1. 1 OPCAREG - ARETE - ARACT European Social Fonds State of the Art Note : These results were obtained from the Human Resources Department

2. 2 Structure of Actions 1. 1. HR career intervention (long term) manAGEment 3. 3.No action : Age discrimination measures remain 2. 2.Management of final stages of career («age» criteria)

3. 3 1. 1.Actions of Human Resources Career Evolution - - Improving propositions for career growth, second career (THALES, SCHNEIDER) - - Work conversion (CHESAPEAKE) - - Regular date fixed with employees aged 45 (IBM) - - Opening pay system to avoid « block-age » for elderly employees (RENAULT) - - Fixed date for middle career employees (CREDIT LYONNAIS, AXA, RODIA) Training - - Training with tutor (MOET ‘n CHARDON) - - Training passport created for employees (THALES) - - Fixed number of training days for each employee (RENAULT) - - Opening training for elderly workers (THALES) - - Opening mobility for 50+ employees (RENAULT) - - Developing tools for tracking lifetime training (IBM) Ergonomic Measures - - Ergonomic evaluation for each workstation (RENAULT) - - Ergonomic rating system (PEUGEOT) - - Improving workstation ergonomics (MICHELIN) R Skills Assessment Requirements for Companies - Identification of required skills for the future (RENAULT, SNCF) Knowledge Management - Developing exchanges between generations (MICHELIN))

4. 4 2. Career “Sunsetting” Arrangements Preretirement Measures - Finding flexible working arrangements to stop activities while continuing to be paid by insurance system (EADS) - - Using CASA and CATS system (RENAULT) - - Using PRP system (CAISSES D’EPARGNE) - - Creation of anticipated retirement (CAISSE DES DEPOTS) - - Reduction of working time before retirement (BOIRON) - - Opportunities given to employees to capitalise time before retirement (QUELLE) 1-on-1 Coaching - Seniors with great experience advise and train younger employees ( MOET ET CHANDON, CAISSES D’EPARGNE, AIR FRANCE, ETC.) Knowledge Management - Analyse existing process / know-how and transfer them to an accessible data base (SCAO) Recruiting for New Functions - Possibility for executive to become consultant : possible audit intervention inside and outside the company (THALES, PECHINEY) - Proposition for working and transfer of know-how to SME (TOTAL)

5. 5 3. Age Situation Getting Worse Unilog Example Employees over age 56 are ineligible for future stock option grants. Moreover, skills assessment and poor performance could stop the increase of ownership.

6. 6 4. Two Observations on HR Departments 1. Executives rate their HR Department a 6,5 out of 10 A recent study of 112 executives and 200 HR Staff in 156 companies shows :  A positive perception of traditional HR functions (pay, administration)  A negative perception of value-added HR functions : skills management, career management. The main problem is HR departments are often considered a support service.  Observations : HR departments need to play a greater role in the decision making process of companies and in evolution management ; the effectiveness of HR departments depends 50% on communication, pedagogy and politics. 2. According to a CEGOS study of 303 companies, HR Departments are becoming more expensive  The general cost is increasing : funds dedicated to HR have increased from 2,88% in 2000 to 3,49% in 2002. The main factor of this evolution is the money spent in skills management, pay management (+ 40% from 2000 to 2003), and training (+ 21 % from 2000 to 2003).

7. 7 5. Two Observations on Skills Management 5. Two Observations on Skills Management 1. Skills Management appears very simple. The notion of skill is often associated with know-how but is also related to know-to-be (is the smile an important skill ?) and performance (it is possible to be more productive without being more competent!). Skills Management PerformanceProductivity Know-How Know-to-Be 2. 2. Description of Inefficiency from Peter (Laurence J. Peter) Emotional inefficiency Social inefficiency Technical inefficiency