Human resources

HR strategy

KION's success is founded on the capabilities and commitment of its employees. The Group's human resources (HR) strategy is geared towards providing the best possible support for strategic development and international growth. KION aims to always have a sufficient number of qualified, committed employees at all levels of the Group and to offer them attractive working conditions and the opportunities afforded by working for an international group of companies. This strategy also enables KION to tackle the challenges of demographic change.

The KION Group's growth in 2012 was reflected in the size of its workforce, which amounted to 22,232 employees on average over the year (2011: 20,797 employees). As at 31 December 2012, a total of 21,215 employees (full-time equivalents including trainees and apprentices) were employed across the Group. The reduction is a result of spinning off the hydraulics business. A total of 1,487 employees transferred to the new company Linde Hydraulics on 27 December 2012 and therefore no longer belong to the KION Group.

The number of employees in the LMH segment fell moderately. The aforementioned effect of the sale of the hydraulics business was largely offset by growth in other areas, including the acquisition of the sales company Linde Creighton Ltd. with 300 full-time equivalents. The service teams in eastern Europe were also enlarged in order to meet growing demand in that region. In the STILL segment, the decline in the number of production employees – resulting from the transfer of production to other sites – was offset by an increase in sales and service roles. The new FS segment's headcount advanced from 96 to 112 over the course of the year.

Every region (except Germany) registered a year-on-year rise in employee numbers. Germany is an exception to this, as the divestment of the hydraulics business resulted in a decrease in employees in the KION Group. The strongest percentage increases occurred in the Americas and China. As at 31 December 2012, 65.1 per cent of the workforce was employed outside Germany (31 December 2011: 61.5 per cent).

Headcount

Consolidation of the European production sites, which had been initiated in 2011, was implemented in 2012 with the minimum possible social impact and in close collaboration with employee representatives. The site in Montataire (France) was shut down and manufacturing of warehouse trucks was transferred from there to Luzzara (Italy) in the fourth quarter of 2012. The site in Bari (Italy) closed in July 2012, with production of counterbalance trucks transferring to Hamburg.

Due to higher average number of positions during the year under review, coupled with wage and salary adjustments, personnel costs were 13.1 per cent higher than in the previous year.

Diversity

KION sees itself as a global provider with intercultural skills that fosters international cooperation between employees – for example through the Linde expat programme, which enables employees to move to a number of partner countries. As at 31 December 2012, KION employed people from 69 different countries.

Another aspect of diversity is increasing the proportion of female employees, which rose from 14.7 per cent to 15.9 per cent in 2012. Women occupied 8.6 per cent of management positions (2011: 8.2 per cent).

KION has taken a range of steps to tackle the challenges of demographic change. For example, it ensures working conditions are suited to employees' age-related requirements and organises healthy-living programmes so that it can continue to benefit from older employees' experience. KION also offers partial retirement models, in which 333 employees were participating as at the reporting date (31 December 2011: 412). On this date, 23 per cent of employees were over the age of 50 (31 December 2011: 23 per cent).

In addition, KION offers flexible working-time models that promote a good work-life-balance. For example, Linde MH signed a company agreement about 'teleworking/home office' in the first quarter of 2012. The agreement stipulates the terms on which employees can work at home on a mutually agreed, voluntary basis.

Development of specialist workers and executives

Finding highly qualified people to fill specialist and executive positions is crucial to KION's success. As a result, one of the focuses of HR work was again the recruitment of suitable young talent in 2012. KION endeavours to offer them interesting development opportunities and flexible, family-friendly working-time models.

The Group companies collaborate on areas such as talent management and training & development programmes. This helps to systematically identify and support staff with strong potential, high performers and experts in key functions. Launched in 2012, KION Campus is an international, cross-brand executive development programme aimed at the Group's 300 or so top executives. KION cooperates with the European School of Management and Technology (ESMT) on the programme. In addition, new managers at STILL receive support under the First Leading programme during their first few years. Prospective managers can enhance their skills through STILL's Young Professional programme, while international staff with high potential can participate in the International Junior Circle. The STILL Academy offers subject-specific and interdisciplinary skills training courses. Opportunities at LMH include a virtual assessment centre for future managers.

In March 2012 STILL was one of around 100 German companies to receive the 'Germany's Top Employers 2012' award. Certification for this award is carried out by the international Corporate Research Foundation (CRF Institute), which looks at what employers offer in terms of remuneration and employee benefits, career and development opportunities, working conditions and corporate culture.

Training and professional development

The companies in the KION Group currently offer training for 17 professions in Germany. They employed a total of 543 trainees and apprentices as at 31 December 2012 (31 December 2011: 621 including the hydraulics business). Work placements for students combining vocational training with a degree course are also offered in cooperation with various universities. In the year under review STILL came third in the competition 'Hamburg's best workplace training providers'.

Health and safety in the workplace

The steps that the KION companies must take with regard to workplace safety, health and the environment are laid down in a corporate policy. According to this document, KION's obligations include taking comprehensive precautions to ensure a safe working environment and ensuring employees know how to avoid risks and accidents.

Strict rules governing health, safety and the environment apply in all areas of the company. In the reporting year, ten plants were audited in accordance with a group-wide standard. The audits increased awareness of workplace safety and highlighted areas for improvement. In 2012 the KION companies arranged 783 training courses in Germany alone on various aspects of workplace safety. At 97 per cent, the health rate remained at the same high level as in the previous year. The number of workplace accidents and the workdays lost as a result had fallen compared with 2011. Analysis of accidents and detailed action plans help to reduce risks in the workplace.