Universal Registration Document Fiscal 2025

6 Risk Management

TALENT RETENTION AND DEVELOPMENT

 Risk level: high

TALENT RETENTION AND DEVELOPMENT

Risks around retaining and developing talent.

TALENT RETENTION AND DEVELOPMENT

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: medium

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.

STAFF SHORTAGES AND RECRUITMENT

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.

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: medium

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.
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FOOD, SERVICES AND WORKPLACE SAFETY

 Risk level: medium

FOOD, SERVICES AND WORKPLACE SAFETY

Consumer illness or injury caused by technical services, consumer illness caused by Foodservices, work-related Injury/illness of Sodexo employee or contractor.

FOOD, SERVICES AND WORKPLACE SAFETY

Category: Sustainability

FOOD, SERVICES AND WORKPLACE SAFETY

Impact

Ensuring the safety of Sodexo employees, consumers, clients, and contractors is fundamental.

Potential illness, injury or loss of life of consumers, clients or Sodexo employees could mean:

  • harm to personal well-being and/or health;
  • loss of client confidence in Sodexo;
  • significant lost time due to injury and illness;
  • fines and potential litigation;
  • negative impact on Company reputation;
  • enforcement action from regulatory bodies.

Risk level: medium

Examples of mitigating activities

Leadership:

  • appropriate global and regional governance, including a Group HSE Committee and regional business review forums;
  • definition of roles and responsibilities, roadmaps and local improvement plans.

Capability & Competence:

  • clearly defined competence, training and awareness requirements for each employee position;
  • development and retention of health and safety talent.

Compliance & Learning:

  • implementation of a four-step Maturity Index to monitor the safety fundamentals and target improvements;
  • deployment of mandatory global Health and Safety and Food Safety policies and standards.

Communication:

  • encouragement of open communication including authority to stop work, if the environment is unsafe;
  • timely near-miss and incident reporting and investigations;
  • issue of alerts/quick shares to communicate lessons learned.
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