CORPORATE RESPONSIBILITY Collective procedures three months after hiring) was 92.7% in 2017 (90.9% In 2017, 268 employees within the Rexel Group were in 2016). made redundant compared to 447 in 2016. The medium-term rate of integration (defined as the The scale of restructuring was largest in the United percentage of new hires in the Rexel Group one year States, Canada and the United Kingdom. after hiring) was 82.1% in 2017 (77.6% in 2016). Alternatives to layoffs were implemented, such as Breakdown of permanent employees by seniority internal and/or external redeployment solutions, in At December 31, 2017, the average seniority of particular in Australia and the United Kingdom. permanent employees of the Rexel Group was These measures made it possible to limit in part the 11.3 years. number of departures. Europe Furthermore, and wherever possible, restructurings were discussed with employee representatives so as North America to provide the employees concerned with support Asia-Pacific measures, in particular outplacement, training and Rexel Group financial compensation. 0% 20% 40% 60% 80% 100% No. of employees with tenure of less than 2 years Employee turnover No. of employees with tenure of 2 to 6 years No. of employees with tenure of 6 to 15 years The employee turnover rate is defined as the average No. of employees with tenure of over 15 years of the entry and departure rates: 4 •The entry rate is defined as the number of new Traditional ly, seniority varies strongly by region: permanent employees divided by the total number employee turnover is much higher in Asia-Pacific, of permanent employees; where 69.1% of permanent employees have tenure The departure rate is defined as the number of of less than 6 years, whereas 32.8% of permanent • permanent employees who have left divided by employees in Europe have seniority of over 15 years. the total number of permanent employees. In 2017, the entry rate within the Rexel Group was 4.3.3 Attractiveness of the Company 16.2%. for employees In 2017, the departure rate within the Rexel Group 4.3.3.1 Compensation was 16.3%. Compensation policy Thus, the staff turnover rate of the Rexel Group for The Group’s compensation pol icy is based 2017 was 16.3%. on the company’s performance and earnings. Employee turnover rate of the Rexel Group Compensation levels are defined for each country in at December 31 line with the twin requirements: competitiveness of proposes compensation and internal equality. Of the 2017 2016 Rexel Group’s permanent employees, 57.7% were Staff turnover rate 16.3% 14.1% eligible for individual performance-related pay. Most of these employees held marketing and managerial The employee turnover rate of the Rexel Group positions. increased in 2017. Of the Rexel Group’s employees, 55.9% belonged Aware of the significance of employee turnover, to a profit-sharing plan calculated on the basis of the Rexel Group examines employees’ motives for Group earnings. leaving and variations in the rate of integration of new hires. Most Group subsidiaries arrange exit In total, payroll expenses amounted to €1.642,7 million interviews with departing employees in order to in 2017 (€1,609.5 million in 2016). understand why they are leaving. Employee shareholding 4.3.2.3 Staff retention capacity At the time of the Rexel Group’s l isting on the Paris stock exchange in 2007, 18.33% of el igible Rate of integration employees took the opportunity of acquiring shares The rate of integration of new employees (defined in the Company as part of a reserved preferential as the percentage of new hires in the Rexel Group share offering. REXEL 2017 – REGISTRATION DOCUMENT 167