Social Contribution

The Operation of Differentiated Human Resource system

Open Employment

Since 2015, LG H&H has hired a certain portion of employees based on unique “Unconventional Talent”, which is our open employment strategy to secure the right people for LG H&H and respond to the fast-changing market trends and various needs from multiple aspects. We hope to find applicants with unique experiences and an entrepreneurial mindset, such as explorers, communicators, and entrepreneurs. In the document screening phase, we evaluate applicants based only on the essay they write about their own special stories to identify their job capacity and potential, regardless of their educational background and language skills. We make efforts to increase the fairness of the recruiting process by subdividing the requirements for each job and strictly verifying talent.

Hire Female Talent

In 2005, LG H&H introduced the female-employee-friendly management method to respect the human rights of its employees and pursue diversity within the company. In connection with the characteristics of our business, in which women are the main target customer group for cosmetics and households goods, we actively hire female employees. As a result, the ratio of female employees has been on the rise since 2005, now reaching 55% as of 2017. We also try to create a working environment where both male and female employees respect each other through various programs, including the prevention of sexual harassment at work, words and actions education, and desirable gathering practices. We are increasing the satisfaction level of female employees by operating a daycare center and enabling them to freely go on maternity/parental leave and maintain their work-life balance. Furthermore, we prevent the career interruption of female employees due to marriage and childrearing, while operating the female employee development roadmap for each job to cultivate female leaders in the long term. Thanks to these efforts, we were able to achieve re-certification of the Best Family Friendly Management granted by the Minister of Gender Equality and Family in 2017.

Employment of the Disabled

We operate Bright World, our subsidiary which is a sheltered workplace for the disabled, to fulfill our social responsibility, create jobs for the disabled, and increase their employment. At our business site in Cheongju, we expanded businesses such as a cafeteria, cleaning, and toll processing for packaging free cosmetic giveaways with a total of 57 employees with disabilities who work hard at the plant, 82.5% (47 persons) of which are severely disabled people. In 2017, we achieved 100% of the mandatory quota of employees with disabilities within only two years since our establishment, a first for the entire LG Group. We are trying to create an environment where employees can understand and get along well with each other, regardless of disabilities. To create a stable and pleasant workplace for the disabled, we operate the complaint management system and the one-to-one counseling service for all employees, while supporting managers to obtain certificates of safety/health management and supervision. We are planning to develop a training program for the capacity building of the disabled.

Fair Recruiting Process

LG H&H introduce a one-to-one intensive attitude evaluation interview to develop a fair recruiting process that evaluates an applicant’s practical competence and capacity rather than educational background. In the three-stage interview, we take enough time to evaluate each of applicants and verify their capacity that can fit each job of the company, thereby hiring employees through a challenging process. This system has been well-received by applicants because they can take sufficient time with interviewers during which they are evaluated in a fair process in a comfortable atmosphere and they can increase their awareness of the company and check how well they are matched to the job. We will continue to subdivide the requirements and capacities for each job and conduct a more challenging verification process to increase the fairness of the recruiting procedure.

Operating the Performance-Based
Fair Compensation
System

The provision of fair compensation dependent on the type of work is a most fundamental value that enables employees to concentrate on their work, motivating employees and increasing their satisfaction with the company. In this expanded system, field work leaders have discretionary power, and the system has been extended to all office and technical staff. Sales employees are also paid, depending on their capabilities and performance under this merit-based system. In this way, our company has laid the groundwork for fair compensation for performance.

HR Process Led
by Line-managers

While the HR department was in control of HR processes with an emphasis on seniority previously, our current HR system enables line-managers to take not just profit-making but also HR-centered perspectives into account in hiring, compensating and fostering talent. In so doing, we further drive ourselves to change and enhance operational flexibility.

Strenghtened Global Capabilities

Global Consolidation & Self-initiated Subsidiary Operational System

We undertook wide-ranging due diligence activities due to the acquisition of overseas companies and the creation of joint ventures while increasing the speediness of our organizational structure to contribute to quickly stabilizing our global operations. Specifically, systemic HR strategies were adopted to allow locallyhired staff with deep knowledge of their local culture and market to take the lead in operating overseas subsidiaries.

As we recognized that the previous operational system led by Korean expatriates could not effectively reflect local conditions in HR management, we actively fostered manager-level local employees to ensure an efficient division of labor between overseas subsidiaries and the Korean headquarters.

The Number of local Employees

(Regular employees, No. of persons)

Increase in the Number of Locally-hired Employees
Category 2015 2016 2017
Expatriate employees 28 30 30
Locally-hired Employees 1,942 2,335 2,649

Fostering Employees with Global Business Capability

We provide education programs to secure and reinforce the global capacity of internal employees to respond to the growth of overseas business and the expansion of strategic points. We run the Global MBA program for supporting selected employees with two-year MBA programs at prestigious colleges for the purpose of nurturing global leaders in the marketing, finance and HR departments. We also operate the local expert cultivation program by dispatching employees to China and Japan for eight months.

No.of trainees of the global education in 2017

No.of trainees of the global education in 2016 : Global MBA One employee 3, LG MBA 7 employees, Local expert program 2 employees, GEC Program 16 employees, GECC Program 16, English coaching class 62 employee

Innovate Corporate Culture for Enhanced Employee Value

Work & Life Balance

We provide five types of flexible time programs to allow employees to adjust their work schedule in consideration of their own life style. Under our flexible time system, employees may go to work between 7 a.m. and 9 a.m. and leave work between 4 p.m. and 6 p.m. at a 30-minute interval. In so doing, we promote work-life balance for our employees.

Smart Working Culture

We define Smart Work as focusing on truly serving our customers without wasting our resources on issues irrelevant to customers. Thus, we are undertaking the Smart Work campaign to make our meeting and reporting practices simple, promote work/life balance through the flexible time system and ensure horizontal communication and information sharing in an open manner.

  • Simple

    Simplify internal operations drasti-cally while identifying and responding to the needs and problems of customers
    Meeting practices
    Reporting practices
  • Balance

    Promote creative thinking through work/life balance
    Time Management
    Flexible Time
  • Open

    Generate ‘Medici Effects’ through horizontal and vertical sincere communication
    Horizontal communication
    Active collaboration & information sharing

Strengthened No. 1 Class Campaign and Idea Suggestion

We expect a higher level of behavior standards of our employees that befit our improved status as a company. Therefore, the companywide ‘No. 1 Class Campaign’ was launched to provide training on mutual care and respect for women in addition to the compliance with fair trade regulations (price-fixing, etc.).

Furthermore, Our I-3.0 initiative aims to encourage all our employees to propose their ‘bottom-up’ ideas for sustainable growth.

Community-driven Labor Relations

Active Communication with Working-level Employee

For a cooperative relationship with smooth communication between labor and management, LG H&H operates the communication channel for each department, business site and job category to receive complaints from employees, and suggest rational solutions. Thanks to these efforts, we can improve working conditions, address complaints, enhance welfare, and promote the balance between work and personal life.

Labor-Management Communication Channels
Category Operation Cycle Description
Employees Committee Bimonthly Listen to voice of employees (VOE) from the representatives of the employee committees, and find issues and solutions
Beauty Consultant Committee Monthly Listen to VOE from sales employees, and find issues and solutions
Labor- Management Committee Quarterly Conduct surveys and collect opinions related to working environment, safety and health, come up with solutions, and receive feedback
Employees Discussion Always Conduct discussions with employees led by the head of each division, and receive feedback for each agenda