Our HR work supports the turnaround

In 2014, we focused on change support for personnel. As our financial situation was challenging, our HR work concentrated on measures that supported the efficiency improvement targets defined in the strategy.

We want to be an attractive and valued workplace for construction industry professionals, offering interesting and challenging tasks as well as career development opportunities. In 2014, our aim was to support the Group’s cost-savings targets and operational efficiency improvement initiatives by creating tools and operating models for all HR work.

We invest in target setting and bonus harmonisation

Target setting and performance discussions are an important leadership and management tool for us. During the discussion, an employee and his/her supervisor agree on the employee’s targets as well as the means for achieving them. The discussions clarify to Lemminkäinen employees their role in the implementation of the strategy. According to our experience, the discussions have a clear impact on personnel satisfaction, efficient organisation of tasks and labour productivity.

In 2014, we provided training on target setting and performance discussions for supervisors in different operating countries. In 2014, approximately 70% of Lemminkäinen employees had a target setting and performance discussion. Our goal is for our entire personnel to have an annual target setting and performance discussion. The implementation of the model will continue in 2015.

We also strive to continuously develop our incentive systems so that they support the achievement of our targets more effectively. In 2014, we modified the annual performance bonuses practices so that the targets defined in the strategy are emphasised to an even greater extent than before. In 2015, our goal is to harmonise annual performance bonus practices in all countries and to create a common project bonus model.

We support supervisors and ensure the availability of the right kind of competence

In 2014, we continued the clarification of supervisory roles and tasks. We defined the supervisory tasks and revised the organisations so that each supervisor has a reasonable number of employees. In order to better support the performance of both the manager and the employees, we have focused on optimising the ratio of supervisors and employees.

In 2014, we also investigated which kind of talent and competence we need in order to achieve our strategic targets. The information we obtained about both organisational and individual-level expertise needs, gives us a good foundation for future competence development.

As part of the Deliver 2014 cost-saving programme, we did not conduct an employee survey. The survey will be conducted in 2015.

We develop our employer image

The aim of developing Lemminkäinen’s employer image is to ensure that our current employees enjoy their work and are satisfied with Lemminkäinen and that the company is an interesting employer option for future employees so that we have a sufficient number of experts in the long term.

In Finland, we monitor our external employer image through the annual employer image survey conducted by T-Media. Awareness of Lemminkäinen among construction industry students and graduates is high: 92–96% of the respondents know Lemminkäinen as an employer. According to the survey, approximately 34% of the respondents are interested or somewhat interested in Lemminkäinen as an employer.

In Finland, we searched for summer employees through a recruitment campaign and received more than 3,000 applications. We want to ensure that Lemminkäinen’s summer employees have a practical and enjoyable work experience. Therefore, in 2014 we participated again in the Responsible Summer Jobs (Vastuullinen kesäduuni) campaign, which challenges employers to offer young people more – and better – summer jobs. In 2014, Lemminkäinen had about 250 summer employees working in Finland.

The Finnish National Skills Competition Taitaja is the biggest annual event for vocational students in Finland. The competition is intended for vocational students aged 20 or younger. We have sponsored the Taitaja competition for several years, and in 2014 we were one of the main partners of the competition, held in Lahti, Finland.

Personnel negotiations in spring 2014

In spring 2014, we launched the Deliver 2014 cost-saving programme to improve our competitiveness. The programme included personnel negotiations or other similar measures that started in the second quarter in all our operating countries. The personnel reductions related to the negotiations conducted in 2014 have, for the most part, been realised.

Furthermore, 1,550 employees in Finland transferred to Are in conjunction with the divestment of the technical building services business. The divestment of the Lemcon Networks telecommunications network business has reduced the number of employees in other countries.

During 2014, we offered our personnel support for handling and coping with change. For example, in Finland we arranged group guidance as well as outplacement coaching for dismissed personnel and provided supervisors with guidelines to ensure appropriate change management skills.