Employees

HR strategy

The ultimate objective of the KION Group’s HR strategy is to provide the best possible support for the targeted implementation of the KION 2027 strategy, with which it is closely aligned. The KION Group’s success in the implementation of KION 2027 is founded on the capabilities and motivation of its employees.

To this end, the KION Group uses a wide range of instruments and measures to ensure that there is always a sufficient number of highly qualified, hard-working employees at all levels of its operations. Attractive working conditions and the opportunities for career progression afforded by working for an international group of companies play an important role in this and provide a solid basis for meeting the manifold challenges presented by our workforce, the various labor markets, demographic change, and digitalization.

The KION Group’s employer brands are very important in this regard. Familiarity with the three main employer brands, Linde, STILL, and Dematic, remains very high and was further strengthened during the reporting year. In 2021, STILL was recognized as a top employer for the tenth year in succession by the Top Employers Institute, a certification organization.

Our shared KION Group values

The shared values and leadership principles of the KION Group were developed and introduced in 2017 as part of an international bottom-up and top-down process.

Since then, they have been part of many HR instruments and are thus well embedded in the Company. For example, they are used along with the core competencies as a basis for measuring performance in the annual staff appraisal interviews. The leadership principles are derived from and complement the values. They define the conduct expected of managers in the KION Group. They also feature in various manager programs and provide guidance for individual continuing professional development activities.

Headcount

The average number of employees (full-time equivalents (FTEs), including trainees and apprentices) in the KION Group was 37,954 in 2021 (2020: 35,563 FTEs).

As at December 31, 2021, the KION Group companies employed 39,602 FTEs, 3,395 more than a year earlier.

Personnel expenses rose by 13.5 percent year on year to €2,612.0 million owing to growth in the average number of employees, higher variable compensation components for the year, general salary increases, and higher variable remuneration components. The rise is also attributable to various effects in 2020 in connection with the coronavirus pandemic that served to reduce expenses, such as short-time working and similar measures as well as employees’ using up of accumulated hours in their working-time accounts.

Diversity

The KION Group sees itself as a global company with strong intercultural awareness: As at December 31, 2021, people from more than 110 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 program, which gives employees the opportunity to transfer to different countries where the KION Group is represented. The coronavirus pandemic meant that far fewer people were able to transfer to other countries under the expat program in 2020 and 2021.

The KION Group is taking various steps to tackle the challenges of demographic change, for example by providing working conditions that are suited to employees’ age-related requirements and organizing healthy-living programs, so that it can continue to benefit from older employees’ experience. As at December 31, 2021, 23.9 percent of employees were over the age of 50 (December 31, 2020: 24.9 percent).

The proportion of the KION Group’s total workforce made up of women remained virtually unchanged at 17.1 percent in 2021, compared with 17.2 percent in 2020. To help increase the proportion of management positions occupied by women, the Executive Board has set targets that are published in the corporate governance statement. Going forward, the KION Group intends to fill more management positions internationally in order to better fulfill the continually growing requirements placed on the Company. The KION Group offers flexible working-time models that promote a good work-life balance. In addition, various initiatives were continued in 2021 that are aimed at increasing diversity in the Company. The Group launched the Female Mentoring Program for its female managers in 2018. The mentees and mentors alike describe the program as very rewarding. To further promote equality of opportunity for women, the KION Group has been a member of the initiative “Chefsache. Drive the Change – For Men and Women” initiative since 2019 and plays an active part in working groups in order to help drive forward this important issue. Various local networks have also been established in which women can forge contacts and share information.

Development of specialist workers and executives

In 2021, further good progress was made in the implementation of the new global process introduced in 2017/2018 for performance management and succession planning. Measures to actively manage the performance of executives were strengthened, for example. Succession planning was also stepped up, resulting in an increase in the number of candidates earmarked for key positions. There was an additional focus on identifying young high-potential candidates who will be put on targeted development programs. In 2019, a group of global high-potential candidates successfully completed a training course, followed by a second group in 2020, to set them on the path to taking on an executive role. Some members of these groups have already been promoted to an executive position. Following delays due to coronavirus-related travel and contact restrictions, the third group started in 2021. For the first time, however, the training course had to be held as a virtual event. In 2021, the first university graduates successfully completed their management trainee program and, since then, have taken up challenging roles in the different areas of the Company. A second group began the program in the reporting year.

The KION Group remains committed to introducing new programs targeted at specific groups and to offering 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 programs. This helps to systematically identify and support staff across the Group who have potential, who are high performers, or who are experts in key functions.

The KION ITS EMEA and KION SCS Operating Units also have academies that run subject-specific and interdisciplinary training courses to develop employees’ skills, particularly in sales and service.

Training and professional development

The companies in the KION Group currently offer training for 19 professions in Germany. Besides providing dual vocational training schemes, KION Group companies offer work placements for students combining vocational training with a degree course in cooperation with various universities. The total number of trainees and apprentices was 713 as at December 31, 2021 (December 31, 2020: 687).

Sharing in the Company’s success

The KION Group launched the KION Employee Equity Program (KEEP) in 2014. Initially limited to Germany, the program was then rolled out to more countries. As had also been the case in 2020, the program was suspended in 2021 due to the coronavirus pandemic.

The eligible participants received the matching shares that they were due in 2021.

Since 2014, the remuneration of the approximately 500 top executives has included a remuneration component running over several years that is based on the long-term success of the Company and is granted annually.

Employee commitment

The KION Group’s products and services destined for its customers are produced by committed employees. That is why all KION companies aim to ensure a high level of employee commitment. Following on from the manager surveys conducted in 2015, 2017, and 2019, a global employee survey took place for the first time in 2021. This survey was designed to collect input from all employees worldwide, strengthen employees’ commitment and motivation, further embed the corporate culture, and thereby support the sustainable growth of the business. A total of 64 percent of the workforce participated in the survey. The KION Group achieved an engagement score of 74 on a scale of 0 to 100, which meant it almost matched the external benchmark of 75. The results at Group and Operating Unit level were communicated transparently. Managers shared team results with their employees during team workshops and worked with them to develop ways of further strengthening employee commitment.

Health and safety in the workplace

Reflecting its responsibility as an employer, the KION Group attaches great importance to the health and safety of its employees. The focus is always on avoiding all accidents and work-related illness wherever possible, as well as on maintaining each employee’s work capacity in the long term. The KION Group’s current corporate policy sets out its obligations in respect of health, safety, and the environment (HSE). These include taking comprehensive precautions to create a safe working environment and ensuring employees know how to avoid risks and accidents.

In 2021, the ongoing coronavirus pandemic meant that activities were once again focused on infection control. During the further waves of the virus in 2021, the KION Group implemented measures at all sites in order to prevent the spread of infection and enhanced them as needed, depending on the local situation. The measures included the provision of protective equipment, disinfectant, and information materials. As far as possible, the recommendations on hygiene and social distancing were implemented at the sites. Only absolutely essential business trips were permitted. At some sites, vaccinations and antigen tests were also offered as a targeted means of preventing chains of infection.

Because of the pandemic and the related restrictions on meeting in person and traveling for business, it was only possible to offer training and other advisory services in the area of occupational health and safety to a limited extent, as had also been the case in 2020. The audit program continued in 2021. It is based on the ISO 14001, ISO 45001, and other standards and covers the KION Group’s production facilities as well as sales, service, and installations. In the reporting year, central HSE audits were also carried out within the KION Group. Due to the travel restrictions imposed as a result of the coronavirus pandemic, they mainly took place at units that could be reached locally. There was also further progress with the implementation of comprehensive minimum HSE standards, which are mandatory for all sites. Employees can access these via the intranet.

The HSE Championship was also continued. It provides additional motivation for employees to continually engage with HSE matters. Based on regular reporting from the individual units and defined evaluation criteria, a panel of judges awards a prize to those units that have shown special dedication or have suggested the most improvements in an area of HSE. HSE managers at the KION Group’s production facilities and in its sales and service units had the opportunity to meet and talk with one another at annual conferences. As had also been the case in 2020, they were held as virtual events in 2021.

Further information, including on HSE key performance indicators such as the lost time injury frequency rate (LTIFR) and the illness rate (average illness-related or accident-related absences from the workplace) and on the measures initiated and implemented in 2021, are included in the KION Group’s separate sustainability report, which will be published in April 2022 on the KION GROUP AG website.