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This content was subject to assurance by SGS Italia S.p.A. (14 March 2014).

Management and development

Through robust people management processes that cover the entire employee life-cycle - from selection to retirement – the Group is committed every day to developing existing talent, focusing on business objectives as well as individual growth opportunities.

The company not only recognizes that human capital is essential for its success, but also believes that it has a responsibility toward its employees.

The Group’s approach to human capital management and development rests on five key principles:

  • Merit must always be recognized and employed
  • Leadership is a worthy calling, which enhances people’s lives
  • Taking on the competition is the stimulus for aiming ever higher
  • Best-in-class performance is the goal we want to achieve
  • Keeping our promises is what makes us credible and reliable.

Those principles are essential to the Group culture and have been embodied worldwide into the Group people management processes, through which employees' performance is evaluated and aspirations are embraced.

Performance and Leadership Management (PLM) is the appraisal system adopted worldwide to assess Group employees (manager, professional and salaried).(1) It is one of the key processes used by Fiat Group in the management and development of human resources.

Through PLM, specific targets are set to help guide and assess employees in relation to their results and leadership behavior.

This unique skills mapping and evaluation process, which is the basis for variable compensation,(2) is supported by information systems that enable managers to constantly access up-to-date information on the people within their organizational unit, as well as those not directly in their reporting line. In this way, the individual performance of each employee is accessible and can be examined by upper management within the organizational structure. The PLM process serves not only as the basis for all human resources management decisions, but is also a fundamental element specifically in talent management, succession planning and sustainability culture growth. Sustainability targets are in fact incorporated every year in the performance management system for 100% of individuals with responsibility for projects included in the Group Sustainability Plan, for Group Executive Council members and a majority of second-level reports to sector CEOs.

During 2013, complete performance and leadership mapping processes were conducted for around 54,500 Group employees, including all managers and professionals, and a portion of salaried employees.

The proportion of salaried employees evaluated has increased on a yearly basis, from 68% in 2012(3) to 69% in 2013. 100% of all hourly employees complete a pre-employment screen and an initial probationary evaluation through WCM performance management system.

The importance of the evaluation process to the company’s success is also demonstrated by the five days dedicated to the process by Fiat S.p.A.’s Chief Executive Officer and Chrysler Group’s Chief Executive Officer and Chairman, together with the Regions and supporting businesses Heads in analyzing the results of the PLM process, with particular emphasis on senior managers. Concrete measures in terms of the career development of individual employees combined with the evolution of the business will be defined and planned, determining organizational changes, cross-region and cross-company transfers as well as key positions filled largely by internal candidates.

 

(1) In some areas, a similar appraisal system, named Performance & Behavior Feedback, is in place for salaried employees.
(2) The PLM process is the basis for the individual contribution element for manager and professional employees’ variable compensation.
(3) Data includes Chrysler Group for the full year.