Employment

dormakaba’s Human Resources (HR) management is spread globally – in addition to Group HR, there are HR professionals at the segment level and local HR representatives in the markets. Group HR bundles strategic issues based on our corporate strategy and the needs of local HR representatives and develops best-practice programs accordingly. These can then be customized and implemented in the segments and regions per the requirements and conditions in the local markets. The company has also made technological investments in business applications to more effectively deliver services to our employees, including a Group-wide HR data management system launched in the reporting year 2017/18.

In addition to this, the local HR representatives also develop and implement individual initiatives and programs suited to the needs of their local employees, to react to the different local customers and markets as effectively as possible. With the transition to the GRI Standards, dormakaba is paying special focus to the management approaches on a Segment level in this section.

High employee engagement has been proven to lead to increased productivity, decreases in workplace accidents and improved customer satisfaction. A key method to support employee engagement is to ensure a culture of open dialogue across the organization.

In the 2017/18 financial year, dormakaba launched its first Group-wide employee survey after the merger. The aim of the survey was to gauge (1) employee engagement and (2) performance enablement. The latter focuses on, for example, whether employees have the required skills, tools and information to do their jobs adequately. The anonymous survey focused on topics such as change management, the work environment, management (including the direct supervisor), strategy and values.

72% of dormakaba employees in 52 countries participated in the survey, which was available in 18 languages. The dormakaba Employee Engagement index was 67% (IBM Global Norm: 71%). The Performance Enablement index was 68% (IBM Global Norm: 74%). The results differ between Segments, between regions, countries and functions. However, the survey revealed strengths as well as room for improvement on a global level.

One key strength is that managers and employees are perceived to act according to dormakaba values. The relationships between managers and employees are in general characterized by our value and brand promise: trust. According to the results, we should jointly work on improving collaboration between departments and on further developing recognition programs.

Based on the overall global results, the Executive Committee has identified the following fields of action and commitments:

• encourage and demand closer collaboration between departments
• continue to work on constructive leadership behavior
• encourage ownership and accountability to improve work processes
• define ways to help people work within the operating model (e.g. through training)

Besides the global actions, team leaders are asked to discuss the results in a dedicated team session to develop actions on leadership behavior, processes and infrastructure as needed (Disclosure 102-43, 102-44)

Type of Employment

The data in these facts and figures represents approximately 70% of all dormakaba employees as at 30 June 2018, and which are located at the 48 sites in the reporting coverage. The total workforce in this scope consisted of 11,520 employees. While the majority of dormakaba's personnel work full-time and on the basis of permanent contracts, nearly 7% have part-time engagements. 62% of the employees in scope were unionized or covered by collective bargaining agreements (Disclosure 102-41). In addition, dormakaba developed nearly 400 apprentices, trainees and interns, and employed over 700 contract workers at the sites in scope during the 2017/18 financial year.

Workforce composition (headcount)^{1 )}

Employees

Board of Directors

 Executive Committee

Diversity

dormakaba's global presence and operations in varied markets mirror our commitment to promote a diverse and inclusive workforce. In the 2017/18 financial year, the share of female employees was 32% of the workforce in scope.

At 56%, the majority of employees represented in this report are between 30 and 50 years of age. dormakaba provides our employees with long-term professional development opportunities in order to retain an experienced workforce. This is critical to the company's success.

Fluctuation

In financial year 2017/18, a total of 1,371 employees left the company and 1,306 joined in the reporting scope. This corresponds with rates of 13% and 12%, respectively.

Employee fluctuation in Asia and the Americas was higher than in other regions. This is attributed to restructuring measures, and relocation of manufacturing activities.

The workforce aged under 30 years shows higher joining and leaving rates compared to the other age groups. This is consistent across all regions, and congruent with findings from a study on general workforce turnover trends periodically conducted by human resources consulting firm Mercer (available here). 

Fluctuation is calculated with permanent staff. In China, employees are usually appointed on the basis of fixed-term labor contracts before being eligible for an indefinite contract. This results in a temporal shift of the fluctuation rates for Asia Pacific and to a certain extent overall, since employees with permanent contracts joining and leaving dormakaba are counted only after their contracts have been converted (usually after the completion of two consecutive fixed-term contracts, in accordance with Chinese Labor Contract Law).

The purpose of this management approach is to create a productive and equitable work environment with general guidance for the employer/employee relationship that is specific enough to be equitable, but flexible enough to meet the business’ and individual employee’s needs. AS AMER aims to foster a positive working environment and to be an employer of choice within the market for both current and prospective employees. The approach also ensures we are equitable in the treatment of candidates and employees throughout their professional life cycle with us.

The topic of employment is managed by line managers in partnership with Human Resources through the USA, Canadian, Brazilian and Mexican entities of AS AMER. Employment is governed first by the dormakaba Code of Conduct, then the country-based labor regulations and the employee handbook, if available. Policies are compliant with local employment law and in some cases, go beyond it.

Each local entity in the USA and Canada has an employee handbook which details employer and employee commitments related to the employee relationship. At the end of the 2017/18 financial year, an updated employee handbook applicable to all AS AMER employees in the USA was released, ensuring country-wide processes and benefits.

The consolidated employee handbook for AS AMER employees in the USA contains the following employer commitments:

• Equal Opportunity Employment
• Non-Harassment / Non-Discrimination
• Drug Free / Alcohol Free Workplace
• Open Door Policy
• Whistleblower Policy

Employee handbooks for employees in Canada contain the following employer commitments:

• Equal Opportunity Employment
• Non-Harassement / Non-Discrimination
• Drug Free / Alcohol Free Workplace
• Open Door Policy
• Training and Professional Development Policy
• Health and Safety Policy
• Performance Management program
• Maternity, paternity and parental leaves
• Statutory Holidays and vacation leave
• Group Insurance Plan
• Pension Plan

Related projects and processes in the USA and Canada include, for example, annual salary reviews, town hall meetings, onboarding, performance management, employees’ engagement activities, plant tours, etc. These actions are sometimes systemic (like salary reviews and performance assessment), sometimes ad hoc and tailored to the local situation. In the 2018/19 financial year, AS AMER will be releasing an employee handbook that covers all employees in Latin America.

Further policy & benefits

Grievance mechanism

The mechanism for reporting grievances is included as a part of our employee handbook, and includes escalation points starting with the employee’s line managers, then moving to their HR Business Partner, then to the segment HR Lead. This grievance mechanism is intended to cover any alleged offensive behavior between employees of dormakaba or between partners, vendors, contractors, customers or other persons affiliated with dormakaba and its employees. This mechanism also covers any grievances from employees related to employment, compensation, or performance, and formal complaints.

Evaluation of the management approach

The segment maintains an open-door policy to receive feedback from employees on the topic and acst accordingly. There is no formal evaluation of results or for adjusting the approach to this topic.

The aim of the management approach is to treat employees fairly and with respect, and to provide employees with equal opportunity to be considered for training and development based on their strengths and needs for them to reach their full potential. The Segment manages most aspects of employment through HR functions in China North Asia, Southeast Asia (ASEAN), South Asia, Pacific, and Wah Yuet (Taishan, China), reporting to the Segment HR Lead. The regional HR representatives provide oversight and are responsible for all documentation relating to wages, working conditions and hiring. The management approach differs based on the regional setting.

Singapore, for example, follows the Tripartite Guidelines on Fair Employment Practices. Recruitment is merit-based and does not take age, race, gender, religion, marital status and family responsibilities, or disability into account. Recruitment needs are evaluated monthly.

In the South Asia region (predominantly India), key targets related to employment include, for example, 100% achievement of employee productivity targets and a maximal 10% fluctuation rate. In terms of recruitment, candidates go through multiple levels of assessment which may include aptitude tests and psychometric assessment, in addition to personal interviews. Benefits and terms of employment are aligned to local regulations. Compliance with local labor law is tracked via a legal register in India.

Entities in China have formal recruitment and on-boarding policies, as well as an employee handbook (effective since 2014). HR management places special emphasis on providing a safe working environment, offering annual medical exams to staff. A budget is allocated to employee engagement activities such as team building and communication campaigns. The production facility in Taishan has opened a new employee recreation center in the 2017/18 financial year.

The pacific region has recently committed to upgrade their employee management systems to facilitate greater efficiency and reportability across the business. Once implemented, this system will bring into one place all the employee management data and allow reporting beyond regulatory compliance. The new system will also make it possible to offer a wide variety of work schedules with automatic time management and payroll calculations, creating more accurate and cost-effective staff management options.

Further policy & benefits

Grievance mechanism

The pacific region has developed a draft Employee Counselling and Discipline Policy to provide a framework and process for managing grievances within the organization. This policy will be used in conjunction with the dormakaba CoC to address any concerns that may arise. China North Asia implements grievance mechanisms in conjunction with trade union representatives. In addition, the production facility in Taishan has implemented a business ethics mailbox, hotline and webchat service. If any employee feels he/she is being mistreated, he or she can turn to the ethics system for help. Confidentiality is maintained to the fullest practical extent.

Evaluation of the management approach

The segment maintains an open-door policy to receive feedback from employees on the topic and acts accordingly. In addition, feedback is received through the dormakaba dialogue. In South Asia and China North Asia regions, local governmental agencies conduct compliance audits. No cases of non-compliance have been reported. Employees in some locations in China North Asia have the option to provide feedback directly and may also appeal to external bodies to have decisions reviewed. Outcomes are evaluated as a part of management reviews with corrective actions taken as appropriate. There is no further formal evaluation of results or for adjusting the approach to this topic.

The aim of the Segment AS DACH management approach is to create an inspiring and performance oriented environment and foster an atmosphere of trust and respect driven by constant feedback and opportunities to grow. This will help avoid risks such as loss of know-how and minimize personnel shortages. There is a strong commitment to compliance on local labor laws in Europe (Austria, Bulgaria, Switzerland and Germany) as well as for its plants in Asia (China, Malaysia and Singapore). Segment AS DACH human resources management is strongly aligned to the collective bargaining agreements in place in those countries, especially in Austria, Germany and Switzerland.

The segment has an “equal pay for equal work” policy in place, according to national legislation in Germany, Austria, Switzerland and also the European Union. A home office policy to enable more flexible working hours and locations is planned in the midterm. Amendments to general conditions of employment and fringe benefits, such as staff discounts on public transport, are planned in the short and medium term.

Germany and Switzerland offer an Employee Assistance Program to support employees and their relatives in case of psychological, addiction or financial problems. The offering includes a hotline where employees or their relatives can get advice from professional experts.

Further policy & benefits

Grievance mechanism

In addition to the reporting channels offered in the dormakaba CoC, Segment DACH has further grievance mechanisms in place as part of collective bargaining agreements in the individual countries as well.

Evaluation of the management approach

ISO 9001 certification is in place in various sites in Austria, Germany and Switzerland, which is used to evaluate the management approach. Related audits and corrective action plans are used to adjust the management approach as necessary. Monthly performance reviews and feedback gathered during exit interviews is also taken into consideration.

Direct feedback from employees is also used in the evaluation of the management approach. One such feedback in Switzerland was the perceived lack of internal career opportunities. This is partly due to a need for improving communication on vacancies internally and also because managers are wary to lose top talent to other departments. Therefore, a project has been launched together with Product Development to increase communication on internal opportunities for specialists and managers in the field of software and hardware engineering. Switzerland and Austria aim to increase filling open positions through internal talent by 10% by 2020.

Further, in Switzerland an annual salary survey is carried out by an independent third party, as is standard practice for all companies with membership to the Swiss association of mechanical and electrical engineering industries, Swissmem. The analysis compares all the salaries of the member companies who use Switzerland’s general collective agreement as a basis for employment. Salary differences between the regions, gender and job function (for example, accounting or IT) are analyzed. The results are then integrated into the subsequent salary increase process once a year.

Segment AS EMEA aims to be fair, transparent and legally compliant in its employment practices, and to be acknowledged as an employer of choice. The segment manages most aspects of employment through regional HR functions in CEERT (Central and Eastern Europe, Russia and Turkey), MEA (Middle East and Africa), South Europe, UK, Ireland and Benelux, and ScanBalt, reporting to the Segment HR Lead.

The focus in CEERT is on fostering long-term employment, recruiting temporary staff only as a last resort. HR processes are described in a consolidated handbook for the region, outlining recruitment, performance reviews, salary reviews and an incentive scheme.

The MEA region, including UAE, Kuwait, Saudi Arabia, Qatar, and South Africa, exceeds minimum statutory entitlements such as annual leave, compassionate and cultural leaves, and healthcare coverage of dependents. Salary review and incentive schemes are highly structured and documented and take international best practice into account. This also includes a recently launched recognition program that rewards outstanding behavior aligned with dormakaba values.

For South Europe (France, Italy, Iberia and Morocco), a consolidated employee handbook was released in the 2017/18 financial year. France has further policies related to performance reviews, salary reviews, incentive schemes, professional fees, disciplinary rules and company cars. A key aim in the 2018/19 financial year is to implement performance review processes in Italy, Iberia and Morocco.

In region UK, Ireland and Benelux, Belgium has a balanced scorecard approach to human resources management. This approach builds human resources strategy based on four pillars: the financial perspective, the customer perspective, the business process perspective, and the learning and growth perspective. One outcome has been to mandate teambuilding activities for all employees. A “person of trust” program has also been introduced, which pairs people with volunteers with whom they can have a personal chat in case of personal problems. On the process side, new digital HR tools (for example, a tool to request leave) have been introduced.

Further policy & benefits

Grievance mechanism

There is a grievance procedure in South Africa and another one for the Middle East documented in the respective employee handbooks. In the UK, policies cover disciplinary and appeals processes as well as grievances. The grievance policy is in line with the ACAS code of practice.

Evaluation of the management approach

The results of the dormakaba dialogue are used to evaluate the management approach in general within the segment. Belgium has launched an additional “well at work” survey, and follow-up of action plans occur in every management team meeting. Exit interviews are also conducted.

In CEERT and South Europe, the regional management team receives a 360° feedback on their leadership styles every 18 months, to improve their management capabilities and instill a culture of empowerment and trust in their teams. Such programs are planned in the future in the other EMEA regions (MEA, ScanBalt and UK, Ireland & Benelux).

Key & Wall Solutions (KWS), with the business units Key Systems and Movable Walls, has operations in Europe, Asia, and the Americas.