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Nestlé in society – Creating Shared Value and meeting our commitments 2014

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Our people Nestlé in society: Creating Shared Value Nutrition Rural development Environmental sustainability Water Human rights and compliance

Developing Employee Relations capabilities

Nestlé maintains a network of more than 60 professionals

around the world, comprising our global Employee Relations

(ER) community. Initiated in 2009, corporate ER began by iden-

tifying those individuals in each business market that were re-

sponsible for ER topics; the majority of those identified worked

in industrial relations. In the intervening six years, the role of

these experts has evolved significantly: they are now not only

responsible for labour relations but also for the implementation

of the Policy on Conditions of Work and Employment, among

other areas directly affecting employee trust and engagement.

In 2014, we identified the critical capabilities for success and

described each one as specific behavioural indicators so our

Employee Relations colleagues know what they need to deliver

day to day. To support their development in these capabilities,

we have built a comprehensive learning curriculum using a

70/20/10 approach

17

to development and will launch a global

learning programme in 2015 focusing specifically on these

behaviours.

Learning about Creating Shared Value

Our challenge is to balance the need to engage people in Creat-

ing Shared Value (CSV) to enable them without overloading

them.

We begin by building CSV into our management training to

maximise capability and understanding at leadership levels. CSV

is now firmly embedded in all courses run at both our internation-

al training centre and across all zones – reaching around 2 500

current and future leaders a year. Senior Managers have the op-

portunity to attend the Prince of Wales Business and Sustainabil-

ity Programme at Cambridge University, and we have developed

a bespoke sustainability training solution to answer the needs of

Nestlé leaders, which is currently delivered at our International

Training Centre and will be deployed globally.

As a leading Nutrition, Health and Wellness company, we

provide engaging nutrition training that is based on the most

up-to-date public health priorities, called Nutrition Quotient

(NQ) training, to all Nestlé employees – regardless of their work

site and working conditions. Our aim is to help our people make

informed decisions about their own nutrition, that of their family

and the nutritional needs of our consumers. The aim of this

training programme

is to ensure Nestlé employees have a good

understanding of nutrition and also empower them to use this

knowledge in their work as well as with family and friends out-

side of the workplace. More than 310 833 employees have

completed Nutrition Quotient training since the programme

was launched in 2007. In 2014, 51 113 people received refresher

training (2013: 108 083).

Environmental awareness

We are also developing our environmental awareness pro-

grammes to foster a continuous improvement culture towards

more environmentally sustainable business practices. One of

our new training programmes in 2014 was the Environmental

Sustainability Leadership Workshops – Train the Trainer (TTT).

The TTT workshops, organised in each zone, enable the deploy-

ment of environmental awareness training and education to all

employees. A 30-minute online training course on Environmen-

tal Sustainability at Nestlé is available to all Nestlé employees.

Read more about engaging with our employees on environmen-

tal awareness in

Environmental sustainability .

Developing our people

Our employee development strategy is designed to help em-

ployees gain the competencies and leadership capabilities they

need to contribute to the success of the business as well as

develop their own careers. Different development actions have

different levels of impact. Nestlé believes that effective develop-

ment should be through 10% formal education, 20% through

relationships and 70% through practical experience. Fostering

development plans that embed the effective 70/20/10 approach

is key to building long-term, robust capabilities.

Recruiting and developing local talent with local knowledge

is also crucial to the success of the business, especially in de-

veloping countries where the proportion of native employees at

management levels lags behind that of more developed coun-

tries. In 2014, 56% of Local Management Committee members

in developing countries were native to that country (2013: 52%).

Employee Job Success Profiles

Our Job Success Profiles detail what success looks like for a

particular role, and they help employees to understand what

they need to do to succeed, as well as identifying opportunities

for development in functional and leadership capabilities.

The profiles are published at corporate and local levels and

on the intranet, along with information about possible career

paths (within certain functions). They play a key part in the com-

pany’s personal development process. For operators on the

factory floor, we use a tailored skills matrix to track individual

learning and development needs.

17 The 70/20/10 model, developed by the Center for Creative Leadership (CCL), is based on the

concept that “lessons learned by successful and effective managers are roughly: 70% from

tough jobs; 20% from people (mostly the boss); and 10% from courses and reading.

Number of countries where training sessions were held

2014

86

G4-EC6, G4-LA9