Commitments to employees
2.3.6. COMPENSATION AND BENEFITS
Accor has defined a global compensation strategy that can be adapted
to local practices in each country. It is based on four principles:
offer compensation that is competitive in each market and country;
ensure that employee compensation is determined fairly;
encourage employee savings and stock ownership;
strengthen employee healthcare coverage and other benefits.
Accor ensures that compensation policies do not discriminate
in any way 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, based on global and
local job maps prepared for each job track.
Managers receive a base salary and variable incentive pay that includes
an annual bonus and, in certain cases, deferred compensation in
the form of performance shares. The annual bonus reflects their
performance in meeting personal and team objectives.
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. Each local unit is tasked with properly
managing its own payroll and with collecting the related data and
analyses. These data are not yet consolidated at Group level, so
the average salary raise cannot be reported.
Payroll costs for the head offices and owned and leased hotels are
presented in note 5 on page 198.
Information available to employees
Every year, 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 base salary and any other benefits that make up the final
compensation package are set out in the employment contract when
the employee is hired or transferred. In addition, the individual and
team performance objectives for 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 performance shares,
supplementary pension plans and healthcare and insurance coverage.
In recent years, human resources managers have been able to
attend in-house training courses in such issues as compensation
policies, the job classification and evaluation method, deferred
compensation systems (performance shares) and employee benefits.
In 2014, fifteen people were trained in this way and are now able
to support the application of compensation policies to the teams
in their scope of responsibility. A simplified version of the same
module has also been designed to enable trained individuals to
regularly update their knowledge and skills.
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 2014, nearly €11.7 million in discretionary profit-shares earned in
2013 was paid to 15,347 employees, representing an average net
amount of €762 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, 8,249 employees owned shares in the Company
at December 31, 2014, representing 0.552% of total capital (see
page 145 for details).
In 2014, non-discretionary profit-sharing agreements were signed
in Argentina, Brazil, Ivory Coast, Egypt, the United Arab Emirates,
France, Ghana, Mexico, Nigeria, Russia and Turkey.
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 them
to invest in various mutual funds with matching funds provided by
Accor. In addition, in 2014, 7,001 employees invested in the PERCO
group Retirement Savings Plan, which was set up to provide
employees with additional income during retirement. Employees
in France also receive non-discretionary profit-shares under a
corporate agreement covering 75 companies in respect to 2013.
Non-discretionary profit-shares earned in 2013 and paid in 2014
amounted to an aggregate net €6.1 million for 19,914 employees,
or an average net amount of €306 per person.
A project is underway to enhance the French employee savings
benefits with a new plan, scheduled for introduction in 2015. It will
offer employees a more advantageous matching funds system in
a commitment to raising their stake in their company’s growth.
International insurance and healthcare
Offering international insurance and healthcare coverage enables
Accor to 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.
Registration Document 2014