2013 Registration document and annual financial report - page 54

Registration Document 2013
52
Corporate responsibility
2
Commitments to employees
Compensation and benefits
Accor has defined a global compensation strategy that can be
adapted to local practices in each country.
The strategy is based on four principles:
ƒƒ
offer compensation that is competitive in each market and country;
ƒƒ
ensure that employee compensation is determined fairly;
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encourage employee savings and stock ownership;
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strengthen employee healthcare coverage and other benefits.
Accor ensures that all decisions concerning compensation are made
without any discrimination with regard to age, gender, nationality
or any other personal criteria. The Group is also committed to
compensating every employee in line with
market practices
,
which are identified, tracked and analyzed.To achieve this, jobs have
been mapped worldwide by job track, using the Hay method. Job
mapping by position is also carried out locally.
Managers receive a base salary and an incentive bonus reflecting
their performance in meeting personal and team objectives and their
contribution to the Group’s success. All base
salaries are reviewed
each year, on an individual basis for managers and collectively
for non-managers. Across-the-board raises are defined locally, in
accordance with inflation, market practices and annual results.The
average salary raise could not be calculated with the reporting and
analysis tools available to the Group in 2013.
Payroll costs for the head offices and owned and leased hotels are
presented in note 4 page 212.
Insurance coverage
Insurance and healthcare coverage helps Accor meet two key
challenges: (i) provide
a higher level of protection
for employees
in countries where public authorities cover little or none of the
expense associated with healthcare and (ii) create an
element of
differentiation
to attract and retain talent.
Plans have therefore been set up in certain host countries for
employees in owned and leased hotels, providing insurance and/or
health coverage for routine care, hospitalization, maternity benefits,
eye care and other expenses.
In France,
a new agreement on
insurance and health coverage came into effect on January 1, 2013.
An initial review is scheduled for early 2014.
In some countries, Accor has been able to extend healthcare
benefits to employees in its managed hotels, with the investor
owner’s agreement.
This is the case, for example, in
Sub-Saharan Africa
, where a
healthcare plan has been set up at 19 hotels, including 10 under
management contracts.
Where healthcare is not provided under local legislation, the
employees at these hotels and their families benefit from private
health insurance, which covers 80% of the expenses associated
with medication, health care and hospitalization. In addition, almost
all of the 19 hotels have an occupational physician and a nurse,
either full-time or part-time, to raise awareness of medical issues,
diagnose illnesses and provide nursing assistance to employees
and their families.
Retirement benefits
Set up in 2007, the Group Retirement Benefits Committee continued
its activities in 2013. Designed to encourage dialogue and consensual
management, the Committee is comprised of representatives
from the corporate Human Resources, Consolidation, Treasury
and Financing, and Administrative Services Departments, as well
as the Group’s consulting actuary.
Discretionary profit-sharing
In order to better reflect each unit’s actual business performance,
discretionary profit-sharing agreements based on overall performance
and financial results are generally signed in each subsidiary or hotel.
In 2013, nearly €10.2 million in discretionary profit-shares earned in
2012 was paid to 13,865 employees, representing an average net
amount of €740 per person.
On several occasions since 1999, employees around the world
have been offered the opportunity to purchase new Accor shares
on preferential terms and conditions, as part of employee share
issues. As a result, 10,122 employees owned shares in the company
at December 31, 2013, representing 0.62% of total capital (see
page 323 for details).
Employee savings in France
Every year since 1985, Accor employees in France have been able
to participate in a
Corporate Savings Plan
(PEEG) that allows
employees to invest in various mutual funds with matching funds
provided by Accor. In addition, a PERCO group
Retirement Savings
Plan
has been set up to provide employees with additional income
during retirement. A total of 7,229 employees invested in the plan
in 2013. Employees in France also receive
profit-shares
under a
corporate agreement covering 84 companies in respect to 2012.
Non-discretionary profit-shares earned in 2012 and paid in 2013
amounted to an aggregate net €7.8 million for 21,147 employees,
or an average net amount of €369 per person.
Information available to employees
Human Resources Managers and Directors are informed about the
bonus policy and the principles for reviewing compensation, in line
with the each country’s economic environment.
The various components that make up the final compensation
package – including the base salary and any other benefits
associated with the position, such as a company car – are set
out in the employment contract when the employee is hired or
transferred. In addition, the individual and collective performance
objectives to be applied to the coming year are defined during the
annual performance review and given to the employee in writing.
Specific information is also provided throughout the year to employees
covered by other benefits, such as stock option plans, supplementary
pension plans and healthcare and insurance coverage.
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