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

LG H&H creates systems and an environment where female employees can fully perform to their capacity while achieving a balance between work and life at home. We are open to hire female employees based on our business characteristics having women as a major target customer group for cosmetics and household goods. As a result, the number of female employees has been rising since 2005, reaching 56% of the total number of employees as of 2018. We also try to build 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 also help employees keep a balance between work and life by running a daycare center in the company and operating the family care leave system. In addition, we have a female human resource development roadmap for each position, evaluate employees based on performance in a fair method, and provide equal opportunities for training, so that female employees can be committed to their work with vision. We also provide opportunities for female employees with career breaks caused by marriage and child-rearing to be hired again by the company. Due 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. Moreover, we were awarded the Minister Prize for a Good place to Work for Women granted by the Women’s News in 2018.

Hiring of the Disabled

We run Bright World, our subsidiary which is a sheltered workplace for the disabled, to contribute to local communities and the national growth by hiring the disabled and developing their capabilities and improving the happiness and potential of the disabled. Starting with a cleaning business in 2015, we have expanded the business of this subsidiary to the company cafeteria, cafe, car wash and cosmetics packaging work. We also provide field trips and career experience programs even for the parents of the disabled and special education teachers in cooperation with local education offices and public institutions. We are building an environment where the employees of the subsidiary feel connectedness and pride by participating in the sports day and picnic events, while providing various opportunities such as informal activities for the disabled who might be isolated after working hours. Our case was designated as an exemplary one as a sheltered workplace for the disabled by the Prime Minister in 2016 for such active efforts to create a convenient environment for the disabled and contribute to increasing and maintaining their employment rate. We were also granted Comfortable Workplace of This Year by the Minister of Employment and Labor, constantly trying to make the company the best one for the disabled to work at.

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.

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 2018

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
Company-wide Committee Twice/year Listen to VOE through the representatives of employees in each group, identify issues and find solutions
Divisional
Committee
Bimonthly Identify the atmosphere of 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
Annually Conduct an employee meeting led by the leader of a division and give feedback for each agenda