Impact reporting 2015

Labor practices management approach

Yara's dynamic business environment triggered the review of the People Strategy and the organizational structure of HR in 2015.

The HR organization has been transformed from a functional to a geographical structure supported by three global centers of expertise. The reorganization will facilitate the implementation of the HR strategy, closer alignment with business priorities and efficient deployment of HR resources according to local needs. 

Yara's People Strategy focuses on the following strategic ambitions: Attracting, retaining and developing the talents Yara needs, making leadership a competitive advantage, driving a high performance culture, being a catalyst for change and delivering operational excellence. 

In the period 2015-2017, the highest priority will be on leadership development and talent management. A strategic workforce planning approach is also under development. 

Human resources: Policy 

In 2015, all Yara employees had the opportunity to take part in the Talent Development and Performance Management processes, most of them using the HR Information System (HRIS) as the main tool. All major people processes are run globally, on all levels of the organization, and are supported by Yara's HRIS. Both managers and employees have access to HRIS through Manager Self Service (MSS) and Employee Self Service (ESS) respectively. 

See also the Training and awareness section below.

Human resources: Goals and Performance 

Yara is committed to promoting equal opportunities and fighting discrimination. A diversified employee base is a key success factor and means abundant opportunities to add value to our company. 

However, the chemical and fertilizer industries are historically male dominated, and the share of women among permanent Yara employees has been around 19% in recent years. The share of women among the key position holders in the company is only 10%. Yara's ambition is to increase the proportion of women in management positions and focus on gender diversity in key human resources processes like recruitment, talent management, employee development and succession planning. In 2015, all business segments in Yara started processes to come up with gender strategies and goals. This work will be finalized in 2016 and will result in action plans both on corporate and business segment levels. 

Yara's geographic diversity is mirrored in the composition of the workforce in central functions in the company where, for instance, 43 nationalities are represented at our headquarters in Oslo and the Technical Research Center in Porsgrunn, Norway.

For a presentation of the company HR performance, please see HR related performance indicators in the GRI Index. 

Human resources: Organizational Responsibility 

The Chief Human Resources Officer has organizational responsibility for labor practices and decent work. 

Training and Awareness: Management approach 

YaraLearning, launched by Yara in 2013, offers a single repository for most global learning programs and provides employees and contractors with opportunities to develop their competencies. The platform is available to all employees and contractors with access to Yara’s internal systems, and it contains a wide range of training material and tools, from over 150 different e-learning courses and videos to more traditional classroom training. 

The curriculum is continually developed based on the needs and priorities of the business, as identified in the Talent Development Planning process, in order to equip Yara employees with the skills and competencies they need to be successful in their jobs. This includes Safety, a key focus area in Yara. 

In addition, there are many local training activities, both mandatory training related to e.g. HESQ and leadership development activities adapted to local or regional needs. 

Training and Awareness: Monitoring and follow-up 

In Yara we believe that employees build and improve their abilities mainly through practice. Good people management and leadership are essential to improving the four areas that are critical to driving business outcomes; performance, engagement, retention and attraction. 

Our goal is to have continuous honest feedback on performance throughout the year. People deserve and have the right to receive feedback regularly, so that they have an opportunity to improve. This should also generate a continuous understanding of their performance level throughout the year. 

To complement and support this, there is the formal performance management cycle within Yara that consists of two formal conversations: 

  •  Performance Management Process (PMP) (December/January), to evaluate performance of the previous year and set goals for the coming year. 
  •  The PMP checkpoint during the Talent Development Mid-Year Review (TDMYR) (June-August), to review and update goals. 

All global processes, like PMP and Talent Development, are supported by HRIS and monitored by collecting reports from the system. These reports, showing process status and completion rates, are followed up by both the line and by Human Resources (HR). 

Occupational Health and Safety: Management approach 

Yara has the ambition to lead and shape our industry by setting the standard for performance. This is reflected in Yara's policy on health, environment and safety. Health and safety issues are matters for management as well as the workforce. Responsibility for these issues stretches from the boardroom to the factory floor. Yara believes every accident is preventable and strives for zero accidents. 

Yara recorded positive developments in the safety performance throughout the year. 

Yara also continued to roll out the Safe by Choice initiative to instill a common safety culture and lead the company to safety excellence. Yara has strict requirements for reporting of incidents, accidents and injuries, and we work continuously to improve safety practices and safety culture by systematically enforcing strict operating procedures and by developing the competence and hazard understanding of the employees and our contractors. 

In 2015, Yara continued its safety culture development in line with the "Safe by Choice" thinking. The aim is to pro-actively create a safety culture in Yara where everyone takes responsibility to be 'Safe by Choice'. This means developing current practices and putting an increased focus on responsibility, so that all take care of both oneself and others. Yara's Safety Principles are aligned accordingly and a set of actions have been defined, focusing on the application of safety tools and methods, with a higher level of quality and consistency through competence development. A major, company-wide extensive safety survey carried out in 2015 found that the workforce is highly engaged on safety issues. The survey results showed clear improvements since the previous benchmark and indicate a positive safety culture, with particularly high scores in the area of managers, supervisor and employee participation. Development of functional and behavioral safety competences that support business and individual key performance indicators are being integrated into Yara's HR processes to ensure sustainable development. 

Yara's ambition is zero injuries and the company continues to set challenging KPI targets for occupational safety. Focus is based on actions that will further develop the safety culture in Yara with the aim to reduce exposure to hazards through safety leadership and greater responsibility for oneself and others. 

Monitoring of Process Safety measures is done systematically. Core developments in 2015 include continued development of technical competence of process operations and process safety tools such as Hazops (Hazard and Operability studies). 

Yara has a well-developed process management system, including detailed technical standards and an extensive audit program. Non-conformities to the technical standards are monitored and followed up in detail by the central management. Important goals in 2016 include further devolvement of process safety indicators and performing extensive process safety audits at selected sites. 

Labor practice grievance mechanisms: Management approach 

The company strives to maintain a good working environment by encouraging open and direct communication between employees and their supervisors. It is Yara’s view that all employees shall be free to voice their problems and views on work-related issues without fear of retribution. The company believes that a full discussion can, in most cases, facilitate the resolution of misunderstandings and preserve good relations between management and employees. 

Employees who have work-related concerns, or feel that they have been treated unfairly, are encouraged to speak with their immediate supervisors. If the employee and supervisor are unable to resolve the issue, the employee is encouraged to go the next higher level of management or to HR. The company will make every effort to settle an employee's problem on a fair and equitable basis. Employees who use the resolution policy in good faith will not experience any retaliation. 

Yara’s Ethics hotline and whistleblower system is also available for any employee who have concerns over mismanagement or other issues.

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