Management Report & Annexes | Fundamental Information About the Group

7. Employees

Our business success is largely attributable to the knowledge, skills and commitment of our employees. It is their ability to innovate and their willingness to embrace continuous development that drive our position as a world-class innovation company. This is clearly reflected in our new employer branding: “Passion to innovate | Power to change,” which shows what the Bayer Group expects of its employees and what it can offer them. It translates Bayer’s mission statement “Science For A Better Life” into the world of work. Following introduction in China, Brazil, Germany and the United States, it will be in use worldwide by the end of 2015.

Employees by Region and Gender 2014

Targeting talents

We create a working environment where everyone can utilize their full potential, drive forward innovations and achieve an excellent performance. That is how Bayer attracts the most talented employees worldwide and retains them in the company in the long term. In total, the Bayer Group hired more than 15,500 new employees in 2014.

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New Hires1 by Region and Gender [Table 3.7.0-1]
Women Men Total
2013 20142 2013 20142 2013 2014 2
Region
Asia/Pacific 2,668 1,745 4,109 2,758 6,777 4,503
Europe 3,050 2,717 3,332 3,104 6,382 5,821
Latin America/Africa/
Middle East
1,093 1,080 1,669 1,670 2,762 2,750
North America 1,256 990 2,265 1,510 3,521 2,500
Total 8,067 6,532 11,375 9,042 19,442 15,574
1 converted into full-time equivalents (FTE)
2 As of 2014 interns are no longer accounted for in the new hires data.

Our success in recruiting employees is attributable to our attractiveness as an employer, which was once again confirmed by numerous awards around the world in 2014, for example in Brazil and Germany.

In addition, it is due to our foresighted recruitment policies in all countries where we operate. We maintain close contact to leading universities throughout the world to draw the opportunities offered by Bayer to the attention of gifted students as early as possible. In some regions, this also enables us to selectively cover our recruitment needs. In 2014 we expanded our activities in Taiwan, Hong Kong, Finland and the Philippines. Raising our profile in this way encourages an increasing number of young people to apply to Bayer, so we are not currently facing a significant skills shortage in Germany. Nevertheless, as a prudent company we are already addressing the foreseeable consequences of demographic change by stepping up our activities to recruit staff, especially from the younger generation, retain knowledge in the company and foster the health of our employees worldwide.

We therefore give young people an opportunity to gain an insight into working for our company at an early age. Overall, Bayer provided around 3,100 demanding professional internships to students around the world in 2014. We also train young people for more than 20 different occupations. In Germany alone, nearly 900 young people embarked on a vocational training course at Bayer in 2014. We intend to step up this commitment in the coming years.

Employees by Age Group           [Table 3.7.1]
Age in years < 20 20–29 30–39 40–49 50–59 > 60
2013 0.2% 15.7% 29.8% 29.1% 22.2% 3.0%
2014 0.1% 15.8% 30.2% 28.2% 22.3% 3.4%

Present employee data

On December 31, 2014, Bayer had around 118,900 employees worldwide. This increase of just over 5% compared with the previous year was mainly driven by acquisitions. In Germany there were 35,800 employees (2013: 35,300), which was 30% of the total Group workforce.

Employment Data1   [Table 3.7.2]
  Dec. 31, 2013 Dec. 31, 2014
  FTE FTE
Employees by region    
Europe 53,274 55,207
North America 15,196 16,317
Asia/Pacific 27,684 30,436
Latin America/Middle East/Africa 16,212 16,928
Employees by corporate function    
Production 45,616 49,288
Marketing and distribution 44,225 46,417
Research and development 13,509 14,026
General administration 9,016 9,157
Total 112,366 118,888
Apprentices 2,538 2,566
2013 figures restated
1 The number of employees on either permanent or temporary contracts is stated in full-time equivalents, with part-time employees included on a pro-rated basis in line with their contractual working hours. As of 2014, interns are no longer accounted for in the figures.

The breakdown by subgroup was as follows in 2014:

Employees by Segment 2014

Of the total Group workforce, 113,700 employees had permanent contracts while 5,200 had temporary contracts.

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Employees1 by Employment Status, Region and Gender 2014     [Table 3.7.2-1]
  Permanent employees Temporary employees
  Women Men Total Women Men Total
Europe 19,600 33,100 52,700 1,100 1,400 2,500
North America 6,300 9,700 16,000 100 200 300
Asia/Pacific 10,600 18,500 29,100 300 1,100 1,400
Latin America/Africa/
Middle East
5,900 10,000 15,900 400 600 1,000
Total 42,400 71,300 113,700 1,900 3,300 5,200
1 The number of employees on either permanent or temporary contracts is stated in full-time equivalents (FTE) and rounded to the nearest hundred. Part-time employees are included on a pro-rated basis in line with their contractual working hours.

In 2014 we were again successful in retaining staff in the company for long periods. On the reporting date, our employees had worked for the company for an average of 12 years, the same as in the previous year.

Group-wide, the fluctuation rate was around 11% in 2014 and thus down 3 percentage points on the year. The proportion of employee-driven terminations (voluntary fluctuation) in 2014 was around 5%.

Employee Fluctuation1       [Table 3.7.3]
  Voluntary fluctuation Total2
  2013 2014 2013 2014
Women 6.5% 5.3% 15.4% 11.6%
Men 4.8% 4.6% 13.1% 11.3%
Total 5.5% 4.8% 14.0% 11.4%
1 The fluctuation rate is calculated using the ratio of the headcount to the number of employees stated in full-time equivalents.
2
includes all employer- and employee-driven terminations, retirements and deaths
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The fluctuation rate varies between different regions and age groups.

Employee Fluctuation1 by Regions and Gender         [Table 3.7.3-1]
 

 

 

Europe

 

 

North America

 

Asia/Pacific

Latin America/
Africa/
Middle East

 

 

Total

  2013 2014 2013 2014 2013 2014 2013 2014 2013 2014
  % % % % % % % % % %
Women 10.7 8.2 20.0 14.8 21.8 15.2 16.7 13.6 15.4 11.6
< 302   23.6   31.0   17.7   23.6   21.5
30-39   8.1   14.3   15.4   12.7   12.0
40-49   4.6   12.1   9.1   8.7   7.0
50-59   4.1   11.7   14.6   6.3   6.6
> 603   18.5   19.8   85.0   39.7   22.4
Men 9.1 6.8 18.4 15.8 16.7 16.1 15.2 13.0 13.1 11.3
< 302   32.1   40.0   21.4   27.4   26.8
30-39   6.4   14.1   15.4   11.5   11.5
40-49   3.2   13.1   12.3   8.8   7.3
50-59   2.7   10.8   10.2   7.6   5.2
> 603   15.0   24.6   54.5   22.2   20.7
Total 9.7 7.4 19.0 15.4 18.5 15.8 15.8 13.2 14.0 11.4
1 The fluctuation rate is calculated using the ratio of the headcount to the number of employees stated in full-time equivalents. The data include all employer- and employee-driven terminations, retirements and deaths.
2 The comparatively high proportion in the < 30 age group is due to the inclusion of employees on temporary contracts (working for 2–6 months of the year) and other short-term employees. It does not include apprentices.
3 The fluctuation rates for the age group > 60  are mainly due to retirements.

In Germany, Bayer also uses temporary personnel from staffing agencies on a small scale, based on stringent rules that are rooted in the life values.

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Temporary personnel from staffing agencies are only used where this is unavoidable as a result of short-term personnel requirements, fluctuations in order levels, temporary projects or long-term illness. The proportion of temporary staff employed in Germany is around 1.2% of the total workforce.

Uniform Group-wide performance management

In 2014 we started to introduce “Bayer Competencies” throughout the Group. The aim is to enhance development opportunities for employees and at the same time provide guidance on career paths. There are 16 clearly defined core and leadership competencies, which have been introduced as a reference base for personnel management in all areas. They are intended to ensure that in the future managers and employees use uniform terminology and criteria to assess professional activities in all situations, ranging from recruitment interviews to the Development Dialogue. The Bayer Competencies help put the life values into practice and ensure fair and transparent discussion.

As part of Bayer’s global performance management system, employees agree individual objectives with their supervisor. These are based on corporate goals. At the end of the year, attainment of these objectives is evaluated by each supervisor and discussed individually with employees. The results are documented in the employee portal so they are transparent to each employee. In 2014, this system covered more than 83,000 employees, i.e. about two-thirds of our total workforce. Of the participants, 41% were female and 59% male. The system is mandatory for all managerial employees. This ensures that they receive feedback on how well they have applied our corporate values in the fulfillment of their individual objectives. Observing the life values is as important as meeting business targets and therefore affects the level of their variable compensation.

In addition, more than 26,500 Development Dialogues were held with employees in 2014 as part of the performance management system. They are an opportunity for employees to discuss their personal strengths and development needs, career expectations and professional aspirations. We aim to step up the Group-wide rollout of the Development Dialogue and give it a firm place in our global leadership culture.

Employee communication

Our Group-wide Employee Survey is an important element in our intensive dialogue with our employees and a key feedback tool for the entire Group. It is conducted every two years and gives us competent feedback from our employees on our strategy, culture and working conditions. In 2014, a record 79% of employees took part in the third Group-wide Employee Survey. Compared with the previous survey in 2012, the findings show an improvement in all areas covered. Particularly high scores were once again registered for employee engagement, with an overall result of 87% (+2%). This shows we are meeting our goal of a continuous improvement in employee satisfaction. The survey revealed improvements but also showed that the willingness to embrace new ideas needs further encouragement. For example, there is a need to improve the basis for open exchange of ideas with direct colleagues. In addition, Bayer would like to strengthen communication between senior management and employees.

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The results of the employee survey are used to bring about further improvements in specific aspects of Bayer’s corporate culture. Before the next survey, Bayer intends to step up its already strong innovation culture in all areas of its business. The most recent survey showed that 77% of employees are of the opinion that the company is working to steadily improve the service offered to customers. 80% of employees feel personally encouraged to suggest innovative solutions to work-related problems.

Activities to drive forward our innovation culture help to implement the key promises Bayer makes to its employees in its new employer branding “Passion to Innovate | Power to Change.” To foster individual innovative capability, a workshop format, “Leading Innovation,” has been added to our management training. A further 138 employees took part in this program in 2014. A total of around 700 managers from the Group Leadership Circle and selected managerial staff have therefore been trained in methods and strategies for effective innovation management since 2012.

Dialogue with employees includes informing staff promptly and extensively about upcoming changes, in compliance with the applicable national and international regulations.

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The human resources and communications departments work together closely to ensure timely communication of far-reaching changes through a wide range of carefully coordinated media. In Germany we combine providing timely information to the employee representatives in the Economics Committee of the company concerned with coordinating and jointly deciding on the proposed communication measures.

We actively involve our employees in dialogue through a range of offerings and specifically encourage open discussion. Particular attention is paid to explaining strategic issues, business performance, research, innovation and sustainability.

We regard providing regular, up-to-date information for our employees and involving them through active dialogue as an integral part of modern human resources and talent management based on competitive structures and processes.

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Examples of Employee Dialogue 2014 [Table 3.7.3-2]
Active employee dialogue at all levels
Extensive, ongoing dialogue offerings on our strategic realignment (focus on the Life Science businesses): CEO letter to all employees, intranet articles and flyers, FAQs, telephone hotline, dialogue opportunities via the intranet, employee assemblies with the Board of Management and video broadcast on the intranet, follow-up meetings in the subgroups
Town hall meetings: quarterly with CEO Dr. Marijn Dekkers, broadcast to all Bayer sites worldwide; meetings at the subgroups and service companies
Global management conferences with workshops, at least once a year
   
Forums for the exchange of information about changes in the company  
Regular information events for managerial staff at Bayer AG and all subgroups and service companies
Regular employee assemblies, at least once a year at German sites
European Forum: discussion between the Board of Management and employee representatives from all European countries where Bayer has sites; at least once a year
   
Examples of issue-specific dialogues and events for different employee groups  
W11 dialogues: national and international stakeholders in discourse with Bayer’s top management
Expert Club Meeting: network of scientific experts that provides a platform for Bayer scientists working in R&D units to discuss innovation
Process and Plant Safety Symposium with Bayer experts from around the world and international experts
Annual global Safety Day with safety-related offerings
Strategic debates for managerial staff on the subject “Leading across Cultures & Genders”: workshops on the strategic significance of nationality and gender balance in management teams
Regular events organized by Group HR, such as intranet webcasts in which employees’ questions are answered live, and the Meet HR series of face-to-face discussions
Better Life Day: employees, their families, neighbors and friends are invited to learn more about Bayer at an open day
Global employee events on specific issues at all subgroups and service companies 
   
Media for employees  
Bayer Group publications: employee magazines, intranet, various newsletters and occasion-related mailings, brochures, presentations, social media; internal websites on “critical issues” and “Better Life.” Special media published by the subgroups and service companies, e.g. employee magazines, intranet, newsletters and occasion-related mailings, social media

Advancing knowledge and leadership skills

Fostering employees’ individual abilities, talents and strengths is another key factor for Bayer’s future success. Sustained success is only possible if we create working conditions that allow all employees to utilize their talents optimally and therefore contribute to innovative solutions. We therefore actively support lifelong learning as part of our philosophy of people development and managing demographic change. Our aim is to empower all employees to broaden their knowledge and skills and keep up with the latest changes throughout their working lives.

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We have employee training programs for both managers and non-managerial employees in all areas of the company. The next table contains examples of some of these programs, together with their aims and attendance rates.

Examples of Continuing Education in 2014  [Table 3.7.3-3]
Training courses Key aspects/goals Attendances in 2014
Global Bayer Academy    
Leadership training, general management training

Systematic management development program based on the LIFE values to facilitate a uniform understanding of leadership worldwide 9,536


Bayer Finance Academy



Modular program for systematic introductory training and continuous professional development for employees in finance, accounting, auditing, controlling and tax More than 1,400



Bayer Human Resources Academy

Various training formats for HR departments to enhance their competencies as advisors and partners for the various business units 2,472


Bayer Operational Excellence Academy

Experience from the established Lean and Six Sigma concepts is used to simplify working processes. 136 employees


Bayer Procurement Academy




Training in procurement-related topics, specifically for procurement staff



Open offering of self-taught and coaching programs for all procurement staff
Commercial Excellence programs at the subgroups

Practical programs to provide market-related background knowledge and improve customer orientation More than 3,000


Enhancing Performance & Feedback Culture

Obligatory program for employees with personnel responsibilities with the goal of enhancing the performance and feedback culture 1,014 employees



Global knowledge and skills training in specific areas
   
Introduction to the company    
Communication, working methods and project management    
Business administration and law    
Languages and intercultural skills A wide range of training courses are offered on these subject areas for various employee groups from all parts of the company.

83,087 employees with 316,467 attendances on
436,708 training days


Information technology and SAP
Marketing, sales and customer focus  
Research, production and technology    

Group focus
   
Innovation


Workshops for the Group Leadership Circle and selected employees to improve our culture of innovation and foster individual innovative capability 138


Cultural and gender balance in management



Topics: economic benefit of greater diversity, differences between cultures and genders, examples of best practice in the Group; these are used to develop action plans for the individual areas of responsibility. 625




Corporate compliance, anticorruption

  See Chapter 18.3 “Corporate Compliance”
Human rights

  See Chapter 7 “Employees”
Supplier management/Supplier Code of Conduct   See Chapter 8 “Procurement and Production”

Programs at the subgroups
   
Occupational safety (PEGASUS) Web-based training courses dealing with 54 issues related to occupational health and safety 31,100
“Fit in Production” (FIP method) (MaterialScience)






Qualification program for MaterialScience production employees aimed at achieving a comparable level of qualification at the production sites. This program has been running since 2010 and has been implemented at 18 sites to date. Global curricula have been developed for 24 of the most important product lines, with 10 of these being compiled in 2014. 400 trainers and FIP coaches have qualified to date, with 35 of these qualifying in 2014



“BayLearn” (HealthCare)







The global community BayLearn covers 87 countries. Its primary focus is to support operational and technical competency enhancement and to fulfill the regulatory compliance requirement (GxP)1 for documented evidence that all staff are appropriately qualified through education, experience or training to fulfill their job-related activities and tasks. More than 64,000 hours of web-based training and over 60,000 hours of on-site training



1 GxP : official good practice guidelines for the development and production of pharmaceuticals

At the heart of our ongoing training concept is the Group-wide Bayer Academy, which bundles our extensive continuing education opportunities. Alongside systematic development of managerial employees, it offers continuous professional training through various functional academies. In 2014, the Bayer Academy was honored with the renowned Brandon Hall Group Excellence Award in bronze in the “Best Leadership Development Program” category.

15,269 managers from various management levels have received training through the various programs offered by the Bayer Academy for managers since 2013, including 9,536 in 2014.

Harmonization of our employee training concept has also improved reporting on participation rates. Our global training reporting system currently compiles data on the main training activities in 73 countries. Employees received an average of 22.1 hours training in these countries.

Training Activities in Hours in 2014 by Employee Group and Gender1     [Table 3.7.4]
  Women Men Total
Employee group      
Senior management 45.3 32.5 34.2
Junior management 26.9 22.6 24.1
Specialists 17.3 13.6 15.0
Overall average 20.4 16.7 18.0
1 Selected training activities in the 14 largest countries where distinguishable by category and gender in the system. The gender-specific averages do not include the United States or Japan as statutory regulations preclude differentiation by gender in these countries.

Well-trained employees who keep up with the latest developments expect to be offered new perspectives. Thanks to its wide-ranging business activities, Bayer can offer them development opportunities within the Group. Vacancies in the Bayer Group, from non-managerial right up to senior management level, are advertised via a globally accessible platform. In 2014 we posted around 11,900 vacancies in 62 countries on this platform.

Diversity and internationality

A diverse employee structure is vital for our company’s future competitiveness. This is particularly true for our management throughout the Group. Diversity improves our understanding of changing markets and consumer groups, gives us access to a broader pool of talented employees, and enables us to benefit from the enhanced innovative and problem-solving abilities that are demonstrably associated with a high cultural diversity within the company.

A better gender and cultural balance at the management level is important for our success as a company. Our activities in this area are bundled in “Leading Across Cultures and Genders.” At the heart of this program are special training sessions for managers. These provide an opportunity for them to consider the economic benefits of greater diversity, cultural and gender-specific differences and positive examples from within the Group in order to develop action plans for their own areas of responsibility.

Furthermore, since November 2014 Bayer has been a member of the Gender Parity Council of the World Economic Forum in Davos.

Overall, the Bayer Group employs people from 150 different nations. Of the members of our Group Leadership Circle, in which 35 nationalities are currently represented, around 66% come from the country in which they are employed. The Group Leadership Circle comprises managers who perform senior functions at Bayer AG and in the subgroups and service companies. Five years ago, 23 nationalities were represented in the Group Leadership Circle. At the end of 2013, 82% of senior managers in our five top contract levels came from Western Europe, the United States and Canada and 18% came from other countries. By the end of 2014, the proportion of employees in the latter group had increased by two percentage points.

At the end of 2010 we set ourselves the target of shifting the proportion of women to men in senior management (the five highest contract levels) from a ratio of 21% to 79% to a ratio of 30% to 70% by the end of 2015. At the end of 2014, the ratio was 26% to 74%. Our gender balance has therefore improved by five percentage points in four years.

In our Group Leadership Circle, the ratio had improved from 93% men and 7% women at the end of 2010 to 87% men and 13% women by year-end 2014.

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Bayer Group Workforce Structure1 [Table 3.7.4-1]
Women Men Total
2013 2014 2013 2014 2013 2014
Senior management 2,200 2,800 6,800 7,800 9,000 10,600
Junior management 9,600 11,000 15,400 16,800 25,000 27,800
Skilled employees 29,600 30,600 49,600 49,900 79,200 80,500
Total 41,400 44,400 71,800 74,500 113,200 118,900
Apprentices 800 800 1,800 1,800 2,600 2,600
1 number of employees converted into full-time equivalents (FTE) and rounded to the nearest hundred

Work-life balance

Our employees’ lifestyles are as diverse as they are. Bayer therefore offers employees in all countries a wide range of options to help them balance employment with their personal and family lives. Today’s employees and prospective employees attach great importance to flexible working arrangements and to support in caring for children and close relatives. Bayer offers a variety of flexible working opportunities throughout the world. In many countries, these go well beyond the statutory requirements. In 2014 we continued to expand our benefits and services in this area.

In 2014 the Bayer Group had around 9,500 part-time employees, just under 8% of the total workforce.

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Percentage of Part-Time Employees by Region and Gender [Table 3.7.4-2]
Women Men Total
2013 2014 2013 2014 2013 2014
% % % % % %
Region
Asia/Pacific 4.7 2.2 0.8 0.3 2.2 1.0
Europe 21.3 23.5 7.5 11.2 12.8 15.9
Latin America/Africa/
Middle East
0.2 0.1 0.0 0.0 0.1 0.1
North America 1.9 1.6 0.2 0.1 0.8 0.7
Total 11.9 12.1 3.8 5.3 6.8 7.9

By the end of 2014, around 81% of employees in Germany who took statutory parental leave or participated in the company’s more far-reaching “Family & Career” program over the past five years had returned to work. Roughly 60% of the returnees were female and 40% were male. Since national parental leave regulations vary widely from country to country, we only compile data for Germany.

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The next table shows the number of employees who have returned after the standard statutory parental leave program and the Bayer “Family & Career” model since 2009. It also shows the number of employees who terminated their employment contracts at the end of their parental leave. It covers all employees in Germany who have taken parental leave since January 1, 2009.

Employees Returning from Parental Leave using Germany as an Example    [Table 3.7.4-3]
  % Absolute
Employees who have taken parental leave since 2009 100.0 2,737
Returnees by 2014 81.3 2,226
Women 59.9 1,640
Still on parental leave/have a dormant employment contract 21.5 352
Returned 71.4 1,172
within 3 months 8.3 97
3 months to 1 year 64.6 757
longer than 1 year 27.1 318
Terminated 7.1 116
Men 40.1 1,097
Still on parental leave/have a dormant employment contract 3.2 35
Returned 96.1 1,054
within 3 months 91.8 968
3 months to 1 year 7.7 81
longer than 1 year 0.5 5
Terminated 0.7 8

A General Works Agreement on caring for close relatives came into effect at Bayer in Germany in April 2014. The agreement makes it easier for employees to combine working with their role as a carer.

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Under this agreement, employees can take up to 10 days’ paid leave to provide emergency care for family members. For longer periods, they are entitled to work part-time. During this time, their salary can be topped up by drawing funds from their long-term account. Alternatively, employees who need to care for close relatives full-time can take unpaid leave for up to six months (or up to one year in exceptional cases).

Bayer also extended the range of flexible working arrangements offered to employees in many regions such as in Costa Rica, Poland, Slovenia, South Korea and East Africa. In many cases, the offerings go well beyond statutory requirements.

Employee compensation and benefits

Bayer’s compensation philosophy is rooted worldwide in the life values. A basic salary reflecting performance and responsibility is combined with elements based on the company’s success, plus extensive additional benefits. In this way, we aim to offer our employees working conditions that give them a high degree of security and reliability. Raises based on continuous benchmarking are designed to ensure that our compensation is always internationally competitive. We also attach great importance to equal pay for men and women, providing fair compensation worldwide and informing our employees transparently about the overall structure of their compensation.

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At Bayer, individual salaries are based on each employee’s personal and professional abilities and the level of responsibility assigned to them. At the managerial level, this is based on uniform evaluation of all positions throughout the Group using the internationally recognized Hay method. In areas of the Group and jobs that fall within the scope of binding collective bargaining agreements, there are no differences in pay based on gender either. This also applies for the compensation of trainees.

In the Emerging Markets and developing countries, too, our compensation levels are aligned to local market conditions. In keeping with our Human Rights Position, our goal is to pay our employees adequate salaries that ensure they and their families have an appropriate standard of living. In all Emerging Markets where Bayer has a significant presence, the lowest salary paid by Bayer is at least in line with the applicable minimum wage and in most cases higher.

To provide a transparent overview of their compensation, including all additional benefits provided by the company and employer pension and social insurance contributions, more than 30,000 employees in 12 countries receive an extensive annual Total Reward Statement containing all relevant information. This will be rolled out progressively to many countries in the next few years.

Under our Group-wide Short-Term Incentive program alone, variable one-time payments totaling around €900 million are earmarked for our employees for 2014. In many countries, employee stock programs enable our staff to purchase shares in Bayer at a discount. This offers them a further opportunity to participate in the company and its business performance. We also offer senior managers throughout the Group a uniform stock-based compensation program known as “Aspire” (see Note [26.6] to the consolidated financial statements). This is based on ambitious earnings targets and – in the case of the Group Leadership Circle members – requires an appropriate personal investment in Bayer stock.

In 2014 our personnel expenses amounted to €9,845 million (2013: €9,430 million). The change was mainly due to an increase in employee numbers, higher employee bonuses and salary adjustments.

Personnel Expenses and Pension Obligations         [Table 3.7.5]
  2010 2011 2012 2013 2014
  € million € million € million € million € million
Personnel expenses 8,099 8,726 9,194 9,430 9,845
of which pension and social security contributions 1,623 1,672 1,823 1,845 1,847
Pension obligations1 17,699 19,310 22,588 20,682 27,771
1 present value of defined-benefit obligations for pensions and other post-employment benefits

Human rights and social responsibility

Our social responsibility as a company and an employer is based on our corporate values and our unreserved commitment to supporting and fostering human rights in our sphere of influence. Bayer’s Human Rights Position is set out in a binding Group-wide directive. Alongside working conditions in the Bayer Group, this outlines our expectation that human rights will be respected at all stages in the supply chain, as detailed in our Supplier Code of Conduct. In addition, our mission statement, life values and Corporate Compliance Policy commit all employees around the world to fair and lawful conduct toward staff, colleagues, business partners and customers. We are a founding member of the un Global Compact and respect the United Nations’ Declaration of Human Rights and a range of globally recognized declarations applicable for multinational corporations.

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These include, in particular, the oecd Guidelines for Multinational Enterprises, the Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, and the core labor standards of the International Labour Organization (ilo).

We also observe the u.n. Guiding Principles on Business and Human Rights, which were adopted in 2011. We play an active role in their implementation, one example being the consultation process initiated at the end of 2014 by the German government to define a national action plan.

To enhance our employees’ awareness of the importance of human rights in their day-to-day activities, we organized a variety of training seminars in 2014 on the main aspects of our Human Rights Position. Courses totaling 240,000 hours in duration were offered and were attended by approximately 53% of our workforce.

The compliance organizations at the Group and country levels monitor compliance with the relevant directives. If there are signs of violation, employees can contact their Compliance Officer at any time, anonymously if required. For further details see Chapter 18.3 “Compliance.”

At Bayer, social responsibility includes ensuring safe working conditions and thus an environment where our employees can work and undertake international business travel without fear. We support our employees by providing training to prepare them for business trips, including training in the correct conduct in emergencies.

Our social responsibility is also reflected in our approach to necessary changes and restructuring measures. In Germany, which remains the company’s largest operational base with 35,800 employees, business-related dismissals are excluded through the end of 2020 for a large proportion of employees under an agreement with the employee representatives.

The reduction of around 700 positions at MaterialScience worldwide over a period of four years, which was announced in September 2013, will also be undertaken in a socially compatible manner wherever possible, such as by utilizing natural fluctuation and avoiding business-related dismissals. Approximately 350 of these positions were shed in 2014.

In 2014 the working conditions for around 52% of our employees worldwide were governed by collective or company agreements. The contractually agreed working hours of our employees do not exceed 48 hours a week in any country. At various country companies, the interests of the workforce are represented by elected employee representatives who have a right to be consulted on certain personnel-related decisions.

Percentage of Collective Agreements by Region   [Table 3.7.6]
 

Percentage of employees

covered by collective

agreements, especially on

compensation and working

conditions1

   

 

Percentage of full-time

employees with contractually

agreed 48-hour work weeks

  2013 2014 2013 2014
  % % % %
Region/Area        
Asia/Pacific2 18 14 100 100
Europe 88 87 100 100
Latin America/Africa/
Middle East
45 45 100 100
North America 5 5 100 100
Total2 54 52 100 100
1 collective or company agreements
2 2013 figures restated

Our understanding of our role as a socially responsible company includes a commitment to helping disadvantaged people. Some 2,500 people with disabilities are employed in 27 countries. That is around 2% of our total workforce. 35% are female and 65% male. Most of them work for our companies in Germany, where they made up 4.7% of the workforce in 2014.

Our sustainable human resources policy also includes ensuring a high level of social protection for our employees. Alongside competitive compensation, we offer our employees a wide range of additional benefits, for example almost all employees worldwide have either statutory health insurance or can obtain health insurance through the company. In 2014, we once again expanded or improved the quality of the health benefits provided for employees in many countries. 77% of employees have access to a company pension plan.

Health Insurance and Pension Plans       [Table 3.7.7]
  Health insurance1 Pension plans2
  2013 2014 2013 2014
  % % % %
Region        
Asia/Pacific 92 95 39 57
Europe 99 99 87 86
Latin America/Africa/Middle East 94 94 55 59
North America 89 92 97 99
Total 95 96 72 77
1 state or employer/employee-funded
2 programs to supplement statutory pension plans

To supplement health insurance, Bayer actively encourages awareness of healthy lifestyles, especially in view of the challenges facing us as a result of demographic change and the raising of the retirement age in many countries.

Bayer has therefore introduced a wide range of workplace health management programs at all levels, which are being expanded in response to employee surveys. This is designed to provide all employees with access to adequate, affordable and targeted health offerings such as sports programs, regular medical check-ups, help in overcoming illness and on-site medical care. The type and scope of the health promotion programs offered by Bayer Group companies worldwide varies depending on national health systems and their accessibility. In many countries, preventive health care measures are a discretionary benefit provided by the company, while in others they are required by law.

Group-wide initiatives to foster employees’ health and maintain their employability in view of the rise in the retirement age include the 2010 General Works Agreement on lifetime working and demographic change in Germany.

limited assurance

 Online annex: 3-7-15

This innovative agreement contains measures to reduce the workload of older shift workers and to ease the return to work after long-term illness as well as an extensive health screening program for all employees. In 2014 626 employees took part in the program to reduce the workload of older employees. This is around 98% of those who are eligible.

Last updated: February 26, 2015  Copyright © Bayer AG
http://www.annualreport2014.bayer.com