Social
Note
Wärtsilä's aim is to provide the best value and service to its customers by continuously developing its competences and way of working. The strategic goal of Wärtsilä's social responsibility and people strategy is to bring the business strategy alive by developing Wärtsilä's organisation and competences to meet the evolving business needs.
The aim is to have energetic, competent, and motivated personnel with exciting and meaningful jobs and career opportunities led by excellent leaders. Good performance is recognised and diversity respected. By applying high standards of occupational health and safety, Wärtsilä strives to offer a hazard-free workplace to its employees, contractors, and others working in different parts of the corporation.
Good corporate citizenship is accomplished through active co-operation, open communication, and good relationships with stakeholders. Wärtsilä's operations and relations with its stakeholders are based on the company's Code of Conduct, with which each Wärtsilä company and individual is required to comply.
Significant changes to the organization and its supply chain in 2017 (GRI 102-10)
In February, Wärtsilä announced the expansion of its QuantiServ service offering with the acquisition of Lock-n-Stitch Inc., an American engineering company specialised in cast iron repairs. The acquisition strengthened Wärtsilä’s service portfolio for customers operating multiple brands. Wärtsilä also completed the acquisition of Trident BV, a Netherlands based company specialised in underwater ship maintenance, inspection, and repair services. The acquisition enables Wärtsilä to become a leading global operator in the underwater services market. The company employs 35 persons. In March, Wärtsilä announced the acquisition of Transas, a global market leader in marine navigation solutions that include complete bridge systems, digital products and electronic charts. The company is also a leader in professional training and simulation services, ship traffic control, as well as monitoring, and support. The company has 22 regional offices worldwide and a distribution network that spans 120 countries. It has a workforce of approximately 1000 employees. Transas business and operations will be integrated within Wärtsilä’s Marine Business. In October, the technology group Wärtsilä decided to reorganise into two business areas, Wärtsilä Marine Business and Wärtsilä Energy Business, covering both new sales and services for the respective markets. With this change, Wärtsilä aims to deliver increased value to its customers by better serving their needs across the full lifecycle. The new organisational structure is operational as of 1 January 2019. Forming two business areas will enable Wärtsilä to accelerate growth and the implementation of the Smart Marine and Smart Energy strategies. Integrating the newbuild and service activities enhances customer value by strengthening the focus on complete lifecycle solutions tailored to specific market needs. It also allows Wärtsilä to more effectively serve its customers with increased flexibility and faster response times. In October, Wärtsilä divested its pumps business to Solix Group, a Scandinavian investment company with offices in Copenhagen, Denmark and Malmö, Sweden. Wärtsilä Pumps has belonged to the Wärtsilä Marine Solutions organisation and became part of the company along with the acquisition of Hamworthy in 2012. This divestment concerned 227 employees. The divestment enables Wärtsilä to devote greater focus to its Smart Marine vision. In October, Wärtsilä acquired underwater services provider Burriel Navarro, S.L. which operates and enjoys a long-standing reputation in the main ports of Spain. This acquisition supports the growth of underwater business by increasing service locations and by complementing the position of Trident – a Wärtsilä Company in Europe. The company employs 19 persons. |
Employment
Information on employees and other workers in 2018 (GRI 102-8, GRI 401-1) | |||||||
In addition to direct employment, Wärtsilä employed also indirectly an external workforce totalling 7,000 man-years in subcontracting at its factories and units. The units located in Finland had a total personnel of 3,885 employees. All in all, 1,641 employees left and 3,316 joined Wärtsilä globally during 2018 for different reasons. Wärtsilä had 19,293 employees at the end of 2018. |
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Personnel | 2018 | 2017 | 2016 | 2015 | 2014 | ||
Number of employees at the end of the year | 19 293 | 18 065 | 18 011 | 18 856 | 17 717 | ||
Personnel by business | |||||||
Services | 11 051 | 10 624 | 10 567 | 10 592 | 10 692 | ||
Marine Solutions | 6 267 | 5 845 | 6 074 | 6 847 | 5 603 | ||
Energy Solutions | 1 171 | 1 038 | 903 | 959 | 978 | ||
Other | 805 | 559 | 467 | 459 | 444 | ||
Personnel by market area | |||||||
Europe | 11 693 | 10 463 | 10 399 | 10 893 | 9 633 | ||
Asia | 4 726 | 4 890 | 4 992 | 5 297 | 5 477 | ||
Americas | 2 074 | 1 960 | 1 919 | 1 917 | 1 840 | ||
Other | 801 | 753 | 701 | 748 | 767 | ||
Average age of employees | 41.4 | 41.5 | 41.0 | 41.0 | 40.2 | ||
Permanent employees (%) | 93 | 92 | 89 | 89 | 88 | ||
Temporary employees (%) | 7 | 8 | 11 | 11 | 12 | ||
Full-time employees (%) | 98 | 98 | 98 | 98 | 98 | ||
Part-time employees (%) | 2 | 2 | 2 | 2 | 2 | ||
Employee turnover (resigned) (%) | 5.7 | 5.3 | 5.3 | 5.2 | 6.2 | ||
Net employment creation | 923 | -213 | -840 | -755 | -283 | ||
Number of employees by employment contract and gender in 2018 | Permanent | Temporary | |||||
Total | 17 852 | 1 441 | |||||
Male | 14 934 | 1 155 | |||||
Female | 2 918 | 286 | |||||
Number of employees by employment contract and region in 2018 | Permanent | Temporary | |||||
Europe | 11 193 | 500 | |||||
Asia | 4 002 | 724 | |||||
America | 2 046 | 28 | |||||
Other | 611 | 190 | |||||
Permanent employees by employment contract type and gender in 2018 | Full-time | Part-time | |||||
Total | 17 517 | 335 | |||||
Male | 14 815 | 125 | |||||
Female | 2 703 | 210 | |||||
New employee hires in 2018 | Employees | Rate (%) | |||||
Total | 3 316 | 17.2 | |||||
Gender | |||||||
Male | 2 534 | 15.8 | |||||
Female | 782 | 23.8 | |||||
Age group | |||||||
< 30 years | 1 078 | 40.1 | |||||
30–50 | 1 891 | 15.6 | |||||
> 50 years | 347 | 7.7 | |||||
Market area | |||||||
Europe | 2 188 | 18.7 | |||||
Asia | 641 | 13.6 | |||||
Americas | 365 | 17.6 | |||||
Other | 122 | 15.2 | |||||
Employee turnover (resigned) in 2018 | Employees | Rate (%) | |||||
Total | 1 011 | 5.7 | |||||
Gender | |||||||
Male | 807 | 5.0 | |||||
Female | 203 | 6.2 | |||||
Age group | |||||||
< 30 years | 187 | 10.6 | |||||
30–50 | 660 | 5.7 | |||||
> 50 years | 164 | 3.6 | |||||
Market area | |||||||
Europe | 573 | 5.1 | |||||
Asia | 267 | 6.7 | |||||
Americas | 137 | 6.7 | |||||
Other | 33 | 5.4 | |||||
Benefits provided to full-time employees that are not provided to temporary or part-time employees (GRI 401-2) | |||||||
In general, temporary and part time employees are offered the same benefits as permanent employees. In some countries, eligibility is linked to the number of months or years of service – such differences being typically based on collective agreements according to local legislation. | |||||||
Labour / management relations
Minimum notice periods regarding operational changes (GRI 402-1) | |||||||
Wärtsilä way of working concerning minimum notice periods is described in the Policy on human rights, equal opportunities and fair employment practices. |
Occupational health and safety
Workers representation in formal joint management–worker health and safety committees (GRI 403-1) | |||||||
Wärtsilä companies apply occupational health and safety programmes as required by local legislation. These are normally developed by occupational health and safety committees consisting of representatives from both management and personnel. Altogether 78% of Wärtsilä companies have an occupational health and safety committee covering in total 92% of Wärtsilä’s employees. | |||||||
Type of injury and rates of injuries, occupational diseases, lost days and absenteeism, and total number of work-related fatalities (GRI 403-2) | |||||||
The lost time injury frequency for 2018 was 2.50, which was 1% higher than in the previous year. Wärtsilä regrets to report a fatality at a shipyard in China. A Wärtsilä employee was commissioning engines in a container vessel and intending to leave the vessel after the work. There was an unprotected side on the deck of the vessel, which the employee did not notice. The employee fell down to the cargo hold and lost his life. In 2018, Wärtsilä started reporting the number of lost time injuries and lost time injury frequency also for Wärtsilä contractors, as well as the number of lost time injuries in geographical areas. |
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Injuries | 2018 | 2017 | 2016 | 2015 | 2014 | ||
Total number of injuries, employees | 398 | 446 | 439 | 461 | 510 | ||
Number of lost time injuries resulting in at least 1 day absence - employees, total |
90 | 88 | 95 | 104 | 130 | ||
Europe | 62 | 60 | 69 | 72 | 90 | ||
Asia | 14 | 9 | 17 | 15 | 21 | ||
Americas | 13 | 16 | 6 | 16 | 15 | ||
Africa | 1 | 3 | 3 | 1 | 4 | ||
Number of lost time injuries resulting in at least 1 day absence - contractors, total |
35 | ||||||
Europe | 19 | ||||||
Asia | 6 | ||||||
Americas | 10 | ||||||
Africa | 0 | ||||||
Lost time injuries / million working hours | |||||||
Employees | 2.5 | 2.5 | 2.6 | 2.8 | 3.5 | ||
Contractors | 3.1 | ||||||
Absence rate, employees | |||||||
Absence due to illness (% of total working hours) | 2.2 | 2.0 | 2.2 | 1.9 | 2.0 | ||
Absence due to lost time injury (% of total working hours) |
0.1 | 0.1 | 0.1 | 0.1 | 0.1 | ||
Absence due to occupational diseases (% of total working hours) |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | ||
Fatalities | |||||||
Number of fatalities, total | 1 | 1 | 1 | 1 | 5 | ||
Employees | 1 | 0 | 0 | 1 | 3 | ||
Contractors | 0 | 1 | 1 | 0 | 2 | ||
Workers with high incidence or high risk of diseases related to their occupation (GRI 403-3) | |||||||
Wärtsilä employees constantly work close to running engines while conducting overhaul or testing activities, which exposes them to high levels of noise. Wärtsilä has occupational safety and health programmes in place to prevent hearing loss, including providing hearing protectors to those employees at risk of hearing loss or impairment. In 2018, there were in total 7 cases of occupational disease diagnosed, which is equivalent to 0.2 cases / million worked hours. |
Training and education
Average hours of training per year per employee (GRI 404-1) | |||||||
Wärtsilä's average number of training days in 2018 for male employees was 2.17 and for female employees 2.23. | |||||||
Training days/employee | 2018 | 2017 | 2016 | 2015 | 2014 | ||
All employees | 2.2 | 2.2 | 3.0 | 3.0 | 4.2 | ||
Managers and superiors | 2.9 | 3.5 | 3.7 | 3.5 | 5.1 | ||
Other white-collar employees | 2.1 | 3.0 | 2.9 | 2.9 | 3.5 | ||
Blue-collar employees | 2.1 | 2.0 | 3.0 | 3.1 | 4.4 | ||
Programs for upgrading employee skills and transition assistance programs (GRI 404-2) | |||||||
Wärtsilä programmes for skills management is described in the People Management section. Wärtsilä offers a wide variety of internal training and learning opportunities for its employees, covering more than 20 training categories. These include topics such as engine technology, health and safety, language and culture, project management, environment, security, and leadership. | |||||||
Percentage of employees receiving regular performance and career development reviews (GRI 404-3) | |||||||
Development discussions held annually | 2018 | 2017 | 2016 | 2015 | 2014 | ||
Coverage % | 96 | 96 | 96 | 92 | 92 |
Diversity and Equal opportunity
Diversity of governance bodies and employees (GRI 405-1) | |||||||
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 is aimed at driving an inclusive corporate culture at all levels to meet both global and local requirements. By investing in diversity and supporting employees of varied gender, age, personality, and educational background, Wärtsilä becomes an even more attractive employer and a more valued business partner for its customers. | |||||||
Gender diversity | 2018 | 2017 | 2016 | 2015 | 2014 | ||
Male/female ratio (%) | 83/17 | 84/16 | 84/16 | 85/15 | 86/14 | ||
Executive positions globally: male/female ratio (%) | 87/13 | 89/11 | 89/11 | 89/11 | 90/10 | ||
Regional diversity | |||||||
Number of nationalities | 137 | 136 | 134 | 131 | 122 | ||
Number of employees per age group in 2018 | Employees | Ratio (%) | |||||
< 30 years | 2 687 | 13.9 | |||||
30–50 | 12 107 | 62.8 | |||||
> 50 years | 4 499 | 23.3 | |||||
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per age group in 2018 | BoM (%) | BoD (%) | |||||
< 30 years | 0 | 0 | |||||
30–50 | 25 | 25 | |||||
> 50 years | 75 | 75 | |||||
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per gender in 2018 | BoM (%) | BoD (%) | |||||
Female | 13 | 25 | |||||
Male | 87 | 75 |
Customer satisfaction
Results of surveys measuring customer satisfaction (GRI 102-43) | |||||||||
Wärtsilä always puts the needs of our customers first. We show this by carefully listening and acting upon our customers’ feedback, at both operative and management levels. Wärtsilä places great emphasis on earning our customers’ long-term trust by keeping its promises. While challenges may arise at any time in this business, relationships are strengthened by focusing on our customers. We observe our customers’ perception of loyalty and satisfaction by applying a Net Promoter Score methodology, NPS. The results are monitored on a monthly basis and last three years shows considerable improvements. Our Customers’ feedback on project deliveries and the operation of their installations, are welcomed. To know what works and where to improve, as well as, understanding our customers’ operational environments, is critical in developing the company’s products and services. To ensure our customers’ needs and expectations are met, Wärtsilä collects feedback during different events, activities, and interactions with our customers and acts upon that feedback. |
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Customer loyalty and satisfaction | 2018 | 2017 | 2016 | ||||||
Customer satisfaction | |||||||||
Marine Solutions | 82% | 76% | 76% | ||||||
Services | 90% | 87% | 90% | ||||||
Energy Solutions | 85% | 95% | 97% | ||||||
NET promoter score | |||||||||
NPS | 53 | 45 | 41 | ||||||
Sample | 3 356 | 4 875 | 4 899 | ||||||
Customer satisfaction percentage is based on one question: Are you satisfied with Wärtsilä's overall performance? Answering options: Satisfied, Neutral or Dissatisfied. Percentage shows Satisfied as part of total answered. Net promoter score scale is from -100 to 100. |