New strategy focused on motivation-based leadership

A new human resources (HR) strategy was developed for the Group during the year. The strategy is based on cross-boundary approaches directed at processes rather than business areas. Human resource work is being made more efficient with more Group-wide solutions.

The HR policies and approaches take into account the fact that Södra is not only active in Sweden, but also in several other countries. The employees mainly contribute expertise, which is the sum of the individual’s knowledge, will and abilities. The new strategy emphasises the significance of motivation-based leadership in order to increase the "will component". The strategy will be introduced during 2011-2014.

An attractive company

Södra should act in a respectable manner in all situations, both in the company and outwards towards the surrounding world. The employees should show care and respect for each other. Bullying and harassment are unacceptable.

The value words of whole, closeness and movement are the pillars of the HR strategy. Södra is one company and every employee should be aware of his or her significance to the whole. The meetings and close relationships strengthen the company and the employees in a corporate culture that stimulates change and innovation.

Strategic HR objectives have been established. Södra should be attractive to the employees of today and tomorrow, who should be able and willing to become involved, contribute and grow, while seeing the entire Group as a possible arena in doing so. Södra should provide positive, safe and stimulating working conditions.

The HR strategy stands for a "lifecycle perspective" in the employees’ relationship to the company through the emphasis on objectives and processes for all stages of employment: attract, recruit, introduce, develop/retain, reward and resign/leave the company.

Attract

Södra’s attractive employment offering is being made increasingly uniform to attract new and existing employees. The offer should be clear and communicated in a manner that emphasises Södra as an attractive employer.

In order to reach and attract new employees, Södra participates in exhibitions, work market days and similar activities. This participation will be broadened and not focus as much on Chalmers University of Technology and the Lund University Faculty of Engineering, but rather be based on the identified future requirements.

Södra supports local clubs in the locations where it operates, as well as associations that are active in areas such as preventing drug abuse and bullying. Representatives of the company provide information in schools about the business, either through their own visits or in cooperation with other players in the industry. Södra also offers work experience positions to young people and provides thesis opportunities.

Recruit

An objective in the recruiting work is to increase internal mobility, and in terms of managerial positions, three of four future managers should be recruited internally. External recruitment is always current and, as a part of this, eight trainees were recruited during the year. Recruitment services purchased externally will be reviewed, and a study is under way regarding the possibility of performing tests in the recruitment process within the company instead of externally.

Diversity is an area of improvement potential. The forestry industry is traditionally dominated by men and Södra works to attract more women to the company.

Introduce

All new employees are given the opportunity to attend a Group introduction programme. During the year, 377 employees participated in one of the eleven introductions arranged. In the course of one day, they had the opportunity to meet Group management and co-workers from the Group. Beginning in 2011, the introduction will cover two days, with the second day being focused on productivity issues.

Develop and retain

In order to develop and retain the employees, Södra is investing in two new Group-wide management training programmes. Recruitment across business area boundaries is encouraged in order to offer development and new challenges. To attract and motivate employees, there is a "Talent Management Process" mainly directed at internal recruitment of managers.

Talks with employees and employee surveys are important measures for creating a positive working climate and job satisfaction in the company. The talks between managers and employees are arranged annually, and employee surveys are conducted once every two years. The results form the basis of measures implemented at the workplace. A new survey is planned for 2011.

Reward and resign

A new Group-wide pension policy offers attractive pension and insurance solutions for all employees as a part of the company’s reward process. To improve the efficiency of the salary process, one salary centre has been established in Sweden and one in Norway. A Group-wide approach is being developed for employees who resign or are asked to leave the company.

Many measures implemented in the Group

Sickness absence in the Group remained at around the same level in 2010 as in the preceding year. The exception to this was the operation in Norway, where sickness absence dropped sharply thanks to targeted measures. The trend for workplace accidents in the Group is increasing. Work has been initiated to influence workplace attitudes, among other factors, with the aim of reducing accidents and incidents.