Miele-Geschäftsführerin Steinhage: „Auf einer Marke dürfen Sie sich nicht ausruhen“

Thank you very much.

Until 15 years ago I rode a lot, but it's time-intensive. It's a wonderful hobby. In Westphalia you can't avoid equestrian sports. I enjoyed training young horses and presenting them in competitions—dressage, jumping, eventing, a broad spectrum.

Bertelsmann is very diverse with different divisions. At Miele, we have a strong brand. We ensure all products speak a common language and provide a customer experience. The concentration on one brand is different from Bertelsmann's diverse target groups.

Honestly, it was great. It was my first holistic HR role. I learned about challenges and improved my commercial knowledge. It was a good education. Now to employer branding and skilled labor—people want salary and to work less. We'll come to Generation Z later.

It's transferable regarding heterogeneity. At Miele we have many different work worlds due to our value chain depth. Digitalization and sustainability are trends everywhere, so the profiles are similar, which worsens the skilled labor shortage. Miele was founded in 1899 as a centrifuge factory, later washing machines, briefly cars, etc. Today we have 11,200 employees in Germany, 22,300 total, revenue up 12% to 5.4 billion euros. The secret is engineering and pioneering spirit, focusing on premium and sustainability.

We can't rest on the brand. We have flexible models—bring work to people. It's a cultural change. We improve visibility through networks with universities and startups. We do 'housekeeping'—improve recruiting processes and develop internal talent. We have a non-elitist talent management approach.

We have a shortage of employees overall, not just skilled workers. It's a quantitative issue. We need 400,000 qualified immigrants per year. The new regulations sound good, but I'll believe it when I see it. We need integration with housing, childcare. We provide company apartments and a daycare center in Gütersloh.

We focus on internal talents and mobility between our international sites. We have cross-border collaborations. Digitalization helped with global meetings. About half our workforce can do home office or mobile work. But we need to maintain innovation through chance encounters.

Simply creating moments where people meet each other. And creativity and loyalty are already declining a bit. You lose yourself, especially when chance encounters are no longer there, the spontaneous conversation, the spontaneous encounter. And I totally agree with him when he experienced that when the COVID period was over. We recruited a lot during that time because we also experienced very good economic conditions. And then when we came back to the office more or had events, we really noticed, wow, it's like we're disruptively bringing together two groups: those who haven't seen each other in ages but have known each other for 20 years, and those who are new and say, 'I've been with this company for a year and a half and now I'm having my first contact.' And we have to make sure we support that, also support the managers, because I think that's a huge challenge. We've now jumped a bit into home office.

What we have, especially in the R&D environment, everything related to our developers, is that we try to win people for specific projects again. Not across the board, but for individual elements it makes total sense. I also think that's a topic, it's not a phenomenon. When we look at demographic change, we have this cliff we're approaching where all the baby boomers are retiring. We're paying close attention to that because we have a lot of expertise, especially in development departments, who have incredibly valuable knowledge. The question for us in the next three, four, five years is how do we secure that knowledge or create a smooth transition so we don't have a break where suddenly the old ones leave and the new ones are there and have to learn. That's a big challenge.

I would say we sense it too, but fortunately not to the extent you see in other companies or industries. You have to be fair. I think whoever chooses Miele ultimately makes a commitment to the company's values. Many come because they say it's a family-run company, we're not listed on the stock exchange, we have points like sustainability, quality, many social benefits. We make it very difficult for people to leave. But at the same time, we have things like e-bikes, which are special, but a fantastic range. The classics are of course the pension scheme, we have the company health insurance fund, we have all the programs. The catalog is relatively long, I don't want to bore anyone. Yoga courses, people let off steam. So we're really doing well. What always fascinated me, what really excited me, were things like the dental foundation, where employees get a subsidy for dental prosthetics. At first I was a bit taken aback because I thought it was a bit quirky, but honestly, we have to think about what occupies people and where we can support them. But it's not something we introduced yesterday. I think the real innovation where we try, since you asked how we bind people, is flexible working. We have the whole topic of international assignments, managed and supported, so that people who say they'd like to gain other experiences can do so. I say no problem, Miele in Amsterdam, we have opportunities to exchange and redesign work environments on site for those who prefer a creative environment, and honestly, right down to really good food in the canteen. It's something.

I'd like to clarify a bit. The topic itself didn't really surprise me; there are enough books saying you can work four hours a week. What personally surprised me was how blanket the discussion was and who all joined those statements. Why do I say that? I think it's a very comprehensive topic where you have to look at for whom and for which industry it actually brings relief, if there is very physical work or psychologically stressful work. At the same time, work means value creation, means prosperity, for each individual and for a company, because if everyone contributes, that's job security and prosperity, but also for society because we all pay our contributions. So I've thought a bit about what we're doing. A colleague said something I found quite funny: if you're in a job you don't like or a toxic environment, a four-day week won't make you happy either. So I don't want to just bluntly oppose it; I think we need a bit more differentiation. And of course, as a company with a labor shortage, you look at it and say, where is the next supply crisis, what are we doing? But I think we need to keep the dialogue and not just hammer from one side or the other.

I think it's a reaction to what they experienced from previous generations. If we look at how work was defined historically, it's very interesting what curve we're coming from, what was important, the motto of working a lot, making a career through presence in corporations, while family suffered. I think we have to put that in context. Of course, there is a generation that says they don't want that. I think we can accept that first. The question is what that means in the expression of one's own role. I notice a bit that we have to be careful: it's not just this generation; it's more widespread. I think this desire is more widespread, simply to look at what it means. I think it's also been reinforced by the crisis years we've all experienced, which were demanding not only professionally but also privately. We're all still a bit hungover. A lot has happened. So I think we shouldn't say too much that it's a problem of those born then, and please not always 'it's your problem.' It's broader. We have to see how we maintain performance and how we motivate. Fairly, sometimes as a company you look at exactly this situation. We have these conversations where someone very quickly makes demands or says they don't like something and want something else. I think it's important for us to react authentically, to say what the expectations are, what we can fulfill and what we can't. For example, Miele is a manufacturing company; we have tasks where we have to work in teams. In another context, with home office and mobile work, I say home office is team play. I can't say it doesn't suit me now, I'll stay home, when the rest of the team says let's come together and discuss things. That's the balance you have to have: there are your own interests, and as I said, work is team play. It's becoming more complex because you have to bring together very different partners. It's important to say what works and what doesn't.

China continues to be an important market, both as a consumer market and of course we also have a production site there. So it's a topic we definitely look into. The percentage of total revenue from China is less than ten percent. But it's still important, it's growing, and Miele is a brand in China. Keyword: where do we position ourselves and where do we have potential? That's why, in my opinion, we can't simply let China go. It's a large consumer market; we have potential there. For us, it's important to see how we balance that. You look at your supply chain: where do we order which materials, where do we have certain risks? It's about resilience in the supply chain, classic. We also look at working conditions on site, where we fortunately have had SA8000 standards for many years. So there are many topics we really look into. But we must not forget: things are shifting in the world, but I don't think there will be deglobalization. There will certainly be a shift in certain partnerships that may reposition themselves on an equal footing. But we are so interconnected. From what I know of German industry, we have to be careful. The federal government also says you can't just close the door. What would an extreme scenario, like a war in Taiwan with subsequent sanctions from the Western world, mean for a company like Miele? They have a plant there where vacuum cleaners are produced for the world market, not just the Chinese market. Would that mean we run out of vacuum cleaners? Or what would it mean? You couldn't deliver anymore. So the question is: do you play through such scenarios in management?

What we do is we look at what we can be immediately clear about. If it's supply chain issues, but honestly, do we really know what it means if a crisis hotspot actually breaks out? I think then we have completely different problems. That means Miele is not afraid of having to choose one day between the Chinese or American market, which some medium-sized companies actually do. They have a high revenue share in both markets and say it was an absurd question five years ago, but they play it through. What do you think when the Americans say you have to choose one of the two markets? I can't say today. I think we have to be careful. What's interesting, I'll be honest, is that we're all looking at the world and realizing that the rules we once learned, that we thought were the world order, whether supply chains or geopolitical topics, certain mirror rules in the world, they're no longer there. That's fascinating. And then we have new and old crises. Small example, a bit off topic: the energy crisis. I was born in '77, keyword oil crisis. When you studied business administration, it was about human capital and finance; energy was just there. And now we're in a phase where energy supply in Germany is a huge topic, along with the corresponding costs, energy security. And suddenly we stand there and say, oh, what's going on here? I find it fascinating that we now realize that things we thought were secure are suddenly options again. And that's how it is with this topic too.

We are looking at it. Fortunately, with our production footprint and our revenue footprint, we are quite well balanced. So that part is okay for now; we don't have this 'we only produce in Germany, let's see what happens' situation. What we notice, and that worries us a bit, is that Miele still sees itself as a medium-sized company. We still feel like a medium-sized company. But we are also aware that the entire network of suppliers includes companies that are world market leaders, top in certain areas. And then I ask myself, keyword skilled labor shortage, what happens when their machine operators leave? We have to ensure that the entire ecosystem in Germany works. And if we then discuss a four-day week or look at how consumption, energy prices, and so on develop, I think we really have to be careful in Germany that we, especially the medium-sized companies that support us and also support Miele, create framework conditions again so that they can stay. That's the big fear: that these hidden champions, these world market leaders, will look at other locations. Many are already investing in the USA. But the question is: is it just a growth strategy or a departure from the German location? So what would be your wish, what can be done concretely to improve?

Honestly, there are the classic topics. We need energy security and the corresponding prices again. That's one topic. We talked about immigration. The numbers I saw were 400,000, you mentioned. What I saw expected with the changes in the immigration law was 60,000. So that's a hypothesis. How do we reduce the skilled worker or employee shortage in Germany so that our hidden champions, as well as Miele itself, are well supplied?

Honestly, it's conviction. It's the thing with the family. You said earlier we've been in business for so long. Sustainability is actually in the DNA. And it's interesting that it's now getting a boost, being positioned differently, becoming much more important. Sustainability is no longer just about welfare, doing it for image or because we're nice. In my view, it will become a competitive factor. If you not only produce sustainably but also have products with a low footprint, that will be a competitive factor. There's simply too much scarcity, whether in raw materials, geopolitical disruptions, prices, and so on. It's conviction, I would say, at Miele.

The question we have is, yes, we are convinced, otherwise we wouldn't do it. It's sometimes funny when you reserve green steel quotas for a steel plant that doesn't exist yet. That's sometimes the case with investment decisions, very interesting. The challenge will be, now we come back to the customer: to what extent are customers willing to accept that and pay for it, or able to pay for it? The second thing we have is we look very strongly at Europe, keyword green deal. I can only tell you, the regulation coming our way means we should definitely continue to invest in sustainability.

On Miele's space agenda is a washing machine that, in principle, ideally works without water. So I just made that up. And you can ask a question to Daniel Arnold, the founder of Deutsche Reihenhaus AG, a company specialized in building row house settlements in Germany. What would you ask them?

I would be interested in the topic of construction, circularity. I come from the sustainability topic. What are the two things we need to do differently to really become circular in construction, to think through the entire cycle?