HR management and improvements

3 - Good health and well-being5 - Gender equality8 - Decent work and economic growth13 - Climate action

Goal-oriented leadership develops an effective work community where the personnel feel good and are committed to their own work as well as building the company’s success. At Nokian Tyres, we achieve this by treating our employees fairly, developing their competence further and ensuring equality and occupational well-being at all levels of our operations.

Our principles in all operations are fairness and respecting human rights, whether we are dealing with our personnel or other stakeholders. The principle of equal treatment and inclusion is an essential part of our operations. Our diversity management grows out of the idea of fair treatment and equal working conditions. Diversity is important for the company’s international success because people with various backgrounds and skill sets play an essential role in developing the company and new innovative solutions.

In our internationally growing company, leadership that aims at top results and strategy implementation are founded on a strong company culture – the Hakkapeliitta Spirit – that is built around our values of entrepreneurship, inventiveness and team spirit.

Our goal is to be a globally attractive employer that is known for its sustainability and a truly multicultural working community with diverse teams around the world. We also want to set an example in occupational safety as a tyre industry pioneer.

Leadership of people covers the following material topics:

  • human rights in the company’s functions
  • diversity management
  • high level of occupational health and safety in all operations
  • employee satisfaction and motivation
  • professional development of employees

Leadership of people is guided by the following principles and operating models:

Our leadership is guided by the strategy, which is the President & CEO’s responsibility, as well as our values and leadership principles. Leadership is also guided by the Group’s Ethical Guidelines, Human Rights Principles as well as international and local legislation. For the leadership of people, we have defined guidelines, e.g. for safety and well-being, recruitment, onboarding, People Reviews and People development. The guidelines apply across the entire organisation, and they are reviewed and revised as necessary.

Key measures in 2017

In 2017, our key focus areas were supervisor work and improving leadership, strengthening our safety culture and taking steps toward global leadership practices.

  • We improved the injury frequency rate by 33% year over year through training on safety and occupational well-being.
  • Several training events focused on better supervisor work and leadership by discussing team development and the People Reviews, among other things. Trainings influence the leadership culture, occupational well-being and safety as well as engagement and harmonised leadership practices.
  • 91.3% of our global personnel responded to our Drive! personnel survey (in 2016, the response rate was 88.7%). We implemented supervisor training to ensure that the survey results were reviewed in the entire organisation. In addition, we arranged workshops on the Drive! results to engage teams in planning improvements.
  • We made sustainability a more integral part of our company culture. 55% of our personnel completed an online course on sustainability in 2017.
  • In 2017, we started our work on a human rights impact assessment across our group, which continues in 2018. Moreover, we updated the group’s ethical guidelines in spring 2017.

Goals for 2018

With internationalisation and our new operational model, we will continue investing strongly in the leadership of people, supervisor work and developing global operating models. Our goals for 2018:

  • We will use new operating models for ensuring harmonised practices, closer collaboration, equal treatment and respecting human rights.
    With regard to our new operational model, we are continuing our investments in the development of leadership and global processes and practices in terms of recruitment, onboarding, performance management and compensation, among other things.
  • We will reduce injuries by 30% compared to 2017.
    We will focus our investments on developing the competence of our personnel, supervisor work and various corrective
  • Our employees will make more than 10,000 safety observations in 2018.
    We encourage our personnel to make safety observations, with the goal that, on average, each employee makes two safety observations. Driving safety observations helps everyone review their own work and their colleagues’ performance every day.
  • We will implement a global HR information system.
    The new HR information system – Workday – supports the development of harmonised, equal and transparent leadership practices and their implementation across our group.
  • We will create and implement global framework for defining and evaluating jobs.
    We will develop our rewarding system based on this framework

Human rights and diversity management

As a Nordic company, our principles in all operations are fair treatment and respecting human rights when dealing with our personnel or other stakeholders. Our diversity management grows out of the idea of fair treatment and equal working conditions.

In 2017, we started our work on a human rights impact assessment and identified its focus areas. We will assess human rights impacts from the perspectives of the supply chain and its management, our personnel and our customers. The first stage assessment was conducted by Nokian Tyres’ Corporate Sustainability working group.

From an HR perspective, occupational safety and personal data protection were identified as the key impact areas in terms of human rights. Both of these risks are something we can influence, and we have already initiated some related actions.

From a customer perspective, our key human rights impacts are related to the safety impact for end users of tyres and our customers’ personal data protection.

In 2017, we initiated a personal data protection project in order to create operating models for the safe processing of the personal data of our employees and customers. In 2018, we will implement a global HR information system, which will strengthen our employees’ personal data protection even further.

From the perspective of supply chain and its management, we carried out an internal assessment together with Procurement. We identified several key impacts, including the right to a family life, occupational safety and personal data protection. The assessments will continue in 2018.

Organisation and governance

At Nokian Tyres, our need to develop leadership processes and practices always arises from a business perspective, and their implementation is based on our strategy and company culture. Our aim is establishing consistent and truly international HR operations. This guarantees equal, transparent and clear, need-based human resource management and it also enables us to ensure the well-being and commitment of our personnel and the success of our business.

In addition to effective decision making, project management and information sharing, HR management aims at ensuring that our leadership and activities are business oriented and follow an international perspective. The graph below briefly describes Nokian Tyres’ HR management organisation and governance.

Handling issues and complaints

We handle any issues and complaints locally within our company. Our aim is to maintain a leadership culture that makes it very easy to raise concerns.

The primary channel for raising issues goes from supervisors and experts up to the top management, as necessary. Any questions and observations are handled as appropriate in accordance with the law and our company’s guidelines. All reports are investigated and each case is handled based on the results of the investigation.

As part of our ethical guidelines, we have issued a reporting procedure that instructs all of our employees to report any identified or suspected internal or external misuse or violation. It also describes the communication channels established for this purpose. The purpose of the instructions is to encourage our personnel to report any potential violations of ethical guidelines and laws that they encounter, so that we can investigate and handle each case. It is also possible to make an anonymous report e.g. through the Whistleblow channel. The same channel is available to external stakeholders, e.g. at whistleblow@nokiantyres.com.

We also employ protocols, e.g. for bullying and harassment. There are subject-specific instructions that specify who to contact and how to deal with the situation with appropriate sensitivity. We also ask about potential issues, including bullying and discrimination, in our annual Drive! personnel survey.

We encourage everyone to make safety observations that they can direct to whoever they want inside the organisation. After the root cause is identified, the matter is communicated to the relevant responsible persons. The entire process is documented in order to ensure that it follows the protocol.

All of our employees have the opportunity to raise issues or give feedback about important matters through our company intranet. We will respond in a transparent matter through the same channel, and everyone in the organisation can see the dialogue.

Tracking social responsibility

We use the following indicators for tracking leadership and HR development:

  • 102-8 Total number of employees by employment type and employment contract, with a breakdown by region and gender
  • 102-41 Percentage of total employees covered by collective bargaining agreements
  • 102-10 Significant changes to the organisation’s size, structure, supply chain or ownership
  • 401-1 Total number and rate of new employee hires and employee turnover, with a breakdown by age group, gender and region
  • 403-2 Number of lost days, absentees, injuries and types of injury, occupational disease rate, lost days and work-related fatalities, with a breakdown by region and gender
  • 404-2 Programs for upgrading employee skills and transition assistance programs
  • 404-3 Performance reviews
  • 405-1 Percentage of individuals within the organisation’s governance bodies and percentage of employees per employee category, with a breakdown by gender, age group, minority group and other diversity categories

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