Kendrion Worldwide

Division Automotive

Kendrion N.V.

Kendrion N.V. is a public limited liability company incorporated under the laws of the Netherlands, with its registered office in Zeist.

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HRM

Our people

Kendrion staff worldwide

Kendrion's employees are the company's most valuable resource. It is essential for Kendrion to attract and retain the right people. The company aims to provide a motivating, safe and attractive working environment for employees. This leads to improved performance and stability for Kendrion. It offers employees a good income, a productive occupation and well-being.

The HR activities can be summarised as shown below:

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Competitive and engaged workforce

It is of key importance to find the right people with the right capabilities. Further, Kendrion firmly believes that diversity improves the quality of collaboration and decision-making.

Recruiting process

Kendrion operates in markets where there is a shortage of skilled engineers and other specialists. Kendrion’s operating companies intensified their presence and marketing in schools, universities and HR fairs and increased their PR activities. A new career opportunities website and an application tool were implemented. This was aimed at increasing the recognition of Kendrion’s employer brand.

Flexibility and staffing

Kendrion is convinced that companies which are most successful in adapting to rapidly changing circumstances have the best prospects for the future. This is why Kendrion devotes a great deal of effort to incorporating flexibility in its staffing and staffing costs, which may include fixed-term contracts, temps, part-time solutions and shift models. Kendrion works closely with its works councils to discover new ways to keep costs as flexible as possible. The company actively monitors the flexibility of each business unit.

Diversity

Kendrion attaches importance to achieving diversity in various ways, for example with respect to nationalities, cultures and gender. This diversity promotes better decision-making and the exchange of intercultural experience and ideas. In 2016, Kendrion had employees of at least 40 nationalities. 50% of all Kendrion’s employees are women. The percentage of women in key management positions in Kendrion’s operating companies is still relatively low. Kendrion advocates the appointment of more highly qualified women to company management positions. When recruiting staff for management positions, Kendrion expressly endeavours to search for highly qualified women by means which include intensive contact with universities. However, the number of women who are following or have followed a technical education and are available for management positions in the company is low.

In the Netherlands, legislation is in force to provide for the balanced participation of men and women in the management and supervision of ‘large’ public and private limited liability companies. Balanced participation is deemed to exist when at least 30% of the seats are held by men and at least 30% by women. Kendrion’s Supervisory Board reflects this gender balance; its Executive Board does not. The imbalance in the Executive Board is partly due to
the limited number of members. In accordance with the Netherlands Corporate Governance Code 2016, Kendrion will implement a diversity policy that includes the Management Team.

Kendrion does not tolerate discrimination by gender, race, religious denomination, remuneration or any other means when hiring new staff or in dealings with staff in positions
of equal importance. Kendrion promotes the formation of a workforce and management that reflects the composition of the local population as closely as possible. The company’s home market, Germany, and also the USA, have, in particular, implemented detailed and stringent anti-discrimination legislation. Anti-discrimination officers have been appointed where necessary. No reports of incidents of discrimination were made in 2016.

Attraction & Satisfaction

Motivated and satisfied employees are essential to ensure future success. That is why Kendrion focuses on competitive remuneration, good labour conditions and staff satisfaction. Kendrion expects this will also help to attract new employees and students to work for Kendrion.

Remuneration

Kendrion offers its employees attractive remuneration packages that are in line with the local market and based on job-specific requirements, without applying any differentiation between men and women. A bonus scheme has been implemented for top management that is based on the company’s performance and on individual performance targets. These also include CSR targets. Kendrion has also implemented a share scheme for senior management.

Staff satisfaction
Kendrion has implemented a variety of staff loyalty measures at all its plants worldwide. These measures range from individual support to specific programmes and opportunities to the benefit of all Kendrion employees.

In order to measure the company’s staff satisfaction properly, Kendrion launched a group-wide employee satisfaction survey for the next few years. In recent years, at least 80% of the total workforce participated in staff satisfaction surveys. The aim for 2017 is a further increase in the number of participating group companies and to reach at least a 75% group-wide satisfaction score. The three-year Taking Responsibility plan aims at involving all operating companies in the process and this will also create good benchmark opportunities. Appropriate action will be taken based on the outcome of the surveys.

Family and career
Kendrion continually strives to improve the compatibility of its employees’ work and family commitments. The company has, for example, introduced flexible working hours for employees who need to care for family members. As far as possible, Kendrion offers individualised work schedule solutions to certain employees with young children who need day care.

Kendrion is endeavouring to ensure that employees do not need to choose between ‘family or Kendrion’ but rather can focus on ‘family and Kendrion’.

Employee representation

Works councils or employee representatives that have been installed at Kendrion’s largest operating companies in Germany, Romania and Austria are, in accordance with the local labour legislation, involved in a wide range of employment, health & safety and social issues. About 60% of all Kendrion employees are represented by these works councils and employee representatives. Approximately 1,400 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. In general, Kendrion has a good relationship with the works councils and the trade unions.

Ready for the future

Management development

Kendrion assigns high priority to management development. The corporate management development programme is supported by the Kendrion Executive Programme, a customised, international, modular 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.

It is also important for Kendrion to develop talented employees for future management roles. This is why the company implemented the ‘Kendrion High Potential Programme’ in 2012. This is a modular training programme covering a period of three years. The first group of fifteen selected high-potential employees graduated in 2015. The second group will finish their training programme at the end of 2017.

Almost every year a group of non-financial officers follows a course in finance. This course, which is customised, covers issues that are important to Kendrion, such as risk management, investment decisions, working capital management and planning and control. In addition, the various business units have implemented training programmes at all levels in the organisation. The average hours of training per employee was 20 in 2016.

The development of managers is supported by various processes including annual performance appraisal interviews in which the managers’ targets and duties are reviewed and they receive feedback on their performance. In addition, managers participate in an individual development assessment.

Kendrion has implemented a web-based tool that will support top management succession planning. It includes, among other things, a global database of the top 50 managers and the High Potential participants and describes personal development topics and needs.

Professional HR organisation

Kendrion’s HR organisation is decentralised and local management bears the responsibility for the local HR activities within specified guidelines. A number of duties are coordinated on a central level by the international HR department which is located in Villingen, Germany.
These duties relate primarily to the (development of) senior management, succession planning and the improvement of opportunities for recruitment.

The international HR department monitors developments in trends and regulations and tries to translate these into policies and tools for the organisation as well as further training for the HR officers in the operating companies. More and more web-based tools are used to collect data and to measure improvements.

The HR department also focuses on closer cooperation between the operating companies to improve exchanges and enable colleagues to benefit from each other’s knowledge and skills.

Kendrion devotes a great deal of attention to internal communication of its strategy, corresponding plans of action and progress towards strategic goals. Kendrion’s corporate magazine ‘Magnetised’ is published for all staff three times a year.

The progress of the CSR targets is monitored by the (HR representative in the) CSR Board together with the international HR department.

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 key elements of the Corporate Social Responsibility programme 2015 - 2017 ‘Taking Responsibility’.