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UPM Annual Report 2016
UPM Annual Report 2016
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In brief
Strategy
Businesses
Governance
Accounts
Stakeholders
Developing a safe and inspiring working environment in which
people can participate and grow is important for UPM. UPM aims to
provide an environment in which employees are capable of achieving
business success. UPM encourages its employees to pursue
professional growth and supports them in learning and developing
their skills further.
The company uses the 70/20/10 model based on the assumption
that 70% of learning takes place on the job, 20% comes from learning
from others and 10% comes from development programmes.
UPM systematically uses a performance management process
(PPR) to set individual strategy-related targets and create
development plans for all employees globally. The PPR provides
an opportunity for both managers and employees to give and receive
feedback on performance and behaviour based on UPM values.
Over the past few years, UPMhas developed its performance
appraisal process by emphasising managers’ roles in leading
performance and giving feedback. Managers are expected to focus
on performance management and guiding their teammembers to
reach agreed targets. UPM’s target is that all employees have a target
setting and development plan by 2030.
In 2016, UPM started to train its key employees on human rights
and continued its human rights assessment by initiating a global
evaluation focusing on activities at UPM sites, community relations
and local sourcing.
Engaging employees to develop the workplace
The UPMEmployee Engagement Survey (EES) invites all employees
across the company to evaluate different aspects of the working
environment every year. The survey measures development using
three main indices: Employee Engagement, Manager Effectiveness
and Occupational Health and Safety (OHS).
In 2016, 83% (79%) of UPM employees responded to the survey,
which illustrates a high level of willingness to participate in the
development of UPM as a place to work.
All UPM-level indices improved. The Engagement Index has
increased three percentage points for three consecutive years.
The Engagement Index increased to 69% (66%), but is still behind
our 2030 target to be in the top quarter of companies. Favourable
scores in the OHS Index increased to 81% (80%). Favourable scores
in the Manager Effectiveness Index have steadily improved over the
years (from 76% in 2015 to 78% in 2016), and remain at a high level.
All EES items are showing a positive trend and the scores for
questions regarding our future and vision in particular have increased
significantly. The EES provides an opportunity for annual monitoring
of long-term trends and the progress of agreed development activi
ties. The progress is followed up and evaluated in order to define
further improvements both at organisational and team level.
UPM-level focus areas for development are diversity and inclusion
as well as the growth and development of UPM employees.
Apprenticeship combines learning and working
UPM’s apprenticeship programmes in Finland and Germany are a
way to ensure the required level of expertise for future employees
The programmes are typically targeted at shop floor positions in
production or maintenance. UPM conducts the programmes together
with regional vocational schools. In Finland, some 100 people have
been included in the apprenticeship programmes annually. Most
of the graduated apprentices have continued to work at UPM.
UPMhas also launched a UPMBioforce Graduate Programme
for young professionals. The programme will begin in the autumn
of 2017.
In 2016, the main focus areas in UPM’s People Strategy were aiming higher
in business performance and value-based and inspiring leadership, as well as
continuously challenging the status quo to develop the company.
Our
people
Encouraging growth
CONTENTS
PERSONNEL BY COUNTRY
31 Dec.
2016 2015 2014
Finland
7,347 7,464 7,855
Germany
4,262 4,591 4,586
Russia
793
798
787
United Kingdom 752
763 1,098
Poland
608
535
499
France
505
585
785
Austria
483
518
549
Estonia
250
217
204
Spain
105
109
109
Italy
52
55
61
Turkey
42
42
40
Belgium
34
31
28
Ukraine
26
27
25
Sweden
25
24
27
Other Europe
80
79
86
China
1)
1,790 1,546 1,424
United States
2)
970 1,070 1,087
Uruguay
580
573
565
Malaysia
140
122
175
South Africa
94
78
67
Mexico
92
81
50
Brazil
56
58
89
Australia
50
50
61
India
40
42
39
Rest of the world 134
120
118
Total
19,310 19,578 20,414
1)
Incl. Hong Kong
2)
Incl. Madison 50%
of permanent employees
had a personal performance
review with their managers
87%
TARGETS
2030
favourable responses
to Employee Engagement
Survey’s diversity question
79%
TARGETS
2030
UPM Biorefining 14%
Other operations 2%
UPM Plywood 13%
UPM Paper ENA
45%
UPM Energy 0%
UPM Raflatac
16%
UPM Specialty
Papers 10%
UPM’s personnel by business area 2016
12 13 14 15 16
08
11 10 09
80
60
40
20
0
■
Response rate (%)
OHS Index
Manager Effectiveness Index (MEI)
Employee Engagement Index (EEI)
Employee Engagement Survey
(EES) results, Trend 2008–2016