Employees

HR strategy

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

Headcount

The average number of employees (full-time equivalents (FTEs), including trainees and apprentices) in the KION Group was 21,632 in 2013 (2012: 22,232 FTEs). As at 31 December 2013, the KION Group companies employed 22,273 FTEs, 1,058 more than a year earlier.

Much of this increase was accounted for by the first-time consolidation of the trading and sales companies acquired in the year under review. The acquisition of Willenbrock Fördertechnik increased headcount by 542 employees, while the acquisition of Arser added a further 122. Besides the acquisitions, companies in the KION Group also continued to strengthen their sales and service functions. The sharp rise in the number of people employed in these functions more than offset the slight decline in production employees. Closure of the Merthyr Tydfil site and the transfer of production to a contract production facility contributed to this decline (see page 82). Implementing the job losses with the minimum possible social impact had utmost priority during the process of closing the site. The number of staff in administrative functions rose only moderately due to the cost-cutting measures initiated.

At regional level, there were only slight changes in headcount overall. The number of employees rose in Germany, France and Turkey, primarily due to the acquisition of trading companies. As at 31 December 2013, headcount in China (excluding Hong Kong) had increased by approximately 5 per cent compared with the end of 2012. The research and development, production and sales functions were all expanded in China. >> Table 030

Personnel expenses amounted to €1,143.8 million – a year-on-year decrease of 4.9 per cent – owing to the smaller average headcount for the year, which was primarily attributable to the sale of the hydraulics business. This easily offset the countervailing effect caused by adjustments to wages and salaries. >> Table 031

Diversity

The KION Group sees itself as a global manufacturer with strong intercultural awareness: as at 31 December 2013, people from 66 different countries were employed across the KION Group.

One of the ways in which the Company promotes international collaboration between employees is the KION expat programme, which gives employees the opportunity to transfer to different countries where the KION Group is represented.

The KION Group tackles the challenges of demographic change by providing working conditions that are suited to employees’ age-related requirements and organising healthy-living programmes so that it can continue to benefit from older employees’ experience. As at 31 December 2013, 23.5 per cent of employees were over the age of 50 (31 December 2012: 22.6 per cent). A total of 250 employees were participating in partial retirement models as at the reporting date (31 December 2012: 333).

Another aspect of diversity is increasing the proportion of female employees, which rose from 15.9 per cent to 16.1 per cent in 2013. Women occupied 8.0 per cent of management positions (2012: 8.6 per cent). The Executive Board has resolved to double the proportion of women in management positions by 2020. Going forward, the KION Group intends to fill more management positions with employees from outside Germany in order to better reflect the Company’s international make-up.

The KION Group offers flexible working-time models that promote a good work-life balance. In addition, Linde Material Handling has implemented a company agreement about ‘teleworking/home office’, which stipulates the terms on which employees can work at home on a mutually agreed and voluntary basis.

Development of specialist workers and executives

Finding highly qualified people to fill specialist and executive positions is crucial to the KION Group’s success. As a result, one of the focuses of HR work across the Group was again the recruitment and development of suitable young talent in 2013.

The KION Group endeavours to offer its employees interesting career opportunities and flexible, family-friendly working-time models. The Group companies also collaborate closely 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. Organised in cooperation with the European School of Management and Technology (ESMT), KION Campus is an international, cross-brand executive development programme aimed at the Group’s 300 or so top executives. 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 training courses. Opportunities at Linde Material Handling include a virtual assessment centre for future managers.

Training and professional development

The companies in the KION Group currently offer training for 19 professions in Germany. They employed a total of 591 trainees and apprentices as at 31 December 2013 (31 December 2012: 543). This represents a significant increase in the number of trainees and apprentices, which will enable the KION Group to meet its ongoing recruitment needs. Work placements for students combining vocational training with a degree course are also offered in cooperation with various universities.

The continuing professional development on offer was expanded in 2013, for example by using e-learning platforms. This included PC-based training on the KION Group’s code of conduct.

Ideas management

The companies in the KION Group regularly reward employees for their good ideas. STILL, in particular, has placed greater emphasis on its ideas management scheme over the past two years. New suggestions are quickly processed using a web tool and then receive recognition in regular reports on the intranet. In 2013, 724 ideas were submitted, of which 184 were rewarded and put into practice.

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, the KION Group’s obligations include taking comprehensive precautions to create a safe working environment and ensuring employees know how to avoid risks and accidents.

At 97.1 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 slightly compared with 2012. Analysis of accidents and detailed action plans help to reduce risks in the workplace.

In addition, LMH has launched a programme for changing the culture of health and safety at four German plants. It developed the programme in collaboration with experts at DuPont Sustainable Solutions.

The medium-term aim is for all sales outlets to implement an occupational health and safety management system in accordance with OHSAS 18001. To assist with this, a safety expert has been recruited for the Aschaffenburg site. In 2013, STILL’s occupational health and safety management system was certified in accordance with OHSAS 18001.

Besides conventional measures to ensure workplace safety, increasing attention is being paid to employees’ general health. Since 2013, Linde Material Handling’s German plants have offered free health checks for all employees. Five key health factors are checked and discussed during an appointment with a company doctor.

Employee share programme

Having successfully floated on the stock exchange, the KION Group wants to set up a share programme to enable its employees to share in the Company’s success. To this end, 200,000 treasury shares were repurchased over a four-week period, which represented around 0.2 per cent of the Company’s share capital. The intention is to launch the programme in Germany in 2014 before rolling it out at other sites around the world, wherever possible.