Ubisoft 2006 Annual Report Download - page 52

UBISOFT • FINANCIAL REPORT 2007
1.4.2.2 International growth
opportunities
Each employee is assessed at least once a year by his or her
manager, and this annual meeting is an opportunity to
review, together with the HR manager, potential areas for
development.
In addition to mobility across departments and promotions
on-site, there are many international career paths:
in FY 2006/2007, there were 181 international transfers,
the countries receiving the most expatriates are France,
China and Canada,
there are currently 117 expatriates working around the
world.
1.4.2.3 Compensation that seeks to
recognize performance and
commitment
Ubisoft has introduced a bonus policy that reflects its des-
ire to reward individual and group performance:
the production teams receive a bonus that is based on the
game’s profitability and the employee’s individual
contribution,
the business teams receive a bonus that is calculated
according to their attainment of quantifiable results
established at the beginning of the year.
Employee stock ownership plans are also an excellent way
for all Ubisoft employees to enjoy a share of the company’s
success. Share capital increases reserved for employees
were carried out in France – a regular occurrence since
2001 – and in the USA in September 2006. The Board of
Directors has scheduled a share capital increase reserved
for Canadian employees by the end of July 2007. Indirect
employee shareholding via a company mutual fund (FCPE)
today represents 0.924% of capital and, in light of infor-
mation known as of March 31, 2007, the total registered
shares owned by Ubisoft employees are estimated to com-
prise less than 1% of capital.
Finally, stock options are granted on a discretionary basis
to employees who have regularly out- performed against
their targets. At March 31, 2007, all plans combined,
nearly 15% of the group’s employees had received stock
options.
Skills development:
a priority
1.4.3.1 Ubisoft has opted for
in-house production
Despite an increasingly competitive market, Ubisoft has
actively pursued its internal growth strategy: 493
employees joined the group during the year, an increase of
nearly 15%. Most recruitment took place in Quebec,
Romania, France and China, where Ubisoft is the largest
employer in the video game sector.
Ubisoft has the second largest in-house design team in the
industry. The international and strategic placement of its
15 production sites enables it to build talented teams by
attracting the most qualified people from around the
world.
To support this growth, Ubisoft acquired the Reflections
Interactive Ltd studio in the UK and opened a studio in
Bulgaria. At March 31, 2007, these studios employed 73
and 35 people, respectively.
In Montreal, Ubisoft also relies on “the Campus” created
in May 2005, at which young recruits are trained in video
game disciplines. Of the first class of 69 students trained
at the campus, 39 graduates have joined the group. More
than 600 candidates applied for the second graduating
class that includes 116 students who had the opportunity
this year to enroll in a new Game Design curriculum.
This past year, the group opted to consolidate its US deve-
lopment teams at the Red Storm Entertainment Inc. studio
in North Carolina by closing Wolfpack Studios Inc. in
Austin, Texas.
Ubisoft occasionally uses freelancers (particularly for
artistic services), intermittent workers and temporary
employees.
In some countries, auxiliary services (e.g. security, clea-
ning, and IT maintenance) are provided by outside compa-
nies.
1.4.3.2 An innovative training
program adapted to employees’
needs
In a sector where innovation and technical expertise are
necessary to continuously maintain a technological advan-
tage, it is only natural that training is a very high HR prio-
rity.
The training programs that took place in FY 2006/2007
were characterized as follows:
9,730 days of training were offered by the group, which
represents an annual average of 2.5 days per employee,
a large part of these training programs (47%) focused on
technical skills required for production activities and
31% on language instruction (French and English),
the budget allocated to training during the period (exclu-
ding salaries) was €1,405,551.
The aim is to empower employees and to give them the
means to play an active role in their own development.
Thus, various local programs are structured in a way that
gives teams a certain degree of flexibility, such as in choo-
sing training topics.
In Montreal, for example, employees enroll online and
have year-round access to the course list and schedule by
job. They also have online access to training materials.
1.4.3.3 Continuous emulation
thanks to dialogue among the
group’s experts
The group makes every effort to create an environment
that allows and encourages its teams to share their exper-
tise to best advantage:
new employee integration and sponsorship programs
exist at most of the large subsidiaries;
1.4.3