HERMÈS - 2018 Registration document

Corporate social responsibility

People: teams

Incentive schemes

Profit-sharing

Total

In millions of euros

2016 2017 2018

26.9 26.1  33.4 1

41.9 44.6  55.4

68.8 70.7 88.8

(1) Including the signing of new agreements.

2

2.3.1.3 Results The workforce within the Hermès Group includes active permanent staff members and people on fixed-term contracts of more than nine months, including apprenticeship contracts. The permanent active staff repre- sents 95% of the total workforce. Increasing by roughly 81% over the last 10 years, the Group workforce (page 278) totalled 14,284 people as at 31 December 2018.

Free share plan Faithful to its family tradition and wanting to involve all employees world- wide in theGroup’s growth, Hermès has historically implemented several employee shareholding plans, notably free share plans in 2007, 2010, 2012 and 2016. All of these plans send a singlemessage to eligible employees worldwide and their objective is three-fold: s s to show the confidence of the House in the long-term commitment of its employees and unite them around the Group strategy; s s to acknowledge the contribution made by employees at all levels to the development of the House, by providing a single compensation component to share the benefits of our growth, enabling employees to identify more closely with the long-term Hermès growth decisions; s s to consolidate the strong links between the employees and theHouse at every opportunity. The total rights granted under these free share plans represented 2.1% of the share capital of Hermès International. Consequently, the last free share allocation plans (introduced in 2016) were allocated to over 11,300 Group employees worldwide and involved a total of 806,060 shares. To promote employee loyalty over themedium and long term, and to boost collective performance, these plans are sub- ject to a vesting period of at least four years, presence conditions and, for some shares, performance conditions. The Group’s ambition is to continue to involve its employees worldwide in its corporate project by increasing the level of employee shareholding.

14,284

13,483

12,834

12,244

11,718

11,037

10,118

9,081

7,455 7,894 8,057 8,366

2016 2017

2007

2008

2009

2010

2011

2012

2013

2014

2015

2018

Employment The Group created 801 jobs in 2018. As has been mentioned, the Production sector saw the most growth (with the creation of 323 additio- nal jobs) in order to increase production capacity and to protect savoir- faire and sources of supply, closely followed by theSales sector (with310 additional jobs created). Employment creation was significant in existing production units, par- ticularly in the South-West, Savoie Dauphiné and Franche-Comté divi- sions, where two new leather goods facilities were opened. The last 10 years have not required the Group to undertake any restruc- turing efforts for economic reasons that had any consequences with regard to jobs. During development operations (site construction), any transfers were on a voluntary basis. In France, individual redundancies involved 91 people in 2018 (72 in 2017). The new stores of Palo Alto (USA), Cancun (Mexico), Chadstone (Australia), Bangkok IconSiam(Thailand), Changha, Xian (China), Emaar Square Mall (Turkey) and Incheon Shinsegae Airport (Korea) contributed to the growth of the workforce. Hermès ambition is to ensure jobs security recruiting as much as pos- sible permanent contracts. Concerning employee turnover, the total number of dismissals repre- sented 1.7% of the Group’s average global headcount.

2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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