Universal Registration Document - Fiscal 2024

Introduction

TALENT RETENTION AND DEVELOPMENT Risk Level: High
Risks around retaining and developing talent
Category: People
TALENT RETENTION AND DEVELOPMENT

Impact

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.
 Risk Level: High

Examples of Mitigating Activities

  • Onboarding of employees with "Operations Academy".
  • 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.
  • Succession planning at global and regional level for key roles.
  • Global engagement survey every two years, with focused action plans based on survey results.
  • People retention tracked 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.
  • Global integrated HR system, giving data insights and allowing better strategic workforce planning.
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STAFF SHORTAGES AND RECRUITMENT Risk Level: High
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
STAFF SHORTAGES AND RECRUITMENT

Impact

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.

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.
 Risk Level: High

Examples of Mitigating Activities

  • Dedicated site-based employee attraction and retention strategies launched and tracked across all regions.
  • Careful monitoring of pay and benefits to ensure competitiveness.
  • Definition and implementation of a clear employee value proposition.
  • Incorporation of employee retention into annual objectives for all staff eligible for the Group bonus plan.
  • Development of blended learning programs, both in-person and virtual, with certifications given for all training.
  • Design of competency models and career paths to help employees develop within the Company.
  • Employee referral programs.
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