Human Resources

PEOPLE: OUR MOST IMPORTANT RESOURCE

Konecranes’ human resource strategy is designed to support the Group’s business strategies, and ensure that the Group has well-motivated and enthusiastic employees. Konecranes works hard to be an attractive employer for its employees. The number of Konecranes’ employees rose during 2005, as a result of a growth in operations and acquisitions, in particular. As of the end of 2005, the Group’s personnel stood at 5,923, an increase of 1,412 on the figure for 2004.

Peggy Hansson, Director, Competence Development

Comprehensive training for all employees

Training has always been an integral part of Konecranes’ corporate philosophy. Employees took part in an average of three days of training in 2005. A key goal of our extensive training program is to expose personnel to operations and opportunities across the Group and create a common sense of purpose to which people can commit. Continuous learning was particularly emphasized in 2005 as part of this.

Konecranes Academy and Academy+

Over 200 employees have completed the Konecranes Academy program. The program was updated in the spring with the inclusion of a module on supply chain management. The program’s other modules focus on developing teamwork, financial management, customer relationship management, business management, and leadership skills. Konecranes Academy graduates were offered the possibility in 2005 of follow-on courses, and 145 graduates of the program took up this opportunity, taking part in the Academy+ training days addressing subjects such as corporate strategies and strategic prioritization.

London Leadership Process

The senior management training initiative launched in 2000 continued under the umbrella of the London Leadership Process program. Six senior executives from Konecranes took part in the program, organized in conjunction with Dynea, Sanitec, and Wärtsilä. Eight senior executives will take part in 2006. Training for Konecranes’ largest single group of employees, service technicians, was arranged at training centers worldwide in 2005. The skill base of service technicians was reviewed in 2005, and the results of this analysis will be used in future recruitment and training.

Internal chains of communication were also subject to special attention in 2005. The meetings held between local trainers at regular intervals around the world are an important forum for passing on information about new products and product development and for ensuring that people in the field have the latest information and know-how at their disposal. Local and business-specific training events covering areas such as IT, safety, and teamwork were held across the Group in 2005. These included the Konecranes Way event arranged for the second time by the Group’s Nordic organization, and which focused on developing customer service this time around.

Incentive programs

Konecranes is a growing, global organization, committed to offering its employees wide-ranging opportunities for developing in their careers and gaining international experience. The fact that many employees have been with the Group for many years underlines their commitment to Konecranes and the Group’s own commitment to promoting the well-being of its people. Annual Trust, People and Performance (TPP) discussions between managers and their subordinates help guarantee that everyone is familiar with the Group’s goals and can commit to them. These discussions also provide an opportunity for agreeing personal goals and development needs.

A number of job satisfaction surveys were carried out across the Group in 2005, and the results from these have been used in further developing operations. Annual reviews of the local performance- related incentive and bonus systems in place around the Group were again carried out. Many employees also come within the scope of personal incentive programs driven by personal performance and the performance of the immediate teams to which they belong. In addition, the Group has four stock option programs (1997, 1999, 2001, and 2003) for senior managers and key personnel.

European Works Council

Konecranes’ European Works Council (EWC), a joint body bringing together representatives from the Group’s management and personnel, acts as a forum for exchanging views on topical issues and promoting cooperation Europe-wide. Personnel in EU countries appoint representatives for three-year terms of office. The 2005 EWC meeting was held in the Netherlands and discussed issues including the Group’s financial performance, governance, and social responsibility. Members’ three-year term of office ended in December 2005, and new members were elected at the beginning of 2006. The annual Konecranes Conference was held in Savannah, Georgia in the US. A total of 147 senior managers attended the event, which focused on Group strategy and supply chain management in particular.