also to improve their lives and achieve<br />

a healthy work-life balance.<br />

ENSURING SAFETY AT WORK<br />

Everywhere we operate, we focus on risk prevention, to ensure<br />

that all our employees are safe in their workplace.<br />

AUSTRALIA<br />

Our subsidiary awards a Safety<br />

Sleuth prize to employees<br />

who introduce innovations or<br />

procedures that improve on-site<br />

safety.<br />

BELGIUM<br />

Our own “Workplace Prevention<br />

and Protection” unit performs a<br />

safety audit at around 150 sites<br />

every year. The aim is to identify,<br />

analyze and evaluate all safety<br />

risks, and suggest solutions to<br />

prevent and limit workplace<br />

accidents and their consequences.<br />

The audit fi ndings are reported<br />

both to management and<br />

to the client.<br />

14-15 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

FRANCE<br />

Under a nationwide agreement<br />

with the Red Cross, employees can<br />

receive basic fi rst aid training to<br />

enable them not only to help their<br />

colleagues, clients and consumers,<br />

but also to respond to emergencies<br />

outside the workplace.<br />

Indicators 2005<br />

Retention rate<br />

For the fiscal year 2005, the retention rate<br />

across all Group employees was 65.3%,<br />

an improvement of 3.8% from the previous<br />

fiscal year.<br />

Employee Engagement Survey<br />

According to the Sodexho Employee<br />

Engagement Survey () conducted in October<br />

2005 among Food and Management Services<br />

employees, 91% of those questioned said that<br />

they enjoyed their day-to-day work, 89% felt<br />

that they were fulfilled in their job and 80%<br />

believed they had a healthy work-life balance.


RECOGNITION FOR OUR COMMITMENT<br />

TO WORKPLACE QUALITY<br />

Ireland: Sodexho is rated by the Great Place<br />

To Work Institute as one of the country’s<br />

50 best employers, and has been cited<br />

as a “model” employer by the Minister<br />

for Enterprise, Trade and Employment.<br />

Bob Sulick,<br />

National Director<br />

of Procurement<br />

Support, Health Care<br />

Services Division.<br />

Meet…<br />

‘Be Healthy Sodexho’ became a motivating<br />

force for me to improve the way I approach<br />

life. I learned that small steps can lead<br />

to bigger rewards and that the physical<br />

benefi ts are matched by the mental ones as<br />

well. All I know is that since we initiated<br />

‘Be Healthy Sodexho’, I fi nd the time<br />

to exercise, eat a little smarter and feel<br />

a lot better about it.<br />

Sodexho encourages not only its customers but<br />

also its employees to adopt healthier lifestyles.<br />

The “Be Healthy Sodexho” program was<br />

launched in the United States in 2004.<br />

This one-year plan encourages everyone to<br />

regularly exercise, move to a balanced diet,<br />

and manage stress. The information packs<br />

supplied by Sodexho are supported by a<br />

dedicated website. Sports events are organized<br />

year-round to give employees further<br />

incentives to get healthy. The program is<br />

currently being followed by 2,000 employees.<br />

CULTIVATING HEALTHY LIFESTYLES<br />

A major food service actor committed to combating<br />

malnutrition, Sodexho takes a range of initiatives to encourage<br />

its employees to stay fi t by adopting a balanced diet and<br />

a healthy lifestyle.<br />

BELGIUM<br />

In October 2005, we held our fi rst<br />

“Sodexho Wellness Day”, offering<br />

a range of sports, leisure and<br />

recreational activities for all of our<br />

employees and their families.<br />

COLOMBIA<br />

We launched a “National Welfare<br />

Plan” in September 2005, focusing<br />

on the family, recreation, health<br />

and education. From vaccination<br />

of employees’ children to leisure<br />

activities and employee assistance<br />

programs, the plan helps to<br />

improve everyone’s quality of life.<br />

PROMOTING WORK-LIFE BALANCE<br />

UNITED KINGDOM<br />

The “Flexible Benefi ts” program<br />

covers a range of employees,<br />

from executives to site managers<br />

and administrative staff.<br />

Under the program, employees<br />

can choose from a range of benefi ts<br />

including paid leave, various<br />

levels of healthcare insurance,<br />

travel insurance or a company car.<br />

Support is provided via a 24-hour<br />

helpline. The program means that<br />

employees can choose the benefi ts<br />

package that works for them,<br />

and has proven very popular.<br />

Our home-working and distanceworking<br />

policy is also extremely<br />

FRANCE<br />

Sodexho offers various programs<br />

to help employees adopt healthy<br />

lifestyles. The Bol d’air program<br />

was devised to prevent heart<br />

disease and encourage employees<br />

to quit smoking. Those who<br />

sign up for the program get<br />

a full health check, including<br />

a blood test and a body mass index<br />

calculation. A “quit-smoking”<br />

group has been set up, with<br />

Sodexho meeting the cost of<br />

nicotine withdrawal assistance.<br />

Our subsidiary also organizes<br />

workshops on issues such<br />

as healthy eating and stress<br />

management.<br />

Where work patterns allow, many Group subsidiaries<br />

have arrangements for fl exible or reduced working hours,<br />

home-working and special leaves of absence. Employees<br />

are also offered services to help them achieve a healthy<br />

work-life balance.<br />

popular, because it substantially<br />

reduces the time spent commuting<br />

between home, the workplace<br />

and client premises. Employees<br />

are offered a range of out-ofoffi<br />

ce tools, from a basic internet<br />

connection to full systems<br />

installations for employees<br />

intending to work from home<br />

over the long term.<br />

UNITED STATES<br />

We improve the quality of daily<br />

life of our employees by offering<br />

a range of workplace services,<br />

from banking and dry-cleaning<br />

to postal services and car valeting.


WORKING WITH OUR EMPLOYEES<br />

TO BUILD<br />

a Business of Progress<br />

An Expertise-Driven Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />

A High-Performing Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />

An Interactive Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />

The Business of Tomorrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25<br />

16-17 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE


Working with our employees<br />

to build…<br />

An Expertise-Driven Business<br />

Sodexho takes a segmented approach to its activities in order to be a recognized<br />

specialist in the world of education, corporate life, health care, defense, and<br />

remote sites on land and at sea. But our understanding of these markets would<br />

count for nothing without the expertise and shared values of our employees, who<br />

pool their talents and skills to improve the Quality of Daily Life for all who share<br />

living or work spaces.<br />

“SODEXHO WORLD”: INTERACTION AND IDEA-SHARING<br />

Organized by the Sodexho Management Institute, “Sodexho World”<br />

is a three-day program attended by newly hired or promoted executives<br />

from all segments and countries in which we operate. The program provides<br />

an opportunity for them to interact and meet with members of the senior<br />

management team. The aim is for these new managers to “discover, breathe<br />

and grow the diverse, rich world of Sodexho”.<br />

SUCCESSFUL INDUCTION<br />

In many countries, we offer induction programs,<br />

introducing new employees to the breadth and diversity<br />

of our activities and promoting a shared culture.<br />

EUROPE<br />

Sodexho Pass invites new<br />

employees to a one-day induction<br />

course. The day starts with<br />

a presentation of the Group,<br />

the activitiy, and the subsidiary.<br />

Participants are then asked to<br />

prepare a business model for a<br />

new service, to be presented to<br />

management at the end of the<br />

day. This innovative training<br />

day gives new members a better<br />

understanding of the Group, making<br />

them aware of the full range of our<br />

activities and the future prospects<br />

for the activity.<br />

SWEDEN<br />

Two of our<br />

cleaning services<br />

trainers were<br />

awarded the<br />

Äpplet 2005<br />

prize. This prize<br />

is awarded annually to service<br />

companies, colleges and individuals<br />

that make an outstanding<br />

contribution to skills development<br />

in the workplace. These two<br />

highly committed women not only<br />

fulfi lled their training role, they<br />

also managed to build a true team<br />

spirit among trainees, easing their<br />

integration into the company.


TRAINING EXPERTS<br />

Children in schools, students in universities, adults in the<br />

workplace, patients in hospitals, seniors in care residences,<br />

inmates in prisons: all call for specialist skills and expertise. We<br />

provide specifi c training to our employees, focused on the needs<br />

of each market.<br />

AUSTRALIA<br />

In the Correctional Services<br />

segment, specialist high-security<br />

staff follow a six-day training course<br />

covering issues such as risk<br />

and threat analysis, negotiating<br />

skills and confl ict resolution.<br />

This program has been recognized<br />

by our client, the government<br />

of the State of Western Australia.<br />

DENMARK<br />

We have instituted “train-thetrainers”<br />

sessions for cleaning<br />

services staff. So far, 13 experienced<br />

and highly-motivated employees<br />

have been trained in presentation<br />

skills and in explaining best<br />

practices. This innovative project<br />

has received fi nancial backing from<br />

the Copenhagen city authorities,<br />

and is supported by a number<br />

of not-for-profi t organizations<br />

and advisers.<br />

FINLAND<br />

To prepare managers for assuming<br />

extra responsibilities, we have<br />

created a Sodexho Master<br />

of Business program in association<br />

with the Haaga Polytechnic college.<br />

We draw upon our expertise<br />

to provide practical training, while<br />

the college is responsible for the<br />

theoretical aspects of the course.<br />

18-19 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

INTERNATIONAL<br />

Culinary education: Sodexho<br />

has forged alliances with worldrenowned<br />

chefs such as Marc Veyrat<br />

and Anton Edelman. At the École<br />

des Chefs in France and the<br />

Culinary Academy in the United<br />

Kingdom, these star chefs transmit<br />

their creative fl air and passion for<br />

good food to Sodexho chefs keen<br />

to learn more and to renew their<br />

inspiration.<br />

In Remote Site Management,<br />

2005 saw the launch in the Gulf<br />

of Mexico of the “Mr. Charlie”<br />

program, aimed at staff selected to<br />

work offshore. The program takes<br />

place in a simulated offshore rig<br />

environment. It aims to train staff<br />

in handling specialist equipment,<br />

and to prepare them for the rigors<br />

of life offshore.<br />

Meet...<br />

Jean-Louis Boyer, General Services Manager<br />

TOTAL E&P, Angola.<br />

We chose Universal Sodexho for its knowledge<br />

of the local context as well as its proven<br />

record of technical maintenance skill.<br />

After one year, we are very satisfi ed<br />

with our choice. Universal Sodexho provides<br />

high quality services in keeping with Total<br />

standards and our expectations, and<br />

has succeeded in developing a network of<br />

local businesses to participate in contract<br />

performance. Regular reporting has been<br />

introduced to improve the management of<br />

our facilities and properties in Luanda and<br />

create a more pleasant living environment<br />

for our employees.<br />

Universal Sodexho provides maintenance<br />

services for Total E&P in Luanda, covering<br />

industrial plant, offi ces, accommodation and<br />

on-site social and leisure facilities, along with<br />

a broad range of add-on services – delivering<br />

a better quality of life for all, in a safe<br />

and secure environment.<br />

Olivier Roellinger, Les Maisons de Bricourt,<br />

Cancale, France.<br />

Sodexho’s commitment to improving<br />

the quality of day-to-day meal preparation<br />

is an aim I am proud to support.<br />

My role is to pass on my know-how to<br />

the people from Sodexho. This involves<br />

showing them the right way to prepare<br />

each dish, and how to select the fi nest<br />

ingredients. I am glad that I am helping<br />

so many people to enjoy healthy,<br />

balanced and appetizing menus.<br />

Sodexho has forged partnerships with six of<br />

France’s foremost chefs: Michel Bras, Jacques<br />

Chibois, Pierre Gagnaire, Jean-Michel Lorain,<br />

Olivier Roellinger and Marc Veyrat, who are<br />

developing the talent and skills of our chefs.


A VAST RANGE OF EXPERTISE<br />

Chefs, maîtres d’hôtel, wine masters,<br />

housekeepers, laundry workers, dieticians,<br />

ergonomists, nutritionists, landscape<br />

gardeners, logistics experts, security guards,<br />

mechanics, electronic engineers, heating<br />

engineers, environmental consultants,<br />

biohygienists, tutors, trainers, demonstrators,<br />

IT experts, quality controllers, buyers…<br />

all our specialists pool their expertise so<br />

that we can deliver, every day, services<br />

that improve the Quality of Daily Life.<br />

TEACHING OUR KNOW-HOW<br />

Sodexho’s renowned know-how makes us a preferred partner<br />

of schools, colleges and universities, worldwide.<br />

FRANCE<br />

Partnerships have been forged with<br />

30 business schools, engineering<br />

schools and universities, and with<br />

40 hotel and catering training<br />

institutions. Sodexho attends job<br />

fairs, provides training and is<br />

involved in examination boards.<br />

UNITED KINGDOM<br />

Sodexho is one of a select number<br />

of employers authorized by the<br />

government to award its employees<br />

National Vocational Qualifi cations<br />

in hospitality, management and<br />

customer service.<br />

SODEXHO UNIVERSITY NORTH AMERICA,<br />

“YOUR GATEWAY TO LEARNING”<br />

SWEDEN<br />

Five years ago, Sodexho entered<br />

into a partnership with the Service<br />

Management Institute, part of the<br />

prestigious Lund University. This<br />

institute offers Sweden’s largest<br />

Management Master’s program<br />

for the services sector. Sodexho<br />

helps to create the course program,<br />

and provides students with work<br />

experience so that they can test<br />

their knowledge in the workplace.<br />

In North America, Sodexho University offers a vast range of training, from<br />

professional and nutritional techniques to advanced management, along<br />

with courses in sales, marketing and innovation. Modules can be studied<br />

at the Sodexho Campus, via the Intranet, in the workplace, or at partner<br />

institutions. The courses draw upon a variety of learning aids, including<br />

the “TOPS Learning Box” for frontline employees () .


Working with our employees<br />

to build…<br />

A High-Performing Business<br />

Effective career management means helping our employees to recognize<br />

their strengths, encouraging them to perform well, and assessing their<br />

performance. Rewarding performance is also an important factor in staff<br />

retention which, by enabling us to serve our clients and customers better,<br />

contributes directly to the success of the Group.<br />

MANAGING PERFORMANCE<br />

Performance management is integral to Sodexho’s human<br />

resources policy.<br />

Executive Performance Assessment<br />

is an annual process applied in<br />

all Sodexho companies.<br />

Each manager has an interview<br />

with his/her boss using<br />

a structured, pre-prepared format.<br />

The interview provides an<br />

opportunity to discuss<br />

the manager’s opinions, goals and<br />

aspirations, covering all aspects of<br />

his/her work. These are then taken<br />

into account in career planning.<br />

20-21 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

After being piloted in<br />

the United Kingdom, Ireland<br />

and North America, the “360°”<br />

assessment process was rolled out<br />

in November, 2005 for the Group’s<br />

Executive and Operational<br />

Committees and for the Sodexho<br />

France and Sodexho Pass<br />

International Executive<br />

Committees. This assessment<br />

process will be eventually<br />

extended to all managers reporting<br />

directly to these committees.<br />

The aim: to help managers<br />

to know themselves better and<br />

to progress within the company<br />

by giving them an overview<br />

of feedback from their boss,<br />

their peers and their teams.<br />

Meet...<br />

Renata Peixoto, Marketing Analyst,<br />

head offi ce, São Paulo.<br />

I’ve been with Sodexho for fi ve years.<br />

I started as a site manager. In the fi rst few<br />

years, I had to deal with a wide variety<br />

of challenges with some of our clients,<br />

and I was able to show at my performance<br />

evaluations that I had marketing skills<br />

and could do other things. At the start of<br />

this year, I was pleasantly surprised when<br />

the <strong>Human</strong> <strong>Resources</strong> department offered<br />

me a marketing analyst job that was just<br />

what I wanted. I’m really pleased that<br />

Sodexho encouraged me to progress in my<br />

career!<br />

Renata Peixoto benefi ted from Progrida,<br />

a program designed to promote the career<br />

development of functional and operational<br />

employees in our Brazilian subsidiary.


THE SPIRIT OF SODEXHO<br />

NORTH AMERICA<br />

The “Spirit of Sodexho” program was<br />

implemented four years ago. Each year,<br />

those employees who best embody in their<br />

day-to-day work, Sodexho’s philosophy and<br />

core values are recognized and rewarded.<br />

All Sodexho employees in the United States<br />

and Canada are eligible. To participate,<br />

they are nominated by their boss in one of<br />

the following seven categories:<br />

customer satisfaction and client retention;<br />

sales;<br />

developing our people;<br />

team safety;<br />

food safety;<br />

technical achievement;<br />

leadership in the support of diversity and<br />

inclusion.<br />

In each category, employees are selected<br />

at three levels: region, division and North<br />

America zone.<br />

Division-level winners qualify for the zonelevel<br />

competition with a jury comprising<br />

members of the Executive Committee of<br />

the zone.<br />

Category winners for the North America<br />

zone are invited to the Annual Conference<br />

to receive their trophy and a bonus.<br />

ENCOURAGING PERFORMANCE<br />

We operate a broad range of incentive programs in the fi eld,<br />

designed to encourage client and customer service performance<br />

by individuals and teams.<br />

CANADA<br />

The “Bravo”<br />

program raises<br />

the front-line<br />

staff awareness of client service<br />

expectations, and links team<br />

performance to individual<br />

performance. Twice a year, team<br />

performance targets (client<br />

satisfaction, cost reduction,<br />

attendance, punctuality, etc.) are<br />

set for each site, based on client<br />

needs. The staff are informed of<br />

these targets, which are monitored<br />

by site management. At the end<br />

of each six-month period, bonuses<br />

are awarded to employees at sites<br />

that have met their targets.<br />

REWARDING PERFORMANCE<br />

Performance assessment is often accompanied by programs<br />

under which the brightest and best are selected by their peers<br />

or managers. The winners are offi cially recognized and<br />

are rewarded for setting an example and for creating value<br />

for the Group.<br />

AUSTRALIA<br />

The annual “Star Awards” scheme<br />

rewards employees in a variety<br />

of fi elds: client service, safety,<br />

marketing and merchandising,<br />

innovation, fi nancial management<br />

and human resources.<br />

ITALY<br />

The Generare Valore (Value<br />

Creation) scheme, launched in the<br />

Education segment in fi scal year<br />

2005, rewards the best performers<br />

in the “Site Staff”, “Chef”, “Site<br />

Manager” and “Administration-<br />

Support” categories. The winners,<br />

selected by an internal jury, were<br />

presented with their prizes at the<br />

Divisional Meeting, and interviews<br />

with them were published in<br />

the in-house magazine Conoscersi.<br />

FRANCE<br />

Assessment Centers have been (or<br />

are about to be) established in each<br />

segment, to identify site managers<br />

with the potential to progress to<br />

district manager. There are three<br />

stages in the process. First, the<br />

Regional Director presents a case for<br />

the employee identifi ed as having<br />

promotion potential. Second, the<br />

candidate and the head of <strong>Human</strong><br />

<strong>Resources</strong> jointly sign a charter<br />

specifying the rights and obligations<br />

of the company and the employee.<br />

The fi nal phase is selection day:<br />

the candidate presents his/her case<br />

for promotion to a regional director<br />

and a human resources manager,<br />

and works on a case study.<br />

PERU<br />

In the Business and Industry and<br />

Remote Site Management segments,<br />

most sites present a monthly award<br />

to an employee, based on criteria<br />

such as punctuality, performance<br />

and safety.<br />

SWEDEN<br />

Each employee can nominate as<br />

“Employee of the Month” a<br />

colleague who, in their opinion,<br />

embodies “service spirit, team spirit<br />

and spirit of progress”. For the<br />

fi scal year 2005, 53 employees were<br />

nominated, and profi led in the<br />

in-house magazine. Line managers<br />

then selected fi ve fi nalists. The<br />

fi nalists, and the winner, received<br />

their awards from the Chief<br />

Executive for Sweden and the<br />

Senior Vice President for Northern<br />

Europe at a ceremony held at the<br />

end of September.


Working with our employees<br />

to build…<br />

An Interactive Business<br />

Our international dimension is a huge strength. Built on a rich mix of cultures,<br />

experience and talents contributed by our 324,000 people worldwide,<br />

Sodexho encourages knowledge-sharing as a means of delivering synergies<br />

and of serving our clients and customers better.<br />

GLOBAL HR WORKING GROUP<br />

The Global HR Working Group meets regularly, bringing together<br />

the heads of <strong>Human</strong> <strong>Resources</strong> from all zones and activities. An opportunity<br />

for interaction and idea-sharing, the group is a forum for discussing,<br />

developing and implementing strategic human resource management<br />

projects.<br />

GLOBAL DIVERSITY NETWORK<br />

The Global Diversity Network, led by Rohini Anand, Chief Diversity Offi cer<br />

for North America, addresses diversity issues across the Group<br />

by co-ordinating key players, initiating action and monitoring progress<br />

(see “Equality of opportunity, commitment to diversity”, p.6).<br />

GENERATING SYNERGIES<br />

INTERNATIONAL<br />

The Sodexho Management Institute<br />

and its training network<br />

Interaction between “Sodexho<br />

World” participants from around<br />

the world (see “An expertisedriven<br />

business”, p. 18) makes the<br />

Sodexho Management Institute<br />

(SMI) a clearing-house for best<br />

practices, especially in the area of<br />

training. The SMI helps countries<br />

develop strategies and programs<br />

tailored to their needs. In India<br />

and Russia, for example, the SMI<br />

– in association with Sodexho<br />

University in the United States –<br />

has been involved in preparing<br />

an executive induction program.<br />

And the Czech Republic has used<br />

22-23 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

the SMI’s resources to identify<br />

and adapt cost-effective customer<br />

service training, based on best<br />

practices applied in other countries.<br />

The SMI has set up a project team,<br />

comprising the heads of <strong>Human</strong><br />

<strong>Resources</strong> and Training from each<br />

of the main geographical zones, to<br />

work on the development<br />

of programs.<br />

Meet...<br />

Tina Caldwell, Vice President, Group Training,<br />

Sodexho Alliance.<br />

I recently transferred from my home country,<br />

the United States, to take up the post<br />

of Vice President Group Training in Paris.<br />

For me, this is a tremendous opportunity<br />

to get to know the company in more depth,<br />

broaden my vision of the business,<br />

add new skills and draw on the experiences<br />

of colleagues from other cultures and<br />

backgrounds. It has been interesting to note<br />

that we face many of the same challenges,<br />

and through regular communication,<br />

networking and sharing of the best practices,<br />

we can solve many of these challenges<br />

collectively.


ENRICHMENT THROUGH DIVERSITY<br />

Sodexho encourages employees to transfer internationally<br />

within the Group. There are two key benefi ts: best practices can<br />

be exchanged between home and host country, and employees<br />

can gain personally and professionally from exposure to<br />

different cultures and environments.<br />

CHINA<br />

The Chief Executive of Sodexho<br />

in China, with assistance from the<br />

French subsidiary, hired Chinese<br />

interns who were studying at the<br />

Euromed management school in<br />

Marseille. Four students were<br />

chosen to complete internships in<br />

France in fi nance, marketing and<br />

quality before joining Sodexho in<br />

China.<br />

FRANCE<br />

The Food and Management Services<br />

activity benefi ts from exchanges<br />

not only with other countries<br />

in Europe, Latin America and<br />

Asia, but also with the Remote<br />

Site Management and Service<br />

Vouchers and Cards activities. For<br />

example, the Marketing Director<br />

for the Education segment comes<br />

from Brazil, a number of district<br />

managers previously worked for<br />

Universal Sodexho, and a former<br />

district manager in France now<br />

holds a regional directorship in<br />

Brazil.<br />

INTERNATIONAL<br />

In Service Vouchers and Cards,<br />

international transfers help to meet<br />

specifi c needs in the host country<br />

while broadening the horizons<br />

of the employees involved. Juan<br />

Camilo Chavez, Chief Executive<br />

of the Sodexho subsidiary in his<br />

native Colombia, took over as<br />

Chief Executive in Mexico: a new,<br />

fast-developing country, with<br />

unique challenges. Jorge Elias<br />

Oliveira, Deputy Sales Director<br />

in Brazil, was transferred to<br />

Mexico. Valentina Rusu, Financial<br />

Controller in Romania, became<br />

Financial Controller for the Central<br />

Europe zone, based in Paris.<br />

LATIN AMERICA<br />

Shared experiences and knowledge<br />

transfer are part of day-to-day<br />

working life in the Latin American<br />

operations. Venezuela has sent key<br />

managers to other countries in the<br />

zone to investigate best practices<br />

that could be adapted to their home<br />

country. Peru has supplied staff to<br />

Chile, Venezuela and Argentina to<br />

fi ll skills gaps in those countries,<br />

and has also invited specialists<br />

from other countries to help local<br />

staff on specifi c issues such as new<br />

contract start-ups.


Working with our employees<br />

to build…<br />

The Business of Tomorrow<br />

<strong>Human</strong> resources planning has always played an important role in Sodexho’s<br />

development. As we now have a broad international presence, in ever more<br />

complex and demanding environments and markets, the profi les and skill<br />

sets of our people need to change. The challenge is to identify and prepare<br />

people for our future.<br />

FINDING TOMORROW’S LEADERS AT EVERY LEVEL<br />

Sodexho is aiming to make a genuine qualitative leap in succession<br />

planning, by hiring and integrating the best talent and retaining loyal,<br />

motivated and committed managers. A big step came in 2005 with<br />

the establishment of a dedicated Executive Recruitment<br />

and Development department.<br />

ADAPTING TO CHANGE<br />

Our markets and activities are changing faster than ever.<br />

We are constantly adapting our recruitment, induction<br />

and training programs to ensure that our people are ready<br />

to meet these new challenges.<br />

AUSTRALIA<br />

The Sodexho Learning<br />

Institute has responded to the<br />

rapid development of IT and<br />

communications systems by<br />

focusing managerial training on<br />

new management tools in order to<br />

achieve greater effectiveness while<br />

reducing costs. Training is offered<br />

on online systems such as “Click<br />

N’ Buy” (purchasing), “E-tivity”<br />

(time management) and “Adalta”<br />

(order, purchasing and billing<br />

management).<br />

24-25 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

BRAZIL<br />

In Service Vouchers and Cards,<br />

swipe-cards are gradually<br />

replacing paper vouchers.<br />

To make this change work,<br />

we not only had to hire technical<br />

specialists and integrate them<br />

quickly, but also provide extensive<br />

training to existing staff. Because<br />

our people were well prepared<br />

and highly motivated, the fi rst<br />

phase of migration from food<br />

vouchers to swipe-cards was<br />

completed without a hitch.<br />

MONITORING PROGRESS WITH HR<br />

REVIEWS<br />

HR Reviews are used to monitor the HR<br />

Plans devised for the Group and individual<br />

entities on the basis of the 3-year Strategic<br />

Plan. These reviews involve meetings, held<br />

at least once a year, between Chief Executive<br />

Offi cers and Heads of <strong>Human</strong> <strong>Resources</strong><br />

from two levels in the management structure.<br />

The aim of the meetings is to assess progress<br />

made during the year: implementation of<br />

organizational changes, planned strategic<br />

hirings and promotions, delivery of training,<br />

staff retention initiatives (for executives,<br />

site managers and other staff), progress on<br />

diversity issues, etc.


PROMOTING APPRENTICESHIPS<br />

In France, over 200 people are on<br />

apprenticeship at Sodexho every year. In June<br />

2005, the company signed an Apprenticeship<br />

Charter, under the auspices of the Institut<br />

de l’Entreprise, under which it undertakes<br />

to increase the number of apprentices by 20%<br />

over the next two years.<br />

Henri Fauquenois,<br />

Vice President,<br />

<strong>Human</strong> <strong>Resources</strong>,<br />

Sodexho Pass<br />

International.<br />

Meet…<br />

<strong>Human</strong> resources planning requires<br />

commitment from everyone.<br />

Though our human resources teams lead<br />

the way, making our policies work involves<br />

a collective effort.<br />

For Sodexho Pass, as for the Group as a whole,<br />

succession planning is a major issue.<br />

Over the last two years, 32 out of 50 executive<br />

posts have been fi lled by internal promotions.<br />

The “People and Organization” review process,<br />

used systematically at country, zone and<br />

activity level, is designed to spot talent at every<br />

level – and also helps management to get to<br />

know their staff and assess their performance.<br />

UNITED KINGDOM<br />

Site managers need to acquire<br />

new skills to cope with the<br />

expansion of our offering and the<br />

growing complexity of contracts.<br />

To meet this challenge, Sodexho<br />

established this year the Job<br />

Evaluation Framework, which<br />

enables site managers to clarify<br />

various aspects of their job and<br />

prepare better for changes in their<br />

role. This process was recently<br />

extended to district and support<br />

function managers.<br />

INTERNATIONAL<br />

In Remote Site Management,<br />

our clients want a global partner<br />

capable of providing all<br />

the services they need.<br />

Universal Sodexho has identifi ed<br />

three major priorities for<br />

PLANNING OUR RESOURCES FOR THE FUTURE<br />

We make every effort to prepare the next generation of Sodexho<br />

people to meet the challenges of tomorrow. The focus is more<br />

than ever on internal promotion, but we are always ready to<br />

search for new resources.<br />

AUSTRALIA<br />

Sodexho encourages the hiring of<br />

apprentices and interns at every<br />

site and in every region, especially<br />

in food service, maintenance and<br />

administrative services, where<br />

there is predicted to be a shortfall<br />

in human resources in the years to<br />

come.<br />

FRANCE<br />

The Route 2010 return-to-growth<br />

project is based on resource<br />

planning and on the “Deputy For<br />

Every Site” policy introduced a few<br />

years ago. The aim of this policy<br />

is to identify within each site team<br />

someone with the competencies,<br />

personal attributes and potential,<br />

fi rst to be delegated certain tasks,<br />

strategic development: facilities<br />

management, camp construction,<br />

and vehicle fl eet management.<br />

To help translate these priorities<br />

into reality, a human resources<br />

plan has been prepared, so that we<br />

can hire the right people, provide<br />

appropriate training and manage<br />

individual career paths.<br />

In March, 2005 we hired<br />

Christophe Airault, an engineer<br />

with an MBA. A tailored<br />

induction program was devised,<br />

with training placements in<br />

Poland and the United States,<br />

and at the head offi ce, covering<br />

the various aspects<br />

of multiservice. In the fi eld,<br />

in Papua New Guinea, Christophe<br />

soon showed himself to be<br />

an effective performer, and signed<br />

an extension to his contract.<br />

then to stand in temporarily for<br />

the site manager, and fi nally to<br />

be promoted to site manager<br />

themselves. The employee selected<br />

for this role receives on-the-job<br />

training from the site manager<br />

and a tailored training program.<br />

In addition, all site managers<br />

are trained in recruitment and<br />

assessment techniques, as part<br />

of the drive to make all managers<br />

aware of human resources issues.<br />

COLOMBIA, COSTA RICA, PERU,<br />

VENEZUELA<br />

A “Risk Matrix” provides<br />

a bi-monthly assessment of the risk<br />

that site managers will leave the<br />

company, and helps devise action<br />

plans to reduce such risks.


KEY DATA<br />

Employees<br />

�����<br />

�����<br />

�����<br />

�����<br />

�����<br />

Number of employees<br />

Employees by activity<br />

�������<br />

�������<br />

�������<br />

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Food and Management Services 99%<br />

42% Business and Industry<br />

4% Defense<br />

1% Correctional Services<br />

14% Healthcare<br />

3% Seniors<br />

26% Education<br />

7% Remote Sites<br />

2% Shared structures<br />

Service Vouchers and Cards 1%<br />

26-27 / HUMAN RESOURCES REPORT 2005 / SODEXHO ALLIANCE<br />

Group Workforce by category and by gender<br />

Male Female Total<br />

Non-managerial 118,280 167,016 285,296<br />

Managerial 22,162 16,988 39,150<br />

Total 140,442 184,004 324,446<br />

Employees by region<br />

���� North America<br />

���� Continental Europe�<br />

���� United Kingdom and Ireland<br />

���� Africa, Asia and Pacific Rim�<br />

���� Latin America �


Recruitment<br />

Percentage of recruits on permanent<br />

contract (excluding staff assumed from other<br />

service-providers) relative to average workforce (1)<br />

Non-managerial Managerial Total<br />

45.7% 12.8% 41.6%<br />

Percentage of employees hired locally<br />

In 2004-2005,<br />

98% of Sodexho’s employees were hired locally.<br />

Internal promotion<br />

Percentage fi lled by internal promotion from<br />

one category to another relative to total vacancies (2)<br />

Site manager Manager<br />

25.5% 38.1%<br />

During fi scal year 2005, the Group made 1,869 internal promotions<br />

comprising 1,545 promotions to site manager grade and 324<br />

to manager grade.<br />

Training<br />

Percentage of average workforce<br />

who have undergone training (3)<br />

Non-managerial Managerial Total<br />

59.0% 76.3% 61.1%<br />

Number of training days (4) : 521,267 days<br />

Employee share ownership<br />

Number of employees owning Sodexho shares as of August 31, 2005: 28,270<br />

(1) Scope = 94% of Group employees as of August 31, 2005.<br />

(2) Scope = 96% of Group employees as of August 31, 2005.<br />

(3) Scope = 97% of Group employees as of August 31, 2005.<br />

(4) Scope = 100% of Group employees as of August 31, 2005.<br />

Number of recruits on permanent<br />

contract by category (1)<br />

Non-managerial Managerial Total<br />

118,684 4,772 123,456<br />

Number of people who<br />

have undergone training (3)<br />

Non-managerial Managerial Total<br />

157,980 28,630 186,610


Safety at work<br />

Percentage of work-related accidents relative<br />

to average workforce (1)<br />

Non-managerial Managerial Total<br />

3.4% 1.0% 3.1%<br />

Employee Opinion Survey<br />

Published by Sodexho Group <strong>Human</strong> <strong>Resources</strong><br />

Design, Creation and Production:<br />

Number of work-related accidents (1)<br />

Non-managerial Managerial Total<br />

8,919 378 9,297<br />

An opinion survey is conducted every two years.<br />

The fi rst wave of the 2005-2006 Sodexho Employee Engagement Survey (2) was conducted in October, 2005 in 7 European<br />

countries for Food and Management Services (Belgium, Germany, Finland, Italy, Netherlands, Spain and Sweden)<br />

and 19 countries for Service Vouchers and Cards (Argentina, Belgium, Brazil, Chile, Colombia, Czech Republic,<br />

France, Germany, Hungary, India, Italy, Luxembourg, Mexico, Poland, Romania, Slovakia, Spain, United Kingdom<br />

and Venezuela). The second wave will take place in April, 2006 in the following countries: Food and Management<br />

Services – Australia, Brazil, Canada, Chile, China, France, United Kingdom and Ireland, United States; Remote Site<br />

Management – the Middle East zone; Service Vouchers and Cards – China.<br />

First-wave results: overall satisfaction rating of 48% for Food and Management Services and 56% for Service<br />

Vouchers and Cards.<br />

Employee retention<br />

As of August 31, 2005, the employee retention rate was:<br />

87.9% for site managers;<br />

65.3% for all employees.<br />

(1) Scope = 96% of Group employees as of August 31, 2005.<br />

(2) This survey is conducted by questioning personnel about their engagement with the company. An employee is engaged if he/she says positive things<br />

about the company (“Say”), wishes to remain with the company (“Stay”), and is committed to the company’s success (“Strive”).<br />

Photo credits: photo media library Sodexho Group and photo library Terre de Sienne


www.sodexho.com

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