HERAEUS INTRODUCTION, HR TRANSFORMATION AT HERAEUS HR ROUNDTABLE, 17TH APRIL 2017 Deniz Guengoer | HR International Region Greater China HERAEUS – A GLOBALLY ACTIVE COMPANY › One of the biggest family owned companies in Germany › More than 100 sites in 38 countries Germany The shareholder’s group contains › 12% 38% approx. 240 persons America Europe Asia › Total revenues of excluding Deutschland €12,9 billion in 2015 26% 17% 42% 32% 18% 13% › More than 12,500 employees Africa/Australia 2% 1% 2 04/17/2017 Deniz Guengoer | HR International Greater China WHERE IT ALL STARTED In 1851 Chemist Wilhelm Carl Heraeus takes over his father's pharmacy. Five years later he melts two kilograms of platinum in oxyhydrogen gas flames for the first time, rendering the precious metal fit for industrial processing. This builds the nucleus for nowadays’ global industrial usage of precious metals. 1660 1851 2020 2051 Foundation of Formation of 2017 Vision 2020 200 years anniversary Heraeus Pharmacy Heraeus Company of Heraeus Company 3 04/17/2017 Deniz Guengoer | HR International Greater China AREAS OF EXPERTISE Electronics Materials for touchscreens and displays, Power electronics components, contact materials, Quartzglass Mobility Electronics Sensors for automobiles, bonding and contact materials for power electronics, Mobility infrared emitters for curing paint Environment Environment Catalysts, precious metal recycling, Industrial Applications components for photovoltaic industry Health Industrial Applications Sensors, coatings, precious metal colors, bonding wires Health Bone cements and biomaterials, surgical medical components and body implants, precious metals for pharmaceutical industry 4 04/17/2017 Deniz Guengoer | HR International Greater China COMPANY STRUCTURE Global Business Units (GBU) Group Functions Heraeus Precious Metals – HPM Communications & Marketing M & A Heraeus Electronics – HET Human Resources Environment, Health & Safety Heraeus Photovoltaics – HPT IT & Digital Agenda Global Procurement Heraeus Medical Components – HMC Legal & Responsibility Management Operations Excellence Heraeus Medical – HME Accounting Heraeus Site Operations Heraeus Electro-Nite – HEN Controlling Regional Center Heraeus Quarzglas – HQS East Asia (Singapore) Treasury Regional Center (USA) Heraeus Noblelight – HNG Heraeus Emerging Businesses – HEB Tax, Customs & Export Control Regional HQ China Incubator New Businesses – INB Auditing 5 04/17/2017 Deniz Guengoer | HR International Greater China INNOVATION AT HERAEUS 6 04/17/2017 Deniz Guengoer | HR International Greater China HR TRANSFORMATION AT HERAEUS 7 04/17/2017 Deniz Guengoer | HR International Greater China HERAEUS VISION 2020 IS THE GUIDING FRAMEWORK FOR HR VISION 2018 AND TRANSFORMING HUMAN RESOURCES Heraeus Vision 2020 Heraeus Excellence Heraeus Vision 2020 is HR Vision 2018 HR Transformation is an guiding framework for integral part of overall HR Vision, Strategy and HR Strategy Heraeus Excellence Transformation HR Transformation 2014 - 2018 People & Organizational Excellence ° Aims at making HR at Heraeus world class ° Is not a temporary measure ° Requires a robust, productive culture of excellence and continuous improvement 8 04/17/2017 Deniz Guengoer | HR International Greater China HR FOCUS TOPICS 2017-2018 5 pillars will be the crucial key topics for our future success and will help us navigate towards our goal to accomplish vision 2018: 01 Talent Management User Experience 04 02 HR in the Regions Organizational Excellence 05 03 Learning 9 04/17/2017 Deniz Guengoer | HR International Greater China HR TRANSFORMATION GREATER CHINA 10 04/17/2017 Deniz Guengoer | HR International Greater China FIRST STEPS General information › Initiation of Corporate Representative Greater China in Summer 2016 › Among other activities for the HR transformation in China the HR Activity survey was rolled-out in 2016 › Deeper understanding of HR organizations at the sites › Confidential activity analysis for all HR staff in the region China › Based on a common analytical tool from an external provider › ~153 HR activities across 13 function areas – in total 32 surveys › For each activity, everyone estimates the percentage of time to be spent during 1 year › After first consolidation, discussion of results with all HR business partner teams › Results analyzed and internally benchmarked 11 04/17/2017 Deniz Guengoer | HR International Greater China CURRENT STATUS OVERVIEW HR ACTIVITY SURVEY General findings › HR teams with various efficiencies › Potential increase efficiency on HR department management › No formal process documentation for knowledge transfer & management › Further smart standardization to e.g. enhance talent development & cross-moves between sites › Large volume of hiring › Ensure standardized hiring approach, e.g. interview & headhunter processes › Each local site has individual training programs for similar topics (e.g. sales training) › Consolidate training activities within site cluster (e.g. Shanghai) to ensure synergies › Manual payroll & time tracking processes › Payroll project started in 2016 › Consolidation of benefits processes › adaptions within framework might be possible › Time spent in Non HR hours – 8520 hours annually › Further analyze non HR activities 12 04/17/2017 Deniz Guengoer | HR International Greater China NEXT STEPS HR TRANSFORMATION General overview › 2nd step of HR Transformation in the Region kicked-off in Q1 2017 › Built teams focusing on the following HR main function areas › Compensation, Benefits & HRIS › Payroll & Time attendance › Policies & Guidelines › Recruiting & Staffing › People, organizational development, training & Employer Branding › Focusing on detailed analysis of all processes › Started documentation processes › Initiated steering committee › Working groups actively supported by HR transformation project lead 13 04/17/2017 Deniz Guengoer | HR International Greater China BENCHMARKING AND LEARNING 14 04/17/2017 Deniz Guengoer | HR International Greater China THANK YOU FOR YOUR INTEREST! 15 04/17/2017 Deniz Guengoer | HR International Greater China .