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RESPONSIBLE EMPLOYER

Cargotec’s Code of Conduct and employee policy set the basis for our labour management and recruitment practices.

We are committed to international human rights agreements in our operating principles and staff policy and we want to ensure that our employees and candidates are treated with fair practices regarding compensation, career development as well as recruitment.

The implementation of the Code of Conduct and employee policy is conducted for example through HR tools and processes and with personnel trainings. We train our personnel in human rights and equality issues as part of our general Code of Conduct training processes. Additionally, all employees have the possibility to anonymously inform about possible non-compliances through the Cargotec global SpeakUp line. In 2017, a dedicated organisation was formed to support the business in ethics and compliance issues.

Leadership and employee engagement

We want to be a responsible employer. We conduct our Compass employee engagement survey annually with which we evaluate our employees’ opinions on leadership, team climate, engagement, and insights on employees views about Cargotec social responsibility.

In 2017, the annual Compass employee engagement 2017 survey had a participation rate of 86% (2016: 88%). The leadership index in 2017 was 71% (2016: 68%), while the team climate index was 76% (70%), the employee engagement index 69% (69) and social responsibility index 79% (79%). Each index represents the percentage of respondents who selected the top two most favourable responses (strongly agree and agree). Based on the results of the survey, managers in each business area organise feedback sessions and draw action plans with their teams. The progress of 1–3 key action points is followed throughout the year.

The results from Compass survey guide the development of our HR strategies. We believe that with good leadership we can increase the engagement and performance of our teams and reaching our targets; hence leadership development is set as one of our must-win battles in our current strategy. During 2016-2017 we have conducted an intensive people leader development programme, through which we aim to establish a more uniform leadership culture at Cargotec. Our leadership is built on three main characteristics: Lead with purpose, Empower for performance and Collaborate to win.

Almost 1,300 leaders participated in leadership training programmes at all targeted organisation levels. All managers are part of a continuous leadership and team effectiveness improvement process, and a continuous development and measurement of company leadership is an ordinary practice. All processes support improvement in leadership performance, personal development plan completion and employee engagement survey quality rates. The move to a more collaborative work culture is proceeding as Google tools were taken into use in the whole company in 2017.

Harmonised processes and tools

Our online Human Resources Information System ZONE provides access to harmonised HR policies, processes and tools across the entire company. ZONE is a transparent tool that helps us to ensure a better quality of HR data and personnel management methods. ZONE is also the main platform for planning and analysing our personnel-related activities, such as an annual performance management process, people and organisational development needs, both external and internal recruitment, salary and incentives, including bonus programmes, and ensuring a fair and equal treatment of our employees globally. By leveraging ZONE in all our recruitment efforts, we expect to significantly improve our internal job rotation to build up engagement

Our performance management is based on the performance and development plan (PDP) concept and process. PDP is our primary leadership process that connects strategy to individual development plans and the targets set for our employees. It is a systematic and regular process used in our personnel performance and career development review, during which the principles of our Code of Conduct are also regularly discussed. Through PDP, employees participate in and contribute to organisational improvement. In 2017, the PDP completion rate was 93%.

Cooperation and dialogue

The aim of internal cooperation is to improve the workplace atmosphere and the commitment of Cargotec's employees to their work and to strengthen the company’s fundament for successful operations. A fruitful cooperation is built on the efforts of all the employees to create an open dialogue and relations based on trust.

Based on statutory employee information and consultation requirements, Cargotec's employee cooperation system has been developed together with employees. Cooperation is organised at corporate and location level.

In Europe, the corporate cooperation forum is the annual Cargotec Personnel Meeting, attended by 11 employee representatives from 11 countries in 2017. This event represents an excellent opportunity for employee and management dialogue and informal interaction. Employee questions are collected and brought to the meeting by the country representatives and answered by Cargotec management. The minutes of the meeting including questions and answers are distributed via the company intranet to all personnel. A working committee consisting of the country representatives of the Cargotec Personnel Meeting also meets several times a year, to ensure the continuity of the company-employee dialogue.

Other country-specific and local cooperation bodies convene in line with each country’s established practices and legislation. Global personnel webcasts held in conjunction with the publication of interim reports provide a channel in which personnel can discuss business issues with senior executives. Questions may be submitted in advance via the intranet, and participants can also ask questions during the event. The PDP discussion held twice a year allows each employee to engage in systematic dialogue with his or her immediate manager.