Reebok 2011 Annual Report Download - page 107

adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
103
2011
02.7 Employees
Our global internship programme offers students three to six months
of work experience within the adidas Group. It plays a key role in our
recruiting strategy. At the end of 2011, we employed 330 interns in
Germany (2010: 331).
Succession management: The adidas Group succession management
approach aims to ensure business continuity. We achieve this through
a globally consistent succession plan which covers successors for
director level positions and above. These positions and the respective
successors are regularly discussed by senior management. The
succession management information shows a clear picture of the
successor readiness and development needs. Based upon this infor-
mation, we draft individual development plans to prepare the successor
for their potential next tasks. In addition, we use the successor infor-
mation to create dynamic talent pools which provide us with further
flexibility in our succession management process. All information is
consolidated in a succession management risk analysis.
The succession management process is supported by a system solution
which hosts position and employee data related to performance,
potential, career aspirations, mobility, etc. Our system solution is
applied in 91% of the adidas Group business units. The target for 2012
is to reach a full Group-wide online coverage.
Performance-driven remuneration system
We are committed to rewarding our employees with compensation
and benefit programmes that are competitive in the marketplace.
Remuneration throughout the Group comprises fixed and variable
monetary compensation, non-monetary rewards, as well as other
intangible benefits. The cornerstone of our rewards programme is our
Global Salary Management System which is used as a basis for estab-
lishing and evaluating the value of employees’ positions and salaries
in a market-driven and performance-oriented way. In addition to a
fixed base salary, we offer our employees various variable compen-
sation components.
Bonus programme: In order to allow our employees to participate in
the Group’s success, and to reward them for their target achievement,
we have implemented a Global Bonus Programme. This programme
combines individual performance (measured in the PEP process) and
corporate performance (actual financial results measured against
Group, brand, channel, division and/or business unit targets).
Profit participation programme: For employees at our Group
headquarters and our other locations in Germany who do not
participate in the bonus programme, we have introduced a profit
participation programme called the “Champions Bonus”.
Additional compensation components: For senior management and
Executive Board members, we offer Long-Term Incentive Programmes
(LTIP). Other benefits include our 401-K pension plans in the USA and
the adidas Group pension plan for our employees in Germany. In 2011,
2,220 employees participated in the latter, which represents about
51% of all eligible employees.
Our Group subsidiaries also grant a variety of benefits to employees
depending upon locally defined practices and country-specific
regulation and norms.
Internal communication activities to drive
employee engagement
We believe that a robust internal communication platform is essential
for driving employee engagement and fostering open collaboration
within our organisation. For example, the Group Intranet has been
transformed over the past few years into blogs, allowing depart-
ments and teams to quickly build and edit their own internal commu-
nication platforms. It also enables employees to comment on news,
share knowledge, collaborate and discuss current topics. Since 2010,
a Group-wide idea forum allows our employees to receive recog-
nition for their ideas and participate in the implementation process.
For 2011, our focus was on knowledge management and collabo-
ration. We started to implement a Microsoft SharePoint platform,
which will enable us to have one global, integrated tool for knowledge
management. This is part of a longer-term project to create a modern
and continual learning organisation.