assured 2010
Performance Report

LIFE: Our values [ @72 ]

Bayer’s corporate culture is an important factor in the company’s success. Central to our culture are our values: Leadership, Integrity, Flexibility and Efficiency – or LIFE for short. These provide us with guidance for our daily work as we seek solutions to the major challenges of our time, in line with our mission “Bayer: Science For A Better Life.”

L – Be passionate for people and performance

  • Show personal drive, inspire and motivate others
  • Be accountable for actions and results, successes and failures
  • Treat others fairly and with respect
  • Give clear, candid and timely feedback
  • Manage conflicts constructively
  • Create value for all our stakeholders

I – Be a role model

  • Comply with laws, regulations and good business practices
  • Trust others and build trustful relationships
  • Be honest and reliable
  • Listen attentively and communicate appropriately
  • Ensure sustainability: balance short-term results with long-term requirements
  • Care about people, safety and the environment

F – Drive change actively

  • Be ready to adapt to future trends and needs
  • Challenge the status quo
  • Think and act with customers in mind
  • Seek out opportunities and take calculated risks
  • Be open-minded
  • Embrace lifelong learning

E – Manage resources smartly

  • Focus on activities that create value
  • Do things simply and effectively
  • Deliver with appropriate costs, speed and quality
  • Speed up good decision-making
  • Be accountable for consistent execution
  • Collaborate for better solutions

Awards for Bayer as an employer [ @77 ]

The Bayer Group and its subgroups have received many accolades as top employees in various parts of the world. Here is a selection:
  • In Canada, Bayer has been named one of North America’s 50 Most Engaged Workplaces by “I Love Rewards,” a Canadian provider of employee incentive programs. The award was made because Bayer has created an environment where engaged employees truly are the company’s greatest assets. Bayer’s outstanding initiatives demonstrate its endeavors for its employees. This award is presented annually to leading employers. The criteria used to evaluate the companies are leadership and innovation in dealing with human resources, communication, culture, rewards and recognition, professional and personal growth and corporate social performance.
  • Bayer has also been selected by Media Corp in 2011 as one of Canada’s top 100 employers for the fourth year in a row and has been included in the list of the best 90 employers in the Toronto region for the fourth consecutive time.
  • In Turkey, the Bayer HealthCare subsidiary Intendis has been honored as one of the country’s leading employers. In a survey by the international management consultancy Hewitt Associates it garnered second place out of 45 companies – ahead of Microsoft, Cisco Systems and Novartis and a step forward from the previous year’s third place.
The survey looked at employees’ identification with their employer and their commitment to the company‘s interests. Hewitt Associates also conducted interviews with human resources departments and members of the senior management to establish whether the significance of employees and their role as a key success factor is recognized in corporate policy and by the management itself.
  • Bayer is also one of the most attractive employers in Colombia. In 2010, the company ranked third in a comparative analysis of human resources management undertaken by MERCO. The Group was also ranked as the fifth most popular employer by Colombian business school graduates. The study conducted by the leading Spanish company that examines corporate reputations is the only survey of the Hispanic world that looks at the reputation of companies in Colombia. The survey gathers the opinions of public opinion leaders, other companies and representatives of governments, associations and non-governmental organizations. This year’s study included an attractiveness rating for the first time.
  • Bayer is a preferred employer in Germany as well, according to a TNS Emnid survey. In a representative survey conducted for the management consultancy and audit company PriceWaterhouseCoopers (PwC), the Bayer Group was ranked as the country‘s eighth most popular employer, positioning it in the top ten for the first time.
The most important evaluation criterion according to those who took part in the survey is the quality of the company’s products and services (98 percent). 95 percent saw good management as a positive factor, while for 92 percent the company’s attractiveness as an employer was important. Sustainability and job security scored 87 percent and 84 percent, ranking them among the key criteria.

Bayer is a preferred employer for the younger generation

  • Science students regard Bayer as one of the most attractive employers. A Europe-wide survey by market research and consultancy company Universum ranked Bayer third, directly behind Google and Apple. Bayer therefore improved its ranking by five places compared to the previous year. More than 21,000 students from over 100 European universities took part in the survey.
  • Bayer’s website also earned praise: Bayer is one of the companies that uses its Internet presence most professionally to inform and attract qualified employees. This was the result of a ranking of listed companies’ recruitment websites, which was published exclusively in the journal Harvard Business Manager. In Germany, Bayer ranked second after the utility company E.On and ahead of BMW, Deutsche Post and ThyssenKrupp. The authors examined the companies’ investor relations and corporate social responsibility sites as well as their careers’ portals and summarized the findings in an overall ranking. Bayer was ranked second overall.
  • Bayer HealthCare’s Bergkamen site received an award for its endeavors to secure qualified staff for the future. The company increased the number of training places offered in 2010 by a third from 34 to 45. For this it received a certificate from the Westphalian Chemical Industry Employers’ Federation. By offering vocational training for more young people than it needs for its operations, Bayer HealthCare demonstrates social responsibility and provides an encouraging signal for the regional training market.

Ask the CEO  [ @78 ]

"Ask the CEO" is an ideal supplement to other forms of employee communication. It gives employees a chance to determine which issues they would like to receive more information on – directly from the Chairman of our Board of Management, Dr. Marijn Dekkers. Any employee can post a question in the intranet via the Bayer News Channel. Their colleagues then rank the most relevant issues. The questions with the highest ratings are submitted to Dr. Dekkers. This bottom-up approach is one of the characteristic features of the "Ask the CEO" format.
This new communication format has already proven very successful: in the first four months, the site netted more than 100,000 clicks. Within a short period, more than 200 questions and comments from around the world had been submitted to “Ask the CEO.“ Dr. Dekkers comments: “I’m very pleased with this response, because it shows our employees place great importance on our company and our strategy. So I would like to thank everyone who has participated so far by asking a question or helping to rank the questions submitted by colleagues.”

As an example, here are two of the questions submitted to Dr. Dekkers:

An employee from Bayer Antwerpen NV, Belgium:
Bayer supporting U.S. senators
Mr. Dekkers,
Bayer was mentioned in a Climate Action Network Europe report on how and why European companies funded climate change deniers and anti-climate legislation voices in the 2010 U.S. Senate race. This is an obvious contradiction to the Bayer Climate Program so I‘m a bit confused about this. Can you explain how the company got involved?
Answer of Dr. Marijn Dekkers
Dear Colleague,
The accusation that Bayer systematically supported candidates in the U.S. election campaign who seek to block climate protection activities is completely unfounded. This would indeed conflict with our corporate policy. In fact, quite the opposite is true. As an international company with numerous production facilities in Europe, we have a very strong interest in encouraging other regions to adopt the E.U.’s ambitious climate goals – not least because differences between the regions distort competition. Bayer therefore calls for a globally valid – and ambitious – climate agreement.
Bayer was quick to signal its clear commitment to the fight against climate change and sided with people campaigning to protect the earth’s climate. Our Group-wide policies also show that we are “walking our talk” on climate protection. The Bayer Climate Program comprises a range of activities that are being systematically implemented.
And to set the record straight, the donations you refer to are not corporate donations by Bayer. In the United States, our employees can support candidates for public office through private donations to the “Bayer Corporation Political Action Committee” (BayPac). These are voluntary donations by employees, not the company itself. The money was distributed by BayPac to candidates who the employees believe will take sensible positions on issues relevant to Bayer, such as health care policy or patent protection. Although, in an ideal world, we would want all politicians to share our views on climate change, it is inevitable that some of those who received donations opposed President Obama’s Climate Bill.
An employee from Bayer Inc., Canada:
Developing the people pipeline
Great initiative Dr. Dekkers! Thank you and welcome!
Do you think we develop our leadership pipeline the same great way we develop our products pipeline? In my opinion we have some work do to with attracting and developing younger talent. Germany seems to have some good programs especially with regard to international movement. Global companies like RIM and Deloitte have already put excellent plans in place. Is this an area you plan to focus on for all countries? How? When?
Answer of Dr. Marijn Dekkers
Dear Colleague,
I am indeed passionate about attracting and developing local talent to meet our business needs. Given the existing demographic challenges, we are mindful of the need to ensure a healthy pipeline of people throughout Bayer. The fact that we have in recent years filled more than 80 percent of our open, top group leadership circle positions internally tells me that we‘re on the right track.
You are correct in recognizing that we have good programs for developing our people in Germany. These include blended action learning and training, coaching, mentoring, 360° feedback as well as project work and challenging assignments both at home and abroad. And we are committed to a standardized and harmonized approach across the Bayer Group internationally to help support every employee to develop to his or her full potential. This will benefit both Bayer and its employees. This approach should be implemented promptly and within the mentioned framework of our Group-wide developing programs.

Employee networks contribute to our culture of diversity [ @81 ]

Many of Bayer’s sites in the United States have employee networking organizations and affinity groups. These are one of several platforms that employees can use to share their experience, build valuable contacts for fostering collaboration and drive forward their personal development. These network groups work to improve our activities within the organization and the communities which we serve. Bayer provides an annual budget of US$5,000 for each networking group.
Every employee network is tailored to specific interests, but the prime aim is always to reflect the diversity of the workforce. The 15 networking groups that inspire a culture of diversity at Bayer are:
  • African American Employee Network (Access) – Promotes greater cultural diversity, enhanced awareness and more educational opportunities for African American employees.
  • ANGLE-B – A network of lesbian, gay, bisexual and transsexual (LGBT) employees. This is the first network of its type in the global Bayer organization.
  • Bayer Asian Society in America (BASIA) – A network for all Bayer employees who wish to broaden their awareness and understanding of Asian culture and its values.
  • Bayer Association for Science in Communities (BASIC) – This is a group of volunteers who take part locally in Bayer’s Making Science Make Sense™ initiative, which aims to improve scientific education in Pittsburgh and foster scientific knowledge.
  • Baytown Employee Recreation Association (BERA) – This network is dedicated to promoting and developing recreation activities for Bayer employees in Baytown, Texas.
  • Employee Connection – Fosters employee appreciation and interaction through voluntary activities that inspire and motivate us to be an employer of choice offering a healthy work-life balance.
  • Junior Board – Endeavors to improve the quality of working life for employees by identifying and implementing projects that extend beyond the scope of functional groups.
  • Kansas City FUN Committee – Develops and implements employee initiatives and activities to increase the sense of community and morale of employees in support of the present ongoing cultural changes.
  • Pharmacists at Bayer (PhAB) – Enhances employees’ awareness and understanding of the value and contributions made by pharmacists.
  • Professional Moms (ProMoms) – A forum where working mothers can learn from one another and provide mutual support.
  • Professional Networking Group (Links) – The purpose of this network is to connect a new generation of employees with the Bayer community.
  • Sandwich Generation Networking Group (SGNG) – Seeks to reduce the distress felt by caregivers that is often associated with the searching, selecting and supporting efforts of providing care. This provides a platform to assist both caregivers and care recipients of all ages.
  • Toastmasters International – Promotes a positive learning environment to help employees improve their communication and leadership skills.
  • Women’s Advocacy Through Visioning and Education (WAVE) – Cultivates a professional environment for women that recognizes and supports their development in accordance with Bayer’s values and leadership principles.
  • Women’s Initiative Networking Group (WINGs) – Dedicated to the advancement of women; also supports work-life balance at Bayer’s site in Pittsburgh.

Programs for fostering the advancement of female employees at Bayer HealthCare [ @82 ]

Bayer HealthCare has a clear goal: it aims to attract and retain the ablest employees through prudent diversity management. The wide range of programs includes SPEED – Significant Progress in Early Executive Development – which was introduced at Bayer HealthCare in Asia in 2008. The purpose is to foster the development of female employees into managers from a very early stage to ensure more diverse structures in this region.
In Japan, a program to reduce fluctuation rates among female pharmacists is starting to bear fruit. Measures to help these young women combine working life with raising a family have been designed to counter the fact that to date 80 percent of them have left the company within six years.
The diversity program has increased the number of female job applicants. Many state that the initiative was a key reason why they applied to Bayer. Further evidence of the success of this program is that when the program was introduced in 2008 only 33 percent of female employees said that they wanted to stay with the company in the medium term. By 2010, the proportion had risen to 57 percent. There was an even more significant improvement in satisfaction with their work-life balance. The satisfaction rate has increased from 12 percent to 68 percent.
The information campaign “The Power of Diversity” introduced by Bayer HealthCare in 2009 has the support of top management. The aim is to collect and publish examples of best practices and active implementation of diversity from all over the world to derive conclusions for the company.
Bayer’s commitment to diversity is particularly evident in the United States. One example is the Women in Leadership Initiative (WLI) at Bayer HealthCare in the United States where mentoring programs, lecture series, support in the establishment of networks and assistance in enhancing mobility are designed specifically to increase the proportion of female managers.

New perspectives for vocational training [ @86 ]

In 2010, the vocational training activities at Currenta were validated as conformant with DIN ISO 9001:2008. At the same time, quality management at the vocational training school run by Currenta was validated for the first time by experts from the Deloitte management consultancy. The exceptionally low proportion of lessons cancelled, satisfied trainees and customer companies and the fact that Currenta trainees repeatedly come top of their year in vocational examinations are visible signs of the quality of the theoretical instruction provided in Leverkusen. Currenta is responsible for most of the theoretical instruction, while trainees receive their practical training at one of Bayer’s subgroups.
A growing number of organizational units offer trainees an opportunity to work at a different location for several weeks. Trainee pharmaceutical technicians, animal caretakers and safety & security specialists spend a short period during their training working somewhere else. For example, starting in May 2010 trainees from the Pharmaceutical Technology Department in Berlin have exchanged places with colleagues from the production plant in Weimar for three months. In fall 2010, trainee animal caretakers from Berlin spent two weeks in Wuppertal-Elberfeld. Site Safety & Security even runs a trainee exchange with the German railways.
Bayer HealthCare is increasing its training offering at its site in Bergkamen. Last year, the number of new trainees was increased by a third from 34 to 45. Overall, the company has 108 young people on eight different training courses at this site.

Group-wide continuing education and training [ @87 ]

Our ongoing training program comprises a wide range of work-related programs that enable employees to broaden and update their knowledge and abilities or acquire new skills, for example by learning a language or acquiring leadership competencies.

Examples of continuing education offerings

Training categoriesConception and implementation level
Global Leadership
Global General Management Training		Global/Groupwide
Knowledge and skills training in the areas:
  • Introduction to and knowledge of the company
  • Leadership skills
  • Communication and efficient working
  • Business administration and law
  • Marketing, sales and customer orientation
  • Languages and intercultural skills
  • Information technology & SAP
  • Research, production and technology
Local/National

Group focuses

  • Corporate compliance
  • Human rights
  • Changes in technology (Personalized Workplace Program)
  • Supplier management/Supplier Code of Conduct
Global/Group-wide
Subgroup focuses
  • Occupational safety (PEGASUS)
  • Fit in Production (FIP) at BMS
Global/Subgroup-wide
Continuing education offerings for employees outside worktimeLocal/National
These individual training offerings are supplemented by special training courses and continuing education programs at the subgroups and service companies. These are geared to company-specific needs.
One example is occupational safety. Last year alone, around 30,000 training sessions, mainly in production, took place across the Group through our online training program PEGASUS. In addition, Bayer has Group-wide programs on issues of relevance to all employees. These include our compulsory training in corporate compliance and human rights training.
Group-wide programs include a range of offerings for employees identified as “talents” and “high potentials.” These programs are designed to prepare selected employees at managerial level for their future role.
In order to establish a uniform leadership philosophy for the entire Bayer Group, Competence Training & Development (CT) at Bayer Business Services has developed a management training program for use worldwide. The program is specifically tailored to Bayer's values and is designed to give all managers in the Bayer Group around the world a sustained and uniform understanding of what Bayer understands by leadership. The program is divided into a number of modules such as “Learn to Lead” and “Bayer Leadership Excellence,” which gradually prepare managers for their leadership role in the Group. To ensure lasting success, CT uses additional telephone coaching to help managers put the modules into practice. The international rollout started in Europe and North America in 2010 and the program is now being introduced in Asia. A special train-the-trainer program was developed for this purpose in Leverkusen and has been implemented in the regions. In the final step, Latin America will be included in the program.
In 2010, Currenta strengthened its management culture and stepped up dialogue between employees across departments and hierarchical levels through the “Take the lead” program. The aim is to motivate all employees to utilize their competencies profitably and extend their knowledge. The initiative includes the continued use and extension of established tools such as 360° feedback and a Pulse Check questionnaire. For the first time, employees were asked to rate the attractiveness of their employer and for their views on leadership qualities. An extensive seminar program for managers including modules on leadership and personnel development has been developed specifically for Currenta in order to strengthen the leadership competencies of the company‘s managerial employees and drive forward personnel development.
In 2010, Currenta initiated a collaboration with Hogeschool Zuyd in the Netherlands, offering a university course for employees. The collaboration enables Chempark employees to take a part-time degree course at the university’s site in Heerlen, leading to a Bachelor of Applied Science or Bachelor of Engineering.

Knowledge transfer and best practices

Utilizing knowledge in production is the purpose of Bayer MaterialScience’s “Fit in Production” program. The principal aim is to ensure that all production employees have a comparable level of qualification and can therefore respond safely and appropriately at all times. This global program standardizes the content of training. Every plant included in this continuing education program goes through a FIT Loop. During this process, production experts, production supervisors and their teams jointly develop best-practice training concepts and case studies that can be used for training in the production plant. They then implement these among their colleagues in the plant. The special feature of the FIP method is that as well as establishing training concepts and drafting detailed practical training overviews, employees gain methodological knowledge.
An integrated continuing education concept for laboratory staff in Medical Chemistry at Bayer HealthCare’s Wuppertal site has also proven very effective. The aim is to extend the knowledge of the approximately 190 laboratory staff and utilize it for the benefit of the entire organization. Elements include, for example, a series of in-house seminars for laboratory technicians. Over a three-year period, laboratory managers give participants a deeper understanding of the principles of organic chemistry. In addition, in-house colloquia are organized once a month to help experienced employees broaden their knowledge. Speakers include technical staff and laboratory managers. The concept also includes workshops to address difficult issues.

Activities in India, Hong Kong and the United States

Bayer HealthCare runs a mentoring program in India too. The underlying aim is to bring together talented youngsters and more experienced colleagues. For one year, managers act as mentors for one mentee each from different parts of the company. The first mentoring program for three upcoming managers was completed in 2010.
Bayer CropScience also offers a range of training programs in India. These serve to foster the development of young high potentials and employees over 40. The courses run by the XCEDO Academy mainly target regional managers, field marketing managers and the frontline field force. Similarly, the NEIV management program comprises further training for high potentials. The two-week “Prayaas – Effort” program has four core themes: Share, Care, Teach and Grow. It comprises knowledge transfer workshops and voluntary activities such as fundraising. In addition to its measures in India, Bayer CropScience organized a range of other training and development programs in 2010. These ranged from a Leadership Academy to training in creative and unconventional ways of thinking and the three-year Passport Program for senior managers.
Bayer MaterialScience runs a variety of training programs in Hong Kong. Alongside a training initiative and a development program for talented employees, these include graduate trainee and volunteer programs. The volunteer programs give employees an opportunity to undertake voluntary work with young people or senior citizens or to engage in environmental protection.
In the United States, Bayer runs “Sustainability Thinking Education Pilot” (STEP), a three-stage program introduced in December 2010. Interested employees can take a web-based training program to achieve the first level: Sustainability Contributor. This is followed by a two-day workshop with an expert leading to a qualification as a Sustainability Practitioner. The third step is a one-day workshop, leading to the goal of Sustainability Leader. The content of the program includes business value, contextual intelligence, sustainability principles and creative thinking.
In 2010, these measures were complemented by the work of the Competence Training (CT) unit at Bayer Business Services. Many of the projects outlined here, for example, the “Fit in Production” program at Bayer MaterialScience, could not have been realized without input from CT. Thousands of employees undertook a wide variety of web-based training (WBT) modules created by the team at BBS. Examples are the compliance and data protection WBT modules. A health management program to reinforce work-life balance was also introduced in 2010.

Occupational safety: actions and ideas in the subgroups to improve safety [ @89 ]

Bayer HealthCare has introduced a global initiative to reduce traffic accidents involving members of the field force. A brochure was distributed to Bayer HealthCare sales organizations around the world with information on how to develop their own accident prevention program. Many regional sales organizations have already implemented the recommendations. For example, in Canada, a special driving safety course is now mandatory for all members of the field force. Ecuador has adopted a holistic approach including hearing and eyesight tests, as well as training personal and technical skills. In Germany, Bayer Vital GmbH is planning to develop an intranet-based safety training module.
Bayer MaterialScience introduced a CEO Safety Award in 2009. This award is presented by Patrick Thomas, Chairman of the Board of Management of Bayer MaterialScience, and honors exemplary safety measures. This initiative has been very well received and many excellent suggestions were submitted in both 2009 and 2010.
Two examples are the Fleet Safety Program in the United States, which comprises an extensive and proactive range of measures to improve safety while driving, and the Quarterly Safety Walk Program at BaySystems in Japan, which is designed to protect employees at the site. Once a quarter, offices and production facilities are inspected by members of the Safety Council on the basis of a defined checklist. Any necessary action is taken at once.
In addition to the CEO Safety Award, Bayer MaterialScience organizes a global BMS Safety Day in December. On that day the Executive Committee calls on company employees and management worldwide to focus on the topic of “safety” in production plants, laboratories and offices. The latest ideas submitted for the CEO Safety Award are announced at the Safety Day and information about them is made available. That has led to a brochure entitled “Our Responsibility to People, Nature and the Environment.” BMS has also developed training materials to improve safety in offices.
Currenta also organizes safety campaigns in its business units. An annual budget of €200,000 is provided for this. Any employee can put forward suggestions. One key focus of attention is the prevention of accidents caused by tripping and falling as these account for about half of injuries leading to lost work days in the company. Last year, an obstacle course was set up to give employees a practical insight into situations that involve a risk of slipping, tripping or falling. Experts from the Employers’ Accident Liability Insurance Association led more than 200 employees from the Infrastructure Services Department through the obstacle course in a week-long campaign. In addition, 700 employees attended road safety training sessions organized for all Currenta employees in collaboration with the German automobile club ADAC as part of the program „Working together to increase safety.”
Currenta also organized further anti-addiction workshops in 2010 at the Dormagen site. These workshops have been offered to all trainees there since 2006. The aim is to raise the awareness among young men and women of the signs and risks of addiction. Special spectacles are used to simulate a state of inebriation and give them a feel for the impact of alcohol and show how this can affect them when operating machinery. A guideline also provides information on dealing with possible addiction.

Examples of health promotion programs at Bayer subgroups  [ @90 ]

For many years, Bayer HealthCare has had a range of activities to foster employees’ health. These are coordinated systematically at many sites because the underlying challenges require a holistic approach. These challenges include demographic change, the rising incidence of mental illness, and the fact that health care provision can be a criterion that skilled employees use to select their employer. Occupational health management bodies have therefore been established at many sites. At the heart of Bayer HealthCare's health promotion programs are human resources management, occupational health and safety management, conventional occupational medicine and health promotion, the reintegration of employees after prolonged periods of illness, preventing addiction and the personal responsibility of employees.
In 2010, Bayer CropScience commissioned a global report on health in the workplace and the measures in place to address this issue. The results show that, except at a few small regional offices, the corporate health care program has been implemented worldwide. Response to of the activities is good, with especially high interest in preventive check-ups and cardiovascular checks. Measures to prevent cancer, infectious diseases and muscular-skeletal disorders have also been well received. The examples and best practices derived from the report will be used to improve the Bayer CropScience health care program in the coming years.
The CEO Safety Award introduced by Bayer MaterialScience in 2009 also makes a contribution to occupational health management. The suggestions implemented through this initiative include preventive back and muscular training and the Pittsburgh Ergonomics Program in the United States.
The idea for back exercises evolved in cooperation with experts from the TSV Bayer Dormagen sports club. Individual in-house ergonomics training sessions are held to teach employees correct posture and the best way to use their muscles to reduce pressure on the spine. Together with the instructors, specific areas of strain such as lifting drums or driving fork-lift trucks have been targeted. Training videos provide comparisons showing the correct movements.
The Pittsburgh Ergonomics Program, an idea from the United States, is a systematic method of analyzing an employee’s workplace on the basis of individual needs and requirements. Employees are actively involved through annual training sessions and workshops and are personally responsible for reporting changes in their health status. Employees, supervisors and ergonomics instructors jointly identify health risks and take action to counter problems before they cause serious damage or address health problems before they become chronic.

Employees

 


The objective of our innovative and responsible human resources policy is to foster and strengthen our employees' performance and their enormous commitment, because these essentially form the basis for our corporate success.

Leadership, Integrity, Flexibility and Efficiency are Bayer’s newly formulated values. The initial letters of these four words can be simply expressed in one word: LIFE. These values are now to be presented to all Bayer employees in a global communications cascade.
A responsible, long-term human resources policy plays a central role in the management of the Bayer Group. This is highlighted by LIFE [ @72 ], our new system of values. life stands for Leadership – at all levels in the company – Integrity, Flexibility and Efficiency. Our goal for the future is to implement these values systematically in our day-to-day work to enhance employee satisfaction and benefit everyone who works for Bayer.
The Bayer Group had 111,400 employees worldwide on December 31, 2010, which is 400 more than in 2009.
5_Employees* by region and function
2006**2007**2008**20092010
Europe57,80056,20055,50054,60054,300
North America17,20016,80017,00016,60016,400
Latin America/ Africa/Middle East13,70014,30015,30016,80016,100
Asia/Pacific17,30018,90020,80023,00024,600
Production47,80048,80049,10048,40047,200
Sales37,40036,90038,00040,20041,100
Research and development12,30011,60012,30012,80013,200
Administration8,5008,9009,2009,6009,900
Total106,000106,200108,600111,000111,400

* The number of employees on either permanent or fixed-term contracts is stated in full-time equivalents, with part-time employees included on a pro-rata basis in line with their contractual working hours.
** The figures for 2006 - 2008 included employees on temporary contracts rather than trainees.

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Most of the Group-wide job cuts announced in November 2010 will be implemented so as to minimize social hardship. A large proportion of our 36,200 employees in Germany are protected against dismissals for operational reasons under an agreement with the Works Council that runs until the end of 2012.
Group-wide, the staff fluctuation rate increased from 7 to around 9 percent. As in previous years, the fluctuation rate varied by region. While it was between 10 and 13 percent in North America, Asia/Pacific, Latin America, Africa and the Middle East, it remained constant at 7 percent in Europe, which accounts for over half of our employees. The fluctuation rate includes employer- and employee-driven terminations, retirement and deaths. In Germany, contract terminations by employees accounted for just 0.4 percent. Personnel expenses increased from around €7.8 billion in 2009 to around €8.1 billion in 2010, principally due to currency effects and regular pay raises.

Targets 2015

Diversity

  • Increase the proportion of female managerial staff to approaching 30%

Occupational safety

  • Reduce the number of occupational injuries with lost days by 25% to 0.3 LTRIR ≡ 1.5 MAQ

Respecting employee rights worldwide

We respect the United Nations’ Declaration of Human Rights. Moreover, as a founding member of the UN Global Compact [ 73 ] we respect its 10 principles. The most important principles for respecting employee rights at Bayer are set out in our Human Rights Position [ 74 ]. Key elements in our commitment are compliance with strict standards to provide a safe and healthy working environment, a strict ban on child labor and forced or compulsory labor and all forms of discrimination, as well as a clear commitment to freedom of association and our corporate responsibility to maintain fair and competitive working conditions. In addition, our Group-wide life values, the Bayer Sustainable Development Policy [ 75 ] and our Corporate Compliance Policy [ 76 ] require all employees worldwide to treat colleagues, business partners and customers with respect.
In 2008, we launched an information campaign on human rights in German-speaking countries. By the start of 2011, this had been rolled out to all countries in which the Group operates. A brochure and a training presentation are used to familiarize employees throughout the Group with the objectives and content of our Human Rights Position and train them to respect these principles in their daily work. There is also an obligatory module on human rights in “Discovering Bayer“, the mandatory e-learning tool for new employees, and we run training courses and seminars on this issue throughout the world. Our companies in China have decided to introduce a special online training program for their employees on respecting human rights.

Responsible conduct and collaboration

Employee representation is part of Bayer’s commitment to responsible conduct and collaboration. The working conditions of more than half of our employees are governed by collective or company agreements. For example, staff working for Bayer Group companies in China already have elected union representation at six sites, with three more to follow shortly.
6_Percentage of collective agreements in 2010 by region 

Region /Area
EuropeNorth
America		Latin
America /
Africa/Middle East		Asia /
Pacific		Bayer Group (total)
Percentage of employees
covered by collective agreements, especially on compensation
and working conditions*		888462055.4
Percentage of full-time employees
with contractually agreed working weeks of max. 48 hours**		100100100100100

* Collective or company agreement
** Standard employment contracts, excluding exempt employees

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In the United States, there is a Bayer ombudsman instead of collective agreements. The ombudsman is independent and handles information objectively and confidentially. He is personally responsible for assuring open communication and a culture of trust, and helps implement our high standards of integrity and ethical corporate governance.

A modern corporate culture

Central elements of our human resources policy are systematically motivating employees and steadily developing their abilities. Last year, we gained an important insight into this through our first ever global employee survey. Around 70 percent of employees took part in this anonymous survey, so we received feedback from more than 68,000 employees worldwide.
Our employees were asked 60 questions on aspects ranging from current morale and corporate culture to development perspectives and decision-making processes. They were also requested to give their opinion on their workload, compensation and general satisfaction. The findings were discussed on several occasions by the Group Management Board.
The outcome shows, for example, that 87 percent of employees identify strongly with Bayer and regard it as an attractive employer. 81 percent of employees are highly motivated: their commitment to the company and its performance is above-average. We also received a number of awards [ 77 ] worldwide in 2010 that confirm these views and our attractiveness as an employer.
Our employees’ understanding of our corporate strategy and the ratings received for strategic leadership were below the top scores at other companies. In fact, leadership is one of our new life values, with the “L” naturally standing for leadership.

Dialogue

Employees ask the CEO

Since December 2010, employee communication at Bayer has included a new “Ask the CEO” option. Group employees can submit questions personally to Dr. Marijn Dekkers, Chairman of the Board of Management of Bayer AG: any employee can post a question in the intranet via the Bayer News Channel. All employees worldwide then vote on what they consider to be the most interesting questions. Out of these, the most frequently asked questions are submitted to Dr. Dekkers. This new communication format underscores Bayer’s pledge to engage in open and direct dialogue with all employees. The topics are chosen by members of the workforce. Within a very short time, more than 300 proposals were submitted, ranging from questions on the Group’s strategic focus to the advancement of talented employees in the subgroups. Examples from the “Ask the CEO” initiative can be viewed on the intranet.
The second area where we need to take action is the communication of our strategies and objectives. The holding company and subgroups have set up a joint task force to examine how understanding among the workforce in this area can be improved. It is expected to present its initial results shortly.

Transparent and efficient employee communication

Providing regular and timely information for employees is very important to us. Printed publications still play a significant role in this throughout the Group. Alongside Group-wide publications, our subgroups and service companies regularly publish their own employee magazines.
Some changes were made to our online corporate media last year. The global employee portal HR//direct online was redesigned in December 2010 and offers employees a new and improved range of services. Bayer CropScience is to continue the live online broadcasts launched in 2010 of its Management Information Forum, a regular information event for managerial staff. With the aid of an electronic live-talk system employees can ask questions online during the event. These are then answered directly.
Bayer provides employees with regular internal information on current developments, both within the Group and outside, together with background information. Full and timely information is issued on significant operational changes in compliance with the relevant national and international requirements. Far-reaching changes are communicated to employees through a wide range of carefully coordinated media. Special information meetings held by the management are another important communication channel.

Our social responsibility for our employees

Social responsibility is an important element in our corporate policy. Nearly all of our employees either have statutory health insurance or can obtain health insurance through the company. Around three-quarters of Group employees also have access to some form of company pension plan. The directive on occupational pension provision in the Bayer Group in place since July 2010 confirms the enormous significance of company-financed pension plans, both in positioning Bayer as a preferred employer and as part of our responsibility to our employees. In 2010, we therefore introduced nationwide pension plans for our Group companies in Russia and Turkey for the first time.
7_Health insurance and pension plans for employees in 2010 by region (percent)
Region /AreaEuropeNorth AmericaLatin
America /
Africa/Middle East		Asia /
Pacific		Bayer Group (total)
Percentage of employees with health insurance*9790939094
Percentage of employees eligible to take part in a company or company-financed pension plan**8592257074

* State or employer/employee-funded
** Including programs to supplement statutory pension plans

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Employee compensation and benefits

Through a uniform compensation system for employees around the world, Bayer creates transparency and ensures performance-based remuneration and incentivization of employees. We are able to offer our employees basic compensation that takes account of their tasks and level of responsibility, at the same time analyzing the compensation offered by our competitors. This is supplemented by attractive performance and profit-related components and extensive additional benefits.For 2010, Bayer allocated more than €500 million to provisions for payments to eligible employees under its short-term incentive (STI) program alone. In addition, employees can purchase shares in the company on special conditions under a variety of employee stock programs [ 79 ]. In many countries, these are part of the regular fringe benefits and offer employees a further opportunity to participate in the company’s business performance.
Members of the senior and middle management also benefit from the “Aspire” program, a uniform, Group-wide stock-based compensation program introduced in 2005. It is based on ambitious earnings targets and – in the case of Group Leadership Circle members – requires an appropriate personal investment in Bayer stock (see also page 224ff. of the Annual Report 2010).

Accepting and fostering diversity

As a global enterprise, Bayer aims to have a diverse and international workforce. For example, a total of 21 nations are represented in the Group Leadership Circle, the company’s most senior management level. More than two-thirds of these executives are native to the countries in which they work. We intend to further increase the proportion of local managers in the coming years, especially in fast-growing emerging markets.

8_Bayer Group workforce structure
WomenMenTotal 2010
Senior management (incl. Group Leadership Circle)2001,2001,400
Management10,00020,90030,900
Skilled employees29,10050,00079,100
Trainees8001,8002,600
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Our employees have a wide variety of talents, lifestyles and social and ethnic backgrounds. Accepting and fostering this diversity is a keystone of Bayer’s future business success.
The Declaration on Diversity at Bayer [ 80 ] adopted in 2007 underscores this conviction. It has two main objectives: our workforce should reflect the diversity of society, and employees throughout the Group should be able to contribute their abilities without discrimination or prejudice based on gender, race, religion or sexual orientation. Selection of personnel to fill vacancies throughout the Group is based exclusively on specialist expertise, development potential and individual performance.
As in 2009, this principle is supported by a range of networks, especially in the United States. These give like-minded employees a platform for discussion and to represent their interests within the Group. The latest of these is the ProMoms Employee Networking Group at Bayer HealthCare in the United States, which provides a discussion and support forum for working mothers. It has also set itself the objective of fostering the professional development of mothers within the company. In the past, “Angle-B,” a network of gay and lesbian employees, played a key role in improving Bayer's directives on anti-discrimination and equal opportunities in the United States. An overview of employee networks [ @81 ]is available online.

More women in management

Increasing the proportion of women working for the company and especially the percentage of female managers is another key aspect of our medium-term endeavors to increase diversity. Group-wide, the proportion of women in our workforce was around 35 percent in 2010. Women accounted for around 37 percent of skilled employees and nearly 31 percent of trainees.

News

Discrimination of women: Bayer rejects claims in the United States

In March 2010, a lawsuit was filed against Bayer in the United States. The allegation was that Bayer HealthCare Pharmaceuticals had discriminated against certain female employees because of their gender. The company denies the allegation of gender discrimination and will defend itself vigorously against it. The Bayer Group is committed to the non-discrimination and equal treatment of all employees and has issued clear directives which have to be complied with by all companies and their workforces. Employees have various options open to them for obtaining support for their concerns. There are also various initiatives for promoting diversity and the equal treatment of employees in the company. Bayer has been honored on numerous occasions for these activities.

Targets 2015

» Diversity
Bayer aims to raise the proportion of women in the top five contract levels across the Group to approaching 30 percent by 2015. At present, women only account for around 21 percent of the Group’s worldwide management team. At the most junior management level, in other words the entry level for young academics, around 35 percent of employees are female. That is a pleasing proportion and makes us optimistic that we will see far more talented women at higher management levels in a few years. At the most senior management level, the Group Leadership Circle, the proportion of women Group-wide was 6.5 percent, 1 percent more than in 2009. We also aim to raise the proportion of women on the Supervisory Board to at least 20 percent in the medium term.
Bayer HealthCare, the subgroup with the highest proportion of female employees, namely around 45 percent, also has the largest number of employees overall. This subgroup has particularly wide-ranging programs to foster the development of female employees [ @82 ].
The remuneration of men and women is a central aspect of equality of opportunity. At Bayer, equality naturally applies to the remuneration of employees. Individual salaries are based on each employee’s personal and professional abilities and the level of responsibility assigned to them. At all managerial levels, this is based on uniform evaluation of all positions throughout the Group using the internationally recognized Hay method.
In areas of the Group and jobs that fall within the scope of binding collective bargaining agreements, there are no differences in pay based on gender. This also applies to the remuneration of trainees in the Bayer Group.

Flexible working hours

Flexible worktime arrangements often play a key role in helping employees balance work with personal or family life. In many countries, Bayer offers its employees a wide range of opportunities to vary their working hours. These range from flexible worktime models and part-time employment through teleworking to additional leave and the provision of child care for employees with children. For example, at our main companies in Germany almost 73 percent of non-managerial employees are able to shape their working hours flexibly to meet their personal needs. In Germany, we also offer around 410 places for employees’ children in child care facilities.

Addressing the effects of demographic change

We use a wide range of measures to address the challenges posed by demographic change, especially in many industrialized countries.
Since 2007, the Bayer Group has conducted extensive analyses of the age structure of the workforce as the basis for predicting its development up to 2020. This systematic procedure shows that we have recognized the trend, take its repercussions seriously and are planning appropriate measures. Although we do not face an acute shortage of skilled staff at present as we still have a large number of trainees and are regarded as a very attractive employer by external specialists, retaining the often valuable experience of older employees in the company and ensuring that it is passed on to the up-and-coming generation are very important to us. Moreover, it will become even more fundamental in the future in the face of demographic change. Passing on knowledge from the older to the younger generation is one of the aims of the Bayer Senior Experts Network, known as  BaySEN [ 85 ] for short.
These measures to address the challenges of demographic change are supplemented by the ongoing expansion of occupational health management.

Integration and support for disabled employees

Integrating and supporting disabled employees is another significant issue for Bayer worldwide. We employ people with disabilities in many countries. Most of them work for our companies in Germany, where they make up 4.4 percent of the workforce. This high proportion is due to the particularly widespread integration of people with disabilities in Germany. At most of our German companies, there is a special advisor to support disabled employees and represent their interests.
Traditionally, advocacy of people with disabilities has been particularly strong in the United States. Since 1999, our U.S. headquarters in Pittsburgh has run a program to foster the training and employment of people with disabilities. In 2010, Greg Babe, President of Bayer Corporation, who initiated the program, received the Justice for All Award from the American Association of People with Disabilities for his long-standing efforts on behalf of the disabled.

Vocational and ongoing training

Bayer hired around 4,000 university graduates for specialist and managerial positions in 2010. More than 750 university graduates were recruited in India, around 700 in Germany and over 350 in the United States. These figures show that university graduates around the world rate Bayer as an attractive employer. That was confirmed by various surveys and a range of awards, for example for the Bayer careers portal [ 83 ]. Diversity, a modern working environment, international career prospects and social commitment are just some of the factors that make Bayer an attractive employer.
Vocational training [ 84 ] of young men and women is one of the most important ways of countering a possible shortage of skilled workers as a result of demographic change. Worldwide, we had more than 2,600 trainees in 2010. In Germany alone, we again took on more than 900 young people on courses leading to more than 20 vocational qualifications. Group-wide, we had about 100 fewer trainees than in 2009. Reasons included the reorganization of vocational training at our subsidiary Bayer Bitterfeld. Since May 2010, trainees on certain courses at Bayer have been given an opportunity to broaden their horizons through exchange programs that give them an insight into work at other sites. More information on the perspectives [ @86 ] of trainee pharmaceutical technicians, animal caretakers and safety & security specialists can be found online.
To alert high school graduates and students to career opportunities at Bayer at an early stage, we expanded our already extensive university recruiting activities in 2010 by placing corporate presentations on social networking sites. In addition, we once again offered more than 2,700 interesting internships to students from a variety of disciplines in 2010.
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Ongoing training and personnel development

The ongoing training of our employees plays a key role in our human resources strategy. Our goal is to foster the development of employees’ potential as effectively as possible and to align their vocational skills and knowledge to the changing demands of our business. The central focus is on acquiring, extending and maintaining professional knowledge. In 2010, we invested more than €130 million in the initial and ongoing training of Bayer Group employees. That was 4.1 percent more than in 2009. However, training costs as a percentage of personnel expenses decreased slightly to 1.8 percent because personnel expenses were higher than in 2009.
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Our training programs [ @87 ] are broadly based, reflecting the widely varying training and development needs of our employees.

Occupational health and safety

Avoiding accidents and protecting the health of our employees in the workplace are two of our prime objectives. That includes identifying and assessing potential hazards, extensive risk management and ensuring a healthy working environment. Our health, safety, environmental protection and quality (HSEQ) activities support the Responsible Care Global Charter [ 88 ], a voluntary global initiative of the chemical industry. Our objectives are to minimize the risks to people, the environment and the company and to integrate HSEQ management into our business strategies and processes.
Worldwide, our endeavors center on making working at Bayer even safer. In line with this, we have issued Group-wide directives on occupational health and safety. In addition, the subgroups and service companies have their own systems, committees and working groups to manage HSEQ.

Further reduction in occupational injuries

One pleasing improvement in 2010 was a further reduction in Bayer’s lost time injury frequency rate. The steady downward trend seen in recent years continued. The table shows the lost time injury frequency rate in past years in terms of the MAQ, which indicates the number of occupational injuries per million hours worked. The ratio of 1.7 is well within our target, which was to achieve a level of less than 2.0. Action taken by the subgroups and service companies made a considerable contribution to this good performance.
12_Occupational injuries affecting Bayer employees
20062007200820092010Target 2010Target 2015
Occupational injuries to Bayer employees resulting
in days lost (MAQ**)		2.82.42.22.01.7
< 2.0
0.3 (LTRIR)*
Reportable occupational injuries to Bayer employees (MAQ**)4.33.73.63.13.1
Fatal accidents (total)94244
– of which Bayer employees54244
– of which contractor employees***40000

* LTRIR = lost time reportable incident rate, 0.3 LTRIR ≙ 1.5 MAQ
** MAQ = million working hour quota (injuries per million hours worked)
*** Employees working for third parties

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Targets 2015

» Occupational safety
We also track injuries to Bayer employees requiring medical treatment. This indicator shows both injuries resulting in lost worktime and those that do not lead to this. In 2010, this overall measure of all reportable injuries, which is also based on injuries per million hours worked (MAQ), was unchanged from the previous year at 3.1. Our objective is to reduce our occupational injury rate to 1.5 MAQ ( 0.3 LTRIR) by 2015. More information on the reporting of occupational injuries can be found on page 68.
An analysis showed that most accidents happened while employees were walking, running, climbing stairs or engaged in manual work. As in previous years, incidents involving chemical exposure were the exception. Our goal is to reduce injuries further through a wide range of special programs, measures and training [ @89 ] so we can offer our employees a safe and healthy workplace.
Sadly, there were four fatal accidents involving Bayer employees in 2010. Two employees died in traffic accidents in India and Poland. One employee fell off a stationary trailer in China and sustained fatal head injuries, and one person died in a fire at our production facilities in Ankleshwar, India. It is our policy to investigate every accident thoroughly so we can define measures to prevent a similar accident occurring in the future.

Contemporary health management

One significant and steadily growing aspect of human resources policy at Bayer is preventive health care and health-related advice for employees. We offer a wide range of programs to foster and enhance the health and working ability of our employees, especially as in the future employees in many parts of the world will have to work until they are older.
Bayer’s offering includes a broad array of health promotion activities and programs [ @90 ] for employees in more than 30 countries. The focus and scope of these programs depends on the specific needs of the local workforce. The spectrum ranges from free vaccinations and regular check-ups, through in-house and external sports programs and health-related advice to the provision of in-house physicians and medically supported reintegration of employees after a prolonged period of illness.

News

Bayer launches new health promotion program

In January 2011, Bayer sent out the first personal letters inviting just under 2,000 employees in Germany to take part in the company’s new health promotion initiative. Employees who take up this offer will receive an extensive medical check-up to give them a sound insight into their health situation and personal risk factors, together with advice on preventive care. The health care offering is part of the collective agreement on life worktime and demographic change that was entered into at the end of 2010 for 21,000 payscale employees and managerial staff.
In 2010, Bayer signed a collective agreement on life worktime and demographic change in Germany. Under this program, the company offers non-managerial employees an extensive medical check-up. The agreement also significantly reduces the individual workload on specific employee groups in the years prior to retirement.
Employees at the Pittsburgh site in the United States were offered the “Wellness Works” program during its test phase. This program, which aims to identify health risks and promote a healthier lifestyle, was rolled out nationwide at the end of 2010. Moreover, special WorkLife programs are offered in the United States to help employees achieve a balance between family and private life and the demands of their work.
Alongside these initiatives to maintain and enhance the health of our employees, we offer supplementary private health insurance to our employees, especially in countries where there are shortfalls in the public health care offering. The scope of such programs is regularly reviewed and extended. For example, the supplementary insurance programs offered to employees and their families in Central America, Thailand and Vietnam have been upgraded as a result of a review.
The health of members of the workforce is extremely important for a global company like Bayer. We therefore keep our employees informed about current health risks in other parts of the world and provide advice on how they can protect their health. The Group has a dedicated directive which defines the action to be taken in the event of pandemics since these tend to bring new and unforeseen health risks.
Last updated: May 17, 2011
Copyright © Bayer AG
http://www.sustainability2010.bayer.com/en/employees.aspx

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