The Group’s human capital is crucial to its ability to compete as a leader in the global auto sector, as well as creating value that is sustainable over the long term.
At 31 December 2013, the Group had a total of 225,587 employees, a 5% increase over year-end 2012 that also reflects changes in the scope of operations.
|Employees by region|
Fiat Group worldwide
|Rest of World||0.1%|
|Employees by category (1)|
Fiat Group worldwide
(1) There are four main categories of employees: hourly, salaried, professional and manager. Professional encompasses all individuals who perform specialized and managerial roles (including “professional” and “professional expert” under the Fiat S.p.A. classification system and “mid-level professional” and “senior professional” under the Chrysler Group classification). Manager refers to individuals in senior management roles (including those identified as “professional masters,” “professional seniors” and “executives” under the Fiat S.p.A. classification system, and “senior managers” and above under the Chrysler Group classification).
There were a total of 34,245 new hires during the year, of which 47.4% were in North America, where there was a particularly significant increase in production levels. Approximately 6,900 fixed-term contracts were converted to permanent, demonstrating the Group’s continued commitment to the long-term stability of the workforce.
Fiat Group worldwide
|Employees at 31/12/2012||214,836|
|Change in scope of operations||2,048|
|Employees at 31/12/2013||225,587|
Management and Development
Stakeholder engagement initiatives launched in 2012, and expanded in 2013, revealed that the Group’s commitment to the professional development of its employees is an issue of major importance to stakeholders.
Recognizing performance, facilitating professional development and ensuring equal opportunity to compete for key positions within the organization have always been an essential part of the Group’s commitment toward its employees.
The Group uses a structured global leadership and performance management process to identify and develop talent and maintain the motivation of employees.
The Performance and Leadership Management process implemented worldwide (PLM, or Performance and Leadership Management, for managers and professionals. PBF, or Performance and Behavior Feedback, for salaried employees) is used to evaluate employee performance and set specific objectives for individual results and professional development.
The performance and leadership mapping process involves around 54,500 Group employees worldwide, including all managers and professionals, and a sub-set of salaried personnel. The Group also uses other performance evaluation processes to determine individual variable compensation.
Talent management and succession planning also form part of the HR management model and are designed to ensure the alignment of objectives and processes across the four operating regions. In 2013, Talent Reviews were conducted for 20 different professional families, companies and functions to identify talented individuals with leadership potential who merit additional investment in their professional development.
During the year, the Group also invested around €76 million in training and skill-building initiatives, which represent another important management tool.
The Group’s extensive training offer was expanded to include new initiatives aimed at strengthening individual skills and performance by leveraging on the Group’s diversity of talent, experience and cultures. The new initiatives included training and seminars designed to equip employees to operate with the same degree of effectiveness in different cultural settings.
More than 4.2 million hours of training were provided during the year (+1.1% over 2012) to around 186,000 employees.
The Group also continued a pilot project based on the World Class Manufacturing Cost Deployment methodology to evaluate the benefits of training initiatives. In 2013, the total cost of training activities evaluated using this methodology was approximately €1.3 million. The initiatives provided workers additional technical skills, resulting in an overall improvement in processes and working practices and estimated potential cost savings of around €2.5 million.
Diversity: Equal Opportunity and Innovation
Diversity is fundamental to the overall success of an organization and the Group is committed to ensuring a work environment where employees feel respected, valued and included. In the hiring process, it seeks to attract personnel that are highly motivated and can contribute to the organization’s innovative spirit and diversity.
Diversity, including gender diversity, brings a wealth of perspectives and experience to the Group and significantly enhances its ability to compete and to understand customers, cultures and local communities.
During the year, the Group hired people of 63 different nationalities18 around the world, further enhancing the multicultural makeup of the organization and the diversity of experience and perspectives.
The percentage of female employees continued to grow, reaching 19.6% of the total workforce at year-end 2013. Women now also account for approximately 13.1% of management personnel.
The Group also continued to ensure equal opportunities for minority groups, including specific opportunities for disabled workers.
Fiat S.p.A.’s Code of Conduct, Human Capital Management Guidelines and Human Rights Guidelines formally set out the Group’s commitment to ensuring all employees equal opportunities in every area, creating career and advancement opportunities in a culture that is free from discrimination and values diversity.
Through its Discrimination and Harassment Prevention Policy, Chrysler Group ensures application of those same standards in compliance with federal, state and local law. Together, the Code of Conduct and guidelines ensure uniform application of the Group’s standards worldwide. As stated in the Code of Conduct, in jurisdictions where legislation is less stringent, company standards take precedence.
Diversity within an organization is closely correlated to the ability to innovate. The Group encourages creativity at all levels within the organization. As part of the World Class Manufacturing (WCM) program, for example, employees worldwide are encouraged to submit suggestions to improve production processes. Specific initiatives in each region are also designed to increase employee involvement and encourage innovative ideas through the use of non-traditional channels and forums.
For example, in 2012, the EMEA region launched the iPropose initiative, which is designed to encourage employees to propose ideas on ways to reduce costs and increase competitiveness. In 2013, the initiative involved some 8,400 employees who submitted a total of 8,300 proposals. Adoption of the best suggestions led to approximately €17.3 million in cost savings.
(1) Based on a sample of 38 countries where the Group operates.
Health and Safety in the Workplace
Fiat Group is committed to ensuring a safe and healthy working environment for all employees, at all sites and in every area of activity. That commitment also extends to suppliers, service providers and customers.
The Group’s strategy for safeguarding and promoting health and safety in the workplace addresses several areas:
- application of uniform procedures for identification and evaluation of risks
- adherence to the highest safety and ergonomics standards for plant and machinery design
- promotion of safe behavior through training initiatives and awareness campaigns
- assurance of a healthy work environment and promotion of a healthy lifestyle
For several years, the Group has been tracking and analyzing monthly performance data in each of these areas to ensure that objectives are being met. Health and safety performance indicators are, in fact, an integral component of the Group’s industrial performance measures.
The commitment to achieving ‘zero accidents’ is formalized in the Group’s Health and Safety Guidelines – which form the basis for policies in each area of activity – and through global adoption of an Occupational Health and Safety Management System (OHSMS) certified to the OHSAS 18001 standard.
At year-end 2013, a total of 110 plants (including two operated through JVs), accounting for 147,000 employees, had an OHSMS in place that was OHSAS 18001 certified.
Measures implemented by the Group over the years have resulted in a significant improvement in all accident indicators. For 2013, the Frequency Rate was down 13.6% over the prior year (with 0.19 accidents per 100,000 hours worked) and the Severity Rate was down 14.3% (with 0.06 days of absence due to accidents per 1,000 hours worked).
Effective safety management is also provided through the application of World Class Manufacturing tools and methodologies, active involvement of employees, development of specific know-how and targeted investment (+15.5% over 2012 to €194 million).
In Italy, investment in health and safety, together with other measures implemented during the year, resulted in a progressive reduction in the level of risk attributed to Group plants by INAIL (the national accident and disability agency). This enabled the Group to take advantage of premium discounts for good performers, resulting in total savings of more than €17.5 million in 2011, approximately €16 million in 2012 and €14.6 million in 2013.
In addition to safety in the workplace, the Group also has numerous initiatives to promote the health and well-being of employees and their families.
At Group level, for example, the “WELL” initiative focuses on the promotion of a healthy lifestyle and prevention of cardiovascular disease. In 2013, new fact sheets containing simple and easy-to-apply suggestions were made available via a dedicated portal. Areas covered included advice on healthy eating, smoking cessation, cardiovascular disease and correct use of medicine. These issues are not only important to the health of Group employees, but they are also relevant to the theme of “access to food that is healthy, safe and sufficient for everyone on the planet” for Expo 2015, of which the Group is an official sponsor.