The cornerstones of Luxottica's success and employee management strategy are its focus on people, the development of skills and expertise, the attainment of personal potential and an employment environment that gives everyone the same opportunities, according to shared principles of merit and without discrimination.
Highly skilled and motivated personnel who feel part of the Company are crucial for its long term success. The Group dedicates great attention to the recruitment processes and training in order to employ and develop the most skilled professional talent. Careful global succession planning guarantees more efficient development of expertise and continuity over time.
Over the last decade, Luxottica has developed an innovative welfare system based on the Group's history and culture of responsibility towards the people it employees. This is why investing in the future also means ensuring the well-being and satisfaction of its employees, who are motivated to give the best in terms of creativity, passion and team spirit.
Luxottica was the first Group to introduce the “generational pact or handover” in Italy, which facilitates the recruitment of young workers while helping employees nearing retirement who wish to work part-time. Luxottica employs 10,000 people, where 60% are women and 40% men, and the average length of service is 13 years. In the period from 2016-2018, 100 employees with three years to go before retirement have been given the opportunity of working part-time, with the same retirement benefits, in order to allow the same number of young people to pass from a temporary to a permanent contract. This initiative also gives employees with serious or incapacitating illnesses the opportunity of working part-time at five years from retirement.
As to 31 December 2016, Luxottica Group has 82,282 employees, 65% of whom work full-time and 35% part-time.
|Luxottica in the World in 2016|
|Number of employees||82,282|
|- Part-time < 50%||22%|
|- 51%< Part-time <80%||11%|
|- Part-time > 81%||2%|
In recent years Luxottica has continued to grow, with the number of the Group’s employees increasing by 4.2% from 2015 to 2016. This increase took place primarily in Africa and the Middle East (44.8%), Europe (14.7%) and the Asia-Pacific Area (9.1%).
As a whole, 50.7% of Luxottica employees are in North America, 17.5% in Europe, 24.3% in the Asia-Pacific Area, 6.7% in Latin America and the Middle East and 0.8% in South Africa.
Employees by geographic area (2015 VS. 2016)
Employees by geographic area (% 2016)
Il 58,3% dell’organico di Luxottica è dedicato al business retail, l'11,4% al business wholesale e il 29,6% alle attività di produzione. Il quartier generale di Milano rappresenta lo 0,7% dell’organico complessivo del Gruppo.
Employees by business area (2015 vs. 2016)
Employees by business area (2015)
PROTECTION OF EMPLOYEES around the WORLD
For Luxottica, respecting and protecting human rights and workers' rights are fundamental values. The Code of Ethics represents the Group’s system of values. The Code of Ethics is adopted by every office around the world and helps define management and human resources policies.
Balancing the principles of the Code of Ethics and the social-cultural characteristics of the countries where Luxottica operates is considered essential to ensuring compliance with the characteristics and specificity of different contexts. The Group also adopts a zero tolerance approach towards the violation of human rights, the exploitation of labour, above all child labour and violation of the right of association and the right to bargain.
A CULTURE OF SAFETY
Safety is a central aspect of Luxottica's Company policy, which ensures well-being, prevention and cooperation. Over the years the Company has developed a culture of workplace health and safety in order to encourage virtuous behaviour that decreases risk. Luxottica has introduced and continues to develop an organizational model that encourages an open and constructive approach to guaranteeing workplace safety, particularly for its production and logistics departments.
Safety is ensured through a prevention and protection department at each facility, which is in turn coordinated by a central department whose scope is to standardize behaviour and guidelines.
The guidelines for the Group's business activities and initiatives go beyond fulfilling the training and information obligations set forth by the Safety Consolidation Law (Legislative Decree 81/2008 et sequitur) and include:
- designing and maintaining an appropriate and safe workplace
- continuous updating of the accident prevention management procedures and constant monitoring of industrial hygiene, taking into account physiological and behavioural aspects that may affect the occurrence of accidents and occupational diseases
- training, through appropriate training programs.
THE "ZERO ACCIDENTS" PROJECT IN ITALY
For Luxottica prevention is synonymous with social and moral responsibility towards its employees and is the only proven method to reduce workplace accidents and ensure safety.
In 2007, when 117 factory accidents occurred, the “Zero Accidents” project was introduced in order to turn safety into a Group value and develop an authentic accident prevention Company culture. The Group obtained workplace health and safety certification OHSAS 18001:2007 for all its production factories. The Agordo facility was the last factory to obtain this certification in 2014, ending a process that had begun two years earlier with the Rovereto factory.
Thanks to continuous investments and the development of infrastructures and plants, and the ongoing training of its employees, Luxottica has significantly improved safety in its factories, reducing the accident rate in its factories by 46% in the period 2010-2016.
An audit process was started in 2015 at different levels of the organization in order to involve and sensitize employees on their duty to report situations of risk or danger. “Safety Corners” were set up in the production departments, where operators may report situations that are considered to be unsafe or at risk. The main objective of the project is to constantly reduce the number of accidents in departments through the active involvement of all employees.
All the actions and measures implemented by the Group have reduced health risks and improved the safety of employees, and are constantly monitored and assessed through the main indicators indicated below, some of which are specific to the Zero Accidents project.
The higher number of potential risk situations reported (nearly 10 times higher over 2 years) is a very positive aspect and confirms the growth and dissemination of a safety culture in the Company, as well as an increasingly proactive and participatory approach by the organization as a whole in terms of safety management.
|Frequency rate (1)||3.3||3.2||3.5|
|Number of accidents||37||40||47|
|Number of first aid cases and close call accidents (2)||242||245||288|
|Number of reports of unsafe situations and SMARTaudits (3)||683||4,214||5,575|
|Number of recognised occupational diseases||8||4||7|
(1) Frequency rate: number of events per 1,000,000 hours worked. This is the main indicator of the accident rate because it takes into account the number of hours worked and not simply the absolute number of accidents
(2) First aid: an internal indicator that monitors events involving minor injuries that are generally handled by first aid operators. Close call accident: an internal indicator that monitors events which may potentially lead to an accident/first aid event that might have caused an injury which, by pure chance, did not materialise.
(3) Internal indicator linked to the Zero Accidents project. The project was started in 2014 so that the reports for that year refer to just several months
“Safety Week” is an initiative to raise the awareness of employees on safety and prevention, which confirms the ongoing efforts by Luxottica to protect its staff.
Inspired by the “Safety Day” event organized in 2013 by Chinese factories consisting of training courses and evacuation drills, “Safety Week” was held the following year in all Italians factories: five days dedicated to training, education and prevention for approximately 8,000 employees. The second edition of Safety Week was held in the Chinese factories in 2015. In addition to these initiatives, one-day safety courses are organized on specific safety issues.
A NEW WAY OF INTERPRETING SAFETY: BEHAVIOUR-BASED SAFETY
A number of studies have shown that more than 80% of workplace accidents are caused by at risk behaviour.
On this basis, over the last twenty years scientific Behaviour-Based Safety (BBS) regulations have been developed; this is a specialised branch of Behaviour Science, in which Luxottica has been actively involved. A new way to interpret safety was developed and introduced starting with the Cencenighe factory in 2014 and then gradually extended to other Italian factories, which not only introduces specific initiatives but also actively involves all the Group functions.
According to the “Behavioural Based Safety (BBS)” project, an observer in each department of the factory fills out a checklist every day in order to detect safe or at risk behaviour, that is then analysed and, thanks to continuous feedback, modified and improved. Thanks to the information provided by observers, a specific training course has been organized.
By implementing the BBS, Luxottica intends to achieve the following objectives:
- Develop a culture of fully shared security, encouraging the active and voluntary participation of workers, above all through positive backup and feedback
- Build better relationships between department heads and workers, even outside the safety context, increasing the sense of belonging to the Company, that focuses on values and corporate social responsibility
- Ensure an even more “active participation by workers” as set forth by the Safety Consolidation Law (Legislative Decree 81/2008 et sequitur).
Once the process has been started in all the Italians factories, more than one million behaviours a year will be observed in terms of reciprocal support and working in safety.
WELL-BEING AT WORKPLACE
The protection of the health and safety of each and every employee of Luxottica Group is based on the principle of adapting work to the worker. The greatest focus in Italian factories is on ergonomic risks (repeated movements and manual handling of heavy loads).
In order to monitor these risks more closely, in recent years Luxottica has identified and developed tools and technology solutions that improve workplace health, safety and ergonomics. The following are the most important of these:
- Technical measures to improve working conditions (e.g.: lighting, micro-climate, ventilation)
- Organization measures:
- adapt duties according to the characteristics of the skills of each worker, limiting the most strenuous activities (e.g.: manual handling of loads), reducing the overall ergonomic load for all workstations with specific analyses and measures for each workstation
- extend health care
- reduce repetitive motions without added value, introducing collaborative automation, a robot works for man not to replace man.
- Training for all employees and operators, ensuring that they learn new skills, acquire additional expertise and upgrade existing skills and expertise
- Behavioural Measures:
- promote physical activity with initiatives to prevent work-related disorders and customised physical and rehabilitative exercises to treat muscular-skeletal problems
- encourage a healthy diet through advice on healthy foods and specific menus in the cafeterias of all the Italians factories.
DIVERSITY AND EQUAL OPPORTUNITIES
Caring for people, developing skills, rewarding hard work and commitment, promoting diversity, protecting health and safety and improving the well-being of each and every person on whom the success of Luxottica depends.
For a Group as global as Luxottica, cultural diversity is an asset that must be preserved and protected. All Luxottica employees must indeed work across differences, in an environment of constant cultural exchange. Managers should create supportive environments for everyone and for any context, where differences become a stimulus to enrich oneself both personally and professionally.
Understanding cultural differences is therefore of strategic importance in order to introduce measures to create a culture of mutual respect. These include training programmes dedicated to raising awareness on one's own cultural characteristics and respect for diversity. These programs are offered to help the personal development of employees and support expatriates who start working at another Group factory, in order to help them adapt and fit into the new culture and organization, they are also organized at a regional level in order to develop fundamental skills to become true leaders.
PROFESSIONAL DEVELOPMENT AND TRAINING
The ability to ensure a balance between the different aspects of well-being confirms the Group's commitment to ensuring not only health and safety, but also personal and professional development.
Attractiveness and development of skills
Luxottica has always recruited highly skilled resources with excellent technical-professional and managerial skills, passion, the ability to adapt easily to change, a strong spirit of cooperation and teamwork.
In order to create a unique and shared “talent” culture around the world, Luxottica started a process in 2013 of gradual alignment of talent assessment methods that resulted in the development of the Group's common guidelines. From assessing performance to assessing potential, the cornerstones and points of reference are those that characterise Luxottica - Passion, Entrepreneurship, Imagination, Simplicity and Speed - all of which inspire the leadership model to which all managers must aspire.
The Talent Management and Leadership Planning process, based on a shared global schedule, permits the mapping and promotion of all those who demonstrate the potential to take on responsibility within the organization.
In 2017, Luxottica intends to create a single performance assessment process that is standardized throughout the Group. This coordinated and efficient process will identify strong points and the professional growth levers to be developed.
Thanks to the cooperation and alignment of the local Human Resources functions with the Corporate Learning & Development team, the development initiatives and training opportunities introduced in all the different regions to support top talent, represent a balanced and integrated offer that allows each and every employee to find the right development keys for their careers. The increasing focus is to provide to the different geographic areas, guidelines, tools and formats that may be implemented locally, thus generating value while ensuring the efficiency of the system.
Training plays a key role in the development of people. It encourages the strengthening of personal and professional skills, while disseminating the principles and values of Luxottica's corporate culture at a global level. Training is organized in two main ways: through the Luxottica Characteristics and through the key themes for the Group's business and strategy. In this way, training and development programs at a global, regional and local level become a horizontal objective to develop skills and raise awareness, becoming a means to ensure the growth of individuals and Luxottica as a whole.
One training program based on the Characteristics is held in Italy and offers a range of activities depending on corporate function, and focuses on specific themes and targets for each seniority level, from the most junior to the most senior positions. The training program includes language and obligatory courses, such as those on workplace safety and the Code of Ethics. All courses for individuals and groups take place in a classroom setting. Luxottica’s ”Own Your Development” philosophy, based on the empowerment of individuals in the management and planning of their training, allows every employee to plan his/her own training program on the digital platform “Learning Advisor”. They can focus on professional development levers that are identified during performance evaluation sessions held with their manager.
In addition to general training, Luxottica considers developing the technical skills of corporate associates to be a fundamentally important aspect. This type of course is provided by specialized external companies in a classroom setting, through workshops or participation in international conferences. A success story in this sense is the Finance Academy for the finance and control function in Italy, whose scope is to develop and upgrade the technical skills required to attain business objectives. After six Italian editions, the Finance Academy became international in 2016: a group of 28 finance and control experts from different Group offices participated.
Those who join the Company, in either a junior or senior position, are generally expected to attend an Induction course. This type of training speeds up the process of integration and helps new employees learn about the Company and its values more quickly.
As part of its Induction method, Luxottica has developed a "Basics of Operations" course, which consists of classroom lessons held by internal Company lecturers who explore the world of Luxottica through the product life-cycle, from the design module stage through to production and distribution. Employees are given the opportunity of attending demonstration sessions during which they experience the production activities live in different departments or laboratories.
The training program for apprentices, which is developed over three different periods, is handled internally. Each training period includes the development of soft skills, language skills, experience and technical? skills. Young talent who join Luxottica are included in the Junior Program, which is part of a Talent Management program for developing essential skills required for a particular position.
In addition to its training programs, Luxottica offers employees digital media stored on the corporate database (video, documents, digital lessons), through which they may learn about the history of the Company, the different departments, geographical areas, employees and initiatives, including an overview of the Company at a global level.
For Luxottica, developing professional skills does not only involve its employees. One of the most important socially useful initiatives, in terms of developing human resources, is the Group’s internship program organized in collaboration with the Universities. Thanks to this initiative, Luxottica helps support the development of professional skills, techniques and much more, in the different communities, in order to create shared values.
Luxottica has developed a number of global and regional coaching initiatives to reinforce its training programs. Coaching methods are considered to be extremely important, both in talent development skill development for managers of the Group. Luxottica’s Coaching Academy is an example of how the Group continues to invest in the coaching skills of middle managers to ensure they promote a culture of feedback in the different regions. In 2016, two sessions of the Academy were held, one in North America and one in China.
THE FEEDBACK CULTURE AND THE APPROACH TO CHANGE
Luxottica has always invested in training programs that reflect the Group's values, develop open and valuable relationships between colleagues and prepare the leaders of the future. Ongoing feedback is considered to be particularly important both for individuals and the organization as a whole.
In 2014, Luxottica developed and encouraged a feedback culture to create an open, honest and meaningful workplace that offers a competitive advantage in the long term. A collaborative relationship between people is of fundamental importance not only in terms of improving well-being in the Company, but also in making the Company more flexible when managing complex situations and attaining its corporate objectives.
Pulse Survey is the tool that Luxottica uses to measure the dissemination of the Feedback Culture across the Group. All managers, in collaboration with the HR functions of each geographical and business area, have established a Dialogue of Value with employees. On average, according to the results for all the quarters in 2016, more than 90% of employees took part in the survey, and of these, 88% said they had a Dialogue of Value with their manager in the previous three months. This result comes from the ongoing training efforts and the introduction of a new global community for Luxottica employees called IMPACT: an important opportunity to develop personal and professional skills in order to increase one's “personal impact” in the Company.
WELFARe proGrAMS IN ITALY
There has always been a direct link between the Group’s success and the improved welfare of those who work for it. Luxottica Welfare is a model of reference on the Italian industrial scenario and includes economic, healthcare, educational and social benefits for employees and their families. Committing itself and investing in resources in order to improve the well-being of employees and their families is for Luxottica, a direct investment in the future of the Company. The Welfare program is the most recent example of this commitment, and involves approximately 10,000 Italian employees of the Group and their families. From the time it was introduced the Welfare program has seen important returns, such as the exponential improvement of the employee attendance rate at the Group’s factories.
The scope of the Luxottica Welfare System, which was introduced in 2008-2009 during a time of economic uncertainty supports employees with alternative tools of income support and forms of non-monetary remuneration, inspired by a strict principle of public welfare subsidiarity.
The virtuous circle which links the results of the Group with the welfare of employees, is based on a culture of quality. The benefits of the Welfare System on the quality of people's lives reinforce social cohesion and inclusion, as well as a sense of belonging and confidence in the Company, which is a point of reference for the community as a whole. Employees are motivated to improve the quality of their work, which benefits competitiveness and reduces costs. In this way resources are recovered and reinvested in new projects, making the system financially sustainable. The very raison d'être of the Luxottica Welfare System is based on a mutual understanding of organizational requirements and the needs of people
The Group's approach to corporate welfare is an innovative model even in terms of industrial relations. It is based on the value of concertation with trade unions, where participation, dialogue and joint management of initiatives place the value of people at the heart of agreements.
The Luxottica Welfare System, which was revised and extended in 2013, has a dedicated function and a specific governance structure consisting of:
- the Governance Committee, this is a joint corporate and trade union committee, whose task is to identify, propose and assess actions ascertaining whether they comply with the real needs of employees, analyze and support any management actions that may be required to ensure increasingly high quality standards, and decide the allocation of financial resources to allocate to the program
- the Technical-Scientific Committee, this is an independent committee whose scope is to prepare social-economic-financial information and analyses in order to support the activities of the Governance Committee.
The main areas of intervention of the Group's Welfare system are: young people and training, income support, health and well-being, sustainable mobility, services to people and families and work-life balance.
YOUNG PEOPLE AND TRAINING
Luxottica has introduced concrete actions to support the next generation as they start to lay the basis for their training and professional future. All initiatives correspond to greater support for the development and growth of the local communities where the Group works, according to Luxottica's shared value approach.
In collaboration with public and private schools in Italy, Luxottica organizes counselling programs for high school students to help them find the best opportunities to enter the workplace.
As part of the school counselling program, courses to prepare for university tests are organized for students who have completed high school and have attained a high school leaving certificate. The initiative currently serves communities in the Belluno province, but will be extended to other territories where Luxottica operates. 200 students were involved in the first three editions, including the children of employees and local students.
The Battle against Early School Leaving and Advocating Education
Luxottica promotes and subsidizes remedial courses for high school students in some of the areas where it operates, focusing on critical subjects such as mathematics and foreign languages. Over the years, the initiative has been developed with an innovative approach to schooling remedial activities through “peer education”.
As part of the alternating school-work program, in collaboration with local schools, the Group offers paid summer internships \ for school students and the children of employees in groups of three and four. Since 2013, nearly 400 summer internships have been organized. In 2016, the initiative involved 150 children, more than triple the number in 2013.
Rewarding Merit and Excellence
The most deserving upper secondary school and junior secondary school pupils, university or post-graduate master students are rewarded scholarships of different values depending on the school age and results obtained (from 8.5/10 marks for upper secondary schools and junior secondary schools, 9/10 marks for junior school examinations, 90/100 marks for high school leaving examinations, 28/30 105/110 marks for university graduation).
University students who have an exam marks average equal to or above 29/30, and who have passed all the exams in their annual study plan, are eligible for full reimbursement of fees through to graduation. Both initiatives are addressed to children of employees and students-workers of the Group. In 2016, 291 students were rewarded with scholarships and 9 with the reimbursement of university fees. Since 2011, 1404 scholarships and 24 university fee reimbursements were awarded.
An International Dimension
In the summer, Luxottica organizes weekly Summer camps for the children of employees of the Group's Italian and European facilities: a holiday experience with the possibility of learning a sport, language or experiencing another culture in famous Italian tourist localities or even a stay abroad with the families of employees.
The 2016 Summer camp was attended by almost 700 young people from the Italian and European facilities of the Group, with respect to 330 in 2014, when the initiative was introduced.
Recipients of income support initiatives are the employees of the Italian facilities of the Group and their families.
The Company Cafeteria
The Company cafeteria is always free of charge for the employees of factories and the Milan facility. Over the years, as more and more people started to experience food intolerances, increasing efforts were made to meet these needs.
Moreover, thanks to awareness campaigns carried out in cooperation with occupational medicine, novelties were introduced to menus (whole foods, fatty blue-fish, different types of vegetables) and information is provided about the ingredients and properties of the meals.
The shopping cart was Luxottica's first corporate welfare initiative and consists of the distribution of a basket of foods to the families of employees.
In 2016, the eighth edition involving more than 9,000 employees was carried out. Since 2009, more than 70,000 carts, having a value of more than 5 million Euro, have been distributed. Over the years, the contents of the Shopping Cart have been renewed, to include and promote local products.
Since 2014 Luxottica allows employees who are experiencing financial difficulty to obtain easy-term loans, guaranteed by the Company, to meet urgent expenses relevant to extraordinary and essential needs in the following areas: housing, health, education, family, car, small cash requirements.
Employees may also use a range of different services, starting from the initial support service through to the assistance during the loan procedure, including financial educational programs to improve the management of the family budget and savings.
In order to guarantee complete confidentiality and neutrality, applications are selected by an impartial third party.
Luxottica supports the cost of school and university text books. Since 2009, the cost of text books, having a value of more than 2 million Euro, have been reimbursed. In 2016, the initiative has involved more than 1,700 students.
Luxottica has created a platform that gives employees access to a range of goods and services at exclusive prices reserved only to them. The offer varies according to the categories of interest and geographical areas, and includes promotions in different Italian regions.
The special price agreements include discount coupons for the purchase of two pairs of glasses for all employees that are accepted by participating retailers.
HEALTH AND WELL-BEING
The recipients are again the employees of the Italian facilities of the Group and their families.
Luxottica has signed an insurance policy with a leading insurance company to cover healthcare, diagnostic and specialist costs for employees and their family members, such as spouses, partners and children, including adopted children.
The Life Bonus was introduced in 2016, to provide a sum of 30,000 Euro as financial support to the family in the case of death of an employee. In the case of families with under-age children, children still at school, family members with a disability or a mortgage on the first home, even in the case of a joint name registration, the amount may be more than doubled. In 2016, an amount of 160,000 Euro was paid out to the heirs of four employees who passed away. In 2017, an amount of 120,000 Euro was paid out to the families of three employees who passed away.
Support Service and Counselling
This is a telephone support service for advice on improving the quality of work, social and family relations and helping people to face moments of uncertainty and psychological difficulty with more awareness. The service is provided by qualified clinical psychologists, and is free of charge, confidential and anonymous (a pseudonym may be used), and is available 24/7. To ensure continuity, you may always ask to speak with the same expert for an unlimited number of calls.
More and more employees use public transport for their home-work trip, with very important results in terms of pollution prevention and traffic decongestion, that reduce impacts on the relevant territory.
In order to ensure the best service, Luxottica works closely with the local transport companies to ensure appropriate services at peak times and in the areas were workers reside.
Payment in Instalments of Annual Subscriptions
Luxottica pays annual subscriptions upfront on behalf of workers, to the local transport companies for transport from the worker's home to the workplace. This service is also available for children for transport from home to school.
In order to offer a service when public transport is insufficient, employees may use the “Zero Car” pooling initiative. Employees who come to work with at least three colleagues are given the use of a parking space on the Company premises.
All sustainable mobility services help to reduce the harmful emissions of carbon dioxide into the environment. Environmental protection is in fact an essential part of Luxottica's environmental sustainability strategy.
Ethical Hour Bank
In 2016, Luxottica introduced the “Ethical Hour Bank” with the goal of increasing and improving solidarity between colleagues. Luxottica employees may donate a part of the hours they accrue to colleagues who need them. The Company doubles the number of hours donated to the recipient. To date hours equal to a value of 22,712 Euro have been donated, which the Company then doubled to 45,424 Euro.
Leave for Fathers
In addition to the provisions of applicable laws, employees who become fathers are given 5-days paid paternity leave on the birth of their child or when their adopted child comes home.
In addition to paid leave on the birth of their first child, Luxottica employees are given an extra week of paid leave when their children go to nursery school the first time.
Unpaid Leave for Child Care
In addition to the provisions of the law on parental leave, both parents are allowed to take short periods of unpaid leave for urgent situations, such as:
- Accompanying children to hospital for admission or to the emergency room for emergency medication
- If the headmaster of the schools asks the parents to take their children home for health reasons
- To take a child to the doctor.
Other leave that may be taken includes:
- leave for study and training purposes
- short periods of leave for family needs