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Sustainable development

Employees well-being

“To make beautiful things, in beautiful surroundings.”

Jean-Louis Dumas, Executive Chairman of Hermès from 1978 to 2006

Ambition

For six generations, people have been at the heart of the Hermès business model and the company’s activity. Hermès has extremely high standards when it comes to the quality of its working conditions. High-quality working conditions are essential to ensure employees continue to develop their skills and full potential, and to give meaning to their work. It is not only a question of health and safety but of implementing best managerial practices and creating working environments conducive to the well-being of every individual (on production sites, in shops and in offices).

Organisation

The Executive Committee supervises the actions carried out for the benefit of Hermès employees, with the support of the group human resources department as well as subsidiary human resources departments worldwide and the internal communications department. In France, social dialogue is managed by a Group Committee and a Social Dialogue Monitoring Commission. Each entity supervises operational actions at its level, through Committees for Health, Safety and Working Conditions  and Social and Economic Works Committees. A group Ethics Committee has been set up to provide advice and recommendations on the group’s culture and ethical practices and to collate and handle any alerts (H-Alert).

Objectives

The well-being of its employees is a priority in the company’s operational strategy. In order to create sustainable and meaningful jobs, the group has made commitments concerning:

Health, safety and well-being at work

A policy has been put in place to prevent accidents at work, occupational diseases and musculoskeletal disorders. Another policy aims to keep people in work in the case of such problems.

Working hours

Managed by each entity in compliance with the regulations in force and according to the particularities of its activity, working hours take into account a desire to respect the balance between personal and professional life, in particular through the implementation of flexible working hours in the French entities.

The health crisis has greatly increased the use of teleworking. Given that 84% of the workforce are craftspeople and sales associates, the challenges of teleworking have been less significant than in other industries.

On July 2023, Hermès signed a group agreement on work-life balance with all the representative trade union organisations at the group level, in order to support employees with personal circumstances that impact their daily life in the workplace: caregivers, parents or people experiencing events that can make them more vulnerable.  

More particularly for caregivers, Hermès offers support adapted to the different situations by providing an information and assistance platform, by offering them flexibility in the organization of their working time and by offering financial support in the most soliciting circumstances.

Social dialogue

Hermès continually strives to implement and guarantee high-quality social dialogue and freedom of expression for its employees. Harmonious labour relations are strengthened in France by the group agreement on social dialogue and the exercise of trade union rights, which is regularly made use of both locally and centrally.

Remuneration

Remuneration at Hermès consists of different individual and collective remuneration tools. In addition to fixed salaries, individual and collective bonuses and paid holidays, the group has introduced performance-related and profit-sharing schemes, depending on the country. A long-term initiative is the employee share ownership plans that have been allocated to all group employees worldwide.

Social benefits

Remuneration is supplemented by health insurance and welfare schemes, including voluntary social security cover to complement the mandatory legal schemes, implemented as soon as possible and in line with local market practices; a comprehensive maternity policy, which includes full retention of basic pay for a minimum of 16 weeks’ leave and 100% coverage of maternity-related health costs; and a supplementary defined-contribution pension scheme for all eligible employees in France.

Management system

Within the framework of the regulations in force, the group human resources department implements management procedures and coordinates the action of the human resources departments in the subsidiaries and entities. The Hermèsphère intranet helps to strengthen internal communication.

For industrial operations, the Health, Safety and Environment (HSE) network, which is made up of some twenty employees, meets several times a year to set objectives, share results and learn from the best practices of each of the métiers. Activities are supervised by a specialised external firm which carries out HSE compliance audits in the different units, spread over three years. An information system makes it possible to monitor and check compliance and to evaluate the safety culture of each site, thus covering the entire industrial activity of the company.

Results 2023

A French artisanal model

  • 62%

    of employees in France

  • 74%

    of objects are produced in France

  • 55%

    of objects are produced in-house or in exclusive workshops

Workforce growth over the past 10 years



The group’s economic performance has been accompanied by continuous job creation. With the workforce having doubled over the past 10 years, the group’s total workforce is 22,037 people as of 2023.


Job creation

  • 5,400

    new employees in the group over the past three years

  • 3,300

    new employees in France over the past three years

  • 1,4%

    of apprentices in the workforce (excluding craftsmen in training)

  • 48%

    of employees have been with the company for less than 5 years

Importance of craftspeople at the house

  • 48%

    of the total workforce is dedicated to production

  • 7,025

    craftspeople in the house

Employee satisfaction rate

Employee satisfaction rate
Proportion of group employees who work full-time95%
Turnover (total number of dismissals/average group workforce)1.53%
Group absenteism4.02%
 
  • Top 10

    in the Diversity Leader ranking of the Financial Times

Health and safety

Health and safety
 GroupFranceInternational only
Severity rate of workplace accidents where sick leave was required0.33%0.51%*0.08%
Frequency rate of workplace accidents where sick leave was required8.00%11.04%*3.79%
* These higher figures should be seen in the light of the fact that the majority of production is in France (76% of the manufacturing sites are located in France), a country where the regulations governing the various types of accident and their reporting are stricter and more exhaustive than elsewhere.

Remuneration

 

True to its commitment as a responsible employer, in February 2023 Hermès paid all Group employees an €4,000 exceptional bonus. 

  • Free share plan

    The 6th free share plan announced in June will enable all employees worldwide to become shareholders.

Collective agreements and social dialogue

 Number of collective agreements in France in 2022
Compensation57
Working conditions9
CSR/ QWL8
Social dialogue14
Total 88

 

Employees well-being

  • 73%

    of employees have participated in a well-being survey since 2018

An inspiring initiative

A programme to combat musculoskeletal disorders

A programme to combat musculoskeletal disorders (MSDs) has been rolled out on all sites in the leather goods division. In particular, it involves:

  • installing electrically adjustable workbenches to adapt to different morphologies and motions (20% of workstations already equipped) ;
  • analysing, with biomechanics and physiotherapists, the biomechanical impact of motions (using multisensory sensors and 3D modelling) in order to reduce physical stress ;
  • implementing tools for realigning the shoulder to prevent upper limb disorders ;
  • and training local managers and “ergo relays” within leather goods for the roll-out of training and good practices (2,900 craftspeople have taken an ergo-motricity training module: “A Body for Life”).

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Discover how employee's well-being takes part in our strategy "All artisans of our sustainable development".

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