APC 2013 Annual Report Download - page 93

SUSTAINABLE DEVELOPMENT
COMMITTED TO AND ON BEHALF OF EMPLOYEES
To reach these objectives, Schneider Electric commits to four anticipating and addressing workforce needs: Develop skills and
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major pillars: flexibility for internal mobility with the aim of helping employees to
take on a new job/role while driving the necessary transformation;
integration of new employees: At least 50% of recruitment is filled
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employees receive guidance for preparing their 2ndplan career by
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by young people coming from apprenticeship or are less than 30 helping them to build a new career either internally or externally;
years of age. Young people with little or no qualifications are Professional counselors advise employees on planning their
recruited with the aim to bring them into employment by way of professional paths forward;
providing them with a job, a sponsor and training leading to a
qualification; progressive preparation for retirement means managing the end
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of a career properly to ensure the transfer of key skills or the
sharing of experiences before the retiree leaves the company.
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Compensation and Benefits 4.7
Approach Employee Health and Welfare policy principles
Schneider Electric is committed to providing a comprehensive 2013 has been an important year for Schneider Electric to review
compensation and benefits offering that is competitive and cost and update its employee health and welfare guiding principles. As
effective in each market and country in which the Group operates an outcome of this review the Group has agreed to reaffirm and
in order to attract, motivate and retain talent. upgrade its policy commitment. Schneider Electric’s underlying
objective is to protect the basic health and welfare of all of its
Schneider Electric ensures that all compensation and benefits employees and to provide adequate security to their dependents in
decisions and policies are based on the principles of fairness, the event of their death. In practice, this means that Schneider
equity and non-discrimination. Electric will offer a global security standard to ensure that at least a
Compensation
multiple equivalent to one year’s salary is paid to an employee’s
dependents in the event of their death by any cause.
Human Resources have defined its roadmap to meet this objective
Schneider Electric rewards employees’ contributions based on a and it plans to be fully compliant by 2015. In addition, immediate
pay-for-performance principle, competitive market positioning and action has been taken to establish cover for employees in all
scarcity of skills. Industry market data is gathered on a country countries with no cover or which are classified as high risk by
basis via third-party surveys to support compensation decisions. Schneider Electric Global Security.
Schneider Electric has built and implemented a global job
Sustainable development criteria in
architecture to support and align Rewards and Human Resources
performance incentives
programs so that Schneider Electric can develop and move talent
across different businesses and geographies.
Since 2011, sustainable development components have been
In line with our pay-for-performance philosophy, our compensation
added to the personal performance incentives of all members of
structure can include fixed and variable elements. The short-term
the Executive Committee. These components are directly linked to
variable element is made up of individual and collective performance
the Planet&Society Barometer targets. They are personalized
criteria and is designed to foster a sense of belonging and
according to the areas of involvement for each (e.g., Green
collaboration. The long-term variable component is discretionary and
Premium targets for the members of the Executive Committee in
is designed to motivate and retain specific groups of targeted
charge of the activities).
employees who demonstrate potential and possess critical skills.
In 2012, the criteria for sustainable development in the personal
Benefits
performance incentives were extended to the Country Presidents
of the five principal countries of Schneider Electric and in 2013 also
applied to the Heads of central functions (Finance, HR and
Business Development) in the Global Operations. For all the other
Benefits are an essential component of our reward offering and
Country Presidents, it is not a personal objective in their bonus, but
reflect the diverse needs of our employees.
it is part of their key objectives for their 2013 annual performance.
Since employee benefit plans can vary significantly between
Since2010, the CO2 reduction target has been taken into account
countries due to different levels of social benefits provisions and
for the performance incentives of all Global Supply Chain
diverse tax and legal regulations, Schneider Electric’s benefits
Management personnel who receive a bonus.
approach is primarily country-driven.
The reduction in the occupational accidents Severity Rate and in
Schneider Electric has a Benefits and Pension Funds Corporate
the Medical Incident Rate is taken into account for the
Committee whose responsibilities are to review Benefits Policy
performance incentives of all managers at industrial sites and
Principles compliance and evolution and to monitor asset return
logistics centers who receive a bonus.
and validate investments long term strategy both at a corporate and
country level. This Committee meets twice a year.
Since December2011, a portion of the award under the annual
long term incentive plan that will be definitely granted at time of
All compensation and benefits policies follow local statutory and
vesting is subject to the achievement of a sustainable development
collective agreements.
target. This target is defined as the Planet & Society Barometer
score at the end of the year following the annual grant (i.e. score at
the end of 2014 for 2013 annual grant). As a reminder, the
Barometer is published externally and its components are audited.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC