LEGRAND_REGISTRATION_DOCUMENT_2017

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CORPORATE SOCIAL RESPONSIBILITY (CSR)

Commitment to our employees

Cross-functional management is steered either by the Group or locally within the subsidiaries, and allows training needs to be more clearly identified and customized approaches developed. In 2017, more than 492,000 hours of training were provided at Group level. Training is provided every year to managers, who play a vital role in identifying priority needs, recommending the development of core competencies, and maintaining and developing the commitment of their employees. In addition, coaching programs help employees settle into their new role and contribute to their personal development. Management and leadership Based on the annual appraisal, behavioral competency matrix and talent review, targeted training for different categories is put in place at Group level and in some entities. The training is sometimes combined with external potential assessment tools, as in North America for example. For the experts identified in organizational reviews, other types of training are arranged, such as 2DI (innovation development). Corporate training At the end of 2016, the company decided to reinstate a Group Talent training program with the aim of developing and retaining key employees at all the subsidiaries. This concerns employees in key operational areas who need to play a role as intermediary for the Group in their respective geographic regions. In 2017, a pilot program called Inspiring Leadership was rolled out for some 40 or so talents identified during the OSR process (review of high-potential employees and specialists). The aims of this program, designed in partnership with the Lusanne IMD, are to develop leadership skills and improve ownership of the Group’s strategy, as well as create an international talent pool. The program includes modules on self-knowledge, teamwork from a leadership perspective (with plenary sessions and practical workshops), and an introduction to new collaborative working methods. Trainees also have an opportunity to meet the Group leadership. The Group-level program cascades down into local programs, such as the Effective Leadership program in Mexico and Emerging Leaders program in the United States, illustrating the complementarity of the different systems. Induction process To help new hires reach the required competency level as quickly as possible, some countries (Mexico, USA) have reviewed their induction program. In some cases, Early-in-Career development programs are in place. These consist of assigning a young talent to different functions in turn, or to major projects within the same business line.

and specialist employees are covered by a talent-management process; to complete CAPP interviews for 90% of managers; keep the manager retention rate at 95%. 2017 achievement: W 90% of employees attended one or more training courses during the year; W 95% of staff were covered by a review of high potential and specialist employees through the Organization and Staffing Review (OSR) process; W 92% of managers’ CAPP interviews were completed; W the manager retention rate was 96% for the year. In 2017, the redesign of the OSR process, which resulted in underperformance in 2014 and 2015, was implemented, which explains achievement of the objective for this indicator and, more generally, for the priority as a whole.

2014 2015 2016

2017

2018

Target achievement rate 71% 90% 104% 107%

Calculated in relation to the average achievement rate for the above four indicators, determined in relation to the annual targets. For both the CAPP achievement rate and the training rate, the actions taken with the persons who left the company during the year are taken into account. The rates are calculated for the workforce registered at the end of the period.

Roll-out of training programs The Group’s training commitments and policies are as follows: W to pursue and maintain training programs that guarantee health, safety and well-being in the workplace and are proven to raise performance levels; W to continue with and maintain training/awareness programs for managers and employees to foster diversity and combat all forms of discrimination; W to introduce formal individual training courses for talented Group employees to support them in new roles, increase their responsibilities or manage change; W to continue the orientation programs for key personnel at various Group entities in order to help them succeed and acclimatize swiftly to the Group; W to continue management training to equip new managers with core management skills and strengthen the leadership skills of more experienced managers; W to train sales teams on new solutions, products and systems to increase sales and boost Group market share.

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REGISTRATION DOCUMENT 2017 - LEGRAND