High attractiveness as an employer. Our activities and measures for enhancing our attractiveness as an employer are designed to enable us to recruit and retain a sufficient number of specialized employees and qualified managers in the competition for talented staff. Our primary objectives here are to ensure attractive and fair compensation and to establish and maintain a work culture that enables outstanding performance and a high level of motivation and satisfaction among our employees and managers.

Attractive and fair remuneration. We remunerate work in accordance with the same principles at all our affiliates around the world. Our Corporate Compensation Policy, which is valid for all groups of employees, establishes the framework conditions and minimum requirements for the design of the remuneration systems. Internal audits are conducted on a random basis to make sure these conditions and requirements are met. In our desire to offer salaries and benefits that are customary in the industry and the respective markets, we also give consideration to local market conditions within the specified framework. The salaries are determined on the basis of the employees’ tasks and performance, and in line with their qualifications and experience. In setting the remuneration of the employees we are not guided by gender or place of origin, but exclusively by the employee’s job and responsibility.

Performance assessment and target-oriented leadership. In order to measure and control each individual’s performance, we use various standardized leadership processes for the different employee groups. Within the framework of our IMPULSE human resources development and performance process, our executives define the contribution they and their team can make to safeguard the success of the company.

This year we began evaluating executives solely on the basis of the company’s success. The LEAD leadership process is used for lower management levels, while the NAVI process is used for employees of Daimler AG. In these processes, the individual agrees to quantitative and qualitative targets with his or her supervisor, and employees generally agree to a personal development goal as well. Depending on the individual’s function and management level, the goal agreements can also include diversity and compliance goals. Goal attainment is reviewed annually and the employee’s leadership and work performance, as well as his or her development potential, are then discussed in company-wide management conferences. The supervisor personally discusses the results with the employee, and agreements are also reached regarding the employee’s professional development.

At the end of the year the supervisor determines whether the objectives have been reached. The individual’s goal attainment, leadership and work performance, and development potential are then discussed in companywide management conferences. The supervisor personally discusses the results with the employee, and potential measures for professional development are then discussed as well. The “MyContribution” monitoring instrument will be made available for use with Level 4 managers in the future.
MyContribution

Regular income reviews for employees and managers, which are controlled by the human resources units, ensure transparency. Salary decisions are made on the basis of the “multiple-eye principle” in order to prevent possible discrimination. The remuneration guidelines and tables for employees paid according to collective bargaining wage tariffs can be viewed on the intranet. In addition, employees have the right to submit complaints at the works council and company levels. We are now providing additional information for the implementation of Germany’s remuneration transparency act. For example, we show employees how comparable groups of both genders are paid in accordance with the various remuneration components.

In cases where Daimler AG and its Group companies have signed collective bargaining agreements, they often also offer voluntary benefits that are agreed upon with the respective employees’ associations. These benefits primarily consist of employer-funded retirement contributions as well as profit-sharing agreements for the respective company. For example, the eligible employees of Daimler AG will receive a profit participation of €4,965 for 2018 (2017: €5,700). In addition, our employees can avail themselves of a wide variety of sports facilities and social amenities, ranging from daycare centers to the counseling service for people in extreme situations.

Modern working conditions. Today’s living and working conditions require working times to be flexibly organized in accordance with individual needs. The aim is to promote high performance, not mere attendance. Our wide range of flexible working options boosts the performance of our employees and managers and makes it easier for them to reconcile their work with their personal lives.

For example, Daimler AG put a company-wide agreement into effect on December 1, 2016 that gives people the right to mobile working, provided their tasks make this possible. In this way, Daimler is promoting flexibility and self-determination while building on a culture of trust. The employees are extensively availing themselves of mobile working opportunities.

Reconciling work and family. Of the 3,877 employees who took advantage of parental leave at Daimler AG during 2018, 82 percent (2017: 79 percent) were men. We encourage all employees who take parental leave to return to their jobs at the company, because we depend on their knowledge and experience.

We offer 705 places in our own daycare centers as well as approximately 200 reserved places at cooperating facilities. In addition, we cooperate with a third party that assists employees in Germany in finding childcare providers. We have opened additional daycare centers in Hungary, the United States and Japan. In addition, we offer places for refugee children in Stuttgart and Kassel. We have also set up parent-child rooms at several locations and offer childcare services at business events.

Furthermore, company agreements at Daimler AG enable employees to suspend their careers for several years for a qualification program or a sabbatical or to provide home care — with the promise that they can return to Daimler AG afterwards. In 2018, a total of approximately 430 employees took advantage of the opportunity to take off work for a prolonged period, with 323 doing so in order to attend qualification measures (2017: 369), 107 to take a sabbatical (2017: 122), and 4 to provide home care (2017: 6).

Job sharing. We also promote job sharing, in which two employees share the same task or position and work together up to 60 hours per week. This provides managers in particular with a means of reconciling the needs of work and family. Job sharing also benefits the company at all levels, and Daimler is supporting this with a variety of measures. Managers can work part-time at Daimler. However, this arrangement requires reliable agreements by everyone involved. In mid-2018, more than 250 managers worked in job-sharing positions at the team, department and unit manager levels.

Part-time communities. Online platforms are available for employees, team leaders and department heads who would like to work part-time. On these platforms, participants can find potential job-sharing partners as well as like-minded individuals with whom they can share ideas.

Social Intranet at Daimler. With the launch of the new Daimler Social Intranet in 2018, we now have a globally standardized point of entry into the internal digital world of news, collaboration and information at the Daimler Group. The new Social Intranet replaces the internal social media platform previously offered via the Daimler intranet. Employees receive a personal profile and can use the Daimler Social Intranet to communicate with colleagues, collaborate in virtual workspaces, and network with people at any Daimler location worldwide.

The Daimler Social Intranet creates new possibilities for cross-functional and cross-departmental cooperation and open and dialog-oriented communication. The Social Intranet will help employees successfully shape the digital transformation. It will also enable them to put the new Daimler leadership principles into practice and experience the company’s cultural transformation at first hand. A project team from DigitalLife Strategy, IT and Corporate Communications has been responsible for the implementation of the new Daimler Social Intranet.

Recruiting digital talents. To supplement our standard recruiting process, we have an active sourcing program for recruiting employees for positions that are hard to fill. This applies especially to digital talents. To do so, we directly address potential candidates via social networks and digital platforms. We are proactively searching for candidates, contacting them online and digitalizing the recruitment process so that we can reach previously unexploited target groups and candidates from bottleneck profiles and thus gain experts for Daimler AG.

In addition, we are using global employer branding to position Daimler as an appealing employer brand that offers attractive jobs around the world. Our aim here is to address target groups where they are, for example through the use of Daimler Career social media presentations on Facebook, Instagram, and Xing, as well as via the Daimler AG on LinkedIn. We are also attracting attention to “Daimler as an employer” by implementing target group-specific and image-enhancing advertising measures — for example on online platforms and/or in print media and via poster and billboard campaigns in cities and universities. In addition, we make use of various formats such as reports, stories and looks behind the scenes that are created by and with employees in order to present an authentic picture of Daimler and the work atmosphere at the Group. All of these measures are designed for both potential job applicants who already know Daimler and people who are still relatively unaware of what Daimler has to offer as an employer.

Leadership 2020 — further development of the management culture. Our business is changing at a rapid pace. In order to remain successful in the future, we are changing our management culture and the way we cooperate. This is why we launched the Leadership 2020 initiative in 2016. Employees from more than 23 countries and all levels of management are currently working on Daimler’s future management culture.

Guidance is provided by new management principles that, among other things, make the company faster and more flexible and boost its innovative potential. Procedures, processes and structures are being called into question and changed in eight “Game Changers.”

For example, we are realigning our performance management, increasing the importance of teamwork, opening up alternative development paths, and introducing new instruments. In the future, we will also incorporate the feedback from supervisors, colleagues and employees into the human resources development process. In addition, we promote international job exchanges between people from various functions. Decision-making processes are being streamlined by reducing the number of decision-making levels. In this way, we are looking to become a faster company that can therefore concentrate even more strongly on strategically important decisions.

MyContribution. For us, a crucial element of the new performance management system is the initiative MyContribution. It mainly aims to encourage everyone to think about the contribution they can make to ensure the success of the entire team. The targets are continuously reviewed and adapted to current requirements in an ongoing dialog between the managers and their teams. This dialog occurs at the individual level as well as in the TeamPulseCheck. We launched the initiative in response to the challenges of a less plannable world. It enables us to adapt ourselves more rapidly to the current market situation and to implement solutions more efficiently. The implementation of MyContribution doesn’t necessarily require a top-down approach. Rather, every team member can define his or her own contribution to the team’s success at any time. The key element here is that the contributions are understood as team efforts. The coordination with the other team members aims to find the best possible solution for the company.

MyProfile. If they wish to do so, managers at Daimler can make information about themselves transparent for their own supervisors, for the HR unit, and for placement procedures. For example, they can present information about the stages of their careers as well as about their experiences, special skills, achievements and interests with regard to professional development. The digital profile can support their own development and, above all, promote networking within the company.

MyFeedback. Our MyFeedback application helps us cooperate in daily business by enabling us to handle feedback constructively and thus steadily become better. Requesting and giving feedback is one of the management tasks at the company. The leadership principles serve as the basis for viewing MyFeedback as a key feature of the performance management system. Instead of concentrating only on what managers accomplish, MyFeedback focuses on how they enable tasks and teams to make progress. In this way, we emphasize leadership and social skills in our actions. In line with the slogan “Better together with feedback,” this Game Changer creates the basis for an innovative management culture based on trust.

Agile structures. By 2020, a significant part of our workforce is expected to work in “agile” structures, including swarms across all levels of the hierarchy. Swarms arise wherever complex questions occur that don’t have immediately apparent answers. In an idea-finding phase, the participants develop and test new approaches and solutions. New virtual and more connected tools and forms of work are needed for this, of course. Moreover, our new innovation management system enables employees to submit their ideas quickly and easily and to discuss them with their colleagues. To this end, our newly founded Lab1886, for example, is supplying infrastructure, resources and project support at four locations on three continents. The Board of Management regularly discusses the initiative’s progress and decides what measures still need to be taken.
Qualification of personnel for the digital transformation
#DigitalHealth
Human-robot cooperation (HRC)
Industry 4.0 and exoskeletons

Successful employee survey. Our Group-wide employee survey is a key indicator of where we currently stand from the point of view of our employees, and what we need to do to improve the company in the future. The survey conducted in 2018 was based on a completely new concept. In September 2018, nearly 300,000 employees in more than 50 countries were invited to participate in the survey and send us their feedback. The Group-wide participation rate of 80 percent was the highest rate posted to date for a Group-wide employee survey at Daimler. This outstanding participation rate underscores our employees’ interest and their willingness to actively help shape the company’s further development. 75 percent of our employees who participated in the survey reported that they are satisfied or very satisfied with Daimler as an employer and that they are proud to work at Daimler.

Number of years at the company and labor turnover. Our employees’ great loyalty to the company is also expressed by the amount of time they have worked for Daimler. During the year under review the average length of time our employees have worked for Daimler decreased slightly to 15.8 years (2017: 16.1 years). In Germany, employees had worked for the Group for an average of 19.4 years at the end of 2018 (2017: 19.5 years). The comparative figure for Daimler AG was 20.2 years (2017: 20.3 years). Daimler employees outside Germany had worked for the Group for an average of 10.6 years (2017: 11.0 years). In 2018, our labor turnover rate amounted to 4.9 percent worldwide (2017: 5.1 percent).