TABLES

Key indicators

INTERACTIVE GRAPHS

Age spread

Sickness absence

Workplace injuries

Joint solutions yield efficient processes

Implementation of the human resources strategy for the period 2011-2014 continued during the year. It is based on a cross-border approach with a focus on processes rather than business areas and the efficiency of human resource work is improved with more Group-wide solutions.

The HR policy and approach take into account the fact that Södra is active in both Sweden and abroad. The employees contribute expertise, which is the sum of the individual's knowledge, will and abilities. The strategy emphasises the significance of motivation-based leadership in order to increase the "will component".

An attractive company

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

The value words in the strategy are whole, closeness and movement. 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.

Södra should be attractive to the employees of today and tomorrow. Employees 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.

In order to reach and attract new employees, Södra participates in exhibitions, labour market days and similar activities. This participation will be broadened and 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 Södra's business, directly 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 for recruitment is to increase internal mobility and for three out of four managerial positions to be appointed internally. External recruitment is always current and, as a part of this, eight trainees were recruited during the year.

Productivity work on a Group-wide recruitment process was completed. The objective has been to improve efficiency in terms of time and costs and increase the quality of the process. The average time for external recruitment has begun to decrease from 12 weeks at the beginning. With the new process, it should take a maximum of ten weeks. Quality has increased through the shared method and the structure of interviews and selections.

The Group now has several specialists for individual assessments and tests in recruitment, which has reduced consulting costs.

Diversity is an area of improvement potential. The forest 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 an introductory programme. During the year, 141 employees participated in one of the four introductory sessions. In the course of one day, they had the opportunity to meet Group management and co-workers from the Group, while a second day was spent on productivity issues.

Develop and retain

Södra is investing in 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. Talks between managers and employees are arranged annually.

To make Södra a better employer, regular employee surveys give all employees the chance to evaluate working conditions. Results are reported back on a workplace and work team level and necessary improvements are made at the appropriate level. A survey was carried out in spring 2011.

Reward and resign

A new Group-wide pension policy offers attractive pension and insurance solutions for employees in Sweden as a part of the company's reward initiative. Around 150 employees are affiliated with Södra’s own ITP1 occupational pension solution. This corresponds to more than 70 per cent of the employees born in 1979 or later (salaried employees). The possibility of starting collective agreement occupational pensions under own direction for SAF-LO is being investigated.

The new pension policy is now being implemented. More than 1,700 employees have participated in consultations on pensions and other security packages. The company also offers gross salary exchange against pensions and eye operations against gross salary deductions. There is considerable interest in the latter among the employees.

Many measures implemented in the Group

Sickness absence in the Group has decreased compared with the preceding year. Efforts to reduce work-related injuries are a prioritised area and the outcome indicates a large improvement compared with the preceding year. More work has been initiated to influence workplace attitudes, among other factors, with the aim of reducing accidents and incidents.