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Performance Overview
Our people: Employment, attraction and retention
Over the last 10 years, our total headcount has almost doubled.
| LA1; ST12: Total headcount evolution |
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More recently, recruitment has slowed although it remains very positive in Asia-Pacific. In Europe and the Americas, recruitment is slightly positive while in the Mediterranean region, it is almost stable. These trends reflect our strategy of adapting the workforce to the business needs. For example, in Asia, where the market is booming we are growing our manufacturing capacity. In Europe, the focus is more on R&D, design, and advanced products and technologies. We are also redeploying existing teams on focused projects.
| LA1; ST12: Headcount evolution by region |
| |
2003 |
2004 |
2005 |
| Europe |
21,878 |
22,593 |
22,405 |
| Americas |
2,985 |
3,180 |
3,120 |
| Mediterranean |
7,032 |
7,224 |
6,906 |
| Asia-Pacific |
13,759 |
16,532 |
17,602 |
| Total |
45,654 |
49,529 |
50,033 |
 LA2: Job creation and turnover |
| |
Net job creation
2005 |
Average turnover (%)
2005 |
| Europe |
(188) |
2.2 |
| Americas |
(60) |
9.5 |
| Mediterranean |
(318) |
8.7 |
| Asia-Pacific |
1,070 |
14.8 |
| Total |
504 |
7.8* |
| (*) |
Turnover in 2003 and 2004 was respectively 5.2% and 6.6%. These total average figures must be used with care since situations are very different according to countries. |
The choice of this GRI indicator as one of our Key Performance Indicators reflects its overall importance. However, it needs to be considered in the context of the individual regions and countries. For example, natural turnover is something we must fight in the countries where growth is important (see our actions regarding ST as an employer of choice in Asia) and encourage in countries where growth is low or stagnating. In a completely stable situation, a minimum turnover is desirable, allowing us to get 'new blood' without necessarily increasing our headcount.
| LA2: Hires by job type |
| |
2003 |
2004 |
2005 |
| Engineers and managers |
2,266 |
2,593 |
1,605 |
| Technicians and administrators |
1,032 |
1,167 |
749 |
| Operators |
2,746 |
4,446 |
3,189 |
| Total |
6,044 |
8,206 |
5,543 |
Up/down cycles in our industry mean our staffing needs can vary enormously. If the need for more staff appears to be short-term, we use short-term hiring, converting positions into permanent contracts whenever possible. This was the case this year in Asia and Europe.
Regarding turnover, it remains rather high in developing countries, especially in China. Our objective in most of the countries we operate in is to maintain our overall turnover at the same level, while in India and China we aim to reduce it.
| Recruitment |
% |
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2003 |
2004 |
2005 |
| STS1: Offer-to-acceptance ratio |
95.7 |
91.4 |
93.5 |
| STS2: Fresh-out recruitment rate |
61.8 |
59.1 |
56.1* |
| (*) |
Voluntary decrease in connection with refocus and redeployment. |
| STS3: Recruitment cycle time (days) |
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2003 |
2004 |
2005 |
| Professionals* |
59 |
55 |
49 |
| Non-professionals* |
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22 |
| (*) |
Average cycle time to recruit employees from job opening to acceptance. |
| Average employee age and seniority |
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2003 |
2004 |
2005 |
| STS4: Average employee age |
33.8 |
33.7 |
33.9 |
| STS5: Average seniority (years)* |
8.6 |
8.5 |
8.8 |
| (*) |
Seniority is the average length of employment of employees currently working in the company. |
| Average career length and turnover rate |
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2003 |
2004 |
2005 |
| STS6: Average career length (years)* |
10 |
12 |
15 |
 LA2: Average turnover rate (%) |
5.0 |
6.6 |
7.8 |
| (*) |
Career length is the average length of employment of people leaving ST. Thus the calculation of the career length is based on the average turnover of the last 3–5 years. |
| STS6: Length of employment |
% |
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| >0–<2 years |
25 |
| >2–<5 years |
17 |
| >5–<10 years |
31 |
| >10–<20 years |
17 |
| >20 years |
10 |
In 2005, 58% of our employees had worked for ST for over five years.
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