Created in 2003, Electro Depot sells quality household appliances, white products, TVs and stereo systems at discount prices. It is one of the leading French discount brands to adopt a strong CSR commitment. With its employees, it has developed a policy of listening, training and sharing for all.
COM_NEOBESTPRACTICES_ITEM_INNOVATION_REV3
Translations
ELECTRO DEPOT’s participative and motivating salary policy: 95% of employees are shareholders
1. Organizational Governance
Profit sharing
Transmitter
Context
Objectives
- Motivate the teams by providing employee incentives related to the performance of the enterprise
- Share the benefits of the company’s growth with the employees
APPROACH
Electro Depot wishes to share with its employees the Knowledge, the Power, and the Benefits. In terms of sharing the benefits, it has established a system of collective remuneration.
In 2005, Electro Depot signed a profit-sharing agreement, followed in 2009 by an employee participation plan. In 2010, Electro Depot established an employee-shareholding program. Today, 95% of employees are shareholders. Each employee can thus benefit from the growth of the enterprise. Electro Depot has also developed training on business economics so that employees can understand the way businesses operate, to explain the rights and duties of each shareholder, and to provide information on the potential risks for shareholders. In this way, young employees are informed about the advantages and risks of investing for the future. The enterprise has decided to match payments made into the program by the employees and has also allowed volunteer payments to be spread out over several months in order to avoid any financial difficulty for employees. Each store elects a Shareholder Representative (SR), who acts as a contact person for information on remuneration and other subjects related to Participation and Profit-sharing. He/she is also in charge of representing the shareholders within the store. Each SR follows a training course on this role. In 2013, the average gross wage was €1.730 per month for a worker and €2.500 for an assistant manager, above the average of the field. Each employee received an average of 8% profit sharing for the year and 7% share.
In 2005, Electro Depot signed a profit-sharing agreement, followed in 2009 by an employee participation plan. In 2010, Electro Depot established an employee-shareholding program. Today, 95% of employees are shareholders. Each employee can thus benefit from the growth of the enterprise. Electro Depot has also developed training on business economics so that employees can understand the way businesses operate, to explain the rights and duties of each shareholder, and to provide information on the potential risks for shareholders. In this way, young employees are informed about the advantages and risks of investing for the future. The enterprise has decided to match payments made into the program by the employees and has also allowed volunteer payments to be spread out over several months in order to avoid any financial difficulty for employees. Each store elects a Shareholder Representative (SR), who acts as a contact person for information on remuneration and other subjects related to Participation and Profit-sharing. He/she is also in charge of representing the shareholders within the store. Each SR follows a training course on this role. In 2013, the average gross wage was €1.730 per month for a worker and €2.500 for an assistant manager, above the average of the field. Each employee received an average of 8% profit sharing for the year and 7% share.Best practice rewarded by Réseau Alliances in 2012 and updated in 2014.
CONTRIBUTION TO COMPANY PERFORMANCE
- In 2011:
- 95% of employees are shareholders, holding 10% of the capital
- The average salary is above the average for the sector
- Each employee on average receives 10% Profit-sharing for the year (equivalent to 1.3 months of salary) and 9% Participation (1.2 months of salary)
Benefits
- Motivation, Involvement and Loyalty of employees
- 100% of employees trained in principles of shareholding
- Lower employee turnover (21.2% in 2011)
- 1 Social Barometer every 2 years: 91% are proud to work at Electro Depot