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the HPWO approach can be extended<br />
elsewhere in <strong>Stora</strong> <strong>Enso</strong>.<br />
Building competence<br />
Go! is an international rotation programme<br />
targeted for developing talents<br />
at an early stage in their career by giving<br />
participants two-year assignments in<br />
new roles at mills, sales offi ces, and merchants<br />
abroad. Designed to increase<br />
mobility within the Group, the programme<br />
is intended to make cross-organisational<br />
moves within <strong>Stora</strong> <strong>Enso</strong> easier<br />
for employees. The fi rst participants<br />
began their placements in November<br />
2005 in various locations across Europe<br />
and North America.<br />
Attracting talent in China<br />
<strong>Stora</strong> <strong>Enso</strong> provides international internship<br />
opportunities for Chinese students.<br />
The Group has also invested in building<br />
a good employer image in China locally,<br />
by establishing links with top Chinese<br />
universities in the pulp and paper fi eld<br />
to help ensure the recruitment of future<br />
talent. Other activities include supporting<br />
local technical schools, organising<br />
activities such as Open Family Days, and<br />
sponsorship.<br />
Redundancies will be unavoidable<br />
Profi t 2007 programme, announced in<br />
October 2005, has identifi ed personnel<br />
reductions totalling some 2 000, half<br />
covering white-collar and half blue-collar<br />
staff. Just over half of these are expected<br />
to take place in the Nordic countries, and<br />
the rest elsewhere in Europe. The Asset<br />
Performance Review, also announced in<br />
October 2005, will potentially affect<br />
some 2 300 personnel.<br />
In handling these redundancies,<br />
<strong>Stora</strong> <strong>Enso</strong> will follow a consistent<br />
approach, tailored to the legal requirements<br />
and redundancy practices of the<br />
countries in which it operates. To ensure<br />
the process is handled as responsibly and<br />
ethically as possible, <strong>Stora</strong> <strong>Enso</strong> has<br />
introduced corporate-wide guidelines for<br />
workforce reductions.<br />
Read more about the guidelines in<br />
the Sustainability 2005 report on<br />
page 27.<br />
Continuous development and<br />
improvement are high on the agenda<br />
The need to develop employee skills and<br />
motivating staff is crucial to the future<br />
success of the Group, and underpins the<br />
<strong>Stora</strong> <strong>Enso</strong> Business Excellence Guide<br />
2005, a strategic improvement tool that<br />
establishes the framework for continuous<br />
improvement and serves as the Group’s<br />
strategic change management system.<br />
The Group’s success is directly linked to<br />
how well it succeeds in getting all<br />
employees to perform at the top of their<br />
ability.<br />
Leadership<br />
In addition to fi nancial goals, <strong>Stora</strong><br />
<strong>Enso</strong>’s leadership practices emphasise the<br />
importance of developing the competitiveness<br />
of the organisation today so that<br />
it can deliver results tomorrow. Our ability<br />
to achieve our vision and strategic targets<br />
is highly dependent on the way we<br />
lead and manage, and ensuring that the<br />
Group promotes and encourages the<br />
leadership characteristics, skills, and<br />
behaviours it needs. Excellent leadership<br />
is a vital part of management and helps<br />
create the conditions for each and every<br />
employee to develop and excel. <strong>Stora</strong><br />
<strong>Enso</strong>’s Leadership model is today an integrated<br />
part in recruitment, training and<br />
reward.<br />
Regeneration process continues<br />
<strong>Stora</strong> <strong>Enso</strong> has reviewed its organisational<br />
structure, as a number of key people<br />
will reach retirement age over the next<br />
few years. The new organisation focuses<br />
on broadening the experience of a<br />
number of key managers and reducing<br />
the number of management levels within<br />
<strong>Stora</strong> <strong>Enso</strong>. National age structures<br />
differ signifi cantly across the Group, and<br />
the regeneration process is currently<br />
mainly focused on <strong>Stora</strong> <strong>Enso</strong>’s Finnish<br />
organisation. •<br />
Read more about Corporate Social Responsibility<br />
and occupational health and safety<br />
performance in the Sustainability 2005<br />
report on pages 24–29.<br />
Key figures 2003 2004 2005<br />
Average number of employees 44 264 43 779 46 166<br />
Sales/employee, EUR 274 993 283 145 285 654<br />
Personnel turnover, %* 2.2 5.2 4.0<br />
Training days/employee<br />
Absenteeism due to sickness and accidents, %<br />
3.8 3.4 2.8<br />
(of total theoretical working hours) 4.8 4.6 4.5<br />
*Based on number of outgoing permanent employees who left <strong>Stora</strong> <strong>Enso</strong> voluntarily.<br />
Employee education structure<br />
Basic education 21.0%<br />
High school/Vocational certificate 44.5%<br />
College level 13.3%<br />
Barchelor’s degree/Polytechnic degree 7.3%<br />
Master’s degree 6.0%<br />
Licenciate/Doctorate 0.5%<br />
STORA ENSO COMPANY 2005• 29
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