Universal Registration Document - Fiscal 2023

6. Risk management

TALENT RETENTION AND DEVELOPMENT
An inability to retain and develop the right talent
Category : People
Impact Examples of Mitigating Activities

Sodexo is a company of people serving people. Growing, engaging and retaining our people is central to our strategic objectives and our ability to grow.

A lack of attention to employee engagement, retention and development could lead to:

  • a decrease in service quality jeopardizing client satisfaction and retention, and therefore long-term profitable growth;
  • loss of talented employees to other companies.
  • Targeted training programs to grow and develop Sodexo employees.
  • Performance management and reward framework to help retain, develop and motivate people.
  • Enhanced benefits program, Vita by Sodexo, for all employees.
  • Dedicated talent managers by region and quarterly talent reviews to promote internal mobility.
  • Succession planning by region for key roles.
  • Global engagement survey every two years, with focused action plans based on survey results.
  • Empathetic and Collective Leadership Program – supporting managers to engage authentically with their people.
  • People retention tracked and monitored as a global KPI and included in bonus plans.
  • Sodexo Supports Me: Employee Assistance Program that provides counseling and support to help employees across the world meet the challenges of everyday life, both at work and outside.
STAFF SHORTAGES AND RECRUITMENT
Staff shortages due to significant pressure on the labor market and non-availability of required skills resulting in possible inability to meet client needs in terms of both workforce and know-how
Category : People
Impact Examples of Mitigating Activities
On a global scale, Sodexo’s ability to recruit enough employees is influenced by:
  • perceived attractiveness of the jobs available;
  • the availability of the required skills (e.g. chefs);
  • competition with other sectors for the same pool of people.

Post-pandemic, there is still intense competition to recruit staff across the Foodservices, hospitality and events sectors, resulting in a global staff shortage in the short-term. An inability to recruit enough staff or to recruit staff with the right skill set could result in client contracts not being served properly. This could lead to:

  • client dissatisfaction;
  • possible contractual penalties;
  • lower revenue and reduced profitability on-site.
  • Dedicated site-based employee attraction and retention strategies launched and tracked across all regions.
  • Careful monitoring of pay and benefits to ensure competitiveness.
  • Development and activation of a clear global employee value proposition.
  • Incorporation of employee retention into annual objectives for all staff eligible for the Group bonus plan.
  • Development of blended learning programs to incorporate both in person and virtual training opportunities; certifications given for all training.
  • Design of competency models and career paths to help employees develop within the Company.
  • Employee referral programs.