Wärtsilä Corporation Annual report 2014

People management in 2014

The main goal of Wärtsilä's People Strategy is to support the group business strategies and to bring them alive by developing Wärtsilä's organisation and competencies to meet the business needs. The key focus areas of the strategy continues to be further development of leadership and leadership culture in the company as well as a high-performance culture throughout the organisation by promoting true employee engagement through a culture of open communication, integrity and innovation and finally by ensuring that the businesses have the requisite resources and skilled and motivated people at their disposal. This means supporting implementation of changes in the organisation, continuous competence development and stronger performance management focus with quality in target setting, proper and regular feedback, evaluation of overall performance and recognition of strong performance.

Wärtsilä Human Resources continued to develop its common people management processes and tools and common ways of working across national and organisational boundaries. Strong focus and effort has been made to further develop managerial skills in people management by rolling out Management Focus, a modular training programme for all line managers. Close to 100% of all line managers have participated in these training modules during the last two years. In 2014, a Rewarding module was added to the Management Focus training content. Wärtsilä Human Resources has continued to invest in technologies and tools that enable quick access to online reports, employee information and annual compensation planning both local and multi country teams.

Diversity initiative

Wärtsilä continued to work on diversity during 2014. A diverse workforce generates higher profits, better complex problem-solving skills and access to a larger talent pool. Wärtsilä’s Diversity Initiative began in 2012 and aims to drive an inclusive corporate culture at all levels to meet global requirements in the corporation. By investing in diversity and supporting employees of varied gender, age, personality and educational background, Wärtsilä becomes a more innovative business partner as well as a more attractive employer.

Since the Diversity Initiative was initiated, awareness of diversity-related questions has risen. Follow-up analysis shows that overall feedback towards the initiative is positive, and diversity has become a key topic for Wärtsilä. The Diversity Forum will continue developing actions both on global and local levels internally and externally, to work towards a more diverse and balanced corporation.

In 2014, Wärtsilä signed FIBS’ Diversity Charter. The Corporate Responsibility Network FIBS is a non-profit Finnish organisation that helps companies promote financially, socially and ecologically sustainable business. By signing the Charter, Wärtsilä promises to offer equal career opportunities, recognise and utilise everyones competences and practice fair and transparent management. As a member of the FIBS network, we can learn from others, have dialogue across and with other organisations and share also our own experiences with them.

Performance management

The performance management process supports Wärtsilä in reaching its business targets by translating business strategies to team and individual objectives. Each Wärtsilä employee needs to know and understand Wärtsilä's business strategies and their goals. More importantly, everybody needs to know the targets set for their own units and the main target areas related to their own work. As part of the performance management process, each employee has a proper performance evaluation based on their overall job performance. Overall performance evaluation is one of the inputs for the compensation decisions following the principle of performance-based rewarding.

Learning and development

Wärtsilä continued its leadership development activities in many areas. New learning solutions for line managers have been developed to support the managers in their people management and leadership roles. An annual executive development programme was held in November, and six other global leadership development programmes for senior managers were carried out during 2014. The number of managerial training days is followed regularly as one of the HR KPIs.

Continuous development of new learning solutions for core competence areas in sales, project management and technology have been developed and delivered, and they continue to be part of the learning offering in 2015 as well.

Wärtsilä HR organisation created Leading Change intranet pages including supporting materials for all leading change in the organisation.

Learning at work, self-learning, mentoring, coaching, job rotation and assignments designed to enable the competence development and the transfer of competence and skills from experienced to younger employees, are integral parts of the development of learning and competence within the company. Employees are given formal classroom training at all organisational levels: from induction training for new employees to the training courses for the company's top executives. Wärtsilä employees attended 73,847 training days in total which gives 4.2 training days per employee on average. Many of the training programmes are tailored to the specific strategic competence development needs of the businesses.

Engagement

In October 2014, Wärtsilä launched 3 Big Ideas communication for all employees. 3 Big Ideas promote the importance of Entrepreneurial Drive, Customer Centricity and Passion for doing right as core elements of our company culture. The positive trend in development discussion compliance has continued. The average coverage of annual development discussions was 92% globally. Strengthening engagement through active strategy communication and dialogue has been a main target for all Wärtsilä entities.

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