Philips 2014 Annual Report Download - page 35

Group performance 5.2.5
Annual Report 2014 35
Philips Group
Employment in FTEs at year-end
2012 - 2014
2012 2013 2014
Balance as of January 1 125,240 118,087 116,082
Consolidation changes:
Acquisitions 909 – 1,506
Divestments (1,024) (705) (247)
Changes in discontinued
operations (3,545) (186) (2,132)
Other changes (3,493) (1,114) (1,531)
Balance as of December 31 118,087 116,082 113,678
In 2015, the number of employees is expected to remain
broadly in line with 2014, with increases from our
acquisition of Volcano Corporation to be oset by
reductions from footprint-related initiatives.
5.2.5 Developing our people
Our drive to build a learning organization which is
leader led has progressed signicantly, and the Philips
University was launched formally in Q4. Philips
University is embracing 70:20:10 as part of the long-
term journey to build a learning culture that allows us
to become a learning organization: 70% of learning is
carried out on the job, 20% through coaching and
mentoring (through others), and the remaining 10%
through formal learning methods (classroom and e-
learning).
Training spend
Our external training spend in 2014 amounted to EUR
44.7 million, a decrease compared to EUR 47.3 million
in 2013, which is the result of the rationalization of
content made in 2013.
For more information on developing our people, please
refer to sub-section 14.2.2, People development, of this
Annual Report.
5.2.6 Health and Safety
Philips strives for an injury-free and illness-free work
environment, with a sharp focus on reducing the
number of injuries and improving processes. The Lost
Workday Injury Cases (LWIC) rate is dened as a KPI, on
which we set yearly targets for the company and our
individual sectors.
We regret to report that one of our Healthcare Field
Service employees passed away after a trac accident
in France whilst traveling home.
In 2014 we recorded 227 LWIC, i.e. occupational injury
cases where the injured person is unable to work one
or more days after the injury. This represents a
signicant decrease compared with 280 in 2013, and
continues the consecutive reduction trend from 2010.
The LWIC rate decreased to 0.23 per 100 FTEs,
compared with 0.27 in 2013. The number of Lost
Workdays caused by injuries increased by 403 days to
9,068 days in 2014.
For more information on Health and Safety, please refer
to sub-section 14.2.4, Health and Safety performance,
of this Annual Report.
5.2.7 Philips’ General Business Principles renewed
Our General Business Principles (GBP) set the standard
for how to conduct business, both for individual
employees and for the company itself. In our drive for
continuous improvement, the GBP were revised in 2014
to help ensure that everyone acts with integrity, and
also to better reect the changing business landscape
in which we operate.
For a description of GBP processes and policies, please
refer to section 7.1, Our approach to risk management
and business control, of this Annual Report.
The General Business Principles have been rewritten,
but without deviating from the fundamental principles
for doing business which are rmly rooted in Philips’
heritage. Without making substantial changes to these
standards, the GBP have been turned into a document
that is easy to read and understand for everyone. They
have been translated into 32 languages, allowing
almost every employee to read them in their native
language. The GBP form an integral part of labor
contracts in virtually every country in which Philips
operates.
Training and awareness
Following the updating of the General Business
Principles, a new e-learning was launched in October.
In this mandatory online training course employees are
informed about the contents of the GBP and the way in
which Philips applies them. This course, in which every
employee with an e-mail account has been invited to
participate, is available in 21 languages and is taken by
every new hire joining the company. During the last
quarter of 2014, out of the 73,000 employees with an
e-mail account, well over 57,000 (77%) took this e-
learning. At the end of the training course employees
are asked to conrm that they will always act with
integrity. In addition, GBP Compliance Ocers around
the world also attended a series of face-to-face training
courses aimed at helping them perform their supporting
role more eectively.
The launch of the e-learning was just one of the events
that formed part of the global communication
campaign on the GBP. These communication eorts
culminated in a ‘GBP dialog week’, for the second year
in a row, in which managers were invited to host dialog
sessions with their teams about the Philips GBP. Tens of
thousands of Philips employees participated in these
sessions and managers reported very high levels of
engagement.
The results of the monitoring measures in place are
given in sub-section 14.2.5, General Business
Principles, of this Annual Report.