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 people, organisation, competences and ways of working 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 organisation and its supply chain in 2019 (GRI 102-10)
In October 2018, Wärtsilä was reorganised into two business areas, Wärtsilä Marine Business and Wärtsilä Energy Business, covering both new sales and services for the respective markets. The new organisational structure has been operational as of 1 January 2019. This has been one of the biggest organisational changes in Wärtsilä’s history, with altogether more than 13000 people changing places, and a major change management, restructuring and recruitment effort being implemented. Wärtsilä’s Group-wide programme to realign its operations and resources with the aim of ensuring future profitability and competitiveness, has been ongoing throughout 2019. The planned actions include an increased focus on targeted sales activities, developing the agreements-based and “as-a-service” business, reviewing the cost structure, and optimising the business portfolio. The programme is expected to lead to a reduction of approximately 1 200 employees globally by the end of 2020. In February, Wärtsilä strengthened its underwater-related servicing capabilities with the opening of a new underwater repair, refurbishment, and maintenance facility in Fujairah, United Arab Emirates. In May, Wärtsilä announced the acquisition of Ships Electronic Services Ltd (“SES”), a UK based company specialising in navigation and communication electronics, as well as installation, maintenance, and repair services, mainly for commercial and leisure vessels. The company employed a staff of 47. In September, Wärtsilä’s Energy Business announced a plan to re-organise and re-align its organisation, aiming for increased customer centricity and an improved ability to capture market opportunities through reduced organisational complexity, faster decision making, and greater empowerment of its people. Also in September, it was decided to dissolve WHEC, the Wärtsilä-Hyundai Engine Company joint venture in Korea, by mutual agreement with Hyundai Heavy Industries (HHI). WHEC manufactured 4-stroke W50DF engines for LNG carriers and other marine applications for the Asian markets, and employed 20 people at the end of 2019. Wärtsilä’s digital transformation activities have progressed rapidly during recent years. In September, Wärtsilä integrated its teams within the central digital organisation into various business and corporate functions, based on where they could best create value to our customers and Wärtsilä as a whole. At the same time, their participation in operations and projects is continuing in a cost-efficient manner. In December, Wärtsilä announced the divestment of Wärtsilä ELAC Nautik GmbH (ELAC Nautik). ELAC Nautik became part of Wärtsilä as a result of the acquisition of L-3 Communications MSI in 2015. Its main market focus is on hydroacoustic products, including sonars, underwater communication systems and echo systems for small and medium sized military submarines. ELAC Nautik employs approximately 120 people. |
Employment
Information on employees and other workers in 2019 (GRI 102-8, GRI 401-1) | |||||||
In addition to direct employment, Wärtsilä employed also indirectly an external workforce totalling 6 370 man-years in subcontracting at its factories and units. The units located in Finland had a total personnel of 3 776 employees. All in all, 1 890 employees left and 4 067 joined Wärtsilä globally during 2019 for different reasons. Wärtsilä had 18 795 employees at the end of 2019. |
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Personnel | 2019 | 2018 | 2017 | 2016 | 2015 | ||
Number of employees at the end of the year | 18 795 | 19 293 | 18 065 | 18 011 | 18 856 | ||
Personnel by business | |||||||
Services | * | 11 051 | 10 624 | 10 567 | 10 592 | ||
Marine Solutions | 12 526 | 6 267 | 5 845 | 6 074 | 6 847 | ||
Energy Solutions | 4 978 | 1 171 | 1 038 | 903 | 959 | ||
Other | 1291 | 805 | 559 | 467 | 459 | ||
Personnel by market area | |||||||
Europe | 11 618 | 11 693 | 10 463 | 10 399 | 10 893 | ||
Asia | 4 341 | 4 726 | 4 890 | 4 992 | 5 297 | ||
Americas | 2 016 | 2 074 | 1 960 | 1 919 | 1 917 | ||
Other | 820 | 801 | 753 | 701 | 748 | ||
Average age of employees | 41.6 | 41.4 | 41.5 | 41.0 | 41.0 | ||
Permanent employees (%) | 93 | 93 | 92 | 89 | 89 | ||
Temporary employees (%) | 7 | 7 | 8 | 11 | 11 | ||
Full-time employees (%) | 98 | 98 | 98 | 98 | 98 | ||
Part-time employees (%) | 2 | 2 | 2 | 2 | 2 | ||
Employee turnover (resigned) (%) | 6.7 | 5.7 | 5.3 | 5.3 | 5.2 | ||
Net employment creation | -571 | 923 | -213 | -840 | -755 | ||
* Services ceased to exist as a separate business area at the end of 2018 | |||||||
Number of employees by employment contract and gender in 2019 | Permanent | Temporary | |||||
Total | 17 401 | 1 394 | |||||
Male | 14 533 | 1 111 | |||||
Female | 2 868 | 283 | |||||
Number of employees by employment contract and region in 2019 | Permanent | Temporary | |||||
Europe | 11 155 | 462 | |||||
Asia | 3 631 | 716 | |||||
America | 1 983 | 30 | |||||
Other | 632 | 186 | |||||
Permanent employees by employment contract type and gender in 2019 | Full-time | Part-time | |||||
Total | 17 035 | 366 | |||||
Male | 14 227 | 306 | |||||
Female | 2 808 | 60 | |||||
New employee hires in 2019 | Employees | Rate (%) | |||||
Total | 4 067 | 21.6 | |||||
Gender | |||||||
Male | 3 159 | 20.2 | |||||
Female | 908 | 28.8 | |||||
Age group | |||||||
< 30 years | 1 684 | 65.5 | |||||
30–50 | 2 071 | 17.7 | |||||
> 50 years | 313 | 7.0 | |||||
Market area | |||||||
Europe | 2 406 | 20.7 | |||||
Asia | 881 | 20.3 | |||||
Americas | 494 | 24.6 | |||||
Other | 286 | 35.0 | |||||
Employee turnover (resigned) in 2019 | Employees | Rate (%) | |||||
Total | 1 162 | 6.7 | |||||
Gender | |||||||
Male | 914 | 6.3 | |||||
Female | 248 | 8.6 | |||||
Age group | |||||||
< 30 years | 187 | 9.0 | |||||
30–50 | 774 | 7.1 | |||||
> 50 years | 201 | 4.6 | |||||
Market area | |||||||
Europe | 699 | 6.3 | |||||
Asia | 291 | 8.0 | |||||
Americas | 118 | 5.9 | |||||
Other | 54 | 8.5 | |||||
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 85% of Wärtsilä companies have an occupational health and safety committee covering in total 89% 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 2019 was 2.25, which was 10% lower than in the previous year. Wärtsilä regrets to report a contractor fatality at a shipyard in Vietnam. Contractor was removing a temporary steel structure connected to the hull of a vessel. During this removal operation, the structure suddenly fell down and sank to the bottom of the sea. One of the contractor employees was working on the top of this structure when the accident happened, and he did not manage to get out losing his life. |
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Injuries | 2019 | 2018 | 2017 | 2016 | 2015 | ||
Total number of injuries, employees | 397 | 398 | 446 | 439 | 461 | ||
Number of lost time injuries resulting in at least 1 day absence - employees, total |
85 | 90 | 88 | 95 | 104 | ||
Europe | 58 | 62 | 60 | 69 | 72 | ||
Asia | 16 | 14 | 9 | 17 | 15 | ||
Americas | 10 | 13 | 16 | 6 | 16 | ||
Africa | 1 | 1 | 3 | 3 | 1 | ||
Number of lost time injuries resulting in at least 1 day absence - contractors, total |
20 | 35 | |||||
Europe | 11 | 19 | |||||
Asia | 4 | 6 | |||||
Americas | 5 | 10 | |||||
Africa | 0 | 0 | |||||
Lost time injuries / million working hours | |||||||
Employees | 2.25 | 2.5 | 2.5 | 2.6 | 2.8 | ||
Contractors | 1.8 | 3.1 | |||||
Absence rate, employees | |||||||
Absence due to illness (% of total working hours) | 2.1 | 2.2 | 2.0 | 2.2 | 1.9 | ||
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 | 1 | ||
Employees | 0 | 1 | 0 | 0 | 1 | ||
Contractors | 1 | 0 | 1 | 1 | 0 | ||
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 2019, there were in total 10 cases of occupational disease diagnosed, which is equivalent to 0.27 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 2019 for male employees was 2.11 and for female employees 1.85. | |||||||
Training days/employee | 2019 | 2018 | 2017 | 2016 | 2015 | ||
All employees | 2.1 | 2.2 | 2.2 | 3.0 | 3.0 | ||
Managers and superiors | 2.1 | 2.9 | 3.5 | 3.7 | 3.5 | ||
White-collar employees | 1.9 | 2.1 | 3.0 | 2.9 | 2.9 | ||
Blue-collar employees | 2.3 | 2.1 | 2.0 | 3.0 | 3.1 | ||
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 | 2019 | 2018 | 2017 | 2016 | 2015 | ||
Coverage % | 91 | 96 | 96 | 96 | 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 | 2019 | 2018 | 2017 | 2016 | 2015 | ||
Male/female ratio (%) | 83/17 | 83/17 | 84/16 | 84/16 | 85/15 | ||
Executive positions globally: male/female ratio (%) | 83/17 | 87/13 | 89/11 | 89/11 | 89/11 | ||
Regional diversity | |||||||
Number of nationalities | 140 | 137 | 136 | 134 | 131 | ||
Number of employees per age group in 2019 | Employees | Ratio (%) | |||||
< 30 years | 2 574 | 14 | |||||
30–50 | 11 736 | 62 | |||||
> 50 years | 4 486 | 24 | |||||
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per age group in 2019 | BoM (%) | BoD (%) | |||||
< 30 years | 0 | 0 | |||||
30–50 | 29 | 13 | |||||
> 50 years | 71 | 88 | |||||
Percentage of members of Board of Management (BoM) and Board of Directors (BoD) per gender in 2019 | BoM (%) | BoD (%) | |||||
Female | 14 | 25 | |||||
Male | 86 | 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 | 2019 | 2018 | 2017 | ||||||
NET Promoter Score, NPS | 59 | 53 | 45 | ||||||
Sample | 2 787 | 3 356 | 4 875 | ||||||
Net promoter score scale is from -100 to 100. |