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Employee Matters

In financial year 2018, the first HR Leadership Meeting organized by headquarters took place, bringing together HR representatives from headquarters and those responsible for personnel from the larger subsidiaries in order to improve international cooperation. The main focus of the event was the presentation of projects planned by headquarters, which aim to drive forward the internationalization being pursued as well as centralization. 

Global measures initiated in financial year 2018 included the establishment of the central department, “HR Compensation & Benefits International”, which supports STADA’s subsidiaries in the evaluation and remuneration of positions. For the purposes of centralizing the administration and execution of personnel recruitment, local selection of personnel was also made subject to a global approval process by headquarters. Increased centralization was also implemented in terms of reporting within the Human Resources department so that, beginning in 2018, all fundamental information from subsidiaries are reported in a standardized way to central HR Controlling and processed for reporting purposes. Furthermore, in the reporting year, a global project team was put together and has begun the process of creating and implementing a new SAP-based HR IT environment, which will enable standardization and digitalization of Group-wide HR processes. In the first step of the digitalization project, which comprises several modules, the organizational structures within the company and employee source data will be collected and mapped. Further modules will address topics such as “Personnel Recruitment”, “Performance & Goals” and “Compensation & Benefits”.

 

Employee Recruitment and Retention

A company’s success depends, to a great extent, on the competence, commitment and motivation of its workforce. In order to recruit and retain qualified employees, STADA offers its staff, in Germany for example, a wide range of social and financial benefits.

Equal opportunities and family-friendly framework conditions are important factors in the success of every company and fundamentally contribute to competitiveness. For this reason, STADA supports its employees in establishing a work–family balance by allowing for flexible work hours, or by granting employees contributions to childcare costs and consultation services on the topic of caring for dependents.

In addition to contributions to childcare costs, STADA’s financial contributions include payments or subsidies for the commute to the workplace, supplementary occupational disability insurance in the chemical industry (BUC) for every employee covered by collective agreements and those covered by similar agreements, the promotion of the ChemiePensionfonds, as well as group accident insurance, which also covers private accidents.

In order to deal responsibly with the labor of each individual employee – one of the Company’s key resources – STADA has, for example established company health management at its headquarters in Bad Vilbel, which supports the workforce in staying physically fit.

In the context of the ongoing takeover in the reporting year, employee recruitment continued to represent a major challenge for the Company in financial year 2018 despite the various incentives.

 

Training and Development

STADA attaches great importance to training and development. Particularly against the backdrop of covering its own need for qualified young talent and, with it, securing and strengthening the competitiveness of the Company, STADA makes use of internal promotion and targeted programs. The individual training of employees is defined and coordinated by the respective departments on a needs-oriented basis and in accordance with individual targets. 

In financial year 2018, STADA began a program for the transformation of the management culture, which represents a key part of the Group-wide approach to consistent talent development. The dialog-oriented program consists of several modules at different locations and includes topics such as management and leadership in particular, but also local business reviews. 

In the reporting period 2018, twelve people at STADA were involved in apprenticeships or dual study programs. As part of its development program, the Company also offers students the opportunity to collect practical experience in the pharmaceutical industry with an internship or clerkship. 

 

Employee Communication

In the context of encouraging sustainable and responsible communication within the Group across geographical borders, internal communication in financial year 2018 focused particularly on internationalizing and expanding STADA’s internal communication channels. The aim here was to encourage an understanding in all areas of the Group of the comprehensive changes and developments within STADA and to create greater transparency. Thus, for example, since the beginning of 2018, the Group’s intranet has been available in the four main languages of the Group – English, German, Russian and Serbian – and included both global and local news. For the current financial year 2019, the further development of a “Social Intranet” is planned, which will use interactive features and an intuitive user interface to encourage interaction with and among employees.

In addition to the revision of the Group-wide intranet, the employee magazine STADAWORLD was fundamentally overhauled. This included the layout as well as the content and distribution methods. Since the reporting year, the international cover page STADAWORLD.wide has appeared in a total of eight languages and in numerous national organizations. In addition, regional issues with local content have been published in Germany, Russia, Serbia, Belgium, the Netherlands, Spain and the United Kingdom. This also ensures that all STADA employees, particularly those without email access, are always informed of important developments within the Company.

At the end of the reporting year, there was a particular focus on the issue of corporate culture. In a total of 15 workshops in Germany, Russia, China and Serbia, around 150 employees discussed the proposals of the STADA Executive Committee on the values and self-identity of the Company. The final definition of the reformulated corporate values and vision and the communication of them are to take place in financial year 2019.

 

Employee Rights and Occupational Safety

With due regard to local laws, STADA respects the rights of its employees throughout the Group and ensures their safety at the workplace by complying with common standards.

The Company commits itself to the principle of equal treatment and pursues violations of the German Non-Discrimination Act (AGG) with disciplinary consequences. In order to promote protection against discrimination at the workplace, employees at German locations are, for example, instructed in the applicable non-discrimination policy upon entering the Company and an internal complaints office serves as a contact point.

The Company continues to place importance on the fair involvement of employee representatives and expresses a clear commitment to the freedom of association as well as to the right of its workforce to membership of a union.

With a view to the safety of employees, the prevention of accidents and emergency situations as well as the planning of emergency measures take on great importance. Should an accident nevertheless occur, its course of events are discussed decentrally in the production locations under the guidance of local production managers, and afterwards in the production management team to raise awareness among the team onsite and to define suitable preventive measures.

STADA also achieves the best safety possible through trusting collaboration with its employees, whose knowledge and experience form the basis for continuous improvements in occupational safety.

 

Fostering Equal Opportunity

STADA values the diversity of personal qualities, talents and performance within its workforce. The future viability of the Company largely depends on how this diversity is promoted and utilized. As an internationally active Group with locations in over 30 countries worldwide, cultural diversity is an important part of the company.

With regard to equal opportunity for women and men, STADA places importance on the balanced representation of both genders. Also, as part of succession planning for managers, the Executive Board ensures an appropriate promotion of female employees for a constant increase in the proportion of women. When it comes to filling management positions, however, the professional and personal qualifications of the candidates, and not their gender, are always at the forefront.

In relation to the STADA Group’s total workforce, the proportion of women as of December 31, 2018 was approximately 58%. The Group-wide percentage of women in the first and second management levels below the Executive Board was around 11% and 28% respectively as of December 31, 2018 (see "Corporate Governance Report including the Corporate Governance Declaration for STADA Arzneimittel AG and the Group").