Unlock your HR talent in this revolutionary
blend of HR Strategy and Creativity!
L’Oréal - 2010
Summary
1. Overall country data
1.1. General, historical and geographical data
1.2. Demographic and sociological data
1.3. Economic data
2. L’Oréal country data
2.1. Business data
2.2. HR data
3. L’Oréal corporate data
3.1. Corporate HR data
3.2. Other data
Kiev, a city between tradition and modernity…
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1. Overall country data
3
1.1. General, historical and geographical data
UKRAINE
Country name:
Ukraine
Surface area:
603 700 km²
Population:
46.7 million inhabitants (Ukrainians : 73 % ; Russians : 22 % ;
Other - Bielorussians, Moldavians, Crimeans etc. : 5 %)
Capital:
Kiev (2.6 million inhabitants)
Main universities:
Kiev (2.6 million inhabitants), Dnipropetrovsk, (1.2 M. inhab.),
Odessa (1 M. inhab.), Donetsk (1 M. inhab.), Lviv (800 000 inhab.)
Official language:
Ukrainian (Russian remains much used in the East and South, and
is also the official language of Crimea)
Currency:
The hryvna (1 UAH = 0.144 € ou 1 € = 6.69 UAH exchange rate as
of July 1 2007)
National holiday:
August 24, Independance Day declared in 1991.
4
1.1. General, historical and geographical data
Ukraine is located in Eastern Europe and is the second largest country in
Europe after Russia.
Ukraine is bordered on the north by Russia and Belarus; on the east by
Russia on the west by Hungary, Slovakia and Poland; on the southwest by
Romania and Moldova; and on the south by the Black Sea and the Sea of
Azov.
Ukraine declared its independence in 1991 after the fall of the Soviet Union
and with this event came the need for structural economic reforms. The
transitional period of the 1990s saw changes implemented, but only partially,
and the government gave limited incentives for private sector developments.
As a result of this, GDP in 1999 had dropped to 40% of the level in 1990, and
poverty was on the increase. In addition, Ukraine experienced hyperinflation
in 1993, due to the fact that prices in 1991 had severely lowered to overcome
the problem of product shortages. It is thanks to that period that the country
holds the world record for inflation in the space of a calendar
In 1986, after the nuclear disaster at Chernobyl, 200,000 people had to be
evacuated and all agriculture came to a halt. The environment is gradually
recovering, however the most seriously affected area is still uninhabitable.
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1.2. Demographic and sociological data
Demographic growth (2007): - 0.651 %
Life expectancy (2007): average is 68.06 years (74.2 years for women, 62.2 years
for men)
Rate of literacy : 99.6 % (Ukraine has a high standard of education)
Religions : Orthodox : around 40 million ; Catholics : around 5 million ;
Protestants : around 400.000 ; Jews : between 150.000 and 200.000.
Human development index in 2006: 0.774 (77th. / 177 World ranking)
Ukrainian age structure
16%
0 – 14 years
14%
65 years and over
15 - 64 years
70%
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1.2. Demographic and sociological data
Ukrainians are generally described as welcoming, happy, and outgoing
people who are very proud of their country and culture. However, the habits
and attitudes of individuals within one culture differ and you will find a wide
range of behavior and attitudes in Ukraine; some will be compatible with your
own while others may strike you as incomprehensible.
Some people touch each other quite a bit during conversations if they are
standing. On the gesticulation scale Ukrainians are more subdued than
southern Europeans but more animated than Scandinavians. Gestures tend
to be smaller and discreet. Also, smiling is usually reserved for friends.
Gender roles in Ukraine tend to be more traditional than in the west.
Nevertheless, today many people do not fit these stereotypes, especially
among younger generations.
There are many challenges to doing business in Ukraine such as the endless
bureaucracy and high level of superstition that still remain.
Office hours are generally Monday to Friday 9am to 6pm, although
government offices usually finish earlier on Fridays.
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1.3. Economic data
GDP (Gross Domestic Product - 2008) : 140.5 billion US dollars (81.7 in 2005, 42.4 in 2002)
Growth rate : 7.3 % in 2007 (7.1 % in 2006 ; 2.6 % in 2005 ; 12 % in 2004 ; 9.4 % in 2003 ;
5.2 % in 2002)
Unemployment rate : (2007) : officially 2.3 % of the active population (more than 7 %
according to the International Labour Organisation)
Inflation rate : (2007) : 12.8 % (11.2 % in 2006, 12.3 % in 2004 ; 8.2 % in 2003 ; - 0.6 % in
2002)
Balance of trade : (excluding services) : + 3.4 billion US dollars in 2004 ; 0.6 in 2003 ; 1 in
2002
Major investors :
Total investment : 18 384 MUSD as at 1st July 2007 :
Germany with 5 503 MUSD (29.9 % of total)
Cyprus with 2 043 MUSD (11.9 %)
Austria with 1 506.3 MUSD (8.2 %)
UK with 1 435 MUSD (7.8 %)
USA with 1 322 MUSD (7.2 %)
Holland with 1 178 MUSD (6.4 %)
Russia with 907 MUSD (4.6%)
France ranks 9th with 448.8 MUSD (2.8 %).
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1.3. Economic data
Economic growth
Inflation rate
2002
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1.3. Economic data
Euro Exchange rate (Basis 100 January 2006)
10
1.3. Economic data
Foreign investment
GNP per capita
(Gross National Product per capita) :
3 000 US $
1999
2007
11
1.3. Economic data
Illustration of the cost of living in Ukraine
30-40 UAH
25-50 UAH
22.95 UAH
Local average salary : 2083 UAH per month
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2. L’Oréal country data
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2.1. Business data
Consumer profile
67% urban population
60% with university degree
39 years (average age)
250 Euro average income per month
(growing towards European level)
Mall in the Kiev area
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2.1. Business data
Cosmetic spendings (per capita, per year, Euro)
263€
84€
31€
Ukraine
Poland
France
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2.1. Business data
Exemple of a brand development : Maybelline
+45%
+170%
1.2
0.9
Market shares
0.3
2005
2006
2007
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2.1. Business data
Competition
Door-to-door competitors : AVON, ORIFLAME, MARY KAY, FABERLIC
« Traditional » competitors : P&G, UNILEVER, SCHWARZKOPF, BEIERSDORF, LVMH…
Others
Beiersdorf
Schwartzkopf
Procter&Gamble
L’Oréal
2005
2007
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2.1. Business data
History of the L’Oréal Ukraine subsidiary
ACD
PPD
CPD
Creation
of
L’Oréal
Ukraine
Active
Cosmetics
Division
Professional
Products
Division
Consumer
Products
Division
Representation
Office
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2.2. HR data
Country organisation (1)
Country
Manager
(Belgian)
(2)
CPD GM
(3)
(German)
PPD GM
(Canadian)
ACD GM
(Russian)
Financial
Director
(Russian)
Operations
Director
(French)
HR
Director
(4)
Supplementary data :
•
(1) All executive Directors are expatriates who are paid in the local currency.
•
(2) Up till now the country CEO has worked without an HR team.
•
(3) GM : General Manager
•
(4) This job did not exist in the organisation before your arrival.
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2.2. HR data
Human
Resources
Director
Secretary
Human
Resources
Manager (1)
(2)
Receptionist (3)
Receptionist (4)
(1)
Originally your HR Manager was supposed to become the HRD.
Finally, it was decided to recruit an HRD coming from an outside
country.
(2)
2 receptionists are sharing the HR team’s office but are not part of
the HR structure.
(3)
22 year old woman, University graduate who has lived in France
and speaks both French and English fluently.
(4)
27 year old woman, who only speaks Ukrainian.
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2.2. HR data
Headcount per seniority
Headcount per division
Average age
Average Group
experience
Sales
28
2
Marketing
27
2
2006
2007
CPD
34
42
PPD
28
35
ACD
0
23
Management
Comitee
37
11
Operations
14
23
Finance
28
2
Finance
9
19
Total
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3
Total
85
142
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2.2. HR data
Headcount per job
Headcount per division
Women
Men
Sales
45%
55%
Marketing
Merchandising
90%
10%
General
20%
80%
Secreterial
100%
0%
Finance
75%
25%
Total
70%
30%
2007
Sales
60
Marketing
40
Operations
23
Finance
19
Total
142
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2.2. HR data
Staff turnover
Analysis
•
With an average of 8%, L’Oréal Ukraine turnover is below the country average rate of 12 %.
•
The subsidiary turnover rate remains stable vs a market rate which progresses by +4% / year
•
High staff turnover in Marketing and Operations jobs (difficult to keep the best talents)
Languages
Analysis
•
Headquarter staff master English well.
•
Very few of the sales force speak English.
Kiev, a cosmopolitan city
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3. L’Oréal Corporate data
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3.1. Corporate HR data
Competencies required at L’Oréal
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3.1. Corporate HR data
L’Oréal IT Tools
L’Oréal HR teams in other countries use customised tools
which have not been implemented in L’Oréal Ukraine.
CAROL “Careers online” references the CV of every
member of staff worldwide.
POOL “Potential online” is used by recruiters to
centralise, manage and follow-up online applications for
jobs and internships.
UNITY is an online tool for managing training plans.
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3.1. Corporate HR data
Business Games
A complete international business games portfolio to promote L’Oréal and attract talents.
General
Business Game
Marketing Game
R&D Game
Industry Game
E-strat
Brandstorm
Innovation Lab
Ingenius
Started 2000
Started 1993
Started 2007
Started 2001
126 Countries
38 Countries
15 recr. 2007
11 Countries
Since 2000 : 283 recr.
131 recr. 2006/7
18 recr. 2006/7
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3.1. Corporate HR data
L’Oréal’s Code of Business Ethics
This Code of Business Ethics
has to be given to every
newcomer in the company. It’s
your job to ensure that this is
done
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3.1. Corporate HR data
L’Oréal FIT (Follow-up and Integration Track)
L’Oréal FIT is our integration program for newcomers. It
provides 2 years of personalized guidance and training to
promote successful integration for those new to L’Oréal. The
L’Oréal FIT program provides 6 complementary learning
opportunities to help newcomers understand the L’Oréal
culture and our business.
There are 5 key players
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3.1. Corporate HR data
Training
At L’Oréal, the training offer is
sorted into three fields :
Vision & Culture
FIELDS
Management and
Personal Development
Professional Expertise
L’Oréal has implemented 4
management levels known as
Steps, each step corresponds to
a specific level of management
experience and expertise.
Must
Haves
are
training
programs that each employee
follows when taking on a new
role. They help employees
acquire
the
fundamental
expertise needed for their new
job.
STEPS
Identity for everything that concerns Training at L’Oréal
MUST
HAVE
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3.1. Corporate HR data
MAP
MAP (Managing and Appraising Performance) is
L’Oréal’s new worldwide appraisal system.
It is not rolled out in Ukraine yet and one of your
missions is to implement Map
Map aims to appraise and develop the competencies and performance of all
staff. It is based on
• Clear annual objectives
• Evaluation based on 4 criteria
• Mastery of mission and key job accountabilities (KJA defined in job
guidelines)
1. Achievement of Individual business objectives
2. Achievement of Human leadership objectives (if team leader)
• Competencies (General and Professional / Technical)
It links compensation decisions to performance appraisal
It offers 2 annual reviews, the Year-end review (YER) and the Mid-year review
(MYR) to further the ongoing dialogue between employee & managers which is key
to improving performance
It is totally integrated into the overall L'Oréal Human Resources strategy
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3.2. Other data
Head hunters and recruitment agencies
The price of a recruitment is about 25% of the first annual salary whether
recruited by agencies or headhunters.
Billing :
• Headhunters require a third of the fees upon signature of an agreement
between L’Oréal and the headhunter. Another third upon delivery of a list of
potential candidates. Final third upon recruitment of the chosen candidate.
• Recruitment agencies require the integrality of the fees upon recruitment of
the chosen candidate.
It should be noted that the headhunter works exclusively for you and has access to
potential candidates who may not be actively looking for a job change. On the other
hand, recruitment agencies have an extensive file of potential candidates but they
are not exclusively working for you and may be working simultaneously for your
competitors.
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3.2. Other data
Remuneration studies
L’Oréal works with an international consulting company
to assist the Group in analysing the effectiveness of their
Human Resources programs and policies.
This consultant is offering L’Oréal Ukraine its expertise in
the fields of compensation and employee benefits.
If you require their expert opinion on the salary levels of
your staff compared to similar jobs in other companies in
the Ukraine, this will cost you 2 000 euros per job
studied.
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3.2. Other data
Labour law and health insurance in Ukraine
Labour issues in Ukraine are governed primarily by the Labour Code of Ukraine (“Labour Code”).
The Labour Code, being based on the old Soviet labour code, is slanted heavily in favour of
workers’ rights and protections.
In the context of termination of employment, the Labour Code permits termination only in specific
and limited circumstances (persistent non-performance, absence from work, drunkeness…).
An employee may be hired for an initial trial or probationary period that generally should not exceed
three months. The standard probationary period is one month for “labourers,” three months for other
employees. During this trial period, employment can be terminated without prior notice if the
employee proves unfit for the job.
Under Ukrainian currency regulations, salary payments made by employers to Ukrainian residents
are permitted only in local currency, the Ukrainian Hryvnia. In practice, salaries are often indexed
against a foreign currency to protect against the risk of currency devaluation. By law, a salary
should be paid twice per month with the period between payments not exceeding 16 calendar days.
The Labour Code currently recognizes 10 national (paid) holidays. In addition to national holidays,
employees are entitled to at least 24 calendar days of paid vacation each year.
Employees are also entitled to paid sick leave; however an employer may terminate an employee’s
contract if he or she takes more than four consecutive months’ sick leave.
Source : Volodymyr Monastyrskyy, Partner, Employment/Corporate/Real Estate Salans, Kiev.
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3.2. Other data
Great company to work in
Great
company to
L’Oréal wants to be one of the best
companies to work in. You need to
keep this in mind when you take on
your job.
work in
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3.2. Other data
Catering facilities
The headquarters at Kiev does not have a staff canteen. However, staff can use
fridges and microwaves situated in a common area.
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MERCI
THANK YOU
ДЯКУЮ
СПАСИБО
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