Louis Vuitton 2008 Annual Report Download - page 58

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Ensuring the rich diversity of our teams
LVMH implements a large number of initiatives to make direct contact with
men and women from a variety of locations with a variety of qualifications.
As a player grounded in the world of design, LVMH set up the LVMH
Prize for Young Designers and provides active support to the Internatio-
nal Festival of the Arts and Fashion and the Hyères Photography Festival.
Group managers also maintain close ties with the French Institute of
Fashion in Paris and the Central Saint Martins College of Art & Design in
London, participating in educational and recruitment programs, and offe-
ring periodic assignments.
In order to present the opportunities offered by the Group, the LVMH
teams participated in about a hundred events, particularly on the campuses
of major prestigious schools and universities in France and abroad.
Particular attention was paid to programs offering internationally recogni-
zed MBA degrees, in Europe (IMD, London Business School, INSEAD,
HEC etc.), in the United States (Harvard, Columbia, Wharton, Stanford and
others) and increasingly in Asia (Tsinghua, Fudan, NUS, Hong Kong Univer-
sity, Waseda, Keiko, Tokyo University etc.). In addition to these encoun-
ters, the solid commitment of the LVMH group is embodied in the ESSEC
Chair luxury brand partnership and the LVMH scholarships for Asia.
To support its steady growth for the past several years, LVMH has develo-
ped targeted programs to identify and accelerate the development of its
future executives. The "FuturA" initiative, for instance, is designed to recruit
and develop employees who, after initial solid, successful experience, succeed
in expressing their entrepreneurial spirit within the LVMH group. In 2008,
LVMH attracted and selected more than 80 people for this "FuturA" initia-
tive from among thousands of very good candidates. These men and women
join the group of high-potential in-house staff who are carefully monito-
red with a expanded effort to ensure professional exposure (rapid career
progression, a wide variety of the challenges to be met, international pros-
pects etc.) and personal development (individual development plans regu-
larly reviewed at Group level, meeting with executives, training and more).
Becoming immersed in a unique culture
The steps taken to attract and select new talent are monitored with parti-
cular attention paid to the integration of new employees. In addition to
handling the position, which is assisted by the direct managers, discovery
and awareness actions are implemented.
The importance and specific nature of the culture and the unique skills of
each of the Houses are elements that are crucial to the success of LVMH.
Knowledge and assimilation of these differentiating factors are therefore
key in the integration process. As a result, the career of each new employee
begins with orientation seminars within the hiring entity. These sessions
may take very different forms depending on the business of the House
in question, and generally last several days (from traditional training to
field sales experience). After 6 to 12 months in the House, the integra-
tion of managers continues with 2 days at the level of the LVMH group.
At that time, participants are given an overview of the Group's businesses,
its values, exercises to improve understanding of the concept of "luxury",
sharing of best practices, the management policy of the HR departments,
corporate responsibility programs and more. These days also provide an
opportunity to meet and share with managers from the other Houses in
the Group. Thousands of new employees from around the world benefi-
ted from these seminars in 2008.
"Recruitment Days":
greater requirement
for professionalism
Special full-day recruitment sessions were developed in 2008
as part of the "FuturA" initiative. They are based on higher
requirements for professionalism in the evaluation and selection
methods, while offering candidates a unique experience that
gives them useful feedback for their professional development.
Not only are technical skills assessed, but also the ability to
produce and communicate results, the ability to work in a group,
the ability to have a strategic vision while knowing how to make
a daily commitment and, finally, the potential to become an
enterprising leader motivated by a desire for ongoing
improvement. Assessment of these aspects is made by LVMH
group managers through interviews as well as individual and
group role plays. At the end of this intensive day, whatever the
result, each candidate receives several in-depth analyses to
assist him or her in understanding how he or she was perceived
and the contents of the assessment.
A Job-Creating Group
Sustained development of all LVMH activities enabled multiple jobs to
be created in 2008 across the Group’s companies and brands: Wines
& Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches &
Jewelry, and Selective Retailing. LVMH has 77,087 employees world-
wide, with the average number of employees over the fiscal year up
9.5% compared to the previous year.
Through its policy of selling products with the “made in France” label,
LVMH ensures that industrial jobs are maintained in France. The
breakdown of the Group’s workforce by geographical region is stable and
balanced. 74% of the workforce is employed abroad, essentially in the
distribution networks of Europe, the Asia-Pacific region, and North and
South America.
Workforce* by business group
8% Wines & Spirits 6,438
29% Fashion & Leather Goods 22,467
22% Perfumes & Cosmetics 17,163
3% Watches & Jewelry 2,261
36% Selective Retailing 27,347
2% Other activities 1,411
Tota l 77,087
* Total workforce (regular and temporary personnel) as at December 31, 2008
Workforce* by geographic region
26% France 19,737
22% Rest of Europe 17,226
22% United States 16,723
6% Japan 4,929
19% Rest of Asia 14,831
5% Other markets 3,641
Tota l 77,087
* Total workforce (regular and temporary personnel) as at December 31, 2008
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