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1 Thank you for joining! The webinar will start shortly
To protect the confidential and proprietary information included in this material, it may not be disclosed or provided to any third parties without the approval of Aon Hewitt.

2 Thursday, 5 June

3 1 2 3 Global and regional trends Embedding employee engagement
Agenda Global and regional trends – Rita Veres, Aon Hewitt Embedding employee engagement – Gerhard Wagner, HOERBIGER The Engagement Outliers – Dr. Wolf-Bertram von Bismarck, Aon Hewitt 1 2 3

4 Our Speakers Rita Veres Olivier Hamelle Gerhard Wagner
Dr. Wolf- Bertram von Bismarck

5 Trends in global and European engagement
Discussion Trends in global and European engagement Rita Veres

6 Are you prepared for change?
Your business will change dramatically by 2020 Are your employees engaged and ready?

7 The Aon Hewitt engagement model
Engagement Drivers Engagement Outcomes Business Outcomes Talent THE WORK EXPERIENCE Leadership Operational Performance Brand Customer Company practices The work The basics Financial

8 Trends in Global Employee Engagement (2009-2013)
Engagement is on the rise and is steadying following global economic stabilisation Trends in Global Employee Engagement ( ) % of Engaged Employees Source: Aon Hewitt Trends in Global Employee Engagement 2014

9 Trends in European Employee Engagement (2009-2013)
The flat engagement levels in Europe are masked by changes in the sub-regions Trends in European Employee Engagement ( ) % of Engaged Employees Western Europe: Andorra, Austria, Belgium, Denmark, Finland, France, Germany, Iceland, Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom Central Europe: Bosnia, Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, Poland, Romania, Slovakia, Slovenia Eastern Europe: Albania, Belarus, Cyprus, Estonia, Georgia, Greece, Latvia, Lithuania, Moldova, Russia, Serbia, Turkey, Ukraine Europe | Engagement Score: 57% Source: Aon Hewitt Trends in Global Employee Engagement 2014

10 Work experience trends
Global Europe Employee value proposition is breaking down especially in Europe

11 Organisational reputation continues to be a key employee engagement priority
Drivers 2013 Global Europe Western Europe Central Europe Eastern Europe UK France Germany Switzerland Russia Career Opportunities 1 3 2 Organisation Reputation 5 Pay 4 Innovation Managing Performance Career Aspirations Communication Recognition Brand Alignment Work Processes Work Tasks Senior Leadership Learning and Development Manager

12 The HOERBIGER story CHRO & Member of the Executive Board
Discussion The HOERBIGER story Gerhard Wagner, CHRO & Member of the Executive Board

13 Empowering people to excellence Our ‘Voice for Excellence’ journey
To all HR Leaders who believe in employee engagement My pleasure to share our Journey and my perspectives. Look forward to our discussion. Mr Gerhard Wagner Chief Human Resources Officer and Member of the Executive Board HOERBIGER

14 HOERBIGER: We set standards Strategic business segments securely balanced on three pillars
Compression technology Automation technology Automotive Key components and services for compressors, turbines and industrial gas- operated engines Safety products Smart actuators for machine tools and control valves Solution kits for demanding customer applications Testing and diagnostic technology Synchronizer systems for manual transmissions and double-clutch systems Comfort systems for passenger cars and commercial vehicles With approx. 140 production plants, service & sales branches in 54 countries and 6700 employees

15 HOERBIGER Vision HOERBIGER Vision We set standards HR Mission
By empowering people to excellence And we empower people through (HR Strategy): Having the best in the industry work for us and be proactively staffed to drive our growth And through a high performance culture Where everyone has an opportunity to develop, contribute and grow Leaders who set visionary standards through focus and excellence Sustainability through: Focus & Excellence The Foundation: Values Pioneering Spirit, Courage, Fairness and Closeness lived through the HOERBIGER Excellence behaviours at workplace HOERBIGER Vision We set standards

16 We set standards Our distinctive Leadership Brand is the heart of our leadership in the industry and innovation We use excellence behaviours in all people processed and not rigid competencies to be better in understanding our local markets and cultures Our Executive Board annual goal sheets are on our intranet for all employees to read We share consolidated 360 degree feedback of our top 400 leaders openly Our Voice for Excellence (engagement) results and action plans of every country and entity are visible to all employees We drive inclusive culture - a career for us means ‘Being proficient and staying in a role for a long period or moving between roles successfully’ We share our succession pipeline consolidated data openly with all our managers

17 We set standards with our distinctive Leadership Brand
Who The Organisation is known for Their Leaders are known for Wal-Mart Always low prices Managing costs efficiently, getting things done on time FedEx Absolutely, positively doing whatever it takes Managing Logistics, meeting deadlines, solving problems quickly LEXUS In pursuit of perfection Managing quality processes (Lean, Six Sigma), for continuous improvement P&G Brands you know and trust Developing consumer insights, precisely targeted marketing, product innovation McKinsey Being the CEO’s trusted advisor Leading teams that deconstruct business problems, synthesize data and develop solutions Boeing People working together as a global enterprise for aerospace leadership Solving global problems, working as teams, possessing technical excellence in aerospace Apple Innovation and design Creating new products and services that break the industry norms PepsiCo Appealing to the younger generation Building the next generation talent HOERBIGER* Performance determining components Setting standards through Excellence & Focus All data other than marked as “*” are from HBR Research on Leadership Brands

18 “Closeness” is one of our company values. Driven by open sharing.
Transparent and available people tools Simple learning tools to explain the bonus calculation is available to all employees including a bonus calculator Rewards Performance Management Executive Board Goal Setting Workshop Video & Individual Goal Sheets of each Executive Board Member are visible to all employees Succession Planning Leadership Potential definition & All process related information available to all employees Management Excellence 360° Feedback Consolidated Feedback Grid covering the Executive board and all Management Levels openly shared

19 This drives in our improvement 48% in 2012 to 58% in 2013 in our employee engagement. We are just starting. Engagement

20 Visibility drives consumption in 27 languages and 54 countries to 6700 employees

21 The HOERBIGER Engagement Globe is an interactive tool that drives transparency of engagement results and action plans to all employees across all locations

22 The HOERBIGER Engagement Globe By clicking on a location pin, detailed results are displayed

23 The HOERBIGER Engagement Globe By clicking on action plan for the location, the action plan is displayed

24 The Engagement Outliers
Discussion The Engagement Outliers Dr. Wolf-Bertram von Bismarck

25 What is required for a successful space mission?

26 What is a normal change in engagement?
We analyzed almost 1,100 organisations in our global database that conducted repeat engagement surveys between 2010 and 2012 to find out, what is a normal engagement improvement between two cycles and what is an outlier. Organisations experiencing engagement change between survey cycles

27 Two different types of outliers
The most improved players + 2% pts Average change in engagement + 9% pts Average increase in engagement for improving organisations + 14% pts Outlier engagement improvement The best getting better 27

28 ‘Most improved players’ start from the bottom quartile
Basics Culture Work Rewards Most improved players: Started out in the bottom quartile Improve their score significantly Only 6% of companies overall achieve these type of gains Levers for improvement: Fix the basics Get your culture out of the ditch Focus on fulfilling work

29 The ‘best getting better’ build a culture of engagement
Rewards Work Basics Best getting better companies Are rare Are marked by strong perceptions in several key engagement drivers Levers for improvement: Protect the basics and create meaningful work Lead a culture of engagement Align rewards with performance

30 Engagement outlier checklist
Enable first Not just a survey score Go big All about me Great culture from great leaders Engage in?

31 Conclusion We have heard about the changing nature of employment…
...and the challenge of employee engagement from the employer perspective As well as learning how some organisations are making quantum leaps in engagement – and continuing to improve on impressive results

32 Any questions?

33 And finally… Some useful links and further information:
The 2014 Trends in Global Employee Engagement Report can be found here. Aon Hewitt’s Engagement Outliers Whitepaper can be downloaded here. More information about Aon Hewitt’s employee engagement views and findings can be seen here, with further research and thinking. If you would like any more information please don’t hesitate to contact: Olivier Hamelle: Rita Veres: Dr. Wolf-Bertram von Bismarck: 33

34 About Aon Hewitt Aon Hewitt is the global leader in human resource consulting and outsourcing solutions. The company partners with organisations to solve their most complex benefits, talent and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 30,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. © 2014 Aon Hewitt Limited Aon Hewitt Limited is authorised and regulated by the FCA. Registered in England & Wales. Registered No: Registered Office: 8 Devonshire Square, London EC2M 4PL. Disclaimer This document and any enclosures or attachments are prepared on the understanding that it is solely for the benefit of the addressee(s). Unless we provide express prior written consent, no part of this document should be reproduced, distributed or communicated to anyone else and, in providing this document, we do not accept or assume any responsibility for any other purpose or to anyone other than the addressee(s) of this document. Notwithstanding the level of skill and care used in conducting due diligence into any organisation that is the subject of a rating in this document, it is not always possible to detect the negligence, fraud, or other misconduct of the organisation being assessed or any weaknesses in that organisation's systems and controls or operations. This document and any due diligence conducted is based upon information available to us at the date of this document and takes no account of subsequent developments. In preparing this document we may have relied upon data supplied to us by third parties (including those that are the subject of due diligence) and therefore no warranty or guarantee of accuracy or completeness is provided. We cannot be held accountable for any error, omission or misrepresentation of any data provided to us by third parties (including those that are the subject of due diligence). This document is not intended by us to form a basis of any decision by any third party to do or omit to do anything. Any opinions or assumptions in this document have been derived by us through a blend of economic theory, historical analysis and/or other sources. Any opinion or assumption may contain elements of subjective judgement and are not intended to imply, nor should be interpreted as conveying, any form of guarantee or assurance by us of any future performance. Views are derived from our research process and it should be noted in particular that we can not research legal, regulatory, administrative or accounting procedures and accordingly make no warranty and accept no responsibility for consequences arising from relying on this document in this regard. Calculations may be derived from our proprietary models in use at that time. Models may be based on historical analysis of data and other methodologies and we may have incorporated their subjective judgement to complement such data as is available. It should be noted that models may change over time and they should not be relied upon to capture future uncertainty or events.


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