Personnel
Kendrion is a decentralised organisation comprised of four market-focused business units. Responsibilities are assigned as low as possible within the organisation, and local entrepreneurship is encouraged. This ensures that Kendrion can respond rapidly to the continually changing market and special customer requirements. Moreover, this enables Kendrion to promote creativity, innovation and offer all business units an opportunity to develop their full potential.

In 2012, Kendrion once again demonstrated that the company’s entire organisation can deal with challenges by adopting a results-oriented and efficient approach. The flexibility provided by the use of temporary employees has enabled the company to adopt an appropriate response to economic fluctuations. In view of the uncertainties about the future economic circumstances, maintaining the flexibility of costs – including personnel costs – will continue to be of great importance in the coming years. Kendrion expects more pronounced fluctuations in the global economy in the future.

Kendrion’s Human Resources (HR) policy is decentralised, and local management bears the responsibility for the local HR policy within the specified guidelines. A number of duties are coordinated at a central level by the HR department in Villingen, Germany. These duties primarily relate to the (senior) management, a group of about 40 managers, and to the improvement of opportunities for recruitment. The HR department also focused on closer cooperation between the operating companies to improve exchanges and enable colleagues to benefit from each other. One important event was the international HR meeting held in October 2012, which was attended by HR colleagues from all locations and offered them the first opportunity to meet each other in person. Issues discussed at this meeting included diversity and staff satisfaction.

Kendrion, like many other companies, was affected by a shortage of skilled engineers. However, the company took innovative countermeasures to resolve this problem. In 2012, Kendrion began to reach appropriate candidates via new recruitment channels such as social networks. Kendrion was also active in cross-border recruitment and successfully cooperated in an initiative with the Federal State of Baden-Wurttemberg (Germany), the location of the heart of several of Kendrion’s engineering centres. Issues on the agenda included the reconciliation of private and working life; the cooperation resulted in a further improvement.
In 2012, Kendrion’s operating companies further extended their regional activities intended to enhance their appeal as local employers. The companies’ presence at schools and universities and their PR activities were intensified.

Bond with the employees
Kendrion’s Executive Board and the Business Unit Managers devote a great deal of attention to the communication of the strategy, the plans of action resulting from the strategy, and the details and progress of the plans. This ensures that the employees are provided with a clear insight into what is expected of them, and consequently are able to make an active contribution to the achievement of growth. Many operating companies have implemented career development and training programmes designed to improve their staff’s knowledge and skills. Employees receive guidance in forms such as annual performance appraisal interviews. Kendrion’s corporate magazine ‘Magnetised’, for all staff, is published three times a year.

In general, Kendrion has – although on occasion difficult issues need to be discussed – a good relationship with the works councils and the unions.

Number of employees
Kendrion has approximately 1,600 employees (including 100 temps) in twelve countries.

Compensation
Kendrion offers its employees attractive compensation terms that are in line with the local market and based on job-specific requirements. A bonus scheme has been implemented for the management that is based on the company’s performance (operating result and free cash flow) and on individual performance targets. Kendrion has implemented a share scheme for senior management.

Over 800 of the contracts of employment in Germany and Austria are governed by or follow the collective bargaining agreements for the metal industry in the respective countries.

Awards
Kendrion also promotes innovation and improvement, and encourages the management and employees.

In September 2012, Company Awards were presented to the most innovative Kendrion company and the best performing business unit. The Innovation Award was awarded to Kendrion (Mishawaka) LLC, Indiana, USA, business unit Industrial Magnetic Systems. The business unit Passenger Car Systems won the Simply the Best Award.

Management development
Good management, expertise and motivation are of essential importance to the future, and for this reason Kendrion assigns high priority to management development. The corporate management development programme is supported by the Kendrion Executive Programme, a customised, international modular teaching programme in which the company collaborates with the Rotterdam School of Management. Two three-day modules are organised each year. The subjects covered by the programme are communication and leadership, sales and marketing, strategy, production and logistics, HR and project management. The programme also constitutes an important platform for exchanges of experience between the (senior) management, and for the further expansion of collaboration between the various operating companies.
Kendrion implemented a new ‘Kendrion High Potential Programme’ in 2012. This three-year programme is divided into several learning modules. Kendrion selected twelve high-potential employees from all over the world with the objective of training tomorrow’s generation of managers. The first learning module began in January 2013. New candidates will join the programme each year.

Almost every year a group of non-financial managers follows a course in finance. This course, which is also customised, covers issues of importance to Kendrion, such as risk management, sales, investment decisions and planning and control. In addition, the various business units have implemented training programmes at all levels in the organisation. Kendrion’s management development endeavours to find an appropriate equilibrium between the transfer of internal knowledge and the recruitment of external knowledge.

The development of the managers is followed by means such as annual performance appraisal interviews where the managers’ targets and duties are reviewed and the managers receive feedback on their performance. In addition, managers participate in an individual development assessment.

Dr. Wilhelm Binder Day 2012
The extreme mountaineer, Mr Reinhold Messner, who more than 40 years ago had set forth to conquer the highest summits of the world, offered insights into his expeditions during his presentation as a special guest at the Dr. Wilhelm Binder Day in Villingen, Germany, held on 22 November 2012.

During the day Kendrion presented itself as a global company: the Industrial Magnetic Systems, Industrial Drive Systems, Passenger Car Systems and Commercial Vehicle Systems business units also gave vivid presentations of their operations. In the appropriate settings of a simulated flight, more than 300 customers, shareholders, business partners, professors and students embarked on a trip into the world of modern technology.

During the Dr. Wilhelm Binder Day Kendrion announced that the company intends to strike out in new innovation directions. The measures implemented to promote innovation include the foundation of the Kendrion Academy. This academy aims to further enhance the company’s innovative capacity, spread technical knowledge among the employees and strengthen the ties with universities.

Social policy
Kendrion is and wishes to remain a conscientious and reputable company. Kendrion intends to be a versatile and flexible company for its employees, a company where pleasure in entrepreneurship is combined with clear result targets.

The need to say farewell to temporary or permanent employees, for example due to the current economic situation, can have a great impact for the people involved. Kendrion acts in accordance with the prevailing local conditions and circumstances and with respect for the individual concerned.

Kendrion’s HR policy endeavours to ensure that the composition of the company’s personnel, including the lower and middle management, reflects the geographical spread of Kendrion’s operations. Kendrion attaches importance to the creation of diversity in nationalities, cultures and gender. This diversity also promotes intercultural experience, which is highly compatible with the current internationalisation trend. It is important that Kendrion is a versatile company which reflects society. For this reason any form of preference or discrimination must be taboo.

The importance Kendrion attaches to a good social policy is also demonstrated by the company’s accession to the UN Global Compact that includes labour principles relating to the working conditions of employees. Labour standards, including health & safety promotion, education, absenteeism and staff satisfaction, are also one of the key elements defined by the CSR Board. Kendrion’s CSR Board also includes a delegate from the HR department. Reference is also made to the CSR Report as published on the website of Kendrion. CSR activities also contribute to making Kendrion an attractive employer for (potential) employees.