To steer the crucial phases of integration and development of human resources, Pirelli applies an extensive policy system both at Group and Sector/foreign affiliate company level.

Salary Review policies are applied locally by individual countries except for procedures involving Group Executives and key resources involved in international mobility schemes, as these categories are centrally coordinated by the Group Parent Company according to a common rationale and respecting the requirements of an international Management team. In 2007, the use of the Development Centre coordinated by the Group Parent Company and focused on objectively assessing the potential of individual candidates for the assignment process of new executives became firmly established.

This is also closely linked to the policies relating to performance assessment and improvement. In 2007, a new tool was launched at Group level, aimed at increasing the transparency of supervisor - worker relations and to further clarify the targets and roles of the company staff. The new system, available on-line in many countries, involves all the Group’s staff, cadres and executives.

All executives and 60% of cadres take part in the Group annual incentive scheme (MBO – Management by Objectives), which sets clear Group/Business/Country and individual economic-financial targets, and pays out bonuses varying according to assessment and the extent to which these targets are achieved. This process, which is managed centrally according to a common set of rules for the whole Group, is accompanied by other schemes implemented by the individual Affiliates.

The “International Mobility Policy”, of considerable strategic value in the development of leadership within the Business, deserves special attention. Over the past ten years, an average of around 250 people, including executives, cadres and staff of various nationalities and cultures, have yearly compared notes, developed professional skills and exploited new managerial opportunities, thus contributing to building a truly international Group.
Many aspects of the global labour market have demanded a more flexible approach to the international framework that can readily meet both the requirements of the organisation and its individuals. The current Policy provides flexible responses to requests/demands that were once perceived as an obstacle to international mobility, i.e. dual careers (considering the partner’s work-related/personal needs), family requirements, different schooling systems, etc.

Also worth noting is the emergence of the phenomenon of short-term assignments (involving a short term stay abroad of less than six months) as a tool to provide qualified technical support and know-how to affiliates in the start-up phase (6% of the total number of personnel transferred abroad in 2007, set to increase to 10% in 2008).

Lastly, international mobility, perceived as a real development opportunity, is also an instrument of support for the Group’s Equal Opportunities project. At the close of 2007, the percentage of women out of the total number of personnel transferred abroad was around 15% (in line with 2006). A figure that, also thanks to the greater flexibility being adopted, should increase in the coming years.