Welcome to LANXESS Annual Report 2012!

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Development opportunities and diversity for international markets

Our global alignment is a key strategic advantage. LANXESS currently employs people from 69 countries across the world. Our successful focus on the BRICS countries is a deliberate strategy to increase proximity to local customers and markets. However, training, the transfer of know-how and international experience are not one-way streets, which is why LANXESS is increasingly sending employees from the BRICS countries to its sites in Western Europe and North America.

In 2012, we reviewed the LANXESS International Assignment Policy for its currentness and market conformity. To this end, we conducted four benchmarks with more than 470 companies in various industries.

One result is that we intend to give greater consideration to family circumstances in the future – not only with respect to dual career situations but also to family issues in general. LANXESS is one of the few companies to provide a dual career allowance to compensate some of the loss of income caused when a partner gives up work to accompany one of our employees on an international assignment. In addition, we support the accompanying partner’s professional development.

In 2012, we also started to link expatriate management more closely with career management, making international assignments a key component of our systematic personnel development and encouraging talent mobility. Therefore, all expatriate positions at LANXESS have been advertised globally since mid-2012. This gives all our employees the same opportunity to apply for an international assignment and embark on an international career.

Making expatriate management one of the central components of systematic personnel development also means enabling employees with limited international mobility to work abroad. In 2012, therefore, we enhanced the framework conditions for short-term assignments. To this end, our revised International Assignment Policy now includes an attractive mix of fringe benefits and special training for both long-term and short-term assignments. In this way, we are making it easier for new and experienced managers as well as skilled non-managerial employees to acquire international work experience.

Against this backdrop, the number of employees on international assignment rose again significantly in 2012. On average, 260 employees – around 7 percent of our managers and experts – worked as expatriates outside their home countries, mainly in Singapore, China, the United States and Brazil.

In addition to achieving a global transfer of knowledge by sending experts and managers abroad, our goal is still to develop local management with the necessary expertise and international competencies in each country and to transfer challenging tasks to suitable local employees. Outside Germany, 78 percent of our management functions are currently filled by local employees.

LANXESS Employee Structure by Age Group, Gender and Region
                     
  EMEA (excluding Germany) Germany North America Latin America Asia-Pacific
                     
Age group Female Male Female Male Female Male Female Male Female Male
                     
< 20   2 1         3   1
20 – 29 92 304 142 447 26 122 87 257 149 463
30 – 39 183 793 260 1,172 64 192 128 384 265 873
40 – 49 134 939 558 2,498 100 302 47 360 107 423
50 – 59 93 820 405 2,380 144 465 32 294 19 169
≥ 60 10 72 22 187 35 103 2 32 4 11
Total 512 2,930 1,388 6,684 369 1,184 296 1,330 544 1,940
 
LANXESS Employee Structure by Functional Area and Region
                     
  EMEA (excluding Germany) Germany North America Latin America Asia-Pacific
                     
Functional area Female Male Female Male Female Male Female Male Female Male
                     
Marketing 109 136 405 564 79 94 77 103 166 339
Production 255 2,616 458 5,228 156 948 131 1,112 141 1,290
Research and Development 13 59 109 408 29 75 6 15 19 110
Administration 135 119 416 484 105 67 82 100 218 201
Total 512 2,930 1,388 6,684 369 1,184 296 1,330 544 1,940
 
LANXESS Employee Structure by Segment, Gender and Region
                     
  EMEA (excluding Germany) Germany North America Latin America Asia-Pacific
                     
Segment Female Male Female Male Female Male Female Male Female Male
                     
Performance Polymers 154 1,740 203 1,195 128 763 61 535 119 450
Advanced Intermediates 13 13 190 2,204 14 12 5 3 29 358
Performance Chemicals 272 1,104 454 1,907 94 323 134 691 186 866
Reconciliation1) 73 73 541 1,378 133 86 96 101 210 266
Total 512 2,930 1,388 6,684 369 1,184 296 1,330 544 1,940
1) Includes group functions and LANXESS Distribution

The global Diversity & Inclusion initiative

In order to achieve structured development of diversity at LANXESS and utilize its positive effects for our company and its employees, we established the Diversity & Inclusion (D&I) initiative in 2011, under the patronage of Board of Management member and Labor Director Rainier van Roessel. This initiative reflects the great importance of a diverse workforce for our competitiveness on global markets, for increasing our innovative strength and performance capabilities and for attracting and retaining promising talents.

In the first project phase, completed during the reporting year, we established the framework of our ongoing commitment to diversity and inclusion on the basis of in-depth data analyses, best-practice case studies and employee interviews around the world.

To avoid getting lost in the many different dimensions of diversity (e.g. age, gender, nationality, ethnicity, disability, social origin, experience), we decided at an early stage to focus first on the dimensions of age, gender and nationality. The criteria for this decision included the expected leverage effect for a diverse corporate culture at LANXESS and the importance of different dimensions in key country organizations and target markets. For the pilot areas involved – the Inorganic Pigments and Technical Rubber Products business units and the Accounting group function – and the participating countries of Brazil, China, Germany, France, India and the United States, the first project phase highlighted different priorities and areas for action. However, this was to be expected considering the great significance of regional and organizational influences for diversity in a company.

Photo: Diversity & Inclusion
Age, gender and nationality are currently the main dimensions of our Board of Management's Diversity & Inclusion initiative, which takes a structured approach to developing diversity at LANXESS.

Despite these differences, our commitment to increasing diversity worldwide has a common basis – equal opportunity. Wherever equal opportunity exists, recruitment and development will be based on performance, experience and personality, and not on membership of a particular group. To guarantee this in all cases, a company must influence the attitudes of its employees and managers toward the different nationalities, age structures, genders etc. they encounter in their daily work. Diversity starts in the head of every individual.

With this in mind, the path to greater diversity at LANXESS requires a cultural change process above all else. We must also create the structural framework (e.g. organization, processes, guidelines) so that diversity generates added value for our employees and the company. As part of the Diversity & Inclusion project, we developed and started implementing more than 30 measures with this aim during the reporting year. Based on the findings of the first project phase, some of these measures apply Group-wide while others are limited to certain corporate entities or countries.

One such measure is the Senior Trainee Program, unique in Germany, that we launched as a Diversity & Inclusion lighthouse project during the reporting year. This program lasts 18 months and offers a qualified full-time position to employees with an academic background who wish to return to working life after a period of time spent raising a family. Alongside their actual work, the participants receive personal support from a mentor, individual coaching and tailor-made training. On November 5, 2012, 14 Senior Trainees began their second career in eleven different business sectors. Since then, they have been gaining experience in their future areas of responsibility, in line with their academic training. By better recognizing the professional and life experience of these men and women and actively utilizing their potential, we are taking a particularly innovative approach to combining our general commitment to greater diversity with the requirements of active demographic management.

Other projects aim to identify the potential for flexibilization associated with part-time and home-office working for middle and upper management, or to encourage women at LANXESS to share their experience across organizational and hierarchical boundaries.

The initiative is thus making a key contribution to reaching the goal we have set ourselves of raising the proportion of women in middle and upper management to 20 percent by 2020. The figure currently stands at just under 15 percent.

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