A more flexible working environment

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 want to empower our people to actively participate and collaborate, to take both ownership of their work and responsibility for everyone’s safety. This was strengthened during the pandemic: we quickly adapted to a constantly changing situation, safeguarding not just ourselves but our co-workers as well.

Remote work requires new skills both from managers and employees. We have implemented several actions to support managers and employees to cope with the new working environment. The purpose has been to keep teams tight, efficient, and collaborative, and to ensure that employees have a feeling of belonging and being cared for.

Pay for performance

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 longterm goals of our shareholders and key personnel. We also have a profit-sharing plan for the employees not eligible to participate in the share plans. With these plans, all Nokian Tyres employees are covered and 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. For year 2020, we launched a new Global Sales Incentive plan structure, intended for direct sales roles across several locations. All short-term plans are based on criteria measured on either group, business area/unit, team and/or individual performance.

An important aspect of overall rewarding includes non-monetary compensation. We are further developing this vital element with various activities, described in this section. Non-monetary rewarding has a clear positive effect on employee engagement and improved performance.

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 had been piloted already in 2019 and it received very positive feedback. This also enabled us to quickly implement remote work on a larger scale when the pandemic was imminent.

People reviews

Personal People Reviews have a key role in personnel development. In 2020, a total of 93.0% of our personnel took part in a People Review (92.2% in 2019). Personal People Reviews have a key role in personnel development. Internal job rotation, on-the-job learning, and different training solutions continued being essential part of personnel development. 

Because of the changes brought by the pandemic, we did not implement our annual Drive! survey, but implemented pulse surveys to measure real-time atmosphere and engagement in the organization. We conducted both company and team-level pulse surveys throughout the year. Team-level pulse surveys were created for team leaders to follow up the well-being and working conditions of the team as the change to remote work was very rapid and new for many of our knowledge workers.

People Review (realization, %)
  2015 2016 2017 2018 2019 2020*
Nokian Tyres Group 82,8 % 86,0 % 83,4 % 82,2 % 92,2 % 93,0 %

* Not including Levypyörä Oy which was integrated to Nokian Tyres people processes in stages during 2020.

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