As an international company, Merck endeavors to achieve a good balance between different cultures and nationalities, between different age groups, and between male and female employees. Merck is convinced that workforce diversity promotes team performance, contributing to the company’s entrepreneurial success. We have therefore implemented measures to sustainably anchor this diversity. Yet we realize that we need to further develop these measures.
Ratio of men and women
Women currently make up 43% of the workforce. The ratio of female to male employees varies among individual business areas, functions and regions. In the Pharmaceuticals business sector, 47% of all employees are female, in Chemicals 33%, and in Group functions 21%. In North America, 47% of all employees are female, in Europe 46%, in Latin America 43%, and in Asia 33%. Women make up 55% of the workforce in research and development, which is the highest percentage, followed by 50% in administration. The lowest percentages of women are in production (32%) and the infrastructure departments (28%). Merck has set itself the goal of increasing the percentage of female employees wherever they are underrepresented.
Internationality
74% of all employees come from countries other than Germany. In 2008, the first year in which we compiled these figures, this was 70%. The increase is primarily due to business expansion in the United States, India and China. One of our basic principles is to hire and develop employees from the respective countries. The company’s decision to locate the divisional headquarters of Merck Serono in Geneva (Switzerland) and of Merck Millipore in Billerica, Massachusetts (USA) also contributes to the internationality of the workforce, which we want to further intensify.
Age structure
Demographic change, and the aging of the population, is not equally noticeable in all countries in which we operate. However, we must adapt to it, particularly in Germany, some other EU countries, and the United States. In these countries, the average age of our employees already exceeds 40 – and we assume that this figure will increase further. In Europe, we are addressing these demographic challenges in various programs. These include adapting workplaces to the needs of older employees and establishing a health management program to maintain their ability to do their job.
Management positions
A balanced diversity among the executive staff enhances career advancement opportunities for talented employees. However, it also enables the company to leverage a broad base of experience and allows for more differentiated entrepreneurial decision-making.
The percentage of women in management positions, meaning grade 14 and higher according to the global grading system introduced at Merck two years ago, is currently 22% calculated across the entire company (excluding employees who joined Merck as a result of the Millipore acquisition since the global grading system has not yet been implemented for them). The percentage is higher at the subsidiaries than at corporate headquarters in Darmstadt; it is also higher in the Pharmaceuticals business sector than in Chemicals. The ratio of women in management positions is lower in certain Group functions, such as IT for example. Merck wants to further increase the percentage of women in management positions. Besides the local measures that are already in place – such as the cross-company mentoring program and creating opportunities to help employees reconcile the demands of career and family – we intend to develop further programs during 2011. We set ourselves a global objective of increasing the percentage of women in top management positions to 25% to 30% by 2016. This target may be supplemented by local or unit-specific values. At the same time we have created the function of Chief Diversity Officer to support implementation.
57% of all management positions are held by persons of non-German nationality – altogether 55 different nationalities are represented in such positions. The internationality of our management levels reflects the global nature of our business activities.
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