Employees and society

Our identity as an employer

Collaboration and leadership

We create an innovative and respectful working environment in which our employees can develop in the long term and deliver the best results for MTU. Good collaboration and reliable leadership are important pillars of our success. We encourage the commitment of our employees and support our managers with their responsibility. In this way, we strengthen cohesion within MTU.


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We work in teams on our company’s challenges and tasks and support this by providing a working environment that sparks inspiration and brings us together.

Our working environment is shaped by our respectful leadership culture in which we support the commitment of our employees, recognize strong performance, promote flexible and digital working arrangements and welcome feedback. We offer our employees opportunities for long-term personal development, embrace diversity and inclusion, and protect our employees’ health and safety. This makes us internationally successful as a company and is a prerequisite for emerging from the crisis at full strength and being well prepared to master the upswing.

We want to offer our employees orientation and security, especially at the present time. Our goal is to strengthen confidence in MTU and further pave the way to a successful future. Because for the current tasks associated with major challenges such as digitalization, automation or climate change, we depend on bright minds with ideas, dedication and experience. Moreover, New Work is an important topic for us, and one that we are continuing to drive forward in various projects—from the design of modern workplaces and opportunities to new forms of collaboration and future-proof knowledge management.

 

10,313
employees at MTU
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We draw on a global workforce of motivated and highly qualified employees who are committed to pulling together to tackle tasks and challenges—including sustainability.

MTU’s global workforce decreased slightly in 2020, reaching 10,313 employees at the end of the year (2019: 10,660). In view of the economic crisis, we had to initiate measures to adjust our human resources capacity to the current situation. A reduction of 10–15% is envisioned by the end of 2021, which we will achieve for example by reducing the number of temporary workers, allowing fixed-term contracts to expire, offering older employees a phased reduction of their hours as they approach retirement, reducing working hours and leaving vacant positions unfilled. At the end of the reporting year, 93.4% of MTU’s total workforce was employed in Europe, and 84.4% in Germany alone. The share of the workforce in North America was 6.6%. The number of permanent contracts remains very high (93.9%).

MTU’s employees by region

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GRI102-8: Total workforce at fully consolidated sites including apprentices, interns, thesis students and doctoral candidates, students and holiday staff, temporary part-time employees on parental leave, and marginal workers, but excluding temporary workers and inactive employment contracts; as at December 31 each year. MTU’s shareholdings in joint ventures in Europe and Asia are not fully consolidated and are therefore not included.

 

Responsibility for employment issues lies with the Executive Board. The CEO is also the Director of Labor Relations. MTU’s human resources department sets policy in line with the annual and long-term growth targets laid down in our corporate strategy. It also assists in efforts to achieve these targets. The full Executive Board receives regular reports on human resources policy. Responsibility for successful implementation lies with local human resources departments and the respective technical departments and managers. We have a human resources strategy that we use to position MTU as a sustainable employer for existing and new employees alike.

Our contribution to SDGs 4, 5 and 8

The following UN Sustainable Development Goals (SDGs) are relevant to MTU’s human resources work: SDG 4 on “Quality education”; SDG 5 on “Gender equality”; and SDG 8 on “Decent work and economic growth.” We offer challenging high-tech jobs in all areas and are sticking to our apprenticeship program, which continues to offer young people reliable prospects for the future.

Quality education
Gender equality
Decent work and economic growth

→ Learn more about our contribution to the SDGs of the UN’s 2030 Agenda

Employee groups by region GRI 102-8

 

2020

2019

2018

Blue collar workers

 48.5%

 49.5%

 48.5%

Germany

 48.5%

 49.3%

 49.4%

Rest of Europe

 45.9%

 50.9%

 51.5%

North America

 52.1%

 49.1%

 49.5%

White collar workers

 51.5%

 50.5%

 50.5%

Germany

 51.5%

 50.7%

 50.6%

Rest of Europe

 54.1%

 49.1%

 48.5%

North America

 47.9%

 50.9%

 50.5%

Employees on temporary contracts

634

865

866

Germany

541

706

701

Rest of Europe

88

154

154

North America

5

5

11

Apprentices

324

293

306

Germany

317

280

279

Rest of Europe

0

0

0

North America

7

13

27

Temporary agency staff

180

395

514

Germany

180

395

513

Rest of Europe

0

 

1

North America

0

0

0

Blue-collar and white-collar employee groups measured as a proportion of the active workforce (employees with permanent or fixed-term contracts, temporary part-time employees on parental leave, excluding students, interns, trainees/apprentices, short-term holiday workers, temporary workers and employees from external companies)

Social working standards apply for all

As an employer, MTU shows responsibility toward its employees by creating long-term, secure employment based on principles of corporate social responsibility. These social and labor standards are defined in a Group-wide Code of Conduct and incorporate:

→ MTU Code of Conduct

Reporting procedures for suspected breaches of this Code of Conduct, statutory requirements, plus our internal company guidelines and our principle of zero tolerance are described in detail in the chapters → Compliance and → Human rights. The chapter Human rights also details the anti-discrimination measures we take. As a signatory to the UN Global Compact, we are committed to observing its principles of respect for human rights and equal treatment in the workplace, and we also undertake to implement fair working conditions in accordance with the International Labour Organization’s (ILO’s) core labor standards.

MTU respects employees’ rights and safeguards their freedom of association through the Code of Conduct. When drafting employment contracts, we observe national statutory requirements as well as internal company agreements and notice periods as laid down by law. It is the duty of managers to ensure that company agreements are properly observed on a day-to-day basis in their areas of responsibility. In 2020, 89% of the people employed by the company were covered by collective agreements (e.g. collective bargaining agreements), a figure that stood at 78.1% worldwide in the same year. (Each figure relates to the active workforce.)

  

Leadership values: Leading in times of change

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Since 2018, the MTU leadership values (“We transform, we empower, we create trust”) have stood as a shared basis for managers’ values and conduct. The values are intended to provide orientation and formulate expectations for leadership behavior. In times of change, the leadership values have taken on a special relevance—especially the value “We create trust.” In a crisis such as the current pandemic, which features an increasing number of employees using mobile working to comply with hygiene measures, there is a need for an increased level of trust between managers and employees. We are constantly providing our managers with orientation and inspiration for this task. These offers are detailed under Employee development.

  

We believe in commitment and feedback

The relationships we form with our employees are based on respect and trust and we take their concerns into account: in accordance with the German Works Constitution Act (Betriebsverfassungsgesetz), MTU’s sites in Germany have works councils that maintain regular, open and trust-based dialogue with management. The German sites also have a Group works council that handles Group-related issues. At the company’s sites in Poland and Canada, elected employee representatives support the interests of the workforce in dealings with management. In addition, the interests of employees are represented on the Supervisory Board, where seats are filled on the basis of parity.

We carry out an employee survey at regular intervals at all of our larger locations to provide important impetus for the company’s ongoing development. Given the dynamic and sometimes profound changes that began in 2020, we introduced a new survey format to obtain feedback on the current situation more quickly. We used these PulseChecks twice in the reporting year to survey the mood of the workforce on topics such as commitment, information, leadership, team, perspective and mobile working. The results indicate that participants are confident about MTU’s future and that the company is responding appropriately and adequately to current requirements from the employees’ point of view. Suggestions are taken up and implemented at Group and team level. We will continue the PulseChecks in 2021.

Moreover, we have established further employee involvement forums at our sites around the world. These range from works meetings in Germany and townhall meetings in the United States to special instruments such as leadership feedback and team barometers. We use an idea management system to obtain and evaluate improvement suggestions from employees. Another way for employees to contribute is by submitting ideas for smart solutions as part of our regular Ideation Challenges. We take particularly promising suggestions and test their potential and feasibility in projects in our Inno Lab.

 

Attractive employer awards

In comparative analyses with other companies, MTU received several employer awards again in 2020.

Certifications and rankings in 2020

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  • TOP Employer Germany
  • Germany’s most attractive employers (Universum)
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  • TOP Employer Poland
graphic
  • TOP Employer British Columbia (Canada)
  • Canada’s Top Employers for Young People
  • Canada’s Best Employer for Recent Graduates
graphic
  • Women’s Career Index
  • Top Company and Open Company on Kununu
  • TOP Training and apprenticeships 2020

→ More about MTU’s awards

Staff turnover and retention

4.2 %
staff turnover
graphic

Our turnover rate remains at a low level. It is important for our long-term business to retain experts and their valuable knowledge within the company. After all, our specialists and managers are key to MTU’s success.

Although the crisis obligated us to make personnel adjustments, in 2020 our turnover rate remained low. In the reporting year, this was 4.2% for the MTU Group (previous year: 3.4%), which shows that we carefully consider the measures we take and that we aim to make them as acceptable to all sides as possible. Moreover, we achieve a high degree of loyalty to our company with an average length of service of around 14 years (Germany).

Staff turnover GRI 401-1

 

2020

2019

2018

No. of employees that left the company

385

289

313

Germany

204

192

228

Rest of Europe

104

37

39

North America

77

60

46

Turnover rate (%)

4.2

3.4

4.0

Germany

2.7

2.7

3.5

Rest of Europe

12.1

4.6

5.9

North America

11.2

8.9

7.6

Turnover rate measured as a proportion of core workforce, annual average, figures include retirements; no data is available on new hires and turnover by age group. We report on new hires in the chapter on Diversity & inclusion

 

Honoring employee achievements

For us, fair wages are part of an appreciative and respectful approach. The right to appropriate remuneration is one of the pillars of MTU’s Code of Conduct. A standardized, transparent compensation structure ensures that employees receive competitive remuneration that reflects their performance, regardless of gender or other characteristics against which discrimination occurs. The remuneration of pay-scale employees in Germany is based on collective bargaining agreements. Compensation for senior managers is tied to the company’s long-term performance. We reexamine our remuneration structures regularly.

MTU applies a consistent methodology for evaluating performance at all levels of the hierarchy, from senior managers to employees included in collective bargaining agreements. The performance criteria are based on corporate, center or departmental objectives and are designed to measure how employees and managers contribute to reaching these objectives. Goal attainment is discussed during the year (milestone meeting) and at year-end (goal attainment meeting). All managers undergo performance reviews to evaluate achievement of their personal targets, and in 2020, 96% of all MTU employees worldwide received a regular appraisal of their performance (at least once a year).

We offer a broad range of additional perquisites. In addition to the statutory obligations, in Germany these include accident insurance, profit-sharing, family-related services, mobility benefits, a healthcare service and training opportunities. The company has a pension scheme for all its employees, who can opt to top up the share contributed by the company themselves on a voluntary basis. This gives them the flexibility to manage their own pension funds as they see fit. At our international locations we offer a range of benefits such as private life insurance, health insurance and retirement planning support.

143
million euros
graphic

In addition to their salary, we offer our employees a wide range of social benefits such as a company pension scheme; in 2020, we invested EUR 143 million in such benefits.

MTU enables its employees to share in the company’s success. Each site does this using different regulations and programs. We also offer an annual employee stock option program in Germany, in 2020 as well (participation rate: 41.5%). Some of our international locations offer their own long-term bonus schemes, as in Rzeszów (Poland), or award annual bonuses, as is the case in Vancouver (Canada).

Solidarity in the crisis

In spring 2020, the coronavirus pandemic reached Europe and MTU was forced to respond. Following a suspension of operations in April, during which most of our activities were suspended throughout Europe, we resumed with short-time working arrangements at our German sites. Because short-time working can lead to cases of particular hardship among colleagues, MTU has set up a solidarity relief fund worth EUR 4 million. The Executive Board and well over 90% of senior management have waived a significant slice of their variable remuneration for the record year of 2019. This solidarity fund enables us to help ensure that we all share the burden.

 

New Work – Flexible and digital working

We recognize the specific needs and various life phases of our employees and respond to these by providing various offers and opportunities for flexible working through a range of part-time models and mobile working arrangements. This way, we help achieve a better work-life balance. Part-time work increased again slightly in the reporting year to 7.6% of employment (data collected only in Germany, 2019: 7.4%). The number of employees on parental leave in Germany in 2020 also rose again to a total of 416 (2019: 395).

Alternative working arrangements (Germany) GRI 102-8, 401-3

 

2020

2019

2018

Part-time employees (in %)

7.6

7.4

6.8

Employees on parental leave, total

416

395

324

Employees on parental leave, female

156

143

127

Employees on parental leave, male

260

252

197

The right to parental leave in Germany is governed by the German Parental Allowances and Parental Leave Act, which applies to the entire workforce. The legislation stipulates that any employee has a right to time off—regardless of their gender. Given discrepancies between national legal considerations, we do not consider it useful to consolidate these figures at the Group level.

To put collaborative work at MTU on a more sustainable footing, we’re increasing our use of digital working models. To this end, we switched to a social intranet in 2020. With its digital communication channels, the new MTUnet promotes the exchange of knowledge throughout the company, links employees from different areas and at different locations with each other, and offers greater participation in the company’s day-to-day business.

45%
mobile working
graphic

In 2020, we quickly equipped around 45% of our employees for mobile working. While this increase in flexibility was initially intended to protect against infection, the plan is to retain it for the future.

In 2020, we converted our IT infrastructure to enable mobile working for employees whose tasks did not require them to be present on-site. Within a short period of time, some 45% of the workforce was working mobile. We offer additional days off (known as the collectively agreed “T-Zug”) to parents with children up to the age of 12 or employees with dependents in need of care.

Our initiatives include

Outlook

As part of our HR strategy, we are currently working to provide managers at all levels with even more guidance by developing clear guidelines for what form collaboration should take in the future. The focus is also on the digitalization of collaboration between employees, managers and human resources.


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