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Human resource management, development and motivation

As at December 31, 2016, the total workforce of the Enel Group numbered 62,080 employees, 51% of whom in companies in Italy and 49% located abroad.

The net decrease of 5,800 employees during the year was due mainly to the deconsolidation of Slovenské elektrárne. Of the total of 3,360 new hires, 34% were in Italy while the remaining 66% were distributed among the various countries abroad.

In 2016, the organizational model was updated to reflect the merger of the Global Lines of Upstream Gas and Trading, the merger of Enel Green Power within the organizational matrix of the Group with the creation of the Renewable Energy Global Line and the transfer of management of the major hydroelectric plants from the Power Generation Global Line (which has thereby been renamed Thermal Power Generation) to the Renewable Energy Global Line and the creation of the two new regions of North & Central America and Sub-Saharan Africa & Asia in order to ensure the effective organizational coverage of these constantly evolving geographic areas.

In 2016, the “Open Power“ model of values and conduct for everyone who works for Enel was applied to various aspects of operations in order to increase involvement and the ability of senior management to convey news related to this new strategy so that people can better understand how they can make a contribution. This model acts as a point of reference both in the new recruiting process and in the performance appraisal process. With regard to the new recruiting process, which involved all countries within the scope of Enel’s operations, Recruitment Days were organized for recent university graduates in Italy, Spain, Brazil, Romania, Chile, Colombia and Peru. This is an innovative approach both for the candidates and for the people within the various areas of business, who had the opportunity to assess the technical skills, conduct, ability to interact and, above all, the culture fit of future employees.

In 2016, we launched the new process of evaluating performance in both qualitative and quantitative terms. Qualitative performance appraisal is a four-stage process: self-assessment and appraisal, the two stages in which the employee 156 Annual Report 2016 and the reviewer assign scores for the 10 aspects of the appraisal model; calibration of the scores provided and feedback, in which the employee and his or her supervisor meet to discuss the appraisal and determine the consequent development efforts for the following year. This year, we also introduced reverse feedback, whereby feedback becomes reciprocal and the feedback meeting becomes an opportunity of sharing in order to improve the performance of both the employee and the reviewer, while also strengthening the relationship of trust and mutual support.

The global campaign reached 100% of the people reachable and 99% of the total was appraised. Feedback was provided by 87% of the total.
Quantitative appraisals, in turn, were conducted for employees with variable salary components, which involved the assignment of targets and the assessment of those targets.

In line with 2015, and in order to identify the talent best suited to filling positions of particular strategic interest, the Succession Plan was also executed during the year.
The main challenge in 2016 was the selection of successors who are ready in the short term and those who are in the pipeline, i.e. ready over the longer term, to fill all of the Group’s management positions, with particular emphasis being placed on young people, on women and on taking advantage of international and cross-functional experience.
For these successors, individual development projects were defined both based on their specific personal and professional profiles and in relation to the positions for which they have been selected.

The Climate and Safety survey was another important moment of discussion and interaction. Compared with previous editions, the survey involved people right from the preliminary stages in order to determine priorities and define the questionnaire together.

Some 60,000 people were invited to respond to the survey, and this represents 100% of reachable employees. Of these, 84% took the opportunity to express their opinion and 54% of these contributed suggestions in response to the open-ended question.

The results of the survey paint a positive picture overall, with 75% of all employees feeling engaged, 79% believing in company goals and 85% saying that Enel is a good place in which to work.

Diversity and inclusion

Enel’s commitment to promoting diversity in all its forms – in terms of gender, age, culture and ability – continued in 2016. Thomson Reuters has included Enel among the 100 top companies in the world in terms of diversity and inclusion in the workplace.

More specifically, Enel is the first of the five Italian organizations included in the top 100 and is one of only two electrical utility firms in the top 50.

Inclusion in this index testifies to how equal opportunities, inclusion and non-discrimination underlie a business strategy centered around innovation and sustainability. In 2016 in particular, in implementation of the Group’s policies of diversity and inclusion, a group diversity manager was appointed and work is underway to select diversity managers in the various countries. We have also defined specific indicators to help monitor progress made in the various actions begin undertaken.

Labor relations

Enel complies with the labor laws of the various countries in which we operate and with the International Labor Organization (ILO) conventions on labor rights (freedom of association and of collective bargaining, consultation, the right to strike, etc.), while systematically promoting dialog between the parties and seeking an adequate level of agreement on and participation in company strategies by employees.

Labor relations efforts at the Group level continue to be conducted in accordance with the model established under Enel’s Global Framework Agreement (GFA) signed in Rome in 2013 with the Italian federations and with the global federations IndustriAll and Public Services International. This agreement is based on the principles of human rights, of labor rights and of the best, most advanced systems of transnational labor relations for multinational corporations and international organizations, including the ILO.