Social Contribution

The Operation of Differentiated Human Resource system

Securing global diversity

LG H&H is actively expanding its overseas business in China, Japan, and the Americas based on its experience and know-how in the domestic market, laying the foundation to grow into a global luxury FMCG company. In particular, we have made various efforts to recruit global talents with an understanding of local culture and communication skills to expand the global market and develop online businesses targeting Generation MZ.
Since September 2020, we have operated a global internship program for students from leading universities around the world to share various market insights from the perspective of Gen-Z, establish brand-specific strategies to increase global customers, and engage in idea-gathering and business planning processes to envision our global business. Furthermore, we also support various talent development programs to ensure that those who experience our business through global internships have the opportunity to join our company after graduation and grow into talented individuals who lead our business in the long run.

Leveraging capable female talent

여성임직원 비율 54.1% LG생활건강 별도 기준 Rate of female employees 54.1% *Non-consolidated

LG H&H is actively recruiting female talents with strong sensitivity to the characteristics of the consumer goods industry, including cosmetics, household products, and beverages. As of the end of 2022, women accounted for 54.1% of our workforce. In addition, we have recruited talented female workers and appointed women with global capabilities and expertise as executives. In particular, in March 2022, we appointed female outside directors; in December 2022, we selected the first female CEO in LG Group.
As such, LG H&H is actively securing, nurturing, and promoting talented women and focusing on internalizing our internal culture and systems to ensure no discrimination in hiring, wages, training, and promotions due to gender differences. By steadily supplementing related systems, such as expanding parental leave, we support employees to build their careers without interrupting them after marriage, pregnancy, and childbirth, and we will continue to nurture talented women.

Promoting employment for the socially disadvantaged

LG H&H does not tolerate any discrimination based on gender, religion, political views, disability, race, etc., in accordance with International Labor Organization conventions and domestic and international labor laws. Since 2015, we have established and operated ‘Bright Nuri’, a standardized workplace for disabled people, and as of the end of 2022, 65 out of 93 total workers at ‘Bright Nuri’ are disabled, of which 53 are severely disabled.
LG H&H also participated in a job fair organized by the Chungcheongbukdo Office of Education to provide on-the-job training opportunities such as product packaging and conducted mock interviews to help people with developmental disabilities prepare for employment. Furthermore, we signed a business agreement with the Korea Employment Agency for the Disabled to operate a cosmetics packaging experience booth for Bright Nuri at the Chungcheongbuk-do Training Center for the Developmentally Disabled to continue contributing to the activation of employment for disabled people. In recognition of these contributions, on April 14, 2022, Kim Ki-seop, CEO of Bright Nuri, received the Prime Minister’s Commendation Award. In July 2021, our subsidiary Coca-Cola Beverages and the Korea Employment Service for the Disabled signed an agreement to establish ‘Gowonnuri’ as a standardized workplace for people with disabilities. As of the end of 2022, 10 out of 12 workers at ‘Gowonnuri’ are people with severe disabilities and work in the cafeteria and cafes at the Anyang and Gwanghwamun sites.

Fair Recruiting Process

LG H&H introduced the 1 :1 in-depth interview to establish a fair recruitment process based on applicants’ ability and competency. LG H&H selects talents through three in-depth interviews, taking sufficient time to evaluate individual applicants and specifically verifying competencies that fit the characteristics of each job.
Evaluation is conducted in a comfortable atmosphere where the applicant and the interviewer communicate one-onone, the applicant can improve their understanding of the company, and the interviewer can check the applicant’s suitability for the job. We also work hard to improve the interviewer’s competency by providing regular training on precautions and evaluation errors by type. As such, LG H&H constantly strive to improve the fairness of the hiring process by subdividing the requirements and competencies that fit the characteristics of each job and going through a human resource verification process that suits them.

Employee Performance
Evaluation and Compensation

In establishing business strategies to realize corporate vision and values, LG H&H seeks to align individual goals with organizational goals and ultimately grow the company and its employees through goal achievement. To this end, we have established the basic principles of 1) fair and objective evaluation operation, 2) securing consistency between organizational and employee evaluations, and 3) evaluation operation from the talent development perspective.
We currently conduct annual performance evaluations for all whitecollar employees, divided into the first and second halves of the year, based on management by objectives(MBO), annual competency reviews and comprehensive evaluations. We also evaluate team leaders and above on their leadership/development of subordinates, etc., by adding multi-faceted assessment. The results of these evaluations are reflected in annual salary increases, promotions, and training to ensure that compensation policies are based on 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.

Nurturing global talents and DX experts

글로벌 사업역량을 갖춘 임직원 육성 이미지

LG H&H offers various training programs to secure competitiveness and grow in the global market. Among them, the Global Expertise Course (GEC) is a mini-MBA course in English that enables participants to develop global business and language skills through learning about the company’s business and target markets. In addition, we foster experts in overseas regions through the Global MBA course and the Overseas Short-term Training Program and help them improve their language skills, which are essential for overseas business, through one-on-one English training with foreign coaches and Chinese/Japanese business conversation courses. We also provide opportunities for employees to develop the competencies needed to conduct overseas business by assigning them to overseas business-related departments and running project organizations, while providing training on Python, data literacy, and RPA for in-house digital transformation as well.

Global Training in 2021

  • English coaching class

    59Persons
  • GEC(Global Expertise Course)

    13Persons
  • Global MBA

    3Persons
  • In-house foreign language courses(Japanese, Chinese)

    117Persons
  • DX(Python, RPA etc.)

    397Persons

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.

Columbus Project

We have run the Columbus Project since 2015 to build a dynamic corporate culture of pursuing challenges. Participants are selected through the submitted documents and executive interview processes, and use up to three months of free time and KRW 10 million of support funds for their challenges. In 2019, we selected a total of five themes for this project: the research of the ‘development in distribution market utilizing new-concept launderette’; ‘proposal of vegan-friendly cosmetics concept’; ‘development of functional sports cosmetic brand concept’; ‘study of the current status of convergence technology development of cosmetics and textile industry and proposal of application’; and ‘market search and proposal for customized cosmetics’. With the proposal of various ideas, participants contributed to developing the company and had a meaningful time for growth by carrying out the project related to their interest.

Reverse Mentoring

We conducted the 'Reverse Mentoring' to encourage executives and team leaders to think, play and consume like the employees of the millennial generation, who were born in the 90s. Mentoring was carried out six times in a two-to-one setting, in which two team members played mentor for one leader. With this mentoring activity, the millennial team members introduced the YouTube channels to which they subscribed, while also watching other channels that were suitable for the leaders. They also came to popular places together and shared their young sensibility. For instance, they shared how to experience small but certain happiness by visiting famous bakeries, and experienced the young generation's leisure culture such as escape rooms and craft shops. In terms of work, team leaders listened to the ways in which the young members preferred to work and engaged in communication. As the mentoring created a chance to exchange opinions from different generations and find something in common to empathize with, we will continue to conduct Reverse Mentoring so that employees of different generations can relate to each other.

Labor-Management Relations

LG H&H aims to establish reasonable labor-management relations in compliance with laws and principles based on mutual trust and communication through various channels between the management and employees. We hold a company meeting to share the management performance and direction and swiftly deliver business-specific major projects and strategies, which are presented by team leaders at a conference call, to all employees. We also operate various communication channels to listen to diverse opinions such as the labor-management council meeting, company-wide and divisional Employees’ Committee and What If I Board to enhance the working environment to allow employees to focus on their work and improve the quality of life. We also launched a YouTube channel called 'LG H&H TV' to form mutual trust and promote communication with employees beyond different positions and generations, and issue the 'CEO Message' to share the CEO’s management philosophy. The company also issues the newsletter 'LG H&H Family' and delivers it to employees’ houses so that their family members can share in the company news and issues. With such twoway communication, we share the company’s vision and policy to help build understanding between employees. We also carry out various other activities such as expanding support for family events (funerals for maternal grandparents) for gender equality, increased support funds for purchasing a house to improve residential life, and continuous operation of the counseling program to enhance work concentration. With such activities, we collect various wishes and opinions from employees, reflect the opinions in the system and create partnerships as a community based on trust.

Labor-Management Communication Channels
Category Frequency Description
Company-wide Employees' Committee Quarterly Listen to VOE through the representatives of employees
in each group, identify issues and find solutions
Divisional
Committee
Bimonthly Identify the atmosphere of the workplaces of
each division by channel and listen to VOE
Meeting for each position level in sales and sales promotion Quarterly Listen to VOE related to sales and promotion,
identify issues and find solutions
Labor-management committee at each
business site
Quarterly Improve the working environment of each business site, conduct surveys regarding safety and health issues, summarize results, and give feedback with solutions
Employee meeting in
each division
Yearly Conduct an employee meeting led by the leader of
a division and give feedback for each agenda