Performance Report

Employees

The tremendous commitment of our employees plays a central role in ensuring the success of our business. Bayer therefore maintains a responsible human resources policy covering all aspects from vocational training across the entire working life of our employees. Our employees benefit from an extensive range of job-related training opportunities, pension plans and health care provision and healthy working conditions.

Our employees

The Bayer Group had 108,600 employees worldwide in 2008, 2,400 more than in 2007. The increase was mainly due to acquisitions, and to expansion of our organization in Brazil, Russia, India, China and other growth markets. Around 51 percent of Group employees are in Europe, which still accounts for the majority of our workforce. Worldwide personnel expenses declined from €7,571 million in 2007 to €7,491 million in 2008.
To cover peaks in demand and short-term increases in personnel requirements, Bayer also uses the services of staffing agencies. Our subgroups and service companies had around 650 temporary employees at year-end 2008 (2007: 669). Company regulations ensure careful consideration is given to the use of temporary workers to ensure they are not given preference over personnel available within the company. Our internal personnel services company job@active works generally with staffing agencies whose employees are covered by the collective bargaining agreements entered into by organizations representing their interests and the German trade union confederation.

Employees* by region and function

 2005200620072008
Europe45,70057,80056,20055,500
North America13,10017,20016,80017,000
Asia / Pacific13,20017,30018,90020,800
Latin America / A frica / Middle East10,60013,70014,30015,300
     
Production41,60047,80048,80049,100
Marketing25,20037,40036,90038,000
Research8,00012,30011,60012,300
Administration7,8008,5008,9009,200
Total82,600106,000106,200108,600
of which trainees2,7003,1002,7002,900

High employee satisfaction

A low fluctuation rate is regarded as a reliable indicator of the satisfaction of employees. Bayer’s Group-wide fluctuation rate is nine percent, as in 2007, but varies by region: In 2008 it was around eight percent in Europe, just under 10 percent in North America, seven percent in the Latin America / Africa / Middle East region and around 12 percent in the Asia / Pacific region. We have not carried out a division according to age group and gender up to now owing to the very complex framework conditions in the individual countries. We are currently working on an expansion of our system for recording HR data.
The high esteem in which our company is held as an employer is reflected in the large number of international accolades we received in 2008. The news magazine Maclean’s once again voted us one of Canada’s top 100 employers. In Italy, we were ranked first in a survey of university graduates conducted by the management consultancy “Cesop” and in China the Corporate Research Foundation once against singled us out as one of the best employees in the booming Shanghai region. These accolades strengthen our employer branding in the competition for the increasingly short supply of qualified young people.

A global commitment to employee rights

Our commitment to respecting the rights of employees worldwide is set out in our Human Rights Position link. which is binding on all employees. Employees at all Bayer sites have the fundamentally right to elect their own representatives. Where they do not do so, we make a special effort to ensure direct and open communication. Constructive collaboration with employee representatives is reflected in different forms of participation such as the Bayer European Forum (BEF), our Europe-wide platform for dialogue between employer and employee representatives. Following the enlargement of the European Union, we extended our European Forum to include representatives from the new Member States in which we have a presence.
The various bodies established at Bayer companies around the world in 2008 to represent employees’ interests are further evidence of our openness and willingness to cooperate with representatives of our workforce. In September 2008, a trade union presence was established for the first time at Bayer’s site in Shenzhen in China. At the end of the year, our employees in Romania elected their first representatives, WHO then signed a collective agreement with the management on compensation. Employees in Romania are thus included in the roughly 60 percent of Bayer employees around the world whose working conditions are set out in binding industry-wide or in-house agreements. In Germany, an agreement rules out dismissals for operational reasons before the end of 2009. Contractually agreed working hours at Bayer do not exceed 48 hours a week in any country where we have operations.

Protection of employee data

When processing personal data, we always respect the privacy rights of our employees and business associates. To highlight the significance of data protection and data security, we have issued a far-reaching Group Regulation on handling personal data, as a supplement to statutory provisions. Personal data may only be collected for clearly defined and legally acceptable purposes and processing of such data must comply with the relevant data privacy regulations. This prohibits evaluations without prior suspicion of personal employee information or work communication. The Corporate Data Privacy Officer is responsible for ensuring compliance with these regulations. He is supported in this task by data protection officers at our subsidiaries.

Communication with our employees

The competencies and cooperation of all our employees are essential for sustainable development. We therefore provide regular internal information on the background to related issues and on the latest developments both within the Bayer Group and beyond, for example on climate protection, compliance, diversity and our “Triple-i” innovation drive. We communicate with our employees through a variety of media, for example “direkt,” the newsletter for the local community, “update,” the magazine for managerial staff, the “Bayer aktuell” information bulletins, publications by the subgroups and service companies and the Bayer News Channel on the Intranet, and through events with representatives of the management. We also organize lectures by external speakers, such as the recent talk by the British polar explorer Hannah McKeand at our location in Newbury, United Kingdom, and exhibitions such as the one showcasing the results of the International Children’s Painting Competition on the Environment. Our annual Sustainable Development Report is naturally another example of our communication activities. To mark the introduction of the Bayer Climate Program we established a special intranet portal on this issue and published a brochure entitled “The Bayer Climate Program” aimed at our employees.
Full and timely information for our employees is provided on significant operational changes in compliance with the relevant national and international obligations.
We consider our employees’ opinions to be important. Consequently, we conduct regular surveys to monitor employee satisfaction and obtain feedback and suggestions. A Group-wide managerial staff survey is held roughly every two years, with the next one due to be conducted at the end of 2009. In addition, some of the subgroups and service companies ask some of their employees to provide feedback on the company and their work every few months. The “Pulse Check” developed by Bayer Business Services is used for this. It comprises brief surveys of a random selection of managerial and non-managerial employees and is conducted in some cases several times a year to obtain an overview of employee sentiment. Details of the results are published as received. The aim is to use the findings of such surveys and insight into long-term trends to identify potential for improvement and highlight the progress that has been made.

Diversity and equality of opportunity

Bayer offers equal opportunities to all employees – regardless of gender, color, religion or sexual orientation. Our directives therefore stipulate that the selection of personnel worldwide is exclusively based on specialist qualifications, development potential and individual performance. Bayer’s senior management now comprises executives from 23 nations. There are two main objectives of our diversity strategy: We want our workforce to reflect the diversity of society and we want to encourage our employees to use their talents and develop their ideas to the full in an environment free of discrimination. This includes integrating severely disabled employees and those with impaired health. The ratio of severely disabled employees in Germany in 2008 was 4.1 percent. The Declaration on Diversity at Bayer adopted by the Bayer European Forum in October 2006 provides a reliable framework for local diversity initiatives within Europe.
Our commitment to diversity in the United States was acknowledged by the Human Rights Campaign (HRC), which included Bayer in the Corporate Equity Index in 2009.
We naturally consider equality of opportunity to also include performance-oriented compensation irrespective of the gender of the employee. Owing to the differing framework conditions in the individual countries and operations, global recording of gender-specific compensation statistics is very difficult. We are discussing appropriate comparison models.
Bayer employees WHO feel discriminated against despite our diversity guidelines and principles are encouraged to take the issues to their local compliance officer, supervisor or HR department. Such cases are investigated by the responsible legal and HR departments and reported to the relevant compliance officer. In the United States we have special diversity councils to provide advice and mediation in the event of suspected discrimination.

Diversity: Commitment and management in the United States

Bayer has a long tradition of diversity management in the United States. In the mid-1990s, Bayer Corporation established a Bayer Diversity Advisory Council to support diversity and foster talent. Bayer Corporation’s successful diversity management has received many honors, including the Catalyst Award back in 2002, the most important U.S. award in this field. Since then, a wide variety of measures has been implemented to strengthen and encourage diversity. For example, in 2008, the Sandwich Generation Network Group was established to provide special assistance to employees who also have to care for sick or elderly relatives. Last year Bayer Corporation also set up mentoring programs for women, Afro-Americans and younger employees.
In March, Bayer was voted one of the Top 10 companies for global diversity by the magazine Diversity Inc.

Fostering the development of female employees

Equality of opportunity for men and women has been a basic principle of recruitment and professional advancement at Bayer for many years. In Germany, for instance, we have had a Joint Committee on Equality of Opportunity for more than 18 years.
Bayer has a strong interest in raising the proportion of female employees in all professional areas and at all management levels. Human resources trends show that our efforts to recruit well qualified female employees and our professional advancement programs are having a positive effect. Between 2000 and 2008 the number of female chemists at our German companies rose by 36 percent and there was even an 81 percent increase in female engineers. Group-wide, female employees currently account for around 27 percent of our total workforce.
We will be continuing our commitment to equality of opportunity, especially in view of demographic trends. Action includes activities at schools close to our sites and special events for young women as part of Germany’s nationwide Girls’ Day. The aim is to encourage more young women to opt for a technical or scientific career.
The proportion of female managers is also increasing: In Germany around 18 percent of our middle managers are female, compared with around nine percent 10 years ago. Although the proportion of executives in senior management globally is still low, it has risen steadily, from 3.8 percent in 2006 and 4.3 percent in 2007 to a present figure of 4.7 percent. We aim to increase the proportion of women in selection processes for managerial positions. The Women’s Leadership Initiative introduced by Bayer HealthCare (BHC) in the United States at the beginning of 2009 is part of this strategy. BHC has set itself the goal of achieving a significant increase through 2012 in the proportion of female employees in senior management positions from the present level of 15 percent. Alongside selective action to identify and foster particularly able female employees through the talent management program, special communication campaigns, mentoring programs and networks are expected to play a key role in helping us achieve this goal.

Flexible working hours

To help our employees combine professional development with their personal lives, we offer a wide range of flexible worktime systems, from flextime through part-time employment to teleworking. Almost 60 percent of employees in Germany already benefit from these flexible worktime systems. Together with our offer of professional help for employees looking for child care arrangements and enabling employees to take up to seven years off to raise young children, this helps employees combine raising a family with professional opportunities. In November 2009, Bayer CropScience plans to open a new child care center at its site in Monheim, Germany, blending high-quality educational work with an ecologically designed building. This will be Bayer’s first EcoCommercial Building in Europe. Working Mother magazine in the United States has included Bayer Corporation in its annual ranking of the 100 best employers for working mothers for the sixth successive year in recognition of its family-friendly policies. This magazine also included Bayer among the “2008 Best Green Companies for America’s Children.”
To foster flexible planning of lifetime working, Bayer introduced “BayZeit” long-time accounts at its German companies in January 2008. Employees can save various time and compensation components in a special account to enable them to retire early or take a period of paid leave during their working life. Around a quarter of entitled employees already use this innovative tool.

Fair participation in corporate success

Bayer’s employees benefit from transparent and competitive compensation packages, including variable payments to reflect the performance of the company and their individual performance. Enabling employees to share in the success of the company has traditionally been a central element of our human resources and compensation policies. In 2008, we therefore continued our Group-wide short-term incentive (STI) program of performance-related payments for around 18,000 managers. In all, around €475 million was paid out to our employees in spring 2009 as variable bonuses for 2008. Around €71 million of this went to non-managerial employees in Germany. In addition to this amount, employees in many countries and organizational units will be receiving payments under local bonus programs.
In addition to the uniform Group-wide short-term incentive program, the performance-oriented compensation of our senior executives includes a long-term incentive (LTI) plan. For many years, Bayer has deliberately avoided stock option programs: Since 2005 our “Aspire” LTI plan for senior executives has been an exclusively cash-based plan based on the development of the company over a period of three years, in part relative to the EUROSTOXX 50 share index. A bonus is paid for sustained outperformance of this index. This innovative compensation system has received much praise since its introduction and is regarded as an exemplary sustainable incentive system because of the high performance benchmark, together with the high personal investment required by participants and the moderate level of bonus payments.
The internationalization of the “BayShare” employee stock program continued in 2008. Alongside employees in Italy, the Netherlands, Portugal and Spain, members of our workforce in Belgium and Finland can now purchase shares in the company at a preferential price. Employees in many other countries are offered opportunities to purchase Bayer shares on special terms and thus participate in an additional way in the company’s performance.

Our contribution to social welfare

Employees throughout the Bayer Group enjoy a high degree of social security. Health insurance cover is provided for employees worldwide either under statutory plans or through company health care offers. In countries where there is no statutory health care system or where the public system only provides rudimentary cover, we arrange additional offers and initiatives to supplement state provision. The Maghreb states of North Africa are a case in point. Since there is no public health care system in this region, we offer our employees almost complete health care cover through private health insurance. Since last year, retirees in Algeria, Morocco and Tunisia have also enjoyed the same private health care benefits as our employees in these countries.
We also extended and upgraded our health care and pension insurance arrangements for employees in many other countries in 2008. In Bangladesh, a larger number of family members can now be included in the health care cover. In addition, we have increased the life insurance cover for employees in this country. Employees at our companies in Switzerland have benefited from a full preventive medical check-up and a fitness program since 2008. Advice and support on a variety of medical issues, including the prevention of HIV infections, is part of an extensive Employee Wellness Program introduced for employees in South Africa in 2008. In Belgium, we pay the cost of supplementary health care insurance for inpatient treatment for employees of some of our companies.
In addition, around 76 percent of employees worldwide have access to some form of company pension plan or a pension program in which the company finances a significant proportion. In countries where we have a large workforce, for example Germany, the United States and Japan, nearly all our employees are entitled to join company pension plans. Bayer will be examining the scope to introduce further pension plans internationally in the future.
To ensure that our employees’ contributions in Germany are placed on a sound and sustainable basis, our pension plans focus on secure investments. By increasing employer contributions to the pension fund by around €25 million p. a., Bayer is providing even greater security for its pension commitments. This increase reflects the forecast rise in individual life expectancy.

A proactive approach to demographic change

Region / AreaPercentage offull-time employees with contractually agreed working weeks of
max. 48 hours*
Percentage of employees with health insurance**Percentage of employees eligible to take part in a company or companyfinanced pension plan***Percentage of employees
covered by collective agreements, especially on compensation
and working
conditions****
Europe1001008988
North America10087*****989
Asia / Pacific100944423
Latin America / Africa / Middle East100994542
Bayer Group (total)100977657

A proactive approach to demographic change

Demographic change is a major challenge for our corporate strategy because the transformation in the age structure will bring far-reaching changes in our workforce by 2020. To identify the wide-ranging implications as soon as possible and develop suitable countermeasures, we initiated a Group-wide project called “Demographic Chance Management@Bayer” in 2007.
In the year under review, this project has undertaken extensive analyses and groundwork for a long-term corporate strategy to address demographic change. For example, all activities in the company have been assigned to specific job families and future requirements for each of these have been examined with the aid of internal and external labor market analyses. Bayer Technology Services in Germany and Bayer CropScience’s Research Department with sites in France, Japan, Germany and the United States were chosen to pilot this project. Further parts of the company are to be analyzed in this way in the coming months to obtain a full overview of the demographic risks facing the Group.
At the same time, innovative software has been developed to allow realistic simulation of a variety of demographic scenarios. Bayer therefore has a powerful tool to generate reliable forecasts of future changes in the age structure of its global workforce. The results of this model allow foresighted management of employment trends.
Through effective training we are already helping various employee groups prepare for changes in their working life. Other action relating to demographic change includes training and support for older employees and stepping up our efforts to position Bayer as an attractive employer for young specialists and managers. Recent accolades such as being voted as the preferred pharmaceuticals company by German students and university graduates show that we are very well positioned in the competition to attract the most able young professionals.

Investing in vocational training and the development of young managers

Opening up perspectives for young people by giving them a sound vocational training is part of our social responsibility and an investment in the future of our company. In 2008 we therefore continued our global activities in the areas of vocational training and the recruitment of future managers and specialists. Bayer had 2,900 trainees on its payroll worldwide in 2008. At its German sites in Dormagen, Krefeld-Uerdingen, Leverkusen and Wuppertal-Elberfeld, Bayer commissions CURRENTA to carry out training on its behalf. This training was certified to DIN ISO 9001:2000 in 2008. 933 young people embarked on a vocational training course at our German sites in 2008.
Alongside Germany, Austria and Switzerland, where the “dual training system” comprising a combination of theoretical instruction in technical schools and practical work experience is common, we offered this system of training to more than 20 young people in China, over 80 in Mexico and around 30 in Argentina. As in previous years, we offered far more training places in Germany than we actually need for meeting our future employment requirements. Over 70 percent of trainees WHO passed their examinations in 2008 were taken on by the company.
In 2008, five sites in Germany offered a total of 149 young people with insufficient educational qualifications a special program to prepare them for vocational training courses. This highly acclaimed program has been running for 20 years. During this time around 1,200 of the 1,400 participants subsequently met the requirements for technical or scientific training courses. That is a success rate of over 85 percent.
43 outstanding graduates from around the world – including a high proportion of young women – took part in a variety of graduate trainee programs in 2008, offering them an opportunity to broaden their theoretical knowledge and gain practical experience in an international context.
We increasingly use the Internet as a tool to recruit new employees. Our international portal “mybayerjob” sets standards with its innovative structure and wide range of information. This site was awarded first place in the “Top Employer Web Benchmark 2009,” a ranking of German companies’ career pages by the Swedish management consultancy Potentialpark. Bayer’s career website is now permitted to display the logo “Top Career Website 2009.”

Skills enhancement and ongoing training

Bayer traditionally gives high priority to ongoing training of its employees because professional and personal development enhances motivation and performance. Our professional training offering is geared to the needs of our operational business and standardized processes are used to plan, implement and evaluate training worldwide. Our systematic compliance with this principle is documented in Germany by the successful certification of our continuing education structure to the quality management standard ISO 9001.
There are also many training offers designed to foster the development of our managers. These include our Development Dialogue and 360° Feedback. Through these tools, more than 3,600 managers around the world received feedback from supervisors, colleagues and employees on their personal and professional strengths and weaknesses in 2008.
Our globally uniform training and personal development tools and programs are supplemented by a wide variety of local and regional tools and initiatives. For example, the Andean Region Leadership School gave some 50 managers in South America a practical introduction to Bayer’s values and leadership principles. The objective is to train managers as practical role models to drive forward our collaborative yet performance-oriented corporate culture.
SPEED (Significant Progress in Early Executives Development), an innovative program introduced by Bayer HealthCare Pharmaceuticals to foster the development of management talent in the Asia / Pacific region, got off to a good start. Following on from Singapore, further SPEED Centers were established in China and Australia in 2008. Since 2007, employees at Bayer’s companies in Thailand have been offered the opportunity to study for a further university qualification in their country under the Bayer Thai Employee Scholarship Program.
We continued our sustainability training of procurement personnel in 2008 in keeping with our extended strategy on sustainable procurement link. Training in 2009 will focus on sensitizing employees about the risks and opportunities related to sustainability, while raising awareness of sustainability criteria and training staff to present them to suppliers. Another goal of this training program is to strengthen established networks and help build new ones to promote knowledge transfer within our Procurement Community.
In 2008, we invested 2.7 percent of our total personnel expenses of around €7.5 billion in vocational and further training of our employees. That was far more than in preceding years. Alone in Germany, more than 10,000 employees attended at least one training course, spending on average up to five days in ongoing vocational training.

Vocational and further training (as a percentage of personnel expenses)

2005200620072008
2.32.22.02.7

Occupational safety

Every accident is one too many. Our goal is therefore to reduce the MAQ (the number of occupational injuries resulting in days lost for every one million hours worked) to less than 2.0 by 2010. We made further progress towards achieving this goal in 2008: The MAQ declined by 0.2 percentage points to 2.2. At the same time, there was a further drop in the rate of reportable injuries. No fatal accidents were reported by contractors working on Bayer’s sites in 2008. Sadly, we have to report that two employees died in an explosion at a facility operated by Bayer CropScience in Institute, West Virginia, United States. Air measurements at the site perimeter showed no evidence of an elevated concentration of hazardous substances in the environment. The population was not endangered at any time. Bayer CropScience supported the authorities involved in their investigations into the causes of the accident. The company also undertook its own investigation and has initiated steps to further improve occupational safety and communication in emergencies. The goal of all these measures, which have been developed and implemented in close cooperation with the authorities, is to ensure the safety of employees and neighbors and limit impact on the environment. Bayer CropScience has decided to suspend production until the causes of the accident have been unequivocally ascertained and the facilities can be operated safely.
To take even more effective action to prevent accidents at work in the future, occupational safety experts at our subgroups and service companies are working hard to improve technical safety precautions and raise awareness of safety issues among employees. For example, CURRENTA has developed a new traffic safety concept for our site in Krefeld-Uerdingen, Germany, which should greatly reduce the risk of accidents in the future. Bayer HealthCare’s “Managing Safety!” campaign highlights the need for every employee to contribute to safety at work. This campaign is targeted directly at supervisors, to encourage them to set an example and raise awareness of occupational safety. It focuses clearly on employee training and motivation as safety-related tools. Occupational safety is included in clear targets for managers in production areas, making it a personal objective and thus raising its profile. A variety of individual and extensive packages of measures have been introduced at many sites to implement the “Managing Safety!” initiative and improve occupational safety.
In 2008, the successful campaign run by the Polycarbonates Business Unit of Bayer MaterialScience to raise safety awareness was rolled out to its facility in Filago, Italy. Routine situations and potential errors are analyzed at cross-site training sessions, and the reasons for the action taken and ways of making improvements in the future are discussed.
The Pegasus online occupational safety instruction system is a well established and useful tool. Around 6,000 employees in Germany can undertake statutory safety training via this program, which was rolled out to employees at the sites in Brunsbüttel, Bitterfeld and Bergkamen in 2008. Pegasus was used for a total of 27,171 training sessions in 2008.

Exemplary occupational safety at Bayer CropScience

Our site at Bien Hoa in Vietnam received an occupational safety award from the Vietnamese Health and Environment Ministry in December 2008 on its 10th anniversary in recognition of its outstanding performance in this field. At the award ceremony, representatives of the ministry thanked Bayer for raising safety awareness in the country and highlighted the function of the Bayer CropScience site as a role model for other companies in the country.

Occupational injuries affecting Bayer employees

 20042005200620072008Ziel
Occupational injuries to Bayer employees resulting in days lost (MAQ*)2.72.72.82.42.2< 2.0
Reportable occupational injuries to Bayer employees (MAQ*)4.74.04.33.73.6-
Fatal accidents (total)5494**2-
of which Bayer employees43542-
of which contractor employees11400-

Modern occupational health management

Since the retirement age of employees and the demands made on them are rising, our occupational health management is designed to maintain and strengthen the health and ability to perform of our workforce. It includes a special reintegration program to help employees WHO are frequently ill or have been unfit for work for a prolonged period overcome their health problems and return to work. In the period under review, 18 new cases of work-related illness were reported. That is a decrease compared with 2007 (30 recognized cases).
CURRENTA assumes responsibility for health protection on behalf of the Bayer Group’s subgroups and service companies at the German sites of Leverkusen, Krefeld-Uerdingen, Wuppertal-Elberfeld and Dormagen in the form of basic health care by company physicians and acute and preventive medicine. CURRENTA is particularly active in company health management. CURRENTA employees receive extensive medical advice on their reintegration into the workplace after illness. This company also provides extensive advice to help Bayer employees overcome psychosocial problems and conflicts in their personal lives and at work and in the case of addiction. CUENTA’s subsidiary Chemion Logistik was singled out by Landschaftsverband Rheinland for its exemplary work to reintegrate employees. Other companies at CHEMPARK also benefit from CURRENTA’s expertise in occupational health management. One example is Bayer MaterialScience, whose Regional Service Center in Leverkusen has introduced a new state-of-the-art occupational health management system for office workers.
Preventive health care is particularly important for employees in countries where the public health system offers restricted support. To prevent illness, Bayer CropScience therefore offers employees in many countries regular medical check-ups and is introducing new health management programs, including vaccinations, cancer checks and advice on factors that increase the risk of cardiovascular disease, stress avoidance and ergonomic workplaces.
Bayer also has a wide variety of other programs to foster the wellbeing of its workforce. The Employee Wellness Program offers employees in South Africa and their relatives practical and psychological support 24 hours a day. In the United States, the WorkLife programs help employees balance the needs of their job, family and private life and cope with difficult situations. The Wellness Works pilot program for employees and their families in Pittsburgh that will run until 2010 comprises check-ups to identify health risks and foster a more healthy lifestyle.
top
top
top
top
top
top
top
top
top
Print page
Search
Search
Advanced Search
Download Center
 
Links
Sustainable Development Report 2007
 
Bayer Climate Program
 
Annual Report 2009
 
Social Media Info Kit
Sustainable Development Program
Additional Info Links
Enter the relevant code given in the printed version of the Sustainable Development Report
 
Overview of the Additional Info Links
Services
Order print version of the Sustainable Development Report 2008
Newsletter
Subscribe to our Newsletter