Employees

GRI 401: Employment
Employee motivation

GRI 3-3
Management of material topics

A total of 7,608 employees work at Galenica providing professional services to the satisfaction of a wide range of customers. As a key employer in the Swiss healthcare market, Galenica makes an important contribution to the Swiss economy and supports sustainable labour and economic growth. For Galenica, the topic of employment (GRI 401) includes employment conditions and employee motivation. These influence the satisfaction and well-being of employees and, in turn, their efficiency, productivity and turnover. Furthermore, the emphasis on the corporate values (five key Galenica values), a contemporary and appreciative management culture and modern working models (life-domain balance) play an important role. Employee motivation is also closely linked to employee training and continuous education, which enables them to develop both professionally and personally. Galenica therefore summarises all issues relating to the employment of competent and motivated employees in terms of employee motivation and development.

For more information on the specific employee topics, please refer to Training and education (GRI 404), Diversity and equal opportunity (GRI 405), Occupational health and safety (GRI 403), Retention of qualified employees (own topic).

The five key values

The five key values provide support for employees in all their work and form the basis for the joint understanding of the way in which they cooperate and interact with one another.

• We participate with passion.
• We act as entrepreneurs.
• We build trust.
• We show respect.
• Together we are stronger.

Responsibilities and strategy

The Service Unit Human Resources (HR) is responsible for personnel management and supports the respective companies with their HR Business Partners in managing their employees. Galenica revised its HR strategy in 2022. The strategic focus areas include advice and coaching, the promotion of young talent and personnel development, as well as occupational health and diversity.

Personnel Policy, Personnel Regulations and Working Time Regulations

The Personnel Policy of the Galenica Group is based on the above-mentioned corporate values and sets out the binding guidelines for human resources management (HRM). These guidelines apply to all companies within the Group. Galenica’s Personnel Policy discusses how it, as an employer, wishes to treat its employees and what Galenica expects from its employees. The Galenica Group’s Personnel Regulations and Working Time Regulations, in turn, are aimed at all employees and contain information and rules regarding working hours, salaries and employee insurance.

Balancing private life and work

Galenica offers flexible working time models to provide a better work-life balance for its employees. According to the guidelines on homeworking, employees also have the option of working from home up to 100% of the time, depending on their activity. Part-time work is also common, particularly in the Service Unit Pharmacies, and co-management teams are also possible in the pharmacies. Furthermore, female employees can extend their maternity leave with unpaid leave and men receive paternity leave of ten days, which is fully paid, in contrast to the statutory obligation.

Opinio employee survey

The Opinio employee survey has a long tradition at Galenica. Since 2020, it has been held annually rather than every three years, thus enabling Galenica to react more quickly and in a more targeted manner to changes in employee satisfaction and motivation. In 2022, 71% of all employees participated in the survey. The response rate is therefore higher than the 2021 survey. With a Group-wide score of 74 out of 100 possible points, it is pleasing to see that employee motivation increased compared to the previous year.

Promote interaction and commitment among employees

The staff committees are important points of contact for the concerns of all employees that are of general interest and are to be discussed with the Executive Committee. Conversely, the Executive Committee consults the staff committee or works committee on relevant personnel matters that concern all or most employees, such as conditions of employment. The works committee is made up of the chairs of all the local staff committees. Twice a year, a meeting takes place between the works committee, the Group-wide employee representatives, a representative of the Executive Committee and HR management. It addresses topics that go beyond the local concerns of the staff committees in the individual business areas. The staff committees generally meet several times per year and are also informed about the topics and resolutions of the works committee meetings.

In 2021, a team of “Change Ninjas” was created. They are actively shaping the transformation of the Galenica Group and supporting the Service Units in their transformation plans.

Various communication platforms

Direct, personal interaction between employees from all language regions of Switzerland and a total of 89 countries lies at the heart of Galenica’s communication efforts, with the aim of actively promoting knowledge exchange and cooperation. The various physical and digital information events and management meetings within the business sectors and companies are a good way of ensuring that this happens. Information on current topics from all areas of the company is provided at events and via the intranet, G-Net.

Twice a year, all employees and retired employees also receive the printed employee magazine Spot, which is delivered to their homes. This enables their partners and family members to gain an insight into developments in the Galenica world too.

Employee profit-sharing programme

Galenica shares the success of the company with all employees. The bonus is calculated based on the Group result compared with the previous year. Every year, employees of Galenica living in Switzerland have the opportunity to purchase between 20 and 80 Galenica shares at a preferential price, regardless of their employment level. In 2022, 19.2% of employees participated in the programme (previous year: 19.7%). These shares are blocked for three years after the date of purchase.

For members of Senior Management (SMT) and Management (MT), the profit share is included proportionately in the annual bonus. This is dependent on attaining quantitative and qualitative targets. The share-based remuneration programme LTI (see Remuneration report) for members of the Executive Committee and certain members of the SMT is geared towards long-term performance, whereby remuneration is withheld for a period of three years. In 2022, Galenica introduced joint bonus-related targets for the Executive Committee, members of the Senior Management and Management, which will apply from 2023. These relate to customer and employee satisfaction. These new objectives are intended to strengthen the network philosophy and the focus on social objectives.

Employee benefit plans

The Galenica Pension Fund covers the risks and economic consequences of old age, disability and death according to the specifications of the Swiss Federal Act on Occupational Old Age, Survivors' and Invalidity Pension Provision (OPA). Like the previous foundations, it is legally, organisationally and financially independent of Galenica. The pension fund is managed according to the defined contribution principle. This is usually financed by contributions from the employee and the employer. The contributions made by employer and employee are accrued into individual savings capital for each employee. The savings capital is usually paid out as a lump sum or converted into an annuity on reaching statutory retirement age. In cases of termination of employment, the savings are transferred as vested benefits. The financial statements of the pension fund provide a true and fair view of the financial position, the results of operations and cash flow. The accounting and valuation principles of the Swiss pension schemes correspond to the Ordinance on Occupational Old Age, Survivors' and Invalidity Pension Provision (OPO 2) and the Swiss GAAP FER accounting and reporting recommendations. Assets and liabilities are recognised on the basis of the financial situation of the pension fund as of the balance sheet date only.

Due to increasing life expectancy and a drop in interest received, the conversion and contribution rates were adjusted as of 1 January 2022.

Evaluation of the management approach and measures

• Key figures: key personnel figures, such as employee turnover, are collected from across the Group and analysed every six months.
• Employee satisfaction and motivation: the satisfaction and motivation of employees is evaluated as part of the annual employee survey. The Executive Committee examines the results, particularly the critical points, and defines effective measures based on their findings.

GRI 401-1
New employee hires and employee turnover

Galenica does not provide a breakdown of newly hired employees by region. Furthermore, due to the different personnel systems, there is no breakdown of employee turnover by age group, gender or region.

GRI 403: Safety and health in the workplace

GRI 3-3, GRI 403-1 to 403-7
Management of material topics

It goes without saying that Galenica attaches great importance to the physical and mental health of its employees. The topic covers the effects of business activities on the physical and mental well-being of all employees. There is an increased risk of accidents, particularly in the Service Units Wholesale & Logistics and Pharmacies, which is why occupational health and safety play such a key role in these areas. Galenica has a duty to prevent any violation of the physical or psychological integrity of its employees in the workplace. This keeps both personal suffering and costs to a minimum. Galenica also strives to identify potential health risks at an early stage and ensure a swift return to work after an illness or accident. Galenica thus makes a significant contribution to the health and well-being of its employees.

Health and safety precautions for employees

Galenica puts in place measures to protect employee health and maintain safety in the workplace in accordance with the directives of the Federal Coordination Commission for Occupational Safety (FCOS). In addition, all companies have an occupational health management (OHM) system. Galenica also uses a preventive case management system in order to identify potential health risks for employees at an early stage and take appropriate measures. This tool is deployed within the first 30 days of absence. The top priority is to ensure that the employee can return to work quickly following an illness or accident. Galenica is working with the organisations Movis and Carelink to improve health protection. Carelink offers emergency psychological support in crisis situations, for example following a robbery of a pharmacy. Movis provides support for employees concerning the protection of their personal integrity as well as stress management and burnout prevention. The Galenica Group also offers all employees an annual flu vaccination.

Due to the increased risk of accidents, the companies Alloga and Galexis also have a systematic absence management system, which is part of the OHM system. Discussions are held with employees in the event of prolonged or frequent absences, and contact is maintained in the case of a return to work after a long absence. Alloga and Galexis also organise training sessions together with Suva to avoid operational accidents. In 2022, Galexis introduced an accident barometer at its Niederbipp and Lausanne-Ecublens locations in order to raise awareness among employees and prevent occupational accidents. An accident barometer is also to be introduced at Alloga in 2023.

The Service Units Pharmacies, Healthcare and Wholesale & Logistics have appointed occupational safety officers. Each Galenica Group site also has fire protection officers who are responsible for fire safety and evacuations, as well as a first aid team that organises first aid.

The Code of Conduct for Suppliers of the Galenica Group states that suppliers must ensure a safe and healthy working environment and guarantee the protection of their employees in accordance with all applicable health and safety regulations.

Evaluation of the management approach and measures

• Key figures: employee absences are regularly analysed by the Service Unit HR and appropriate measures are taken.
• Safety audit: external safety consultants regularly carry out safety audits at the Service Unit Wholesale & Logistics.
• At Galexis, internal safety audits (inspections) are also carried out on a monthly basis with the corresponding department heads, and measures to improve occupational safety are identified and documented.

GRI 403-9
Work-related injuries

Galenica discloses the number of occupational and non-occupational accidents and the absence rate of work-related injuries in the key social figures. There were no work-related fatalities in the reporting year.

GRI 403-10
Work-related ill health

Galenica discloses the number of cases of illness, hours of absence due to illness and the absence rate in the key social figures. The number of deaths caused by work-related illnesses is not recorded.

GRI 404: Training and education
Employee development

GRI 3-3
Management of material topics

When it comes to logistics and the sale of pharmaceuticals, employees and their specialist knowledge play a crucial role. As a successful company, Galenica wants to develop with the market and set trends. The adaptability of the Galenica Group is based on the commitment and team spirit of its entire workforce. In order to maintain this, Galenica provides continuous support for the personal and professional development of its employees. The topic of training and education encompasses the retention and development of existing employees by means of training and education as well as the training of apprentices.

Promote knowledge and interaction among employees

Continuous personnel development and the management work of the future are at the heart of the Group-wide personnel development programme Move. Move represents agility and flexibility and therefore reflects the range of employee development options available. This comprises modules in the field of professional training as well as leadership and personal development on various levels. In 2022, Galenica conducted 37 modules with 481 employees. New employees are invited to an induction day (Move 1) where the history, culture and strategy of the Galenica Group and its companies are explained. The aim of the two-year Talent Mentoring Programme is to develop high-performing employees in their current role or to introduce them to a higher-level position in order to strengthen internal succession planning in the medium to long term. Participants (mentees) are given a platform where they can exchange views and experience across the business sectors. At the same time, the knowledge and skills of experienced managers are used to further develop the next generation of talented employees. Each mentee is assigned a personal mentor. In 2022, 14 employees took part in the Talent Mentoring Programme.

As part of the Junior Talent Management Programme of the Service Unit Pharmacies, pharmacy assistants can develop their own project for a year. They are supported by mentors and trained in project management.

Education in pharmacies

Galenica also supports employees with external training by giving them financial aid and/or allowing them the time, provided that the training is related to their current role and offers added value for the company and the employees. The Service Unit Pharmacies, for example, offers the CAS course “Management for Pharmacists” in cooperation with the University of Basel. 13 employees successfully completed the CAS course in 2022.

The Service Unit Pharmacies also covers the costs of further training to become a “Specialist Pharmacist in Retail Pharmacy” (FPH certification in Retail Pharmacy). Based on the revision of the Medical Profession Act (MedPA), qualified pharmacists are required to obtain this federal qualification if they want to work as a responsible person in a pharmacy. Galenica is committed to ensuring that as many pharmacists as possible are able to complete this training. In 2022, 41 employees completed the course.

In light of the revision of MedPA, Galenica has also developed the FPH certificate of competence in patient history in primary care as further training together with an external provider. This further training increases the skills of pharmacists in basic healthcare, enabling them to diagnose minor illnesses and dispense an appropriate prescription drug. In 2022, 242 pharmacists already had the qualification and 43 were undergoing training.

Additional training opportunities in the pharmacies include the FPH certificate of proficiency in vaccination, specific training courses on rapid antigen tests and an e-learning module on the use of algorithms and software in the field of primary care.

Training apprentices

Galenica is making a strong commitment to the next generation of qualified employees: in 2022, the Group trained 838 apprentices – 749 young women and 89 young men – at its companies. Of these, 278 completed their apprenticeships, many with bravura. Having qualified, 143 apprentices have since become Group employees.

Evaluation of the management approach and measures

• Performance reviews: the performance of employees is evaluated and discussed at annual performance reviews. Education also plays a key role in this.

GRI 404-3
Percentage of employees receiving regular performance and career development reviews

All employees with a permanent contract receive a regular review of their performance and professional development as part of the annual performance reviews. The number of employees, broken down by type of employment contract, is shown in GRI 2-7.

GRI 405: Diversity and equal opportunity
Diversity and equal opportunity

GRI 3-3
Management of material topics

The theme of diversity and equal opportunity involves issues of equality and equal treatment with regard to age, origin, gender and other diversity indicators. In addition to equal pay for men and women, diversity also includes the integration of people with disabilities into the work process. The Galenica Group is committed to diversity and brings together people from 89 countries and all age groups. Three-quarters of employees are women. Galenica does not tolerate discrimination or harassment and promotes equal opportunities for all. As a result, employees feel appreciated and acknowledged. The diversity of employees also benefits the innovative capacity, success and attractiveness of the company as an employer. Diversity and equality also have a positive impact on society at large by promoting social stability and cohesion and thus supporting sustainable development.

Code of Conduct

All employees of the Galenica Group have the right to be treated fairly, politely and respectfully by line managers, employees, colleagues, customer representatives and business partners. No one may be harassed, discriminated against or disadvantaged on the grounds of race, skin colour, religion, ideology, political opinion, nationality, descent, disability, gender, age or any other relevant criterion. These principles are set out in the Code of Conduct of the Galenica Group.

Equal pay

In accordance with the requirements of the Federal Act on Gender Equality (GEA), Galenica carried out an equal pay analysis for companies with more than 100 employees in 2021. The salaries of the Galenica Group were analysed using the Logib method (the federal government’s standard analysis tool) on the basis of April 2021. The analysis showed that an overwhelming majority of employees enjoyed equal pay. Equal pay is a major concern for Galenica. Accordingly, targeted measures were implemented as of 1 January 2023.

The statutory formal review of the equal pay analysis was carried out by the statutory auditor Ernst & Young Ltd. According to their reports, the analyses comply with legal requirements in all respects.

To ensure equal pay for men and women, the Galenica Group uses benchmarks when reviewing salaries.

Protection of personal integrity in the workplace

Bullying, discrimination and sexual harassment are three examples of problematic behaviour that can lead to violations of personal integrity. A violation of personal integrity in the workplace affects the well-being of the person concerned and puts their health and ability to work well with others within the company at risk. As an employer, Galenica is legally obliged to protect the privacy of its employees (Art. 328 CO, Art. 6(1) EmpA). The Galenica Group does not tolerate any violations of personal integrity; it prohibits all forms of bullying, sexual harassment, discrimination, violence and threats, and is committed to non-violent and harassment-free treatment at all levels of the hierarchy. Every year, however, employees report isolated cases that are subsequently investigated. In order to improve the protection of the personal integrity of employees, they also have the option of contacting an external advisory centre if necessary.

Evaluation of the management approach and measures

• Review of equal pay: Galenica regularly checks the status of equal pay for men and women and takes measures if necessary.

GRI 405-1
Diversity of governance bodies and employees

Own material topic
Retention of qualified employees

GRI 3-3
Management of material topics

In Switzerland, the retention of qualified employees represents a major challenge, particularly in the healthcare professions and IT. In addition to the scarcity of employees, the requirements in terms of training and skills are constantly increasing. For Galenica, retaining specialist staff plays a key role, particularly in the Service Unit Pharmacies, as pharmacies need to be managed by good, qualified staff. As the Swiss healthcare system becomes increasingly digitalised, Galenica will be more dependent on IT and e-commerce professionals in the future. Galenica is committed to retaining qualified employees, including recruiting them and keeping them within the company and supporting them outside the company. In doing this, Galenica supports sustainable labour and economic growth in Switzerland.

Recruitment strategy to retain qualified employees

Galenica reviews its recruitment activities on an ongoing basis and adapts to the constantly changing conditions in the labour market. Galenica’s recruitment strategy includes measures relating to the company’s image as an employer, its positioning and university marketing for students. Galenica aims to make contact with students while they are still at university and encourage them to pursue a career within the Galenica Group.

In 2022, Galenica initiated a skills shortage task force and implemented a large number of measures relating to the Pharmacies segment in particular. Among other things, Galenica has expanded the areas of responsibility of pharmacy assistants, raised their minimum wage and further optimised the recruitment process.

Evaluation of the management approach and measures

• Key figures: key personnel figures (such as time-to-hire) relating to recruitment are collected on a regular basis in order to monitor the implementation of the recruitment strategy and the achievement of targets.

Own indicator
Time-to-hire

The time-to-hire for vacant IT and pharmacy positions was on average around 65 days for IT positions and 61 days for pharmacy positions in the reporting year.