Nestlé in society Creating Shared Value and meeting our commitments 2015

Nestlé in society:
Creating Shared Value
Nutrition, health
and wellness
Rural development
Water
Environmental
sustainability
Human rights
and compliance
Our
people
G4-10, Market presence G4-DMA, Employment G4-DMA, G4-LA1, G4-LA2, G4-LA4
Rate of employee turnover by region (%)
Group 2013 2014 2015
Total rate of employee turnover 11.1 11.7 12.5
EMENA 8.3 10 11.2
AMS 13.5 14 14.2
AOA 11.1 10 11.6
Covers Nestlé employees registered in the HR system (approximately 84% of all employees).
Working conditions
Nestlé promotes the continuous improvement of our working
conditions. It is our goal that no one working at Nestlé should be
subject to differences in conditions as a result of their
employment status. We have developed and introduced
Working Conditions Action Plans with our markets. The plans
support compliance with our Policy on Conditions of Work and
Employment and, to date, 66% of our markets have fully
implemented them. This calculation is based on 106 countries,
with Nestlé in the United States counted as four separate entities
(Nestlé USA, Nespresso, Nestlé Waters and Purina). By the end
of 2016, we expect an implementation of more than 90%.
While we favour permanent employees for core activities, we
also use temporary employees to meet the short-term needs of
the business. When we outsource work to service providers, our
Policy on Conditions of Work and Employment and Supplier
Code clearly set out the minimum standards relating to labour
standards (such as working hours and wages) and the safety
and health of employees, which we expect all of our service
providers to meet.
Limiting working time
We monitor the working time of our employees according to
local law, addressing issues as they arise. Since 2012, we are
seeking to limit working time to a maximum of 60 hours a
week across our operations including overtime. More than
85% of our markets have implemented the 60-hour weekly
schedule (in 25 of those markets it is a legal requirement) and
we use commonly occurring Group Audit findings to prioritise
improvement projects and training.
Minimum notice period
Before making operational changes that could substantially
affect our employees, we provide a period of notice outlining
the proposed changes. While a minimum period and
provisions for consultation and negotiation are specified in
collective agreements in 28 countries, in others, it depends on
local laws. On average, the period is 38 days.
Total Rewards Policy
As an Employer of Choice, Nestlé wishes to provide
comprehensive and competitive employee rewards. Our global
Total Rewards Policy outlines the employment package we
provide for employees. It broadly covers:
• Fixed pay;
• Variable pay;
• Employee benefits;
• Personal growth and development; and
• Work–life environment.
The principles outlined in the policy provide the common
framework within which individual markets can create
competitive local programmes that meet business needs and
comply with local legislation. The approach is designed to
attract, retain and engage talented employees.
To support our policy, line managers and HR professionals
use an online Total Rewards Learning Centre when dealing
with performance and rewards (including compensation and
benefits). This was supplemented in 2015 by new Total
Rewards training for HR business partners, enabling them to
assist line managers more effectively on reward topics.
In 2014, we launched a Total Rewards toolkit portal,
designed to help local business operations ensure their
rewards programme is competitive, compelling, cost effective
and well understood. This on-demand solution is being
reinforced in Europe, the Middle East and North Africa, where
countries will be required to use the toolkit as a mandatory
element in developing their annual People Plans.
Delivering a living wage
We recognise that in some countries, the legal minimum wage
levels do not fulfil the basic needs of a worker. As stated in our
policies, Nestlé commits to verify periodically that our lowest
level of salaries (and benefits) comply with local laws and
importantly that they are competitive, allowing employees to
cover their needs according to local standards of living.
Back in 2013, we started a programme with Business for
Social Responsibility (BSR), to identify gaps in how the living
wage is treated across our operations. It seeks to:
• Establish and validate the living wage rates (gross per
annum in local currency);
• Identify all Nestlé regular and temporary employees (directly
hired) with salaries below these rates; and
• Establish appropriate action plans to adjust remuneration.
The results of six pilots in 2013 demonstrated that some living
wage gaps existed and we implemented corrective actions. For
the wave 1 roll-out in 2014, 29 countries were covered. In 2015,
we expanded the programme to 38 additional countries for the
wave 2 roll-out across the countries where Nestlé operates. By
the end of 2015, the company’s living wage analysis had been
completed in a total of 73 countries (between the launch of the
programme in 2013, and the wave 2 roll out in 2015). The five
countries where some employees have been identified with
remuneration below the established living wage rates during the
2015 roll-out exercise will have the employees’ remuneration
adjusted by 1 April 2016. The roll-out will be completed in all
countries where we operate by the end of 2016.
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