The number of full-time employees amounted to 14 329 (13 876) at the end of December. The number of full-time employees in the global delivery centres totalled 6 979 (6 643), or 48.7% (47.9) of all personnel.
The number of full-time employees was up by a net amount of around 450, including the acquisition of Avega. In IT services, the number of employees increased by over 150, including over 500 redundancies and close to 250 recruitments (net). Acquisitions and outsourcing agreements added close to 450 employees. Product Development Services recruited close to 300 employees, mainly in offshore locations.
The 12-month rolling employee turnover stood at 11.3% (10.5) at the end of December.
Salary inflation is somewhat on the rise, especially in Sweden. In offshore countries, salary inflation is clearly above the average. Group-level salary inflation is expected to be close to 4% on average in 2018. Tieto anticipates that more than half of the salary inflation will be offset by greater offshoring and management of the age pyramid.
In Finland, Tieto reached an agreement on the national Competitiveness Pact, effective 13 January 2017. Based on the agreement, annual working time increased by around two working days in Finland.
The dynamic business environment is placing high demands on competence development and good employee experience. The main drivers for competence renewal are the digitalization of society, emergence of new business models and managing the constant need to accelerate innovation and efficiency.
Tieto’s Human Resources (HR) department is responsible for developing people practices in Tieto. The HR function is led by the group-level Head of HR while country HR teams are responsible for country-specific HR operations. In addition, Business HR support is also assigned to the respective service lines and industry groups.
At Tieto, learning is seen as a continuous process that is necessary to keep up with the demands of the rapidly changing operating environment. In 2017, Tieto implemented the Learning as a Lifestyle initiative, inviting employees to be curious and constantly learn about the new trends in the IT industry. Three topics were chosen to start with: Design Thinking, DevOps and Advanced Analytics.
Other examples of development initiatives launched during the year are the Incubator programme focusing on experienced IT professionals in Poland and extensive trainee programmes in China, Poland and the Czech Republic targeted at younger generations. Overall, Tieto supports employees’ growth and learning needs with multiple options, including job rotation, on-the-job learning, self-study, working on different assignments, and through various types of training and e-learning.
To facilitate execution of the new strategy and operating model, Tieto is fostering an Open Source culture based on openness and transparency. Open Source culture contributes to employees feeling included, empowered and able to influence their work and build an inspiring working environment. Activity based office premises and online tools supporting flexible ways of working are two examples of how the company is striving to create a work environment supporting this culture.
In addition to the company’s development programmes, recruitments and the acquisition of Avega strengthened competences during 2017 across different businesses. New recruitments included roles such as industry and solution consultants, architects and software developers. Being a responsible, active and engaged corporate citizen in a larger ecosystem and collaborating with the company’s partners from suppliers to universities and industry networks enabled Tieto to bring in hundreds of new employees.
Employee engagement, as an outcome measure of the perceived Employee Experience, is measured on an annual basis through Tieto's internal employee survey VOICE. The response rate in 2017 was 84%. The overall employee engagement score, measured in autumn 2017, reached 73%, which is slightly better than the year before the score has seen positive development since 2014.
The Tieto Human Resources (HR) Policy serves as the overall strategic direction for Tieto’s people practices, and applies to all employees and operations globally. This policy states that Tieto supports and respect the principles set out in the United Nations Universal Declaration of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work.