Training Session on Human Resources Summary of the Training Session in Langenlois (Lower Austria) on 5 th May 2009

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Training Sessin n Human Resurces Summary f the Training Sessin in Langenlis (Lwer Austria) n 5 th May 2009 1 Intrductin t the rle f Human Resurces in innvatin Human resurces are a vital driver f innvatin. On the ne hand, the availability f high-skilled and educated peple in a regin are cnsidered external enablers, as applied in the Eurpean Innvatin Screbard methdlgy (EIS 2008]. On the ther hand, HR management in cmpanies themselves als has high influence n the innvatin capacity f internal persnnel. Innvatin means cmmiting resurces t an uncertain future. In general, this uncertainty leads t an unwillingness t risk jbs r futures wrking n items that are new r risky, withut apprpriate assurances. It requires peple t be willing t try new things and t risk making mistakes. Therefre, the ability t cmmunicate that failure is acceptable and that peple wh "think utside the bx" will be rewarded is imprtant. HR management needs t identify (internal and external) staff wh are capable f ding this. Nt everyne is equally innvative, but there is always the pssibility t train and develp additinal innvatin capabilities amng emplyees. Are they inquisitive? Are they lcked int ne viewpint r willing t cnsider thers? Are they pen t new ideas, new cncepts? These questins have a lt t d with hw peple are recruited and hw their skills are imprved t welcme innvatin [Phillips 2007]. 2 Cnclusins f the training sessin The Training Sessin n Human Resurces was held in Langenlis (Lwer Austria n 5 th May 2009) The key-nte presentatin fr the training sessin was given by Thmas Aichinger frm WIMTEC (Elektrnische Steuerungs- und Meßgeräte GmbH), a family wned, medium sized cmpany based in Lwer Austria. WIMTEC's HR management is very prgressive and innvative with a brad range f services fr its emplyees. Under the slgan "healthy emplyees = healthy cmpany" and using the AGiL (Aktiv, Gesund im Leben) prgramme, WIMTEC is creating a unique crprate culture. The results are high satisfactin f the emplyees and very lw degree f illness: while the average Austrian emplyee has apprximately 11 days f absence per year, a WIMTEC emplyee is nly missing arund 3 days in average. Under the

slgan Healthy emplyees = healthy cmpany WIMTEC is creating a unique crprate culture. WIMTEC cnsiders emplyees as the number ne ecnmic factr fr innvative cmpanies: Successful cmpanies will nt be thse wh have better peple wrking fr them, but thse wh have peple wrking better. 4 years ag WIMTEC develped the prgramme AGiL ( Aktiv, Gesund im Leben ) with fcus n quality f life by increasing satisfactin, healthiness and happiness f emplyees. Emplyees are trained in hlistic thinking and self respnsibility fr her/his wn healthiness dne. Tls fr well-being, such as techniques fr massage and breathing, are ffered. The factry canteen and a fully equipped tea rm fr relaxing breaks are als results f AGiL. Flexible wrking time and an advanced educatin prgramme fr all emplyees (independent frm educatinal status and functin in WIMTEC) as cntributin t lifelng learning als belng t WIMTEC s HR plicy. These include training curses n tpics such as persnality, cmmunicatin, time management, knwledge management. Therefre, WIMTEC has built respective seminar rms, well-being/fitness rms and als a tea rm. In additin, jint leisure activities utside the cmpany are rganised. As an impact f WIMTEC s HR plicy there is a much strnger crprate identity amng emplyees, and their willingness fr cllabratin and supprting each ther has cnsiderably increased. AGiL has als cntributed t the increased perfrmance f WIMTEC and ther less tangible issues. WIMTEC als uses its innvative HR plicy and ther attractins fr external peple and custmers like "Freydegger Spezialitäten" (reginal distillery with events/seminars n hw t distil schnapps, http://www.freydegger.at/news.php) as part f the Freiraum cncept fr marketing activities t acquire new custmers. 1 Cnclusins f the training sessin Facilitated by the key-nte presentatin, the discussin amng participants dealt with indicatrs f a successful HR management plicy in cmpanies. The fllwing findings emerged: High satisfactin f the emplyees: The satisfactin f the emplyees can be measured by e.g. annual surveys. Lw degree f absence days f the emplyees: WIMTEC is a clear example fr successful HR plicy resulting in a lw degree f illness amng the emplyees with psitive impact n the firm s perfrmance. Lw degree f fluctuatin cmbined with lng perid f emplyment: In particular in the yung and innvative cmpanies the perid f emplyment is rather shrt than lng due t emplyment f new staff. Thus, rather than Training Sessin n Human Resurces Page 2 / 5

fcussing n and benchmarking the abslute perid, the fluctuatin rate prvides a better representatin. Existence f a bnus system: Successful emplyees shuld be rewarded by a bnus system in the frm f additinal payments r ther recgnitins (such as awards at fficial cmpany events, tickets fr events accrding t emplyee s chice, upgrade f cmpany car etc). The bnus system must be transparent and easy t understand fr all emplyees, in rder t assure emplyees acceptance and equal cnditins. The bnus system shuld clearly define what a successful emplyee is. E.g.: It is nt the emplyee prducing the highest number f prducts (as required by piecewrk) if prducts are nt requested by a custmer r by demanded f the ERP system (because in these cases higher prductin means waste). A successful emplyee is the emplyee wh cntributes t a mre efficient prductin f a prduct accrding the custmers demands. High Transparency: Management shuld fster high transparency in the cmpany regarding e.g. Current wrk lad Current perfrmance Absent grup/department/line staff Current quality prblems Measures t avid quality prblems Shrtages in material, staff Histrical data f perfrmance, quality, etc. This enables emplyees t take mre wn respnsibility, t facilitate their wrk and t increase perfrmance. Existence f a Suggestin System: In rder t imprve the cmpany s perfrmance and t stimulate staff, the entrepreneur shuld install a suggestin system in t invlve the wn staff in the imprvement prcess. This suggestins system shuld always be cmbined with a bnus system. Clear characteristics f the firms HR plicy: The clearer the specificatin f an individual firm s HR plicy is, the mre the entrepreneur/wners f the cmpany has/have really dealt with this tpic and is/are cmmitted t invlving the wn staff in the strategic cmpany develpment Imprvements in career: Imprvements in career can be manifld and a cmbinatin f single issues: respnsibility fr mre peple, higher salary, higher degree f (prduct r prcess) respnsibility, higher degree f freedm regarding wrking hurs and reprting prcedures, etc. T ften careers are Training Sessin n Human Resurces Page 3 / 5

put n a level with hierarchy in a cmpany. Hwever, cmpanies with a higher number f internal hierarchies are seldm thse that are als mre custmers riented (and thus mre successful). Offer f further educatin/training with acceptance by emplyees: The higher the educatin f the emplyees within a cmpany is, the mre respnsibility can be assigned t autnmus wrk grups which and the higher the perfrmance f the staff is. Assigning respnsibilities t wrking grups: If the pre-cnditins are fulfilled (e.g. qualificatin f grup members, transparency f wrking prcedures, gals and available resurces) an assignment f respnsibilities t wrking grups can increase the perfrmance f single emplyees. This dwn streaming f respnsibilities (nt t be mixed up with dwnsizing f staff!) mtivates grup members, leads t a higher level f staff cmmitment t the firm s bjectives and stimulates staff creativity. Accrding t surveys, each grup shuld cnsist f n mre than 7 peple, which allws the best wrkableness and highest perfrmance. Jb rtatin pprtunities: Jb rtatin pprtunities represent a frm f life lng learning. Jb rtatin creates better insight int cmplex prductin prcesses, increases understanding f all departments/manufacturing steps and qualifies the emplyee fr the hlistic prductin prcess. Thus, substitutin f staff in case f absence can be mre easily dne, wrking grups can be mre easily intrduced and the staff understands better the verall situatin f the cmpany. Reginal Identity f the cmpany / existence f reginal netwrks: Family wned and reginally rted cmpanies in particular are highly cmmitted t reginal tpics and t the reginal cmmunity, including scial and health issues. Experiences shw that in case f this reginal identity the entrepreneurs is much mre willing t supprt the reginal cmmunity and its wn emplyees. Thus, reginal identity f entrepreneurs can be cnsidered as an imprtant success factr when discussing supprt fr the reginal ecnmy fr the reginal scial and ecnmic system. 2 Highlights Effective Human Resurce Management is characterised by: Cnsidering emplyees as the number 1 ecnmic factr fr innvative cmpanies; Pssible influence f the emplyees n entrepreneurial decisins; Life-lng-learning as success factr f innvative cmpanies with brad skills and pprtunities f jb rtatin in the cmpany; Fstering emplyees self respnsibility nt nly with regard t the jb, but als fr her/his wn healthiness; Training Sessin n Human Resurces Page 4 / 5

Strng crprate culture lived by entrepreneur, management and emplyees. 3 References [EIS 2008] Maastricht Ecnmic and scial Research and training centre n Innvatin and Technlgy (UNU-MERIT); EUROPEAN INNOVATION SCOREBOARD 2008 COMPARATIVE ANALYSIS OF INNOVATION PERFORMANCE, PRO INNO EUROPE INNO METRICS; January 2009, http://www.prinneurpe.eu/eis2008/website/dcs/eis_2008_final_reprt.pdf [Phillips 2007], Jeffrey Phillips: The rle f HR in innvatin, June 2007, http://innvatenpurpse.blgspt.cm/2007/06/rle-f-hr-in-innvatin.html [WIMTEC 2009], WIMTEC (Elektrnische Steuerungs- und Meßgeräte GmbH: internet presence, http://www.wimtec.cm/, 2009 Training Sessin n Human Resurces Page 5 / 5