Working conditions, recruitment and employee participation

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GRI 401

We want to continue attracting, retaining, and integrating talent at Fresenius. To this end, we need to consolidate and build on our position as an attractive employer in a market environment characterized by a shortage of skilled workers. Employee-friendly working conditions, attractive benefits, and a dialog-oriented corporate culture all help us to achieve this.

Our approach

GRI 401-2

Working conditions

As an international health care Group, we create various incentives for employees, depending on the country and location. These include flexible working time models or the chance to participate in the company’s success via variable compensation models. Particularly in the case of working time models, challenges remain with regard to an employee’s function or the local markets. Further information is included in the business segments’ reporting. In recent years, we have established various dialog formats to strengthen communication between management and employees – both at Group level and in the individual business segments. This allows the Management Board to provide employees with information on important issues personally. In addition, we promote our feedback culture and constructive exchange of ideas. We describe our variable compensation models in detail of the Notes.

Recruitment and candidate communication

In order to meet our future demand for qualified specialists, we use a variety of different tools to recruit staff. We monitor our working environment and competitive surroundings closely to identify potential. Furthermore, we are increasingly using digital personnel marketing, organizing our own recruitment events, and presenting the company at career fairs. In recent years, we have significantly broadened our range of personnel marketing activities and expanded our global careers website. In 2020, the market research institute Potentialpark named Fresenius the German company with the best online offering for applicants for the ninth consecutive year.

Employee participation

Exchange with employee representatives

GRI 102-8, -41

Trust and cooperation between management, employees, and employee representatives is well-established at Fresenius and an integral part of our corporate culture. An open and ongoing dialog between management and employee representatives, as well as unions, is important to us.

Fresenius acts responsibly toward its employees. This includes the commitment to comply with international labor and social standards, which are contained in our Code of Conduct and in the Human Rights Statement. For more information, see the section Human Rights.

Employees liaise with their supervisors, but they can also turn to their human resources or compliance officers, as well as to the works council, their union representatives, or other employee representatives, for assistance. In Europe, about 77% of our employees are covered by a collective bargaining agreement. In some European countries, Fresenius is subject to industry-related collective agreements, e.g., in France, which are binding by law due to the industry to which we are affiliated. If this is not the case, country-specific collective bargaining agreements can be negotiated with local trade unions or comparable social partners.

In European countries, workplace representation bodies are organized according to national law. The business segments have overall responsibility for dealing with local employee representatives and trade unions at country or site level. Our discussions with these representatives focus on local and regional circumstances. Together with the employee representatives, we aim to find tailored solutions to the challenges in the different locations.

Fresenius has also reached an agreement with the European Works Council, making provisions for a structured dialog with the international trade union associations; collective meetings are subsequently held once a year between representatives of the business segments and representatives of the international trade union associations.

Dialog at European level

Fresenius SE & Co. KGaA has a European Works Council (EWC) comprising 20 employee representatives from 13 countries as of December 31, 2020. These individuals come from the EU and EEA (European Economic Area) member states in which Fresenius employs personnel.

The EWC is responsible for the participation of Fresenius employees in cross-border measures, insofar as these have a significant impact on the interests of Fresenius personnel and affect at least two countries within their area of responsibility, such as the relocation or closure of companies or collective redundancies. For example, the management informs and consults with the EWC on the following: the structure and economic and financial situation of the Group, its anticipated growth, employment situation, investments, organizational changes, and the introduction of new work and production processes. The EWC meets once a year, while its executive committee convenes three times a year, in 2020 in hybrid form due to the COVID-19 pandemic. The European trade union federations IndustriALL and the European Federation of Public Service Unions (EPSU) attend the meetings at the invitation of the EWC. The focus topics of the EWC in the past fiscal year were projects in the Group's business segments for reorganization, e.g. in the area of global human resources management, the digital transformation, and compliance matters relating to the Group's human rights declaration. Another focus was on the impact of the COVID-19 pandemic on Fresenius’ employees. To this end, an exchange of information took place on the situation in the individual countries. Against the backdrop of the COVID-19 pandemic, and for a limited period of time, an agreement was reached with the EWC on the digital performance of its tasks. The EWC elects six employee representatives to the Supervisory Board of Fresenius SE & Co. KGaA, to include at least one representative of the trade unions. In order to ensure equal terms of office for all members of the Supervisory Board of Fresenius SE & Co. KGaA, the EWC resolved on a corresponding agreement.

Bonus and share-based compensation plans

For many years, Fresenius has offered employees in selected Germany-based Group companies a share-based bonus plan. The Group distributes the bonus when it achieves the EBITEBIT (Earnings before Interest and Taxes)EBIT does include depreciation and write-ups on property, plant and equipment. EBIT is calculated by subtracting cost of sales, selling, general and administrative expenses, and research and development expenses from sales. and earnings targets defined in the program. The current model is for 2019 to 2021. The following performance targets apply for this period: the Group net income has to increase compared to the previous year’s figure and Group EBIT has to increase by at least 5% compared to the previous year. In 2018, 6,228 eligible employees received a profit-sharing bonus for 2017. For 2018, 2019 and 2020, the Group did not achieve its earnings and EBIT targets for this program.
Further, with the share-based Long Term Incentive Plan 2018 (LTIP 2018), a compensation instrument for executives was implemented, linking management’s entrepreneurial responsibility to future opportunities and risks. More than 1,500 employees in executive positions participate in this program. For additional information, please see the chapter Notes. Fresenius Medical Care also has its own share-based compensation plan. This is also explained in more detail in the Notes of this 2020 Annual Report.

Fresenius Medical Care

Fresenius Medical Care's worldwide team is key to its success as the world's leading dialysis company. In line with its business objectives, the business segment updated its Global People Strategy in 2020. Fresenius Medical Care's aim is to provide an engaging, fair, and trusting work environment for all employees to support their growth and contribution to the company's success. With this background, the Global People Strategy has four priorities: (1) Engage employees; (2) ensure that the right capabilities are available to support our business goals; (3) continuous advancement of the organization; and (4) excellent global human resources (HR) management practices.

Fresenius Medical Care continuously develops its employment standards and HR policies to achieve consistency and transparency in working conditions and provide equal opportunities for its employees. One key element for this is a unified global HR system that supports the business segment's global and local business needs and new ways of working.

Organization and responsibilities

Fresenius Medical Care's global HR function is responsible for the People Strategy and reports directly to Fresenius Medical Care’s CEO. The function manages the further development of human resources policies and processes and drives the alignment of HR across all regions and functions.

Policies and regulations

Fresenius Medical Care acts responsibly towards its employees. It is also part of the company's commitment to comply with applicable social and labor standards. Fresenius Medical Care has defined this commitment in its Code of Ethics and Business Conduct and in our global statement on Human Rights, Workplace Rights and Labor and Employment Principles.

Fresenius Kabi

Fresenius Kabi aims to be perceived as an attractive employer around the world in order to attract qualified and motivated talent to the company. It is particularly important to understand regional and local characteristics of the markets and to take these into account when addressing talents on the basis of job profiles. Fresenius Kabi is continuously developing its processes for recruiting employees further and fosters the collaboration between the human resources departments and the divisions. In 2020, Fresenius Kabi adapted its recruiting processes to the particularities of the COVID-19 pandemic and increasingly carried out application and selection processes virtually. In addition, Fresenius Kabi uses social networks to address potential candidates with the close involvement of the communications department. In the past fiscal year, we were able to fill our vacancies as planned.

The company continuously works to offer its employees a modern working environment. The COVID-19 pandemic has accelerated the changes that have already been initiated regarding mobile working and the use of digital communication methods.

Organization and responsibilities

A Center of Expertise Leadership & Talent, Talent Acquisition & Employer Branding, Organizational Development, Diversity & Inclusion (CoE TLO) was set up in 2020 in the global human resources department, which reports directly to the head of global human resources. The Center of Expertise aims to further develop talent acquisition, personnel and organizational development, and talent management, and to strengthen a company-wide learning culture and corresponding structures and offers for promoting talent at Fresenius Kabi.

Policies and regulations

As the basis for the shared understanding of collaboration, Fresenius Kabi has defined company values that have been introduced worldwide. The company values are anchored in both the Code of Conduct and the Quality Management Handbook. They are embodied in the corporate environment and employees maintain a culture of cooperation across national borders, as well as functions and hierarchies.

Fresenius Helios

Helios offers its employees in Germany and Spain the opportunity to work part-time. Unlike many other industries, hospitals need to work around the clock, 365 days a year to ensure patients are cared for. Against this background, flexible working hours do therefore pose certain challenges and require, among other things, that shift systems be redesigned. In addition, Helios Germany offers employees other incentives: e.g. the Helios Plus Card, a private supplementary health insurance for Fresenius Helios employees in the event of inpatient treatment at a Helios clinic, in-house and external training courses, development programs for managers, health prevention programs, access to the Helios Central Library, and employee discounts at fitness studios, among other benefits.

Helios Germany also has to deal with a specific challenge posed by Germany’s Ordinance on the Minimum Requirements for Nursing Personnel in Hospitals (Personaluntergrenzen-Verordnung – PpUGV), which has increased the need for nursing personnel, of whom there is a shortage on the labor market, in some areas. The focus of the search for employees is on three areas of action: training of qualified personnel internally, advertising to skilled workers who are not actively looking for a new employer, searching the international labor market. Helios Germany participates in government-led campaigns to recruit personnel on the international labor market, as well as supporting people who have qualified as nurses abroad in their applications or in their searches for language schools.

Helios Spain aims to further expand its position as a leading private provider of health care services. To do so, it needs to attract new employees, retain them, and develop them further. In its human resources policy, Fresenius Spain states that the company's success depends to a large extent on its employees. The guideline also defines the objectives of human resources work: these include transparent internal communication and the development of a program for the ongoing training of employees.

Organization and responsibilities

At Helios Germany, the Central Service for Personnel Recruitment and Development is responsible for recruiting employees. The Central Personnel Management and Collective Bargaining Service is responsible for structuring working conditions under collective agreements and improving the service for employees. Affiliated with this is the Helios supplementary pension fund, which enables Fresenius Helios employees in Germany to invest some of their remuneration in their company pension plan via deferred compensation. The Helios supplementary pension fund is a company-owned pension institution.

Policies and regulations

All Fresenius Helios hospitals are bound by collective agreements, including those in Germany, which are linked to the Helios Group collective agreement, the collective agreement for public service (Tarifvertrag für den öffentlichen Dienst TVöD), or company-specific collective agreements. In Germany, all Fresenius Helios clinics are subject to the current Working Time Act, which in some cases provides for wage reopener clauses for supplementary tariff regulations. The Works Constitution Act, which grants the works councils co-determination rights and control, also has a regulatory effect. The situation with regard to working hours for the individual companies is regularly agreed by the respective company parties on-site.

In Spain, we apply the statutory rate for hospital employees. This ensures attractive working conditions and fair remuneration for employees in line with the market. To tailor our personnel management more efficiently to the needs of our people, we started a company-wide employee survey and expect first results in 2021. Further information can be found down on Evaluation.

Fresenius Vamed

Fair working conditions are part of Fresenius Vamed's mission statement. Fresenius Vamed's corporate culture is characterized by the diversity of unique people, open dialog, mutual appreciation, respect, caring, clear goals and decisive leadership. The company values, strategies and goals should manifest themselves through open, intensive, and direct communication. The Fresenius Vamed business model is very broad in nature, which places special demands on the recruitment of personnel. The recruiting process is tailored to the individual requirements of the individual positions.

Organization and responsibilities

Human resources work at Fresenius Vamed’s entities is managed by the business segments’ Human Resources division. Since the general conditions in the individual countries in which Fresenius Vamed is active are very different, the division ensures those responsible in the local countries are actively involved.

Policies and regulations

Fresenius Vamed has put detailed guidelines and standards in place regarding working conditions and working hours. Compliance with these requirements is continually checked. In 2020, new regulations were adopted because of the COVID-19 pandemic, for example, for working from home, for hygiene at the workplace, and for business trips.

Our ambitions

The four business segments pursue segment-specific ambitions in the areas of working conditions, recruitment and employee participation. Fresenius Vamed, for example, wants to consolidate its position as a driver of innovation in the health care sector. The aim of doing so is to attract new employees who contribute to the company's success through their willingness to perform, their expertise, their experience and their willingness to work together as a team.

Progress and measures 2020

Flexible working conditions and digitalization

In 2020, Fresenius Kabi expanded the options for flexible working and promoted digital collaboration with the company-wide implementation of additional IT applications. In addition, at its Bad Homburg location, for example, the company began to introduce a new office concept in selected areas that supports flexible and digital work. The work environment of around 100 employees will be redesigned for this purpose. The German Fresenius Kabi subsidiaries developed flexible working time models at the company level and created extended parental leave schemes for which an employer/works council agreement “New Ways of Working” has been concluded in 2020.

In choosing the Loga system, Helios Germany has opted for integrated HR management software that standardizes and digitalizes many HR processes in Fresenius Helios hospitals, be it recruiting, personnel management, payroll accounting, or other processes. All employees have access to this system via an employer self-service portal. This enables them to view digital paychecks and also to plan business trips or similar activities in the future.

Introduction of a uniform scheduling system has already begun in all units. In addition to important improvements to planning and reporting options for Helios Germany, employees gain more transparency on their care schedules, and approval processes have also been simplified, e.g., vacation approval.

Helios Spain currently develops a company-wide dashboard to manage, evaluate and improve the most important personnel KPIs. The dashboard is available to all clinics and enables them to conduct benchmark comparisons. The goal is to provide transparency for all clinics on the most relevant KPIs and enable best-practice sharing on how to improve personnel management in our Spanish hospitals.

The influence of digitalization on recruitment at Fresenius Vamed is ever increasing. All applications are now submitted via a central system that meets data protection requirements. As a result of the COVID-19 pandemic, further processes were digitalized; interviews, for example, were held via video conference.

In 2020, working conditions at Fresenius Vamed were made more flexible against the background of the COVID-19 pandemic with, for example, extensive teleworking opportunities introduced for office employees. Many locations have also introduced flexible time models in the administrative sector.

Fresenius Vamed's sites are increasingly recording and storing all personnel-related data digitally. To recruit employees, the business segment has increasingly used digital formats by participating in virtual company presentations and personnel fairs.

Employee retention

A variety of initiatives ensure that employees are retained effectively. These include the employee benefit program, Helios Plus, and other local activities. The Helios Plus Card, for example, is a free supplementary insurance policy for all Fresenius Helios employees in Germany. The benefit program includes a wide range of courses related to sports, exercise, nutrition, coaching, and information at our locations. Employees also receive exclusive discounts from our partners, e.g., Fitness First and Weight Watchers.

Since 2019, Fresenius Helios has been supporting employees in connection with the care and nursing of relatives. Through its contractual partner WDS Eldercare, extensive information and counseling services are made available to Fresenius Helios employees free of charge, e.g., a telephone hotline and online database, care consultation hours in the clinics, and personal counseling services at home.

In 2020, Helios Germany undertook two projects intended to underpin its corporate culture. The projects focused on development of a mission/vision and an employer brand. Employees got to participate in both projects, with 600 involved in total. The conference was originally scheduled for the end of 2020. Due to the COVID-19 pandemic, security of care for patients took priority and the date was consequently postponed. The mission/vision and employer positioning will be unveiled in spring 2021 and then rolled out company-wide.

Fresenius Spain also offers employees a benefit plan, with numerous perks available. These include private supplementary health insurance, pension plans as well as meal allowances and a wide range of discounts with cooperation partners.

The benefits offered to Fresenius Vamed employees range from discounted admission to thermal baths to meal subsidies, employee parking spaces, as well as discounted insurance benefits and pension fund subsidies.. In general, Fresenius Vamed not only pays at least the minimum wage, but can actually pay significantly above this level, depending on the individual’s qualifications and work tasks.

Induction of new employees

In our business segments, the induction processes for new employees are in some cases standardized centrally, and are supplemented at the sites by locally relevant measures.

In 2020, Helios Germany further standardized the process used for induction of new employees, and further developed the process for new managers. The aim is to reduce early turnover to a minimum. In what is known as the pre-boarding process, all new employees receive a digital information booklet about the company. In 2021, new standards will be established, such as an onboarding mentor, structured familiarization concepts, and feedback discussions during the probationary period. Since 2019, new managers have undergone a three-stage program within two years of taking up their posts to analyze and deploy their leadership potential. Another key component of this process is the integration of employees from abroad. This includes language courses and programs to familiarize them quickly with the day-to-day work processes in German hospitals, as well as supporting measures for social integration together with local employees.

Helios Spain introduced digital onboarding in 2020. By doing so, the business segment ensures that standards set for the induction of new employees will be uniform. Furthermore, the company has developed Talent Beats, a program for nursing students. Talent Beats aims to ease the transition of prospective nursing students from the academic to the professional environment by encouraging their involvement in the company and using accompanying training measures for continuous improvement. Furthermore, it aims to build loyalty and commitment among students in order to bind them to the company and its values.

A clearly structured, partly digital, process, meanwhile, ensures that all new employees at Fresenius Vamed have all the work equipment they need (hardware and software) on their first day and that all the prerequisites for a quick induction are met. Employees are informed in good time of the mandatory online training that new employees must undergo upon joining the company.

Work‑life balance

Helios Germany offers its employees childcare places in 35 kindergartens – both in company kindergartens and at partner facilities. Although all employees generally have the option to work part-time, the business segment also has to take into account the special requirements for seamless patient care when considering such options.

Recruitment

In 2020, Helios Germany initially continued its “Most important job” (“Wichtigster Job”) campaign. The aim of this was to attract more nursing personnel. This will be replaced by the new target group-specific campaign #EchtesLeben (“Real Life”) in 2021. The aim of #EchtesLeben is long-term employer communication in our most important target groups: medical service, nursing, administration/management, special functions, IT and training. In order to make further improvements to recruitment, Helios Germany will define further standards for the application process.

As part of its recruitment strategy, Helios Spain established a new Human Resources function in t2020, the aim of which is to recruit and develop employees. Helios Spain uses the IT solution Talent Clue to build up a talent pool. The further development of digital projects and processes in Human Resources management as well as in training and development is a high priority in the company.

Dialog and feedback formats

Fresenius Medical Care

Fresenius Medical Care values the contribution of its employees and are adapts its processes to include their feedback on a continuous basis. The company's global employee engagement surveys are tools to identify strengths as well as opportunities to improve its work environment. Fresenius Medical Care conducts one full employee engagement survey every two years and pulse checks in the years in-between. The company uses the survey results to define and intiate global and local measures, with the aim of further improving engagement levels in the long-term. Based on the results of the 2019 global engagement survey, Fresenius Medical Care initiated various follow-up measures on a global and regional level. The company intensified global communication on this topic and worked out dedicated action plans, among others. In 2020, the company conducted a pulse survey with more than 16,000 employees worldwide, which revealed that 64% of the participating employees are actively engaged. The employee engagement score is based on three aspects: say (speak positively about Fresenius Medical Care), stay (intend to stay at Fresenius Medical Care), and strive (make an extra effort to promote Fresenius Medical Care). Compared to 2019, the engagement rate improved by eight percentage points. Fresenius Medical Care is planning to conduct the next full global engagement survey in 2021 to further facilitate and build on this feedback.

Fresenius Kabi

Dialog across hierarchical levels is fostered, for example, with the Global Town Hall Meeting. Hosted by Fresenius Kabi’s CEO, the event, which is broadcast to the locations around the world, is regularly used to provide information about current company-related developments. As part of the event, employees have the opportunity to address their questions directly to the CEO. A Global Town Hall Meeting was held in 2020. An event planned for the second half of the year could not take place due to the COVID-19 pandemic and was replaced by a video message from the CEO and the invitation to dialog. In addition, a CEO blog that was set up in fiscal year 2020, supports the exchange between the CEO and employees. In 2020, numerous articles on current topics appeared on this blog and reactions from employees have been received. For example, in 2020 a blog post about integrity, respect and diversity was published. Reactions to this were taken as an opportunity to continuously address these topics in the United States. An initiative is being launched to further raise awareness for these topics among the workforce in the United States.

To gain valuable insights into business processes, and to increase employee loyalty to the company, Fresenius Kabi uses regional employee surveys to sustainably increase employee satisfaction. On-site employee surveys are an integral part of local human resources work, and the results of these surveys are important for the company, as they provide it with valuable information that helps to develop a stable and appreciative work environment for employees and to promote their engagement. In the reporting year 2020, the company conducted an employee survey in the United States; the analysis with regards to resulting measures has not yet been completed. Furthermore, in 2020, Fresenius Kabi started preparing a global employee survey, which is envisaged to be carried out in 2021.

Fresenius Helios

Helios Germany generally offers appraisal interviews to all employees. From these employee discussions, as well as from other dialog formats, it became evident how important it is for employees in the nursing division for well-functioning, integrated teams to be maintained. This aspect should be taken into account in cases of internal restructuring in particular. Fresenius Spain, meanwhile, conducts employee satisfaction surveys. In 2020, a project was initiated in Spain to conduct a company-wide survey. The aim is to use a standardized questionnaire to monitor employee satisfaction at all sites in a structured manner. The survey will take place anonymously. Due to the impact of COVID-19, the schedule has been delayed. The survey has now been launched in January 2021.

Fresenius Vamed

Appraisal interviews are an essential part of Fresenius Vamed's management culture. In addition to essential insights and measures for further successful cooperation, the necessary training and further education requirements also result from the detailed discussions. These are summarized in a training plan, on the basis of which the corresponding training and continuing education program is drawn up. This ranges from specialist training in the health care sector and personality-building seminars to customized language training and IT seminars.

Evaluation

GRI 102-8, GRI 401-1, GRI 405-1

At the end of the 2020 fiscal year, the Fresenius Group had 311,269 employees. That was 17,135 or 6% more than in the previous year (December 31, 2019: 294,134). In terms of FTE (full-time equivalents), this also represented a 6% increase at the Fresenius Group.

The regional distribution is as follows: About 31% of employees are employed in Germany, 25% in the rest of Europe and 24% in North America.

Our distribution of employees by function remained largely unchanged in 2020: about 14% of the workforce was employed in the production sector, and 71% in the services sector. Our personnel structure was thus stable in terms of development. The high proportion of service personnel is mainly due to the large number of nurses in our health care facilities.

The rate of new hires^1,2 in relation to the overall number of employees in each business segment is evidence of our efforts within recruitment.

The length of service³ within the Group can vary with acquisitions in the business segments. In 2020, the average was 8.2 years and remained close to the previous year´s level of 8.1 years on average.

In 2020, the proportion of employees who voluntarily left the company^1,4 was 9.8% (2019: 11.0%) Contributing to this development were, on the one hand, the uncertainty in the labor market associated with the Covid-19 pandemic, but also the measures taken in recent years to retain employees. Further information can be found on Employee Development.

¹ Fresenius Medical Care’s 2017 data reflects country data representing 96% of all employees. Helios Germany’s data for 2016 and 2017 includes the postacute
care business in Germany. Fresenius Vamed’s data for 2017 also includes temporary staff and, as of 2018, the German post-acute care business
transferred from Fresenius Helios to Fresenius Vamed. The data from Helios Spain does not yet contain the recently acquired hospitals in Latin America.
² Calculated as the number of external hires in a business segment within the reporting period, relative to the number of employees at year-end.
⁴ Calculated as the number of employees who left the organization voluntarily in relation to the number of employees at the end of the year.

The proportion of female employees in the Fresenius Group remained unchanged at 68% as at December 31, 2020. The proportion of females in services or care is higher than in the area of production. This is reflected in the proportion of female employees in our business segments. The number of female participants in the Group-wide Long Term Incentive Plan (LTIP 2018) is a good indication for the share of women in management positions worldwide. According to this, the ratio of women among the 1,700 top executives was 32% as at December 31, 2020.

The average age¹ of Group employees was 41.6 years (2019: 41.0 years). The majority (55%) of our employees are between 30 and 50 years of age. We aim to maintain a well-balanced age structure within our Group. The distribution reflects the demand for a high proportion of skilled and experienced employees in our business segments.

¹ Fresenius Medical Care’s 2017 data reflects country data representing 96% of all employees. Helios Germany’s data for 2016 and 2017 includes the post-acute care business in Germany. Fresenius Vamed’s data for 2017 also includes temporary staff and, as of 2018, the German post-acute care business transferred from Fresenius Helios to Fresenius Vamed. The data from Helios Spain does not yet contain the recently acquired hospitals in Latin America.
² Calculated as the number of employees who left the organization voluntarily in relation to the number of employees at the end of the year.