Committed employees

The capacity of PostNord managers to lead during change, in combination with employee commitment, is crucial to the success of the structural changes that are underway – and for PostNord’s long-term success.

Production-intensive business

The total average number of PostNord employees in 13 countries is 39,305, of which 98.4% are in the Nordic countries. The majority work as mail carriers, drivers or at a mail or logistics terminal. Every day, these employees ensure that millions of letters, parcels and other mail items reach the right recipient on time. There are also specialist functions within the group such as IT, sales and other administrative functions.

Management skill is a prerequisite for success

Like many other national postal operators, PostNord is carrying out extensive operational changes – changes that are crucial in term of meeting the market trend. Good management is vital for the structural changes that are underway and for PostNord’s continued development and long-term success. Managerial expertise in guiding change is a critical factor. Several important training initiatives were carried out during the year to increase awareness among managers and support staff in terms of how people react to change.

Management also affects employee participation and commitment levels. PostNord focuses on team-based working practices to increase commitment and broaden skills. The group’s managers and leaders are responsible for creating favorable conditions for teamwork.

Systematic leadership development

In order to develop and secure long-term leadership for PostNord there is a group-wide process for leadership planning, the Management Planning Process, for the evaluation and development of managers. Through this process the group has defined behaviors that should characterize all managers’ day-to-day leadership. Managers should be clear, should involve others, take responsibility and deliver value. These criteria form the basis for managers’ evaluations and continued development initiatives.

Skills development

Part of PostNord’s vision is to be an attractive and stimulating workplace. Employee skills development is an important factor in ensuring the business’s long-term needs. Managers and employees agree on an individual development plan during annual career development discussions. In this year’s employee survey, 82 (79)% of respondents answered that they had had a career development discussion. 78% indicated that they had formulated a development plan.

PostNord offers a number of leadership training opportunities and developmental initiatives to managers, employees and various types of specialists. Some of these training initiatives are oriented towards a particular profession, such as drivers.

Skills development is more than just formal training or coursework. Learning is done to a great extent during day-to-day work activities, through new working methods or work assignments and through feedback from managers and colleagues.

Diversity and equality

PostNord employees represent many different nationalities, come from diverse religious backgrounds and speak many different languages.

PostNord enriches its workforce through local initiatives that welcome people who are not yet established in the labor market.

PostNord has zero tolerance for discrimination, and managers are responsible establishing the zero tolerance policy among all employees.

Revised guidelines for the group’s diversity initiatives will be launched in 2014.

Long-term workplace equality target

PostNord’s employees are 34% women and 66% men. Wage mapping is conducted on a regular basis and produces data on gender-based wage differentials. This year’s mapping showed that PostNord’s male employees earn an average of 3.2 (3.3)% more than women in corresponding positions. Read more on page 64.

In order to accelerate gender equality, PostNord established a target in 2010 to have 40% female managers and leaders within the group 2015. At year end, the share of female managers was unchanged at 29 (29)%.

In all countries, where it is allowed by law, the group in recruiting must select a representative for the sex that is underrepresented in a unit when two candidates have equal qualifications. At least 50% must be women among participants in a talent program for supervisors and specialists.

When authorized by law, selections made in all countries under the group’s recruitment processes must be made in favor of the underrepresented gender when candidate qualifications are otherwise equal. The group’s development program for managers and specialists includes a minimum target of 50% female participants.

To accelerate target achievement, it was determined in December 2013 that all managerial, supervisory and project director jobs will be advertised both internally and externally. It was also determined that the final candidates for each recruitment must include both women and men. Recruiting process compliance must be reported and monitored by the management group and reported to the group’s HR function. As of 2014, every manager’s individual goal contract must include targets for the number of women in managerial positions within their area of responsibility.

The Marianne Niverts scholarship was established in 2009 to encourage female leadership and bring more women into leadership positions. The prize money must be used for “individual development efforts.” The scholarship will be awarded through 2014.

Health and work environment

Many professional roles in PostNord are physically demanding, such as jobs in the group’s terminals. Stress is a further challenge for many employees, especially in a time when the group is undergoing extensive structural changes.

PostNord has worked actively for many years to improve the health and wellbeing of its employees. In 2013 the group focused on further developing methods, work routines and tools for early and proactive prevention. One example of proactive work is the new parcel and pallet terminal in Swedish Veddesta, where new technology reduces manual lifting.

The Posten Fritid staff fund in Sweden is included in PostNord’s employment benefits and promotes health, improved satisfaction levels and a sense of community. Activities supported by Posten Fritid include the Sports Association, with 94 local sports clubs and over 13,000 members. In Denmark, a Sports and Recreation Association has around 40 local clubs and 1,500 members. Strålfors has a Recreation Association that involves many employees.

In 2013, sick leave at PostNord was 5.0 (4.9)%. The group’s goal is to decrease sick leave to below this level. A one percent reduction in sick leave in the group, all else being equal, would yield a positive effect on profit of SEK 115m.

Responsible conversion

PostNord is converting its operations to make them more efficient and profitable. The conditions in the industry are changing at a rapid pace. The conversion of the group affects its staffing needs, and sales people and IT specialists are examples of the expertise we require. We will also need more truck drivers to handle increased numbers of parcels. At the same time fewer letters are being sent, which means that we are reviewing the number of personnel in mail carrying.

PostNord intends to act both efficiently and responsibly in all conversion of operations. The conversion program that the group is offering in conjunction with redundancy, or for employees who leave the company for medical reasons, includes training, courses, relocation support and coaching.

Compared with the previous year, the average number of employees in the Nordic region decreased by 475. The number of employees in the Nordic region at year-end decreased by 1,337. There have been large staff reductions in existing operations, while the group has acquired several businesses. Of the employees who ended their employment during the year, 1,006 were made redundant, 3,067 left of their own volition, and 2,736 employees were recruited or acquired. For more information on the average numbers and the number of employees, see pages 64–65.

Union cooperation

PostNord’s management and the unions that represent our employees realize the importance of close and trusting cooperation. Employee participation rights are based on each country’s labor law legislation and are regulated at the national level. PostNord’s employers in all business areas and at the group level cooperate and negotiate with the unions. All employees in the Nordic region are included in collective agreements that are signed at the national level.

The Collaboration and Employee Participation agreement specifies that the unions should receive early information and have the opportunity to influence negotiations and collaboration in order to increase understanding of, and participation in, the changes taking place at PostNord. During 2013, collaboration in Sweden focused on establishing the new collective agreement, while the focus in Denmark and other parts of PostNord was on conversion and reducing personnel.

Employee survey takes the temperature

As a complement to the daily dialogue, we annually conduct an employee survey, FOCUS, in which employees express their views on their own employment and on the leadership. The response frequency among group employees was unchanged from the previous year at 87%. The result is expressed as the employee index (MIX) and the leadership index (LIX).

This year’s survey showed a slight positive increase in MIX and LIX. The MIX increased from 63% to 64% and the LIX from 65% to 66%. All supervisors and leaders in the group must discuss the survey with their employees and present activity plans based on the outcome. In the survey 64 (61)% of employees indicated that they worked using the activity plans.

The survey shows that employees’ confidence in their line managers increased during the year. At the same time, confidence in PostNord’s top management decreased. Confidence in the future, and in their own personal development within the company, remained at a low level. 44 (44)% of employees responded that they have good opportunities for development within the group. As one consequence of the survey results, PostNord will focus more intensely during 2014 on communicating and anchoring its group strategy and goals as well as on what is happening within the company. The group will also make clear the professional development and career opportunities that exist within the group.

Dialogue with employees yields results

During 2013, employee dialogue continued as part of PostNord’s program of internal mobilization. The purpose of this program is to increase knowledge of the ongoing conversion of the group. The focus of this year’s dialogue was group values. Read more on page 48.

The employee dialogue seems to have had a positive effect in Strålfors, for example. The employee index (MIX) at Strålfors in 2013 was 74 (72)%, which is 10 percentage points higher than the group average. The leadership index was 73 (70)%. Strålfors also had the lowest level of sick leave in the group; 3.1%, in comparison with the group average of 5.0%.

“During the year Strålfors supervisors and leaders have focused on conducting dialogue with employees. We have strived to go out into the operations and discuss visions and targets, customer focus, and working processes, along with satisfaction and health and safety, which has yielded results. I have myself also been out and met all the employees and discussed the future, the vision, and where we are headed”.

/ Per Samuelson, head of Strålfors