Employees

Employee Numbers Rise

WACKER’s workforce increased in 2010. We had 16,314 employees worldwide as of December 31, 2010, 4.5 percent more than a year earlier (December 31, 2009: 15,618). Employee growth was driven by higher plant utilization amid the economic recovery, and by expansion projects – particularly at WACKER POLYSILICON. Our acquisition of a Norwegian silicon-metal plant at Holla (129 employees) and a South Korean silicone site at Jincheon (40 employees) also enlarged the workforce. In 2010, there was no longer any major need for short-time work.

In addition to their fixed base salary (which includes vacation and Christmas bonuses), WACKER employees receive variable compensation – a voluntary payment to employees both on the standard and above-standard pay scales. It consists of a profit-sharing amount and a personal-performance component. The 50-percent profit share from 2008 – which had been held over due to the economic crisis – was paid out to employees in 2010. Since profit sharing and the personal-performance component had been suspended in 2009, no variable compensation was paid in 2010. Due to the economic recovery, WACKER granted the employees of its chemical divisions a lump sum in 2010, totaling 3.75 percent of their fixed annual salaries.

In the year under review, we started supporting the introduction of working-life accounts. Over the next few years, we will provide a total of €15 million on top of the “demographic sum” agreed for the German chemical industry.

In 2010, WACKER granted its standard pay-scale employees in Germany a one-off payment. This was in addition to the one-off payment agreed in 2010’s industrial pay settlement.

12,235 WACKER employees (75 percent) work in Germany and 4,079 (25 percent) elsewhere in the world. We also have 488 temporary workers.

As a manufacturing company, WACKER has a large contingent of industrial employees (56 percent) – about a seventh of whom are women (14.2 percent).

Young People – the Key to Our Future

Vocational training has always been a mainstay of personnel development at WACKER. In 2010, 196 young people began their training at WACKER or at the Burghausen Vocational Training Center (BBiW). In total, the company employed 687 trainees, 22 more than a year earlier (2009: 665). Of these, 589 are in scientific and technical disciplines and 98 in business-related fields. At 5.3 percent, the percentage of trainees (number of trainees to Group employees in Germany) remains high (2009: 5.3 percent). After graduating, trainees have a good chance of receiving a job. We offered permanent jobs to most of our suitable and interested trainees in 2010. In total, 133 were kept on. The Burghausen Vocational Training Center (BBiW), a public foundation set up by WACKER, marked its 40th anniversary in 2010. Well known beyond the local area, the center also trains people from some 30 partner companies – in 2010, they sent 56 trainees to start courses at the BBiW.

To recruit young management talent, WACKER runs a General Management Trainee Program for university graduates. In 2010, five graduates participated in the
18-month program. Launched in 1997, it has been completed by 67 young people to date.

We provide our employees with continuous training to promote their strengths and cultivate the skills they need to succeed. At performance reviews, held at least once a year, employees and supervisors agree on development measures. This approach applies to every employee, from shift workers to top management. In 2010, about 100,200 e-learning sessions were completed and more than 8,700 participants attended seminars, advanced training courses and conventions, or received tutoring.

Developing Leadership Skills

Identifying “high potentials” and training them for leadership is a crucial aspect of WACKER’s HR work. In 2010, we opened two management programs to international participants for the first time: the Focus Program for employees who show executive potential (and are above the standard pay scale) and the Executive Management Circle for recently appointed executives. In 2010, 13 people completed the Focus Program and 14 the Executive Management Circle. Overall, WACKER’s 2010 investments in personnel-development measures and advanced training amounted to €5.8 million (2009: €5.3 million).

In 2010, WACKER joined a German Ministry of Education and Research study investigating women’s development for executive positions at large companies. Alongside WACKER, five other chemical and technology companies are taking part. The study’s focus is on developing the careers of women with university or technical-college degrees. 14 percent of graduates employed in Germany are women. By participating in the study, WACKER intends to analyze why women are under-represented and determine what it needs to do to deploy its female employees more effectively. The research project is scheduled to end in 2012.

Proactive Employees – Bright Ideas

Our employees’ ideas and suggestions are vital for keeping our Group competitive on world markets. 2010 saw substantially more suggestions being submitted to WACKER’s Idea Management team than in the previous year. Overall, employees submitted 7,702 suggestions – roughly 34.5 percent more than 2009 (5,724). The participation rate (number of submitters per 100 employees) also increased to 33 percent, up from 28 percent in 2009. The calculable benefit amounted to €10.5 million (2009: €11.2 million).

Demographic Analysis of German and International Sites in 2010

WACKER has been addressing demographic change intensively for many years. The average age of the Group’s workforce at the reporting date was 43.1 (permanent staff). Employees at non-German sites are younger (average age: 41.8) than in Germany (43.5). The age structure abroad varies greatly from region to region. Staff at Asian sites are comparatively young (average age: 35.6), while staff at US locations have an average age of 48.5. Age structure variations are not exclusive to WACKER. They reflect each continent’s and country’s age structure.

Our Employees’ Health Is Vital

To maintain our long-term innovative and competitive strength, we have specified ten strategic goals, involving measures ranging from health programs to basic and advanced training aimed at career flexibility.

WACKER launched a pilot project in 2010 together with the South German branch of the statutory pension insurance system (Deutsche Rentenversicherung Süd). The goal is to improve the effectiveness of rehabilitation measures for employees, the Group and the insurer. WACKER’s Health Services department can now submit rehabilitation applications on an employee’s behalf, for expedited processing by the insurance system. For the project, WACKER’s company doctors work with partner clinics to tailor rehabilitation measures to the employee’s job profile. The pilot project is initially restricted to WACKER’s largest site, Burghausen.

Strong Loyalty to Employer

To remain attractive to current and future employees and retain them long term, we offer exemplary social benefits, performance-oriented compensation and challenging tasks. The 2010 fluctuation rate was 2.9 percent groupwide (2009: 2.3 percent) and in Germany only 0.6 percent (2009: 0.7 percent). At non-German sites, it was 10.1 percent (2009: 7.5 percent). The average length of service in Germany was 17.2 years (2009: 17.1 years).

In an annual satisfaction analysis by Germany’s Association of Chemical-Industry Executives (VAA), WACKER was overtaken by some pharmaceutical companies that had been less affected by the economic crisis. We achieved fifth place out of 26 companies surveyed (2009: second place). A reputation analysis conducted in 2010 highlighted how strongly our employees identify with WACKER. On a scale of 1 (lowest) to 5 (highest), they awarded WACKER a confidence rating of 4.4. Indeed, 6 out of 10 employees were true ambassadors for WACKER, fully endorsing the Group’s expertise and entrepreneurial strength. Companies like WACKER that stake their reputation on innovation and productivity need a highly committed workforce. A comparison with an annual Gallup poll reveals how good our rating was: only 13 percent of German employees feel they have a strong emotional bond to their employer and are fully committed to their jobs.

WACKER Named Top Employer in China

In 2010, the Corporate Research Foundation (CRF) recognized WACKER Greater China as a “Top Employer 2010.” The jury assessed such criteria as management style, personnel development, and corporate objectives and strategies. Alongside WACKER Greater China, the jury considered 250 other companies from various industries.

WACKER will not be resting on its laurels after this excellent result. As part of our personnel-marketing strategy, we aim to intensify our efforts to recruit engineers and other specialists from fields vital to our success. Fifteen students from seven universities took part in our 2010 summer course devoted to process and chemical engineering.