We call our employees associates because they invest their talents in the Organization's success and share its results.

We are recognized throughout Brazil for adopting the best human talent practices; as a result, our companies are among the best places to work for in Brazil. The Group's Organizational Climate Survey conducted in 2014 indicated 83% of positive results, up 2% from 2013. Concerning the Group’s Image, positive results stood at 90%, which shows associates have a high level of trust in the Group and its executives. Our history and features are naturally conducive to dialogue; therefore, leaders and staff have daily discussions, and we have special channels of interaction, among several other communication tools:

TV Algar – This is our weekly TV show, which can be accessed through Algarnet (our intranet) on a computer, cell phone, tablet or even watched on TVs in the companies’ facilities;
Algarnet – This is a corporate portal featuring news about all Algar companies and training programs among others;
Toda Hora [All the Time] – This is real-time news about the main Company events. This bulletin is aired on TVs installed in social areas;
Mural – Bulletins with important company news are posted on bulletin boards.

Before each operational change, we draw up a communication plan so that our associates are informed in due time about both the change and its possible effects on the organizational climate. Collective bargaining agreements prescribe no minimum period for these communications.

Our Associates

Our team is formed by professionals that have features and skills in line with the Algar Group’s values and identify with the Organization's business strategies. In keeping with the People serving People Vision, we place great value on people who enjoy building relationships, take pleasure in helping others, work well in teams and have an inborn talent for innovation.

Our businesses are present in all Brazilian regions, mostly in the SOUTHEAST REGION, and in some Latin American countries (Colombia, Argentina and Chile). The number of associates rose by 15% between 2013 and 2014. At the close of the year, we had 24,251 associates, 264 of whom were executives and 23,987 were non-executives, in addition to 218 interns (143 male and 75 female). The ICT segment has the largest number of associates, accounting for 72% of the workforce. The Services segment has 16% of all associates, followed by Tourism at 9% and Agribusiness at 3%.

Associates have different working hours, mainly due to the type of service provided by the Contact Center. Of all associates, 67% work full time whereas and 33% work part time.

The ratio between male and female associates, 57% vs. 43% respectively, remained stable in relation to the previous years. In December 2014, 91 associates were on fixed-term contracts, 70% of whom in the Tourism segment and 30% in ICT.

Independent contractors perform some activities at the Algar Group as well. The numbers change due to seasonal factors. The Tourism segment has more independent contractors during long holidays and high season–July and December. In turn, the impact of seasonality is perceived by the Agribusiness segment between February and May due to the soybean crop season. In December 2014, Agribusiness had 572 independent contractors.

Collective bargaining agreements cover 99% of our associates. Executives are not covered because they have specific compensation policies.

Career Building

The Algar Group stands out for its policy to attract, retain and develop human talents. As a result, we have repeatedly gained recognition through awards granted by prominent institutions in the market. We are among Você S/A magazine’s 150 “Best Companies for You to Work” for the thirteenth time and rank first in the Services category for the second straight time. (more prizes in Awards and Recognition).

We stand out in a highly competitive market, with our committed skilled team, because we adopt a fair, merit-based compensation policy and a transparent career plan, which allow associates to envision their growth opportunities in all Algar companies.

Another key distinguishing feature is that we give priority to our associates when filling vacancies in all our companies. This shows our commitment to providing growth opportunities and career prospects for our human talents. Promotions, which have a positive effect on the organizational climate and help the Group overcome one of the greatest challenges in the industry, which is the shortage of skilled workforce on all levels.

Performance Assessments

Performance assessment, which all the Algar Group’s associates undergo at least once a year, is one of the tools to assess associates’ performances in their positions and offer associates more objective development plans. In addition to measuring individual performance, each associate’s appraisal serves as a basis for a development plan with specific targets so that he or she can achieve his or her goals. The 2014 performance assessment covered associates’ performance in 2013. The assessments of associates’ performance in 2014 will be finished in the first half of 2015.

At Algar Tech, all the associates in contact center activities are submitted to monthly performance assessments. Specific improvement actions are developed and monitored in the following month.

All Algar executives participate in the annual 360º assessment process. It covers the essential Algar skills, as well as the specific skills for each position, through an assessment done by peers, subordinates and seniors. As part of the process, leaders and teams on different levels meet to align expectations and design their development plans.

All companies’ Boards of Executive Officers conduct an annual self-assessment jointly, considering the body’s powers for current and future challenges. Assessments are discussed and result in proposals for actions and initiatives to promote collective development.

Compensation

The Algar Group’s compensation system comprises fixed and variable pay, in addition to benefits. The fixed portion consists of the base monthly salary, 13th monthly pay, vacation pay and premium pays. The variable portion is connected with targets achieved. Our standardized and clearly defined compensation policy allows transparent, fair administration for all.

We conduct salary surveys periodically and adopt the Hay methodology for jobs and salaries. This allows us to assess the responsibilities of a position and its importance for the organization in a consistent manner. The assessment process provides up-to-date information about salaries in our industry, and considers associates’ performances and information we need to raise salaries based on merit and performance. We use this standardized policy to manage the salaries of all executive and non-executive associates.

Variable compensation

The variable portion, which is rising steadily, has two components and is meant to motivate and reward all executive and non-executive associates financially. The first component is profit sharing, which is determined and paid to associates individually on a semi-annual basis in connection with the results achieved. In addition, the Company distributes a portion of its net income to all associates on a yearly basis. For the sake of consistency and balance, the variable compensation system adopts as deflators previously set annual growth, profitability (EVA®) and financial health indicators.

2014 - Turnover rate	Male	Female	Total
Agribusiness	24%	4%	28%
Service	28%	7%	35%
ICT	25%	31%	56%
Tourism	24%	22%	46%
Total	25%	26%	51%

Turnover

Our turnover rates vary greatly from operation to operation. In general, they are below the average of our different markets. This is due to our ongoing retention strategy, based on four factors: sense of belonging; prospects; appropriate compensation; and personal and professional education. Turnover is considerably low in leadership positions, but is naturally higher in operational functions. In 2014, the Algar Group’s overall average turnover stood at 51%, down two percentage points from 2013. The rate of new employee hires was 52%, a 2% drop year-over-year.

# of new hires by age group	2012		2013		2014
	Male	Female	Male	Female	Male	Female
Up to 24	1,963	2,685	2,479	3,188	2,775	3,654
Between 25 and 34	2,396	2,012	2,117	1,723	2,278	1,992
Between 35 and 50	1,110	825	913	685	976	777
Over 50	169	89	130	81	127	113
Total by Gender	5,638	5,611	5,639	5,677	6,156	6,536
Total	11,249		11,316		12,692

# of separations by age group	2012		2013		2014
	Male	Female	Male	Female	Male	Female
Up to 24	1,674	2,601	2,103	2,723	2,171	2,899
Between 25 and 34	2,448	2,629	2,080	2,038	2,499	2,128
Between 35 and 50	1,141	1,014	1,000	757	1,257	848
Over 50	206	134	172	96	220	124
Total by Gender	5,469	6,378	5,355	5,614	6,147	5,999
Total	11,847		10,969		12,146

Skills Building

UniAlgar

We opened Brazil’s first corporate university, UniAlgar, in 1998 because we consider each employee an agent of change that plays a key role in the longevity of the Group’s business. Its mission is to develop talents to boost the competitiveness of our business. UniAlgar soon became a reference in the country and received major corporate education awards.

UniAlgar also focuses on issues like disseminating the corporate culture and assessing performance, as well as managing the organizational climate, associates’ health, personal and professional development. Consequently, it serves as a catalyst for initiatives designed to promote a pleasant working environment conducive to career development.

Some of UniAlgar’s continuing education programs are intended to develop leaderships at different Company levels, a key policy for the Group’s longevity. In addition, UniAlgar has a series of programs designed to create a pool of talents able to take leadership positions in the future.

Continuing education

We invest continuously in training, continuing education and skills enhancement to keep our intellectual capital up-to-date with the latest developments and able to promptly meet the Group’s need to grow constantly.

Jointly with the companies’ Human Talent departments, UniAlgar conducts a Survey on Development Needs every year to assess associates’ skills and abilities vis-à-vis the companies’ strategic goals. The results of performance assessments conducted by immediate leaders are also taken into account. The companies also offer technical training geared to their specific operational activities.

These training programs comprise on-site courses and other tools, such as online courses, chatrooms, discussion forums, workshops, meetings, hot sites and a social network. In addition, they use practical innovative teaching methodologies, such as case studies, collaboration, practical projects, gamification (use of game design in education) among others.

In 2014, we offered 897 thousand hours of on-site training to our associates, an average of 27 training hours per male associate vs. 49 per female associates. Executives attended more training hours–76 per male executive and 83 per female executive. In addition to on-site training, we offered 195 online training courses with a total of 52 thousand hours.

		2012		2013		2014
Position		Male	Female	Male	Female	Male	Female	Total
Executives	Total hour load	12,143	3,728	16,738	5,485	15,554	5,123	20,677
	Average Hours/associate	63	70	87	88	76	83	78
Non-Executives	Total hour load	330,354	127,332	365,808	585,889	358,061	518,304	876,365
	Average Hours/associate	30	13	32	63	26	49	36
Total	Total hour load	342,497	130,960	382,546	591,374	373,615	523,427	897,042
	Average Hours/associate	30	14	33	63	27	49	36