Fair and Appreciative Remuneration
Vonovia treats all of its employees equally across the Group. Remuneration is an important factor in this context and has an impact on employee satisfaction. This indicator was included in our Sustainability Performance Index (SPI) in the year under review. The SPI incorporates environmental, social and governance-related targets. Since 2021, it has been a factor in the long-term remuneration of the Management Board and the first level of management. Employees and managers have an opportunity to set targets in annual performance appraisals. These targets have an impact on the performance-related variable remuneration component, particularly for employees in commercial roles. All employees benefit from the employee profit-sharing scheme, which is based on the extent to which the Group achieves its targets.
In 2020, we began the process of harmonizing various works agreements on special employee benefits in order to strengthen equal opportunities and a sense of solidarity within the company. We continued these measures and made progress during the year under review. All areas of the Group in Germany now have access to the employee share program, special holiday schemes and tax-free employer grants for capital formation purposes. We also introduced a new and extremely attractive employee retirement benefit plan during the year under review. This plan is available to all employees in Germany. Vonovia makes contributions to this retirement plan which go well beyond the requirements of the Company Pension Scheme Contributions Act (Betriebsrentenstärkungsgesetz). This is yet another area in which we live out our social responsibility to our employees.
The employee share program, for example, has been rolled out in Austria. The HR department in Austria prepares a mandatory biennial salary report for the works council to ensure that all employees are treated equally regardless of their gender, age or ethnicity. The HR department also provides the works council with a salary list on a monthly basis so that any inequalities can be dealt with swiftly.
Current figures show that there is a gender pay gap at Vonovia, with female employees paid more than male employees (see Social). This is due to the higher proportion of men in the technical occupations and a more balanced gender ratio in commercial roles. Group-wide grading has not yet been implemented due to the integration process of Deutsche Wohnen.