Employees

We held 2,850 workshops on the findings of our employee survey, received international recognition as a top employer, and increased the number of women in management positions.

Employee structure

As of December 31, 2012, the MAN Group employed 54,283 people, including subcontracted employees. This represents an increase of 3% compared to the previous year. The proportion of employees in Germany versus those in other countries changed only slightly. Our non-German companies employed around 6% more people than in the previous year.

Employee structure

  2010 2011 2012
*not including subcontracted employees
 
Total 47,669 52,542 54,283
Germany 27,354 30,187 30,513
Other countries 20,315 22,355 23,770
Women* 5,943 6,846 7,464
Subcontracted employees 1,976 2,364 1,802
Part-time employees 709 787 1,000
Employees on fixed-time contracts 2,035 2,581 1,741

Employees by region (excluding subcontracted employees)

  2010 2011 2012
 
Germany 26,046 28,589 29,360
Europe (excluding Germany) 15,407 16,604 16,552
Africa 827 925 898
Asia 1,193 1,453 2,941
Americas 2,174 2,559 2,676
Australia 46 48 54
Total 45,693 50,178 52,481

Age of employees (excluding subcontracted employees)

 
<30 31-40 41-50 51-60 >60 Total
10,982 15,507 14,684 10,024 1,284 52,481

Employee turnover (excluding subcontracted employees)

  2010 2011 2012
 
New hires 3,906 8,486 5,557
Persons leaving 4,510 4,326 4,696
Employee turnover in % 9,9 8,6 8,9

The number of employees working in Germany remained virtually unchanged. Women make up 14% of our total workforce, compared to 13% in the previous year. The number of employees with fixed-term contracts was down 33% on the previous year; the number of subcontracted employees fell by 24%. In the year under review, the Group spent approximately €2,702 million on salaries and wages (2011: €2,542 million) and approximately €565 million on social security contributions, pensions, and other benefits (2011: €551 million).

Remuneration

Remuneration at MAN is based on market rates and performance. Participation in Company profits on the part of our employees, managers, and the Executive Board is based on the same principles across the Group. Remuneration is equal for women and men; it is calculated on the basis of professional and personal qualifications, degree of responsibility, and performance. Internal comparisons of the salaries and wages paid to our female and male employees have confirmed this equal treatment. A uniform system is in place for ranking management positions. It factors in competencies, contribution to value creation, and management and budget responsibilities. Around the world, employee compensation packages are made up of comparable elements, with provisions for country-specific differences (e.g. in pensions). At our German sites, salaries and wages are governed by collective bargaining agreements. We meet local minimum wage requirements at our international sites and ensure that this represents a living wage.

Social security

Retirement provision that goes beyond statutory pension systems is usually important for employees to ensure the standard of living to which they are accustomed when they retire. For many years now we have been contributing to our employees’ retirement provision by granting pension commitments and similar benefits that are structured to country-specific and market requirements.

Once their active working life finishes, employees in Germany receive benefits provided by a modern and attractive occupational pension system that constitute a key element of MAN’s remuneration policy. These benefits offer a reliable additional income on retirement and also provide cover for the risk of permanent disability or death during their active employment. Employees receive employer contributions that are tied to their remuneration and can make additional provision through deferred compensation — which is employer-subsidized for staff who are covered by collective bargaining agreements. For employees at sites outside Germany, depending on the usual practice in each country we currently make market-based contributions to third-party pension plans, retirement investment funds, or defined benefit pension plans, the majority of which are designed to provide income to the pensioner until the end of their life.

Employee satisfaction

In 2011 we conducted a Group-wide survey of our employees for the first time. A priority was placed on measuring employee satisfaction in the workplace. Based on the findings of this survey, 2,850 workshops were held to develop follow-up activities, which were then implemented. The workshops focused on:

  • Reinforcing open and honest communication
  • Recognizing and rewarding performance
  • Identifying individual career development opportunities

The next employee survey is planned for 2013.

Feedback instruments contribute to an open culture of constructive feedback within the Company. Annual performance reviews with managers are one important human resources development tool at MAN, with an implementation rate of over 90% in 2012. In addition to how well individual goals are met, the performance reviews look at the degree to which the MAN leadership qualities — competence, transparency, commitment, and behavior — are practiced. On average, in the year under review the application of these leadership qualities was assessed as “strong.”

In 2012 the Corporate Research Foundation Institute presented MAN with multiple awards. The MAN Group was once again named the Top Employer 2012 in Germany, MAN Truck & Bus Germany was named Top Automotive Employer 2012/13, and MAN Truck & Bus Poland was named Top Employer 2012 in that country. MAN Latin America was honored as a Great Place to Work for the third time in a row and numbered among the Best Companies to Work For. In the year under review MAN Diesel & Turbo Singapore received the government’s national award for Outstanding Leadership in Supporting Fair Employment Practices.

Diversity and equal opportunity

In 2010 MAN became a signatory to the United Nations Global Compact, further demonstrating its commitment to diversity and equal opportunity — respecting and granting opportunities to employees regardless of age, sex, religion, ethnicity, and sexual orientation. Our guidelines for management hiring specify that diversity and the placement of qualified women in particular are to be given due consideration. With the aim of further increasing the proportion of women in management positions, we offer mentoring and coaching programs for women and agree with executive search firms on a specific percentage of female candidates for management positions. We currently employ 15 more female managers than in the previous year. For the fourth year in a row, the proportion of women in management positions rose by almost one percentage point to 8.2%. Our goal is to increase the percentage of women in management positions to 12% by 2014. In the year under review, women made up 17% of our pool of candidates. There are no women on the Executive Board of the MAN Group; one woman sits on the MAN SE Supervisory Board. Sixty-four percent of our managers come from Germany. We employ managers from a total of 34 different nations. When filling management positions at our sites outside Germany, we try to draw on the pool of local talent whenever possible.

In our Company we work to integrate people with disabilities. In 2012, 5.2% of our workforce in Germany consisted of severely disabled employees. This places us above the legally required employment quota for disabled people, which is 5% in Germany.

Women in management positions (excluding subcontracted employees)

  2010 2011 2012
 
Level 1 - 3 3
Level 2 - 17 24
Level 3 - 68 76
Total 63 88 103
Percentage 6.1 7.3 8.2

Since 2011 MAN Latin America’s New Horizon program has offered young people with disabilities the opportunity to work for the Company on an equal basis, to participate in continuing professional development courses, and, in the event of outstanding performance, to receive a college scholarship. In the 2012 fiscal year 22 young men and women participated in New Horizon.

Balancing work and family

At its Munich and Augsburg sites, MAN offers child care in company daycare centers. These programs are aimed at infants and toddlers. A total of 176 children are cared for in the two facilities. In Latin America, we offer employees a six-month period of maternity leave. Our employees in Bavaria can take advantage of a caregiver placement service to help find appropriate care for children and family members. An initiative of the Bavarian metal and electric industry, this program supports families during medical crises or in situations where a family member suddenly becomes dependent on care.

Flexible working hours

To allow our employees to organize their working hours as flexibly as possible, we have set up flexitime accounts across the Group. This allows employees to work more or fewer hours per day as their current workload demands, and to be compensated for overtime with time off. Compared to the previous year, the number of employees with flexitime accounts increased by 4%. In Germany, the average hours worked per week are governed by collective bargaining agreements. Permanent employees may also request to work from home. In the year under review, the number of telecommuters decreased slightly. By contrast, the number of employees on sabbatical increased by approximately 70%. Sabbaticals are primarily being taken by MAN Truck & Bus employees as part of the current short-time work program. Flexitime models are adapted to local requirements in the different countries where we are active.

Telecommuting and sabbaticals in Germany

  2010 2011 2012
 
Telecommuters (number) 5 8 3
Employees on sabbatical (number) 37 11 19

Flextime accounts

    2010 2011 2012
   
Number of employees Germany 24,391 26,808 29,360
  Total 43,784 48,234 52,481
Employees with flextime accounts Germany 23,749 26,116 28,352
  Total 31,720 35,036 38,679
Percentage Germany 97.4 97.4 96.6
  Total 72.5 72.3 73.7

Vocational training

MAN offers vocational qualifications with a view to securing the services of outstanding young talents. In the fall of 2012 almost 800 young people — 13% of whom are women — started their careers at our sites in Germany, Austria, and Switzerland. Having completed secondary school, the young people enter one of more than 30 vocational training programs or 19 dual education programs offered by MAN. Of the technical fields, our most popular programs are those through which participants can qualify as industrial mechanics, mechatronics technicians, and machinists. The number of vocational trainees increased by 6.5% compared to the previous year.

MAN Diesel & Turbo took on 88 of the 138 participants in the vocational training and dual education programs of manroland, a printing machine manufacturer which went bankrupt. Starting on March 1, 2012, they continued with their training in eleven industrial and technical fields at the MAN Diesel & Turbo Augsburg site. The remaining 50 vocational trainees will be employed by manroland web systems GmbH, a successor company to the printing machine manufacturer.

Participants in our vocational training and dual education programs also have the opportunity to gain international experience by participating in an exchange program with our European and Asian sites. In the reporting period the Volkswagen Group honored 29 vocational trainees from 13 countries with its Best Apprentice Award 2012; for the first time two MAN trainees were among the recipients, one of them a woman. At the end of the year under review 373 university graduates, 16% of them women, completed a trainee program.

Vocational training

    2010 2011 2012
 
International Number of employees 43,784 48,234 52,481
  Number of vocational trainees 2,740 2,769 3,276
  Percentage of total 6.3 5.7 6.2
Germany Number of employees 24,391 26,808 29,360
  Number of vocational trainees 1,962 1,973 2,212
  Percentage of total 8.0 7.4 7.5

Continuing professional development

As part of our HR development system, our employees are regularly given the opportunity to attend continuing education and professional development courses in keeping with their individual levels of education and experience. Standardized programs for our sales and technical staff held by MAN Truck & Bus at the MAN Academy help ensure that uniform standards are maintained worldwide. In the year under review a continuing professional education program specifically for sales employees was developed at MAN Latin America. In addition to the in-house continuing professional development program at MAN Diesel & Turbo, the PrimeServ Academy has special course offerings for service employees. Not only do we offer continuing professional development programs to our own service engineers, but to our customers’ marine and power-plant engineers as well.

Demographic change will make itself felt in Europe in the form of an aging workforce and a shortage of qualified professionals. In this context, a culture of lifelong learning is absolutely essential. We are working with our employees to promote such a culture, supporting them in their continuing professional development and education. Our employees can also gain international experience at MAN sites around the world and participate in job-rotation programs between our subgroups. In 2012 the number of continuing professional development hours remained on par with the previous year.

Continuing professional development hours per employee

  2010 2011 2012
* The system of calculation was changed in 2011. Since then it has reflected the continuing education hours actually completed rather than the estimated length of the training measures.
MAN Truck & Bus
(Germany only)
38 10* 13
MAN Diesel & Turbo 13 16 17
MAN Latin America 54 48 45
MAN corporate headquarters - - 44
Renk - - 18

Participation in professional training courses, MAN Truck & Bus employees

Category   Number
 
Continuing professional development
activities
Courses 1,488
  Days 31,775
  Participants 14,495
Technical training courses Courses 5,249
  Days 9,829
  Participants 44,968
Worldwide sales training courses Participants 5,418

Young talents

A top team needs outstanding managers and young talents who serve as role models. Consequently, on an international level we aim to attract talent at an early stage. We offer internships, a trainee program, a Top Bachelor program, and scholarships for MBAs and PhDs. Our Campus Initiative gives talented young people the chance to get to know MAN as an attractive employer while still attending university. MAN offers students at the Technical University of Munich the opportunity to participate in hands-on projects, a lecture series, and a scholarship program. MAN Latin America has launched a scholarship program to support outstanding employees in their continuing professional development and in MBA and PhD programs. In 2012, 95 employees benefited from these scholarships.

An assessment system is in place at MAN to identify employees with leadership potential at an early stage. These programs targeting young talents have allowed us to fill most management openings internally. With the goal of retaining top managers in the Company, an international project group has optimized our promotion processes. It focused on transparency, showing appreciation, and rewarding employees’ professional achievements.

Occupational health and safety

MAN places a high priority on health and safety in the workplace. Across the Group we have launched a variety of initiatives to prevent work-related illness, including offering assembly- line workers support from a physiotherapist, providing preventive occupational health examinations and consultations on cardiovascular risk, and organizing skin protection awareness days, running groups, healthy back programs, nutrition classes, and stop-smoking courses, etc. Should an employee become ill during working hours, MAN provides walk-in and emergency health services. In addition, we believe that occupational health care includes assistance in returning to work following an injury.

A project was launched in 2012 with the aim of continuing the expansion of our integrated Group-wide health management system. The health management system at the MAN Truck & Bus site in Salzgitter was presented with the Corporate Health Award in 2012. There was special praise for the innovative and holistic approach to employee health education and preventive health care, as well as for the system for managing hazards and physical stress to ensure that optimal health conditions are met at all work stations. The MAN Diesel & Turbo site in Singapore received the Singapore Health Award 2012 for its occupational health and safety systems.

Lost-time injuries

  2010 2011 2012
* In accordance with the German Social Code (SGB), lost-time injuries are defined as injuries incurred by the insured while carrying out their insured employment. These injuries are events of a limited duration which are
inflicted on the body by an external source and which result in impairment of health or in death.
Lost-time injuries resulting in more than
three days of missed work (number)
871 848 736
Lost-time injuries resulting in more than three days
of missed work per million hours worked (proportion)
16.8 14.3 11.8

Our preventive workplace health and safety initiatives and projects have started to bear fruit. The number of workplace injuries that resulted in the employee missing work for more than three days decreased by 13% compared to the previous year.

In 2012 there was a fatal accident at the MAN Truck & Bus facility in Pithampur, India, which we deeply regret. The Executive Board was informed of the incident and the entire site was assessed for hazards. The findings of the analysis were passed on to all relevant sites. We have introduced comprehensive measures at the Pithampur site to prevent a recurrence of this type of accident.

Employee rights

The MAN Code of Conduct guides our daily behavior and activities. We respect human rights, do not tolerate discrimination, and are committed to transparency. No cases of discrimination were reported in the year under review.

MAN recognizes the rights of workers to form and participate in unions and to conduct collective bargaining. In the year under review the percentage of employees in Germany covered by collective bargaining agreements was on par with the previous year. Companies without collective bargaining agreements are currently being evaluated in cooperation with the Group Works Committee.

Employees with collective-bargaining agreements

    2010 2011 2012
Number of employees Germany 24,968 26,482 29,360
  Europe
(excluding
Germany)
15,070 16,466 16,552
  Africa 722 1,013 898
  Asia 650 1,365 2,941
  Americas 2,064 2,531 2,676
  Australia 0 48 54
  Total 43,474 47,905 52,481
Number covered by
collective-bargaining
agreements
Germany 24,968 26,243 28,734
  Europe
(excluding
Germany)
13,227 12,016 12,701
  Africa 152 186 143
  Asia 0 0 430
  Americas 804 1,030 1,949
  Australia 0 0 0
  Total 39,151 39,475 43,957
Percentage Germany 100.0 99.1 97.9
  Europe
(excluding
Germany)
87.8 72.3 76.7
  Africa 21.1 18.4 15.9
  Asia 0.0 0.0 14.6
  Americas 39.0 40.7 72.3
  Australia 0.0 0.0 0.0
  Total 90.1 82.4 83.8

Part of our sustainable HR policy concerns maintaining a transparent relationship of trust between the Company management, the workforce, and labor representatives. In the different countries where MAN is active, relations with its employees are structured in accordance with national law, as are communications with employees regarding fundamental changes within the organization. The employees of our subgroups are represented by their own works councils, which have negotiated numerous works agreements with the management of the respective companies. These agreements cover issues ranging from voluntary benefits to professional education and regulation of working hours. This establishes a dependable overall framework for our employees and encourages a relationship of trust between labor and management.