CASE STUDY: SUCCESS WITH EXPATS AT LANXESS 12 APRIL 2013

Stefan Arnoldt

LANXESS Deutschland GmbH

Leverkusen (Cologne)

COMPANY PROFILE

Facts and Figures

Employees worldwide

Global scope

approx. 17,200 in 31 countries

48 production sites worldwide

Performance Polymers

Advanced Intermediates

Performance Chemicals

Portfolio

2011 Sales EUR 8.775 bn

2012 Sales EUR 9.094 bn

LANXESS is one of Germany’s most important providers of polymers and chemicals

Broad product range comprising premium chemicals, rubber and polymers

Product Portfolio

High-quality intermediates

Active ingredients (custom manufacturing) and intermediates for

pharmaceuticals and crop protection products

Material protection products

Finishing agents for leather

Ion exchange resins, especially for water treatment

Inorganic pigments for coloring concrete and surface coatings

Dyes and inorganic and organic pigments for coloring plastics

Plastics additives such as flame retardants and plasticizers

Solid rubber and rubber chemicals for the rubber and tire industry

Plastics for automotive, electrical appliances, furniture, sports and

leisure

Perlon wire for technical applications

Sites and Offices

Global Presence

Long-Term Assignments as of 28 Feb 2013

EMEA

outbound 144

inbound 74

transfers 219

APAC

outbound 18

inbound 98

transfers 116

AMERICAS

outbound 43

inbound 33

transfers 76

WORLD

Long-Term Assignmt.

TOTAL 205

LANXESS – Global Expat Population

LANXESS International Assignment Policy Review

Board Initiative “Diversity & Inclusion” set up in 2011; inter

– D&I focus: Gender / Age, Seniority/ NATIONALITY

– Define and implement internal conditions to enhance talent development

– Expatriates identified as a very sensitive target group

disciplinary group project

Expatriates & HR Expat Management establishing network to:

– Shorten the integration phase

– Increase feeling of inclusion (esp. for family members, partners)

– Improve working environment/conditions, motivation

– Establish platform for discussions and exchanging ideas, knowledge, experiences

Initiatives

– Expat Lunch

– Global Expat Mailing List

– Share Expat Portal

LANXESS International Policy Review NEW: Dual-Career Allowance

Diversity & Inclusion International job posting of expat positions

XPat Guidance Program LANXESS Mentoring program for Expats

“Expat Lunch” Networking, Events, Information, Inclusion …

AGENDA

LANXESS International Policy Review NEW: Dual-Career Allowance

Dual-Career Allowance (DCA) for Accompanying Spouse/Partner

Support for married or unmarried couple

Spousal Assistance

Lump sum payment for training purposes

• Max. EUR 6,000 net

• Training & development

• Application training

Dual-Career Allowance

Payments for up to 2 years when partner sacrifices job

• DCA calculation based on 50% of previous annual gross base salary

• Max. EUR 50,000 p.a.

• Deduct hypo tax & social security

Company provides more

service & support to find a new job

• Internal / external networks

• Local job market

• Outplacement provider

Dual-Career Allowance: Qualifying Conditions

Assignee’s spouse/partner has been working for > 12

months as of the date when employee is offered an

international assignment

Spouse/partner will quit current job and accompany assignee

on long-term international assignment

Dual-Career Allowance: Terms

EUR 6,000 reimbursement of “spouse assistance” will be entitled when the DCA is provided

In general, payment granted for 2 years

DCA continues even when spouse/partner gets job in host country within two years after assignment start date

The payment stops if, within 2 years: spouse/partner returns to home country or

assignee or spouse/partner is repatriated

“Annual Calculation base” refers to annual gross base salary including guaranteed monthly cash allowances

Other variable allowances, bonus, LTI, and benefits are not included into the calculation basis

DCA will be paid for two years in home or host currency

The “Annual Calculation base” is fixed for the two-year period. No hypothetical merit increase, promotion, or inflation increase of spouse/partner income is considered

Dual-Career Allowance: Calculation

Diversity & Inclusion International Job Posting of Expat Positions

All expat positions subject to a group-wide posting/ selection process

Introduce global common expat selection process standard

Foster best-fit staffing using group-wide resources

Integrate expatriation into HR development

Foster int’l careers, make LANXESS a more attractive employer

Objectives

1. Position needs to be filled with an expat for knowledge transfer

2. Position is a development opportunity for a specific employee

3. Position to be filled with an international candidate so position may become an expat position

3 Scenarios

BU Head notifies Global BP of position to be filled with an Expat and gives reasoning according to the 3 scenarios

Postings: Xnet Global (Intranet) International Career:

Measures

International Career: This measure addresses all existing employees worldwide with a particular interest in having an international career (possibly cross-BU/GF) within LANXESS

International Career: Job Posting for Expat Positions

Initial situation: Three scenarios – BU/GF decides

Position needs to be filled by an Expat for knowledge transfer

Provide a development opportunity to an employee (career development) or

Position can be filled by an international candidate so that the position may either

1. become an expat position or

2. stay a local position placed with an international candidate under local conditions

Process Description I – Testing Phase: Posting an expat position Internationally

Applicants

Senior BU/GF Global Business

Partner

Head of HR

BU/GF Global Business Partner

Head of BU/GF

LX

S

Hu

ma

n R

es

ou

rce

s

BU

/GF

Create new or replace existing Expat position *

Place position locally or continue with placement of desired candidate

Upload Expat position to Global

Xnet & inform Country HR

1

: Activity

3

: Question / Decision : Milestone : Participant : Reference No.

Verify Expat position

2

Place expat position on

Xnet Global**

Country HR / Expat Mgt.

* For the international posting of Local positions, refer to the process for Local positions.

** Country employee representatives to be informed according to local legal regulations.

Yes

No

Decide on placement of

position

Process Description II – Testing Phase: Identifying the right candidate

Applicants

Senior BU/GF Global Business

Partner

Country HR / Expat Mgt.

BU/GF Global Business Partner

Head of BU/GF

Head of HR

LX

S

Hu

ma

n R

es

ou

rce

s

BU

/GF

Apply for Expat postition

Present candidates to BU/GF Head

Fill position with candidate 4

Yes

No

Check applications 5

Reject application 6

Decide if candidate fits the position Yes

No

Rejection of candidate

Prepare Expatriation

No

Yes

8

Check preselected candidates

Final decision on selected candidate

7

: Activity : Question / Decision : Milestone : Participant : Reference No.

XPat Guidance Program LANXESS Mentoring Program for Expats

XPat Guidance Program The LANXESS Mentoring program for expats

Support with settling-in in host country (“Navigator”)

Support in career development (“Career Mentor”) Purpose

Selection of Career Mentor by HR together with the BU-/GF-Head

Before Start of Mentoring, Career Mentor shall be briefed and trained

Mentor and Mentee shall meet and then decide whether to continue

Navigator shall be selected by Host HR together with Host line manager

Selection / Matching

Career Mentor at least once per year

Navigator on need basis Meetings

Duration Career Mentor: starts with identification of assignee till 6 months after

repatriation

Navigator: 6 months

XPat Guidance Program The LANXESS Mentoring program for expats

Information on changes/developments in home country

Support in career matters, career planning

Guidance, advice with assignment-related challenges

Representation of the assignee in home country

Repatriation support

Profile:

Manager on a higher level than assignee

International experience; profound knowledge of LANXESS with good network

“Career Mentor” -Home Mentor-

Settling-in support in the host country culture/company

Support in solving intercultural challenges

“Where-to-find-what”

Profile:

Colleague on same level

International experience is helpful; min. requirement: interest in other cultures

“Navigator” -Host Mentor-

“Expat Lunch” Networking, Events, Information, Inclusion …

Expat Lunch – Gathering Expats and Families

Expat Lunch: quarterly lunch event for Expatriate Inbounds

Presentations (examples):

• “New in the city” – doctors & hospitals, emergency center, education, language schools, soccer center, ice skating, golf, climbing, cycling, dancing, gyms, etc

• “How to buy a train ticket” – how to use the ticket machine

• “Tips for driving in Germany” – how to get a German driver’s license, accidents, local points of interest, speed limits, etc

Sunday Outdoor – Castle Dyck

Chinafest Cologne

Hockey Game LANXESS arena

Thank you for your attention!