Motivating, rewarding, helping save for the future
How Tchibo ensures employees receive consistent and attractive compensation.
Tchibo expects a lot from its employees. In return, employees can rest assured that their performance is appreciated and that they are paid handsomely for their work. Equal treatment, transparency and consistency are important principles on which our compensation structure is based.
We stand by our obligations to our employees: with appropriate, consistent and comparable compensation, as well as a range of non-mandatory benefits. We show our appreciation for success with bonus and reward systems. We also make contributions to our employees’ futures through a company pension scheme. Regular market comparisons ensure that our compensation package is and remains competitive.
Job evaluations ensure objectivity and transparency
The compensation system for employees in-house and in the sales force has been based on Hay Group GmbH’s job evaluation system since 1996. International locations have also been included since 2009. The system objectively describes and rates roles according to their requirements. Employees are allocated to one of 14 Hay Group salary levels according to a standardised procedure: Firstly, the most important responsibilities of a position are documented in a job description and an overeview of the tasks and requirements is created. The position is subsequently assessed in terms of uniform, comparable criteria, so that its requirements can be measured. The assessment is based on the following criteria:
- Knowledge: What knowledge and experience is necessary to meet the demands of this job?
- Thinking: To what extent have the required work processes, procedures and clear objectives been stipulated to the person in this position? Is it necessary for them to identify, investigate and solve problems independently?
Responsibility: Within which framework does the person in this position act and decide? To what extent can the role influence company or departmental results?
The answers to these questions form the role’s evaluation. This system makes positions within the company comparable on a national and international level and forms the basis of fair and market-driven remuneration. Other HR services and instruments also tie in to the evaluation – and the evaluation system makes a big contribution to personnel development at Tchibo: Comparing performance with the job description shows the employee and their manager what is going well, but also where there is room for improvement.
Market-rate wages for all
Fair and appropriate wages are important to us. We follow the pay scales defined by collective agreements for the retail trade in the remuneration of our shop employees and sales force. We are only affected by low wages in a very small number of areas, such as services that are performed as part-time work such as putting out stock or working on the Coffee Bars in our shops. Here we do not pay less than EUR 7.50 per hour.
Variable compensation motivates and rewards
Our employees play a key role in our success as a company. We therefore find it important to reward them for success – this then motivates them to continue to work towards ambitious goals. We set up incentives and honour individual performance with variable elements of remuneration such as bonuses and rewards. For employees falling outside the scope of collective wage agreements, there is a bonus system that additionally rewards the attainment of company and department targets as well as individual targets, so that they too can share in the company’s success. Administrative managers can also draw on a separate rewards budget for special achievements made by their employees. Voluntary Christmas and holiday bonuses may also be paid.
2010 was a successful year for Tchibo. As a thank you and to recognise the work performed, all employees not eligible for a bonus will receive a one-off reward of EUR 1,000 – EUR 800 gross as a special payment and EUR 200 in vouchers.
Planning ahead for retirement – with our pension plans
Our employees’ future is important to us. For the past ten years, as a thank you and in recognition of the work performed, we have committed to providing all employees of Tchibo GmbH and its domestic subsidiaries – including shop staff – with a company pension scheme, a capital payment based on how long they have work for the company and the company’s long-term success. The amount of the payment depends on the employees’ contractual position and how long they worked for the company. With this scehem, we are setting a good example for our sector.
As part of the “wage agreement-related and statutory pension scheme”, all Tchibo employees also have the option of building up an additional pension pot through payments exempt from taxes and social security contributions, to which we contribute up to EUR 300 per year on the employee’s request. We also offer direct insurance, and for managers deferred compensation, as further private pension plans. The employee’s individual life situation determines which form of pension plan instrument is best for him or her. Our experts in HR offer one-to-one consultations to answer this and alny other questions that arise.
Corporate benefits in 2010
As a family business, we attach great importance to the satisfaction of our employees. We therefore offer them a comprehensive package of voluntary benefits. This allows our employees in Hamburg, for instance, to engage in over 30 different types of sport, to take a dip in the pool or to work on their health in the gym at the Tchibo Sports and Leisure Centre, all for a low contribution. The employees’ canteen is also subsidised, holiday pay is awarded and there are discounts on Tchibo products.
Here is an overview of our current benefits package:
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Distribution of salary levels at Tchibo (2008-2010)
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