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Nestlé in society Creating Shared Value and meeting our commitments 2015

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<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong>:<br />

Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong><br />

Nutrition, health<br />

<strong>and</strong> wellness<br />

Rural development<br />

Water<br />

Environmental<br />

susta<strong>in</strong>ability<br />

Human rights<br />

<strong>and</strong> compliance<br />

Our<br />

people<br />

Market presence G4-DMA, G4-EC6, Tra<strong>in</strong><strong>in</strong>g <strong>and</strong> education G4-DMA, G4-LA11<br />

Develop<strong>in</strong>g people<br />

We seek to provide each of <strong>our</strong> employees with opportunities to grow, evolve <strong>and</strong> contribute. We champion the<br />

idea of life-long learn<strong>in</strong>g, believ<strong>in</strong>g that fulfilled employees create satisfied consumers. The <strong>in</strong>ternational nature of<br />

<strong>our</strong> bus<strong>in</strong>ess is a major attraction for employees <strong>and</strong> we offer opportunities to work <strong>in</strong> different locations,<br />

<strong>in</strong>clud<strong>in</strong>g short-term projects, long-term expatriation <strong>and</strong> local transfers. Our learn<strong>in</strong>g solutions are delivered to<br />

meet the specific needs of employee groups, from e-learn<strong>in</strong>g tools to face-to-face tutorials, workshop sessions,<br />

local posters, <strong>and</strong> activities <strong>and</strong> <strong>in</strong>formation employees can take home to their families. Dur<strong>in</strong>g the past year,<br />

<strong>Nestlé</strong> has <strong>in</strong>creased tra<strong>in</strong><strong>in</strong>g per employee from 28.8 h<strong>our</strong>s to 31.6 h<strong>our</strong>s per year.<br />

Develop<strong>in</strong>g <strong>our</strong> capabilities<br />

Learn<strong>in</strong>g is part of <strong>our</strong> company culture. We believe <strong>in</strong><br />

shar<strong>in</strong>g knowledge <strong>and</strong> ideas freely with others to seek<br />

cont<strong>in</strong>uous improvement. Employees at all levels are<br />

systematically enc<strong>our</strong>aged to assess how they enhance their<br />

skills <strong>and</strong> knowledge.<br />

Experience <strong>and</strong> on-the-job tra<strong>in</strong><strong>in</strong>g are the primary s<strong>our</strong>ces<br />

of learn<strong>in</strong>g. We foster development plans that embed the<br />

70/20/10 approach to build robust capabilities for <strong>our</strong> people<br />

<strong>and</strong> <strong>our</strong> bus<strong>in</strong>ess.<br />

• 70% practical experience (e.g. job rotations, special<br />

assignments, live projects);<br />

• 20% relationship-based (e.g. mentor<strong>in</strong>g, network<strong>in</strong>g); <strong>and</strong><br />

• 10% formal education (e.g. tra<strong>in</strong><strong>in</strong>g, e-learn<strong>in</strong>g,<br />

conferences).<br />

The plans are reviewed aga<strong>in</strong>st chang<strong>in</strong>g career paths <strong>and</strong><br />

new opportunities, with at least one formal discussion per<br />

year. Around 76% of <strong>our</strong> employees received regular<br />

performance <strong>and</strong> career development reviews <strong>in</strong> <strong>2015</strong>.<br />

Our Progress <strong>and</strong> Development Guide gives structure to the<br />

discussions between employees <strong>and</strong> l<strong>in</strong>e managers about<br />

future career aspirations. Managers are responsible for<br />

guid<strong>in</strong>g <strong>and</strong> coach<strong>in</strong>g employees to succeed <strong>in</strong> their current<br />

positions. Practices such as lateral professional development,<br />

extension of responsibilities, <strong>and</strong> cross-functional teams are<br />

enc<strong>our</strong>aged to acquire additional skills, enrich job content <strong>and</strong><br />

widen accountability.<br />

Recruit<strong>in</strong>g <strong>and</strong> develop<strong>in</strong>g local talent with local knowledge<br />

rema<strong>in</strong>s crucial to ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g <strong>our</strong> success, especially <strong>in</strong><br />

develop<strong>in</strong>g countries where the proportion of native<br />

employees at management levels lags beh<strong>in</strong>d that of more<br />

developed countries. In <strong>2015</strong>, 63.3% of Local Management<br />

Committee members <strong>in</strong> develop<strong>in</strong>g countries were native to<br />

that country.<br />

Employees by gender who received regular performance<br />

<strong>and</strong> career development reviews <strong>in</strong> <strong>2015</strong> (%)<br />

Employees by function who received regular performance<br />

<strong>and</strong> career development reviews <strong>in</strong> <strong>2015</strong> (%)<br />

Corporate Affairs 77<br />

& Communications<br />

F<strong>in</strong>ance & Control 79<br />

Market<strong>in</strong>g & Sales 59<br />

ISIT 87<br />

Human Res<strong>our</strong>ces 73<br />

Procurement 80<br />

Research & Development 81<br />

Technical & Production 62<br />

Local Management Committee members native to country<br />

<strong>in</strong> develop<strong>in</strong>g countries <strong>in</strong> <strong>2015</strong> (%)<br />

<strong>2015</strong> 63.3<br />

2014 56<br />

Expatriates at <strong>Nestlé</strong>’s headquarters <strong>and</strong> central functions<br />

from emerg<strong>in</strong>g markets (%)<br />

<strong>2015</strong> 53<br />

2014 43<br />

Employee Job Success Profiles<br />

Our Job Success Profiles help employees underst<strong>and</strong> what<br />

they must do to succeed <strong>in</strong> a particular role. They are<br />

published at a corporate level, local levels <strong>and</strong> on the <strong>in</strong>tranet,<br />

along with <strong>in</strong>formation about possible career paths with<strong>in</strong><br />

certa<strong>in</strong> functions. The profiles also identify opportunities for<br />

development <strong>in</strong> functional <strong>and</strong> leadership capabilities. For<br />

factory operators, we use a tailored skills matrix to track<br />

<strong>in</strong>dividual learn<strong>in</strong>g <strong>and</strong> development needs.<br />

Women 67<br />

Men 65<br />

This data is based on 2014 performance cycle where we had a coverage of 66%. <strong>2015</strong><br />

performance cycle is not yet completed, this metric will be available end April 2016.<br />

<strong>Nestlé</strong> <strong>in</strong> <strong>society</strong> – Creat<strong>in</strong>g <strong>Shared</strong> <strong>Value</strong> <strong>and</strong> meet<strong>in</strong>g <strong>our</strong> <strong>commitments</strong> <strong>2015</strong> 285

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