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www.sol.fi<br />
<strong>Responsibility</strong> <strong>report</strong> <strong>2017</strong><br />
Everyday acts
2 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
4 <strong>Responsibility</strong> – everyday acts<br />
10 Description of the organisation<br />
14 Management at <strong>SOL</strong><br />
22 Financial responsibility<br />
24 Responsibilities to stakeholders<br />
28 Environmental responsibility<br />
38 Social responsibility<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
3
1<strong>Responsibility</strong><br />
– everyday acts<br />
This <strong>SOL</strong> <strong>Responsibility</strong> Guide is the seventh in<br />
this format. The guide is published in Finnish<br />
and in English every spring on the company’s<br />
website. There is clearly demand for this type<br />
of guide since it will enable us to better control<br />
the development and management of responsibility and<br />
to identify the state of responsibility in different areas. The<br />
guide contains an introduction to the subject, key figures<br />
regarding the actions implemented, and future goals.<br />
At <strong>SOL</strong>, responsible business operations mean spontaneous<br />
responsibility that supports the company’s business<br />
and that is determined by the company’s values and objectives,<br />
while also taking into account key stakeholders.<br />
Many practical issues related to responsibility are<br />
addressed in our everyday work. These issues include<br />
occupational safety, good managerial work, improvements<br />
in working methods, environmental issues, work ethics, a<br />
pleasant work community, caring about others and about<br />
customers, correct salary payments, the development of<br />
competence and many other minor aspects. Our goal is<br />
to be an excellent corporate citizen, focusing in particular<br />
on the continuity of operations, supply chain responsibility,<br />
our customers’ superior service experience, responsible<br />
environmental management, well-being at work, and<br />
continuous improvement and development. Responsible<br />
operations are essential and global. Ethical and responsible<br />
choices dictate more and more our procurement<br />
decisions and consumption.<br />
The figures <strong>report</strong>ed below are those of the <strong>SOL</strong><br />
Group, unless otherwise stated in the text. The segments<br />
are Finland and the foreign subsidiaries, and the services<br />
are the business lines of <strong>SOL</strong> Palvelut Oy: property services,<br />
cleaning and facility services and security services,<br />
the laundry services of <strong>SOL</strong> Pesulapalvelut Oy and the<br />
personnel services of <strong>SOL</strong> Henkilöstöpalvelut Oy.<br />
4 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
International<br />
service locally.<br />
Net sales<br />
285<br />
MEUR<br />
€€€€€<br />
Personnel<br />
13 500<br />
Customer<br />
satisfaction visits<br />
26 278<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
5
1.1 Description of the<br />
operating environment<br />
in Finland<br />
Macroeconomic surveys indicate that the outlook for<br />
property services improved somewhat in 2016, as did the<br />
outlook for the service sector in general. Following a couple<br />
of weak years, the production of property services has increased<br />
since the start of 2014. The growth of other property<br />
maintenance services has outpaced that of cleaning<br />
services.<br />
The statistical growth of property services has been<br />
accelerated by outsourcing, as customer companies are<br />
focusing on their core operations and outsourcing cleaning<br />
and other maintenance and user services to external providers.<br />
The use of external services is also increasing in the<br />
municipal sector, albeit at a rate that is substantially slower<br />
than in the private sector. The outsourcing of operations<br />
remains relatively insignificant in Finnish municipalities.<br />
Work is usually performed by the municipalities’ own<br />
employees. Municipalities have outsourced 20–25% of<br />
their cleaning services, while the corresponding figure for<br />
property maintenance and technical services is approximately<br />
40%. The sector has a large potential market and the<br />
use of property services may well increase further in the<br />
coming years.<br />
In laundry services, increase in net sales has been slow<br />
during the past few years. The personnel services industry<br />
is in a period of growth, and <strong>SOL</strong> Henkilöstöpalvelut has<br />
achieved a result that substantially exceeds the industry<br />
averages.<br />
60<br />
40<br />
Saldo<br />
Business outlook and current situation in property services<br />
Business outlook<br />
Current situation<br />
20<br />
0<br />
-20<br />
-40<br />
-6+<br />
Source: Confederation of Finnish Industries Business Tendency Survey<br />
05 06 07 08 09 10 11 12 13 14 15 16<br />
At the sources of <strong>SOL</strong>ar energy<br />
<strong>SOL</strong><br />
Values<br />
• Sunny and satisfied customers<br />
• The joy of working<br />
• Everyday creativity<br />
• Enterprising spirit<br />
• Reliability<br />
<strong>SOL</strong><br />
Success factors<br />
• Customer satisfaction<br />
• Skilled and participating personnel<br />
• Continuous profitability<br />
• Good reputation as an employer<br />
• Good partnerships<br />
6 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
1.2 <strong>SOL</strong> Future<br />
<strong>SOL</strong> Future has endeavoured to forecast <strong>SOL</strong>’s prospects<br />
in the property services and temporary staffing markets<br />
up until the year 2025. <strong>SOL</strong> will be a strong contender<br />
in these future markets.<br />
Our Group-level growth target for net sales is MEUR<br />
1,001 by 2025. Of this total, operations in Finland will represent<br />
MEUR 755 and the foreign subsidiaries’ MEUR 246,<br />
the latter accounting for 25% of net sales.<br />
Correspondingly, the number of personnel in Finland is<br />
expected to grow to some 20,000 people and to increase<br />
significantly also in the foreign subsidiaries.<br />
We anticipate that as many as 60% of our employees will<br />
be of non-Finnish origin by 2030 compared to approximately<br />
30% at present. Employees are increasingly expected<br />
to have multi-expertise where different work tasks are<br />
combined. In addition to property maintenance, key jobs<br />
will be in the sectors of logistics, industry and commerce.<br />
The skills and development of the personnel are ensured<br />
by investing in training. Our age programme, in turn,<br />
takes into account the employment needs of different<br />
age groups. The programme connects the life situations<br />
of different groups with work tasks suited to those life<br />
situations. The rapid digital transformation of operating<br />
methods and procedures will continue.<br />
Net sales target (MEUR)<br />
Figure 4. Group net sales target for 2025<br />
1010<br />
1001<br />
808<br />
606<br />
404<br />
202<br />
0<br />
226,6<br />
51,4<br />
2015<br />
274<br />
404<br />
107<br />
2020<br />
512<br />
755<br />
246<br />
2025<br />
Total<br />
Abroad<br />
Finland<br />
<strong>SOL</strong><br />
Mission<br />
• We allow our customers to focus on their core<br />
business by providing our services<br />
<strong>SOL</strong><br />
Tulevaisuuden<br />
Visionmarkkinoilla <strong>SOL</strong><br />
on vahva toimija.<br />
• We want to be the superior service partner<br />
for our customers in all of our services<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
7
1.3 Risk management<br />
We have evaluated our key risks in cooperation with our<br />
insurance provider OP:<br />
• Profitability risks: effect of industry price competition on<br />
profitability<br />
• Work ability risks<br />
• Customer risks<br />
• Personnel availability risks<br />
• IT project risks<br />
Risks are prioritised according to the importance of the<br />
risk by evaluating the influence and likelihood of risks<br />
and the level of risk management. When evaluating the<br />
influence of risks, the effects on the well-being of people,<br />
the environment, and the reputation of <strong>SOL</strong> are taken<br />
into account in addition to the financial effects. Tools in<br />
accordance with the Operating System are used in <strong>SOL</strong><br />
risk evaluations.<br />
There are appointed persons in charge of risk management<br />
at <strong>SOL</strong>, who are responsible for the planning,<br />
execution and monitoring of procedures. The defined<br />
procedures are attached to the action plans and monitoring<br />
systems.<br />
Risk management procedures are directed at the most<br />
significant risks in terms of influence with cost-efficient and<br />
purposeful procedures.<br />
The management at <strong>SOL</strong> regularly monitors the success<br />
of risk management and <strong>report</strong>s on the risks and the<br />
development of risk management procedures. The sufficiency<br />
and influence of procedures is evaluated as a part<br />
of business monitoring. Corrective action will be taken as<br />
necessary.<br />
Property<br />
price risk<br />
Currency risk<br />
Interest rate risk<br />
Climate change<br />
Groundwater<br />
contamination<br />
Commodity<br />
price risks<br />
Share price risk<br />
Recruitment risk<br />
Market risks<br />
Environmental<br />
risks<br />
Misconduct risk<br />
Financing and<br />
liquidity risks<br />
Personnel risks<br />
Personal<br />
injury risks<br />
Key personnel risk Occupational<br />
accidents<br />
Work-related<br />
illnesses<br />
Credit risk<br />
Settlement risk Counterparty risk<br />
Decline in<br />
Financing risk<br />
creditworthiness<br />
Collapse of market<br />
liquidity<br />
Cash management risk<br />
Credit risks<br />
Financial<br />
risks<br />
Liability risks<br />
Enterprise risk<br />
Risk of<br />
physical<br />
damage<br />
Planning risk<br />
Change in strategy<br />
Investment risk<br />
Management<br />
risks<br />
Market position<br />
risks<br />
Strategic<br />
risks<br />
Operational<br />
risks<br />
Process risks<br />
Property damage<br />
Fire<br />
Flood<br />
Power outage<br />
Vandalism<br />
Operational<br />
disruption risk<br />
Change risk<br />
Personnel<br />
management risks<br />
Ownership policy<br />
risks<br />
Operating<br />
environment risks<br />
Supply chain<br />
risks<br />
Legal risks<br />
Information<br />
system risks<br />
Tax risk<br />
Competitor risk<br />
Reputation risk<br />
Key customer risk<br />
Partnership risks<br />
Distribution channel<br />
risks<br />
Demand/supply risk<br />
Subcontractor risks<br />
Raw material<br />
supplier risks<br />
Outsourcing risks<br />
Contract risks<br />
Court cases<br />
Risk of tighter regulation<br />
Information security risks<br />
System risk<br />
Control risks Inadequate IT support<br />
Process management risks<br />
Quality risks<br />
Risk management<br />
1.4 <strong>Responsibility</strong> for service<br />
provision and services<br />
<strong>SOL</strong>’s responsibility is to ensure that the services it provides<br />
are safe, reliable and sustainable and that they meet<br />
quality standards, such as hygiene requirements. <strong>SOL</strong><br />
prefers long-term relationships with selected suppliers,<br />
and expects from all its service providers commitment to<br />
the requirements set for security, the environment and<br />
employment relationships.<br />
<strong>SOL</strong> operates in the corporate and consumer markets,<br />
and the end-user is always an individual who requires<br />
reliability and safety. We require a picture ID from the<br />
personnel of our supplier partners as well as an attached<br />
tax number in order to prevent grey economy.<br />
<strong>SOL</strong>’s provision of services is well defined and mostly<br />
designed and developed by <strong>SOL</strong>. Development work is<br />
carried out in collaboration with all the suppliers to ensure<br />
accurate provision of the services. Development relies on<br />
safety, usability, functionality, durability and quality – all of<br />
which are factors needed for excellent customer satisfaction.<br />
In <strong>SOL</strong> Henkilöstöpalvelut Oy, the customer, as the<br />
user company, is responsible for the safety of <strong>SOL</strong>’s<br />
service experts. <strong>SOL</strong>’s role is to recruit, train and provide<br />
orientation for service experts so that they are able to act<br />
according to customers’ needs, instructions and safety<br />
regulations.<br />
8 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
<strong>SOL</strong> Group is now<br />
under fourth-generation<br />
leadership in Peppi Kaira<br />
and Juha-Pekka Joronen.<br />
1.5 Managing<br />
Director’s review<br />
<strong>SOL</strong>’s strategy is based on sunny and satisfied customers,<br />
professionally competent and engaged personnel with a<br />
high level of well-being as well as productivity and profitable<br />
growth. Continuous development plays a central role<br />
in the strategy. In 2016, <strong>SOL</strong> achieved its growth targets<br />
quite well for the most part.<br />
We measure customer satisfaction on a monthly basis<br />
by conducting customer satisfaction visits. Last year, we<br />
conducted a total of 26,278 face-to-face customer satisfaction<br />
surveys and the feedback was excellent. The scores<br />
were 99.5% for <strong>SOL</strong> Palvelut, 98.7% for <strong>SOL</strong> Henkilöstöpalvelut<br />
and 99.8% for Sol Pesulapalvelut (on a scale of<br />
0–100%). We invest in the development of our personnel<br />
and our newly initiated training reforms have progressed<br />
according to our expectations. We have made particular<br />
investments in the development of areas such as online<br />
orientation, classroom training, on-the-job learning and<br />
apprenticeship training. We organised a total of 12,000<br />
training days last year.<br />
Our investments in the <strong>SOL</strong> Life wellbeing at work<br />
programme have produced good results: sickness and accident-related<br />
absences have begun to decline, disability<br />
pension expenses have been reduced and the Joy Barometer<br />
employee satisfaction indicator is at a good level.<br />
With regard to business performance, we were particularly<br />
delighted in 2016 by the rapid growth of <strong>SOL</strong> Henkilöstöpalvelut,<br />
which saw it become one of the largest<br />
companies in its industry operating nationwide in Finland.<br />
Net sales exceeded MEUR 41 and the year-on-year growth<br />
was more than 60 per cent. The industry is in a period of<br />
growth, but <strong>SOL</strong> Henkilöstöpalvelut achieved a result that<br />
substantially exceeds the industry averages.<br />
We are also growing at an annual rate of approximately<br />
10 per cent in our international operations. Our Swedish<br />
unit is making good progress and our Estonian operations<br />
have been successful right from the start. We have also<br />
achieved rapid growth in Russia, especially in Moscow,<br />
in spite of the Russian economy not yet showing signs of<br />
recovery. Our growth is the result of our strong efforts in<br />
that market. We have successfully acquired good large<br />
customers.<br />
<strong>SOL</strong> Group’s net sales amounted to MEUR 285 in 2016.<br />
Operating profit in 2016 totalled MEUR 5.2, or 1.8% of net<br />
sales. <strong>SOL</strong>’s investments amounted to MEUR 6.9 in 2016.<br />
<strong>SOL</strong>’s liquidity has remained good.<br />
<strong>SOL</strong>’s business continuity is also safeguarded by appropriate<br />
insurance cover. There are no significant risks<br />
related to business or financing on the horizon, but the<br />
Russian subsidiaries’ euro-denominated net sales and<br />
profitability are subject to risks arising from exchange rate<br />
fluctuations. We are confident that <strong>SOL</strong>, a strong player<br />
and trend-setter as well as a pioneering service provider<br />
and developer, will continue to prosper. Our assets are our<br />
flexible and agile operations, special care for our customers,<br />
personnel and partners, and our way of working in<br />
line with set plans.<br />
The year <strong>2017</strong> has got off to a good start in all sectors.<br />
The in-house logistics company Flexo Palvelut Oy, which<br />
we established as a joint venture with Posti Group Corporation,<br />
is well positioned to begin its operations.<br />
Juhapekka Joronen<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
9
2Description of the<br />
organisation<br />
<strong>SOL</strong> is a business owned by a Finnish family.<br />
<strong>SOL</strong>’s management is guided by values emphasising<br />
economic, social and environmental<br />
responsibility. The <strong>SOL</strong> Group comprises the<br />
parent company <strong>SOL</strong>EMO Oy and its three<br />
wholly owned subsidiaries in Finland and five<br />
international subsidiaries. We offer cleaning and facility<br />
services in St. Petersburg and Moscow in Russia and in Estonia,<br />
Latvia, Lithuania and Sweden. Retail laundry services<br />
are offered in Moscow, St. Petersburg and Estonia as part<br />
of a cleaning and facility management company.<br />
The dry cleaning shop concept of laundries began in<br />
Finland in 2001. Last year, the Group had 58 laundry shops<br />
in service in Finland. The Citycenter and Haaga laundry<br />
shops were closed in 2016. One of the two laundry shops<br />
in Itäkeskus was discontinued. A laundry shop began operating<br />
on new premises at the Kaleva Prisma in Tampere.<br />
International laundry operations were launched in Estonia<br />
in 2008, St. Petersburg in 2010 and Moscow in 2011. In<br />
2009, we began to offer temporary staffing and recruitment<br />
services to our customers in Finland. In Russia, we<br />
were in the temporary staffing business from 2013 to 2015.<br />
2.1 The <strong>SOL</strong> companies<br />
Solemo’s Finnish subsidiaries include <strong>SOL</strong> Palvelut Oy, a<br />
provider of cleaning and facility services, property services<br />
and security services. <strong>SOL</strong> Henkilöstöpalvelut focuses on<br />
temporary staffing and direct recruitment services. <strong>SOL</strong><br />
Pesulapalvelut Oy provides laundry services to private<br />
individuals, businesses and public sector entities.<br />
The Group’s foreign subsidiaries are:<br />
• OOO <strong>SOL</strong><br />
• OOO <strong>SOL</strong> SP<br />
• OOO <strong>SOL</strong> DC<br />
• <strong>SOL</strong> Baltics OÜ<br />
• Solreneriet AB<br />
• Reneriet Estonia OÜ<br />
2.2 <strong>SOL</strong> is a Solar<br />
System – outstanding<br />
partnership and quality<br />
<strong>SOL</strong> is a Solar System consisting of the Solar Centre,<br />
personnel services, property services, laundry services,<br />
cleaning services, facility services and security services. We<br />
want each of the services to represent the absolute top in<br />
its field and provide our customers with positive experiences.<br />
We act responsibly, respecting the environment and<br />
providing the best customer service. We are quick and<br />
cost-efficient. We want to be a superior partner in all of<br />
our services and service solution packages.<br />
In addition to <strong>SOL</strong>’s Management Team and task-specific<br />
development groups, the entire personnel works for<br />
and towards <strong>SOL</strong> responsibility. The work of a responsible<br />
corporation involves us all. The operational organisation is<br />
structured so that all the services, marketing and sales as<br />
well as development and administrative operations support<br />
the operative activities throughout the Group. The<br />
backbone of the operations is the line organisation, which<br />
serves locally and with uniform quality in accordance with<br />
the <strong>SOL</strong> Operating System. The Group’s development<br />
activities focus on establishing and developing service<br />
concepts and processes. Procurement and logistics are<br />
also under development.<br />
10 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
2.3 Reporting<br />
Net sales (MEUR)<br />
Figure 1. Net sales 2012–2016, Finland and other countries<br />
25<br />
20<br />
205,7<br />
217,5<br />
221,5<br />
222,6<br />
230,8<br />
15<br />
Finland<br />
10<br />
Other countries<br />
5<br />
24,6<br />
44,6<br />
48,10<br />
51,4<br />
54,2<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Operating profit (MEUR)<br />
Figure 2. Operating profit 2012–2016<br />
14<br />
12<br />
10<br />
10,4<br />
8<br />
7,6<br />
6<br />
4,7<br />
5,2<br />
4<br />
2<br />
2,5<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Net sales of <strong>SOL</strong> Henkilöstöpalvelut, 2012–2016 (MEUR)<br />
50<br />
40<br />
41,6<br />
30<br />
26<br />
20<br />
16,9<br />
18,3<br />
20,1<br />
10<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
11
Gross investments (MEUR)<br />
Figure 3. Gross investments 2010–2016<br />
16<br />
15,9<br />
14<br />
12<br />
10<br />
8<br />
6<br />
6,2<br />
4<br />
2<br />
0<br />
2011<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Number of personnel 2012–2016<br />
10000<br />
9000<br />
8000<br />
7000<br />
6000<br />
5000<br />
4000<br />
3000<br />
2000<br />
1000<br />
0<br />
8144 8200<br />
8692<br />
3101 3282 3339<br />
2012 2013 2014<br />
9050<br />
7484<br />
3606 3747<br />
2015 2016<br />
Finland<br />
Other countries<br />
2.4 Mission, vision<br />
and strategy<br />
Our mission is to strengthen our customers’ corporate<br />
image with the services we provide. Our services facilitate<br />
our customers’ everyday life and have the most cost-effective<br />
total cost in the market. We act in a responsible<br />
manner and we are a valued employer.<br />
All our activities and decision-making are based on<br />
shared values: sunny and satisfied customers, profitability,<br />
reliability, enterprising spirit, everyday creativity and the<br />
joy of working. We are here to serve our customers.<br />
Happy working clothes of red and yellow symbolise the<br />
<strong>SOL</strong> values and brand. The striking colours also improve<br />
occupational safety.<br />
We at <strong>SOL</strong> believe in a positive image of humankind,<br />
where everyone wants to work and succeed in their work<br />
and each of us is a different, creative, thinking, acting and<br />
feeling human being. We want to encourage and give<br />
feedback in order to develop in our work. Success and<br />
praise, in particular, are important to us and essential for<br />
work motivation.<br />
Our vision is to be a superior partner for our customers<br />
across all services. In line with our mission, we allow our<br />
customers to focus on their core business.<br />
We want to grow by utilising our service concepts and<br />
employing qualified personnel while developing cooperation<br />
with our customers. The end result is a profitable,<br />
financially-sound and excellently-managed <strong>SOL</strong> with sunny<br />
and satisfied customers and personnel.<br />
The <strong>SOL</strong> corporate image is projected to the market<br />
and to all our stakeholders. The cornerstones of our brand<br />
are cheerfulness, yellow sunniness, enthusiastic service,<br />
skilled professional personnel, flexibility and ease.<br />
12 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Yellow and red work clothes<br />
symbolise the <strong>SOL</strong> values<br />
<strong>SOL</strong> Philosophy<br />
<strong>SOL</strong>’s image of humankind<br />
• People are responsible individuals and they want<br />
to do good work.<br />
• People have a need to succeed<br />
• People are different<br />
• People take initiative and are creative<br />
• People are thinking, acting and feeling human<br />
beings<br />
<strong>SOL</strong> freedom<br />
• Freedom of workplace: it is not it is not important<br />
where work is carried out; what is achieved is<br />
what matters<br />
• Freedom from status symbols: respect has to be<br />
earned<br />
• Freedom from working hours: the result counts<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
13
3Management<br />
at <strong>SOL</strong><br />
<strong>SOL</strong>’s management culture is established to allow<br />
trustworthy interaction and an atmosphere that<br />
encourages everyday creativity and to promote people’s<br />
respect and responsibility towards each other.<br />
At <strong>SOL</strong>, we aim towards servant leadership.<br />
Giving responsibility, trust, and supporting a<br />
functional work community are some of the<br />
essential mindsets.<br />
The parent company’s Board of Directors<br />
comprises Juhapekka Joronen, Chairman, and ordinary<br />
members Peppi Kaira and Anja Eronen. Juhapekka Joronen<br />
is the Managing Director of <strong>SOL</strong> Palvelut Oy. Peppi<br />
Kaira is the Managing Director of <strong>SOL</strong> Pesulapalvelut Oy.<br />
Niilo Kemppe is the Managing Director of <strong>SOL</strong> Henkilöstöpalvelut<br />
Oy, and Peppi Kaira is the Managing Director<br />
of <strong>SOL</strong>EMO Oy. Anja Eronen was the Managing Director<br />
of <strong>SOL</strong>EMO Oy and <strong>SOL</strong> Palvelut Oy until 31 August 2011<br />
and has been Chairman of the Board of <strong>SOL</strong> Palvelut Oy<br />
as of 1 September 2011.<br />
<strong>SOL</strong>’s Management Team comprises Anja Eronen,<br />
Chairman, the Managing Directors of the Finnish companies,<br />
Timo Sairanen, Director, HR and Legal Issues and<br />
Riitta Sirviö, Director, Development Group. The Management<br />
Team also includes representatives of senior salaried<br />
employees, salaried employees and other employees.<br />
The company’s auditor is KPMG Oy Ab, Authorised<br />
Public Accountants, with Toni Aaltonen as the lead auditor.<br />
The management organisation is as lean as possible<br />
in order to be close to the customer and personnel. The<br />
Development Group of each service sector is responsible<br />
for monitoring operational management and for development<br />
and improvement projects. All meeting practices are<br />
presented in the <strong>SOL</strong> Operating System. They are defined<br />
in the annual Action Plan and also scheduled according to<br />
it.<br />
The <strong>SOL</strong> Operating System is based on the ISO<br />
9000:2015 quality standard, the ISO 14001 environmental<br />
management standard, the OHSAS 18001 safety specification<br />
and the ISO 31000 risk management standard. Each<br />
company has its own operating system compliant with the<br />
Group’s core system. Our customers audit our operating<br />
system, which serves as a foundation for developing operations.<br />
<strong>SOL</strong>’s Estonian and Latvian companies have quality<br />
certificates. The well-being programme is integrated into<br />
the <strong>SOL</strong> Life programme. Documentation is saved centrally<br />
in the M-Files programme, which also includes the<br />
customer management system. The system utilises <strong>SOL</strong>’s<br />
in-house customer information system (Sirkkeli).<br />
Safety instructions are an integral part of the <strong>SOL</strong><br />
Process Management System. They are easily available on<br />
the intranet or in separate folders at our full-service laundry<br />
shops. The Group and its companies have nominated<br />
people to be responsible for data security, environmental<br />
safety, occupational safety and other safety. Updating<br />
safety instructions, as well as early intervention and preventive<br />
measures, are important to <strong>SOL</strong>. We emphasise<br />
the personnel’s responsibility, and acting according to that<br />
responsibility, in all our communications. We never permit<br />
any form of corruption or bribery whatsoever. The guidelines<br />
for receiving gifts and for travel are documented in the<br />
<strong>SOL</strong> Operating System.<br />
The management<br />
organisation is as<br />
lean as possible in<br />
order to be close to<br />
the customer and<br />
personnel.<br />
14 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Management principles, illustrating lean organisation and internal services.<br />
Leveraging shared<br />
resources<br />
Lean central management<br />
Clear outcomes, indicators<br />
and monitoring<br />
Selected group<br />
services<br />
Decentralised<br />
organisation,<br />
accountability as lean<br />
as possible<br />
Continuous<br />
improvement<br />
Individuals deliver<br />
results in cooperation<br />
with each other<br />
Increasing flexibility<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
15
3.1 <strong>SOL</strong>’s ethical rules –<br />
principles of good business<br />
3.1.1. Introduction<br />
<strong>SOL</strong>’s operations are guided by values that emphasise<br />
economic, social and environmental responsibility. Each<br />
<strong>SOL</strong> employee must comply with our values in their work:<br />
Sunny and satisfied customers, the joy of working, everyday<br />
creativity, enterprising spirit and reliability.<br />
At <strong>SOL</strong>, we believe that everyone wants to do their job<br />
well and succeed in their work. We encourage independence<br />
and the acceptance of responsibility. Everyone at<br />
<strong>SOL</strong> must act responsibly with regard to our stakeholders.<br />
<strong>SOL</strong>’s responsibility covers all stakeholders: customers,<br />
personnel, shareholders, subcontractors, partners, authorities,<br />
the company’s own business sectors and their<br />
organisations, the media, and cooperation with non-profit<br />
organisations.<br />
These rules are part of the <strong>SOL</strong> <strong>Responsibility</strong> Report.<br />
The rules apply to all <strong>SOL</strong>’s subsidiaries in Finland and<br />
abroad. Each <strong>SOL</strong> employee is responsible for playing by<br />
the rules.<br />
3.1.2 Ethical rules and legislation<br />
<strong>SOL</strong> and its employees act legally and in accordance with<br />
current, generally accepted business practices. As a member<br />
of the Real Estate Employers, <strong>SOL</strong> and its employees<br />
develop the industry by complying with the ethical rules.<br />
Each <strong>SOL</strong> employee is responsible for acquiring the necessary<br />
information on the legislative regulations concerning<br />
their work. Supervisors must ensure the employees<br />
receive adequate orientation to these rules. If in doubt,<br />
<strong>SOL</strong> employees should always turn to their supervisor<br />
for help. <strong>SOL</strong> supervisors must ensure full compliance<br />
with laws, regulations and good business practices. If<br />
an employee notices any breaches of regulations, they<br />
must immediately notify their supervisor, who will take the<br />
necessary actions at once and <strong>report</strong> the matter to the<br />
Group management.<br />
3.1.3 Conflicts of interests, gifts and bribes<br />
<strong>SOL</strong> employees are expected to promote <strong>SOL</strong>’s interests<br />
and act in a responsible manner. <strong>SOL</strong> employees must<br />
avoid all situations that might result in a conflict of interests.<br />
We apply the ethical<br />
guidelines published by the<br />
Real Estate Employers and<br />
work to raise the profile of<br />
the property service sector.<br />
• We will act reliably and with high quality, in accordance<br />
with the promises and commitments given to customers.<br />
• We will act responsibly and also expect responsible<br />
operations from our partners.<br />
• We are bound by the duty of professional secrecy with<br />
regard to confidential information and we will not misuse<br />
any information obtained.<br />
• We will fulfil our social obligations and responsibilities,<br />
and we are familiar with the standards of the industry.<br />
• We undertake to maintain the skills and development<br />
of our personnel and we will promote employee wellbeing<br />
and the occupational safety of our personnel and<br />
customer companies.<br />
• We will respect other enterprises in the sector, compete<br />
fairly and work to abolish the grey labour market.<br />
• We will provide every employee with a photographic<br />
ID, displaying their personal details and tax ID and<br />
submit all company and subcontractor information<br />
required under the provision of the Act on the Contractor’s<br />
Obligations and Liability when Work is Contracted<br />
Out, using the tilaajavastuu.fi online service<br />
• We are committed to promoting environmental values<br />
and awareness.<br />
• We will encourage equality at work and acceptance of<br />
individuality and diversity within the work community<br />
16 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
The corruption and bribery ban permeates all <strong>SOL</strong><br />
operations. <strong>SOL</strong> and its employees may not make or offer<br />
bribes or unlawful payments to customers, managers, national<br />
of local authorities or other parties to gain or retain<br />
business, or for any other equivalent reason.<br />
<strong>SOL</strong> does not grant direct or indirect support to political<br />
parties, organisations or individual politicians.<br />
<strong>SOL</strong> employees may not accept personal benefits or<br />
gifts from stakeholders or suppliers which run contrary<br />
to applicable laws or local business practices. Gifts or<br />
benefits must only be accepted if they are offered in the<br />
context of regular business activities and they are ordinary,<br />
reasonable and low in monetary value.<br />
Gifts and hospitality may be acceptable if they are:<br />
• not offered on a regular basis, are given or received<br />
openly and without an obligation and/or expectation of<br />
a favour in return<br />
• approved by stakeholders and able to stand public<br />
scrutiny<br />
• legal, ordinary and of moderate monetary value.<br />
• Before offering a gift or benefit to a partner, employees<br />
must ensure that they are aware of the rules and ethical<br />
guidelines observed by the recipient to prevent bribery.<br />
In Finland, hospitality in the public sector is subject to<br />
guidance (1592/2010) issued by the Ministry of Finance,<br />
available (in Finnish) at: www.vm.fi/vm/fi/04_julkaisut_ja_<br />
asiakirjat/02_henkilostohallinnon_asiakirjat/03_ohjeet/<br />
20100825Vieraa/Vieraanvaraisuudesta__eduista.pdf<br />
Examples of acceptable hospitality include attendance<br />
at occasions such as birthday and retirement receptions<br />
organised by a partner. In these circumstances, gifts in<br />
keeping with convention are acceptable. Also acceptable<br />
are parties and cultural events in the context of meetings<br />
and training courses.<br />
Gifts or benefits exceeding a value of EUR 100 offered<br />
to a <strong>SOL</strong> employee must be authorised by a Service Director,<br />
Business Director or Managing Director.<br />
Benefits must not be accepted if:<br />
• The value of the benefit exceeds conventional business<br />
practices<br />
• The benefit is in conflict with <strong>SOL</strong>’s interests and values<br />
• The benefit may impair or be seen to impair the other<br />
party’s independence or impartiality<br />
• The benefit is likely to arouse suspicions regarding the<br />
giver’s motives or its impact on decision-making or<br />
outcomes of business<br />
• The benefit could generate negative publicity for <strong>SOL</strong><br />
We will operate<br />
responsibly by providing<br />
fair temporary work.<br />
The <strong>SOL</strong> Group’s personnel services arm, <strong>SOL</strong> Henkilöstöpalvelut,<br />
is an authorised member of the Private Employment<br />
Agencies’ Association (HPL) and a member of<br />
Service Sector Employers Palta. As an authorised company,<br />
we commit to adhering to the authorisation rules and<br />
to responsible operations by offering fair temporary work.<br />
3.1.5 Fair temporary work<br />
The authorisation of personnel services companies ensures<br />
the fairness of temporary staffing for both employees<br />
and user companies. Authorised companies wish to<br />
highlight their commitment to legal, ethical procedures.<br />
As for customer companies and temporary staff, they wish<br />
to be able to identify the honest and reliable operators<br />
in the field. The authorisation rules are provided to both<br />
parties for information. Compliance with the authorisation<br />
rules is monitored.<br />
The Private Employment Agencies’ Association has prepared<br />
general terms and conditions for temporary staffing<br />
and recruitment to clarify the distribution of responsibilities<br />
and rules between the contractual parties. The terms<br />
and conditions also take into account the right of employees<br />
and job applicants. The general terms and conditions<br />
are intended to serve as an appendix to the contract<br />
between a personnel services company and its customer.<br />
The contractual terms and conditions specify the course of<br />
the process, the obligations of the contractual parties, the<br />
validity and termination of the contract, the making of reclamations,<br />
and indemnities. The parties may deviate from<br />
the terms and conditions by a separate, written customer<br />
agreement.<br />
As a general rule, <strong>SOL</strong> will cover the costs of any travel<br />
related to events and travels organised by external parties.<br />
In the event of confusion regarding the appropriateness/legality<br />
of giving or receiving a gift, it must be<br />
declined.<br />
3.1.4. Responsible personnel services<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
17
3.2 Stakeholders<br />
<strong>SOL</strong>’s social responsibility covers all stakeholders: customers,<br />
personnel, subcontractors, partners, shareholders,<br />
authorities, the company’s own business sectors and their<br />
organisations, the media, and cooperation with non-profit<br />
organisations.<br />
We comply with the laws, regulations and guidelines<br />
of local authorities in all our operating countries. We<br />
diligently take care of our taxes and payments, which are<br />
further used for maintaining social services and public<br />
infrastructure.<br />
3.2.1 Personnel<br />
We currently employ over 13,500 people, to whom we<br />
are committed to paying wages and salaries according<br />
to agreements and for whom we pay employers’ contributions.<br />
We serve our customers with and through our<br />
personnel. Our key value is the joy of working.<br />
<strong>SOL</strong> aims for a fair personnel policy, which enables the<br />
company to safeguard employment and guarantee high<br />
job satisfaction. Investment in the continuous development<br />
of employees’ skills provides maximum benefits for<br />
customers, employees and <strong>SOL</strong>.<br />
The well-being of personnel is fully addressed. Employees<br />
are encouraged and trained to participate in the<br />
planning and development of their own tasks in everyday<br />
work, as well as in long-term planning and development.<br />
For instance, the annual action plan and budget are built<br />
from the bottom upwards, thus involving as many employees<br />
as possible. In Finland, the personnel working at least<br />
15 hours per week are provided with general practitioner-level<br />
healthcare after six months of employment, and<br />
<strong>SOL</strong> has adopted <strong>SOL</strong> Life as an “Ongoing Care Model”.<br />
High priority is systematically given to occupational<br />
safety, risk management and pro-activeness throughout<br />
our operations. Rapid communications and interaction<br />
commensurate with the situation have been further strengthened.<br />
Personnel competence is improved by short-term and<br />
long-term in-house coaching and training sessions, and<br />
by apprenticeship training. <strong>SOL</strong> offers active tutoring and<br />
mentoring for all personnel groups and conducts a continuous<br />
Ilopuntari job satisfaction survey. “From goals to<br />
results” discussions help in setting goals, achieving results,<br />
developing operations and they also facilitate the personnel’s<br />
self-development. A scorecard is used for monitoring<br />
and controlling the achievement of the goals. The Quality<br />
Passport has been in use at <strong>SOL</strong> for a long time now as a<br />
tool to reward employees for good performance.<br />
<strong>SOL</strong> has a good and effective relationship with labour<br />
organisations.<br />
3.2.2 Responsible owners with a face<br />
In a family business, the owners of <strong>SOL</strong> have a key role<br />
and long traditions of developing the company and its<br />
operations. The owners expect from the employees responsible<br />
operations in accordance with the company’s values.<br />
<strong>SOL</strong> is an active member of the Finnish Family Firms<br />
Association, which promotes an operational framework for<br />
and responsible ownership of family enterprises.<br />
Customer satisfaction<br />
Figure 5. Customer satisfaction 2012–2016<br />
100<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2013 2014 2015 2016<br />
Laughter<br />
Smile<br />
<strong>SOL</strong> Palvelut Oy<br />
<strong>SOL</strong><br />
Pesulapalvelut Oy<br />
<strong>SOL</strong><br />
Henkilöstöpalvelut Oy<br />
18 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
3.2.3 Our priority is a sunny, satisfied and<br />
loyal customer<br />
<strong>SOL</strong>’s operations are divided into local service districts,<br />
which are responsible for their own customers and are as<br />
close to the customer as possible. <strong>SOL</strong> has nearly 10,000<br />
registered customers and fulfilling contractual obligations<br />
with them is a matter of honour to <strong>SOL</strong>. <strong>SOL</strong> likewise<br />
expects the same from its contracting parties.<br />
In line with our operating system, we aim to prevent<br />
problematic situations and to rectify and continuously<br />
improve our services.<br />
Customer satisfaction and customer retention are<br />
monitored in all our activities every month. A continuous<br />
customer feedback and questionnaire procedure is in use<br />
and it is conducted monthly with some of the customers.<br />
This procedure is based on the <strong>SOL</strong>E guidelines and on<br />
an annual plan. <strong>SOL</strong>’s customer satisfaction has been at an<br />
excellent level for many years.<br />
The end-user of <strong>SOL</strong>’s services is a private customer<br />
whom we serve to the best of our ability. Our goal is to<br />
have customers who want to do business with companies<br />
and communities using our services or with our own<br />
full-service laundries also in the future.<br />
3.2.4 We select our partners carefully<br />
<strong>SOL</strong>’s partners include a number of suppliers of services<br />
and goods. Our partners are expected to be reliable, professional<br />
and responsible, and <strong>SOL</strong> invests in cooperation<br />
with them. For further information, please see the section<br />
on Social <strong>Responsibility</strong>. Our aim of cost effectiveness will<br />
also challenge <strong>SOL</strong>’s partners.<br />
3.2.5 Developer of the business sector<br />
<strong>SOL</strong>’s roots in Finland’s business community run deep.<br />
The first operations are considered to have started in 1848<br />
when dye master C.A. Lindström founded a textile dye<br />
house and laundry on the hill where Finland’s Parliament<br />
House currently stands.<br />
<strong>SOL</strong> has significantly improved the sector’s image with<br />
its reputation as a good employer and provider of quality<br />
services. <strong>SOL</strong> is well-known for transforming the property<br />
business into a service sector.<br />
<strong>SOL</strong> is an active opinion leader in the Confederation<br />
of Finnish Industries, Real Estate Employers and Private<br />
Employment Agencies Association. Juhapekka Joronen,<br />
the Managing Director of <strong>SOL</strong> Palvelut, is a member of the<br />
Board of the Confederation of Finnish Industries and the<br />
Chairman of the Board of the Real Estate Employers. We<br />
also participate in the work of other bodies and accept<br />
positions of trust and expert tasks offered.<br />
3.2.6 Communications and media<br />
Our business sectors interest everybody. <strong>SOL</strong> aims for<br />
transparent interaction with the media and regularly<br />
<strong>report</strong>s the Group’s news directly to the media via targeted<br />
press releases, which are also available on our<br />
website. Our communication channels in Finland include<br />
the Group’s intranet and the <strong>SOL</strong>ISTI customer magazine,<br />
in addition to the website and social media. Our entire<br />
website has been translated into English. Our communications<br />
department coaches and trains the personnel and it<br />
is responsible for internal and external communications in<br />
accordance with the company’s communications plan.<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
19
We are pleased to share information about our actions<br />
and results. Our experts are encouraged to make public<br />
presentations and to share their knowledge outside the<br />
group.<br />
3.2.7 Increasing our global role<br />
Individual rights and shared responsibility are evolving. We<br />
will have an increasing role in employing labour coming<br />
from less developed countries and also in improving the<br />
conditions of their countries of origin.<br />
<strong>SOL</strong> has started cooperation with an independent,<br />
non-profit volunteer community, Women’s Bank. Women’s<br />
Bank is working with commitment to collect donations to<br />
support women’s entrepreneurship and livelihoods in developing<br />
countries, applying the principles of sustainable<br />
development.<br />
<strong>SOL</strong> is a participant in the Diversity Charter, organised<br />
by FiBS and TEM. In 2012, we signed the Diversity Charter<br />
Finland, according to which:<br />
We will offer equal opportunities. We will recognise and<br />
utilise individual skills and needs.<br />
We will manage the personnel and customers fairly.<br />
We will provide information on our goals and accomplish-<br />
ments. <strong>SOL</strong> has a multicultural development group, which<br />
<strong>report</strong>s directly to the Management Team. In 2016, <strong>SOL</strong><br />
handed out its first award for an act promoting multiculturalism.<br />
The award was given to the Multiculturalism<br />
Working Group led by Sari Crnobreg in recognition of the<br />
group’s accomplishments in promoting equality.<br />
We employed approximately 4,000 foreign nationals in<br />
Finland in 2016.<br />
Since 2007, <strong>SOL</strong> has had a Young Staff Development<br />
Group with participants representing employees from<br />
different sectors. The purpose of the group is to promote<br />
the position of young employees and highlight their views<br />
on issues. In spring 2016, the Young Staff Development<br />
Group organised an event at <strong>SOL</strong> City for young visitors<br />
from various schools and workshops. The event has been<br />
organised since 2014. At the Youth Day event, the participants<br />
learned more about <strong>SOL</strong>’s business lines at fun<br />
activity stations and also participated in a CV workshop.<br />
Members of the Young Staff Development Group also<br />
participated in various recruitment events during the year,<br />
encouraging young people to apply for work at <strong>SOL</strong>.<br />
Young Staff Development Group<br />
20 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
3.2.8 Training committee and degree<br />
committee cooperation<br />
<strong>SOL</strong> is engaged in large-scale cooperation with educational<br />
institutions, starting from sponsoring classes in upper<br />
secondary schools. Vocational schools in our field as well<br />
as polytechnics and universities are important partners<br />
for us in training, internships and teaching and they also<br />
provide us with skilled employees.<br />
<strong>SOL</strong>’s director of training is a member of the Qualification<br />
Committee for Property Services appointed by the<br />
Board of Education. Our extensive cooperation with the<br />
Centres of Economic Development, Transport and the<br />
Environment throughout Finland helps ensure we have a<br />
readily available workforce.<br />
We comply with the UN<br />
Global Compact principles<br />
in our operations:<br />
1. Businesses should support and respect the protection<br />
of internationally proclaimed human rights within<br />
their sphere of operation.<br />
2. Businesses should make sure that they are not complicit<br />
in human rights abuses.<br />
3. Businesses should uphold the freedom of association<br />
and the effective recognition of the right to collective<br />
bargaining;<br />
4. the elimination of all forms of forced and compulsory<br />
labour;<br />
5. the effective abolition of child labour; and<br />
6. the elimination of discrimination in respect of employment<br />
and occupation.<br />
7. Businesses should support a precautionary approach<br />
to environmental challenges;<br />
8. undertake initiatives to promote greater environmental<br />
responsibility; and<br />
9. encourage the development and diffusion of environmentally<br />
friendly technologies.<br />
10. Businesses should work against corruption in all its<br />
forms, including extortion and bribery.<br />
We have 4,000<br />
foreign employees<br />
representing more than<br />
60 nationalities.<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
21
Financial<br />
responsibility<br />
<strong>SOL</strong>’s financial goals are based on profitable growth<br />
and profitability. In addition to organic growth, <strong>SOL</strong><br />
aims to acquire business operations and enterprises<br />
that will support the Group’s operations. A long-term<br />
goal is for return on investment (ROI) to exceed 20%.<br />
4rowth<br />
G<br />
will be financed from income. Our<br />
equity ratio of 43.7% enables cost-effective<br />
liquidity fluctuations. Good liquidity safeguards<br />
<strong>SOL</strong>’s payment obligations to stakeholders<br />
and also builds in flexibility for any<br />
quick acquisitions needed. <strong>SOL</strong>’s liquidity has remained at<br />
a good level. In addition to paying employees’ contributions<br />
and public payments, the Group has been able to<br />
finance investments and other acquisitions from income<br />
in accordance with set plans. <strong>SOL</strong> wants to ensure that it<br />
meets all payment obligations according to the agreed<br />
payment terms without delay, and also expects the same<br />
punctuality from customers with regard to their payments.<br />
Our liquidity is measured with the Quick ratio which in<br />
2016 was 1.3, meeting our objective.<br />
All of <strong>SOL</strong>’s services are produced locally, and the operations<br />
have been organised accordingly. <strong>SOL</strong>’s business<br />
management, as well as the financial and HR administration<br />
of <strong>SOL</strong> City, <strong>SOL</strong> headquarters in Finland, support<br />
our local operations. Some of the financial administration<br />
operates in Seinäjoki and Kouvola.<br />
<strong>SOL</strong> Group’s net sales have grown by 38% since 2011.<br />
The Group’s subsidiaries outside Finland have grown by<br />
184%, while the Finnish companies have grown by 23%.<br />
In 2016, the net sales in Finland were distributed as<br />
follows: property, cleaning, and facility services and security<br />
services 80.9%, Personnel services 14.6% and laundry<br />
services 4.5%. Finnish operations accounted for 81% and<br />
foreign operations 19% in 2016.<br />
<strong>SOL</strong>’s gross investments amounted to MEUR 6.9, while<br />
procurement of materials and services amounted to a<br />
moderate MEUR 11.7 in 2016.<br />
We operate nationally,<br />
we serve locally.<br />
22 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Group net sales, MEUR Change in net sales, %<br />
300<br />
250<br />
230,3<br />
262,10 269,6 274,0<br />
285,0<br />
25<br />
20<br />
200<br />
150<br />
100<br />
15<br />
10<br />
11,3<br />
13,8<br />
50<br />
5<br />
2,9<br />
1,6<br />
4,04<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Equity ratio, %<br />
Return on investment, MEUR<br />
60<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
39,6<br />
41,4 42,9<br />
44,8 43,7<br />
50<br />
40<br />
30<br />
20<br />
10<br />
31,6<br />
20,5<br />
7,2<br />
12,6<br />
12,9<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Gearing, %<br />
Quick Ratio<br />
-66,5<br />
Purchases, MEUR<br />
14<br />
12<br />
10<br />
12,4 12,6 12,5<br />
11,8<br />
11,3<br />
10,2<br />
12,88<br />
11,53<br />
11,7<br />
11,66<br />
8<br />
6<br />
Services<br />
Material<br />
4<br />
2<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
23
Responsibilities<br />
to stakeholders<br />
<strong>SOL</strong> wants to offer everyday experiences that delight,<br />
inspire and excite customers. At their best, these<br />
experiences elevate the mind, enhance everyday life and<br />
the workday, and provide a sense of cleanliness and security.<br />
55.1 Responsibilities<br />
to customers<br />
<strong>SOL</strong> offers high-quality services in a timely manner as<br />
agreed in the contract. The services are developed in accordance<br />
with the customer’s expectations and preferences.<br />
Our service solution model enables <strong>SOL</strong> to provide<br />
multiple services from one source, making our solutions<br />
the most advantageous economically.<br />
Productivity and efficiency are important goals in developing<br />
<strong>SOL</strong>’s processes. All our service sectors in Finland<br />
have a personnel recruitment and substitute system in<br />
electronic format. The personnel’s orientation training and<br />
some of the other training sessions are on the Internet,<br />
giving learners more freedom with regard to time and<br />
place. Nearly all of the invoices in Finland are transmitted<br />
to customers in a paperless format. Also nearly 100% of<br />
the purchase invoices are e-invoices. Continuous attention<br />
is paid to proper management of receivables, ensuring<br />
equal treatment for all customers.<br />
In Finland, we have enhanced the <strong>report</strong>ing system under<br />
the provisions of the Act on the Contractor’s Obligations<br />
and Liability when Work is Contracted Out. We use<br />
the www.tilaajavastuu.fi online service. These links enable<br />
customers to check that we fulfil our social responsibilities.<br />
5.2 Responsibilities<br />
to employees<br />
At <strong>SOL</strong>, employees have a key role in everything we do.<br />
In 2016, personnel costs represented 80.5% of net sales,<br />
while the figure in 2011 was 73.8%. Wages and salaries,<br />
excluding side expenses, amounted to MEUR 180.5 in<br />
2016. <strong>SOL</strong> bears responsibility for safeguarding employment<br />
also in the future. The company’s workforce consists<br />
mainly of people in permanent employment relationships,<br />
some of which may be part-time due to the nature of the<br />
work. The proportion of temporary staff will increase with<br />
the expansion of <strong>SOL</strong> Henkilöstöpalvelut Oy’s operations.<br />
Personnel are rewarded for good work performance,<br />
which is followed up by customer satisfaction and other<br />
weighted indicators, such as the scorecard. Rewards<br />
for successful work performance have been given, for<br />
instance, to the service district of the year, the vendor<br />
of the year, the service instructor of the year, the Service<br />
Supervisor of the year, and the Service Director of the year.<br />
Successful persons have also received wooden flowers,<br />
movie tickets and other minor merit awards.<br />
<strong>SOL</strong> organises an annual Quality Award competition<br />
with separate categories for service supervisors, service<br />
districts and sales personnel. Awards are also given for the<br />
environmental and well-being at work categories. Competition<br />
entries are submitted in the form of applications<br />
showing budgets, results and the previous year’s figures.<br />
The Quality Award is based on a competition by the<br />
Finnish Quality Association, which has been adapted to<br />
suit <strong>SOL</strong>’s needs. The key considerations in the competition<br />
are customer orientation, employee well-being and<br />
financial results. The practice has been established since<br />
1996.<br />
24 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Service supervisors Tony Itkonen and Vladlen<br />
Melechko received a <strong>SOL</strong> Quality Award<br />
in their role as supervisors of cleaning operations<br />
aboard Viking Line’s cruise ships. The<br />
most recent major development project carried<br />
out in cooperation with the customer was<br />
related to the complete renovation of m/s<br />
Gabriella.<br />
5.3 Responsibilities to the<br />
authorities<br />
<strong>SOL</strong> and its personnel must comply with local laws and regulations<br />
in all countries and under all circumstances. <strong>SOL</strong><br />
pays its statutory obligations in accordance with existing<br />
regulations. As an employer, <strong>SOL</strong> takes care of its employees’<br />
statutory contributions. The company also <strong>report</strong>s<br />
and compiles statistics for the authorities as agreed. In<br />
2016, <strong>SOL</strong>’s Finnish companies paid value-added tax, income<br />
tax, operational taxes and PAYE income tax totalling<br />
MEUR 66.4 (MEUR 58.8 million in 2011). Compulsory social<br />
security and pension contributions amounted to a total of<br />
MEUR 39.5 in 2016 and MEUR 36.1 in 2015.<br />
5.4 Responsibilities to<br />
suppliers and partners<br />
<strong>SOL</strong> purchases products, services and energy for its<br />
property, cleaning, facility maintenance and laundry<br />
services, as well as for production subcontracting services<br />
that include delivery and laundry services, outdoor area<br />
property management service and a variety of made-to-or-<br />
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25
der cleaning services. Products and services necessary<br />
for running the administration and operations are also<br />
purchased.<br />
<strong>SOL</strong>’s General Terms and Conditions apply to all<br />
suppliers, and invoices are paid according to the terms<br />
of payment. All payments made to suppliers are based<br />
on contracts and invoices. All forms of corruption and the<br />
use of illegal (“grey”) labour are strictly prohibited within<br />
<strong>SOL</strong>. Good contractual practice is monitored by internal<br />
controls and audits in accordance with the <strong>SOL</strong> Operating<br />
System.<br />
In 2016, all purchases by <strong>SOL</strong>’s Finnish companies were<br />
from within the EU area.<br />
<strong>SOL</strong>’s operations have significant indirect impacts, especially<br />
in smaller towns. <strong>SOL</strong> is a primary client for many<br />
entrepreneurs and thus affects the economic well-being of<br />
subcontractors’ employees.<br />
loans from banks. The Group’s foreign subsidiaries have<br />
bank loans. <strong>SOL</strong> Palvelut Oy has a limit of EUR 3 million.<br />
Service supervisors Tony Itkonen and Vladlen Melechko<br />
received a <strong>SOL</strong> Quality Award in their role as supervisors<br />
of cleaning operations aboard Viking Line’s cruise ships.<br />
The most recent major development project carried out in<br />
cooperation with the customer was related to the complete<br />
renovation of m/s Gabriella.<br />
5.5 Liabilities to<br />
financial institutions<br />
<strong>SOL</strong>’s goal is to finance its operations from income. The<br />
Finnish companies do not have short-term or long-term<br />
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All procurement is governed<br />
by written supplier<br />
contracts and pre-planned<br />
logistics solutions.<br />
<strong>SOL</strong> does not use random<br />
procurement or randomly<br />
selected suppliers.<br />
Our procurement procedures<br />
include at least the following:<br />
• legality – compliance with each country’s<br />
• applicable legislation<br />
• corruption and bribery ban<br />
• respect for employees’ human rights<br />
• child labour ban<br />
• employee safety and health<br />
• environmental protection<br />
• effective service chain with low overall cost<br />
• CO2 emissions of the auto equipment max. 130 g/km<br />
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27
Environmental<br />
responsibility<br />
We all have a dream of a better and cleaner environment,<br />
of a place where our children and grandchildren can<br />
grow and live safely. Environmental deterioration<br />
must be stopped. We can affect our future by<br />
actively seeking new ways and means to secure a<br />
cleaner and healthier environment in the future.<br />
66.1 Environmental policy<br />
<strong>SOL</strong> wants to provide services in a manner that aims to conserve<br />
natural resources and reduce environmental impacts.<br />
We are aware of the environmental impact of our services<br />
and of our responsibility as the user of products and the<br />
producer of waste, all of which are addressed throughout<br />
our decision-making processes. We comply with all valid<br />
laws and regulations in all our activities.<br />
We are committed to continuously improving our operations<br />
and reducing environmental impacts. We purchase<br />
the most eco-friendly technology available at reasonable<br />
costs. We aim to use natural resources and energy in a way<br />
that minimises their consumption and emissions. We promote<br />
the right type of waste sorting and we aim to reduce<br />
the amount of waste generated.<br />
We disseminate information about our operations<br />
transparently, both to our external stakeholders and to<br />
<strong>SOL</strong>’s own personnel. We aim at being able to guide our<br />
customers towards an environmentally friendly model of<br />
operations and support them in achieving their environmental<br />
goals through our expertise. We aim to be ranked by<br />
our customers and personnel as the best operator in the<br />
environmental field.<br />
We train, advise and encourage <strong>SOL</strong> employees to work<br />
in a responsible manner and to address environmental<br />
issues more efficiently both at work and in their leisure time.<br />
We develop indicators that can verify the environmental impact<br />
of our operations. The management regularly monitors<br />
the status of the environmental issues. The business line<br />
management reviews include an evaluation of the environmental<br />
management, and necessary measures are taken<br />
based on the results of the evaluation.<br />
6.2 Environmental objectives<br />
<strong>SOL</strong>’s environmental goals and actions are defined by<br />
sector on the basis of the environmental objectives below.<br />
According to emission intensity, property maintenance<br />
operations are a low-emission business sector.<br />
• Addressing the conservation of natural resources and<br />
reduction of environmental impact both in our procurement<br />
and in our service provision.<br />
• Increasing the personnel’s environmental knowledge<br />
• Increasing the customers’ environmental awareness<br />
6.3 Environmental goals<br />
Common objectives for all service sectors based on the<br />
environmental goals are:<br />
• Using suppliers who operate in an environmentally<br />
responsible manner and have quality and environmental<br />
management certificates<br />
• All staff to observe environmental considerations in their<br />
work<br />
• Guiding customers towards eco-friendlier activities (e.g.<br />
reducing the amount of waste, encouraging waste sorting,<br />
improving energy saving).<br />
<strong>Responsibility</strong> is a shared concern for all of us.<br />
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<strong>SOL</strong> Environmental Goals<br />
Impacting the<br />
development of<br />
customers’ environmentally<br />
friendly<br />
operations<br />
Reducing paper and<br />
energy consumption<br />
Reducing the amount<br />
of waste sacks, plastic<br />
bags and plastic<br />
packaging<br />
Environmentally<br />
responsible suppliers<br />
The personnel must<br />
consider both the<br />
customer’s and<br />
internal environmental<br />
aspects<br />
Reducing the overall<br />
consumption of<br />
chemicals and<br />
detergents<br />
Reducing emissions<br />
from vehicle and<br />
machine fuel<br />
consumption<br />
Emission intensity<br />
Source: Statistics Finland, Emissions into air by industry and Annual national accounts.<br />
Air traffic<br />
Water traffic<br />
Energy maintenance<br />
Agriculture, fishing industry and game husbandry<br />
Oil refining and production of chemicals<br />
Water supply, sewerage and waste management<br />
Metal refinement and manufacture of metal products<br />
Land traffic<br />
Forest industry<br />
Mining and quarrying<br />
All business sectors total<br />
Construction<br />
Food industry, etc.<br />
Forestry<br />
Other industry<br />
Trade<br />
Property maintenance operations<br />
Operations serving traffic, mail<br />
Other services and administration<br />
0 2 000 4 000 6 000<br />
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6.4 Financial liabilities<br />
regarding climate change<br />
Awareness of, and discussions about, climate change and<br />
its effect on our living environment increases interest in<br />
eco-friendly products and services. We select products with<br />
a long lifecycle instead of disposable items. This is relevant<br />
to <strong>SOL</strong>’s business expansion and revenue growth, but also<br />
has an increasing effect on costs.<br />
We intend to devote even more attention to the logistics<br />
of our services in order to keep our operations cost-effective<br />
and environmentally friendly.<br />
6.5 Environmental aspects<br />
<strong>SOL</strong>’s environmental policy, goals and objectives are<br />
based on information about the environmental aspects<br />
and impacts of our operations and services. Identification<br />
and evaluation of the environmental aspects are presented<br />
in the Environmental Management system. A valuation<br />
method that is based on information gained from our own<br />
operations, on the company’s potential leverage, and on<br />
information provided by external studies is used for identifying<br />
the importance of environmental aspects. Statutory<br />
requirements, importance to the company’s image, environmental<br />
benefits in relation to implementation costs,<br />
and the severity and scope of environmental impacts are<br />
taken into account when assessing importance factors.<br />
The industry-specific assessment procedure for<br />
environmental aspects and the criteria for valuation are<br />
documented in the environmental data of our Operating<br />
System. The activities receiving the largest weighting<br />
using this method have been selected for implementation.<br />
An industry-specific implementation programme defining<br />
the operating instructions, timetables, measurement<br />
method and responsibilities for achieving the environmental<br />
goals and objectives has been prepared. The implementation<br />
programmes are documented in the environmental<br />
data of our Operating System.<br />
Customer-specific environmental goals will be prepared<br />
in conjunction with customer-specific action plans.<br />
The Environmental Team coordinates operations for all<br />
sectors.<br />
The task of the regional district’s environmental coordinators<br />
is to monitor the realisation of customer-specific<br />
environmental goals and identify new potential viewpoints.<br />
The environmental coordinators will conduct customer-specific<br />
environmental reviews and give <strong>report</strong>s about<br />
them to the Environmental Team.<br />
Environmental aspects are evaluated when necessary<br />
and at least once every three years. The required changes<br />
in action plans and goals are implemented based on the<br />
information obtained from the evaluation and monitoring.<br />
Environmental reviews by sector and by location will<br />
be made according to the annual plan prepared by the<br />
Environmental Team.<br />
The achievement of the environmental goals specified<br />
in action plans is monitored in development discussions.<br />
The districts will monitor the implementation of the action<br />
plans in their district meetings. The implementation of the<br />
environmental plans will also be evaluated in conjunction<br />
with internal audits.<br />
.<br />
6.6 Me, you, <strong>SOL</strong> and<br />
the environment<br />
As part of the Society’s Commitment to Sustainable Development,<br />
<strong>SOL</strong> as a service employer has committed to<br />
strengthening <strong>SOL</strong>’s egalitarian work community. A good<br />
work community is made up of people from different<br />
cultures and of different ages and backgrounds. We are<br />
an international company, but our values are the same<br />
regardless of the country of operation. According to our<br />
image of humankind, people want to do good work. We<br />
want to give everyone this opportunity. We signed the<br />
Finnish Society’s Commitment to Sustainable Development<br />
in June 2016. The targets and actions related to the<br />
commitment were drafted in cooperation between our<br />
environmental coordinators, the Environmental Team and<br />
senior management.<br />
As a steady employer, our commitment also includes<br />
wise accounting practices and sustainable work that respects<br />
nature and people. We communicated our Commitment<br />
2050 targets and actions in the form of a video to<br />
30 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
each a larger number of our personnel, customers and<br />
stakeholders.<br />
Commitment 2050 targets and actions<br />
1. Equal opportunities for well-being<br />
Your <strong>SOL</strong>, everyone’s <strong>SOL</strong>. We are all different and we<br />
all have a place at <strong>SOL</strong>. We value diversity and consider<br />
it a resource. We develop management at <strong>SOL</strong> and we<br />
believe that the our management in the future will be<br />
service-oriented management. We believe that a good<br />
work community is made up of people of different ages<br />
and from different cultures. Today, 30% of our employees<br />
are foreign nationals. We predict that, by 2050, 60% of<br />
our employees will be from countries other than Finland.<br />
<strong>SOL</strong> also has a lot of young employees. Employees under<br />
30 years of age make up 42% of our workforce. According<br />
to our image of humankind, people want to do<br />
good work. We want to give everyone this opportunity.<br />
We are committed to developing <strong>SOL</strong>’s age programme.<br />
The goal of the age programme is to promote the<br />
work ability and well-being at work of <strong>SOL</strong>’s employees,<br />
support the motivation of different age groups, reduce<br />
sickness absences, increase the average retirement age,<br />
increase respect towards senior workers and ensure the<br />
transfer of tacit knowledge.<br />
Age programme established/not established<br />
We are committed to promoting the career development<br />
of immigrant employees<br />
we have salaried employees who are immigrants in<br />
all of our districts achieved/not achieved<br />
2. Working sustainably<br />
We want <strong>SOL</strong> to be a place where happy multi-experts<br />
work. We provide a wide range of active training opportunities<br />
and our online study programmes bring studies<br />
close to <strong>SOL</strong> employees right from the very beginning. We<br />
train professionals who know how to do it right the first<br />
time and develop their work continuously in small steps<br />
according to the LEAN method. The <strong>SOL</strong> Life programme<br />
looks after the safety and well-being of employees<br />
throughout their employment relationship. We want our<br />
employees to retire healthy. We actively monitor the job<br />
satisfaction of our personnel as well as the rates of sickness<br />
absences, accidents and disability pensions. We have<br />
set goals for these and aim to achieve them.<br />
Now we want to make sure that the information we<br />
receive through employee satisfaction surveys is accurate.<br />
We also want to develop new methods for supporting<br />
our employees. We value the joy of working and everyday<br />
creativity.<br />
.<br />
Commitment 2050 Summer Celebration, 2 June 2016<br />
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31
We are committed to developing our work so that the<br />
results of the Joy Barometer employee satisfaction<br />
survey is above four and the response rate is 80%.<br />
Joy Barometer: Target: above 4 (scale 1–5) + response<br />
rate 80% in all employee groups achieved/<br />
not achieved<br />
We are committed to developing an online tool for<br />
supervisors that enables them to be constantly present<br />
and support the well-being of employees.<br />
Online tool for supervisors 2050 achieved/not<br />
achieved<br />
3. Resource-wise finances<br />
<strong>SOL</strong> is a Solar System that provides its customers with<br />
service solutions. We work to break down unnecessary<br />
barriers between different services. It is easier and<br />
more affordable for our customers to buy, manage and<br />
develop work when they can do it with a single partner.<br />
The customer saves time and we, for our part, can offer<br />
new work opportunities for multi-experts. By combining<br />
different tasks, we can make it easier to find full-time work<br />
from within our company. Supervisors are responsible<br />
for shift planning and ensuring shift availability. Now we<br />
want to make it possible for employees to book work<br />
shifts easily and flexibly. We value a sunny and satisfied<br />
customer and an enterprising spirit above all else.<br />
We are committed to developing an electronic shift<br />
booking system.<br />
electronic shift booking system achieved/not<br />
achieved<br />
4. Decision-making that respects nature<br />
We always consider the environment in our work. We aim<br />
to constantly decrease the load that our operations cause<br />
on the environment. We have already done a lot of work in<br />
this regard and we want to ensure that this work continues.<br />
We are establishing rules for our procurements. Reliability<br />
is one of our core values.<br />
We are committed to establishing procurement instructions<br />
that will take into account matters important to<br />
us:<br />
• our partner suppliers will have environmental management<br />
certificates<br />
• we will favour domestic suppliers<br />
• we will use less detergent than we do now<br />
• we will use less unrecycled plastic<br />
• we will use detergents with environmental labels (85%)<br />
We are committed to auditing suppliers and our own<br />
procurement processes.<br />
procurement instructions complied with/not complied<br />
with<br />
supplier audits carried out/not carried out<br />
6.6.1 It all starts with orientation<br />
The Solar System Orientation Handbook is in active use.<br />
The online orientation for service providers includes an<br />
environmental section that guides our employees towards<br />
environmentally responsible operations.<br />
6.6.2 Environmental training<br />
<strong>SOL</strong>’s environmental coordinators came together for training<br />
twice during the year. The topics of the spring session<br />
in Seinäjoki included the deployment of an electronic<br />
environmental auditing form and the sorting of waste.<br />
The autumn meeting was held in Helsinki with a focus on<br />
the Green Key environmental programme and the circular<br />
economy as well as <strong>SOL</strong>’s internal Environmental Goals<br />
and how to achieve them.<br />
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<strong>SOL</strong>’s environmental<br />
coordinators work to<br />
promote sustainable<br />
development.<br />
Environmental training sessions organised by the environmental<br />
coordinators are part of our training programme.<br />
In 2016, the environmental coordinators organised 30<br />
environmental training sessions at our service districts and<br />
customer locations. The environmental training sessions<br />
improve the service providers’ capacity to meet current<br />
expectations.<br />
Swan Ecolabel and Green Key orientation<br />
All <strong>SOL</strong> personnel working at hotels that have been<br />
awarded the Nordic Swan Ecolabel or the Green Key label<br />
participated in site-specific orientation during the year.<br />
This ensures environmentally conscious and high-quality<br />
operations at our customer locations.<br />
6.7 Developing in-house<br />
operations<br />
6.7.1 A new approach to environmental<br />
audits<br />
<strong>SOL</strong>’s environmental audit form was revised and the new<br />
electronic form was rolled out in May 2016. The revised<br />
version increased the number of environmental audits<br />
conducted at customer locations and made it easier to<br />
analyse and utilise the results of the environmental audits.<br />
We use the environmental audits to monitor whether<br />
our operations meet <strong>SOL</strong>’s Environmental Goals and<br />
measure our performance at the district, business line<br />
and customer-specific levels. Our environmentally friendly<br />
operations are guided by the development perspective.<br />
We conducted a total of 64 customer-specific environmental<br />
audits.<br />
6.7.2 Recipes<br />
We have revised, modernised and harmonised the service<br />
concepts used at <strong>SOL</strong>. The focus of the conceptualisation<br />
was on the renewal of the product selection, cleaning<br />
methods, cleaning agents and equipment as well as simplifying<br />
the product selection and ensuring that it matches<br />
the needs. Environmental aspects were critically evaluated<br />
for each concept. The outcome of this effort was <strong>SOL</strong><br />
Recipes for various concepts.<br />
6.7.3 Detergents 85% eco-labelled<br />
We have paid particular attention to choosing detergents<br />
and assessing their environmental impacts. For this reason,<br />
<strong>SOL</strong> only uses eco-labelled products in washing cleaning<br />
textiles and dishes. With respect to other detergents,<br />
the proportion of Nordic Swan eco-labelled products is<br />
85%. We cooperate with a Finnish detergent manufacturer<br />
and invest in product development. We ensure the regular<br />
renewal of the Swan label criteria.<br />
We reduced the use of chlorine-based detergents by<br />
58% in 2016. The reduction was achieved by being more<br />
specific about where they are to be used and by selecting<br />
alternative disinfectants to replace chlorine-based disinfectants.<br />
We aim to make smart choices that support environmental<br />
protection and keep waterways clean.<br />
Consumption of eco-labelled and other detergents<br />
100<br />
90<br />
80<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
Eco-labelled detergents<br />
Other detergents<br />
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<strong>Responsibility</strong> is reflected<br />
in day-to-day choices.<br />
6.7.4 Reducing chlorine<br />
<strong>SOL</strong> began a determined effort to reduce chlorine-based<br />
disinfectants several years ago. In 2016, we reduced the<br />
use of chlorine-based disinfectants by 58%. The reduction<br />
was achieved by developing and narrowing down the<br />
product selection. The use of environmentally friendly<br />
methods, such as steam cleaning, has been increased at<br />
customer locations where the use of steam is possible.<br />
6.7.5 Reducing plastic<br />
We are utilising new Cleantech in the manufacturing of<br />
waste sacks. The new technology has significantly reduced<br />
the environmental load. On average, it yields savings of<br />
approximately 28% in the use of natural resources.<br />
Cleantech waste sacks and bin liners also help ensure a<br />
pleasant, safe and functional work environment for employees<br />
and customers. This choice has an impact on the<br />
use of virgin raw materials, energy consumption, logistics<br />
and warehousing costs and the environmental load. Our<br />
choices in this area have also reduced the amount of<br />
waste through the use of more appropriate sack sizes and<br />
colours. In 2016, we reduced the amount of waste plastic<br />
from waste sacks and packaging materials by 50,000 kg.<br />
We are currently using some 1,500 permanent waste<br />
sacks. The use of permanent waste sacks has seen steady<br />
growth. We carried out several campaigns related to the<br />
use of permanent waste sacks at our service districts in<br />
2016.<br />
6.7.6 Eco-labelled cleaning equipment and<br />
towels<br />
We invest in eco-labelled cleaning textiles. All of the mop<br />
strings and microfibre towels we use carry the Swan label.<br />
Operating responsibly is important for us. We only use the<br />
best products available.<br />
6.7.7 Utilising recycled fibres<br />
<strong>SOL</strong>’s responsibility is reflected in the practical choices we<br />
make. To date, we have utilised some 100,000 recycled<br />
plastic bottles. They have been turned into uniform shirts,<br />
lightweight backpacks, permanent waste sacks and mop<br />
bags. With more than 1,000,000 plastic bottles produced<br />
every day around the world, turning recycled plastic bottles<br />
into recycled textiles is a major eco-friendly choice!<br />
The products used by service providers at <strong>SOL</strong> Palvelut<br />
“Make My Bed Collection” hotels mainly consist<br />
of Ecostep textiles that have been manufactured using<br />
environmentally friendly methods. High-quality European<br />
workwear textiles ensure long service lives for products.<br />
The products are manufactured at audited production<br />
facilities.<br />
<strong>SOL</strong> is also involved in the Telaketju project with partners<br />
including VTT Technical Research Centre of Finland,<br />
the Finnish Funding Agency for Technology and Innovation<br />
(Tekes) and Touchpoint to develop new models for<br />
utilising discarded textiles.<br />
With the total amount of textiles discarded in Finland<br />
already as high as 70 million kg per year, we want to participate<br />
in creating new business models for utilising them.<br />
6.7.8 Environmentally friendly transport<br />
The CO2 emission limit of our passenger cars for 2016 was<br />
set as 130 g/km. Some 61.6% of our fleet met this goal.<br />
<strong>SOL</strong>’s vehicle purchases and driver training aim towards<br />
smaller emissions and economical driving habits. Some of<br />
our vehicles are hybrids, and we are also testing natural<br />
gas and all-electric cars.<br />
Last year, <strong>SOL</strong> operated 381 vehicles, 224 of which were<br />
passenger cars and 157 vans. The cars are used for about<br />
six years, making the average age of the cars three years.<br />
This means that about 60–70 new cars are procured per<br />
year.<br />
During the procurement period 2013–2014, the emission<br />
limit of vehicle purchases, excluding production<br />
vehicles, was 140 grams of carbon dioxide per 100 kilometres.<br />
The limit was lowered to 130 grams for the current<br />
procurement period 2016–<strong>2017</strong>.<br />
We have adhered to this limit quite well, as the average<br />
emissions of all our passenger cars were 122 grams per<br />
vehicle last year and 126 grams for vehicles purchased<br />
during the year. For vans, the corresponding figures were<br />
150 and 131 grams.<br />
In the case of vans, the emission values are affected<br />
by the size of the vehicle. Last year, we purchased quite<br />
large vans, even though most of the vans we use are rather<br />
small.<br />
A 95% majority of <strong>SOL</strong>’s vans are diesel vehicles. Some<br />
60% of our passenger cars are petrol vehicles. There are<br />
seven hybrid vehicles, one natural gas vehicle and one<br />
electric car. The electric car was purchased for testing<br />
purposes.<br />
In addition to car-specific emission values, <strong>SOL</strong> pays<br />
attention to economic driving habits.<br />
<strong>SOL</strong> has organised economic and safe driving courses<br />
in cooperation with Pohjola.<br />
Two out of three districts have already taken part in one<br />
of these courses over the past two years. We hope to train<br />
the rest of the districts during this year and the next.<br />
6.7.9 Waste management at <strong>SOL</strong> City<br />
We introduced a renovated modern waste sorting facility<br />
at <strong>SOL</strong> City in the beginning of 2016. The new facilities<br />
make the sorting of waste convenient and economical for<br />
all users of the property.<br />
34 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Energy utilisation rate of waste<br />
23 %<br />
Material utilisation rate of waste<br />
77 %<br />
100 000<br />
plastic bottles were turned into<br />
26 240<br />
uniforms, plastic bags,<br />
permanent waste sacks and<br />
PR products<br />
The improvements mean that the energy utilisation rate<br />
of our waste is now 23% and the material utilisation rate is<br />
77%.<br />
6.7.10 Events and competitions<br />
Energy Awareness Week<br />
In October, we participated for the third time in the Energy<br />
Awareness Week campaign organised by Motiva. Our<br />
theme for the week was to identify energy consumption<br />
culprits. During the week, observations of energy consumption<br />
culprits (e.g. lights that are on all the time, leaking taps<br />
and toilets, temperatures that are too low or too high) were<br />
recorded in an electronic system and fixed at our operating<br />
locations.<br />
European Week for Waste Reduction<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
35
Our theme for the European Week for Waste Reduction<br />
in November was Plastic-free Alternatives, with the focus<br />
being on ways to influence the amount of plastic used and<br />
the environmental problems related to waste plastic.<br />
Biodiversity competition between businesses<br />
<strong>SOL</strong> participated in the inaugural Biodiversity Award 2016<br />
competition for businesses.<br />
The purpose of the competition was to highlight the<br />
best business solutions and related communication practices<br />
of companies that invest in preserving biodiversity as<br />
well as draw the attention of all Finnish enterprises to this<br />
crucial challenge that also represents a significant business<br />
opportunity for companies in all industries. While we<br />
did not qualify for the final round of the hotly contested<br />
competition, we received great feedback on our efforts to<br />
reduce plastic and chlorine use at our operating locations<br />
as well as our effective communications related to environmental<br />
issues.<br />
6.8 <strong>SOL</strong> Pesulapalvelut<br />
The Group’s laundry services company, <strong>SOL</strong> Pesulapalvelut,<br />
invests in eco-friendliness in both machinery and detergents.<br />
As advances are made in both washing techniques<br />
and detergents, we use ongoing training to keep our laundry<br />
personnel up to speed with the changes. The training<br />
of new employees is also very comprehensive.<br />
With respect to the environmental impacts of dry<br />
cleaning, the largest change has been the switch from per<br />
wash to hydrocarbon wash. <strong>SOL</strong> Pesulapalvelut is constantly<br />
renewing its machinery and replacing old machines<br />
with hydrocarbon machines in about 2–5 laundry shops<br />
per year. In 2016, the machines at two laundry shops were<br />
replaced by new hydrocarbon machines and two other<br />
laundry shops also received new hydrocarbon machines.<br />
The perchloroethylene used in the old machines has been<br />
classified as a harmful and environmentally damaging<br />
substance, while hydrocarbon solvents are not harmful<br />
to the environment. The new hydrocarbon machines also<br />
produce less waste.<br />
Dosage pumps are installed in water washing machines<br />
in several laundry shops each year. Using automatic dispensers<br />
for detergents means that the laundry personnel<br />
do not need to handle as many different cleaning agents<br />
as before. It also saves working time and stain removal<br />
agents and prevents the excessive dosing of detergents.<br />
New, computer-controlled water washing machines use<br />
strictly specified amounts of detergents and water. The<br />
detergents are as environmentally friendly as possible, and<br />
the consumption of water and electricity is also monitored.<br />
The laundry shops aim to optimise their use of machines<br />
and switch off any machines that are not in use.<br />
With regard to pre-wash stain removal, the personnel<br />
have been instructed to avoid the excessive use of<br />
cleaning agents. Detergent-specific personal protection<br />
instructions have been attached to the products used, and<br />
each laundry shop also has instructions for emergencies.<br />
In autumn 2015, we began a pilot project on collecting<br />
the cooling water of a dry washing machine for washing<br />
with water. The cooling water from the dry cleaning<br />
machine is run into a separate water tank. As this water is<br />
warmer than room temperature, up to 45 degrees, it can<br />
be utilised by a water washing machine. Electricity is also<br />
saved when clothes put in a tumble dryer are first rinsed<br />
with warm water. Going forward, water collection systems<br />
will be installed in new laundry shops.<br />
<strong>SOL</strong> laundry shops have participated in the European<br />
Week for Waste Reduction for several years and they will<br />
do so again in <strong>2017</strong>. The theme is the reduction of plastic<br />
waste by decreasing the use of plastic packaging materials.<br />
During the week, customers can select a reusable<br />
fibre bag instead of plastic packaging, free of charge. A<br />
growing number of our laundry shops are plastic-free,<br />
meaning that they return clean clothes to customers without<br />
plastic packaging. We reduced our plastic consumption<br />
by 6% in 2016 compared to the previous year. Plastic<br />
consumption has seen a steady year-to-year decrease in<br />
our laundry services.<br />
In 2016, we also began collecting textiles for recycling.<br />
Customers at our Hakaniemi and Sello laundry shops can<br />
dispose of textiles in convenient recycling containers.<br />
Environmentally conscious acts are actively communicated<br />
to various stakeholders. For example, customers<br />
have been instructed to return hangers and use protection<br />
treatment that makes the textiles last longer and reduces<br />
the need for washing them.<br />
6.9 Environmental Deed<br />
competition and rewards<br />
Every year, we give out a reward for an excellent and<br />
innovative environmental deed based on an application<br />
submitted as a part of the Quality Award competition.<br />
In 2016, trainer Paula Haanpää received the award in<br />
recognition of her determined and long-term environmental<br />
efforts.<br />
36 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Environmental aspects at <strong>SOL</strong><br />
Environmental aspects at <strong>SOL</strong> Palvelut<br />
Environmental file<br />
<strong>SOL</strong><br />
Criteria for assessment procedure<br />
for environmental aspects based<br />
on environmental reviews and the<br />
environmental programme<br />
IMPORTANCE FACTORS/IMPACT<br />
FACTORS<br />
A = Statutory requirements<br />
B = Importance to image<br />
C = Environmental benefits/costs<br />
D = Severity of environmental impacts<br />
E = Potential leverage<br />
Total = (A+B+C+D)*E<br />
IMPORTANCE SCALE<br />
0 = Statutory requirements<br />
1 = Importance to image<br />
2 = Environmental benefits/costs<br />
3 = Severity of environmental impacts<br />
ACTIVITY, PROCESS OR SERVICE ENVIRONMENTAL ASPECT ENVIRONMENTAL IMPACT IMPORTANCE<br />
A B C D E Total<br />
PROCUREMENT OF PRODUCTS,<br />
MACHINES/EQUIPMENT<br />
Selection of suppliers<br />
Environmental impact caused by the<br />
production of products<br />
1 3 2 3 3 27<br />
Selection of suppliers, cleaning<br />
services<br />
Environmental impact caused by<br />
consumption<br />
1 3 1 1 3 18<br />
Selection of suppliers, property<br />
services<br />
Environmental impact caused by<br />
consumption<br />
1 3 1 1 3 18<br />
Selection of suppliers, laundry<br />
services<br />
Environmental impact caused by<br />
consumption<br />
3 3 1 3 3 30<br />
PRODUCTION/SERVICE<br />
Correct selection, dosage and use of<br />
substances to be used<br />
Impact on wastewater caused by the<br />
unnecessary use of detergents<br />
1 2 2 2 3 21<br />
Wastewater generated<br />
Consumption of water supply, impact<br />
on water treatment plants<br />
0 2 2 1 3 15<br />
Energy consumption<br />
Consumption of natural resources<br />
and emissions caused by production<br />
1 1 1 1 2 8<br />
-Waste generated by in-house<br />
processes<br />
Plastic waste<br />
Conservation of natural resources,<br />
environmental impact caused by<br />
waste and emissions at the final<br />
disposal site<br />
1 2 2 2 3 21<br />
Hazardous waste, PER waste,<br />
Laundry services<br />
Environmental impact caused by<br />
waste and emissions at the final<br />
disposal site<br />
3 2 2 3 3 30<br />
Transportation<br />
Fuel consumption/emissions caused<br />
by driving<br />
Consumption of energy resources,<br />
impact on atmosphere<br />
1 2 2 1 2 12<br />
Maintenance of transport fleet and<br />
machines<br />
Service life of transport fleet Conservation of natural resources 2 1 2 1 2 12<br />
PERSONNEL ACTIONS<br />
Personnel’s environmental awareness,<br />
eco-friendly and environmentally<br />
oriented activities<br />
Identifying and addressing environmental<br />
aspects at work and in leisure<br />
time<br />
0 3 2 2 3 21<br />
Guidance and training<br />
Increasing personnel’s environmental<br />
awareness and knowledge<br />
Improving personnel’s ability to act<br />
sustainably in their work<br />
0 3 2 2 3 21<br />
COOPERATION WITH CUSTOMERS<br />
Recognising and supporting the customer’s<br />
environmental activities<br />
<strong>SOL</strong>’s role in ensuring the customer’s<br />
environmental objectives are met<br />
3 3 2 1 3 27<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
37
Social<br />
responsibility<br />
The Group’s strategy recognises employees’ commitment<br />
and satisfaction and gives high priority to personnel issues.<br />
HR work is done with and among the personnel in all the<br />
Group’s business sectors. The joy of<br />
working is one of <strong>SOL</strong>’s core values.<br />
77.1 HR issues at the core<br />
of the Group’s strategy<br />
Personnel costs form the largest part of overall costs. High<br />
priority is given to raising and maintaining the personnel’s<br />
enthusiasm, willingness and readiness to serve, and vocational<br />
skills, as these are the factors guaranteeing superior<br />
service to customers. Committed employees comply better<br />
with unified instructions and ensure long-term operations<br />
of high-quality. Trust is the cornerstone of our work. Competent<br />
personnel with the right attitude in the right tasks,<br />
continuous personnel development, performance management,<br />
feedback and incentive strategy are the focus<br />
areas of the company’s HR strategy. The feeling that one’s<br />
work is useful is important to everyone and creates the joy<br />
of working. <strong>SOL</strong>’s HR strategy is based on a positive image<br />
of humankind, where everyone wants to do good work, to<br />
succeed and to be thinking and feeling human beings who<br />
accept individuality. Our management culture must support<br />
trustworthy interaction and an atmosphere that encourages<br />
creativity.<br />
Personnel development focuses on orientation and<br />
training that support the employees themselves and the<br />
satisfaction of customer-specific needs. The training is monitored<br />
through a Training Index, sorted by employee and by<br />
customer. The coaching and training sessions are supported<br />
on a personal level by competence assessment and a<br />
learning passport. Each <strong>SOL</strong> employee completes orientation<br />
training online, and a supervisor and a tutor ensure<br />
location-specific competence through method and on-site<br />
orientation and constant care for the well-being of the personnel.<br />
At the end of their probationary period, each <strong>SOL</strong><br />
employee also attends the <strong>SOL</strong> IN training in their district.<br />
Each employee acknowledges that he/she has completed<br />
orientation training sessions.<br />
For a long time, <strong>SOL</strong> has used employees trained as<br />
tutors, who also work as occupational guides to support the<br />
training process. Their role was enhanced at the beginning<br />
of 2015 to cover the implementation of location-specific<br />
training and ensuring competence. Salaried employees are<br />
additionally provided with mentoring and coaching in their<br />
sales and managerial work. The employee-specific Quality<br />
Passport, where positive customer feedback is documented<br />
with a laughter or smile symbol, continues to be used as a<br />
feedback tool.<br />
Our aim is to offer opportunities for job rotation and<br />
career advancement within the Group. Internal recruitment<br />
and external job applications, today mainly in electronic<br />
format, create a foundation for the company’s expanding<br />
operations. The individual’s own views and his/her desire<br />
and intent to develop and move forward are also seriously<br />
discussed at the ‘From goals to results’ discussions.<br />
Late in the year, we published the <strong>SOL</strong> Age Programme<br />
aimed at promoting the work ability of employees of all<br />
ages. The goals of the age programme are to support the<br />
work ability of different age groups, maintain good work<br />
fitness and reduce sickness absences as well as promote<br />
positive cooperation between different age groups. We pay<br />
special attention to young people and “yellow panthers”.<br />
A further goal of the age programme is to increase the<br />
average retirement age. At present, <strong>SOL</strong> employees retire<br />
on old-age pension at the average age of 63.5 years, while<br />
the average age of retirement due to illness is 58.5 years. We<br />
do not condone discrimination against any age group.<br />
The goals of the <strong>SOL</strong> Age Programme are supported by<br />
the <strong>SOL</strong> Life well-being at work programme, which has been<br />
established for a long time now.<br />
The “Backpack of Happiness” project developed as part<br />
of the <strong>SOL</strong> Life programme has been continued. Workshop<br />
activities and the use of well-being at work mentors have<br />
been expanded to cover all service districts, with a wellbeing<br />
coordinator appointed for each district.<br />
.<br />
38 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
Wages and social security expenses (MEUR)<br />
Wages and salaries, statutory social security expenses and benefits 2012–2016<br />
200<br />
175<br />
161,3<br />
169,0<br />
172,2<br />
180,5<br />
150<br />
140,1<br />
125<br />
100<br />
75<br />
50<br />
25<br />
0<br />
33,6<br />
3,2<br />
2012<br />
41,0<br />
4,5<br />
2013<br />
44,0<br />
4,7<br />
2014<br />
44,9<br />
3,6<br />
2015<br />
49,0<br />
3,3<br />
2016<br />
Wages and salaries<br />
Social security expenses<br />
Non-statutory social security<br />
expenses<br />
Taxes paid (MEUR)<br />
50<br />
40<br />
41,0<br />
42,4<br />
35,9 36,1<br />
43,5<br />
39,5<br />
30<br />
20<br />
22,0<br />
22,3<br />
21,8<br />
Prepaid taxes<br />
VAT paid<br />
Income taxes<br />
10<br />
Social security contributions<br />
0<br />
1,1<br />
2014<br />
2015<br />
1,5 1,1<br />
2016<br />
INSURANCE PREMIUMS AND TYEL 2015 2016<br />
Employee pension payments and unemployment insurance payments,<br />
employer’s contributions<br />
TyEL, accident insurance, group life insurance and unemployment insurance payments,<br />
employer’s contributions<br />
MEUR 9.6 MEUR 10.8<br />
MEUR 36.1 MEUR 39,5<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
39
7.2 Number of personnel<br />
and type of employment<br />
relationships<br />
The average number of employees each year is calculated<br />
from the average number of employees on the last day<br />
of each month, and every person is included in the figure<br />
regardless of the number of his/her working hours (not FTE<br />
number).<br />
In 2016, the <strong>SOL</strong> group employed 12,862 people (2015:<br />
12,031). The number of personnel increased by 831 people.<br />
In 2016, an average of 9,290 people worked in <strong>SOL</strong>’s Finnish<br />
operations, corresponding to 7,484 when converted into<br />
full-time employees, and an average of 3,275 people<br />
worked in our foreign subsidiaries. <strong>SOL</strong> employs over 800<br />
seasonal workers in Finland each year. We participate in the<br />
Responsible Summer Job campaign.<br />
Some 92% of the personnel of our Finnish companies<br />
worked in permanent employment relationships in 2016<br />
compared to 93% in 2015.<br />
For 93% of the Group’s employees in Finland, their job<br />
in the <strong>SOL</strong> Group was their primary occupation. At the end<br />
of 2016, a total of 128 our employees in Finland were on<br />
nursing leave, maternity or nursing leave, rotational leave or<br />
study leave. The figures do not include the temporary staff<br />
of <strong>SOL</strong> Henkilöstöpalvelut.<br />
Employment relationships are mainly agreed until further<br />
notice, except with <strong>SOL</strong> Henkilöstöpalvelut, where the majority<br />
of the employment relationships are fixed-term.<br />
Ilmarinen granted 67 old age pensions in 2016 (old age<br />
pension and old age pension payable on early retirement).<br />
One employee was granted a part-time pension. A total of<br />
24 people were granted disability pension, of whom five<br />
receive part-time disability pension. The average retirement<br />
age at <strong>SOL</strong> has increased over the years. In 2016, the average<br />
retirement age was 63.5 years.<br />
The <strong>SOL</strong> Life well-being at work programme engages<br />
in effective cooperation with occupational health services<br />
(Terveystalo), the accident insurance provider (OP) and<br />
Type of employment 31 December 2016<br />
(<strong>SOL</strong> Henkilöstöpalvelut is excluded from these figures.)<br />
NUMBER OF PERSONNEL FINLAND FOREIGN SUBSIDIARIES <strong>SOL</strong> GROUP TOTAL<br />
Permanent employment relationships 6913 2783 9696<br />
Fixed-term employment relationships 489 819 1308<br />
Full-time employment relationships 3997 1399 5396<br />
Main employment relationships 7110 1969 9079<br />
Duration of<br />
employment relationships<br />
Personnel age structure<br />
6% 2% 5% 6%<br />
Less than 1 year<br />
14%<br />
29%<br />
1–2 years<br />
15%<br />
3–5 years<br />
6–10 years<br />
15%<br />
20%<br />
11–20 years<br />
29%<br />
More than 20 years<br />
23%<br />
18%<br />
17%<br />
Under 20 years<br />
20–24 years<br />
25–29 years<br />
30–39 years<br />
40–49 years<br />
50–60 years<br />
More than 60 years<br />
40 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
pension company (Ilmarinen). The <strong>SOL</strong> Continuous caring<br />
model was developed to support the supervisors. The Sirius<br />
programme helps supervisors with the early identification of<br />
disability risks.<br />
Employment relationships on a trial period basis that are<br />
terminated by the employer are monitored by supervisors<br />
and at the district level via scorecards every month.<br />
The length of the working day was 7.5 hours for <strong>SOL</strong>’s<br />
salaried employees in 2016. The length of the working day<br />
among <strong>SOL</strong> employees varies between the companies. The<br />
average length of the working day was 5.2 hours for the<br />
employees of <strong>SOL</strong> Palvelut, 4.85 hours for the employees of<br />
<strong>SOL</strong> Henkilöstöpalvelut and 5.84 hours for <strong>SOL</strong> Pesulapalvelut<br />
employees..<br />
7.3 Personnel’s age and<br />
duration of employment<br />
The average age of employees in the Group’s Finnish<br />
companies was 37 years in 2016 (2015: 38 years). The<br />
average age of personnel in <strong>SOL</strong> Pesulapalvelut was 39<br />
years. In <strong>SOL</strong> Palvelut, the average age was 36 years, while<br />
in <strong>SOL</strong>EMO it was 45 years. The average age of personnel<br />
in <strong>SOL</strong> Henkilöstöpalvelut was 30 years, while the corresponding<br />
figure for salaried employees was 36 years. The<br />
age distribution among the Group’s personnel in Finland<br />
is as follows: 20–24 years: 6%; 25–29 years: 16.8%; 30–39<br />
years: 23.6%; 40–49 years: 15%; 50–60 years: 17%; and over<br />
60 years: 4.5%.<br />
There is a significant difference between the duration of<br />
employees’ and salaried employees’ employment relationships.<br />
The average duration of <strong>SOL</strong>’s employment relationships<br />
in Finland has increased slightly over the past few<br />
years, and it now stands at 3.7 years for employees and<br />
8.7 years for salaried employees. Some 25% of all <strong>SOL</strong>’s<br />
salaried employees in Finland have worked for less than<br />
three years and 32% for more than 11 years. Some 68% of<br />
the employees have been employed for less than three<br />
years and 16% for more than six years. The longest employment<br />
relationships – over 40 years – derive from the time<br />
of the previous Group. Some 19% of the employees in the<br />
international operations have worked for less than a year<br />
and 27% of them have been in the company for more than<br />
5 years. The longest continuous employment relationship<br />
has lasted 21 years.<br />
Joy Barometer, <strong>SOL</strong> employees<br />
Joy Barometer, <strong>SOL</strong> salaried employees<br />
5<br />
4<br />
3,9 3,8 4 3,9 3,9<br />
5<br />
4<br />
4,2<br />
4,7<br />
4,2<br />
4,5<br />
4,4<br />
3<br />
3<br />
2<br />
2<br />
1<br />
1<br />
0<br />
The work and I The customer<br />
and I<br />
The supervisor<br />
and I<br />
Safety and I<br />
<strong>SOL</strong> as a<br />
whole<br />
0<br />
The work and I The customer<br />
and I<br />
The supervisor<br />
and I<br />
Safety and I<br />
<strong>SOL</strong> as a<br />
whole<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
41
<strong>SOL</strong> Life – a model for continuous caring<br />
Health issue<br />
The supervisor makes<br />
an appointment for<br />
the employee at the<br />
occupational health-care<br />
centre for 1) a work<br />
ability assessment and<br />
2) a discussion between<br />
the supervisor, the employee<br />
and a physician<br />
The employee’s performance has weakened<br />
or the limit values for sickness absences have<br />
been exceeded<br />
THE SUPERVISOR HOLDS A DISCUSSION IN ACCOR-<br />
DANCE WITH THE MODEL FOR CONTINUOUS CARING<br />
A problem in the<br />
work community<br />
The supervisor discusses the situation<br />
individually with each member of the<br />
workplace community<br />
The regional supervisor <strong>report</strong>s<br />
to the regional manager about<br />
the discussion.<br />
A personal-life problem<br />
Temporarily shorter<br />
working hours, unpaid leave,<br />
annual leave rescheduled<br />
at an earlier date, flexible<br />
working hours<br />
The occupational<br />
health-care centre<br />
provides the employee<br />
and the employer<br />
with an assessment<br />
of the situation and<br />
initiates any necessary<br />
measures<br />
Risk of disability<br />
pension<br />
The occupational<br />
health-care centre<br />
guides the employee<br />
to apply for professional<br />
rehabilitation<br />
provided by Ilmarinen<br />
or medical rehabilitation<br />
provided by Kela<br />
The supervisor implements measures<br />
to improve workplace relations and the<br />
atmosphere at the workplace<br />
Treatment<br />
If necessary, the supervisor<br />
arranges for less stressful or<br />
alternative assignments and/<br />
or flexible working hours either<br />
temporarily or permanently<br />
Recommendations<br />
to revise the job<br />
description or adjust<br />
the working hours<br />
EMPLOYEE<br />
CAPABLE<br />
OF WORK<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
Occupational accident frequency<br />
Figure 19. Accident rate per million working hours, 2012–2016<br />
On the job<br />
At least 3 days<br />
Less than 3 days<br />
On the commute<br />
0<br />
2012<br />
2013<br />
2014<br />
2015<br />
2016<br />
42 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
7.4 Changes in employee<br />
distribution by gender<br />
Women accounted for 63% of the Group’s total personnel.<br />
In Finland, the percentage of women employees was 69%<br />
(<strong>SOL</strong> Henkilöstöpalvelut is excluded from these figures).<br />
The proportion of women in international operations is<br />
66%. Six out of the nine members of <strong>SOL</strong>’s Management<br />
Team are female. Two out of the three members of the<br />
Board of Directors of <strong>SOL</strong>EMO Oy are women. At the end<br />
of 2016, women represented 69% of the management in<br />
the Group’s Finnish companies.<br />
7.5 Investing in the<br />
personnel’s work ability<br />
In 2016, <strong>SOL</strong> spent some EUR 264 per employee on the<br />
prevention and treatment of illnesses in Finland. <strong>SOL</strong><br />
monitors sickness absences based on the working hours<br />
performed, so-called 100%. In 2016, the morbidity rate in<br />
Finland was 4.11%, which represents an increase of 0.05%<br />
from the previous year. The most important causes of sickness<br />
absences include musculoskeletal diseases, infections<br />
and accidents.<br />
The <strong>SOL</strong> Life Early Caring Model helps supervisors to<br />
intervene with work ability problems in their early stages.<br />
The most important aims include preventing sickness absences,<br />
reducing the amount of accidents and minimising<br />
disability pensions. In 2016, <strong>SOL</strong> Palvelut Oy participated<br />
in a best practices competition related to well-being at<br />
work, organised by the European Agency for Safety &<br />
Health at Work.<br />
The rate of morbidity due to occupational accidents in<br />
Finland was 0.23%. There were 547 accidents at work, and<br />
103 accidents occurred while commuting. The accidents<br />
at work resulted in 3,127 days of sick leave, equivalent to<br />
some six sick days per accident. Accidents during commuting<br />
caused 979 days of sick leave absence, equivalent<br />
to 9.5 sick days per accident. An electronic safety tool was<br />
deployed in autumn 2016 to make it easy for all employees<br />
to quickly <strong>report</strong> safety observations and near misses.<br />
When the observations have been forwarded for processing<br />
and any deficiencies have been rectified, the employee<br />
who submitted the <strong>report</strong> will be notified by e-mail.<br />
Supervisors conduct continuous safety risk evaluations<br />
at worksites and customer premises, and implement the<br />
necessary actions according to plan. The occupational<br />
safety officer is often also involved in these activities. The<br />
Occupational Safety and Health Committee operates nationwide<br />
and convenes five times a year. Each <strong>SOL</strong> employee<br />
is responsible for safety, and all of <strong>SOL</strong>’s activities are<br />
based on preventive measures.<br />
A separate on-site risk list and related occupational<br />
health and safety instructions are made on the basis of the<br />
risk evaluations. The employees are specifically oriented<br />
on the topic of the risk list and its instructions and the<br />
orientation must be signed for.<br />
In the event of an accident, our instructions are to also<br />
immediately inform the Occupational Health and Safety<br />
Manager, the relevant Business Director and the Managing<br />
Director directly. The event must be explained and<br />
Electronic occupational safety tool:<br />
0 20 40 60 80 100 120 140 160 180 200 220<br />
Risk assessments: 181<br />
Safety observations: 215<br />
Classification of safety observations:<br />
0 5 10 15 20 25 30 35 40 45<br />
Personal protective equipment, clothing: 5<br />
Chemicals, air quality: 5<br />
Machines, equipment, platforms: 17<br />
Passages, exits: 39<br />
Lowering oneself: 3<br />
Slipping, falling: 44<br />
Noise, lighting, temperature: 2<br />
Lifting: 5<br />
Bumping one’s head: 12<br />
Risk taking: 4<br />
Sharp objects: 27<br />
Threat of violence: 6<br />
Getting squeezed between something: 5<br />
Other: 20<br />
Summary of electronically<br />
<strong>report</strong>ed safety observations.<br />
The categories with the<br />
most observations match the<br />
categories with the highest<br />
accident frequencies. This<br />
suggests a direct link between<br />
paying attention to these<br />
factors and achieving positive<br />
development in reducing the<br />
accident frequency.<br />
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43
A total of 250<br />
apprenticeships<br />
leading to a<br />
qualification and<br />
12,000 training<br />
participants<br />
Special expertise and<br />
specialisation studies<br />
Site and task-specific training,<br />
multi-experts<br />
Service expertise<br />
and customer service<br />
Rewarding, personnel benefits, career plan, well-being at work<br />
the following procedures to prevent the accident from<br />
reoccurring must be described.<br />
Each accident is investigated and documented to find<br />
out the core reason. The accident is discussed on-site and<br />
the corrective measures are implemented. After this, the<br />
next district meeting of the service management area will<br />
discuss and state for general information all the completed<br />
corrective measures. Excerpts from the minutes will be<br />
sent to the Occupational Health and Safety Manager.<br />
The Occupational Health and Safety Manager will<br />
monitor the development of the accident statistics and the<br />
accident rate monthly and inform employees of any observations<br />
and issues the personnel should pay attention<br />
to at the workplace with any new necessary instructions or<br />
procedures.<br />
The sickness and accident statistics will be regularly<br />
presented in management reviews.<br />
7.6 Personnel training<br />
ensures competence<br />
The long-term and systematic development of the personnel’s<br />
competence is critical to <strong>SOL</strong>. An estimated 25% of<br />
the personnel employed by our Finnish business lines hold<br />
a vocational qualification or a further or specialist vocational<br />
qualification. The Group has six full-time instructors<br />
with qualifications in teaching: five in <strong>SOL</strong> Palvelut and<br />
one in <strong>SOL</strong> Pesulapalvelut. Other people in the Group<br />
have also been trained to provide training sessions.<br />
The needs and requirements of customers and the<br />
needs of the company and the personnel are taken into<br />
account in the planning of the training sessions, and the<br />
formulated plans are turned into a tangible form as an<br />
updated training programme for each year. Supervisors<br />
prepare a competence plan for their staff based on the<br />
programme and update the plan as necessary.<br />
In 2016, a total of 11,000 people participated in the<br />
training sessions. The number of training days amounted<br />
to an average of two days per employee in Finland. Most<br />
of the training sessions are conducted internally, but they<br />
also often involve outside experts.<br />
The training sessions are divided into targeted training,<br />
which maintains or deepens knowledge, and long-term<br />
degree-oriented education, which is implemented as module<br />
and multiform/online training. The aim of the training<br />
is to pave the way for an opportunity to take a practical<br />
examination leading to a qualification, and to identify and<br />
recognise the competence acquired through work as well<br />
as the training provided by <strong>SOL</strong> in the preparation of a<br />
personalisation plan.<br />
Our diverse personnel challenge us to continuously<br />
develop our training programmes, which is why we are involved<br />
in a number of projects such as the SAFHY project<br />
that produces digital learning materials, including video<br />
clips and tests, for use by educational institutes and businesses<br />
in Estonia and Finland. The materials are produced<br />
in Finnish, Estonian, Russian and English. The materials<br />
44 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
include texts, video clips, photos, tests and a professional<br />
glossary.<br />
(The SAFHY project is funded by the ERDF Interreg<br />
Central Baltic programme and coordinated by the Central<br />
Uusimaa Training Consortium Keuda)<br />
In addition to classroom training, we invest in the development<br />
of online training. Our goal is to further invest in<br />
orientation training and the implementation of procedures<br />
and operating methods in line with the concepts we have<br />
developed. We are also continuing our work in site-specific<br />
initial and development training and increasing the<br />
target auditing carried out by instructors as well as the<br />
implementation of the LEAN operating model. In training,<br />
we focus on coaching tutors, service instructors and<br />
well-being at work mentors as well as the development<br />
of online training and diverse coaching, including not<br />
only online and classroom training but also webinars and<br />
coaching.<br />
Our goal is to reduce the number of contact training<br />
days and to increasingly utilise the Internet as a learning<br />
tool.<br />
<strong>SOL</strong> Training Steps is a model of how an employee can<br />
exploit our in-house training to improve his/her skills and<br />
to broaden his/her tasks. Each step includes a number<br />
of training sessions. These are based on <strong>SOL</strong>’s in-house<br />
training, but they can also include specialised degrees or<br />
special skills training arranged by other organisations.<br />
In 2016, some 210 <strong>SOL</strong> employees participated in apprenticeship<br />
training in Finland, taking various degrees,<br />
including:<br />
• Vocational Qualification in Textiles Care<br />
• Vocational qualification in property maintenance services<br />
• Further Vocational Qualification in Property Services<br />
and Specialist Qualification for Property Services<br />
• Site facilities operative, further vocational qualification<br />
• Supervisor of cleaning work, specialist vocational qualification<br />
• Cleaning technician, specialist vocational qualification<br />
• Specialist Vocational Qualification in Management<br />
• Security guard, further vocational qualification<br />
• Specialist Qualification for Security Officers<br />
• Practical examiner qualification<br />
• Specialist vocational qualification in business management<br />
• Janitor, specialist vocational qualification<br />
• Immediate supervisor, further vocational qualification<br />
Last year, we focused particularly on the further vocational<br />
qualification of security guards, with 22 service<br />
managers and service directors completing the degree.<br />
<strong>SOL</strong> Palvelut Oy was given the Apprenticeship Employer<br />
of 2011 award by the Helsinki Apprenticeship Office<br />
(the award applies to the whole of Finland). In 2013, the<br />
Lapland Apprenticeship Centre recognised <strong>SOL</strong> with<br />
multiple awards including apprentice of the year, apprenticeship<br />
company of the year, on-the-job trainer of<br />
the year and apprenticeship trainer of the year based on<br />
the company’s active and positive efforts in the field of<br />
apprenticeship training.<br />
The Specialist<br />
Qualification for<br />
Security Officers<br />
was completed by<br />
22 <strong>SOL</strong> employees<br />
There are eight experts at <strong>SOL</strong> who have completed<br />
the practical examiner training. They have the skills to<br />
evaluate employees’ previous skills in relation to their<br />
duties and official degree requirements, and to assess<br />
the completed degrees. The objective is the promotion<br />
of lifelong learning, and the personnel training at <strong>SOL</strong> is<br />
integrated to correspond to the basics of qualifications<br />
and, therefore, promotes the completion of practical<br />
examinations and cooperation with apprenticeship offices<br />
and institutes.<br />
Annual theme days are organised, for example, for tutors,<br />
service instructors, coordinators of training, environmental<br />
affairs and recruitment, service supervisors, sales<br />
personnel, full-service laundry personnel and customer<br />
service personnel.<br />
We cooperate with significant educational institutes<br />
across Finland. Our cooperation with Keuda can be traced<br />
back more than 15 years and the partnership has developed<br />
through the years. In particular, vocational qualifications<br />
and further vocational qualifications in property<br />
services have been completed as both apprenticeships<br />
and self-motivated training.<br />
We have worked together with Amiedu particularly in<br />
the areas of targeted training in property services and the<br />
specialist qualification for property services, with eight<br />
people completing that programme last year.<br />
The level of training of the service operatives working<br />
for each customer is monitored by the Training Index, and<br />
employees are guided to the necessary training courses<br />
based on the index.<br />
Orientation<br />
The Finnish-language online orientation of service providers<br />
was revised in late 2016, with the English and Russian<br />
versions to follow in <strong>2017</strong>. We will also produce new<br />
online courses and competence tests/surveys for various<br />
operating environments and customer service operations<br />
with the aim of developing the skills of our personnel and<br />
responding to the competence needs of our customers.<br />
The online orientation training for salaried employees<br />
was revised in 2016 on the <strong>SOL</strong> Ope learning platform.<br />
New salaried employees complete an online course<br />
before attending <strong>SOL</strong>’s classroom orientation workshops<br />
focused on <strong>SOL</strong>’s operating methods and processes,<br />
communication, competence development, orientation,<br />
personnel management, financial management, customer<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
45
elationship management and dimensioning calculation.<br />
New online courses for personnel will also be added to<br />
the <strong>SOL</strong> Ope learning platform in <strong>2017</strong>. This will allow<br />
employees to study at a time that suits them and review<br />
topics as necessary.<br />
7.7 Personnel unionisation<br />
In Finland, the provisions of the current collective bargaining<br />
agreement between the Finnish Real Estate Employers<br />
and the Service Union United PAM for employees in<br />
the property maintenance sector applies to <strong>SOL</strong>’s salaried<br />
employees in the cleaning, property and facility maintenance<br />
services. The collective bargaining agreement for<br />
employees in the property maintenance sector primarily<br />
applies to <strong>SOL</strong>’s security service employees. The collective<br />
bargaining agreement for the textile care industry applies<br />
to the laundry personnel, and the collective bargaining<br />
agreement for the chemical sector to the laundries’ salaried<br />
employees. The temporary staff and service experts<br />
of personnel services apply the provisions of the collective<br />
bargaining agreement of each respective corporate customer,<br />
and <strong>SOL</strong> Henkilöstöpalvelut Oy’s salaried employees<br />
apply the collective bargaining agreement for the personnel<br />
services sector.<br />
Two meetings that address financial issues, personnel<br />
plans and <strong>report</strong>s, and the following year’s action plan and<br />
priorities, are held every year in Finland, between the chief<br />
shop stewards and the management.<br />
The personnel have full freedom to unionise in all the<br />
operating countries. Since the countries of the foreign<br />
subsidiaries do not have collective bargaining processes<br />
similar to Finland, local labour legislation and <strong>SOL</strong>’s internal<br />
practices are applied to their work.<br />
<strong>SOL</strong> Palvelut Oy is a member of the employer union<br />
Real Estate Employers, <strong>SOL</strong> Pesulapalvelut is a member of<br />
the Yleinen Teollisuusliitto ry, and <strong>SOL</strong> Henkilöstöpalvelut<br />
is a member of the Palvelualojen työnantajat PALTA ry.<br />
7.8 <strong>SOL</strong> is a multicultural<br />
work community<br />
<strong>SOL</strong> is a multicultural work community that offers equal<br />
opportunities to all employees. More than 30% of <strong>SOL</strong><br />
services’ employees were not Finnish citizens.<br />
We promote the equality of all employees and prevent<br />
discrimination in all forms. (E.g., discrimination due to age,<br />
origin, nationality, language, religion, conviction, opinions,<br />
political activities, trade union activities, family relations,<br />
health, handicaps, sexual orientation or other reason<br />
arising from a person is strictly prohibited.)<br />
<strong>SOL</strong> established its multicultural work group in 2007.<br />
Its objective is to promote the integration of employees<br />
from different environments into the operating culture at<br />
<strong>SOL</strong> and to improve the understanding of diversity. The<br />
multicultural work group has, for example, prepared an<br />
annual global calendar which includes the holidays of<br />
different religions. In cooperation with PAM (Service Union<br />
United), the work group has produced a video for new<br />
employees with the intent of introducing the employee to<br />
many important issues.<br />
– Of course, the people in the video are <strong>SOL</strong> employees<br />
as well. A video is a modern and more lively channel<br />
for communicating important issues to employees, and an<br />
image also relates an important image of the employer,<br />
colleagues, the work community and the rules of working<br />
life to the viewer.<br />
<strong>SOL</strong> is taking part in the Osaavat naiset project coordinated<br />
by MONIKA - Multicultural Women’s Association,<br />
supporting the employment of immigrant women in many<br />
different ways. <strong>SOL</strong> is an active partner in the project and<br />
has already provided many women with job opportunities.<br />
Women with an immigrant background are trained to<br />
seek jobs, taught IT skills, and guided towards language<br />
studies and other training. The HR representative of <strong>SOL</strong><br />
has visited the Monika women several times to talk about<br />
<strong>SOL</strong> as an employer and about the jobs <strong>SOL</strong> offers.<br />
The Osaavat naiset project is funded by the Uusimaa<br />
ELY Centre. The work group <strong>report</strong>s directly to the Management<br />
Team.<br />
Providing comprehensive orientation training to all<br />
employees is a matter of honour for us.<br />
46 <strong>Responsibility</strong> <strong>2017</strong> | www.sol.fi
We are all equal<br />
<strong>SOL</strong> is widely known as a multicultural work community.<br />
– Orientation to <strong>SOL</strong>’s work tasks and taking root in<br />
the Finnish working culture are emphasised in the work of<br />
the multicultural development group, says Sari Crnobreg,<br />
Chair of the multicultural work group.<br />
<strong>SOL</strong> has employees from over 60 countries and all continents.<br />
Crnobreg emphasises that despite the differences,<br />
everyone at <strong>SOL</strong> is equal.<br />
– We wish to give everyone equal chances for a career,<br />
learning at work, and well-being at work. Harmonising<br />
working methods and making service easy is important.<br />
For instance, we have translated training materials into<br />
many different languages.<br />
– One of the key challenges is mapping and utilising<br />
the skills of multicultural employees more efficiently.<br />
According to Crnobreg, good interaction is created<br />
by ensuring that the employer has a clear picture of the<br />
difference of the peoples’ backgrounds. Despite training,<br />
it is important to preserve the person’s idendity.<br />
– Families have also been integrated with the help of<br />
<strong>SOL</strong>. An intact family has a tremendous, positive effect on<br />
the life of an employee, which also benefits their working<br />
life.<br />
Crnobreg finds it delightful that more and more couples<br />
are working at <strong>SOL</strong> these days, enabling a new level of<br />
planning their future in their new home country.<br />
– One must not forget one’s roots and identity – quite<br />
the opposite. Multiculturalism is a diverse gift, and one<br />
ought to be comfortable with one’s identity.<br />
In 2016, <strong>SOL</strong> handed out its first award for an act<br />
promoting multiculturalism. The award was given to the<br />
Multiculturalism Working Group led by Sari Crnobreg in<br />
recognition of the group’s accomplishments in promoting<br />
equality.<br />
Happy together<br />
The events organised by the multicultural group have<br />
been popular.<br />
– They bring joy to everyday life, and <strong>SOL</strong> employees<br />
from different cultures can get to know each other.<br />
The multicultural development group also maintains a<br />
world calendar containing the holidays of different countries.<br />
– This is an important work-planning tool for the supervisors.<br />
We share holidays from all over the world and each<br />
of us can learn new, interesting and inspiring things from<br />
different cultures. By getting to know different countries<br />
and their customs, we are also more truly present as colleagues.<br />
Join in and make a difference<br />
According to Sari Crnobreg, the development group has a<br />
large number of new goals, and they are in constant need<br />
of more eager participants as the members of the development<br />
group fluctuate among work tasks and potential<br />
changes.<br />
– For instance, we would really like to have participants<br />
from South Asia. It is important to have a comprehensive<br />
representation from different continents.<br />
Crnobreg reminds us that the multicultural work group<br />
encourages all <strong>SOL</strong> employees to take initiative.<br />
– There are never too many ideas, and there are no<br />
limits to what we can achieve through cooperation.<br />
Team Leader of multicultural development<br />
Sari Crnobreg (middle) and service providers<br />
Makhan Khatrin (left) and Shahana Aktherin.<br />
www.sol.fi | <strong>Responsibility</strong> <strong>2017</strong><br />
47