2011 Annual Report - OTCIQ.com

Employees
HR Strategy
The knowledge of our employees is of decisive importance
for the implementation of E.ON’s cleaner & better energy
strategy. To promote the implementation of this strategy and
at the same time to enhance efficiency of our HR effort, we
continue to focus on four strategic HR task areas:
• Managing the Business
• Managing Resources
• Developing Talent
• Operational HR.
Systematically addressing these four areas will make an
important contribution towards achieving E.ON 2.0’s ambitious
targets.
Managing the Business
Following changes to the categories to which we assign our
executives, we revamped the main management and steering
mechanisms for executives. The incentive systems for all
executives, including Board of Management members, were
redesigned and standardized and now apply across the
entire E.ON Group.
Individual performance—especially the performance of
those functions that are central to an individual executive’s
role—receives increased weighting in the short-term incentive.
The company component of the incentive consists of our
key earnings metrics, EBITDA, ROACE, and WACC, thus setting
uniform objectives for all of our company’s executives. In the
future, we plan to use these metrics in the incentive systems
for our employees, as well.
Managing Resources
Employer Brand
An international study by Universum, a consulting firm,
ranked E.ON among Europe’s most popular employers. Our
performance is similar in other studies. For example, E.ON
was included in The Times Top 100 Graduate Employers in the
United Kingdom.
CEO Letter
E.ON Stock
Combined Group Management Report
Consolidated Financial Statements
Corporate Governance Report
Supervisory Board and Board of Management
Tables and Explanations
In a study conducted by Career magazine that assessed, from
the applicant’s perspective, the quality of the recruiting activities
of Germany’s 500 biggest companies, E.ON took first place.
Strategic HR Planning
Strategic HR planning is our primary tool for identifying, as
early as possible, external factors (such as the shortage of
professional staff on the labor market) and internal gaps in
mission-critical functions and for taking appropriate countermeasures.
It compares our future workforce with a forecast
of our long-term staffing needs derived from our corporate
strategy and the business development of individual units.
The gradual rollout of strategic HR planning at E.ON is supported
by IT tools that were developed for the entire E.ON
Group in accordance with a consistent method. The pilot rollout
at our network companies in Germany is already under
way, as are preparations for rolling out strategic HR planning
at other units.
Developing Talent
A key task for all managers is to continually foster the targeted
development and professional training of their employees.
The conscientious fulfillment of this task establishes the foundation
for successful performance management and ensures
that our organization proactively and foresightfully prepares
itself to meet the challenges of the future. The strategic
significance of talent management is increasing, particularly in
view of E.ON’s new strategy. As part of this effort, in 2011 we
revised our existing Group-wide development mechanisms and
aligned them more closely with the company’s needs.
In addition, we established talent boards (whose purpose is
to identify the top talents in our company) and agreed on
measures tailored to the needs of each job family. An example
of the latter is a high-potential program for the engineering
job family.
In 2011, we also redesigned our Group-wide Talent Pool program.
The program enables us to identify highly qualified and
ambitious managers and next-generation managers, to support
their development through multi-year programs, and to prepare
them for more senior roles.
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