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France Telecom (FT) case study

France Telecom (FT) case study. III- Career Management, Deployment and Mobility. Lecture 5. Internal and external mobilities (tools for leading the change). Accompany organisational evolutions Translate employees’ choices Geographical mobility Public function mobility Spin-offs

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France Telecom (FT) case study

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  1. France Telecom (FT) case study III- Career Management, Deployment and Mobility Lecture 5

  2. Internal and external mobilities (tools for leading the change) • Accompany organisational evolutions • Translate employees’ choices • Geographical mobility • Public function mobility • Spin-offs • Stop activity

  3. Geographical and/or functional mobility • Allows to answer to organisational evolutions and to wishes of the employees • An individual coaching process is implemented • Development of skills if post changes • Specific financial arrangements depending on position and location

  4. Some numbers In 2001, 40% of deployment concerned priority activities : sales, management, finance,.. In 2002, towards service centers and contact with remote clients In 2003, + 25% after organisational change In 2004, thanks to the dynamism and capacity for change, mainly to the benefit of Sales & Marketing,….. ...But also to new networking technologies and Information Systems 53% of the total manpower changed type of job between 1997 and 2002

  5. Recruitment • Strong decrease after « TOP » project • Recruitment of new graduates or less than 30 with first experience for the Sales, Informations Systems and Research & Development • 42% are top executives

  6. Mobility to State Public Function • Allow the civil servants to continue their careers in the State Function • Access to all Ministries or executive positions within Public function through management of specific rules dedicated to deployment (detach then integrate, except in particular cases)

  7. 4 + 8 system • 4 months : employee at disposal, internship with trial period • 8 months « detached » (renewable once) then integrated • Guarantee of return into the employment process at any time • Financial arrangements • Maintaining level of wages • Rellocation allowance • Integration bonus

  8. Some numbers • 1200 mobilities toward State Public institutions • State Public Function : 50% • Territorial Public Function : 45% • Hospital Public Function : 5%

  9. Spin-Offs: a means for France-Telecom to adapt the human resources to the market constraints but also to ease employees’ personal and professional project take-offs Goals : • Contribute to new markets and creation of value added, by valorising intellectual property of FT • Facilitate entrepeneurship and develop the skills of potential creators • Favourise turnover within FT

  10. Spin-offs and FT involvement • Help in the production of the business plan • 1 to 2 years service facilities to build the administrative files for the new company • Financial allowance for the company creation • 2-year availability to test the business • A specific contract can be signed with the new company in some cases • Financial arrangements for specific capacity building

  11. Some numbers • The cost of a spin-off equals a total salary package for one year that is an average of 40.000 € • Since 1997, 550 people left for spin-offs • 1500 jobs were created • Rate of return is 12% • 5% of return because of project failure • Type of company • 1997 to 2001 • Creation of core business company • Technology Transfer R&D • Development of other products PABX • 2001 to 2004 • Creation of technical and proximity companies (restaurants, plumbing, pizzeria, guest houses, ...)

  12. Stopping activity Goal : favour mobility, arrival of external competencies and newly graduated integration • Systems that help • End Of Career leave • Progress of termination of Activity • Support and sustain • Legal system • Pension

  13. Stopping Activity : C.F.C • This specific deal allows FT employees under certain seniority conditions to stop their professional activity at the age of 55 years being paid till they officially retire. • Conditions : • Less than 55 and no more than 60 years old • Be in activity within FT for at least 25 years • Not under the « active service » system • Contract for 10 years ending December 2006 • During this period, promotion and salary increases are guaranteed • 70% of salary and leave bonus that can reach 12 months salary

  14. Stopping Activity : Support and Sustain system : permanent but less advantageous than CFC • Allows to work part-time with 70% salary from the age of 57 • Allows from the age of 57 not to work but be mobile in major cases of needed support while being paid 70% of salary

  15. Stopping activity : pension • At the age of 65 and possible request from the age of 60 • Possibility of request for pension rights from the age of 55 for specific job families «active service»

  16. A few numbers more

  17. Tools of communication and information • For internal mobility : • Website « Planète Emploi » gives all VACANT jobs per function, level, and location • For external mobility : • Website « Espace Mobilité » gives access to available jobs per type of administration • Website « Spin-Offs» gives information on the access conditions and modalities

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