Employees

The Group’s employees are crucial to its ability to compete as a leader in the global auto sector, as well as to create value that is sustainable over the long term.

As of December 31, 2014, the Group had a total of 228,690 employees, a 1.4% increase over year-end 2013.

Employees by region
Europe 38.5%
North America 37.4%
South America 20.6%
Asia 3.4%
Rest of World 0.1%
Total 100.0%

Employees by category(1)(2)
Hourly 69.5%
Salaried 15.0%
Professional 14.5%
Manager 1.0%
Total 100.0%

(1) Employee workforce figures reported in this section do not include the 50% Sevel JV in EMEA or the 50% Fiat JV in APAC.

(2) There are four main categories of employees: hourly, salaried, professional and manager. Professional encompasses all individuals who perform specialized and managerial roles (including “professional” and “professional expert” under the FCA Italy classification system and “mid-level professional” and “senior professional” under the FCA US classification). Manager refers to individuals in senior management roles (including those identified as “professional masters,” “professional seniors” and “executives” under the FCA Italy classification system, and “senior managers” and above under the FCA US classification).

There were a total of 32,198 new hires during the year, of which 44% were in North America, this region experienced continued increases in production to meet consumer demand. Approximately 5,670 fixed-term contracts were converted to permanent, demonstrating the Group’s continued commitment to the long-term stability of the workforce.

Employee turnover
Employees at December 31, 2013 225,587
New Hires 32,198
Departures (27,912)
Change in scope of operations (1,183)
Employees at December 31, 2014 228,690

Management and Development

Stakeholder engagement dialogue, which was expanded to all regions worldwide in the past two years, continued to confirm that the professional development of Group employees is an issue of major importance.

Recognizing performance, facilitating professional development and ensuring equal opportunity to compete for key positions within the organization are essential elements of the Group’s commitment to its staff.

FCA uses a structured process to identify and develop talent, as well as to promote employee motivation.

The Performance and Leadership Management (PLM) process implemented worldwide is used to evaluate managers, professionals and salaried employee performance. This program facilitates setting specific objectives for individual results and professional development.

Performance and leadership mapping involves around 60,700 Group employees worldwide, including all managers and professionals, and a sub-set of salaried personnel. The Group also uses other performance evaluation processes to determine individual variable compensation.

Talent management and succession planning are also integral to the Human Resources management model, and are designed to ensure the alignment of objectives and processes across the four operating regions. In 2014, Talent Reviews were conducted for 16 different professional families, companies and functions. These Talent Reviews identified talented individuals with leadership potential who merit additional investment in their professional development.

During the year, the Group also invested around €66 million in training and skill-building initiatives, which represent another important management tool.

The Group’s extensive training programs were expanded to include new initiatives aimed at strengthening individual skills and performance by leveraging the Group’s diversity of talent, experience and cultures. The new initiatives included training and seminars designed to equip employees to operate with the same degree of effectiveness in different cultural settings. About 4.3 million hours of training were provided during the year to around 180,000 employees.

The model adopted in 2012 to evaluate benefits and potential savings from training initiatives has been consolidated as a best practice and refined. Based on the industry leading World Class Manufacturing (WCM) Cost Deployment framework, this model is called Cost Deployment of Training. With reference to the training initiatives most specific to field activities, the potential savings generated from the result of training were calculated. The application of this methodology to on-the-job-training has allowed for the generation of process efficiencies resulting from investments in employee training as well as from converting them into their corresponding economic value. The savings generated through this perimeter of training initiatives was €3.9 million on an overall cost of €1.5 million.

Diversity: Equal Opportunity and Innovation

Diversity is fundamental to the overall success of an organization. FCA is committed to ensuring a work environment where employees feel respected, valued and included. Diversity, including gender diversity, brings a wealth of perspectives and experience to the Group and significantly enhances its ability to compete and to understand customers, cultures and local communities.

During the year, the Group hired people of 65 different nationalities around the world, further enhancing the multicultural makeup of the organization and the diversity of experience and perspectives.

The percentage of female employees continued to grow, reaching 20.3% of the total workforce at year-end 2014. Women now also account for approximately 13.2% of management personnel.

The Group also continued to ensure equal opportunities for minority groups, including specific opportunities for disabled workers.

FCA’s commitment to equal opportunity and to a culture free from discrimination is formally set out in the Group Code of Conduct as well as in guidelines and procedures.

Together, the Code of Conduct and guidelines ensure uniform application of the Group’s standards worldwide, which take precedence in jurisdictions where legislation is less stringent.

Diversity within an organization is closely correlated to the ability to innovate. To help foster creativity at all levels within the organization, the Group has set a long-term goal to increase employee contribution through new initiatives and channels. As part of the World Class Manufacturing (WCM) program, for example, employees worldwide are encouraged to submit suggestions to improve production processes. Specific initiatives in each region are also designed to increase employee involvement and encourage innovative ideas through the use of non-traditional channels and forums. At the FCA US Headquarters and Technology Center, there is a dedicated Innovation Space, which serves as a genuine think tank equipped with tools and materials for idea development. In 2014, nearly 50 training and workshop activities, involving roughly 750 employees, were held in the Innovation Space. In the LATAM region, the BIS program allowed the collection of about 1,500 employee projects in 2014.

The EMEA region launched the iPropose initiative in 2012, which, similar to the BIS program, is designed to encourage employees to propose ideas to reduce cost and increase competitiveness. In 2014, an additional 3,500 employees joined the initiative. The adoption of the best suggestions, as well as the implementation of specific projects led by interfunctional teams and aimed at optimizing value of product and services (e.g. packaging, transportation).