Essity offers its employees development opportunities and remuneration based on market rates. Remuneration comprises salary, pension and other benefits. Employee remuneration is to be competitive. Essity follows local remuneration structures, provided they do not conflict with internationally established rules for minimum wages and reasonable compensation.
Essity’s global human resource strategy aims to secure long-term capabilities and ensure that Essity is a safe and healthy workplace based on ethical business practices and perceived as a great place to work.
Secure access to the right people and capabilities
Essity recruits and develops employees in line with its strategic workforce plan. This plan is based on future capability needs and demographics, and defines the strategic areas and activities Essity will focus on to strengthen its reputation as an employer and its market position.
All employees are to have an individual development plan that is defined and followed up during annual performance reviews. The reviews identify the capabilities necessary for employees to achieve stated targets. The employees and managers agree on the manner in which these skills should be secured, primarily through internal development opportunities. The objective is to follow up the performance of every employee twice a year.
A safe and healthy workplace based on ethical business practices
Essity works proactively with employee health and well-being. Each business unit is responsible for formulating a health program that suits its own operations.
Workplaces for all ages
With an aging workforce in some markets, Essity is facing new challenges since absence related to musculoskeletal disorders increases with age. This insight has resulted in Essity creating a workplace program containing technical improvements and attitude changes to create a more ergonomic work environment and production lines.
Transparent communication is fundamental to the trust between Essity and its employees, as well as their representatives. Essity recognizes the right of all employees to join unions and to partake in union activities.
European Works Council
The European Works Council (EWC) represents about 20,000 of Essity’s employees. Essity meets the EWC and other employee representatives on a regular basis to inform them of, and discuss, matters such as the Group’s performance and earnings, as well as health and safety and employment terms and conditions. The aim is to communicate changes well ahead of time.
Essity also has an agreement with IndustriALL Global Union. A new agreement between Essity and IndustriALL is under negotiation and is expected to be completed in the first quarter of 2018. IndustriALL represents 50 million employees in 140 countries in the mining, energy and manufacturing sectors.
Alternative forms of dialogue
In parallel with Essity’s expansion, the Group encounters new circumstances and challenges, including challenges pertaining to its employee dialogue. When there is no union representation, Essity establishes other channels where possible, such as workers’ councils.
Essity supports Global Deal, a global partnership with parties in the private and public sector. The aim of Global Deal is to improve the dialogue between parties in the labor market and national governments to improve employment conditions and productivity.
The notice period in connection with organizational changes in the Group varies, but averages about five weeks. In connection with organizational changes, Essity works to support the employees affected. This is done through discussions with labor unions at an early stage and by preparing a social action plan that is adjusted to local conditions. The action plan normally includes assistance in seeking employment and/or education. Other tools include severance pay, early retirement and financial incentives for those who find new jobs before the end of the period of notice.
Health and safety
OHSAS 18001 certification
Essity implements the international OHSAS 18001 (Occupational Health and Safety Assessment Series) standard to ensure that uniform processes are deployed across the Group, and that Essity units continuously improve their workplace health and safety. OHSAS specifies requirements for an organization’s occupational health and safety management systems.
Safety policy and governance
Essity has a Group Health and Safety Instruction and the Group’s governance system encompasses risk assessment, training, targets and monitoring in the safety sphere. In addition, a reference team has been in place since 2009 with responsibility for coordinating Group health and safety matters. All Essity facilities have procedures in place to increase workplace safety.
Accident and risk/near miss reporting
Reliable near miss and accident reporting is key; it is vital that Essity analyze both serious and less serious occurrences to ensure that they are not repeated.
Essity has a reporting system for accidents and risk observation in place. Employees use it to report accidents and close calls, meaning events that could have led to an accident. The system significantly improves Essity’s ability to perform risk assessments, analyze and improve working methods, and continuously monitor performance.
In the event of a critical incident, information is communicated to the entire Group, enabling all units to gain access to the recommendations and learn from the occurrence. Another part of the unit procedures involves gathering data from the reporting system on a weekly basis so that safety can be addressed at staff meetings. The system also allows for best practices to be disseminated throughout the Group.