Sustainability report 2019/20

Ensuring success with targeted personnel management

Employee satisfaction and corporate co-determination in focus

An optimum system of personnel management reflects how valuable a resource employees are for a company. The way in which working conditions are treated is an indication and manifestation of the standing that personnel actually have. This is why personnel management plays a decisive role at KHS. 

Our human resources management system is specified centrally by the group for all production sites. This ensures that all of the necessary IT and data privacy standards are met. The requirements are defined by Salzgitter AG with the group mandate, a data administration system for personnel issues and processes. The Central Human Resources Division controls the issues that concern all production sites centrally from our headquarters in Dortmund. This is where our strategic functions are also anchored. Proximity to employees and user departments is ensured by HR officers appointed at the respective plants who exchange information on goals, measures and developments on a regular basis. 

We are convinced that non-financial goals also contribute to the success of the company in the long term. This is why not only key economic figures but also ecological and social objectives are important when drawing up agreements with our executive managers. For several years now we have thus fixed annual targets group-wide in order to intensify the further training of our employees and further reduce the number of accidents. 

Co-determination on an equal footing  

We find it particularly important to inform and involve our employees at an early stage in order to identify together potential for the further development of working conditions and the working environment. The way in which personnel are involved varies from plant to plant in order to respect the different legal requirements. In Germany, each production site has works council committees that represent the young person’s and trainee representatives (JAV) and severely disabled person’s representatives (SBV) and belong to the joint works council, joint JAV and joint SBV respectively. If there are larger changes to the company, we work towards a fair reconciliation of interests and social compensation plan together with the employee representative committee. There have been no major changes to the company within the reporting period. Special topics, such as occupational health and safety and basic and further training, are dealt with in dedicated committees. 

At our German production sites a number of company agreements have been negotiated with the works council to strengthen employee interests. They govern the rights, obligations and obligatory standards for personnel. These include company agreements on the following topics, among others: 

  • Workplace Health Promotion 
  • Training 
  • Inclusion 
  • Addiction Prevention 
  • Company Suggestion Scheme 
  • Continuous Improvement Process (CIP). 

One important aspect of our HR strategy is the KHS code of conduct that focuses on the respectful treatment of one another, among other things. It is described in detail in the chapter on compliance.  

As we find it extremely important that the agreed regulations – both our code of conduct and our company agreements – are actually adhered to, audits and tests are a matter of course for KHS. These include: 

  • Assessments for exceeding work time limits 
  • Internal company revisions 
  • Cooperation with the employers' liability insurance association 
  • Internal occupational health and safety audits 
  • External audits and certificates such as EcoVadis. 

Convincing working conditions a mark of esteem 

Our day-to-day dealings with one another, the working conditions on site and the salaries and additional benefits we provide are seen by our employees as a mark of our esteem and fairness. If we are to commit our employees to the company in the long term, it is very important that they have a sense of purpose in their own work and receive recognition for it. Long years of service to the company and a low fluctuation rate are both indicators of the level of satisfaction among our employees. 

Our employees receive an attractive salary – whether they are on the regular pay scale or not. Salaries consist of a fixed sum and a fair, performance-oriented allowance. The respective collective wage agreements of the metal and electrical industry apply, to which KHS is committed thanks to its membership of various trade associations. Moreover, our company car guidelines clearly regulate when employees can make use of one of the vehicles in our fleet. 

Further extra benefits include our company pension schemes, such as the MetallRente and SZAG Model programs, and an occupational disability and accident insurance plan. Our employees can make their own contribution to their later financial situation through our company pension program: here, they save a percentage of their salary for their retirement that is then topped up by the company.  

18 years

Average years of service for the company

46 Years

Average age of the core workforce