Annual Report 2016


The company ended the fiscal year with 18,506 employees, 16,007 located in Brazil and 2,499 located abroad. The turnover rate was 15.03% (see formation of operating team environment and the hiring rates in GRI Indicators). G4-DMA Employment, G4-10, G4-LA1

Attraction and retention

With employees from more than 20 countries, respecting differences is an Embraer principle. Embraer also invites the participation of people with special needs through the On the Path to Diversity program, in operation since 2012, in partnership with the Center for the Integration of Businesses and Schools (CIEE, in Portuguese). G4-DMA Diversity and equal opportunity, G4-LA12

In 2016, Embraer started its first trainee program. Through next year, those selected will be trained in the classroom and in operations, and will cycle through various departments in order to become familiarized with challenges inherent to a global company’s daily routine. In Brazil alone, more than 11 thousand young people expressed interest in the first 23 open positions.

In order to provide direct contact with university students, the company is also establishing partnerships with educational institutions, such as the Engineering Specialization Program (PEE, in Portuguese), conducted by the Technological Institute of Aeronautics (ITA, in Portuguese). Students complete a professional Master’s curriculum for Aeronautical Engineering and, upon completion of the course, they may be hired by Embraer. Another initiative is the Embraer Designer Program (PPE, in Portuguese), in which participants are technically trained at the São Paulo College of Technology (FATEC, in Portuguese), and work as interns within the company. This year, US$1,278,805.96 and US$626,077.18 were invested in these programs, respectively.

Retaining committed talent requires the development of a work environment that stimulates the upper mobility of positions. With this in mind, Embraer promotes the Internal Employment Program (API, in Portuguese), in which available positions are exclusively disclosed to employees before being announced to the market. This makes vertical mobility (promotion) and horizontal mobility (changing departments) available for career planning. In 2016, 36% of positions open were filled by employees.

Development and training

G4-DMA Training and education, G4-DMA Investment

Developing talents and preparing them to take on positions of leadership are fundamental conditions to ensure the longevity of the business. For this purpose, Embraer uses training programs that cover technical as well as behavioral abilities. Throughout the year, more than 300 courses were offered, mostly online, with the support of videos, tutorials, games and infographics.

Training for leaders and future leaders is planned based on PSE guidelines (see Comittment to excellence), with emphasis on the Embraer Leadership Development Program, which offers continued education, improvement for upward mobility in careers and other measures focused on the Leadership, Business and Results, and Market axes. The initiative, developed in partnership with Dom Cabral Foundation, graduated two classes in 2015 and four in 2016, which represents 183 managers trained in Brazil and abroad.

Employee performance is analyzed periodically through a skill evaluation. This process was carried out between April and June. Results guide the Personal Development Program (PDI, in Portuguese) and make it possible for leaders to recommend the most appropriate courses to each of their employees. Another performance indicator is the automatic salary progression, geared to production employees at the beginning of their careers, which provides for adjusting the compensation of those who receive positive evaluations. Leaders are evaluated based on 360° assessments, the Performance Map and the Calibration Committee (see performance analysis and career development in GRI Indicators). G4-LA11

Through year end, the company invested R$14,298,941.00 in 625,416 total hours of training, which represents 34 hours per employee (see average number of training hours per year per employee, as well as the total number of employee training hours for human rights policies in GRI Indicators). G4-LA9, G4-HR2

Internal courses and planning for pre-retirement G4-LA10

  2016 2015 2014
Employees 90 90 116
Value invested (R$) 115,305.08* 80,000* 190,820
Grants awarded 90 90 116

* The 2015 program ended in 2016. The 90 participants of the 2015 program are the same in 2016.

Compensation and benefits

G4-DMA Economic performance, G4-DMA Market presence, G4-DMA Employment

Employees receive fixed compensation, established in accordance with the complexity of their functions aligned with salaries practiced on the market, and variable compensation, based on company results and individual performance (see variation of the proportion of the lowest salaries, gender discrimination, compared to local minimum wage in GRI Indicators). G4-EC5

Brazilian employees have a benefits package (described here) and may participate in the Embraer Prev complementary pension plan. Membership is voluntary, without restrictions, and time of service is considered for withdrawal. Contributors define a monthly value of up to 8% of their salary and the sponsor matches that amount. Abroad, benefits packages vary in accordance with the current legislation in each country. G4-EC3, G4-LA2

Health and safety

G4-DMA Occupational health and safety

Concern with employee health and safety is the focus of the Environmental, Health and Safety Policy (MASS, in Portuguese), which aims to ensure a work environment that complies with labor and environmental law, in addition to complying with health, safety and ergonomic requirements.

The initiatives are developed based on periodic medical exams (for all employees) in order to trace each department’s epidemiological profile. With this information the company developed the Behavioral Program, the Tensional Reeducation Training Program (PERTO, in Portuguese) and the Prevention through Design program. Furthermore, emphasis is given to the Well-Being program, which aims to encourage the practice of healthy habits among employees.

The Internal Accident Prevention Committee (CIPA, in Portuguese) exists since 1971, and it is made up of representatives elected annually by employees, and an equal proportion of members are named by the company (87.26% representation), with the objective of ensuring safety in the operating environment. G4-LA5

The company is also in dialogue with unions regarding terms related to employee health and safety. Clauses negotiated in collective conventions cover 100% of Brazilian employees and include: offering Personal Protective Equipment (PPE); training and education regarding this issue; complaint recording system; and accident audits and periodic visits with the participation of employees’ representatives. G4-11, G4-LA8

Internationally recognized certificates, such as the OHSAS 18001 (since 2001), accredit Embraer operations with regard to adopted practices. Incident reduction and work condition improvement goals defined in the Master Sustainability Plan are supplemented annually. In addition, safety indicators are also monitored and analyzed monthly by the Board of Executive Officers and by the Board of Directors.

For the year, the total number of accidents with lost time was 82, and the occupational sickness rate was 0.22% (see more information in GRI Indicators). G4-LA6

Management of organizational climate

In 2016, various sector companies announced cost and expense adjustments, including those related to the operating environment. In this context, Embraer approved a plan for operational adjustments in continuity with the reviews of processes and the quest for efficiency (see Strategic plan), which included a Voluntary Dismissal Program (PDV, in Portuguese). All applications were evaluated by the company, and the 1,463 people who were awarded received, in addition to their severance pay, compensation of 40% of the nominal monthly salary proportional to their time of service in the company, six months of health and dental plan coverage, and support through lectures and career qualification and/or transition workshops. G4-LA10

A satisfaction survey was conducted with these employees, revealing that 85% of the respondents expressed their gratitude for the time they worked at Embraer. This data shows the respect with which the PDV was conducted and reaffirms the high satisfaction rates recorded in surveys over the last seven years.

Every year between 2007 and 2015, Embraer conducted an Internal Organizational Climate Survey, seeking to evaluate the degree of employee satisfaction. Because it is often above the market average, the company opted to improve practices in 2016, with a biannual engagement survey, which will take place in 2017, for the first time.