HUMAN CAPITAL MANAGEMENT

Materion boasts a global workforce of nearly 3,700 skilled professionals strategically positioned around the world. With approximately 15% in the Asia-Pacific region, 13% in Europe, and 72% in North America, our geographically diverse team brings a wealth of perspectives. The majority of our employees, comprising 78%, are engaged in manufacturing, driving our commitment to delivering high-quality products and solutions to meet customer demands.

At the core of our company's success lies a robust employee base, coupled with a steadfast dedication to delivering exceptional customer service and upholding unwavering values. In 2022, we renewed our commitment to these values, which form the bedrock of our organizational culture. These values encompass Safety, Ethics, Social Responsibility, Collaboration, and Diversity & Inclusion. In 2023, we are actively promoting and embodying these values through manager-led discussions, fostering a culture where they are not just words on paper but lived experiences within our organization.

Reporting to the CEO, Materion’s Chief Human Resource Officer (CHRO) is responsible for overseeing our programs that support the attraction, development, and retention of employees and managers to drive performance and support employee development. The CHRO provides regular updates to the Board of Directors.

ATTRACTING, RETAINING AND DEVELOPING A DIVERSE 21ST CENTURY WORKFORCE

Materion is dedicated to fostering a diverse and talented workforce that propels our company's growth. In the past four years, we have made substantial investments in a cutting-edge Human Capital Management technology platform. This enterprise-wide solution empowers our managers and employees with enhanced tools to attract, develop, and retain exceptional talent on a global scale, thereby driving our overall performance. As part of our ongoing transformation, we have streamlined and standardized numerous Human Capital Management practices. Our focus remains on expanding and leveraging our advanced HRIS system, Workday, to fortify our capabilities and strengthen our commitment to excellence.

Talent Attraction

At Materion, we prioritize the efficient and effective recruitment of top talent. To support U.S. recruitment, we have established a centralized in-house talent acquisition team. In 2022, this team took on responsibility for hiring all U.S. production talent, enhancing our recruitment capabilities. Throughout the year, we successfully onboarded over 1,000 new employees globally, promoting diversity within our U.S. talent pool and fostering growth through a remarkable 47% increase in employee referrals.

Nurturing the early career pipeline is a crucial aspect of our talent management strategy. In 2022, our campus recruiting program, now in its fourth year, expanded to include 28 summer interns, accompanied by the introduction of a capstone week at our corporate headquarters. Additionally, we are proud to invest in multiple rotational programs such as Finance, Engineering, and Technology & Innovation.

Talent Retention and Development

Operating in a highly competitive labor market, Materion recognizes the importance of attracting and retaining skilled professionals with a diverse set of technical and leadership skills. To achieve this, we offer a comprehensive benefits package that encompasses paid time-off, healthcare, disability, retirement plans, business travel accident insurance, life and accident insurance, medical travel insurance, holiday and leave entitlement, tuition assistance, and retiree-eligible healthcare counseling. Our commitment to our employees is reflected in recent enhancements to our dental, vision, critical illness, and accident coverages. Furthermore, we have introduced improved disability benefits and implemented paid family leave to support our employees during significant life events such as the birth or adoption of a child.

We are fully committed to identifying and developing the talents of our current leaders, our next generation of leaders, and our early campus hires - for whom we have rotational programs established. To that end, we continue to invest in programmatic learning and develop additional career ladders to guide employee/manager career development discussions.

We support the development of our employees in a variety of ways:

Feedback and career discussions with managers and mentors
Rotations and stretch assignments – including expatriate assignments
Targeting training, including leadership development programs, coaching, technical training and conferences
Apprenticeships programs - which we continue to expand globally

Materion is also a member of Women in Manufacturing, through which we sponsor education for female manufacturing talent. We also recognize our female leaders in science, technology, engineering, and math (STEM) by participating in the Manufacturing Institute’s Women Make America Awards. In 2022, we were pleased to have yet another Materion employee recognized as an award winner.

Leadership Model and Talent Development

At Materion, we have established a robust leadership model consisting of 10 competencies that encompass Leading the Business, Leading Others, and Leading Yourself. These competencies serve as a common performance language, providing clarity on what successful performance entails throughout our organization. They are applied to all salaried employees, ensuring 100% alignment from executives to front-line supervisors. Integrated into our recruiting, performance management, and employee development practices, these competencies enable us to foster a culture of excellence.

Talent Reviews and Succession Planning

To effectively monitor and cultivate our leadership bench, talent pipeline, and future successors for key senior roles, Materion conducts annual organization, talent, and succession planning reviews. These comprehensive evaluations involve our CEO and business unit and functional leaders, utilizing a range of tools and criteria, including performance calibration. These reviews were completed by 99% of our employees in 2022. They enable us to assess our leadership capabilities and plan for seamless transitions when necessary, ensuring our sustained growth and success.