Our people: Performance and job evaluation

Individual performance appraisal

We use a formal process to evaluate the performance of our staff and help them develop their careers. All managers are asked to give their staff at least one individual annual performance review.

STS21: Performance appraisals completed			%
	2003	2004	2005
Managers, engineers, technicians	95	94	87

Our target is to reach 100%. The drop in 2005 reflects the significant changes connected with the company reorganization, which have had a noticeable impact on routine activities.

This year, we have slightly modified the process by adding an additional level of evaluation (six instead of five) to help us differentiate staff performance more accurately. At the same time, we have developed our online performance appraisal tool (ePA), training managers at all sites in how to use it. This should speed up the appraisal and salary review process.

Collective people review

In 2006, we plan to implement a people review on a worldwide scale using a standard approach that we have defined in 2005. The aim is to identify, develop, and retain the best talent in ST and to strengthen the commitment and contribution by these staff. The review will involve:

• Identifying talented employees
• Analyzing their characteristics and strengths
• Creating programs that help retain and develop these staff
• Using peer judgment to ensure fairness in the review and limit the risk of mistakes.

STS21b

During the past two years, 43% of all professionals have been assessed during a collective people review. Our objective is to develop and extend this process in the coming years. This is a new indicator.

Job evaluation

STS21a

Between 2004 and 2005, we wrote job descriptions for 74% of professional/non-professional jobs (excluding operators) either because they were new jobs, had evolved significantly, or simply to make sure the existing job description was still accurate. This is a new indicator.

Competency referential project

Each job in the company is given a reference, depending on the level of expertise it requires. In 2005, this project was ongoing.

Our objectives for 2006 are to:

• Complete implementation of ePA and extend its use worldwide
• Complete the competency referential project
• Increase the number of training hours.