Expertise and culture
Business strategy, business model and core values
“Expertise and culture” is an area that is closely linked to the Group’s strategy and is one of the important topics in the sustainability work. One of Hafslund’s five strategic focus areas, “The best people are the key”, highlights the importance of expertise and culture in achieving Hafslund’s metrics and targets and in being a responsible employer that takes care of and develops its employees. Hafslund’s ambition is to:
- Attract the best people
- Develop and retain employees
Based on this, Hafslund has identified several areas in which the Group is specifically working on preparing and initiating measures in line with the overarching strategy. These are as follows:
- Recruitment and employer branding
- Skills development, learning and employee journey
- Leadership development
- Diversity
Each of these areas is considered part of Hafslund’s holistic approach to developing an open culture of learning with support processes and systems that facilitate targeted employee development, and where different views and ideas enhance collaboration and innovation.
This closely aligns with Hafslund’s values (“Open”, “Responsible” and “Innovative”) that are described in the chapter “Vision and values”.
Impact, risks and opportunities
At the end of 2023, the Hafslund Group had 812 employees located throughout large parts of Southern Norway. A demographic description of Hafslund’s employees can be found in the sustainability accounts. Hafslund is committed to being a responsible employer that takes care of and develops its employees, and has a positive impact on them. Among other things, this is followed up through regular “Temperature readings” and performance appraisal interviews, as well as leadership and organisational development programmes.
The expertise of Hafslund’s employees is of crucial importance to all value creation, further development and growth in all parts of the Group. It is therefore critical for Hafslund to both keep hold of existing employees and recruit new employees. Based on Hafslund’s strategic objectives within “Expertise and culture”, Hafslund has identified the following risks and opportunities:
| Risks | Opportunities | ||
|---|---|---|---|
| Greater competition for critical expertise in the labour market. | More emphasis on skills and potential in recruitment processes will increase the pool of candidates, produce greater diversity and minimise the risk of there being a lack of expertise and capacity. | ||
| Gen Z and Millennials are more value-driven than previous generations, and one-third of them will resign if the employer’s values do not align with their own. | Open dialogue and enabling employee influence through temperature readings and manager/employee dialogue. | ||
| Increased employee turnover can lead to a lack of critical expertise and greater use of resources for recruitment and onboarding. | Increased value creation by highlighting and enabling diversity. | ||
| Digitalisation and development are taking place at a rapid pace, and the organisation will not always be able to keep up. | Further development of Hafslund as a visibly attractive workplace for employees across specialist fields, where there is scope for diversity. | ||
| Lack of systems and processes that address the increased need for skills development. | Application of innovative and flexible digital solutions that facilitate current and future needs for expertise. | ||
| Technology is a catalyst for organisational development. |
Policy/Guidelines
Hafslund has a Group sustainability policy which is founded on principles relating to Hafslund’s important topic of sustainability.
In addition to the Group’s strategy and focus on employer attractiveness, employee development and diversity, consideration of gender equality and non-discrimination is included in the Group’s policy for HR and organisational development, in the core values and in the Group’s ethical guidelines. Hafslund is subject to the Activity and Reporting Obligation (ARP). The report of the status of the work on gender equality and diversity and activities carried out during the year is published on Hafslund’s website.
At the core of Hafslund’s policy for HR and organisational development is that employee expertise is crucial for all value creation, further development and growth in all parts of the Group.
The ethical guidelines shall ensure that employees at the Hafslund Group perform their work in an ethically justifiable manner and in line with the standards set by Hafslund through its governing documents. Hafslund aims to be an attractive workplace. The ethical guidelines for employees must support this goal and be of assistance in situations that the employee may encounter on a daily basis.
The HR and organisational development policy will be updated in 2024. The update will see the inclusion of a diversity policy as part of the ongoing work on diversity within the Group. The ethical guidelines for employees will also be updated, and will include clearer ethics training plans for employees.
Principles in the Group sustainability policy that are directly related to the important sustainability topic of "Expertise and culture":
- Hafslund has zero tolerance for discrimination or harassment.
- All employees at Hafslund must be given the opportunity for regular personal and skills development through learning from their own work experiences, learning through interaction with others, and the opportunity to take training courses and professional refresher courses.
- The Group must cultivate differences and provide equal opportunities to everyone. Efforts shall be made to increase the diversity competence of managers, and all employees shall experience equal treatment with regard to pay, tasks and responsibilities, irrespective of location, gender, sexual orientation, functional level and ethnicity.
Actions
Work on “Expertise and culture” is ongoing and focus areas are changing. The development of Hafslund’s employees and Hafslund as an employer is always heavily emphasised. Below are several of the measures that embrace the strategic focus area of “The best people are the key”
Tailored leadership development
Hafslund has established level-based leadership development programmes which place an emphasis on core competencies for good leadership that look after and develop employees. This also includes a tailored leadership team and team development, as well as the opportunity for individual coaching for managers.
Flexible framework for career paths
Hafslund’s ambition is to establish clear career paths in every department during 2024 and 2025 in order to facilitate targeted development and mobility across the Group. This work was initiated in 2023.
Implementation of a new HR system
Hafslund will procure and implement a new HR system during 2024 and 2025 to simplify the everyday lives of all Hafslund employees, provide easy access to resources and development, facilitate good employee follow-up, and obtain a better overview of the talent we have at Hafslund.
Using temperature reading for feedback and adjustment
Hafslund has adopted a temperature reading system which enables active dialogue between managers and employees about what creates a good working environment.
Diversity measurement via Diversity Index
Hafslund has used Diversity Index to measure diversity across the Group in order to gain a better understanding and overview of Hafslund’s visible and invisible diversity. The insight gained from this will be used as the basis for further initiatives, with the goal of having a culture where diversity thrives and results in increased value creation.
Change in recruitment strategies
Where possible, there will be more emphasis on attitudes and potential in the recruitment process, and less emphasis on formal qualifications, in order to reach larger groups and discover new talent.
Active work on Employer Branding
Hafslund has established Employer Branding as a function that works closely with recruitment in HR and organisational development processes to better highlight Hafslund as an attractive workplace.
Metrics and targets
In order to ensure that Hafslund as a business acts in accordance with its core values and adheres to the principles that it has established in its governing documents, in addition to realising the strategic ambitions, the following metrics and targets were defined:
| Metrics and targets | Result 2023 | Result 2022 | Comments |
|---|---|---|---|
| Employee satisfaction above eight (out of ten) | 8.0 | 8.3 | |
| All managers will participate in the leadership development programme | 100 per cent | - | New |
| Increase diversity maturity score (1-5) to three by 2027 | 2.32 | - | New |
| Absence due to illness < 3.5 | 3.2 per cent | 3.8 per cent |
Indicator table
| 2023 | 2022 | Comment | |||
|---|---|---|---|---|---|
| Total number of employees | Number | 831 | 686 | Permanent and temporary | |
| Total number of men | Number | 621 | 530 | ||
| Total number of women | Number | 210 | 156 | ||
| Number of permanent employees, men | Number | 610 | - | New indicator | |
| Number of permanent employees, women | Number | 202 | - | New indicator | |
| Number of temporary employees, men | Number | 4 | - | New indicator | |
| Number of temporary employees, women | Number | 8 | - | New indicator | |
| Number of employees without a fixed number of hours, men | Number | 3 | - | New indicator | |
| Number of employees without a fixed number of hours, women | Number | 4 | - | New indicator | |
| Number of full-time employees, men | Number | 600 | - | New indicator | |
| Number of full-time employees, women | Number | 194 | - | New indicator | |
| Number of part-time employees, men | Number | 10 | 12 | ||
| Number of part-time employees, women | Number | 8 | 8 | ||
| Number of employees, Oslo | Number | 474 | - | New indicator | |
| Number of employees, Aurland | Number | 43 | - | New indicator | |
| Number of employees, Hallingdal and Valdres | Number | 93 | - | New indicator | |
| Number of employees, Innlandet | Number | 174 | - | New indicator | |
| Number of employees, Glomma | Number | 44 | - | New indicator | |
| Number of employees, Sverige | Number | 3 | - | New indicator | |
| Number of non-employees (hired) | Number | 82 | - | New indicator |
Temporary employees: Hafslund follows the objective in Norwegian working life that the use of temporary employment should be limited. Most of our temporary employees are apprentices and we aim for the majority to get permanent employment after completing their vocational certificate.
Part-time: Part-time positions in Hafslund are primarily linked to employees who do not have the opportunity to work full-time due to personal needs that make reduced working hours appropriate.
| Diversity and equal opportunities - Cultivating differences and giving equal opportunities to everyone | Unit | 2023 | 2022 | Comment |
|---|---|---|---|---|
| Female employees in the Group | Number | 210 | 156 | |
| Female employees in the Group | Per cent | 25 | 22 | |
| Women in Group management | Number | 4 | 4 | |
| Women in Group management | Per cent | 57 | 50 | |
| Women in executive positions | Number | 47 | - | New indicator |
| Women in executive positions | Per cent | 40 | 32 | |
| Proportion of employees under 30 years of age | Per cent | 12 | - | New indicator |
| Proportion of employees between 30 and 50 years of age | Per cent | 50 | - | New indicator |
| Proportion of employees over 50 years of age | Per cent | 38 | - | New indicator |
| Diversity Index result* | Index | 2.32 | - | New indicator. Aim for 3.0 |
| Gender pay gap rate | Per cent | 110 | - | New indicator. Women's average remuneration is 110 per cent of men's average remuneration |
| Remuneration rate** | Rate | 4.8 | - | New indicator |
*The Diversity Index is an objective measurement of diversity that takes into account diversity and the extent to which diversity has an effect on value creation. This is presented through a maturity scale from 1-5. It is not a goal in itself to get the highest possible score, this can be disruptive to value creation and performance. The measurement is used to map diversity in Hafslund and how diversity can help bring out more potential
**Total remuneration of the highest paid person / median total remuneration for all other employees
| Unit | 2023 | 2022 | Comment | |
|---|---|---|---|---|
| New hires | Number | 165 | 92 | |
| Number of employees who have left the company during the reporting period and turnover (including retirement)* | Number | 39 | - | New indicator |
| Number of employees who have left the company during the reporting period and turnover (including retirement)* | Per cent | 4.7% | - | New indicator |
| Number of employees who have left the company during the reporting period and turnover (without retirement) | Number | 28 | - | New indicator |
| Number of employees who have left the company during the reporting period and turnover (without retirement) | Per cent | 3.4% | - | New indicator |
| Proportion of managers who have completed leadership development programmes | Per cent | 96% | - | 100 per cent in Hafslund AS, Hydropower and Growth. 85 per cent in Celsio. In 2022, Hafslund AS, Hydropower and Growth 100 per cent and 93 per cent for Celsio. |
| Use of whistleblowing channel | Number/year | 0 | 0 | |
| Employee satisfaction | Index (0-10) | 8.0 | 8.3 | |
| Sick leave | Per cent | 3.2% | 3.8% | |
| Average number of hours of training per employee, men | Number | 49 | - | New indicator. Applies only to employees of Hafslund Oslo Celsio |
| Average number of hours of training per employee, women | Number | 49 | - | New indicator. Applies only to employees of Hafslund Oslo Celsio |
*In the 2022 reporting, this indicator was included, but split between Hafslund Oslo Celsio (4.3%) and the rest of the Group (6.5%)
