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Employees

Employees

Fresenius Medical Care owes its business success and its leading position in the dialysis market to the commitment of its employees. We off er a rewarding working environment and good long-term prospects for their professional growth. By recruiting new talents and supporting their development in our thriving international Company using targeted measures, we are also investing in our own future.

Number of employees continues to grow

As at December 31, 2012, Fresenius Medical Care employed a total of 86,153 members of staff (full-time equivalents) in more than 50 countries. Our workforce therefore yet again increased significantly by more than 9% or almost 7,000 compared to the previous year in absolute figures. This was attributable to our continued organic growth as well as acquisitions, especially in the area of dialysis services. In the reporting year, acquisitions accounted for 5% of our worldwide increase in employee numbers. The positive trend seen in previous years therefore continued: In the past ten years, the number of employees rose by more than 8% a year on average.

Number of employees
T. 2.8.2

Employees by functional area

full-time equivalents
       
  2012 2011 Change Share
Production and services 69,963 64,757 5,206 81%
Headquarters 13,379 11,598 1,781 15%
Sales and marketing 2,281 2,274 7 3%
Research and development 530 530 - 1%

Total

86,153 79,159 6,994 100%

At the end of the reporting year, 59% of our employees were based in North America, 24% in the EMEA region (Europe, Middle East, Africa), 10% in Latin America and 7% in the Asia-Pacific region. Our staff count grew fastest in the North America region in 2012 with a rise of 5,707 employees, followed by the EMEA region with an increase of 526 employees. In the reporting year, our growth was supported by acquisitions, primarily to expand our clinic network; in North America, special mention should be made of the acquisition of Liberty Dialysis Holdings, Inc. In all other regions, the number of clinics and thus the workforce also increased again.

Staff costs at Fresenius Medical Care totaled $4,872 M in 2012 (2011: $4,362 M). This equates to 35% (2011: 35%) of revenue. Average staff costs per employee stood at $56,546 (2011: $55,108).

In Germany, Fresenius Medical Care employed approximately 4,300 people (full-time equivalents 2011: 4,200) at the end of the reporting year, accounting for around 5% of the total workforce. This underlines our high degree of internationalization. The average age of our employees in Germany was 42.2 years, somewhat above the previous year’s figure (40.9 years). The average length of employment in the Company increased from 11.0 years in 2011 to 11.2 years in 2012. The staff turnover rate was once again low at 2.8% (2011: 3.2%).

T. 2.8.3

Employees by regions and segments

full-time equivalents
 
  2012 2011 Change Share

North America

51,189 45,488 5,707 59%
Dialysis services 42,767 37,584    
Dialysis products 8,422 7,904    
         

Europe/Middle East/Africa

20,687 20,300 387 24%
Dialysis services 12,845 12,624    
Dialysis products 7,842 7,676    
         

Latin America

8,400 7,874 526 10%
Dialysis services 7,170 6,740    
Dialysis products 1,230 1,134    
         

Asia-Pacific

5,682 5,310 372 7%
Dialysis services 3,514 3,423    
Dialysis products 2,168 1,887    
         

Worldwide

86,153 79,159 6,994 100%
Dialysis services 66,296 60,371    
Dialysis products 19,662 18,601    
Corporate 195 187    

Talent management enhanced

We place great value on enabling our employees to apply their individual skills in our Company as best as they can and to continue developing them on their career path as a specialist, manager or project leader. Life-long learning, continuous feedback on performance and work quality, and professional challenges in line with employees’ abilities, including the opportunity to work abroad, are key instruments of our Company-wide personnel development program. In this way, we can offer talented employees clear development prospects while ensuring effective succession planning.

New program set up for managers

Our managers and employees with leadership potential take part in targeted training programs.

  • Global Executive Challenge (GEC) is a worldwide program for employees in management positions. The program, which we ran for the first time as a pilot project in the reporting year, will be continued in the coming years. Further information can be found in our magazine.
  • Fresenius Advanced Management Program is a Company-specific program for developing employees in upper management positions. We are running the program in cooperation with Harvard Business School.
  • The MBA program is a part-time management course for qualified employees who have not had any formal business training. This enables us to prepare scientists and physicians in particular for management positions. We offer the program in collaboration with the Danube University Krems in Austria, with which we also cooperate on research (see the “Research and development” chapter).

Promoting employees at our clinics in line with demand

As one of the largest employers of medical personnel worldwide, we place great value on providing our specialist dialysis staff with a wide range of training and further educational opportunities. We provide needs-based training for employees at our clinics, mostly at a regional level.

  • UltraCare Clinical Advancement Program (UCAP) is one of our staff Renal Nurse (RN) development programs in the U.S. We have continuously enhanced the program over the past few years. UCAP consists of five advancing stages of Nephrology Nursing practice and is aimed at new and experienced employees in our clinics as well as in the areas of home dialysis and acute dialysis. The program helps dialysis nurses and care staff to develop and expand their knowledge and leadership skills and prepares them for the next step in their career, for example as a clinic manager, clinical educator providing health training for patients, or mentor to clinic staff. In 2013, we will roll out UCAP to additional clinics in the U.S. with the ultimate aim of enrolling all our dialysis nurses in North America. In the reporting year we have greater than 800 RN s enrolled.
  • Mentor Connection is our mentoring program in the U.S., in which experienced nurse managers offer advice to new colleagues. In this way, we support nurse managers on-site and enable them to thrive in their new leadership positions.

We also recognize clinic managers who are particularly committed to their patients and employees and achieve excellent treatment results in their dialysis centers.

E-learning further enhanced

A medium that gained in importance once again for personnel development at Fresenius Medical Care across all functional areas is e-learning – digital training courses via the internet and intranet. At the end of 2012, more than 25,000 employees had signed up to the Online Learning Center in the EMEALA region (Europe, Middle East, Africa, Latin America). In the U.S., we also expanded our e-learning portal “Learning Management System” into a learning tool with a wide variety of subjects in the reporting year. Fresenius Medical Care aims to integrate e-learning into personnel development to an even greater extent in future in the form of blended learning.

Performance-related pay

Fresenius Medical Care is committed to paying its employees in line with their performance and letting them share in the Company’s success. Our remuneration concept therefore comprises fixed and variable components for most employees.

T. 2.8.4

Profit sharing

           
           
  2012 2011 2010 2009 2008
Figure 2,036 2,000 1,749 1,586 1,527
Number of eligible employees 3,231 3,068 2,918 2,765 2,581

Bonuses increased again

We encourage our employees to identify more with Fresenius Medical Care by giving them a stake in our Company’s success. Annual bonuses for all employees in Germany are based on the operating earnings (EBIT) of the Fresenius Group. In 2012, each eligible employee received €2,036 for the preceding financial year. Employees receive half of this amount in the form of stocks. The other half will be distributed as a cash component.

Remuneration program with long-term incentive effect

Our stock option plans allow our senior managers to participate in the Company’s economic success and the development of the Fresenius Medical Care share price. In 2011, we introduced a long-term remuneration program with a long-term incentive effect, a combination of a stock option plan and a phantom stock plan. In this program, the exercising of options is linked directly to the Company’s success. Over a period of five years, senior managers receive a total of up to 12 M options for ordinary bearer shares or phantom stocks. They can exercise these after a period of four years on condition that the adjusted earnings per share (EPS) have increased by at least 8% in each year over the four-year period. If this hurdle is cleared in one or two years only, the options are reduced accordingly. If earnings per share fall short of the mark completely, the options are canceled. Some 730 senior managers worldwide participated in this program in 2012. Further information on the stock option plan and the phantom stock plan can be found in the “Financial report”.

Creating an attractive working environment

We aim to create an attractive working environment for our employees to enable them to combine their professional and family lives. With our flexible working hours, part-time work models and care allowances we could contribute to this.

To supplement our other working time models, we have introduced compensation time accounts in Germany. In addition to a salary component in line with collective pay agreements, employees can “pay” value equivalents such as vacation days or compensation components into these personal time accounts and use them later for example for their professional development or to ensure a flexible transition to retirement. The aim of this program is to offer employees attractive long-term prospects within the Company and thus benefit from their experience for as long as possible.

We also offer Company sports programs as well as health-related information and events at various sites. In Bad Homburg we provide for example the “active lunch break”, a basic fitness and yoga program. Also the Health Care Day takes place each year with presentations and health checks as well as the “healthy back campaign” where we offer individualized back-training to our employees. In addition, we offer confidential counseling and other support services. In the U.S., for example, we provide these jointly with an external partner.

Open house days at our plants and clinics, employee celebrations and joint projects such as charity campaigns encourage our employees to identify with the Company and its values.

Promoting diversity in the company

As a global company, we value the diversity that our employees provide in the form of personal strengths, characteristics, interests and ideas. We aim to continue fostering and benefiting from this diversity at Fresenius Medical Care in future. One key issue in this respect is the percentage of men and women in the Company as a whole and in management positions. In 2012, 70% of employees were women.

Fresenius Medical Care also has a high proportion of women in upper management positions of 31% (2011: 30%). Our employees’ qualifications are most important to us. Gender is not a determining factor for employee selection. For this reason, we still do not intend to introduce fixed quotas.

T. 2.8.5

Percentage of men and women in the Company

 
  2012 2011
Source: Company data, based on headcount
Total employees    
Male 30 31
Female 70 69
Employees in upper management positions
Male 69 70
Female 31 30

Training for young people

In Germany, we also invest in the Company’s future by offering vocational training for young people. As we train in association with the Fresenius Group, we can offer young men and women a wide range of prospects in a variety of trades, from electronics technicians for devices and systems, IT specialists and biological and chemical laboratory technicians to industrial business management assistants and industrial mechanics. In the reporting year, we also offered additional training opportunities for systems IT specialists, technical product designers and warehouse logistics specialists.

In the year under review, we provided more than 2,300 apprentices with vocational training jointly with the Fresenius Group. The number of positions in all training facilities in Germany rose again by over 20%. In addition, in 2012, more than 70 students were enrolled in work-study courses such as business information technology, electrical engineering, healthcare management and international business administration that we offer in cooperation with the Fresenius Group and several universities. In summer 2012, we offered training positions in a work-study course on accounting and controlling for the first time to attract junior staff to work in consolidation or controlling. We will continue to expand the choice of work-study courses to respond to growing internal demand.

Our trainee program and Graduate Development Program also offer interesting opportunities for students looking to gain a foothold in the Company. In the 18-month trainee program, graduates gain practical experience in internships lasting several months in various areas of the Company, including one abroad, as well as accompanying seminars to train them for work in a special field, for example controlling. The Graduate Development Program prepares young professionals over a period of up to twelve months for a particular function as part of their career as a specialist, project leader, or manager. Besides intensive on-the-job training accompanied by a mentor, the participants build up a network within the Company and assume more and more responsibility. The program is supplemented by further educational offers tailored to each employee including technical and communication training, as well as temporary employment abroad.

In addition, we organize initiatives such as the annual management simulation game, in which apprentices from all specialist areas, age groups and locations get to step into the role of an entrepreneur. This teaches young people social skills that will be crucial in their professional lives, such as teamwork and a sense of responsibility, in addition to their vocational training. Fresenius Medical Care apprentices were once again recognized for their outstanding performance in the reporting year, garnering local Chamber of Commerce awards. In previous years, we have been able to take on all apprentices and workstudy trainees who completed their courses with good grades and intended to stay in our Company.

Through our involvement in and with schools, we aim to continue getting young people interested in a career at Fresenius Medical Care. To this end, we organize information days, visits to plants, internships and job application training courses. For example, in September 2012, we were involved in the “Training Night” in Bad Homburg, where our Group headquarters are located. Under the motto “Interactive Training”, 19 other companies offering apprenticeships joined Fresenius Medical Care at the event. Students and parents were able to find information about vocational training and work-study courses as well as career prospects. Attended by over 750 people, the “Training Night” was once again hugely successful.

In Schweinfurt, where we produce dialysis machines, we set up “wissenswerkstatt Schweinfurt e. V.” in conjunction with other companies, associations and Schweinfurt city council. This science workshop aimed at making technology more exciting and tangible for young people is due to open at the end of 2013.

The results of our training management efforts are very good and the growing number of high quality applications show that we are an attractive employer for graduates, trainees and students.

Increasing our attractiveness as an employer

As well as retaining talented employees at Fresenius Medical Care, it is more important now than ever to position ourselves on the job market as an interesting and attractive employer to gain qualified new employees.

Fresenius Medical Care gives students the opportunity to gain practical experience in various areas of the Company: We offer internships, research, project and graduate programs, and cooperate closely with institutions of higher education to enable talented young people to get to know us as an attractive employer early on. One example is the University of Applied Sciences in Würzburg-Schweinfurt (FHWS). As this college offers students an excellent education in the fields of business engineering, plastics technology, mechanical engineering, engineering IT and especially electrical engineering with a focus on medical and automation technology, many of its students and graduates are attractive potential employees for Fresenius Medical Care and especially for our Schweinfurt plant, where we develop and manufacture dialysis machines. For this reason, we have signed a cooperation agreement with FHWS including scholarships, student excursions to the plant, as well as lectures and semester-long projects within various divisions of our Company.

We get the opportunity to meet young researchers through measures other than classic recruitment activities by cooperating with international institutions of higher education in the area of research and development or by supporting young scientists, for example as part of their doctoral thesis.

We have also revamped our careers website in the reporting year: Since May 2012, applicants can inform themselves even better about current vacancies on our career portal. Moreover we provide useful information about the Company on our new career-website. In Germany, as many as 367 job vacancies were posted on the career portal in 2012 and we received around 4,159 online applications. In the U.S., we announced around 12,000 job vacancies and received some 500,000 applications.

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