Employee promotion and engagement

Talents promoted

In the year under review, SFS increased the percentage of permanent employees enrolled in dual education and training programs worldwide to 6.3% (PY 5.1%). With an 11.2% year-on-year increase in part-time employees, we also made improvements in the area of working time flexibility. The SFS Group also successfully expanded the retirement support programs in 2024.

In the materiality analysis carried out in 2022, “Training and education” was classified as the most important social topic and was combined with “Diversity and equal opportunity” to form the focus topic of “Employee promotion and engagement”.

Continuous dialog with employees

Well-trained, motivated and satisfied employees achieve the best results and create added value. Open communication, the regular engagement of employees and good working conditions are therefore of central importance to us. We make a commitment to these principles in our sustainability guidelines: “We encourage discussions and dialog with employees and employee representatives. We grant employees the right to freedom of association in accordance with the laws and regulations of the individual countries and regions.”

Continued focus on “Diversity and equal opportunity”

SFS is a company whose diversity is already reflected in its international corporate structure. Diversity contributes to a positive overall environment and strengthens our business performance. Diversity relates to gender, ethnicity, age and disability, as well as religion, personal lifestyle and sexual orientation. The promotion of diversity and equal treatment is part of our sustainability guidelines and the Code of Conduct: “We promote a working environment in which the diversity of our employees plays an active role. We are aware that our employees are important stakeholders and strive to treat everyone fairly and equally.”

Targets defined for gender diversity at management level

Greater diversity helps SFS to counteract the shortage of skilled labor and increase team performance. At present, gender diversity at management level is still not as pronounced as desired (see GRI 405-1). The SFS Group is working on the target of having women make up at least 30% of the Board of Directors by 2026 and at least 20% of the Group Executive Board by 2031. Future recruitment activities will focus more on team composition, with women with similar qualifications being preferred to their male counterparts. Candidates aged 50 and above will also be employed in increasing numbers to promote age diversity. We are increasingly factoring diversity into new and existing projects, particularly in the composition of project teams.

GRI 405-1 Diversity of governance bodies and employees

Flexibility of working hours increased

The tables “GRI 2-7/GRI 2-8 Employee figures by employment relationship and by region” provide an overview of the current personnel structure at SFS. In order to further improve the work-life balance, we are advocates of flexible working-time models: In the year under review, this offering was taken up by 428 female (PY 392) and 361 male (PY 318) employees (figures quoted in FTE). SFS thus recorded an 11.2% increase in the number of part-time employees in 2024 in comparison to the previous year.

GRI 2-7/GRI 2-8 Employee figures by employment relationship

GRI 2-7/GRI 2-8 Employee figures by region

Employee development programs expanded

SFS is convinced of the enormous importance of the dual-track system of education and training as well as its impact on the economy and society. We attach great importance to professional development and future planning for our employees. The SFS Group also supports its employees with relevant programs when they decide to retire from gainful employment. During the year under review, the following changes were implemented in various areas:

• In the Netherlands and the UK, a joint career and future planning offering was provided with individual development goals.
• A special training course for management was held at the locations in Italy, the US and Switzerland with a focus on improving the participants’ soft skills.
• Based on the annual assessment process, we created a monthly training calendar in India to ensure that regular training sessions are held.
• The Advanced Leadership Development Program (ALDP) was also launched in India. The regional training course for experienced team and project leads, which has already been successfully implemented in other parts of Asia, Europe and North America, also promotes establishing an international network.
• In the reporting period, we also focused on taking measures to ensure we are seen as an attractive employer by young talented individuals. These measures included our employer branding campaign in Switzerland, participation in various vocational training events at our locations in Europe as well as the international exchange of apprentices.
• In the US and Asia, we established cooperation programs with students and universities to connect young talents with the company at an early stage. In Switzerland, the number of trainee positions for students was expanded to make it easier for them to enter the world of work.
• One particular highlight was the expansion of the “Gurukul” training center in India. Following the launch of the center with 17 apprentices in summer 2023, two year groups and a total of 42 apprentices successfully completed the dual program in 2024.
• With an increase of 54% in comparison with the previous year, SFS significantly expanded the retirement support programs (see table GRI 402-2). The growth in demand can mainly be attributed to the large number of people born in the “baby boomer generation”, who are now gradually reaching retirement age.

GRI 404-2 Programs for upgrading employee skills and transition assistance programs

Objectives in the area of dual education and training successfully met

The high priority given to the dual-track system of education and training by SFS is evident, among other things, in the enshrining of the topic in the corporate strategy and long-term objectives. The SFS Group aspires to ensure that 5–7% of its permanent employees worldwide are enrolled in dual education and training programs. In the year under review, we were once again able to confirm the achievement of this target with 6.3% (PY 5.1%) enrolled in such programs.

GRI 404-1 Average hours of training per year per employee

In-house succession arrangements ensure knowledge transfer

SFS implements suitable training measures to promote employees at all levels and to enlarge the talent pool for internal appointments. The aim is to fill 70% of upper management positions with internal candidates. In the year under review, we filled 67.1% (PY 70.8%) of the key functions with internal candidates and thus just fell short of our target (see table GRI 405-1). Divisional and segment management as well as the HR team are responsible for filling these positions, while the Structured Employee Development Process (SEDP) ensures the promotion of talented individuals. The CEO and HR officers review whether targets have been achieved and inform the Nomination and Compensation Committee (NCC) and the Group Executive Board of the degree of target achievement.

Feedback from the employee survey offers valuable starting points for improvement

Only satisfied and committed employees can deliver extraordinary performances. This is something that was confirmed by our employees, the value creators, not only through their creative and innovative solutions but also their responses in surveys. SFS conducts this Group-wide survey every two years. The results of the employee survey in 2023 were analyzed in great detail and further clarified by means of workshops. In so doing, we developed suitable measures to boost the attractiveness of SFS as an employer and further improve working conditions. The measures focus primarily on the following topics:

• Employer branding (attractiveness as an employer)
• Employee development (incl. training and education)
• Employee engagement
• Health protection
• Work-life balance

Engagement promoted through dialog and leadership tools

In addition to the survey, SFS employs other dialog and leadership tools in order to make ongoing improvements to working conditions and promote open, two-way communication. Such tools include:

• After-work, sporting and themed events such as the Sustainability Day
• CEO town hall meetings: Our CEO informs managers from all around the world about current business performance twice a year
• Information events where employees can hold in-person discussions (such as quarterly information or shop floor meetings)
• “Internes”, the magazine published by employees for employees
• Regular performance reviews (management by objectives, see GRI 404-3)
• Targeted internal employee development programs
• The “mySFS” employee app, which serves as a digital communications platform and intranet

Slight decrease in the number of employees with a performance review

SFS has established a globally valid process for regular employee performance reviews, which pursues the following objectives:

• Achievement of the overarching corporate targets
• Employees’ degree of identification with the corporate targets
• Employee promotion and engagement
• Identification of training needs and verification of the effectiveness of training programs
• Review of employees’ performance and conduct

In the year under review, the percentage of employees with a performance review stood at 72.6%, which was slightly down year-on-year. Our aim is to increase the performance review rate. In addition to performance reviews, the global process is also used to determine training needs, as part of which managers work together with employees to define the relevant training measures.

GRI 404-3 Percentage of employees receiving regular performance and career development reviews