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adidas Group
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2013 Annual Report
Group Management Report – Our Group
107
2013
Employees
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02.9
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Our development programmes are complemented by apprenticeship and
internship programmes. The adidas Group apprenticeship offers young
people who want to join our Group directly out of school the opportunity
to gain business experience in a three-year rotation programme. The
programme includes vocational training in retail, industrial management
and IT, as well as integrated study programmes. At the end of 2013,
we employed 59 apprentices in Germany (2012: 56) and 62 integrated
study programme students (2012: 48). 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 2013, we
employed 532 interns in Germany (2012: 492).
Performance management: To further drive a high-performance culture
within the adidas Group, in 2013 we rolled out our new performance
management approach: The Score. The Score is our overarching concept
to bring target setting, employee development and performance
appraisal under one common process. While continuing to build on our
key values of performance management, The Score also brings more
focus, simplicity and alignment in setting team and individual targets and
provides clarity for both teams and individuals about how to successfully
achieve them. Each employee is evaluated and receives feedback at least
twice a year, and employee development planning is further supported
by the new process and system solution.
Succession management: The adidas Group succession management
approach aims to ensure stability and certainty in business continuity.
We achieve this through a globally consistent succession plan which
covers successors for director level positions and above, including
the Board positions of the Group. These positions and the respective
potential successors are regularly discussed by senior management
and our global HR leadership teams. The succession reviews create
a clear picture of the successor readiness and outlines the necessary
development actions. Based upon this information, we ensure individual
development plans are in place to prepare successors for their potential
next steps. We also use the successor information to create dynamic
talent pools and hence have a clear understanding of the areas that
need immediate or strategic action. All information is consolidated in a
succession management risk analysis.
The succession management process is supported by a system solution
which is applied in 91% of the adidas Group’s business units and is
becoming part of our Integrated Talent Management Process and
System through a step-by-step implementation approach.
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 establishing 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
compensation 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 The Score process)
and corporate performance (actual financial results measured against
such targets as Group, Channel, Brand and/or Market). To further drive a
high-performance culture within the adidas Group, we also implemented
changes to our bonus programme as of 2013 to support alignment with
business targets and put more emphasis on individual targets through
the rewarding element of the bonus programme.
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 a profit participation programme
called the “Champions’ Bonus”.
Long-term incentive programmes: In order to encourage sustainable
financial results as well as retain our top leadership, the adidas Group
offers Long-Term Incentive Programmes (LTIP) for leaders and Executive
Board members. We value the contributions of our leadership team and
provide this compensatory benefit to encourage continued performance
and commitment. Other benefits include our 401(k) retirement plans
in the USA and the adidas Group pension plan for our employees in
Germany. In 2013, 2,315 employees participated in the latter, which
represents 48% of all eligible employees.
Our Group subsidiaries also grant a variety of benefits to employees,
depending upon locally defined practices and country-specific
regulations and norms.