Professionally competent employees now and in the future

Professionally competent employees & using data

Strategic Personnel Plan

We used the Strategic Personnel Plan to map which specific needs we anticipate for the coming years in terms of capacity and competences. This overview is helpful in providing us with a basis for future managing and planning. We have better insight into the precise needs for technical personnel and are better able to prepare accordingly. In the short term, we can see that there is no risk of acute staff shortages, partly because we have taken on permanent staff for large projects (such as the smart meter roll-out) rather than relying on a flexible supply of workers. We are seeing the benefits of this strategy now. Our in-house training school also enables a flexible response to the evolving need for technical personnel. The in-house training school additionally helps in redeploying technical personnel through retraining.

Performance management

We professionalised our performance management in 2019. In terms of data, we started to digitalise our employees' performance. This process allows to see who is ready for a horizontal or vertical move, as well as who is not in a suitable role. We challenge one another and live up to the same standards. Managers discuss employees' performance in an HR review. This review ensures consistency in our appraisal of what is 'good' and where there is 'room for improvement'. We give specific attention to our high-potentials in this regard. This approach allows us to anticipate personnel challenges more effectively and respond appropriately so the critical roles in the organisation always remain properly filled, even when employees leave our company.

Future-oriented personnel and payroll administration

In 2019, we laid the foundation for the further optimisation and structuring of our HR processes. The purpose is to make these processes more personal and accessible for candidates, employees as well as business partners. We will enable digital HR support on every device, any time, anywhere. During 2020, we will press ahead with implementing the new systems. The improved services will become available from 1 January 2021.

Integration of Stedin/DNWG: Stronger together

We are making good progress on planning and preparing for the integration. Working in close consultation with both works councils, we aim to achieve a gradual process of implementation until 2022. The agreements made between both works councils as well as HR departments are already facilitating our efforts to encourage movements of employees between DNWG and Stedin. An example is the start that we have made on opening up mutual vacancies. In this way, we are already maximising integration in the field of human resources, ensuring that integration is achieved with as few staffing consequences as possible.

Stedin and DNWG actively work together on many fronts to share knowledge as well as experiences and to exploit synergy gains. Examples are joint investments in digitalisation, the energy transition, technological innovations and excellent services. We are convinced that this approach helps us to be better prepared for the future together.

Agile organisation

We train our leaders of the future and teach them to cope with an ever-changing environment. As we recognise that the development of our employees is crucial, we want to learn from changes and act quickly as well as effectively in new situations. To this end, we continuously invest in these aspects. We do so through personal development, leadership and the support of our in-house training school.

Personal development

Both employees and their managers are in constant dialogue about performance, behaviour as well as development. Employees are encouraged to be keen learners and to seek out opportunities for personal development. Stedin uses various tools to support talent development, including assessments, 360-degree feedback and Stedin Business coaches from our coaching pool. Development agreements and initiatives are discussed as well as recorded. We use HR analytics to analyse an increasing amount of data in order to examine the effectiveness of the development and training tools that are deployed. Individual programmes are also evaluated, developed further or adapted, such as the training and education provided by our in-house training school as well as the NCOI training institute.

Leadership programmes

In 2018, we started a broad range of leadership programmes, which we continued in 2019. The leadership programmes centre on cohesive leadership. Important elements in these programmes are cooperation throughout the entire organisation, proper dialogue and encouraging a feedback culture. Specific attention is paid to the employees' learning ability in each of the programmes. For Stedin to be an agile organisation, it is important that our employees are able to learn from change and act quickly as well as effectively in new situations. The current activities/programmes are:

• strategy kick-start and kick-forward days. These days allow all our managers to acquire knowledge about the strategic developments and translate them to their own teams;
• 'Toekomstmakers' (Makers of the Future) Traineeship, which is a two-year traineeship programme for talented new employees with the aim of training them to become 'leaders of the future';
• high-potential programme, a 10-month programme to assist talented employees within our organisation in accelerating their personal and professional development;
• Process Improvement (PI) programme. We appoint a new group of PI leaders every two years. During this period, they work on improving processes, while being trained as ‘black belts’ in the Lean method;
• Basic Cohesive Leadership, an eight-month programme for new managers;
• LAB, an eight-month Management Development programme. The programme focuses on individual and collective leadership development to make choices and speed up the energy transition together with others;
• Horizon, a 10-month executive programme. The aim of this programme is to develop our strategic executives for achieving our mission of 'working together to create an environment filled with new energy'.

In-house training school

We trained around 350 pupils as fitters in our in-house training school in 2019. By training people ourselves, we ensure that we still have a substantial influx of new technically trained colleagues, even in these years of a shortage of technical staff. The in-house training school offers senior secondary vocational (MBO) level and other training programmes in our fields of expertise, and also provides the mandatory safety training. The in-house training school recorded approximately 30,000 applications in 2019 for technical training, safety training such as BEI and VIAG, and in-house safety training.

Our in-house training school awarded no fewer than 169 MBO diplomas in 2019. Richard Moti, Rotterdam city councillor, presented the diplomas in person.

Training smart meter fitters

We made a start in 2015 on training people coming from other professions to become smart meter fitters. Since then, the in-house training school has retrained over 380 people, 175 of whom were previously unemployed on a long-term basis. In 2019, 24 smart meter mechanics moved on to operational departments within Stedin.

Special projects within the in-house training school in 2019

The in-house training school is responding to two trends: new forms of learning and changing education. Many projects from 2019 are connected with these trends:

• In the spring, the in-house training school started a pilot project for 16-year-olds. Twenty young technicians have since joined the project. 
• A second training school was built to meet the growing demand for switching training. The training programmes are tailored specifically for switching in the low-voltage network.
• In collaboration with DNWG, an MBO energy transition programme was developed at level 4.
• We also joined several national partners to develop a part-time HBO Energy Technology Associate Degree programme.
• In 2019, the in-house training school started a pilot project to provide continuing education for gas fitters. The aim is to ensure that the technicians' knowledge is continuously updated. At the moment, one training day is scheduled every three years. The objective is now to roll out this form of learning for all Gas & Electric technicians after the completion of the pilot phase.
• In the field of safety, the in-house training school continued to play a role in the further development towards a High Reliability Organisation (HRO) in 2019. This course is standard for every new Stedin employee.

Inclusive society

Contributing to an inclusive society is an element of our One Planet strategy. Stedin Group is committed to working for equal opportunities and long-term employability for all. We want our workforce to reflect today's society, feel welcome and be treated equally, regardless of age, sex, religious beliefs, sexual orientation, background, level of education or disability. Stedin prohibits and does not tolerate discrimination. To this end, Stedin enforces its code of conduct and guidelines, which lay down the standards and values that we have agreed with one another. They affirm the basic principle that we respect and value each other, with the understanding that everyone is equal. Our managers ensure that all employees are familiar with the code of conduct and guidelines, and that they are observed. Stedin has set up a Security & Integrity reporting centre, where everyone employed by Stedin can report actual or suspected instances of non-ethical behaviour. Incidents involving integrity violations (which also cover discrimination) can be reported anonymously to a confidential adviser. Reporting and accountability take place regularly based on anonymity.

The code of conduct and guidelines (including non-discrimination) are also the starting point for HR processes, such as recruitment, selection, promotion, remuneration and training. HR information is generally accessible and can be viewed by Stedin employees on our Intranet. If an employee is uncertain about the application of any policy, they can obtain further information and assistance from an HR professional. Where an employee disagrees with a decision, they can lodge an objection. Objections can also be filed with the Security & Integrity reporting centre.

By providing work placements, taking on employees with an occupational disability and training residence permit holders, people coming from other professions as well as people aged 55 or older, we are creating greater diversity within Stedin Group and implementing our goal of contributing to an inclusive society in practice.

Work placement posts

We helped 122 young people to acquire relevant work experience by means of work placements. In addition, employees regularly give guest lessons on sustainable energy at schools in our coverage area and we are a partner of the JINC initiative in which young people are helped on their way to finding work. Jointly with other organisations, we combat energy poverty; for instance, through our partnership with Energy Bank Rotterdam.

1. * Excl. DNWG

Participation Act and Service Team Operations

Stedin Group aims to employ 100 people with an occupational disability (in accordance with the definition in the Participation Act) by 2020. The Service Team Operations was established in 2019. In this team, young people with an occupational disability are trained as assistant fitters. Many of these youngsters come to us from secondary vocational education. In order to work as an assistant fitter for Stedin, they need to obtain several safety certificates. We adapted the training material to present a practical focus for this group and we gave the work supervisors a role in passing on the knowledge to them. The results are very promising: all the candidates from the first group passed the first exam in one go. At the end of 2019, 17 people with an occupational disability worked for the Service Team Operations. In 2020, we will expand this group to 40 candidates in 2020.

We created jobs for people with an occupational disability elsewhere in our organisation as well, but the number of places created still fell short of our target in 2019 (see table below). However, the launch of the Service Team Operations ensures that this figure is on the rise.

Training residence permit holders

In 2019, a second group of refugees with residence permits started on a work-study programme at Stedin. The group of candidates, all of whom have a technical background, started on a preliminary programme. We strongly focus in the preliminary programme on Dutch language and technical language skills. The group again received help with Dutch from language buddies this time. Stedin colleagues practise weekly with a residence permit holder or discuss the curriculum. In February 2020, the candidates who successfully complete the preliminary programme will progress to the training programme in order to qualify as first maintenance technician for low and medium voltage (level 3) at our in-house training school. The target was to have 10 residence permit holders start on a work-study programme each year. In 2019, the group consisted of 8 residence permit holders instead of 10 to ensure that everyone could be given sufficient personal attention and support. A residence permit holder additionally started in the Service Team Operations, bringing the total to 9.

Stedin, the UAF (foundation for refugee students), the Werk en Vakmanschap national alliance and the municipality of Rotterdam cooperated on creating this project.

Employee motivation

Each September, Effectory carries out a motivation survey among employees who have been working for Stedin for longer than two months. The response rate in 2019 once again rose compared with 2018. Our performance was ranked as equal or better by our employees in all the areas surveyed. The greatest point of pride that is mentioned by all Stedin colleagues remains the working atmosphere. Cooperation between the various departments is the main area for improvement. Stedin applies two KPIs: commitment and engagement, and scores higher than or on-target for both of them.

Long-term employability

Long-term employability received a lot of attention in 2019. We want to encourage employees at work to preserve their vitality. At the same time, we offer support to employees on sick leave in recovering and returning to work.

Employee vitality

We provide employees with a package of services, training programmes and courses to increase their employability. Employees can quickly arrange an appointment with care providers who help to prevent work-related complaints such as RSI, back problems and stress, or questions about their workplace.

A Preventive Medical Examination (PME) pilot project was launched in 2019. The PME analyses an individual's health and vitality, enabling them to take timely action where necessary. We made the PME available to specific groups of our operational staff, such as on-call and emergency repair workers aged over 55. Of these groups, 59% took up the offer of the examination. Based on the results, which we expect in the first quarter of 2020, we will decide what steps we can take to enhance the vitality of this group and what the employees in this group can do themselves.

Sickness absence decreased

Data also help us when it comes to sickness absence. By operating on a more data-driven basis, we can analyse more quickly where the greatest issues are and take appropriate action in response. We also started working with a new working conditions service on 1 January 2019. In contrast with the previous year, our sickness absence rate was below the national average in 2019. We hope to continue this downward trend in the coming period.

Sickness absence

Our sickness absence edged down slightly compared with 2018.

Collective Labour Agreement for Grid Operators

In 2018, we reached agreement on the new collective labour agreement for the period from 1 May 2018 to 1 May 2021. We elaborated this agreement further in 2019. This elaboration resulted in a fully revised collective labour agreement and collective labour agreement text with effect from 1 January 2020. The text of the new collective labour agreement is intended to show more clearly what value the terms of employment in the collective labour agreement represent, to prove their attraction for all generations of employees and to offer future-proof terms of employment in a sector that is continuously changing. For example, we are introducing a vitality scheme for employees aged 62 years and older. This scheme allows employees to work for 32 hours a week at 90% of their salary, while maintaining full pension accrual rights. A further major change is the new Personal Budget that becomes effective on 1 January 2020. Unlike the 'old' Personal Budget, the new budget percentage is the same for all employees, regardless of their job level or age. Employees also receive 36 hours of accumulated leave a year, to which they can hold on for a maximum of 10 years. The Personal Budget is intended to offer flexibility, leaving the choice of whether it is used for monetary payment and/or leave to the individual employee.

As Stedin values broad employee representation in formulating collective terms of employment, it has laid down this notion in the collective labour agreement. To encourage trade union membership, Stedin made a one-off contribution of € 90 towards the trade union dues for every employee taking out new trade union membership in 2019. We also pay € 16 per year per employee to the combined trade unions.

Flexible work

Stedin Group offers flexible working arrangements.

• Short term: The Collective Labour Agreement for Grid Operators (CAO Netwerkbedrijven), which applies to Stedin, includes standard working hours from 7 a.m. to 9 p.m., Monday to Friday. Employees who do not work according to a fixed schedule or who do not have fixed working hours can arrange their own working hours within the standard window (even varying them daily). In accordance with the Collective Labour Agreement for Grid Operators, employees can purchase additional hours of leave on top of their statutory minimum entitlement from their monthly Benefit Budget.
• The Flexible Working Act allows employees to increase or reduce their contractual working hours as well as to adjust their working hours and workplace. This Act naturally applies to Stedin's employees as well. The vitality scheme previously referred to was also introduced.
• Teleworking: Employees who do not work according to a fixed schedule or who do not have fixed working hours can work on a flexible basis; for instance, choosing to work from home. This arrangement is subject to approval from their manager. Our employees can find further information on our Intranet.

Dependent care and special leave

Stedin does not provide on-site childcare. Employees using childcare receive a payment from the state and choose their own childcare provider. In case of an unforeseen, urgent situation requiring immediate action (e.g. picking up a sick child from school), employees are legally entitled to special leave on full pay (emergency leave or short-term leave of absence) not subject to a limited number of hours.

Moreover, employees are legally entitled to unpaid special leave (parental leave) for children aged up to eight for 26 times their number of weekly working hours. Stedin pays employees 70% of their statutory minimum wage during their parental leave. Employees are also entitled to care leave, during which time they receive 70% of their salary.

Performance bonus abolished

With effect from 2019, Stedin no longer awards a performance bonus and has converted it into fixed salary. Agreement was also reached with the trade unions in 2019 to convert the variable remuneration in the Collective Labour Agreement for Grid Operators and the Stedin company collective labour agreement into fixed payments. We surveyed the employees concerned on this change. In line with the outcome of the survey, these fixed payments were added to the new Personal Budget, so it now totals 24% of the salary.

Irregular work

According to Stedin's standard procedure, new employees are initially offered a 12-month fixed-term contract. Based on a pre-determined 'flow chart', it is decided whether – and, if so, for how long – the contract will be extended. A criterion influencing this decision is whether the position changes significantly within two years. In this case, no contract extension will be offered and no staff will be hired externally in principle. The employee's potential to progress will be taken into consideration with this regard. There is a legal limit on the number of successive temporary contracts that may be offered. The Balanced Labour Market Act (which has come into force on 1 January 2020) limits the number of temporary contracts that may be offered to three, for a total duration of three years, while the period between contracts is not allowed to exceed six months. Flexible use of temporary agency workers is limited as far as possible, depending on the type of work. A conscious decision may be made to use the flexible workforce in order to fulfil a need for temporary, irregular work. This situation may apply to temporary projects, to temporary support (e.g. maternity leave replacement) when specific expertise is momentarily required and to competences that are very scarce (e.g. specialised IT staff).

Departments draw up a staffing plan at the start of the year, in which they indicate how they intend to meet the target for internal and external employees at the departmental level.

In 2019, the ratio of internal to external employees was 15.9%. The target for 2020 is 15.1%.

Other topics

• Stedin is committed to avoiding redundancies. One way we seek to do so is by encouraging internal mobility (advancement). When a vacancy arises, both managers and employees are encouraged to fill the vacancy internally. We have also agreed a preliminary stage of between 6 and 24 months in the new Social Plan. This way, we are investing in 'work-to-work'.
• We have been a self-insurer for the WGA (Return to Work (Partially Disabled Persons) Regulations) and ZW (Sickness Benefits Act) since 1 July 2019. Instead of paying contributions to the Employee Insurance Agency (UWV), we are now responsible ourselves for paying benefits to employees who become incapacitated for work or who are entitled to sickness benefits. We already did so for employees who end up relying on unemployment benefits after leaving the organisation. The assistance to these employees is provided by an external agency. It is important to ensure that the number of people drawing sickness benefits, WGA benefits and unemployment benefits remains low. The Sickness Absence case managers continue to support managers on complex cases and long-term sickness absence.
• There was no major restructuring in 2019 which resulted in significant job losses.
• Stedin's employees are entitled to freedom of association. One examples is the 'Jong Stedin' young professionals network. The sessions that Jong Stedin organises are intended not just for young colleagues but for anyone in our organisation who is young at heart. Jong Stedin is a member of Rot.Jong, a network for young professionals at the 25 largest companies in Rotterdam and Inter Company Association (ICA), a network for young professionals at the 50 leading employers in the Netherlands.

Works Council

In accordance with the Works Councils Act, Stedin has a Works Council that consults with management on a fortnightly basis. The Works Council, the Board of Management and the Supervisory Board additionally conduct tripartite consultations, while the chair of the Works Council takes part in the Strategic Coalition. As the Works Council comprises several different committees, it is well informed of the issues and developments in the organisation.

Employee participation

As the Stedin Group Works Council, our role in 2019 focused on co-creation. In other words, we made an active contribution as far as possible from the start of any process. We fulfilled our role in relation to the following processes in 2019:

Stronger together – DNWG

The Works Council acts in close collaboration with DNWG to explore the differences and potential synergies as a new business unit. Special attention is paid to redundancy and changes of work location.

Sale of Joulz Diensten

Regarding the sale of Joulz, we made sure that the acquiring party is one that views employees as a vital capital asset. This process proved to be successful and we are satisfied with the choice of 3i Infrastructure.

Digitalisation

We gave team leaders and employees at Stedin a voice in relation to digitalisation. We conducted an anonymous survey, in which we asked them specifically which opportunities they saw for the organisation. This survey yielded a number of interesting insights, providing us with a better understanding of what further digitalisation can mean for Stedin.

Data

At Stedin, the issue of data is continually dominated by the question of how our organisation weighs privacy against safety; for example, in relation to the use of our cars. The Works Council favours prioritising safety, although without undermining privacy.

Internal labour market and personnel plan

We are in permanent dialogue with HR to examine the potential within the organisation, with the aim of stimulating internal advancement. If an ideal candidate for a position is available outside the organisation but there is someone internally who is almost suitable (almost suitable = also suitable), the Works Council favours developing the knowledge and skills of our internal colleague to meet the required level for the role.

The Works Council has also consistently stressed the importance of creating the aforementioned strategic personnel plan so as to provide Stedin with a clearer picture of our current personnel assets and the types of challenge that we face with our employees.

Special attention is paid to redundancy and changes of work location. For example, we jointly examined the possibility of providing temporary compensation for travel time with regard to a change of work location. We prioritise travel time by public transport rather than by car in this respect. As a sustainable employer, Stedin is keen on encouraging employees to use public transport. On the subject of redundancies, we favour gradual and natural staffing consequences; for instance, by concentrating on people who are due to retire shortly. We will have a clearer understanding of this subject in the coming year.

Collective Labour Agreement – Social Plan 

The Works Council is involved in the development and implementation of the Social Plan within Stedin Group.