key measures in 2019
- Improved occupational safety: reduced the number of workplace injuries by 51% compared to the 2018 level. Our LTIF was 4.3 (8.3 in 2018).
- Renewed our short and long-term incentive plans for 2019 and onwards.
- Harmonized global people processes.
- Organized training on Code of Conduct: 93% of personnel completed the course.
- A total of 92.2% of our personnel took part in a People Review (82.2% in 2018).
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 continued 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 continued 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. Our values are:
- Inventiveness: We always find solutions and opportunities.
- Entrepreneurship: We take ownership to reach our ambitious goals.
- Team spirit: We succeed together.
RENEWED REWARDING SYSTEM
The Global Total Rewards Philosophy and Guideline was created by our Management Team and Board of Directors during 2018, and it was communicated to all employees in 2019. The objective of the Guideline is to align and harmonize our rewarding practices globally. The Guideline is designed to ensure the fair and equal treatment of our employees, as well as to allow countries and units to provide locally competitive pay to attract, retain, and motivate the best talent.
It is based on work complexity assessments, consistent goal setting, and benchmarking of rewarding practices in relevant markets.
Along with the Total Rewards Guideline, we renewed our short and long-term incentive plans for 2019 and onwards. As long-term incentives, we have two share plans that are intended to align the goals of our shareholders and key personnel in order to commit key personnel to the company and its strategic targets, as well as to increase the value of the company. We have a profit-sharing plan for the employees not eligible to participate in the share plans. With these plans, all Nokian Tyres employees are rewarded for the company’s overall performance.
As short-term incentives, there are several different plans in use and all employees are eligible for some of them. These plans are designed to drive the company’s strategy and reward for the achievement of stretching performance goals. Plans are based on performance criteria for the group, business area/unit, team and/or individual.
One aspect of overall rewarding includes non-monetary compensation, which has a clear impact on employee engagement. We are focusing on things such as managerial work and leadership approach, competence development, career opportunities, and working culture, as they are important elements contributing to commitment and long careers.
MAKING OUR WORKING CULTURE MORE FLEXIBLE
Our people development philosophy supports our employees’ development with an internal job rotation, on-the-job learning, and various development solutions following the 70–20–10 principle: 70% of the development through learning on the job, 20% through learning from others, and 10% through training.
To bring the company’s strategy closer to every employee, we have created an eLearning solution known as the “Strategy Learning Journey”. It gives an overview of Nokian Tyres’ strategy and the way we operate to achieve our goals. It is followed by a Team Challenge game, which helps teams discuss how to achieve our goals.
We launched our new digital collaboration hub in October and organized multiple trainings for all white collar employees. We improved information and knowledge sharing globally.
Flexible working time and dynamic workspaces are important in developing an energizing work culture at Nokian Tyres. New activity-based workspace pilot was taken into use in 2019. Flexible working time pilots also continued and were extended during 2019.
Pilots were followed up with surveys and received very positive feedback. The satisfaction in flexible working time was 4.4 in scale 1–5. Also, 97% felt that workspaces support their various needs during their working day (in 2018, the result was 32%).
Targets for 2020
- Development of a global Human Rights policy, management and processes
- Further development of value-based leadership culture with trainings and pulse survey
- Strengthening the energizing and flexible working culture with pilot feedbacks and pulse survey
- A total of 95.0% of our personnel will take part in the People Review.
SICK ABSENCES IN 2019
|Absenteeism by company in 2019|
|Nokian Tyres Finland||Nokian Tyres Russia||Vianor Nordic|
|Nokian Tyres (FI)||Nokian Heavy Tyres||NT Tyre Machinery||OOO Nokian Shina||OOO Nokian Tyres||Nordic Wheels||Vianor Holding Oy||Vianor Oy||Vianor AB||Vianor AS|
|Sick absences % (total)||2.6%||4.2%||7.7%||3.7%||5.5%||1.1%||0.8%||6.8%||4.2%||5.6%|
Safety is a choice
Our goal is to promote occupational health and minimize the number of occupational accidents. Occupational health and safety are an integral part of our daily management and operations. During 2019, we organized a safety campaign to globally communicate our slogan “Safety is a choice”, meaning that everyone is responsible for safety: adhering to occupational safety guidelines, observing defects and shortcomings, and reporting and removing hazards.
We have identified three safety sectors:
• Technology. Technical separation of people from energy sources, such as electricity or steam
• Process. Processes guiding us to do the right thing
• Thinking. Safety in one’s own thinking and actions
In order to avoid hazardous situations, we emphasize preventing occupational accidents. We have identified diverse safety cultures, meaning that the ownership of safety varies according to operating countries. That is why we have invested in communicating our safety thinking globally. Developing a safe working culture is a continuous project.
Our goal for 2019 was to reduce the number of workplace injuries by 35% compared to the 2018 level. The result was a 51% reduction. During 2019, Nokian Tyres continued updating the risk assessments for all workplaces and tasks. Opening of the US factory required major safety trainings.
We encourage our employees to make safety observations and carry out safety actions with the goal of 2 safety actions per employee on average – this resulted in over 14,000 safety observations in 2019. This amounts to 2.9 actions per employee.
The data privacy work (GDPR) continued by specifying and further developing the required documentation and processes, for example by updating the Nokian Tyres privacy statements and further increasing the awareness within the company.
|OCCUPATIONAL ILLNESS RATE (OIFR) *|
|* Incidents / 1,000,000 hours worked|
|LOST TIME ACCIDENT FREQUENCY (LTIF) *|
|Nokian Tyres Finland||8,6||5,3||3,7|
|Nokian Tyres Russia||3,2||5,0||2,0|
|The ratio of all listed companies||7,5||8,3||4,3|
|* Levypyörä (acquired in August 2019) will be included in the safety figures as of 2020.|
|LOST TIME INJURY FREQUENCY RATE (LTIFR) * / CONTRACTORS|
|Data coverage (as % of contractors)||90||95||95|
|* Incidents / 1,000,000 hours worked|
|** Reason for the increase is the large number of construction projects during 2018-2019: factory expansions in Finland, new warehouses in Russia and new factory in Dayton|
Personal People Reviews have a key role in personnel development. The People Reviews focus on managing performance and personal goals and development. In 2019, a total of 92.2% of our personnel took part in a People Review (82.2% in 2018).
In 2019, we renewed our employee survey Drive! to make it more agile and focused. Themes in the survey were energizing the team, collaboration & participation, safety and general leadership and company topics. The results were discussed in renewed participative workshops and managers were trained to facilitate team discussions. The survey results show strong overall improvement. The response rate was 87.5% (2018: 86.2%). Cooperation with other teams has improved significantly across all personnel groups and this also has a clear positive correlation with engagement. 80% of employees are willing to recommend our company as an employer, which is higher than in companies in general.
The feeling of fair rewarding has improved. However, it is still below the external benchmark driven by production employees in Finland.
Striving towards our company values and objectives has decreased; it is now 83% and below the benchmark, which leaves room for improvement. Managerial work in our company is generally at a very good level. The closest managerial topics, trust in staff and acknowledgement of good work, have strongly improved and are both clearly above the benchmark.