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A more flexible working environment

As a global company, we are improving our ways of working. We are harmonizing our global HR processes, implementing our renewed rewarding system and making our working culture more flexible.

We encourage our employees to make safety observations and carry out safety actions with the goal of 2 safety actions per employee on average – resulting in 10,000 safety observations in 2019.  Increased awareness prevents accidents from occurring.

In addition to safety awareness, our focus areas include strengthening managers’ and teams’ safety competence, analyzing injuries even more carefully, and ensuring the implementation of corrective actions at the team level. Our goal is to reduce the number of workplace injuries by 35% compared to the 2018 level.

Harmonizing global HR processes

In line with our company’s global operational model, we have defined the harmonized global HR processes: Employee Life Cycle, Rewarding and Global Mobility, and Talent Management. In the course of 2019, we will continue developing our harmonized practices concerning recruitment, induction training, and performance management, in order to promote fair and equal treatment and the enforcement of human rights in all of our locations.

The Workday HR system that we implemented in 2018 supports the development and application of harmonized and transparent leadership practices, thereby promoting the equal treatment of employees across our organization. In 2019, we will continue to develop our harmonized tracking and reporting of employee KPIs and promote well-being at work. This will help us ensure the desired development across our organization even better.

For many years, our culture has been based on our Hakkapeliitta values, which are strongly built around succeeding together and our will to win and overcome the impossible. As part of our engaging communication about strategy, we will carry out an assessment of our values’ practical implementation in 2019. We want our values to guide our company further through our everyday choices.

RENEWED REWARDING SYSTEM: IMPLEMENTATION AND COMMUNICATION

We are in the process of ensuring that fairness and the incentive effect are present in all the elements of the rewarding system. Our rewarding system is based on work complexity assessments, consistent goal setting, and relevant comparisons of rewarding practices in different markets. We will apply them globally in a consistent and system-supported way.

During 2018, we revised our long and short-term rewarding and the models for determining base pay and the related development and market benchmarking, which will be introduced as of early 2019. We will communicate to our personnel about the goals and elements of overall rewarding, including non-monetary compensation which has a clear impact on employee engagement. We are focusing on things such as manager work and leadership approach, competence development, career opportunities, and working culture as these are important elements that contribute to long careers.

MAKING OUR WORKING CULTURE MORE FLEXIBLE

Our global operating model requires employees to be able to work more flexibly than before: independent of a specific time or place. Improving the prerequisites for such flexible work is one of our priorities in 2019.

Work will increasingly take place as teamwork across organizational borders and time zones; without physical presence, the sharing of work and interactive communication become basic requirements.

In order to support the development of our working culture, we will be introducing new digital tools in 2019 that will enable us to work even more flexibly. At the same time, supervisors and managers will get access to new channels for keeping in touch with their working community more actively and openly than ever before. Our employees will be able to do work on our premises wherever they come from, which will contribute to flexibility, a sense of belonging, and the experiences of fairness. We are aiming at higher flexibility in terms of working hours, which are piloted at our headquarters in Nokia.

GOALS in 2018

In 2018, our key focus areas were improving our leadership and working culture, strengthening our safety culture, and taking steps toward global leadership practices. The development of safety culture continued, and more than 12,000 safety actions were created. A number of technical improvements were carried out to improve the safety of the operators. However, the main KPI on safety success did not improve. Accident frequency (LTIF) was 8.3 in 2018 (7.5 in 2017).

 

Absenteeism by company/region in 2018

Absenteeism by company/region in 2018
Nokian Tyres Finland Nokian Tyres Russia Vianor Nordic
Nokian Tyres (FI) Nokian Heavy Tyres NT Tyre Machinery* Nordic Wheels Vianor Holding Oy Vianor Oy Vianor AB Vianor AS
Sick absences % (total) 2.95% 3.95% 5.93% 4.32% 1.57% 0.17% 5.15% 4.55% 6.00%
Information of absenteeism by gender is not available

Several training events focused on better manager work by discussing team development and the People Reviews, among other things. Trainings influence manager skills, occupational well-being and safety, employee engagement, and harmonized leadership practices.

As part of developing our leadership and working culture, we launched a project for renewing our working environment and tools. Our modern activity-based solution will result in an environment that promotes collaboration and sharing of information and talent, thereby improving user comfort, employee well-being, innovation, and efficiency. The new digital tools will facilitate efficient working, collaboration, and engagement.

Results from 2018

In 2018, 86.2% of our global personnel responded to our Drive! personnel survey. We implemented manager training sessions in order to ensure that the survey results were reviewed throughout the organization. We also arranged workshops on the Drive! results to engage teams in planning improvements.

The EU General Data Protection Regulation (GDPR) became effective in May 2018 and, during the year, we implemented the required practices and created the necessary documentation. With these actions we aim to ensure safe and appropriate processing of the personal data of our customers and employees alike. In addition, we drove the awareness of data protection and data security among our personnel in 2018.

We implemented a new global HR system, Workday, throughout the Group in early 2018. The new system enables us to harmonize our processes concerning the employee life cycle, rewarding, global mobility, and People Reviews. 

Updated risk assessments

In 2018, Nokian Tyres introduced a new Group wide risk assessment tool to identify work related hazards. During 2019, this safety project will continue to have updated risk assessments in place for all of our workplaces and tasks.

Openness is the driving force to ensure the quality of the hazard assessments as well as corrective actions. The factory managers make repeated safety walks to address the importance of safety at workplace. In 2018, managers reported 1,901 safety walks.

Nokian Tyres has a Group wide hazard notification system in place. The system is open to all of the employees. During 2018, our employees made more than 4,300 hazard or near miss observations. Altogether, more than 12,000 safety actions were created by our employees.

Every employee has a right to stop their work if they come to a point where they believe that the task requested or the situation at hand will create a hazard for their safety or health.

HEALTHY NEWS FROM HEAVY TYRES: SICK LEAVES DECREASED BY 50%

The Nokian Heavy Tyres unit is one of our most challenging environments: it involves a considerable amount of manual labor and lifting heavy objects. By the occupational safety numbers, Heavy Tyres used to be among the most poorly performing units, but management development through education has elevated it to the top of the safe working environments at Nokian Tyres.

From 2016 to the end of 2018, the rate of work related accidents has decreased by over 90%. During the last four years, sick leaves have decreased by 50% in the unit. During 2018 the accident frequency was halved: it came down from 9.2 to a 4.4 per million working hours.

"The biggest change has happened in people’s attitudes. Now, everybody thinks that safety is important and they are ready to work on further improving it. The positive trajectory is a result of determined development and increased awareness of safety issues," says the Heavy Tyres plant director Pasi Antinmaa.

The presence of occupational health care and health care coordinators in everyday work helped create a safe sense of working. Also listening to employees and regularly measuring work satisfaction are important factors when trying to decrease sick leaves.

Factory workers are now encouraged to speak up about all of the possible health hazards. As a result, a bit over 1,600 safety actions were reported by the end of the year in the Heavy Tyres unit.

"It has been great to see how all of the personnel are motivated to improve safety issues and the long-term work is paying off. Safety first is a phrase that we all know, but I feel that it excellently describes the attitude of our entire personnel toward work now," Antinmaa says.