We believe in the true essence of luxury, spreading culture and beauty into the world, revealing the exceptional in our people who indulge our clients in unforgettable experiences.
Our people make the difference and this is why as a Group we are engaged to accelerate transformation and a forward-looking mind-set through motivating, developing and stimulating our people, while delivering a thoughtful, trustful and caring work environment.
Every day, we are building on the diversity of our Maisons and their distinctive DNA. Our people bring great expertise and share the passion for these unique cultures, craftsmanship and story-telling. At the same time, they are curious and innovative, wanting to deliver outstanding products and moments to our clients. This is why we do not compromise on talent and look for people who can imagine the future of our industry while staying true to our heritage.
We place a special emphasis on a seamless and value-adding employee experience, delivering easy to use, fast and efficient processes to our people inside the organisation: well-being and engagement being the main drivers. The entire employee life cycle should deliver on our engagement. This is why, even beyond our organisation, we try to deliver a smooth and attractive candidate journey for potential employees.
Based on the Corporate Social Responsibility Plan 2020, we are translating our engagements into tangible initiatives as illustrated in the following key areas of focus:
Work environment: an inclusive, secure and attractive workplace for all our people
One of our biggest responsibilities is to make sure that we protect all our employees and keep our business safe, ensuring it is done in an intelligent way. This is why an important effort has been made in the past year in terms of employee awareness around health and safety (“Be Aware, Be Secure”). That effort will continue in the year ahead.
We now provide all our people with a way to digitally connect with our corporate network. This ensures that they can access, maintain, share and consume information and knowledge within the Group. This is especially important when it comes to people that are not necessarily connected through an individual corporate device. Spaces with shared company devices are being put in place to allow our people to stay connected to what matters. State-of-the art tools are deployed globally to facilitate employee access to people-relevant information. Those collaborative, self-service tools include easy-to-use, cloud-based suites as well as intranets.
With regards to physical workspace, an important initiative is refurbishing office spaces in a more contemporary fashion to increase productivity of our employees, make more efficient use of square meters, and provide ergonomic and modern furniture to foster well-being and social exchange within an among teams.
Contemporary workplaces and connectivity are the premise to deliver more flexible working styles for all our people. Home office pilots are being rolled out across all relevant functions and entities.
Diversity & inclusion: align initiatives in this area beyond gender and nationalities
Richemont employed some 29 000 people around the world at 31 March 2018. Over the five-year period, our average number of Full Time Equivalents (FTE) increased by 3.3%.
Through our suppliers and business partners, we provide employment opportunities for many more people.
Our people work mainly in three distinct areas, as shown in the chart. Our Manufacturing operations, employing 26% of the workforce, are concentrated in Switzerland, France, Germany and Italy. Similarly, our Maison and Group headquarters are concentrated in those countries. Those concentrations explain why 61% of our workforce is employed in Europe. This evidences our commitment to delivering high quality products and services and our investment in developing the local know-how and expertise of our people.
The average seniority in the Group is 7.6 years and within a position is 4.7 years. With the wealth of opportunities that are offered to our employees during their time with us, we manage to fill over 48% of open positions through internal moves.
Encouraging diversity in all respects, the organisation counts over 130 nationalities. At 12%, Chinese nationals are the second largest representative group within our workforce, with French nationals being the largest at 26%.
Overall, women represent 57% of our total workforce, a number that is in line with last year’s data.
Of some 5’175 people management roles*, 50% are occupied by female colleagues. Moreover, we have increased the number of female top executives by 16% during the year under review. More than ever, we focus on building female talent by recruiting professionals early in their career, with women representing 61% of the millennial generation within Richemont. (* Richemont defines ‘People Management’ roles as those positions who manage at least 1 direct report).
Our Maisons frequently take the lead in driving the increase in women occupying management roles. Initiatives to foster in-house gender diversity include the Cartier Women Leadership Program “Make your Mark @ Cartier”, in collaboration with INSEAD, France. Women occupying strategic position within the Maison are supported in two key areas - leadership development and personal branding - to help them towards their full potential. In parallel, IWC Schaffhausen recently launched “Very Important Women”, a programme to create more professional exchange among female leaders. IWC aims to double the share of women in management roles by 2020 compared to 2017.
In order to better prepare our organisation, we continue to monitor our management population overall in terms of age, gender and length of service with the aim to anticipate skill gaps and better manage our succession planning for key positions.
Engagement & recognition: ensure that our people have a strong sense of belonging to the Group, beyond the Maisons
Sharing a sense of belonging and a common vision allows every single employee in our organisation to thrive individually, while contributing to the overall success of our Group.
In order to better understand and align our people with our global vision, we periodically run Engagement barometers throughout the Group and, to better engage and motivate the teams, encourage our managers to use more frequent pulse surveys. Such barometers and pulse surveys offer our people the opportunity to provide timely feedback and share their ideas. By addressing potential issues and setting priorities for global and local action plans, these initiatives seek to improve retention.
Fostering engagement through co-creation became a priority for the Group during the year under review. In our transformation to become ever more client-centric, we are convinced that enabling our people is a critical success factor. This is why more and more employee-centric initiatives are being implemented within the Group. One example is the launch of an internal Innovation Challenge that encourages our people to share their insights and ideas about how to improve our services, products and internal processes. The challenge will be piloted in three markets, then extended in the medium term across the Group.
We believe that recognizing our people through fair and equitable reward is key to engaging them with our overall strategy. This is why our reward strategy is based on the Management By Objectives (‘MBO’) concept, which allows us to align employees’ performance with our strategic goals, to attract and retain the right talent and ensure that our people have a stake in the Group’s success.
Our compensation packages not only reward individuals’ contribution and their team`s success, but also provide the opportunity to participate in the Group’s performance. A base salary is the foundation of all compensation packages. It reflects the scope of responsibilities, is benchmarked with external market data, and seeks to ensure team equity beyond specific departments. The base salary is complemented with different incentive schemes. The Group long-term incentive programmes (‘LTIPs’) are designed to retain our key people. We strongly believe that allowing our people to participate in share ownership is key for engagement, recognition and a sense of belonging.
Disclosures concerning senior executives’ compensation may be found in the Compensation Report within the 2018 Annual Report.
Furthermore, we continue to improve our overall benefits packages, which include competitive coverage in terms of maternity and paternity leave, life and long-term disability coverage, and medical coverage.
For our Maisons and the Group, building strong relationships with local communities is integral to the way in which we operate. Those relationships generate many local fundraising activities. A multitude of local employee initiatives take place each year, for example in sports events and education. Employees are also supported in fundraising and volunteering for charitable causes. For example, Cartier Philanthropy has continued its employee engagement programme “Everyone Matters” in collaboration with Kiva, an international non-profit organization that connects people through micro-lending to alleviate poverty in developing countries.
Another example, at Richemont Japan, is a new Volunteer Leave Policy: the organisation encourages employees to take volunteer leave at least once a year, i.e. employees are now allowed to take volunteer leave on weekends and take a holiday in exchange.
Employability: provide lifelong employability to our people and ensure successful upskilling
We believe it is our responsibility to offer our people continuous learning opportunities based on the 70/20/10 principle: 70% on-the-job learning, 20% self-learning and 10% classroom learning.
During the year under review, over 36’500 training units were completed, covering some 16’800 employees, or 58% of the workforce. The Group’s Learning Management System (‘LMS’) offer comprises over 2’250 trainings including events, online courses, videos and different curricula coming from all of our Maisons, the Regional Platforms and the Group.
Given the diversity of our workforce and the rapid evolution of marketable skills linked to new technologies, we are constantly developing our LMS offer. We provide a special focus on digital upskilling of all employees, ensuring that they all have access to our LMS and can follow learning modules on mobile and at their own pace.
Supporting the digital transformation of our business, we are also providing specific upskilling for three different target populations:
- IMD Digital Leadership Program: An executive leadership course specifically created by Richemont and IMD, Switzerland to prepare our senior management to address the strategic challenges of a fast-changing world. This programme is being cascaded to the next level of management in the organisation;
- Digital Marketing Program for our Marketing and Communication teams: A robust online learning tool that hosts everything marketing professionals need to acquire new skills, such as benchmark testing, Advanced Skills Academies and progress tracking;
- Digital Culture Course for all our people, enabling the whole workforce to become familiar with the basics of digital culture through online courses.
As a Group, we acknowledge the importance of safeguarding unique expertise and passing it on to the next generation, thus preparing the future for our internal talents. This is why we are investing in different schools and academies. Some examples are:
- Richemont Creative Academy, Italy (Product designers)
- Last year, 19 students from 12 different nationalities graduated with the Master degree in Arts of Design. All 19 took up positions within our Maisons, signalling the importance for the Group to invest in young, creative talent.
- Richemont Retail Academy, China and Macau (Retail staff & Boutique Managers)
- Since its opening, 1’657 people have been trained in the Retail Academy in China and Macau. Programmes include Sales Associate courses as well as a Boutique Manager Master, a blended programme for our Boutique managers.
- Institute of Swiss Watchmaking (IOSW), USA, Hong Kong, China
- Ecole des Métiers et Artisans de Haute Horlogerie, Switzerland
- Ecole des Arts Joailliers (with the support of Van Cleef & Arpels), France & Hong Kong
- L’Institut de Joaillerie (with the support of Cartier), France
Moreover, our different Maisons recruit and train close to 600 trainees and apprentices each year, ensuring that unique know-how in many areas is being passed on to younger generations.
Conscious of the importance of technical innovation, the Group is also establishing a partnership with Ecole Polytechnique Fédérale de Lausanne (Switzerland) in the form of an Academic Chair in Microtechnology.
Furthermore, we have recently joined our Agile Academy with the Haute Ecole d’Ingénierie Arc in Neuchâtel, Switzerland. This new training centre is inspired by the principles of Lean Manufacturing and will offer training modules aiming at making processes more efficient, while reducing waste and optimising resources.
We are convinced that maintaining a continuous learning culture will help increase the employability of all our employees, even beyond their time with us.
Overall well-being: ensuring good practice in terms of health, safety and overall well-being for all our people
Our employees’ well-being is a priority across the Group. Different stakeholders work together to ensure that all aspects of well-being are being considered (financial, emotional, social, physical and professional well-being).
Many local initiatives encourage a healthy way of life including:
- regular exercise (access to gym facilities, subsidies to sport clubs, gym and yoga classes, and sports communities among colleagues)
- promoting healthy eating habits within the Group’s restaurants and during working hours (fruit baskets, delivery of vegetable baskets)
- smoking cessation programmes
- introducing different working styles such as working remotely whenever the job function allows it and in line with local regulations
- car-sharing opportunities and subsidies for public transport
Employee Assistance Programme (WeCare)
Although many countries already have employee assistance programs in place, we have decided to ensure that all our people will be able to benefit from such a benefit. This is why we have launched a global programme under the name of WeCare (Well-being & Care for Richemont Employees). Employees have the possibility of confidentially contacting an external provider that offers the support of professionals who are completely independent from the Group.
Health & Safety
In the past year, we have continued to conduct regular audits of our manufacturing sites, distribution centres, offices, key boutiques and customer service centres. 26 independent audits were conducted during the year to assess compliance with health and safety regulations together with the effectiveness of translating our Group policies into operating procedures and practices. The results of audits and employee suggestions are used to drive continuous improvement plans at each location.
We use systems to comprehensively measure, monitor and report accident data across the entire organisation. Our Maisons are required to record any accidents via global systems and provide an action plan for improvement.