WE ARE MORE THAN 2,300 EMPLOYEES COMMITTED TO QUALITY

Eternit employees play a key role in the success it has attained in terms of the efficiency of its processes and day-to-day routines. Employee’s willingness to support initiatives to promote continuous improvement – suggesting alternatives, creating new mechanisms and other ways of dealing with the current situation in the Brazilian economy and in our industry – is due to the confidence conveyed by Eternit, which strives to reward and retain its talent.

Unlike other companies in the industry, which were marked during the year by high layoffs (416,000 people, according to the General Registry of the Employed and Unemployed Population – Caged), Eternit seeks alternatives, such as shortening the work week and controlling overtime, which generates a positive attitude within the organization. The effectiveness of this effort is corroborated by Eternit winning, for the fourth straight year, the award Best Companies to Work for in Brazil granted by the magazine Você S/A. SAMA was also considered, for the eighth straight year, the Best Mining Company in the survey conducted by the same magazine.

COMPENSATION AND BENEFITS

Eternit’s salaries are competitive in the industry, but, in many cases, the competitive advantage lies in the many benefits offered.

The compensation policy is based on the Hay Market Methodology, which considers the sum of all amounts paid by the Company to the employee, considering the fixed portion (base or nominal salary), the variable portion (profit sharing) and benefits applicable at all levels. The Company’s position is to ensure compensation remains within the industry median based on comparisons with peers conducted through regular salary surveys. The profit sharing program, which covers 100% of employees, is a formal tool for recognizing performance based on the results attained in relation to the targets agreed upon between the company and its employees.

Eternit employees often receive job offers from the market, but the attractive package of benefits they receive helps keep them from leaving the Company. In addition to traditional benefits, such as a health plan and private pension plan, Eternit offers incentives, such as a newborn kit for expecting fathers and mothers, a wedding gift and health and well-being actions. Meanwhile, profit sharing is based on the achievement of the general targets.

The Group also offers a complementary pension plan from a duly authorized private pension institution. Contributions are made for all employees and managers to a Free Benefit Generating Plan (PGBL).

Contributions to pay for benefits plans (R$ '000)

RECRUITING AND
RETAINING TALENT

ETERNIT GROUP EMPLOYEE TURNOVER RATE IS 13,9%
COMPARED TO 88.1% IN THE CONSTRUCTION INDUSTRY AND 21.1% IN MINING INDUSTRY

With one of the lowest employee turnover rates in the industry, of approximately 13.9% (vs. the average of 88.1% in the Construction industry and 21.1% in the Mining industry, according to the Ministry Labor and Employment), Eternit focuses on hiring the right employess, carefully analyzing candidates’ profiles and seeing if they are aligned with the Company's culture, which helps to ensure employee longevity.

Despite having an organizational structure formed by employees with long careers at the organization, Eternit takes regular “temperature readings” of productivity and complacency in specific areas. If necessary, the Company reallocates employees or hires a new professional who fits the job profile and the organization’s needs. The action aims to maintain and ensure high levels of productivity.

Another initiative is to give preference to in-house talent when a new opportunity opens at the Company. Employees are the first candidates to be evaluated and professionals from the market are hired only if there is nobody with the profile and competencies required for the job.

There is no formal repositioning policy, but, if necessary, Eternit hires a consulting firm to provide assistance. In 2015, 100% of employees who in leadership positions who left the Group were assisted by a repositioning program that was fully paid for by the Company.

RELATIONS WITH UNIONS, FREE ASSOCIATION AND COLLECTIVE BARGAINING

As in the case in all of the Group's relations, transparency and ethics are the principles guiding its interaction with trade unions. Collective bargaining agreements cover 100% of employees.

Eternit and Tégula adopt the practice of formally notifying all employees in advance through their formal communication means. At SAMA, in the case of the transfer of a professional to another unit, the employee is notified at least 30 days in advance, in accordance with the collective bargaining agreement.

EDUCATION AND COMPETENCIES DEVELOPMENT

Each employee is an agent of change of vital importance to the longevity of Eternit’s business and to the successful execution of its sustainable growth strategy. For this reason, the Company offers a training plan based on the needs required by current and future positions, as indicated by the performance assessment and the tool PLACAR (learn more in the section “Employees”). The program is updated every year and covers 100% of employees in all levels and at all the Group’s units.

Leaders can take advantage of a special program called GoLeader (learn more in the section “GoLeader”). With the program, which has been in place for three years, the Company expects to increase leaders’ capacity to communicate and improve the competencies required for delivering results. It is essential that leaders know how to divide the Group’s strategic targets among its team so that all employees, regardless of their function, know exactly what are their role and contribution to the Company’s results. In the last Organizational Climate survey, the score of leaders improved by 2 p.p., which shows program’s effective approach.

Total hours of training per employee, in 2015*

* The information does not include data from Tégula

Eternit, SAMA and Tégula conduct the Training Needs Survey to support employees in the performance of their activities. The survey is conducted annually through the Integrated Human Resources System and its purpose is to formulate a schedule for each employee of the training programs they need to effectively perform their job.

Performance assessment and career plan

At Eternit, 100% of employees participate in the performance analysis and career development process. Employees in leadership positions are assessed using 360º tools and the PLACAR tool. Meanwhile, other employees are assessed quantitatively based on the department’s goals and the performance assessment known as “Caring for My Progress.” These processes and information are controlled on an integrated basis and in digital form by the Human Resources department, together with a record of the professional’s entire career.

At SAMA, formal performance assessments are conducted once a year. Employees conduct a self-evaluation and are assessed by their immediate superior on aspects such as credibility and confidence, sharing of activities, team work, availability, commitment, flexibility and focus on activity. Leaders are evaluated using a 360º model by their immediate superior, selected peers and all subordinates on various behavioral aspects, such as communication, cooperation, ethics, favoritism, flexibility and team management. In 2015, 100% of active employees participated in performance assessments.

At SAMA, the employees themselves plan their own careers. The mining company offers complete support for this process through a computerized system that provides all possibilities for career advancement and the requirements of each position sought.

At Tégula, managers and supervisors undergo annual performance analyses, with this group corresponding to 5% of the total workforce. Of this total, 19% (4) are women and 81% (17) are men.