2019 Annual financial report

Chapter 4. Corporate Social Responsibility – Non-financial performance

4.1.5.2 Individual annual appraisal

67% of employees underwent an annual appraisal (“talent review” or “performance review”). The principle of an annual internal performance review for all employees is an internal requirement and is in line with the human resources guidance set out in the Janus Code of Ethics. The advantage of the Fidello/Horizons tool is that it can be used at any time throughout the year. Other tools are also used mainly in the digital agencies, with a mindset of projects and performance monitoring carried out more frequently during the year.

4.1.5.3 Social dialog

Social dialog is included in the Janus Code of Ethics. The aim is to foster staff/management exchanges and ensure freedom of expression for employees as a basic human right. With regard to the Group’s commitment to the UN Global Compact, and its adherence to the International Labour Organization (ILO) Convention, the Group is committed to respecting freedom of association, freedom of expression, and the right to collective bargaining in the countries where it operates and within its entities. Social dialog takes place at agency level. 

The average size of the Group’s agencies worldwide is 100 employees, with the exception of a few large entities with a staff of over 1,000 people in the United States and India. Publicis Groupe remains very decentralized in 100 or so countries. The aim in each entity is to promote direct, frequent exchanges between managers and their teams regarding Company matters and current projects.

In France, where the concept of collective bargaining prevails (which does not exist in this form in other countries’ communication industries), the Group engages in social dialog on a daily basis. Group negotiations with social partners in France led to agreements applicable to all employees in France. By way of example, the Group’s collective agreement on workplace gender equality was renewed in 2019. 

It now provides, amongst other things, for financial support from the birth of a child until its third birthday, as well as for the introduction of paternity leave with full pay, for all Group employees in France. Previously signed agreements that are still in force include the agreement on healthcare costs incorporating the “responsible contract”, to which has been added an optional supplementary scheme, and the Welfare Plan. In the same spirit of collaboration with representative trade unions, discussions on teleworking and the right to disconnect led to the renewal, in 2019, of the Teleworking charter, applicable to all Group agencies in France. 

The rollout of a bicycle mileage allowance scheme, a benefit paid to employees who use a bicycle to travel between home and work, was also confirmed and introduced in some agencies in 2018 for its very positive environmental and CSR impact. 

In accordance with current legislation, the new Social and Economic Committees (CSE) replaced all former employee representations bodies. The Group continued its commitment to “Zero Tolerance” of any form of harassment or discrimination within the Group, through training and awareness-raising programs for managers and HR/Talent teams. Sexual harassment officers were appointed by CSEs. The first training sessions began in November 2019 and continued into the first quarter of 2020. Agencies have also implemented more specific measures focused on listening to employees, whether it be the Publicis Conseil “Good Ears” (Bonnes Oreilles) initiative in France where volunteer employees trained in how to listen provide this service, or Safe Conversation sessions in American agencies that are organized by members of the Talent Engagement & Inclusion Council, particularly in the aftermath of serious incidents in the United States, such as racist or homophobic attacks.

4.1.6 Compensation

4.1.6.1 Compensation and equal pay

Payroll and personnel expenses stood at 6,073 million euro in 2019. Trends are shown in Section 6.6, Note 3 of this document. The Group does not have a consolidated indicator for the compensation of all employees: due to the significant disparities between countries, an overall approach is of little relevance. 

The approach remains local, and takes industry trends into account. Compensation must comply with the following three principles: on the one hand, the preservation of competitiveness and local appeal and the avoidance of disparities within the same market and, on the other hand, operating in line with Group practices, particularly in terms of equality based on individual and collective performance to ensure fair and balanced compensation; lastly, where appropriate, the strengthening of social security provisions.

 All of the information pertaining to the compensation of Publicis Groupe senior executives is detailed in Section 3.2 of this document. The precise criteria are indicated for the different components of this compensation, including CSR criteria for members of the Management Board. The ratios between the level of compensation of the Executive corporate officers and the average employee compensation (pay ratio) are set out in Section 3.2.2.7. Publicis Groupe’s different stock option plans and free share plans are detailed in this document in Section 6.6, Note 30.