employees

Highly qualified and committed skilled workers and managers are a key success factor for a robot-based automation technology leader. kuka can only maintain and expand its quality and application orientation advantage over competitors if our employees remain highly motivated and committed to solving problems and developing new ideas for our customers and for kuka’s success. kuka employees have creative minds and are capable of responding flexibly and skillfully to a wide variety of customer needs throughout the entire world. Moreover, they think entrepreneurially and conscientiously. kuka jobs around the world demand a high degree of independence and an entrepreneurial spirit.

human resources programs of key strategic importance

For kuka’s Human Resources Department, this means that personnel planning and development is of increasing strategic importance. Timely steps must be taken to contend with the pending shortage of skilled workers in Germany and the increasing average age of the workforce. Forward-looking personnel planning is now one of the most important variables that must be managed to secure the company’s future. kuka’s hr Department therefore developed several programs and extended others in 2008 to enable it to find suitable employees early, systematically coach younger employees to master their assignments, develop managers from within the ranks and ensure that the generational shift in the company is handled in the best interests of all parties.

As of December 31, 2008, the kuka Group had 6,171 employees, 439 or 7.7 percent more than the prior year’s 5,732. The Robotics division added 238 employees to support its business growth, primarily in r&d and in sales and manufacturing (Hungary). Some were contract workers. As of December 31, 2008, the division’s workforce totaled 2,261 persons, up 11.8 percent from the prior year’s key date. The Systems division added 199 persons, primarily in China and in manufacturing. Overall, the division had 3,781 employees at year end, 5.6 percent more than at the same time last year. The Group holding company and other companies had 129 employees versus 127 last year. The majority of these work at the Augsburg headquarters and provide services for kuka’s companies.

The makeup of the workforce remained relatively constant compared to last year. In 2008, the average age in the Robotics division was 38.5 years and in Systems, 40.8 years. The qualification statistics of the workforce is a key performance indicator for companies. kuka employees are highly qualified: 20 percent have a university or college degree, 72 percent have a diploma in a accounting or technical field, 7 percent are trainees or apprentices and 1 percent has no skills training. 90 percent of kuka employees therefore have a degree or diploma, or are in the process of obtaining one. In the past year, 16 apprentices and four university graduates successfully completed their training programs at kuka.

In 2008, 23 employees were honored for being with the company for 40 years. 15 employees celebrated their 25^th anniversary with the company.

employees by division	employees by region
(in %)	(in %)

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Prior year numbers in brackets

international trainee program

kuka has for years been offering an international trainee program for young professionals in order to systematically prepare tomorrow’s managers right now for the tasks that lie ahead, and bind qualified persons from our own ranks to the company.

kuka’s integrated business model led it to introduce its first joint trainee program for the Robotics and Systems divisions in the summer of 2008. Six engineers and one accountant rotate through the various departments in Germany for 15 months and are then placed at one of kuka’s foreign subsidiaries for a further three months. A two-month exchange at each of the respective sister companies is also part of the trainee program. The trainee program is accompanied by numerous workshops covering various behavioral and management topics. The trainees’ main contact during each phase of the training is the human resources representative who helped develop the program and also manages it. Supported by a mentor who knows the company and also the later area of responsibility of the candidate, the recruits are trained for their future career path based on an individual development plan. The activities also help these young professionals establish a network.

In 2008, kuka attended 16 university job fairs to provide information on the personal growth prospects for new employees.

In addition to the trainees, 19 apprentices between the ages of 15 and 19 began their apprenticeships at kuka last year. Their career choices included industrial accounting, computers, mechatronics, tool and die making and industrial mechanics. kuka offers “Implacement Days” to facilitate the launch of the young peoples’ careers. During a two-day workshop, the apprentices have the opportunity to get to know one another and develop a positive sense of belonging. The apprentices work in teams for the first time, learn to accept responsibility, and learn that kuka expects its employees to bring their own ideas to the table. Most days during the average three and a half year training period are filled with seminars conducted by the company. In 2008, the instructional program focused on software applications, the employee suggestion program, marketing, logistics, telephone communications, recognizing opportunities, and international topics including language training. The “Fit for Fair” training course gives the young people an opportunity to participate in tradeshow duty when kuka attends trade fairs.

Apprentices who performed well also had the opportunity in 2008 to visit a kuka foreign subsidiary for four weeks. Last year, six apprentices spent a few weeks at subsidiaries in China, Belgium and the United States, becoming familiar with the local business and also the culture and mentality of people at those locations. kuka includes these foreign placements for apprentices in its human resources management program, not only as a motivational incentive but also to prepare the participants for later possible duties at foreign locations.

target agreements include continuing education

The kuka Academy is a symbol of the high quality of continuing education offered by kuka. At the Augsburg location, external tutors enable employees to refresh their foreign language skills, acquire business management and tax law knowledge, improve their social skills, as well as their ability to communicate and manage conflicts. If kuka employees want to participate in furthering their education by taking courses outside the academy, the company welcomes their initiative and financially supports these endeavors. After all, one of the company’s stated objectives is to foster the skills and personal development of each employee. Furthermore, from the company’s perspective, continuing education opportunities are important incentives, which are motivational and reflect our appreciation of the staff.

Last year, a total of 1,480 employees participated in continuing training courses at the kuka Academy. In 2007, the number was over 1,000. The number of seminar days rose from 2,320 in 2007 to 2,627 last year. In 2008, the seminars were aimed at social skills and personality development, in addition to technical courses in areas such as 3-d design. Twelve employees also participated in management training programs. An additional twelve employees successfully completed a certified project management course. (Please refer to the section on “Sustainable business” for more information about educational opportunities at kuka).

kuka has a joint program with the University of Augsburg, which enables employees to earn an mba. The four-semester, 20-month mba program is called “Company management”. An eight-week assignment in a foreign country is mandatory. The mba awarded at the end of the program is an internationally recognized academic degree. The main topics covered by the mba program are economics, management and international skills.

kuka human resources management is based on a work-life balance concept that offers its employees modern working hour options tuned to their particular stage in life. Last year, the Group had 13 part-time positions and 24 employees working out of their home offices. In 2008, 13 women were on maternity leave, and 26 women and 30 men were on parental leave so that they could dedicate themselves to raising their small children.

employee suggestions

kuka Robotics manufactures its products in accordance with the kuka Production System. This is a well-known system based on Japanese processes. kuka aims to achieve continuous improvement with this program and focuses on the employees to provide suggestions and drive progress. All kuka employees are encouraged to submit improvement suggestions. The statistical trend in the number of improvement suggestions from kuka Roboter GmbH employees is interesting: Although the number of recommendations has declined, the overall benefit achieved continues to rise and in 2008 reached about € 235,000. The savings per idea almost tripled between 2006 and 2008. Last year, employees were paid € 16,000 in total for their suggestions. kuka Systems reported 92 improvement suggestions from 77 employees during the reporting period, of which 85 were acknowledged. These employees received material awards.

One notable recommendation came from the logistics department in Augsburg. Until recently, robots were loaded onto trucks side-by-side on movable tracks called linear units. These linear units can now be stacked on top of one another by using ordinary lumber separators. This revised loading method cuts transportation expenses in half and significantly cuts kuka Systems’ and kuka Robotics’ shipping costs.

thanks to all employees

kuka’s Executive Board thanks all of its employees for their performance, their strong dedication and their loyalty to the company in 2008. kuka’s employees, with their motivation and desire to succeed, are the reason for the company’s technology leadership, and are the basis for its continuing growth. In addition, we thank the representatives of the executive staff, the employee association representatives, the liaison persons for the severely disabled and the apprentice representatives.

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