The number of full-time employees amounted to 13 083 (13 720) at the end of December. The number of full-time employees in the global delivery centres totalled 6 039 (6 334), or 46.2% (46.2) of all personnel.
In the full year, the number of full-time employees decreased by a net amount of over 600. In PDS, the number of personnel decreased by over 800. In IT services, the number of personnel increased by around 200 of which net recruitments added around 500 and the net of acquisitions and divestments over 400 employees while job cuts reduced the number of personnel by over 700. The 12-month rolling employee turnover stood at 9.9% (10.5) at the end of December.
Salary inflation was over 3% and is expected to remain at that level on average in 2016. In offshore countries, salary inflation is clearly above the average.
The transformation of Tieto – and the whole IT industry – is placing high demands on resource planning. Ensuring resources that support the company's renewal and growth objectives was the key focus area for HR in 2015. Tieto continued to recruit new talent to growth areas, e.g. healthcare and Customer Experience Management (CEM) and to sales. In particular, the company needed more industry consultants, digital architects, UX designers and software developers. Additionally, acquisitions added close to 500 new profiles and business capabilities to Tieto. On the other hand, the automation and industrialization of traditional IT services means that some of the traditional roles and competences are becoming obsolete.
Tieto's objective of becoming the employer of choice also supports the company's business needs. Currently, Tieto's actions to attract new and retain existing talent include targeted messages to selected professional groups and active use of social media, both internally and externally. Additionally, Tieto aims to enhance the employee experience and open culture amongst its current employees and thereby strengthen its overall image as an employer.
Tieto aspires to have an Open Source culture. The company strives for an open and transparent culture where employees feel empowered, and can influence their work and build an inspiring working environment. In 2015, the focus was expanded from leadership and ways of working together to encompass the full employee experience. To this end, the company initiated the development and renewal of the physical working environment, internal tools and practices to better align them with this cultural aspiration. One example of this is the decision to move the head office to a new, highly collaborative environment in the West Coast Business Campus in Keilaniemi, Espoo, starting late 2016.
Tieto continued to invest in developing leadership capabilities and competence renewal as well as to foster its Open Source culture, where all employees are encouraged to share, grow and learn. Igrow, a programme targeted at young talents and emerging leaders, was one of the new initiatives in 2015. The global development programme proved to substantially increase the motivation of not only the participants but also the network working close to them. Tieto has also initiated an annual leadership event (Tieto Leadership Forum) with the diverse participation of senior leaders, people with a passion to contribute and young talents. This two-day event is broadcasted to all employees and anyone can join in and contribute online in the spirit of Open Source culture.
Tieto conducted its annual employee engagement survey in autumn 2015 with a record-high response rate of 92%. The survey showed clear improvements in all areas. The company transformation has now started to pay off and employees are becoming positive about it and are very engaged to the company. The clear improvement in the cultural index shows that Tieto employees are fully committed to the company values and cultural aspirations. Additionally, excellent progress was made in project management capabilities, one of the focus areas defined in 2014.
Tieto's new short-term incentive structure, which was applied from the beginning of 2015, was well received. The renewal emphasizes overall individual performance, including success in living up to the company's Open Source culture. In February, the company established new long-term incentive programmes, Performance Share Plan 2015 and Restricted Share Plan 2015. Further information about incentives is available at www.tieto.com/Investors.