Fair Employment15 min
We strive to create an engaging and fair working environment, where the rights of our employees are respected and where our employees can leverage their strengths and build their skills.
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 competitive global position, which is why we have a strong focus on people in our corporate strategy. As a company with employees in over 50 countries, we aim to ensure an engaging working environment to be an employer of choice for current and prospective employees. We also ensure that we treat employees fairly and in accordance with our company values, and that we provide them with equal opportunities and fair remuneration.
Our approach towards our employees is governed primarily by our Code of Conduct, as well as by country-based labor regulations and the local employee handbooks, where available. Our Group-wide Responsible Labor Directive regulates the minimum business standards during recruitment, hiring and employment regarding freely chosen employment, working hours, wages, and benefits, the prevention of child labor, freedom of association, and workers' accommodation. Furthermore, the Zero Recruitment Fees Directive regulates the business standards regarding fees and costs associated with recruitment governed by the Employer Pays Principle. The Directives came into force in September 2021.
Engaging our employees
High employee engagement has been proven to lead to increased productivity, fewer workplace accidents, and improved customer satisfaction. A key method for supporting employee engagement is to ensure a culture of open dialogue across the organization.
To monitor any changes in the level of employee engagement, we use the IBM global norm1). Our target is to maintain our Employee Engagement score at or above the IBM Global Norm (71% favorable) until 2027. In the latest Employee Engagement survey “dormakaba dialogue” in 2020, we achieved a score of 70%. The next assessment is planned for 2023.
In FY 2021/22, we focused on including employees in the change process resulting from the new company strategy Shape4Growth. We used employee surveys, known as Pulse Checks, to understand sentiment towards the change process itself and the perceived impact of Shape4Growth in general. For each round of Pulse Checks, a new random representative group of dormakaba employees is selected to take part. The first Pulse Check was conducted in March 2022 in 12 languages with a participation rate of 54%.
The main findings were:
- High level of agreement that the changes connected to Shape4Growth are necessary and will make dormakaba more customer-centric
- Predominantly positive feelings towards the Shape4Growth process
- High level of pride in working at dormakaba
- Need for further clarification of the meaning of the change for each individual employee
- The IBM global norm is a composite of employee responses from 400 companies across organizations from all industries and all geographies. It provides comparative results that represent the average scores across all organizations in the IBM norm database running employee surveys for multiple years.
Fair remuneration and benefits
We aim to establish fair compensation that is determined based on 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. In FY 2021/22 for example, we rolled out benefits during maternity, adoption, and paternity leave in the UK and introduced four weeks' paid parental leave for both mothers and fathers in the USA. As stipulated in the Group Compensation Directive, we refrain from offering excessively low wages (i.e., wage dumping).
An overview of best practice employment-related policies and benefits across the Group can be found in the Policies and Benefits Table.Policies and Benefits
After having conducted social audits in Malaysia and Singapore, we were confronted with the fact that an especially vulnerable group, migrant workers, frequently pay fees to agencies, i.e. for the recruitment itself, travel, passport and visa processing. To protect them, we have developed improvement actions and the Zero Recruitment Fee Directive, which regulates the minimum business standards regarding fees and costs associated with recruitment and was published in FY 2021/22. It commits dormakaba to bear the costs associated with any services rendered by respective migrant worker recruitment agencies. Fees discovered to have been paid by migrant workers have since been reimbursed.
Employee attraction and retention
We strive to create a diverse and inclusive workplace, where everyone can be their authentic selves.Diversity & Inclusion
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.
Further breakdown of fluctuation data can be found in the ESG Performance TableESG Performance Table
In FY 2021/22, a total of 2,560 employees joined the company and 1,975 left within the reporting scope. This corresponds with rates of 17% and 13% respectively, which reflects a higher joiner rate than leaver rate. This can be explained by the large number of joiners through acquisitions within the reporting period.
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 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 the human resources consulting firm Mercer.
In the upcoming financial year, one main focus will be on continuously supporting the business in the change process resulting from Shape4Growth. To gain further insights into this, another Pulse Check is planned for September 2022.
Also connected to Shape4Growth, we will introduce our new company culture. Newly defined behaviors will be integrated into all HR processes such as recruiting and onboarding, the Perform & Grow performance management process, career development, and learning and development. The development of the culture will be continuously measured in the employee engagement survey, dormakaba dialogue. The next survey is planned for 2023. Further, all existing Employer Branding material will be adjusted according to our new company culture, thereby extending our portfolio by adding additional image and video material of our employees which was produced during a photo and video shoot in FY 2021/22. Lastly, we will start the first local rollouts of the dormakaba career websites in Australia and Singapore.