People – Clariant’s second brand value – represents value creation that stems from human and relationship capital. Human capital encompasses all employee-related value creation processes, from talent attraction and development to employee engagement and occupational health, safety, and well-being programs. Achievements regarding value created for customers, policy-makers, suppliers, and society at large are reported in the relationship capital chapter.

In 2018, the number of full time equivalents declined by 1.3% to 17 901. Through targeted employer branding activities and training programs, Clariant continued to secure the skills and capabilities it needs to remain a high-performing organization over the long run. Its efforts to create an inspiring and motivating work environment for a diverse workforce resulted in very positive feedback from employees, as captured by the company-wide engagement survey. The continuous focus on ensuring the health, safety, and well-being of its employees is reflected in the lowest Lost Time Accident Rate since the beginning of the monitoring.

Compared to 2017, the distribution of the workforce between regions remained almost unchanged, with slight increases in Asia-Pacific (+0.8 percentage points) and Europe (+0.2 percentage points) and decreases of the same magnitude in North America (–0.3 percentage points), Latin America (–0.5 percentage points), and Middle East & Africa (–0.2 percentage points).

The age and gender structure of Clariant employees also remained constant. In 2018, 14% of employees were younger than 30 years, 60% were 30 – 50 years old, and 26% were older than 50 years. The total workforce consisted of 78% men and 22% women.

001 FTE BY REGION

¹ Middle East & Africa

002 AGE DIVERSITY

1.1. Talent attraction and development

For Clariant and its stakeholders, talent attraction and development is a central factor for future business success, as shown by the comprehensive materiality assessment conducted in 2017. Clariant follows an integrated approach to talent management, aligning all related processes through its MySuccess platform. This fully integrated tool covers all people processes from recruitment and onboarding to learning, talent, and performance management. In 2018, Clariant implemented a broad range of projects along the entire employee journey to realize the full potential of its workforce.

Clariant aims to attract people who fit with its values and meet the defined role requirements. In 2018, Clariant hired 2 142 new employees (689 women and 1 453 men) to support its profitable growth strategy. With 35.1% of new hires, Europe accounted for the largest share of new employees, followed by the Asia-Pacific region, which accounted for 23.5% of new hires.

Clariant’s performance management process ensures that strategic business objectives are translated into the employee’s day-to-day activities. In 2018, 10 350 employees followed a standardized performance management process.

Overall, 15 791 employees participated in a training recorded in the central learning management system, for a total of 234 240 training hours. The sharp increase of training participants compared to 2017 is due to the global data privacy training conducted in 2018 and the increased usage of e-learning by the Business Units. The average hours per employee that engaged in training decreased by 25% to 15 hours per employee.

More than 1 500 talents were discussed in 60 talent reviews across the organization and concrete development steps and career measures were defined and will be implemented in 2019. The reward for Clariant’s systematic talent management activities is a very high talent retention rate of 95% in 2018, which is only 3 percentage points lower than in 2017. Clariant promoted internal candidates into 84% of senior management positions, and filled 77% of openings overall with the internal population.

1.1.1. Employer branding and recruiting

In 2018, a core focus of Clariant’s employer branding and recruiting activities was to recruit highly skilled people that can support Clariant on its way into the digital future. It rolled out a targeted digital campaign via the Asian social network WeChat, developing specific brand content to attract digitally skilled candidates in China. The follower base of Clariant’s profile grew consistently over 2018 and the first results of the campaign will be measured in 2019. Clariant also hired a Digital and IT Talent Acquisition Specialist, whose primary mission is to support the company in the business-critical hunt for digital talents. This focus underscores Clariant’s commitment to exploit the full potential of digitalization as a growth lever. Read more

Another important development was the launch of a digital interviewing platform, making it easier for candidates from around the world to apply to open positions. They can record and upload their video interview anytime and from anywhere, saving time and travel expenses. For Clariant, the new process facilitates an improved assessment of body language and communication skills, while increasing flexibility and saving costs.

In order to set up the Leading Marketing Organization, 320 marketing and sales positions were filled in 2018. Read more Clariant supported recruiting with a targeted digital campaign running on social media and its own corporate channels. The campaign further positioned Clariant as a preferred employer and enabled the creation of new talent pools, which were a valuable source in filling open marketing positions across regions.

1.1.2. Strengthening commercial competencies

Adding to the broad range of in-person trainings and e-learning modules that are accessible via the MySuccess platform, Clariant developed several new learning programs in 2018 to strengthen commercial competencies within the organization. As part of the implementation of the Leading Marketing Organization, an advanced marketing e-learning module was developed that will be launched in 2019. This was complemented by the rollout of »Manage for Growth«, a three-day program targeted at senior sales managers and that aims to strengthen their competencies for driving growth within their teams. In 2018, several sessions were conducted in Europe, Latin America, and North America.

1.1.3. Key position placement and succession planning

Clariant maintains a resilient talent pipeline and has a robust succession planning system in order to fill key roles according to a transparent set of criteria. In 2018, Clariant conducted 60 talent review sessions across all countries, regions, and global units and discussed more than 1 500 talents. As part of these reviews, individual development measures and career steps were defined. The results are translated into the global succession plans.

Clariant’s assessment center and capability development program provide aspiring leaders with clarity on competence requirements for various job levels and offer an assessment to identify development opportunities at organizational and individual levels. Every year, around 50 employees participate in this development program. In 2018, around 80 employees from innovation functions, Global Business Services, and procurement attended a competency assessment.

With Innovation and Research & Development as the first pillar of its Group strategy, Clariant launched the Innovation Talent Management Review (ITMR) initiative, which ensures succession for core roles within innovation job families. As part of the implementation of ITMR, career paths in the innovation field were defined, candidates were identified, and a learning curriculum focusing on innovation-specific topics was developed.

1.1.4. Training and development programs

To support key position placement and succession planning, Clariant offers a range of formal and informal programs for younger high-potential employees. The Pioneer Program enhances organizational understanding as well as leadership and communication skills of aspiring leaders by exposing them to short-term assignments outside of their area of responsibility. In 2018, the second group of participants completed the program. One key achievement of all participants was the successful launch of a business project, which will be executed in 2019.

In the Mentoring Program, younger professionals get the opportunity to team up with experienced leaders to strengthen leadership skills and to encourage knowledge transfer across functions and age-groups. In 2018, more than 40 new mentees started their internal mentorship program.

These informal development initiatives are complemented by formal learning programs delivered by business schools, specialized training companies, and Clariant’s internal experts. These efforts contribute to the continuous development of Clariant’s leadership population.

Clariant also offers various leadership trainings. These include, for example, the »License to Hire« trainings, which provide a toolkit for efficient recruiting and support line managers in making the right hiring decisions. The program is offered to all hiring managers. In 2018, more than 200 employees involved in the recruitment process participated in one of the ten »License to Hire« trainings offered. After the training, participants receive online materials that summarize the main learnings and best practices. Clariant plans to make the training mandatory for all hiring managers across all levels in 2019.

Launched in 2017, the »Frontline Leadership Training« – designed for Production Managers and Shift Leaders – covers basic leadership instruments that enable managers to effectively lead and motivate teams and manage change. The interactive training is facilitated by a dedicated Learning Manager and repeatedly receives outstanding reviews from participants. In 2018, the learning content was refined to better fit the needs of the target group. More practical exercises, for example on how to provide effective feedback, were included in order to allow participants to apply learnings in practice. Over the course of the year, 105 shift leaders participated in this training across all regions.

With the »Authentic Leadership Training«, Clariant offers a new intensive course that focuses on pivotal communication skills necessary to be perceived as a successful and inspiring leader. The participants either attend the Executive Performance Training, which is designed for cross-functional groups of six people, or the Inspirational Leadership Creative Communication Program, which is open to larger groups. In 2018, 31 senior leaders participated in the two-month training.

In addition, Clariant continued the implementation of the team effectiveness program across leadership teams in various locations and management levels. As part of the program, teams apply measures to enhance trust within the team, improve the quality of decision-making, and strengthen the execution of commitments. The program was specifically designed to help leaders build high-performing teams. More than 80% of Clariant’s global and regional leadership teams attended the program during the past two years.

1.2. Employee engagement

Clariant’s people are its most valuable asset to stay ahead of the curve in contested markets. By developing, improving, protecting, and delivering Clariant’s products and services, they are the core of Clariant’s sustainable value creation. Therefore, Clariant pays close attention to engaging with its employees on all levels, focusing on its core value of appreciation.

Clariant is driven by the belief that diverse perspectives enable the company to capture market opportunities faster and foster a corporate culture that is conducive to innovation and growth. Thus, cultivating an inclusive work environment that values differences in experience, culture, nationality, ethnicity, age, gender, sexual orientation, and physical ability is vital for Clariant’s business success. It also contributes to keeping the turnover rate at a stable level.

1.2.1. Engaging with a diverse workforce in times of change

In times of change, providing the support and resources that employees need to achieve their goals, and showing appreciation for their efforts, is particularly important. Following the updated corporate strategy and business portfolio upgrade announced in 2018, Clariant’s global workforce will adapt and encompass even more diversity. To facilitate the ongoing change process, Clariant’s Group Human Resources ensures that the company stays open to new ways of working, offers a global workplace based on common values, and creates a sense of purpose for all employees across regions and age clusters.

The development of a more global, diverse, and flexible workforce requires adherence to standards that uphold Clariant’s approach to equal treatment and diversity. Clariant thus adopted a new globally applicable Employment Policy in 2018. The policy, which is accessible to all employees and is part of the onboarding curriculum, describes what fair working conditions mean in daily practice, underlining the importance of employee collaboration. It clearly commits to equal development and promotion of all people across every organizational level and age group.

1.2.2. The »Pulse Survey« as a strategic instrument

In 2018, Clariant broke new ground in assessing employee engagement. By implementing the »Pulse Survey«, which is considered the starting point for using a company-wide survey as a strategic instrument to drive organizational development, more Clariant-specific, strategic, and timely issues were covered than with previous surveys. A representative and randomly selected sample group of almost 2 500 employees was surveyed on topics such as change, strategy, and vision. The survey results showed a positive perception of the work environment. With an engagement index of 85, Clariant ranked above the industry benchmark and achieved high scores on strategy endorsement, innovation culture, and collaboration within and across teams. In future years, customized Pulse Surveys will be carried out upon Business and Service Units’ requirements. A global survey will be conducted biennially.

1.2.3. Recognizing extra efforts and leveraging employee recommendations in recruitment

In 2018, Clariant further developed its »Recognition Program« to enhance employee engagement through appreciation. As part of the program, special recognition awards were further promoted. These monetary awards honor outstanding contributions and motivate employees to »go the extra mile«. Beyond financial rewards, Clariant also started the rollout of local appreciation awards that acknowledge great achievements of peers or supervisors in form of presents or vouchers.

In addition, Clariant further developed its referral program, which encourages employees to recruit new candidates. Employees are invited to refer people from their professional networks for advertised jobs and are granted a cash reward if their referred candidate is successfully hired. In 2018, the referral program was rolled out to Clariant’s Shared Services Center in Poland, focused on recruiting external candidates, and in India, where the objective was to refer internal candidates for open positions.

1.2.4. Streamlining global benefits

Furthermore, in 2018, Clariant conducted a global benefit survey to establish consistent benefit programs across the organization. Building on the results of the survey, the Global Benefits Policy was developed. The policy does not stipulate a one-size-fits-all benefit program, but acknowledges country-specific circumstances. It sets binding key elements regarding flexible work arrangements, healthcare, travel, well-being, retirement, accidents and death. These elements will be reflected within each local benefit program to foster consistency and create an attractive workplace for everyone.