Our way of working
We want to empower our people to actively participate and collaborate, to take both ownership of their work and responsibility for everyone’s safety. The management team fully supports the hybrid way of working, including flexible working time and arrangements when possible. The company follows local legislation related to flexible working hours, overtime, part-time working options, and paid parental and family leave. The modern working environment with digital tools helps teams to flexibly organize their work and supports the individual well-being of employees. Teams have discussed and agreed on the best working practices.
To support the modern and flexible way of working and employee well-being, we promote collaboration and open dialog throughout the entire organization.
Creating a more flexible working culture
Our people development philosophy supports our employees’ development with an internal job rotation, on-the-job learning, and various development solutions following the 70–20–10 principle: 70% of the development through learning on the job, 20% through learning from others, and 10% through training.
In 2023 the company’s e-learning management system was renewed, and a group of employees was trained to create online courses based on business needs.
As digital has become the primary way of working, the need for information security skills has grown. We have continued developing information security capabilities and employee awareness.
Pay for performance
Nokian Tyres' Total Rewards Philosophy and Guideline aims to clarify the principles behind total rewards and support managers in making fair and consistent pay decisions. By fostering transparency, employees can better understand the company’s rewards system, which helps to promote motivation and engagement. In the coming year, the focus will be on reward training to enhance understanding across the organization, further contributing to equitable and fair working conditions for the whole organization.
Nokian Tyres utilizes several incentive plans to measure both shortand long-term performance. Two share plans align the long-term goals of shareholders with those of key personnel, enhancing company value and committing key personnel to the company’s
strategic objectives.
The current performance criteria in the company’s main long-term incentive plan, the Nokian Tyres Performance Share Plan, are cumulative EBITDA, increase in passenger car tire production volume, and reduction of Scope 1 and 2 carbon dioxide equivalent (CO2e)
emissions. The CO2e sustainability target carries 10 percent weight of the total of 100 percent target setting within long-term incentives.
Nokian Tyres’ Restricted Share Plan serves as a complementary longterm incentive tool, used for the retention of Nokian Tyres President and CEO, the Management Team, and other selected key employees. Both plans were resumed in 2024, with the Performance Share Plan adjusted to a two-year performance period plus a one-year retention phase.
Short-term incentives, available to all employees, are designed to drive strategy and reward achievement at various levels, such as Group, business unit, team, or individual.
People reviews
In 2023, we developed our performance management process called People Review to strengthen the feedback culture and foster continuous dialog. This change enabled more flexible and agile performance management practices. Instead of one annual goal setting and performance evaluation discussion, regular 1-on-1’s are now recommended to take place throughout the year. Those discussions can also be held with the team, not only with individuals.
In 2024, a total of 88 percent of our personnel took part in a People Review. Internal job rotation, on-the-job learning, and different training solutions continued being essential part of personnel development.