We want to empower our people to actively participate and collaborate, to take both ownership of their work and responsibility for everyone’s safety. During 2023, Nokian Tyres continued the hybrid way of working. The management team fully supports the hybrid way of working, including flexible working time and arrangements when possible. The company follows local legislation related to flexible working hours, overtime, part-time working options, and paid parental and family leave. The modern working environment with digital tools helps teams to flexibly organize their work and supports the individual well-being of employees. Teams have discussed and agreed on the best working practices.
To support the modern and flexible way of working and employee well-being, Nokian Tyres promotes collaboration and open dialog throughout the entire organization.
Pay for performance
Nokian Tyres has a Global Total Rewards Philosophy and Guideline, created by Nokian Tyres’ Management Team and Board of Directors in 2018. The guideline is designed to ensure the fair and equal treatment of Nokian Tyres’ 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 position evaluation, consistent goal setting, and benchmarking of rewarding practices in relevant markets.
Nokian Tyres has several incentive plans in use to measure performance in both the short and long term. The company has two share plans that are intended to align the long-term goals of Nokian Tyres’ shareholders and key personnel. The current performance criteria in the company’s main long-term incentive plan, the Nokian Tyres Performance Share Plan, are cumulative EBITDA, increase in passenger car tire production volume, and reduction of direct CO2 emissions. Nokian Tyres’ Restricted Share Plan serves as a complementary long-term incentive tool, used for the retention of Nokian Tyres President and CEO, the Management Team, and other selected key employees.
Both plans were resumed during 2023 with changes in Nokian Tyres’ Performance Share Plan for the performance period 2023–2024. The change was from a three-year performance period to a two-year performance period and one-year additional retention. Nokian Tyres’ Restricted Share Plan for a restriction period between 2023–2024 remained as earlier.
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. All short-term plans are based on criteria measured on either Group, business area/unit, team and/or individual performance.
Performance-based rewarding supports the achievement of results by creating motivation and commitment. Different people are motivated by different things, and while rewarding helps to build motivation, it is not based only on monetary rewards. At Nokian Tyres, we want to drive performance and support employee motivation and commitment by offering competitive total reward packages, which consist of both monetary and non-monetary reward elements. We will continue to develop and assess aspects of our rewarding structure.
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.
In 2023 the company’s e-learning management system was renewed, and a group of employees was trained to create online courses based on business needs.
As digital has become the primary way of working, the need for information security skills has grown. We have continued developing information security capabilities and employee awareness.
People reviews
In 2023, Nokian Tyres developed its performance management process called People Review to strengthen the feedback culture and foster continuous dialog. This change enabled more flexible and agile performance management practices. Instead of one annual goal setting and performance evaluation discussion, regular 1-on-1’s are now recommended to take place throughout the year. Those discussions can also be held with the team, not only with individuals.
In 2023, a total of 87% of our personnel took part in a People Review. Internal job rotation, on-the-job learning, and different training solutions continued being essential part of personnel development.
Average training hours per employee 2023 excluding onboarding type of training
| Gender | Average training hours per employee | Employee category | Average training hours per employee | Age group | Average training hours per employee |
| Female | 6.2 | Blue collar | 4.0 | Under 30 | 2.4 |
| Male | 3.2 | White collar | 3.5 | 30–50 | 4.1 |
| Over 50 | 3.8 | ||||
| Total training hours per employee | 3.8 | 3.8 | 3.8 |
Avarage training cost per employee in 2022: €324.7.