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Employees

Our 199,374 employees contributed to ThyssenKrupp's success with their ideas, expertise and passion for their work. Challenging training and education programs, performance-related pay, employee shares and above-average commitment are the basis of this performance strength. The wide range of cultures at Group locations worldwide fosters the intercultural capabilities of our skilled and executive staff.

EMPLOYEES BY REGION
Sept. 30, 2004 Sept. 30, 2005 Sept. 30, 2006 Sept. 30, 2007 Sept. 30, 2008
Germany 94,009 87,141 84,052 84,999 85,097
Other EU 37,655 40,009 39,688 41,522 42,503
Americas 42,050 44,346 46,240 44,228 47,561
Asia/Pacific 8,628 10,369 11,956 14,890 17,881
Other countries 4,694 4,067 5,650 5,711 6,332
World 187,036 185,932 187,586 191,350 199,374

Workforce development: significant rise in employee numbers

The number of employees rose significantly in fiscal year 2007/2008. On September 30, 2008, ThyssenKrupp had 199,374 employees worldwide, an increase of 4% from the end of the previous fiscal year. The biggest growth was in the service-related segments Elevator and Services. Steel created new jobs above all with the construction of new plants in Brazil and the USA. Employee numbers in the Technologies segment showed a slight decline, while the headcount at Stainless remained virtually unchanged.

In Germany the number of employees remained unchanged at 85,097. Outside Germany, the employee roll increased by 7% to 114,277, as a result of which the foreign share of the workforce rose to 57%. At the end of September 2008, 43% of employees were based in Germany, 12% in the USA, 7% in Brazil, and 5% in France.

Employees by region on September 30, 2008 in %

Information graphic: Employees by region

Personnel expense increased by 4% to €9.5 billion in the reporting period. The following graphic shows the development of personnel expense over the past five years.

Personnel expense in million €

Information graphic: Personnel expense


Ideas management has a long and successful tradition at ThyssenKrupp. It is aimed at encouraging all employees to contribute their knowledge and experience in areas outside their own immediate duties by making suggestions for improvements.

In the past fiscal year employees in Germany submitted just under 38,000 suggestions. The participation rate was therefore 496 suggestions per 1,000 employees, 6% higher than in 2006/2007. The economic benefits are also pleasing: The new ideas will allow annual savings of €30 million, 14% more than the year before.

The most valuable suggestion in the Company's recent history was submitted by an employee of ThyssenKrupp Steel AG. His idea for enhancing continuous furnaces on the casting-rolling line in Duisburg will save annual maintenance and energy costs amounting to millions.

Many Group subsidiaries outside Germany also have active ideas management programs. Outstanding examples are ThyssenKrupp Metalúrgica Campo Limpo in Brazil, ThyssenKrupp Acciai Speciali Terni in Italy and ThyssenKrupp Sofedit in France.

75 winners in the ThyssenKrupp best Ideas Competition

A particular highlight in 2007/2008 was the Ideas Competition run in association with our value enhancement program ThyssenKrupp best. All the Group's employees worldwide were invited to enter suggestions with the chance of winning attractive prizes. Over 25,000 entries were submitted by individual employees and 12,000 by teams. The 75 winners from ten countries were invited to the award-giving ceremony at the Ideas Park in Stuttgart, among them employees from China, Brazil and the USA.


Health and safety has become an increasingly important aspect of the Group's personnel policy in recent years. For this reason the Executive Board of ThyssenKrupp AG in association with the Group Works Council has issued a clear statement on health and safety in a code of conduct which is binding for all employees. For ThyssenKrupp, health and safety is a key corporate objective ranking equally alongside product quality and business success.

However, the many successful health and safety activities have been overshadowed by a number of tragic accidents, as a result of which 14 employees lost their lives in the reporting year. The most serious accident happened on December 6, 2007 at the Turin plant of ThyssenKrupp Acciai Speciali Terni. As the result of a fire, ten employees were injured, seven of them fatally. A further five employees from other Group subsidiaries suffered fatal accidents on their way to or from work. The Executive Board and Supervisory Board of ThyssenKrupp AG and all employees mourn the loss of these colleagues. Our deepest sympathies go to the victims' families.

Despite these isolated tragic accidents, the accident rate overall decreased further. In fiscal year 2007/2008 1,240 accidents were reported in Germany, which means that there were 10.4 accidents per 1 million hours worked – an improvement of 7% from the year before.

This reduction was repeated in the international statistics. Here, too, we can report a positive trend.

To achieve a further significant improvement in health and safety, we have combined all efforts and measures in the Groupwide initiative "Zero Accidents". The initiative focuses mainly on the responsibility of the Executive Board - accidents are discussed at every Executive Board meeting – and executives at all levels, an international exchange of information, and targeted health and safety training at the plants. These measures are directed at all employees and special modules have been developed for executives.


By tradition ThyssenKrupp attaches great importance to training the skilled workers of tomorrow. Around 180 full-time trainers and numerous training officers are helping to give 4,431 apprentices a successful start to their careers.

Our subsidiaries have pursued intensive apprenticeship training activities for many decades. As well as training beyond their own needs, our companies ensure the high quality and practical value of the knowledge taught. At 5.8%, our already high apprenticeship training rate, i.e. the ratio of the number of apprentices to the overall workforce in Germany, was increased further in the past fiscal year.

90% of apprentices were offered a job with a ThyssenKrupp company on successfully completing their training. This very high retention rate reflects in particular "Program Future" in the Steel segment which aims to offer young people a lasting chance of employment.

Shortened apprenticeships as a first step on the career ladder

The shortened apprenticeship courses for practically minded young people introduced a few years ago have successfully reduced the number of people dropping out of training. Group subsidiaries first introduced these apprenticeships back in 2005/2006. In view of the good response, numerous Group subsidiaries now feature these special occupations in their apprenticeship programs. On completing a shortened apprenticeship, young people who have performed well can if they wish move directly onto a more challenging apprenticeship in the same occupation; their previous training will then count towards this.

Participation in the training pact

ThyssenKrupp continues to participate in the training pact between government and industry. In fiscal year 2007/2008 alone, we created 75 additional apprenticeship places and offered 46 initial training placements. Over 60% of the young people who have so far completed an initial training placement subsequently signed an apprenticeship contract. This success is due primarily to the intensive specialist and educational support provided by ThyssenKrupp trainers.


In the reporting year, nearly every employee in Germany took part in advanced training measures. Key areas included quality management, data systems and information processing, health and safety, and management training. Added to this were intensive training programs at our foreign branches and operations. The courses, seminars and other events offer significant advantages to companies and employees alike. Our employees gain new perspectives for the future and are better motivated and qualified for their work in the Company.


In the increasing competition for the best young graduates, ThyssenKrupp has established a strong starting position. Both engineering and economics students see us as a highly attractive employer.

In view of future requirements, we have further stepped up our university marketing activities and launched the "ThyssenKrupp Recruiting Initiative". Our aim is to make potential young executives more aware of the career opportunities offered by our Group, attract them to ThyssenKrupp at an early stage, and provide efficient and sustained support throughout the recruitment process. A new careers portal on the internet provides this target group with a clear overview of the size and diversity of our Group and the attractive jobs and entry schemes available. In addition, two new graduate entry programs have been created directed at both interns and postgraduate students.

"Next Generation" internship program

In the reporting year ThyssenKrupp employed 1,200 interns in Germany alone. In fiscal 2008/2009, the 100 best interns, selected on the basis of their commitment and performance during their internship, will join a new two-year program for interns in which they will receive extensive support through to the start of their professional careers. Under the ThyssenKrupp "Next Generation" program, interns will gain a better knowledge of our Group and also of themselves and their own strengths and development areas. Since good students most commonly find their future employer through attractive internships with systematic support programs, "Next Generation" will benefit not only the students but also our Group.

"Your Innovation" - the ThyssenKrupp program for doctoral students

Engineering graduates in particular are increasingly keen to gain higher qualifications in doctoral programs with a strong practical focus. In our new-look ThyssenKrupp program for doctoral students "Your Innovation", highly qualified young academics develop innovations and contribute their input to the latest technologies in the Group. By communicating with other postgraduates and experienced employees via our knowledge network and taking part in tailored seminars, they can identify and develop new aspects of their own potential. Targeted mainly at engineering graduates, the program provides participants with interdisciplinary support in their doctoral studies.


The partial retirement scheme allows employees a smooth transition into retirement and thus also speeds up the process of change in the age and skill structure of the workforce. In the Group 3,730 employees were in partial retirement at the end of September 2008. Almost all of them opted for the so-called block release model – with a full-time work phase followed by a release phase. The table below shows the number of employees in partial retirement in the individual segments:

EMPLOYEES TAKING PARTIAL RETIREMENT BY SEGMENT on Sept. 30, 2008
Working
phase		 Release
phase		 Total
Steel 853 942 1,795
Stainless 239 91 330
Technologies 696 454 1,150
Elevator 89 67 156
Services 128 99 227
Corporate 29 43 72
Group 2,034 1,696 3,730

Modern company pension plan

The company pension plan at ThyssenKrupp has been a key element of compensation policy for decades. It was reorganized in the Group many years ago and today represents a combination of employer- and employee-contribution pension benefits, with the employee contributions qualifying for additional rewards from the employer. Employees receive regular information on the status of their personal pension benefits in the form of "account statements". As well as creating transparency, this makes employees aware of the considerable value of their own company pension benefits.

The employee-contribution pension plans available cover the entire spectrum of tax-deductible options. The Group's own deferred compensation plans are particularly popular. The continuation of the rules exempting deferred compensation from social security contributions beyond 2009 has placed the employee-contribution pension plan on a solid basis and allows employees to reliably plan their benefits.


For efficient and integrated management development, managers must be assessed on the basis of uniform standards and criteria. For this reason a newly developed assessment process was introduced in the past fiscal year – as part of the "ThyssenKrupp PerspActive" management development concept. Under the new process, the Group's top managers were assessed by their supervisors on a standardized basis according to performance, potential and management competencies. The results were then discussed by the management bodies of the business units and segments. Finally, the Group Executive Board considered the assessments in a closed-door "Management Development" meeting. The new transparency enables a better assessment of the Group's management portfolio and supports the Executive Board with decisions on strategic management planning.

To promote Groupwide networking and improve the personal development opportunities of each individual manager, we have developed a so-called "career rule" in the framework of "ThyssenKrupp PerspActive". This states that executives can only be considered as candidates for positions in the segment executive board if they have experience in at least two countries, two functions and two companies. Generally each of these stages takes at least two years. In the first 18 months after the phased implementation of this rule, an increase in mobility at executive level has already been observed: Among the potential candidates for top executive positions, both international and cross-segment rotations have doubled.

Cross-segment career prospects

"ThyssenKrupp PerspActive" supports and promotes the development prospects of each and every manager and helps the company select the best candidate for each position. A key instrument for this is the newly defined appointment process, under which appointments at the level below the segment executive board are subject to the approval of the Group Executive Board. We aim to open up further prospects across the segments for as many executives as possible and ensure that each vacancy is filled by the most suitable candidate.

The "ThyssenKrupp PerspActive" processes are supported by a new internet-based executive information system. Executives can use it to assess their employees online and plan and follow up development measures.

To improve the transparency and comparability of positions, ThyssenKrupp has introduced a Groupwide grading system for all top management posts worldwide. This allows these positions to be compared for the first time across organizational and national borders – a key prerequisite for promoting job rotation and planning individual careers. It will also make it easier to develop ThyssenKrupp Academy programs for specific target groups.

For the grading system, we conducted an initial screening of the top management levels before categorizing around 2,000 positions – 1% of the total workforce – in a management structure specially developed for ThyssenKrupp. The managements of the segments, business units and operating groups were closely involved in this development process. In summer 2008 the incumbents of the positions worldwide were informed about the system used and the project results.

Number of participants at the Academy more than doubled

The ThyssenKrupp Academy was founded two years ago as an independent subsidiary of ThyssenKrupp AG. It is an essential element for shaping the future of our Group. With its wide-ranging programs, the Academy supports and promotes learning and development opportunities for our executives.

In the reporting year the number of participants in the Academy's tailored and challenging programs more than doubled to 1,700 executives. A total of 4,800 participant days were utilized for the targeted development of competencies and for networking with prominent experts and learning partners from renowned business schools and international universities. Most of the programs are conducted in English to allow an exchange of experience and knowledge across the segments and in global networks.

With its four learning platforms – Management School, Competence Forum, Impact Workouts and Horizon Sessions – the Academy aims to challenge and expand established management knowledge using innovative learning architectures. It introduces new models of thinking, takes on board new ideas, passes these ideas on and in so doing intensifies the exchange of knowledge in the Group. A particularly important aspect of the program content is that it is application-oriented. Programs comprising numerous modules give participants the opportunity to try out what they have learned in practice.

In 2007/2008 the ThyssenKrupp Academy focused on leadership training. Other key areas were value growth, strategic fitness, quality, health and safety, and transformation and change in the global competitive arena.


Attractive compensation is a key factor in winning and motivating employees and executives. In addition to a fixed salary, which is subject to the provisions of collective or individual employment contracts, there are a number of other performance-related compensation components tailored to specific target groups at ThyssenKrupp. Employees under the collective agreement in Germany receive additional company-related annual bonuses to reflect outstanding business results. For employees under individual employment contracts, the fixed salary is supplemented by bonus systems, with the bonus amount linked to the Company's performance indicators and the employee's personal performance. ThyssenKrupp companies outside Germany also have attractive compensation systems based on local regulations.

In addition, we work to increase the share of the Company's capital held by the workforce. In early 2008 some 80,000 employees at Group companies in Germany had the opportunity to buy ThyssenKrupp shares up to a total value of €270, with 50% being paid for by their employer, under the sixth ThyssenKrupp employee share program. Programs were also carried out again in the reporting year in other European countries – France, Spain and the United Kingdom. In the employee share program in France, which took place for the fourth time in spring 2008, roughly one in two of the 6,400 eligible employees took part.

Our executive compensation policy is characterized by earnings- and share price-oriented instruments which are systematically applied and have proven their worth. The Mid Term Incentive plan (MTI) launched in 2003 was issued for the sixth time in the reporting year. As in the previous year, the members of the Executive Board of ThyssenKrupp AG and the segment executive boards together with selected directors and executives from major Group subsidiaries were eligible for the plan. The development of the stock rights issued under this plan is based on the share price and ThyssenKrupp Value Added (TKVA).

The discounted share purchase program for a specific target group of executives was issued for the third time in the reporting year. This, too, again met with a good response. Under this model, selected executives who are not eligible for the MTI can purchase ThyssenKrupp shares at a discount, the amount of which depends on the development of ThyssenKrupp Value Added.