Workforce

Number of employees remains stable. At December 31, 2013, the Daimler Group employed a total of 274,616 men and women. As expected, the workforce remained as large as it had been at the end of 2012. Whereas the number of employees rose in Germany to 167,447 (2012: 166,363), it declined to 20,993 in the United States (2012: 21,720). At the end of 2013, Daimler had 14,091 employees in Brazil (2012: 14,610) and 11,275 in Japan (2012: 11,286). (See graphic C.43) Our consolidated subsidiaries in China had a total headcount of 1,966 at the end of the year (2012: 2,730). Workforce numbers dropped in China as a result of integrating the car sales organizations into a non-consolidated joint venture company. In addition, 2,274 South African sales employees who were previously assigned to Mercedes-Benz Cars are now listed within the sales organization. At the end of the reporting year, Daimler AG employed a total of 150,605 men and women (2012: 149,644).

C.43 Employees by region

Workforce numbers increased in 2013 at Daimler Financial Services. They also rose at our vehicle sales organization because of the aforementioned structural effect. Whereas the number of employees at Mercedes-Benz Vans remained largely unchanged compared with the end of 2012, it decreased at Mercedes-Benz Cars, Daimler Trucks and Daimler Buses. (See table C.44)

C.44

Employees by divisions
  2013 2012 13/12
Employees (December 31)     % change
       
Daimler Group 274,616 275,087 -0
Mercedes-Benz Cars 96,895 98,020 -1
Daimler Trucks 79,020 80,519 -2
Mercedes-Benz Vans 14,838 14,916 -1
Daimler Buses 16,603 16,901 -2
Sales & Marketing Organization 52,455 50,683 +3
Daimler Financial Services 8,107 7,779 +4
Other 6,698 6,269 +7

We have combined in-house services worldwide in shared service centers in order to further improve the quality and efficiency of our administrative functions and various services. These shared services include financial processes, IT and development tasks, sales functions and certain location-specific services. The shared service centers are not consolidated because they do not affect our profitability, cash flow or financial position. The centers employed approximately 4,700 men and women at the end of 2013.

The employees of our Chinese joint ventures are also not included in the Group’s total workforce; They employed approximately 17,600 people at December 31, 2013.

High level of profit sharing. For the successful financial year of 2012, Daimler’s management and General Works Council agreed once again to pay a performance participation bonus to our employees paid according to collective bargaining wage tariffs. At the end of April 2013, all of the eligible employees at Daimler AG were paid an amount of €3,200. This is a visible expression of how we honor our employees for their efforts and commitment.

The eligible employees of Daimler AG in Germany will also receive a fair and appropriate performance participation bonus for financial year 2013. The amount has been determined on the basis of a new, transparent system that was agreed upon by the management and the General Works Council. The resulting amount is €2,541. The management has also decided to pay a one-time special bonus of €500. This special bonus is an expression of gratitude to the employees for their special commitment last year. The full participation in the company’s success of €3,041 will be paid out in April 2014.

Slight increase in average age of our employees. In 2013, our global workforce had an average age of 42.3 years (2012: 41.9). Our employees in Germany were 43.5 years old on average (2012: 43.1). Employees who are 50 years old or older currently make up about 34% of our permanent workforce at Daimler AG. On the basis of current assumptions, this proportion will rise to about 50% over the next ten years. Changes in the collective bargaining agreement and the legal framework, such as retirement at age 67, are intensifying this demographic trend.

As part of our diversity management activities, we are addressing the challenges resulting from the aging of our workforce. This means that we have to create ways for older employees to get more involved in our work processes, and also that we must recruit younger people in a targeted manner.

In May 2013, Daimler introduced a new human resources concept that takes advantage of the experience of the company’s retired employees. These “senior experts” can voluntarily return to the company for a temporary period if the departments need their services. The program promotes cooperation among people of different ages in order to benefit from their specific strengths. In this way, the concept combines the young employees’ innovative strength with the retirees’ wealth of experience. The experience we have gained with the senior experts so far confirms that the program’s aims are being achieved.

Number of years at Daimler. In 2013, our employees had worked for the Daimler Group for an average of 16.2 years. This figure was slightly above the previous year’s level (2012: 15.8 years). In Germany, employees had worked for the Group for an average of 19.2 years at the end of 2013 (2012: 18.8 years). The comparative figure for Daimler AG was 19.5 years (2012: 19.1 years). Daimler employees outside Germany had worked for the Group for an average of 11.3 years (2012: 11.0 years).

Diversity management activities. Diversity management is a strategic success factor for the company’s future viability. Because mixed teams are better than homogeneous ones at solving complex tasks, Daimler’s diversity management activities primarily focus on making managers more aware of this issue. We also use mentoring programs, communication activities, conferences, workshops and e-learning tools for this purpose. This continuous focus on diversity management enables our corporate culture to steadily evolve.

Increased proportion of women employees. Our instruments for supporting the targeted promotion of women include flexible working-time models, childcare facilities close to the workplace and special mentoring programs. Daimler has committed itself to increasing the proportion of women in senior management positions throughout the Group to 20% by 2020. The share of women in such positions has risen continually over the last few years to reach 12.7% at the end of 2013 (2012: 11.9%). Because we are a technologically oriented company, the targets take into account sector-specific conditions and women’s current share of our workforce. At the Daimler Group, women accounted for 16.3% of the total workforce worldwide (2012: 16.2%). At Daimler AG, women accounted for 14.6% of the employees at the end of the year under review (2012: 14.4%).

Employee qualification. We provide our staff with training and continuing education opportunities throughout their entire careers. Our range of qualification measures includes practical training courses, seminars, workshops, specialist conferences and instruction through digital media. In Germany alone, we spent €107 million on the training and qualification of our employees in the year under review (2012: €112 million). On average, every employee spent 4.1 days in qualification courses in 2013 (2012: 4.0 days).

Securing young talent. Daimler takes a holistic approach to securing young talent. For example, our Genius initiative enables children and teenagers to gain valuable information about technologies of the future and professions in the automotive industry. High school graduates can apply to participate in a technical or commercial apprenticeship at one of our locations or to study at the Cooperative State University in Baden-Württemberg. After completing their college degrees, they can directly join our company or launch their careers at Daimler by taking part in our global CAReer training program.

In 2013, CAReer once again enabled approximately 300 college graduates from around the world to begin a career at Daimler. The program focuses on young people who have graduated in technical and commercial fields with above-average grades and applicants with practical experience. Women currently account for around one third of CAReer participants; our trainees and alumni come from approximately 30 different nations.

We are also making our training activities more international so that we can establish high training standards in growth regions and recruit highly qualified skilled employees. In 2013, we developed the Mercedes-Benz Qualification System (MBQS) for our international car locations. The system describes the general conditions for efficient training programs outside Germany that provide participants with the required qualifications, including programs for training master craftspeople. We are also incorporating some elements of the German work-study system in various projects outside Germany.

We had 8,630 apprentices and trainees worldwide at the end of 2013 (2012: 8,267). A total of 2,014 young people began their vocational training at Daimler in Germany during the year under review (2012: 2,109). The number of people we train and subsequently hire is based solely on the Group’s needs and its future development. In 2013, 89% of Daimler trainees were hired after completing their apprenticeships (2012: 91%).

High standards for awarding contracts for work and services. Contracts for work and services are important instruments to enable companies to remain flexible and competitive in their business operations. Through such contracts, Daimler procures services that can be provided better and more efficiently by the specialists of the respective supplier than by the Group itself. They include for example facility management services and the operation of plant canteens as well as specialized logistics and highly complex services in areas such as development, IT and consulting.

Contracts for work and services regulate the provision of a precisely defined service in return for a fixed payment. In order to secure transparent and fair conditions for all parties in the execution of such contracts, Daimler decided on new standards for the award and execution of contracts for work and services on Daimler premises in autumn 2013. These standards apply in particular to working conditions and the wages of the employees deployed by contracted companies, and go significantly further than the conditions required by applicable law.

To ensure that the new social principles are effective also on a sustained basis, Daimler will systematically monitor for adherence to them. Daimler therefore checks not only during an invitation to tender whether the participating companies fulfill the standards, but also regularly while the services are provided.