Compensation and retirement benefits
Attractive compensation models and additional services as well as needs-based retirement benefits are central components of the Schaeffler Group’s HR strategy. They contribute significantly to employee satisfaction and help the company to profile itself as an attractive employer. The low turnover rate in recent years is a good indicator for evaluating employee satisfaction. In 2018, the labor turnover rate1) was 4.8% across the company.
Harmonizing global compensation procedures
Schaeffler bases its compensation on the market median and ensures that it complies with the legal requirements. In Germany, this means observing the General Equal Treatment Act (AGG), among others. In addition, the company fulfills its obligations to provide information in accordance with the new Pay Transparency Act in Germany. Together with the Works Council, the Executive Board has taken all the necessary measures for this act.
Compensation at Schaeffler is individually based on the tasks and also includes performance-related components. The “Schaeffler Global Job Grading System” introduced in 2016 enables further development of career paths and succession planning processes. In addition, the “job catalog” project was launched in 2018. It is intended to enable a globally harmonized “job landscape” for all employee groups. The project also improves the basis for transparent compensation at Schaeffler.
To harmonize the compensation models, the variable components were also redesigned. The compensation-relevant key figures are now consistently based on the target values of “Schaeffler value added” and “cash flow”. Additionally, employees below the top management level can set individual quantitative and qualitative goals.
Employees in Germany can learn about different retirement plans via a company-internal retirement portal and can calculate the income they can expect to receive from the various retirement models.
1) Initiated by employees, related to the average number of employees from 1/1/2018 to 12/31/2018.