Performance and Remuneration
The commercial success of Rheinmetall is fundamentally the result of the work of all employees. The offer of attractive conditions and opportunities for employees to involve themselves in the company's success is therefore a cornerstone of Rheinmetall's corporate culture.
The Rheinmetall Group company pension is required to ensure the future provision of employees. It serves – alongside statutory and private pensions – to safeguard the standard of living to which employees are accustomed, even after working life. According to the circumstances of the different countries where Rheinmetall subsidiaries are located, there are different ways of pensions.
Rheinmetall supports for example its employees in Germany with an interesting and innovative version of the company pension. Rheinmetall Plus is comprised of three levels that build upon each other:
1. employer-financed basic pension
2. further employer-financed provision dependent on company success
3. employee-financed supplementary provision via salary conversion (deferred compensation)
These provisions underscore Rheinmetall's sense of responsibility to its current and former employees and present a reliable and important factor in safeguarding the future.
Rheinmetall employees who commit themselves above and beyond the ordinary degree benefit from this financially, both on the individual level, by taking responsibility for achieving personal goals, and overall through sharing in the success of Rheinmetall as a whole.
In Germany, and now 20 European foreign subsidiaries, the stock purchase program "My Share in Rheinmetall" offers employees the opportunity to become Rheinmetall shareholders (including voting and dividend rights) by acquiring shares at attractive terms and thus to participate directly in the commercial success of the Group with its future-oriented product portfolio.
Whoever has successfully committed themselves to achieving their goals will also benefit personally. Therefore, management by objectives is being increasingly connected with remuneration components at Rheinmetall and influences the calculation of variable remuneration. Alongside the non-tariff area, many wage agreements now allow for the possibility of success-related remuneration components, the level of which depends on the achievement of agreed individual or group targets.
But groups of employees for whom performance management is not yet implemented by a personal performance plan also participate in the company results via employee participation in success.
Company success-related components are also included in Rheinmetall's pension provision. Company-financed, success-related pension provision is a major component of the Rheinmetall Plus company pension scheme. With the achievement of agreed company targets, Rheinmetall provides a supplementary contribution to the company pension
To reconcile operational and business requirements with employees' personal interests, Rheinmetall offers various flexible working hours policies in a large number of its business divisions.
Individual daily working hours are based on workload. Both longer working hours with a higher volume of work and shorter working hours with a lower workload can be implemented in this way. For the employees, this offers a high degree of autonomy over working hours and operational requirements can be aligned with individual needs
In many areas of production, too, depending on the wage agreements, a model of flexible core working hours is operated on the basis of shift work, to suit the needs of both the company and the employees.
Flexible working hours models allow the changeable requirements of the national and international market and fluctuations in turnover to be met. Not least, this supports job security – even in times of strained economic conditions.
Rheinmetall utilizes management by objectives to align the management of the Group to the targets of the individual companies in a consistent manner and with the involvement of all employees. Derived from the targets of the company as a whole, targets are formulated for every organizational unit and for employees. With the implementation of these coordinated individual targets, everybody is working on what the company wishes to achieve.
The achievement of the agreed goals is coupled to a variable remuneration component. On the one hand this creates an individual incentive to hit targets or even to exceed them, while on the other hand the employees share in the company's success.
Management by objectives is future and result oriented. For the most part, the crucial factor is not how something is done but whether and how far agreed targets are met. Measures to achieve and implement targets are determined by your employees themselves. Management by objectives thus strengthens employee identification with company goals and simultaneously engenders transparency and an orientation to expectations of performance and results.
Managers do not only benefit financially from this tool. They also gain insights into the relationships between company, division and department targets, better opportunities to coordinate with other divisions and time for important organizational duties.
Health is not only of great individual importance, but is also important for the success of the company. Rheinmetall promotes its employees welfare in a sustainable manner with company health management in the individual divisions. This strengthens motivation and satisfaction and boosts team spirit. At the same time, it offers practical help in the case of health problems and reduces cases of illness.
Rheinmetall health management systems are founded on several cornerstones. These include addiction prevention, occupational health and safety, company integration management and health promotion. While addiction prevention aims to prevent health risks from the use of addictive substances and to offer help to employees suffering or at risk from addiction, occupational health and safety ensures that occupational accidents and illnesses are avoided.
Company integration management is a precautionary measure implemented on the resumption of work after a longer period of illness in order to prevent existing health problems from deteriorating. Health promotion comprises all activities with which employees can actively improve their health.