Employees

Important information on "Employees" can also be found in our Annual Report.

People strategy and processes

Covestro’s people strategy is derived from our corporate strategy. Its targets are guided by our corporate goals and our corporate values. The overarching goals are set by the Head of Human Resources in conjunction with Covestro’s Board. The HR organization plays a key part in our company’s success by promoting the strategic action fields employee engagement, skills development, leadership and work environment. It creates a framework for professional and innovative employee life cycle management and provides proactive support to employees during their entire tenure at the company. Based on this people strategy, all divisions in the company set specific job-related goals which are agreed with the next level(s) of management. Monitoring, coaching and reviews, as well as any necessary changes, are carried out in the regular meetings between employees and line managers.

To assure agility in the HR function, we are continually developing our organization, processes and system environment. For instance, a state-of-the-art human resources management system was introduced in 2018.

Employee metrics

Diversity and internationality

As of December 31, 2018, Covestro had 16,770 employees worldwide, of which 76% were male and 24% were female. Their average age was 43.2 years. The company-wide Diversity & Inclusion program aims to make progress on and promote diversity in the Group. This includes professional succession planning with a special focus on diversity targets.

In the reporting year, Covestro’s worldwide workforce comprised people of 84 different nationalities, with 11 nationalities represented at executive management level.

The majority of Covestro’s employees (57.1%) worked in Europe, the Middle East, Africa and Latin America (EMLA region). 26.4% of our employees were based in the Asia-Pacific region (APAC), while the United States, Canada and Mexico (NAFTA region) accounted for 16.5% of the workforce.

The percentage of temporary employees amounted to 1.5%.

Worldwide, 14.8% of all permanent employees worked part-time.

The percentages of male and female employees by employee group have remained largely constant.

Work-life balance

We support work-life balance for our employees. For instance, partnerships with day care centers and financial support for vacation care for school-age children are among the solutions we offer to enable employees to combine work with their family responsibilities. The programs offered by Covestro can differ from site to site.

Provided it is compatible with operational requirements, Covestro allows employees to take extended leave from work for personal projects such as scientific research, university studies or other purely personal reasons. Employees around the world take advantage of this offer from time to time.

To both male and female employees we grant parental leave as required by law, and we offer support when employees need to care for relatives.

Attracting and retaining qualified employees

New Hires, Total 2017/2018

1,689 new employees were hired worldwide in the reporting year, the majority in the EMLA region. Since production and associated jobs accounted for over 55% of new hires (previous year: 42%), where traditionally the majority of applicants are male, the percentage of male new hires is higher in 2018 than in the previous year.

In general we welcome applications from all candidates, irrespective of their ethnic origin, nationality, religion, ideology, gender, age, disability, appearance and/or sexual identity. We are committed to the principle of treating all applicants fairly and avoiding discrimination of any kind.

Covestro promotes young talent through internships, vocational training and trainee programs. Worldwide, the company employed 470 interns in total in 2018. In the previous year, this number was 499.

Turnover Rate, Total 2017/2018

Employee turnover rates in the different regions and age groups varied widely in some cases. This is primarily affected by cultural factors. The greater fluctuation in the NAFTA region compared with 2017 was due to the divestiture of the polycarbonate sheet business during the reporting year.

Conditions of employment and social responsibility

Covestro regards fair and respectful working conditions as essential. We provide information, advice and resources to prevent violations of laws or corporate guidelines. If any breach is suspected, employees can contact their Compliance Officer at any time, anonymously if wished. All suspected breaches of compliance are recorded using standard Group-wide criteria. This applies to all labor law-related matters such as working conditions, possible cases of discrimination and potential violations of the rights to exercise freedom of association and collective bargaining, as well as generally with regard to human rights. If material risks arise from legal disputes and proceedings, these are published in the notes to the consolidated financial statements.

In the year under review, around 55% of our employees worldwide were subject to collective bargaining or company agreements. The contractually agreed working hours of our employees do not exceed 48 hours per week in any country. An exception is made for operational reasons for fire brigade personnel at one German facility. At various country subsidiaries, the interests of the workforce are represented by elected employee representatives who have a right to be consulted on certain decisions affecting the workforce.

Covestro offers its employees competitive compensation and attaches importance to equal pay. As of December 31, 2018, around 77% of the workforce had access to a company pension plan. At all locations, personnel policy is aligned with the statutory requirements, such as those for severance, pre- retirement and retirement payments. For instance, in Germany employees are able to transfer salary and time components (converted into money) into a long-term account. The accumulated balance can then be used at a later date for certain legally defined purposes such as pre-retirement leave.