Satisfied and motivated personnel aim for top results

High standards of HR management help our committed, motivated and professional personnel to further develop their competence, support their well-being at work and promote equal treatment. We want to engage our employees around the world in building our company's sustainable success together.

Supervisors implement our company and leadership culture into the everyday work of our personnel in a natural and consistent way. Good HR management provides the tools that are necessary for good supervisor work and for improving leadership skills. Skilled, innovative and relentless personnel are our company’s most important resource.

We continued implementing our leadership culture

We have made systematic efforts towards improving leadership in our company, as successful leadership is one of our most critical success factors. As part of this theme, we started conducting international supervisor coaching in 2016 with the aim of better leadership globally, engaging key personnel and their career development. We also planned a digital game environment for all personnel. It enables us to improve our working community and safety culture in the future.

Leadership principles grow out of our values

Our leadership principles are a practical tool for supervisors throughout the group and they establish a basis for improving and tracking leadership. This way, all supervisors know how we are assessing supervisor work, how they should improve their own supervisor work and how they should train their own team. Creating a coherent company and leadership culture starts with ensuring consistent leadership and supervisor work that meets our company’s needs. Ultimately, however, it is everyone’s business.

  • Lead by example Be a role model who promotes the Hakkapeliitta culture! 
  • Develop your people Seek and offer your team opportunities to develop! 
  • Show the way forward Set engaging goals and support your team’s will to win! 
  • Encourage continuous improvement Contribute to an innovative and open atmosphere! 
  • Take responsibility for quality and results Inspire your team towards an entrepreneurial mindset!

Leader Camp builds future leadersLeader Camp kehittää tulevaisuuden johtajia

Our competent personnel and good well-being at work form one of the cornerstones of our success. We, therefore, find it important to invest in a consistent leadership culture throughout the group. In 2016, near the end of implementing our leadership principles, we globally started our internal Leader Camp programme. The objective of Leader Camp is to globally strengthen a consistent leadership culture and to identify and nurture the future top leaders in our company.

Leader Camp launched in the spring, and we invited some 30 people from Vianor, our sales companies and our facilities in Nokia and Vsevolozhsk. In the first event, the participants got to share their best practices and views on challenging situations with the Hakkapeliitta Leader game. They also heard our business review and worked together on creating a vision for the supply chain organisation. For homework, everyone was assigned project work on our Must Win roadmap. In the next meeting, they presented the results to the management team. The programme’s main results included strengthening our consistent leadership culture and the ever important networking within the group.

People Reviews

Our performance appraisals, the People Reviews, shape our direction in the near future and set concrete targets for daily work based on the company strategy. People Reviews are an important part of immediate supervisor work. We revised our People Review model in 2015 so that we can track and support our employees’ performance and development better than before.

All employees attend at least one People Review per year. Our office personnel in Nokia and Russia, however, attend a minimum of two People Reviews per year, one of which can be a team session. The People Reviews include all in-house personnel of the Nokian Tyres group regardless of gender or employee group.

The People Reviews look at overall performance in line with our values, assess how well the previous goals have been reached, set new goals for the coming year and discuss the prerequisites for success and professional development needs in terms of the set goals and the company’s future needs. We also assess performance compared to the previous year’s goals. The People Reviews are recorded in an electronic tool and reported to the management every six months.

People Reviews (realisation/target, %)

People Reviews (realisation/target, %)
People reviews implementation %
Nokian Tyres, Nokia 97.4%
Nokian Tyres, Vsevolozhsk 100.0%
Vianor 69.8%
Sales companies 75.1%
Nokian Tyres Group 86.0%

Developing competence for the future

We develop the competence of our personnel in a strategic and proactive manner that addresses future needs. People Reviews are essential for competence development, as they include identifying personal career plans, strengths and development needs as well as preparing a development plan together with the supervisor. The development of leadership skills forms an important part of the competence development plan, which is supported by the 360 degree assessments of all supervisors in the group.

Most of the competence development comes from on-the-job learning in various projects, problem solving, job rotation and new duties. One essential tool for competence development is our international Hakkapeliitta eAcademy online portal, whose services are accessible by our retailers and partners in addition to our personnel. We continually work on the content of Hakkapeliitta eAcademy: currently, we offer some 70 courses in up to 20 different languages. Our eLearning resources range from internal sustainability and insider courses to product training and tyre fitment courses.

360 degree assessments for supporting leadership development

We carry 360 degree supervisor assessments in our group, primarily as a tool for supervisors for improving their own leadership skills. The assessment is based on our leadership principles, and it forms a significant part of our global leadership development efforts. An individual’s assessment comprises feedback from his or her own supervisors, team and colleagues.

Each supervisor receives personal feedback, which is used as the basis for personal improvement measures. Furthermore, we expect everyone to discuss the improvement measures with their own supervisor, for example during their People Review. Individual units have gone through department-level summaries of the feedback with their HR representative. These discussions are used for planning leadership development for the unit supervisors.

In 2016, 360 degree assessments were completed in Vianor. In Russia, the assessment is carried out every other year. Systematic utilisation of 360 degree assessments is part of our leadership development.

Drive! – Making a difference

The Drive! personnel survey is a tool for identifying specific strengths and development needs that help us improve our organisation and company. In the future, we will conduct the survey annually. The purpose of the survey is to drive employee commitment. It is built around the concept of engagement, which indicates the employees’ attitude towards the organisation and the values it represents.

With a nearly 90% response rate, the 2016 Drive! personnel survey gives a comprehensive overview of the positive things and development needs in the group as well as in individual units. In our group action plan, one common denominator was internationalisation – enabling truly consistent operations in various aspects. The basis of our development efforts is a flexible and efficient organisation that promotes employee well-being and contributes to an open and healthy atmosphere.

Strengths

The company’s recent developments, the high quality of our products and services and efficient decision making were mainly mentioned as positive things in the 2016 survey. The majority of the group also found our leadership culture and employer brand to be positive. Succeeding in these areas supports employee commitment especially well.

The group’s personnel believe that our decision making is efficient, as is our unit and department-level work. Similarly, in the majority of the group, department-level goals were considered to be clear and the employees know what is expected of them. Our familiarisation with new tasks is also on a good level. Our personnel also feel that Nokian Tyres provides good opportunities to affect the decision making, improve our operations and even share differing opinions with their supervisor.

Development needs

After the previous survey, we implemented measures for reducing rumours and improving the communication of the company strategy and view of the future. We saw some good results and managed to improve our score in these areas. In the 2016 Drive! survey, safety, consistent international processes and the leadership and company culture were highlighted as the most important development needs throughout the whole group. Preparing improvements and implementing them throughout the group is a long-term effort, and we started effective work on all selected development needs. We will track the results in the 2017 survey.

Inventiveness, encouragement and equal treatment are good for motivation

Our employees’ competence, inventiveness, courage and relentlessness form an important factor in building our success. Consistent and equal treatment of personnel is also important to us. A fair work community is a motivating factor that contributes to our profitability and competitiveness.

Employee well-being and equal treatment are important to our operations, and we have a long history in their development. Our ethical guidelines comprise several principles regarding the treatment of our personnel, and we promote equality at work. Every employee of our company is always entitled to fair and appropriate treatment at work. All kinds of discrimination, harassment and hostility are absolutely forbidden, and we take immediate measures in case of violations.

Employment in our group is based on employment contracts in accordance with the local legislation and any collective agreements. Our salaries are equal to or above the local statutory minimum wage. One example of fair treatment in our company is that our remuneration system covers all of our employees.

The Hakkapeliitta of the Year award is one of the ways of showing appreciation and rewarding persons whose actions and example contribute to a great working environment, who go above and beyond what is required, and who can also celebrate the success of others. We give out the award in our locations in Nokia and Russia, and we have continued the tradition for more than a decade. The award is especially significant because our personnel are involved in selecting the nominees and the winner.

Inventiveness is a strong part of our company culture

We appreciate the competence and ideas of our personnel. Our work on inventiveness is an important channel through which our personnel can further develop their own work, the working environment and our business. It provides everyone with an opportunity to make a difference.

Inventiveness has a long tradition in our company, and it is an important part of our company culture. Our inventiveness and suggestion procedure is a way to encourage everyone to actively participate in the development of their own work and the operation of our company. The outset of inventiveness is continuous improvement of the work and questioning the current state of things. Suggestions for improvements and new solutions can be made by individuals or groups

We welcome suggestions for increasing efficiency and productivity and for improving the quality of our operations and products, occupational safety and employee well-being. In Nokia, inventiveness also includes observing and recording safety issues. In 2016, to mark the anniversary of the Hakkapeliitta, we arranged the Global Hakkapeliitta Award competition, which was strongly built on our company values.

Global Hakkapeliitta Award yielded excellent ideasGlobal Hakkapeliitta Award houkutteli esiin upeita ideoita

As a tyre industry pioneer, we must have the right attitude: tenacity, the ability to take risks, make improvements and better ourselves. We, therefore, challenged our group’s personnel to think of new, never-before-seen ideas based on our values. We wanted to make our values more visible in practical actions, strengthen our company culture and find innovative ideas for improving our operations.

The competition, which we named the Global Hakkapeliitta Award, had three categories, and everyone could participate individually or in a team of up to five people. In the Inventiveness category, we sought ideas that improve occupational safety or the company’s safety culture, whereas the Entrepreneurship category focused on ideas that improve the customer and consumer experiences. And finally, as the name implies, the Team spirit category was built around teamwork and strengthening the team spirit internationally.

Some people had submissions in all three categories, while others focused on one particular area. We chose the top three ideas in each category, which were presented to the management by the persons behind them. Based on the presentations, the management picked one winner in each category. Ultimately, two teams of five people from Finland and an individual participant from Russia won an all-inclusive trip to our Ivalo Testing Center. We were happy with the number of submissions, and we intend to work on the finalists’ ideas during 2017.

Total workforce by employment type, employment contract and region, broken down by gender

Total workforce by employment type, employment contract and region, broken down by gender
Nordic Russia and CIS CE and Eastern Europe North America The rest of the world Total
Total workforce on 31.12.2016 2,556 1,391 173 203 14 4,337
Women 359 213 55 22 8 657
Men 2,197 1,178 118 181 6 3,680
Total number of own employees 2,514 1,391 173 203 14 4,295
Women 349 213 55 22 8 647
Men 2,165 1,178 118 181 6 3,648
Number of supervised workers 42 0 0 0 0 42
Women 10 0 0 0 0 10
Men 32 0 0 0 0 32
Total number of seasonal employments in Vianor during 2016 1,171 8 7 0 0 1,186
Permanent 2,418 1,332 163 203 0 4,116
Full-time 61.7% 100.0% 93.9% 95.1% 100.0% 77.0%
Part-time 38.3% 0.0% 6.1% 4.9% 0.0% 23.0%
Women 13.9% 12.8% 31.9% 10.8% 50.0% 14.1%
Men 86.1% 87.2% 68.1% 89.2% 50.0% 85.9%

Total number and rate of new employee hires and employee turnover by gender, age group, and region

Total number and rate of new employee hires and employee turnover by gender, age group, and region
Nordic Russia and CIS CE and Eastern Europe North America The rest of the world Total
Total number of new employees 346 145 55 55 3 604
Number of women 46 46 19 7 2 120
Number of men 300 99 36 48 1 484
Number of under 30 years old 142 105 14 28 1 290
Number of 30-50 years old 165 40 37 23 2 267
Number of over 50 years old 39 0 4 4 0 47
New employee hires rate (Total) 13.8% 10.4% 31.8% 27.1% 21.4% 14.1%
Percentage of women 1.8% 3.3% 11.0% 3.4% 14.3% 2.8%
Percentage of men 11.9% 7.1% 20.8% 23.6% 7.1% 11.3%
Percentage of under 30 years old 5.6% 7.5% 8.1% 13.8% 7.1% 6.8%
Percentage of 30-50 years old 6.6% 2.9% 21.4% 11.3% 14.3% 6.2%
Percentage of over 50 years old 1.6% 0.0% 2.3% 2.0% 0.0% 1.1%
Nordic Russia and CIS CE and Eastern Europe North America The rest of the world Total
Total number of terminated employees (fixed terms not included) 354 96 11 37 1 499
Number of women 67 18 6 4 1 96
Number of men 287 78 5 33 0 403
Number of under 30 years old 63 57 0 18 1 139
Number of 30-50 years old 188 39 10 13 0 250
Number of over 50 years old 103 0 1 6 0 110
Turnover rate (Total) 14.1% 6.9% 6.4% 18.2% 7.1% 11.6%
Percentage of women 2.7% 1.3% 3.5% 2.0% 7.1% 2.2%
Percentage of men 11.4% 5.6% 2.9% 16.3% 0.0% 9.4%
Percentage of under 30 years old 2.5% 4.1% 0.0% 8.9% 7.1% 3.2%
Percentage of 30-50 years old 7.5% 2.8% 5.8% 6.4% 0.0% 5.8%
Percentage of over 50 years old 4.1% 0.0% 0.6% 3.0% 0.0% 2.6%

Composition of governance bodies and breakdown of employees per employee category according to gender and age group

Composition of governance bodies and breakdown of employees per employee category according to gender and age group
Nordic Russia and CIS CE and Eastern Europe North America The rest of the world Total
Number of individuals within the top management 18 2 4 2 1 27
Number of women 4 0 0 0 0 4
Number of men 14 2 4 2 1 23
Percentage of women 22.2% 0.0% 0.0% 0.0% 0.0% 14.8%
Percentage of men 77.8% 100.0% 100.0% 100.0% 100.0% 85.2%
Number of under 30 years old 0 0 0 0 0 0
Number of 30-50 years old 9 2 3 2 0 16
Number of over 50 years old 9 0 1 0 1 11
Percentage of under 30 years old 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Percentage of 30-50 years old 50.0% 100.0% 75.0% 100.0% 0.0% 5930.0 %
Percentage of over 50 years old 50.0% 0.0% 25.0% 0.0% 100.0% 4070.0 %
Number of white collars 1,089 366 147 83 14 1,699
Number of women 251 167 54 20 8 500
Number of men 838 199 93 63 6 1,199
Percentage of women 23.0% 45.6% 36.7% 24.1% 57.1% 29.4%
Percentage of men 77.0% 54.4% 63.3% 75.9% 42.9% 70.6%
Number of under 30 years old 73 144 21 13 2 253
Number of 30-50 years old 714 212 103 37 12 1,078
Number of over 50 years old 302 10 23 33 0 368
Percentage of under 30 years old 6.7% 39.3% 14.3% 15.7% 14.3% 14.9%
Percentage of 30-50 years old 65.6% 57.9% 70.1% 44.6% 85.7% 63.4%
Percentage of over 50 years old 27.7% 2.7% 15.6% 39.8% 0.0% 21.7%
Number of blue collars 1,407 1,023 22 118 0 2,570
Number of women 92 46 1 3 0 142
Number of men 1,315 977 21 115 0 2,428
Percentage of women 6.5% 4.5% 4.5% 2.5% 0.0% 5.5%
Percentage of men 93.5% 95.5% 95.5% 97.5% 0.0% 94.5%
Number of under 30 years old 276 421 15 31 0 743
Number of 30-50 years old 810 574 5 52 0 1,441
Number of over 50 years old 321 28 2 35 0 386
Percentage of under 30 years old 19.6% 41.2% 68.2% 26.3% 0.0% 28.9%
Percentage of 30-50 years old 57.6% 56.1% 22.7% 44.1% 0.0% 56.1%
Percentage of over 50 years old 22.8% 2.7% 9.1% 29.7% 0.0% 15.0%
Composition of the Board 7
Number of women 3
Number of men 4
Percentage of women 42.9%
Percentage of men 57.1%
Number of under 30 years old 0
Number of 30-50 years old 2
Number of over 50 years old 5
Percentage of under 30 years old 0.0%
Percentage of 30-50 years old 28.6%
Percentage of over 50 years old 71.4%

This page is included in KPMG’s assurance scope. Assurance report can be found here.