The Gerdau Group pays close attention to the personal development of its professionals.
We develop ongoing strategies to attract and retain talent, build teams, and recognize and
reward good performance.
Our employees are challenged to act in a proactive fashion in the consolidation of the
Group as a world-class international company. Gerdau’s human resources management is
focused on the globalization of policies and guidelines in all operations. The actions taken are
aimed at promoting new behaviors and attitudes, encouraging leaders and their teams to
achieve the highest levels of performance, and generating results for employees, customers,
shareholders and communities. At the end of 2005, the Gerdau Group had 25,300 employees.
Mainly as a result of the consolidation of the company’s stake in Sidenor, this number now
exceeds 27,500.
CULTURAL INTEGRATION
As an organization that brings together different cultures, the Group adopts a position of
sensitivity and flexibility in making the adjustments necessary to respect the practices
of local markets. At the same time, the Company keeps its ethical core intact in every location:
its basic values, policies and guidelines.
Focus on similarities rather than differences: that is the attitude behind the construction of
a common project for all of the Group’s employees (see box: Rebuilding Communities Hit by Hurricanes).
ORGANIZATIONAL CLIMATE
The Company’s organizational climate allows it to meet business challenges: growth and
profitability, customer satisfaction and high team performance. At the same time, this
climate must encourage the fulfillment of employees’ aspirations in relation to personal
development, opportunities, career, compensation and recognition.
An annual organizational climate survey, carried out with employees to evaluate whether the
Company’s Human Resource Management practices are meeting expectations and creating
the expected results has demonstrated synergy between the Gerdau Group’s targets and
those of its professionals. In 2005, the general satisfaction index in Brazil achieved the
impressive level of 90%, with the percentage of favorable responses reaching 80%.
HUMAN DEVELOPMENT
The Gerdau Group’s training investments grow each year. In 2005, the company invested
R$ 33 million in professional development programs, up 17.7% on the previous year. In the
same period, 1.7 million hours of training were carried out throughout the Group’s units,
representing a 5.9% increase in relation to 2004.
These training and development programs are focused on different fields of professional
activity, including essential contents and approaches that stimulate self-improvement.
Employees in the production area, for example, take part in the Industrial Training System. In
sales, the Commercial Training System develops customer service skills.
Leaders have a specific system aimed at developing competencies, with a focus on team
management and success. Full scholarships are offered for MBA and Master’s programs.
Leaders also take part in exchanges between Gerdau operations in different countries.
This provides an opportunity to swap experiences, get to know new cultures and hone
management practices. Exchanges also contribute to the diffusion of the Gerdau values
and culture, as well as best practices adopted in the Group’s various units (see box: People: The Gerdau Group’s Competitive Advantage).
Training and Development
2005
2004
Investments (R$ million)
33.0
28.0
Training hours (million)
1.7
1.6
Training hours per employee*
80
89
*Except Gerdau Ameristeel and part of Diaco.
GERDAU CORPORATE UNIVERSITY
Developed in 2005, the Gerdau Corporate University project will be implemented in 2006,
with the aim of managing all of the Group’s training and development programs.
For this initiative, the Group’s business competencies were identified by means of
23 interviews carried out with senior executives. These will guide the creation of the
university’s programs and course modules. A matrix will store the Company’s knowledge
about management at different levels of complexity.
ATTRACTING TALENT
Preparing people to meet the new demands that result from the Gerdau Group’s growth
strategy is one of the priorities of the organization. This task is in line with the concept of
training global leaders, which forms part of the vision of a world-class international company.
The training program for new talents brought together 1,400 interns and trainees in 2005, to
be prepared in an accelerated and coherent manner to take on new positions in the Company
(see box: Tomorrow’s Leaders).
COMPENSATION
Employee compensation consists of two elements: one fixed, in line with best market practices,
and the other variable, reflecting the achievement of goals and results by teams in all the
operations.
Variable compensation for leaders is influenced by the results of the Business Operation
and the unit in which each executive works, and by their personal performance. This last item
takes into account success in meeting planned targets and achievements in relation to plans
for personal development, teams and succession.
BENEFITS
The aim of the Gerdau Group’s benefits program is to contribute to the health and well-being
of the employees and their families. It is adjusted to the particularities of each country and
business operation and seeks to develop professionals and strengthen their relationship with
the organization.
The benefits offered by the Company include retirement plans, medical, dental and pharmaceutical
assistance, housing and educational loans, and funding for university scholarships, among
others, according to the needs of employees in each geographical region.
Benefits (R$ million)
2005
2004
Meals
44.5
33.4
Transportation
42.0
33.7
Profit sharing
335.9
283.6
Private pension
92.0
96.1
Health
168.9
161.7
TOTAL SAFETY
No emergency, production situation, or result can justify jeopardizing the safety of our
employees or service providers.
That is the philosophy that guides the Gerdau Group’s safety activities. Besides making
ongoing investments in protection gear and equipment for the industrial plants, the Company
undertakes significant activities to develop the culture of an accident-free workplace. For this
reason, it seeks the commitment of its leaders and the involvement of all of its professionals
through ongoing training and awareness-raising activities (see box: Risk Management).
The Total Workplace Safety System – the set of practices adopted in all the units – uses safety
management methodology based on internationally recognized standards of excellence and
is
audited regularly by an external consultant and
internal teams.
EMPLOYEE COMMUNICATIONS
The Gerdau Group’s Employee Communication system aims to offer employees the
information they need to be able to act in line with the self-management model. In this
model, each operator understands their process and fulfills their role according to the
concept of autonomous management.
The rapid growth of the Group and its aim to be a world-class international steel company
led to the creation of a new Employee Communication system in 2005. The evolution towards
this new system involved four dimensions:
• Corporate Employee Communication (from the Group to its operations and units);
• Local Employee Communication (from the units to their internal public);
• Direct Employee Communication (face-to-face communication);
• Specific Employee Communication (reinforcement campaigns and temporary campaigns).
One of the channels of corporate communication with the internal public is the magazine
Gerdau Connection, launched in 2005 to transmit important information about the Company
to its employees throughout the world. Another example is the Steel Market bulletin, aimed
for leaders in Brazil, with information on the steel sector in language that is accessible to all
middle and upper management levels.
The
Employee Communication system
also includes acts of recognition and celebration, which
seek to strengthen employees’ sense of pride in being part of the Gerdau Group. These actions
take place to celebrate results achieved, records broken, awards won, personal achievements,
outstanding professionals, and other highlights worthy of celebration.
No emergency, production situation, or result can justify jeopardizing the safety of our
employees or service providers.
