More than 24,000 people work for the Gerdau Group. Regardless of nationality, they work together toward the same objective and strategy: consolidate the Gerdau Group as an international, world-class company. They share values and knowledge by combining technical, industrial and commercial expertise and integrating the best aspects of each business operation. They also search the market for the most efficient examples of management, performing global benchmarking research, even in other sectors of the economy. All of these actions are designed to add value to the business through teams and leaders who are committed to outstanding performance. We know, however, that this is not a short term job. We therefore continuously invest in the development of our professionals, in attracting talent and in the quality of life of employees and their families.


People management



To keep people motivated, the Gerdau Group challenges its employees to surpass limits and become the leaders of change. The goals are established by teams and managers together, reinforcing the spirit of team work and the feeling that each individual is responsible for results. Outstanding performance is recognized and rewarded through various compensation programs based on results.

Another important tool used to increase motivation is internal communication, which encourages the involvement of people in the Group's challenges and the feeling of belonging to the organization. These practices favor the construction of a long-term bond based on mutual respect.






Attracting talent

The Gerdau Group works continuously to develop future leaders and attract talents from the market. The emphasis on developing leaders is reflected in its program for interns and trainees. Over 1,200 youth work side-by-side with experienced professionals absorbing new knowledge and quickly becoming prepared to take on new responsibilities.

The Group also searches for developed professionals that can contribute immediately to the business. Another important program is strategic restructuring, which Gerdau uses to seek senior level professionals to fill strategic positions.


Training and development



The Gerdau Group has a specific leadership program that is designed to improve the efficiency of team management and achieve world-class performance. One of the subjects addressed is coaching, which develops each team's potential to achieve superior results.

The Group also offers full scholarships for MBA and MS programs at the world's top educational institutions. Another way of expanding the global vision of its employees is through intellectual and cultural exchange within Group operations. This program fosters the Gerdau culture and the best practices adopted at the different units. Each year, Gerdau Group employees undertake missions to learn management practices by visiting different units. In addition, more than 40 professionals work outside their country of origin.


Total workplace safety

* Accident frequency rates with time loss per million man hours worked (includes employees and service providers).

For the Gerdau Group, no emergency situation, production requirement or result can justify safety risks for our employees or service providers. It is for this reason that the Total Safety System exists. It involves a strict set of practices that are currently shared by all units and it operates on three major fronts:
- Development of the Zero Accident culture by engaging the leadership and involving all professionals. This work is performed through continuous awareness raising, training and team involvement.
- Use of safety management methodologies to benchmark against international standards: The methodology is based on the structuring of a system that guarantees the safety of people through preventive actions. Dozens of practices are evaluated using this system, ranging from leadership and administration to critical task analysis and procedures, preparation for emergencies, individual protection equipment, health control, industrial hygiene and even off job safety.
- Investment in new protection materials and industrial equipment in addition to the modernization of existing equipment.

All of this work is audited periodically by an external consulting firm and internal teams. Both evaluate the strong points and areas for improvement in the system, and each unit elaborates action plans, thereby promoting the continuous improvement of safety practices.


Benefits

The Gerdau Group benefits program is designed to contribute to the quality of life of employees and their families. It is adjusted based on the local markets, laws and business operations.


Career management and succession

The Gerdau Group encourages the professional growth of employees in the organization, preparing them to occupy strategic positions by means of development programs.

Individual development plans are designed together with the professionals, with goals and the evaluation of results to help employees achieve their professional aspirations and meet operational demands.


Organizational climate

Each year, the Gerdau Group performs an opinion poll with employees to evaluate whether people management practices are meeting the expectations of professionals and generating the desired results. In 2004, over 85.5% of the professionals in the Americas participated in the poll, and 79.9% stated that they were happy to be working for the Gerdau Group.


Staff 2004 2003
Employees 24,148 20,160
Outsourcing 9,468 8,852
Trainees and interns 1,241 908
Dependents 41,259 36,517
Number of women who work at the company 1,657 N.A.¹
% of leadership positions occupied by women 10.9 N.A.¹
% of employees over 45 years old 29.0 32.1
Average time with the company (in years) 12.0 10.2


Training and development 2004 2003
Investments (million R$) 28.0 22.7
Total number of training hours (million)² 1.5 N.A.¹
Number of training hours per employee² 89 N.A.¹


Workplace safety 2004 2003
Investments (million R$) 16.2 11.2


Benefits 2004 2003
Meals (million R$) 33.4 24.3
Transportation (million R$) 33.7 24.6
Profit sharing (million R$) 283.6 249.4
Health (million R$) 161.7 100.8
Private pensions (million R$) 96.1 46.6
1.Not available.
2.Does not include Gerdau Ameristeel data.


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