LISI GROUP - 2018 Financial report

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6.1.5 IPromoting internal mobility
The Group has made internal mobility, both geographic and functional,
one of the linchpins of its human resource policy. The diversity of the
activitiesandbusinesslines,aswellastheinternationaldimension,allows
employees to follow individual professional careers. All of our employees
can become agents of their own development thanks to the “Job Forum”
which is accessible on the Group Intranet.
Furthermore, during annual reviews, line managers discuss how their
staff would like to develop their careers.
The magazine CAPITAL of February 2019 presented the results of a
survey of companies assessed by their employees and those of the
industry.
LISI AEROSPACE is ranked as the 17th best employer in the Aerospace,
Rail and Shipbuilding sectors.
6.1.6 IAdapting The Organization
To The Needs Of The Group
Working time is adjusted to better meet the needs of our customers in
compliance with legal work periods, which vary by country, from 35 to
50 hours per week.
In the production services, across all the sites, the work is organized in
shifts (2 or 3 shifts). Depending on the site, substitution shifts may be
arranged onweekends. Furthermore, nightshift workingwas carried out
in certain sectors in order to respond to specificworkload requirements.
Overtime represented 4.3%of the number of hours worked in 2018.
Asignificantdegreeofflexibilitywasrequiredbythesites in2018.Indeed,
in the first half of the year there was an increase in activity followed by a
decline in the last quarter of 2018. In order to respond to this increased
activity,severalparallelactionswereconducted:overtimewasincreased,
the use of temporary workers with the implementation of a temporary
implant in Melissey and Marmande allowing for better reactivity and
optimizedmass management, and, of course, recruitment campaigns.
The fourth quarter required a readjustment of resources and actions
particularly within LISI AUTOMOTIVE (decrease of 6.8% in activity at
constant scope) and LISI AEROSPACE Fasteners: termination of
temporary workers on sites with a lighter load, mass holiday leave and
mandatory closures, deferred training to limit costs, and a freeze on new
hires.
6.2 IReward Performance and Retain Talent
At LISI, compensation is initially linked to the company’s performance
and collective and individual achievements.
Ourcompensationsystemincludesallfinancialcomponentsandbenefits
to which each employee is entitled. It is designed to reconcile the
recognitionof individualperformancewiththesearchfor internalequity,
while taking into account the local economic environment.
6.2.1 IEmployee incentive
a) Profit-sharing and incentive plan
Profit-sharing
Thefundspaidoutintheformofspecialreservesforprofit-sharingduring
the past three years are as follows (inmillion euros):
2018 2017 2016
2.0 3.8 5.2
Incentive plan
MostofthecompanieswithintheGrouphaveanincentivesystemallowing
employees to participate actively in the Group’s performance. The
methods for calculating the sums involved depend on the criteria of each
company.
b) Group Savings Plan (PEG)
French employees have the right to invest in the company through an
employee savings plan and, in this way, become a LISI shareholder . An
attractive matching contribution from the employer goes together with
thisGroupSavingsPlan.36%ofFrenchemployeeswereLISIshareholders
in 2018.
In 2001, the LISI Group created a Group Savings Plan dubbed “LISI en
actions” for its French companies. This plan facilitated participation in
2001, 2004, 2006, 2010 and 2018 in capital increases reserved for
employees in the sums of €1.47 million, €0.8 million, €1.18 million,
€0.9 million and €2.8 million, respectively.
For other years, the PEG was renewed in the form of a repurchase of
shares.
Thelevelsofvoluntarycontributionsbyemployees,theprofit-sharingand
the extent of profit-sharing plans are set by the Company in accordance
with a schedule.
BenefitsgrantedtoemployeesundertheGroupSavingsPlanarerecorded
to the income statement and assessed in accordance with IFRS 2.
As at December 31, 2018, the “LISI en actions” plan consisted entirely of
LISI shares, for a total of 758,000 shares, and had 2,545 members.
c) Employee shareholding
The percentage of share capital held by the Group’s employees stood at
1.4% as at December 31, 2018.