Personnel

Human resource management

As an employer, Finnfund acts responsibly and perseveringly, encouraging its personnel in continuous learning and professional development.

In 2011, Finnfund renewed its internal management system by clarifying the operating methods of the Management Team and Investment Committee and by making their work more systematic. In accordance with new policy, the Management Team makes the most significant decisions concerning personnel policy, while operative responsibility lies with the Director of Administration. The new operating methods were introduced in late 2011, and 2012 was a time of establishing them in practical work.

In 2012, the Management Team carried out its first self-assessment with the help of an external consultant. The results are used to further improve the quality of work both within the Management Team and among the company’s managers and supervisors. This procedure has been set to continue in the coming years.

When necessary, supervisors are offered training and coaching opportunities in order to support them in their duties.

 

Personnel goals

Every year, Finnfund carries out a cooperation procedure in order to prepare a personnel plan and training goals for the coming year. The company also engages in annual development and goal-setting discussions with all employees, identifying their training needs, following up on the achievement of the previous year’s goals and setting new goals for the coming year.

In addition, a Personnel Development and Planning Day is held once or twice a year for the entire personnel with the aim of discussing current topics and promoting interaction between the company’s personnel and management.

 

Number and structure of personnel

At the end of 2012, the company employed 52 people. During the entire year, the average number of employees was 49. The entire personnel of the company is located in Finland in the centre of Helsinki.

At the end of 2012, Finnfund employed 46 permanent employees and six temporary and part-time employees. Some employees are both temporary and part-time.

During 2012, two permanent employees resigned and three permanent employees were hired by Finnfund. Therefore, exit turnover was approximately 4 per cent and entry turnover 7 per cent. Temporary employees are not included in these figures.

Based on the duration of employment in years, permanent employees fall into the following categories:

0-1	2-5	6-10	11-15	16-20	21-25	26-30
3	14	12	4	2	4	4

The average duration of employment is 10 years for permanent employees.

In terms of age structure, permanent employees fall into the following five-year age brackets:

20-24	25-29	30-34	35-39	40-44	45-49	50-54	55-59	60-
0	3	5	7	5	8	7	5	3

The average age of employees is 45.

The company did not reduce the number of its employees or make any other adjustments in 2012.

In 2012, personnel expenses amounted to EUR 4.8 million, including pension expenses, other social security expenses and voluntary personnel expenses. The company paid wages and salaries totalling EUR 3.5 million in 2012.

 

Equality

At the end of 2012, the company employed 37 women, accounting for approximately 71 per cent of all employees, and 15 men, accounting for 29 per cent of all employees.

Half of the members of the company’s Board of Directors are women and the other half are men.

At the end of 2012, three members of the company’s internal Management Team were women (37.5 per cent) and five were men (62.5 per cent).

Finnfund has an equality plan that emphasises the equality and parity of employees. The fulfilment of the obligations set forth in the Act on Equality between Women and Men is a part of Finnfund’s personnel policy and operating culture, both of which are based on transparency, justice, equality and the protection of privacy.

 

Remuneration

Finnfund’s remuneration system consists of three parts: basic salary, fringe benefits and short-term incentives.

At Finnfund, payroll primarily consists of fixed monthly salaries based on the complexity of the duties and the employees’ competence and performance. All duties are classified into job grades every few years, and a pay comparison is conducted annually with an external consultant in order to assess the market level.

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The company has an incentive system covering the entire personnel, with the exception of the Managing Director. Employees can receive an incentive bonus corresponding to, at most, one month’s salary if the annual targets are met. The incentive system is based partially on the achievement of company-level goals and partially on function-specific goals. In addition, the company uses discretionary personal incentives that may correspond to an average of one week’s pay on an annual level. The Board of Directors decides on the incentive system and its key criteria on an annual basis.

In terms of cost effect, the bonuses paid in 2012 amounted to approximately 5.9 per cent of the entire payroll.

 

Competence development and training

The entire personnel of Finnfund participates in development discussions every year.

Development discussions are carried out in spring, by the end of May, using a special form developed for this purpose. The discussions focus on matters related to professional competence, quality in work and work community skills. They also involve assessing the achievement of the personal goals set in the previous year and setting new personal goals for the coming year.

During the development discussions, all employees have the opportunity to provide feedback on the behaviour and management skills of their supervisor, either directly to the supervisor or to the Director of Administration or the Managing Director.

Finnfund perceives training as a means of implementing its personnel policy and achieving the set goals, and therefore the company has adopted a positive approach to training its employees and continuously developing their competence.

New employees are inducted into the organisation and their duties as they begin working at Finnfund (induction training). During employment, the company aims to maintain and develop the competence of its personnel by offering different types of supplementary and language training as well as training related to current affairs. Training goals and areas of focus at company and function level are reviewed annually as a part of the cooperation procedure and, more specifically, the preparation of the personnel plan and training goals. The training needs of individual employees are addressed by the employees and their supervisors in annual development discussions, while also agreeing on personal training plans, if necessary.

 

Occupational well-being, health and safety

Finnfund always pays attention to its employees’ well-being and ability to cope at work as well as their job satisfaction. Job satisfaction and work atmosphere are evaluated from time to time, and the feedback is used in planning operational changes.

The work atmosphere was evaluated in the autumn of 2010, and the results indicated that the job satisfaction of Finnfund’s personnel was somewhat higher than the financial sector average. The job satisfaction survey was reformed in 2012 in cooperation with the company providing occupational health care services. Based on numerical review, the results are slightly above the reference material used, but there are also some clear areas for development. These areas are improved systematically, and progress is monitored at regular intervals by conducting a workplace well-being survey.

The Director of Administration, acting as a labour protection officer, is responsible for occupational health and safety management together with the rest of the company’s management. The labour protection committee convenes to deal with matters falling within its field of competence.

The labour protection organisation assessed the risks of the workplace during 2010 and 2011. It was concluded that the most significant safety risks were related to the safety of travel, the health risks associated with frequent travel and issues related to ergonomics. In the same context, measures were agreed in order to manage and prevent these risks.

The company updates its workplace risk assessments from time to time and aims to respond to changes in risk levels as well as possible new risks without delay.

The personnel has been provided with training on issues related to travel safety. The company has also provided more information on the matter on its intranet.

In the spring of 2012, the company conducted an ergonomics survey and offered the entire personnel an opportunity to receive personal advice related to ergonomics. Ergonomics is reviewed periodically when new employees join the company or changes are made to workstations.

The employer is not aware of any accidents during working hours or otherwise related to work. In addition, there have been no deaths related to work.

Finnfund monitors the number of sickness absences, developments in the number of sickness absences and the identified reasons for sickness absences continuously in cooperation with the company providing occupational health care services. As a whole, the number of sickness absences is at a regular level and has not changed dramatically over the years.

Finnfund encourages its employees to look after their health and well-being by offering more comprehensive occupational health care services than what is required by law and by supporting its employees’ hobbies related to sports and culture.

The occupational health care services include the limited right to seek specialist medical care and dental care as well as reimbursement for prescription medicine expenses, among other things. Furthermore, people travelling frequently for work purposes have the opportunity to have regular health examinations in order to prevent travel-related health hazards.