Employees' opinions are heard
To increase the motivation of Outokumpu's employees and their level of job satisfaction, open and interactive dialogue is vital. To understand employees' needs better, O'People, the Group's personnel survey, was conducted for the fifth time in 2009.
One aim was to increase the survey response rate to 80%. As the response rate was 72.1% (2008: 75.5%, 2007: 64%) the desired level was not achieved, but as this was higher than 60%, the results can be considered reliable.
The overall O'People index for 2009 stood at 617 (2008: 621, 2007: 595) when our target for 2009 was 660. Even though our score declined slightly, it is encouraging to see that the index figure has remained almost unchanged during difficult times – a sign of the commitment and professionalism of Outokumpu people. The Leadership Index improved to 64 points in 2009 (2008: 63, 2007: 53).
Ideas for fast action – survey to engage personnel
In order to get employees' ideas and creativity in use a web-based survey was organized in the spring. Focus was on concrete ideas on how to get through the difficult times, on ways to cut costs and to improve overall performance. Ultimately, how we can be even stronger in the long-term. Altogether 8 613 improvement ideas and comments were received. The ideas ranged from big to smaller concrete improvements concerning energy savings, increasing videoconferencing, limiting travelling, cutting use of consultants and reviewing service level of health station. During the summer all units went through the ideas concerning their respective units and made their action plans. Actions and achieved results are reported to the Group Executive Committee, and successes and best practices are also presented on the intranet.
Spontaneous comments from employees
It seems that the awareness of corporate responsibility issues within our personnel has grown. Questions and spontaneous comments have arisen on issues such as air travel carbon offsetting, selling stainless steel to risk industries or eating tuna fish. Internal corporate responsibility updating sessions were started in management team meetings in Finland and in Sweden. These sessions will continue in 2010. Towards the end of the year, our personnel also got the possibility to comment on internal news on the intranet. This has been quite actively used and useful comments have been received through this channel as well.
Performance management supports our strategic goals
Becoming the undisputed number one in stainless steel requires clear direction, world-class operations and motivated people. High-quality leadership and a strong Performance Management process help the Group achieve this.
Performance Management, a 365-day process based on dialogue, focuses on improving business performance by enhancing employees' performance and levels of competence. The Performance and Development Dialogue is an important component in Performance Management. The dialogues consist of a formal annual review of each individual's performance and development against established targets in the preceding 12 months, together with development of a new Performance and Development plan for the next 12 months. Almost all Group employees participated in Performance and Development Dialogues in 2009, but the goal of 100% coverage was not achieved.
Both the Performance Management and the Performance and Development Dialogue processes were revised in 2009. The improved approach to Performance Management will be applied from 2010.
Cooperation between management and personnel
Outokumpu's Personnel Forum is a joint consultative body which provides an information channel between company personnel and management. Established in 1994 in response to a European Works Council Directive, it includes 21 personnel representatives from the Group's European operations, people representing the HR function and members of Outokumpu's senior management teams. Usually convened once each year, the 2009 Personnel Forum was held in Espoo, Finland. Topics included the renewed People strategy and the processes of culture change involved in operating as "one company".
The Personnel Forum appoints a working committee which is responsible for ongoing cooperation between Group personnel and management. During 2009, this committee held six meetings with members of the senior management team, including the CEO.