APC 2001 Annual Report Download - page 32

Increase
our People’s commitment
Challenges
Encourage
team spirit and risk taking
Schneider Electric counts on motivated teams who
know how to make the most of opportunities to
grow and advance the Company.
Our market-oriented organization and operations put
a premium on entrepreneurial spirit, risk taking,
teamwork and empowerment. Employee satisfaction
surveys conducted in all host countries give us a view
of our team members’ expectations. In two years,
99% of the workforce has been surveyed at least once
and 47% has been interviewed twice. The survey
results show that the majority of our employees like
their work and fully embrace our objective
of customer satisfaction.
Share
in the Company’s results
Schneider Electric uses a number of methods
to give employees a personal and fair stake in
the Company’s achievements, including profit-linked
incentive programs, employee share ownership,
stock options, variable compensation and bonuses.
Depending on the country and position, variable
compensation can represent 10% to 25%
of a manager’s fixed salary. The collective portion of
variable compensation is based on operating margin
while the individual portion is based on targets met
by the unit and on personal performance.
Although stock options are granted in fixed
amounts, the number of options that may be
exercised is dependent upon the Company reaching
its financial objectives. For example, the number
of stock options that may be exercised by
the recipients of our most recent grant of stock
options will depend on the achievement of the sales
and operating margin objectives of our NEW2004
program. Nearly 16,000 employees in 48 countries
own shares representing 3% of Schneider Electric’s
issued capital through corporate mutual funds.
A third worldwide Employee Stock Purchase Plan
should be launched in more than 50 countries in 2002.
Develop
skills and mobility
Schneider Electric knows that its success depends
on the personal success and satisfaction of its team
members. With this in mind, the Company
has increased its investment in training, developed
advanced evaluation and human resources
management methods, promoted job and geographic
mobility, encouraged in-house promotion
and quickly empowered employees to take
on greater responsibility.
Training is key because it fosters a sense of initiative,
as well as skills sharing, project-based management
and a shared focus on customer satisfaction
and financial results. In 2001, 234 executives from
37 countries participated in seminars organized
by the Schneider Management Institute. Of these,
140 attended the Passport for Schneider program,
gaining a better view of the Company’s strategy
and organization, and 94 took part in seminars
for more seasoned managers.
As for mobility, 345 employees took on foreign
assignments in 70 countries during the year.
Schneider Electric is also strengthening its teams
in preparation for the future. More than 400 young
graduates were recruited in 2001 and 560 job offers
in the different host countries were posted
on the intranet.
Because our performance
is built on the performance
of our people, we need
to constantly improve our
practices and attitudes
to achieve the targeted
improvements.