Performance Overview
Our people: Employee empowerment and engagement
Employee empowerment
Employee empowerment is one of the key principles at ST; clearly defined objectives and teamwork are two of the ways in which we seek to achieve it.
| Employee objectives and incentives |
% |
| |
2004 |
2005 |
| STS30a: Employees with annual objectives*† |
|
95 |
| STS30: Employees with team goals in annual objectives* |
78 |
65 |
| STS31: Employees with incentive based on team results* |
64 |
64 |
| STS22: Employees with personal development objectives*† |
|
93 |
| STS31a: Employees with one objective of VIP** linked to innovation*† |
|
25 |
| (*) |
Professionals, technicians and administrative staff. |
| (**) |
VIP = Variable Incentive Plan |
| (†) |
This is a new indicator. |
| STS34b |
% |
| |
2005 |
| Employees involved in teams or Excellence projects* |
34 |
| (*) |
This is a new indicator. |
Employee engagement
Employee suggestion scheme
We welcome personal initiatives and greater staff involvement in the company. One of the key ways in which we encourage this is through our long-standing employee suggestion scheme.
| Employee suggestion scheme |
| |
2003 |
2004 |
2005 |
| STS32a: Suggestions for the year |
|
|
92,778 |
| STS32: Average number of suggestions by employee* |
2.6 |
1.9 |
1.9 |
| STS33: Acceptance rate for suggestions* (%) |
74 |
47 |
48 |
 STS34: Accepted suggestions which were implemented (%) |
44 |
54 |
57 |
| (*) |
All employees can make suggestions but not all are appropriate and therefore may or may not be accepted or implemented. In previous years we have focused on the suggestions results of our back-end manufacturing sites only. This year, we are able to show the total number of suggestions gathered by all
sites for the first time. In 2004, ST focused on quality-related suggestions,
which resulted in a steep decrease in the number of suggestions in the backend
when compared with the previous year. |
| STS28b |
% |
| |
2005 |
| Percentage of unplanned absenteeism* |
3 |
| (*) |
This is a new indicator. |
Participatory management
Another key method of engagement is employee attendance at and participation in site meetings, where company strategy and results are presented and where any topic of discussion can be raised by employees. The average number of meetings in 2005 was 10 meetings per site, although the actual number varies significantly from site to site.
 STS34a |
| |
2005 |
| Average number of meetings in each organization or site during which management presents company/organization/site results to all employees allowing time for open discussion (number/year)* |
10 |
| (*) |
This is a new indicator. |
Employee opinion survey
Despite our reorganization activities, we decided to go ahead with the 2005 opinion survey. Intranet participation was possible in some countries for the first time. More than 30% of staff took part in the survey this way. It is too early to present detailed findings but we can present some results. Although it has decreased, the overall participation rate remains high compared with the industry average.
| STS28a |
% |
| |
2003 |
2005 |
| Overall participation rate |
87 |
80 |
| Overall satisfaction rate* |
65 |
61 |
| (*) |
This is a new indicator. |
Almost all categories received a lower score than they did in 2003, particularly quality, innovation, and company image. The circumstances in 2005 – reorganization and restructuring – clearly had an effect on the opinion of employees, but some themes are recognizable from the previous opinion survey and efforts have been made locally to respond to them (see the articles on Asia-Pacific and Rousset).
Once we have analyzed the results in detail, we will consider what we need to do at both a local and a corporate level to reverse the downward trend.
|
