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 &
Best Workplaces for Women

LG H&H leads the corporate culture where the capabilities of employees are acknowledged based on performance, regardless of gender. For instance, we appointed two female employees with global sense and expertise, including a local female leader in her 30s, as new executives at the end of 2020, following the appointment of the youngest female executive in the previous year. We are also establishing an organizational culture that allows people to work in harmony, regardless of gender, by retaining the “Best Family-Friendly Management certification” granted by the Ministry of Gender Equality and Family for 8 consecutive years. In addition, we create a working environment where employees can relieve the burden of pregnancy and childcare, such as operating a daycare center in the company and the family care leave system and allowing employees to apply for maternity and parental leave without hesitation and to work from home for urgent child care. As of the end of 2020, female workers account for 53.1% of the total number of employees. We are constantly improving related systems so that our talent can pursue work-life balance, and we also provide opportunities for re-employment for female employees on career breaks due to marriage or child care.

Recruitment of Socially-vulnerable Groups

LG H&H runs Bright World, a sheltered workplace for people with disabilities, to contribute to revitalizing employment for people with disabilities who are disadvantaged. As of 2020, 70 out of 100 workers at Bright World have disabilities, 58 of them severe, and are doing work related to the cafeteria, caf?, car washing, cleaning, and packaging cosmetics. In 2020, we expanded the range of services to valet parking at the Cheongju plant and a cafe at LG H&H's Gwanghwamun headquarters. In 2021, we plan to open a store and a cafe at the LG Cheongju Technopolis plant. LG H&H has provided a life independence education program in collaboration with the Chungcheongbuk-do Office of Education so that workers with disabilities can pursue economic independence and self-reliance in their daily lives. In addition, we participated in the campaign designed to overcome COVID-19 led by the Korea Employment Agency for Persons with Disabilities, contributing to improving awareness so that jobs for people with disabilities can be maintained during these difficult times. For this initiative, we were awarded the Grand Prize at the Contest for Best Practices of Education for Disability Awareness in the Workplace hosted by the Ministry of Employment.

Fair Recruiting Process

LG H&H introduce a one-to-one intensive 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

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.

Development of Global Experts

글로벌 사업역량을 갖춘 임직원 육성 이미지

LG H&H runs a variety of global human resource development courses to nurture human talent equipped with capabilities for global business. We have a one-to-one English learning course with a native teacher, aimed at enhancing employees’ capabilities for global business as well as language skills. Our GEC (English) and GECC (Chinese) courses are designed to provide intensive support to employees to improve their English and Chinese skills, reflecting the characteristics of an FMCG1) company. We are also preparing for the expansion of global business by operating regional expert and global MBA courses.

*FMCG: Fast Moving Consumer Goods

Global Training in 2020 - English coaching class 41Persons, GEC(Global Expertise Course) 16Persons, Global MBA 3Persons, GECC(Global Expertise Course in Chinese) 13Persons

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
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