Employment

We offer fair working conditions in which our employees can leverage on their strengths and build their skills. We foster an engaged workforce where we strive to have the right people in the right roles.

Why it matters

Our success is based on the passion and performance of our employees. It is their dedication to deliver excellent solutions to our customers that helps us maintain and further develop our global competitive position, which is why we have a strong people focus in our corporate strategy. As a company with employees in over 50 countries, we must ensure an engaging working environment to be an employer of choice for current and prospective employees. We must also ensure that we treat employees fairly and with respect in accordance with our company values, and that we provide them with equal opportunities and fair remuneration.

Key activities

A key element of our corporate strategy is that we continuously shape a productive and equitable working environment and foster an atmosphere of trust. As we strive to have the right people in the right roles, dormakaba offers fair working conditions in which our employees can leverage their strengths and build their skills. This leads to an engaged workforce and helps to minimize risks, such as loss of know-how and personnel shortages. Our approach toward our employees is governed primarily by our Code of Conduct as well as by country-based labor regulations and the local employee handbook, where available.

Our Human Resources (HR) management team is spread globally – in addition to Group HR, there are HR professionals at the segment level and HR representatives at the local market level in larger countries. Group HR provides strategic direction based on our corporate strategy and develops global best practice programs accordingly. These programs can then be customized and implemented in each segment and region to respond to local market requirements and conditions. The local HR representatives also develop and implement local initiatives and programs suited to the needs of their employees, helping to react to the different local customers and markets as effectively as possible. We continue to invest in technology and business applications that allow us to more effectively deliver services to our employees, including a Group-wide Learning Management System.

Due to the local nature of employment practices, our segments, regions, and countries develop employment policies according to local requirements. Labor regulations and business needs are taken into consideration to find the best and most sensible solutions on a local level. An overview of best practice policies across the Group can be found in the following table.

To provide employees with a working environment in which they can thrive, we focus our activities on the following four areas:

1. Engaging our employees
2. Creating an inclusive and diverse workforce with equal opportunities
3. Fair remuneration and benefits
4. Employee attraction and retention

Engaging our employees

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 order to gauge employee sentiment, engagement, and the potential impacts on well-being during the pandemic, a global Pulse Check was conducted in April 2021. Thirteen survey items covered the topics of (personal) well-being during the global pandemic, the employees’ own individual work situation, sentiment towards home office beyond the pandemic, the company strategy, our value “Customer First”, and confidence in the future of dormakaba. The survey was available in 18 languages and 70% of dormakaba employees participated.

The survey revealed both strengths as well as room for improvement on a global level. The main findings were:

• High confidence in the future of dormakaba
• High satisfaction with safety precautions taken to protect employees from Covid-19 on-site
• Need for more employee recognition and for further promoting a “Customer First” mindset
• Low personal well-being during the pandemic in some countries
• Strong feeling of being part of “one dormakaba” despite majority of office workers still working from home
• Most office workers would like remote working to become a permanent option beyond the pandemic

As a result, a global project team is developing guidance and recommendations on remote working and a hybrid working model. Key questions from the dormakaba Pulse Check will be included in the next dormakaba dialogue to measure progress. 

dormakaba dialogue is a broader Group-wide employee survey conducted regularly to gauge employee engagement and performance enablement. The latter focuses on, for example, whether employees feel they have the required skills, tools, and information they need to do their jobs effectively. After the last survey, conducted in early 2020, team leaders discussed the results in dedicated team sessions to develop actions e.g., on leadership behavior, team topics, processes, and infrastructure, etc. in the financial year 2020/21. HR representatives trained team leaders throughout the company on how best to communicate the results and develop their action plans. Over 850 teams worldwide worked with their survey results and launched more than 1,500 team actions, which they will follow-up on in their individually set time frame.

A follow-up global survey is planned for spring 2022, to measure the effectiveness of the ongoing actions.

In addition to the global employee survey, segments and regions have local solutions designed to gather employee feedback, address employee concerns and grievances, and encourage employee engagement.

Examples of such activities in the financial year 2020/21 included:

• In China, AS APAC implemented an “Employee of the Quarter” award program to show appreciation for outstanding employees that live our company values. In Japan, employees are invited to special lunch sessions with local management to share their ideas and suggestions for improvement.
• In France, AS EMEA provides employees with an opportunity to engage with the local community through thier work with the Priority Education Network. Around 30 dormakaba employees volunteered to conduct workshops and training sessions at our premises for schoolchildren to gain insight into our industry.
• In addition to dormakaba dialogue, Key & Wall Solutions organized weekly video calls with no specific agenda for all staff in Australia and Malaysia to offer an open forum for employees to share their concerns and anxieties related to the current state of the business but also related to the impacts of the Covid-19 pandemic.

Creating an inclusive and diverse workforce with equal opportunities

Our global presence and operations in various markets mirror our commitment to promote a diverse and inclusive workforce. As our Code of Conduct states, we respect the equality of people and cultures. In the financial year 2020/21, female employees represented 29% of the total workforce. Employees aged between 30 and 50 make up the majority (55%) of employees represented in this report.

The topic of diversity and equal opportunity is driven by local activities. Examples of activities in the financial year 2020/21 included:

• AS AMER implemented a partnership with a leading provider of diversity recruitment to promote all open positions in the USA on minority and diversity job boards to reach a broader, more diverse candidate pool. Additionally, an intercultural training module was launched at our Phoenix site aimed at increasing intercultural understanding with the Hispanic culture.
  
• AS DACH started a scholarship program in which engineering students from Singapore complete a practical semester at one of our facilities in Germany, in order to support intercultural understanding of both markets.
• AS EMEA’s gender diversity program began its second year. It aims to promote more women from within our own ranks, especially in commercial and general management positions. A series of actions to start addressing the diversity challenges has been developed, including a review of recruitment processes to remove gender biases in job ads and interviews, increased focus on female talents in career progression and development, and actions to strengthen the self-affirmation of our female talents. One initiative is the Female Leaders Network which now has 54 participants. The focus is on self-development, mentoring, culture, and communication. The network has regular meetings to collaborate and share experiences, work on self-development, diversity projects, and learn from inspiring guest speakers.
  
• Key & Wall Solutions conducted trainings on equal employment opportunity, diversity, and anti-harassment in the USA.

Employees

Board of Directors

 Executive Committee

Fair remuneration and benefits

We aim to establish fair compensation that is determined based on the job function and relevant local market benchmarks. It is not influenced by personal attributes such as age, nationality, or gender. The global grading system ensures that functions are evaluated in a consistent manner across the organization. In addition, we provide locally specific benefits and welfare programs. As stipulated in the Group Directive Compensation, we refrain from offering excessively low wages (i.e., wage dumping).

Examples of our fair remuneration and benefits activities that have continued in the financial year 2020/21 included:

• In Singapore, AS APAC has continued its pledge to the Fair@Work Promise started by the Tripartite Alliance. This is a commitment to fair employment practices based on the five principles of merit-based and non-discriminatory recruitment, respect for employees, fair opportunity for training and development, fair rewards and incentives, and adherence to labor law.
• The AS DACH segment has an Equal Pay for Equal Work policy in place, according to national legislation in Germany, Austria, and Switzerland. 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 Swissmem – the Swiss association of mechanical and electrical engineering industries. The analysis compares all the salaries of the member companies who use Switzerland’s general collective agreement as a basis for employment.

Employee attraction and retention

We provide our employees with long-term professional development opportunities in order to attract and retain a qualified workforce. This is vital to the company’s success. When filling open positions, promoting from within our own workforce is preferred.

Examples of recruiting and career opportunity activities in the financial year 2020/21 included:

• In AS APAC, management recruits are provided with varied training and learning opportunities. A special training program has been implemented for younger employees showing management potential, aimed not only at developing their professional skills but also at shaping their behavior and mindset to be exceptional contributors to the company and society.
• In order to better understand the reasons why employees end their employment relationship, AS DACH in Switzerland implemented an exit questionnaire, which will be used for evaluation and improvement of employee retention. In addition, several measures were implemented to retain our employees during the Covid-19 pandemic, including a bonus paid to compensate for restrictions in Austria and Germany, free testing, and support for vaccinations.
• AS EMEA has launched an employee initiative called #profitUP in January 2021. This is a contest for the best ideas to improve sales or profitability and to develop creativity and entrepreneurial thinking among all employees by inviting them to make suggestions for business improvement. The best ideas that are also realistic to implement within specific timelines and show measurable impact are awarded with a cash prize and widely communicated. In addition, New Work@dormakaba has been launched in Switzerland, where a step-by-step approach to the world of Work 4.0 has been made, addressing topics like annual working time and more flexible forms of work.
  

Fluctuation

In financial year 2020/21, a total of 1,492 employees joined the company and 1,700 left in the reporting scope. This corresponds with rates of 10% and 12%, respectively, which was a higher leaver rate than joiner rate. Both rates are in line with those from the previous financial year.

Employee fluctuation in Asia and the Americas was higher than in other regions, as in previous reporting periods. In the Americas, this is attributed to continued consolidation of manufacturing activities. The higher fluctuation in Asia Pacific is to be expected based on regional workforce trends.

In addition, 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 workforce aged under 30 again 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.

Our performance

Since the beginning of the Covid-19 pandemic, large focus was put on defining guidelines and specific measures such as strengthened safety precautions in the production environment as well as for sales staff and service technicians. Further guidelines adressed office workers working from home for a longer period of time, and travel restrictions. Another integral part was and still is providing our employees with informational material on safety precautions and safe behavior to avoid the spread of the virus, and continuously communicating updates to related measures, stay-at-home policies or lockdowns set by local governments. Further, we continue to put a strong focus on offering regular testing possibilities to our employees, and we have established a clear Group-wide guideline for supporting Covid-19 vaccination as a responsible employer and corporate citizen. 

The Covid-19 pandemic has slowed regular HR processes and plans for the financial year 2020/21, such as in extending our portfolio of employer branding measures. Nonetheless, we are continuously making progress in several areas. The follow-up process of the second round of dormakaba dialogue was successful despite having to postpone necessary in-person team sessions and conducting the majority of sessions as virtual meetings. 

Following the successful rollout of an eRecruiting system in Canada, Germany, and the USA in the financial year 2019/20, the system was rolled out in Austria and Switzerland, and is planned for further regions and countries.

Outlook

As mentioned above, the third round of dormakaba dialogue will take place in spring of 2022. The implementation of actions planned during the last round of dormakaba dialogue is an ongoing process. Further, segments and management teams will continue to work with the results of the dormakaba Pulse Check and act on them where needed.

A global communication and implementation timeline for the abovementioned remote work project is in preparation. This will be accompanied by training measures on leading remote teams and on working remotely. Further eRecruiting rollouts in the AS EMEA and Key & Wall Solutions segments for France, Spain, the UK and the Middle East and ScanBalt are planned for the financial years 2021/22 and 2022/23.

As part of our Talent Development Program, a project group is working on a proposal for a global strategic framework on the topic of diversity and inclusion. Project results are expected for the financial year 2021/22. 

AS AMER plans to deploy unconscious bias training sessions for management, as well as to develop functional career ladders that aid in an employee’s career path and development plan. Exit interviews will be carried out to gain a deeper, more holistic view of why employees leave and how we can prevent regrettable departures.

AS EMEA will continue its work on gender diversity, introducing an eLearning module on constructive behaviors and further virtual learning on handling microaggressions and difficult situations. Another major focus will be on reducing the social silence on gender diversity, with all senior managers having dialogue sessions with their female leaders and also working on the concept of allyship. In addition, the mentoring program “Time to Grow” will kick-off where members of the Female Leaders Network will be matched with senior leaders from across the business, who will guide and support them with their career development.

Promoting gender diversity through the Female Leadership Network

The Female Leadership Network in the AS EMEA Segment was launched in September 2020 to support the career development of female professionals and improve the gender diversity of dormakaba’s leadership pipeline.

The Female Leadership Network focuses on a wide range of topics, including personal development, gender stereotyping, communication, allyship, and mentoring. The program aims to enable women in mid and senior leadership positions to have the skills, confidence, and support they need to fulfil their professional ambitions.

The virtual workshops utilize traditional training methods to uncover the diversity and inclusion challenges faced, with a focus on dialogue sessions, self-discovery, teamwork, and relationship-building. The meetings offer an open and inclusive environment for women to develop. Learning with their peers and from the invited guest speakers enables the participants to master challenges along their career paths and utilize their strengths and values to lead.

The network is also working on projects to improve inclusion, generally within AS EMEA. The most recent initiative of the network is the “Time to Grow” mentoring program, where female participants are matched with senior leaders from across the business, who guide and support them with their career development. This is also an opportunity for reverse mentoring and knowledge sharing, as it allows the senior leadership to learn about challenges female leaders are facing across the regions. The current workshops mostly include women in mid to senior leadership positions from various functions across the AS EMEA Segment, with future waves likely to focus on more junior female leaders and talents from atypical career paths.

“Inclusion initiatives help us to improve our corporate culture, and how we treat people. Applying what we learn about gender diversity to further types of diversity initiatives ultimately helps us to create a more inclusive workplace and become an employer of choice in our industry.”

Tracey Storr, Deputy Vice President Human Resources UK, Ireland & BeNeLux