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

We introduced the Female-Employee-Friendly Management Method in pursuit of realizing employee diversity. Considering that most of our products are targeted toward women, we actively hire female talent. As a result, the proportion of female employees in the company has been on a steady rise since 2005. We have also created a work environment where both male and female employees are considerate to each other. We prevent sexual harassment at work, conduct education programs for positive language use and behavior, and create a desirable get-together culture. Operating a day care center in the company and allowing employees to apply for maternity/parental leave without any worry helps them maintain their work-life balance and enjoy job satisfaction.

Employment of the Disabled

In October 2015, LG H&H established Bright World, a sheltered-workplace for the disabled to fulfill our corporate social responsibility and create jobs for people with disabilities. It provides the disabled with opportunities to support themselves. Founded as a subsidiary by an MOU with the Korea Employment Agency for the Disabled, Bright World manages the processing business for cosmetics packaging, a cafeteria, cleaning and welfare facilities at LG H&H’s business sites in Cheongju. The subsidiary will increase the number of employees by developing new jobs in connection with LG H&H’s products, and enhance job diversity to pursue mutual growth with employees.

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

(Unit: No. of persons)

Increase in the Number of Locally-hired Employees
Category 2014 2015 2016
Expatriate employees 24 28 30
Locally-hired Employees 1,844 1,942 2,335

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 2016

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 Quarterly Listen to voice of employees (VOE) from the representatives of the employee committees, and find issues and solutions
Beauty Consultant Committee Quarterly 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 Yearly Conduct discussions with employees led by the head of each division, and receive feedback for each agenda
Meetings of employees in charge of organizational culture Twice a month or on a constant basis Identify the atmosphere of the working field of each division, and listen to VOE