Increased diversity promotes innovation and develops the company
Alfa Laval’s growth in recent years has been a challenge. This applies to the new employees and the HR staff, whose task is to ensure that new employees are integrated into operations in a favorable manner. Accordingly, operations in 2008 focused on a number of prioritized areas.
Training and development
Training programs have been carried out at all levels in the company to capitalize on and develop the skills that have been added in recent years. Several ongoing programs were accelerated while at the same time special initiatives were undertaken to promote new training opportunities for employees in the sales organization. The initiatives included establishment of a global development program for managers in Parts & Service, start of an intensive leadership program in Latin America and specific training programs for the company’s finance managers.
Focus was also placed on ensuring that the employees continue to concentrate on the “vital few,” the few points that are particularly important to prioritize to achieve success in the company’s business. This applies to the veterans in the company as well as the new employees. “The vital few” can change depending on developments and should reflect what is particularly important for the foreseeable future.
Labour market for internal recruitment
During 2007, work began with creating an internal labour market. One tool to achieve this objective was to create a new section on the intranet at which vacant positions were advertised. All vacancies, including manager positions, are announced and internal candidates are encouraged to apply. The goal was to broaden the base of applicants to achieve increased mobility within the company, geographically as well as in terms of positions, to increase diversification and, by extension, promote innovation. This is beneficial for both the individual and the company since knowledge is spread throughout the organization.
The results began to become apparent in 2008. Among other indications, the number of advertised positions quadrupled. Previously, these vacant positions were not visible, since they were filled through suitable persons being identified by managers and HR personnel.
The increased openness regarding vacant positions also contributed to greater mobility. About one third of Alfa Laval’s 90 level-3 managers had changed positions at year-end and one third of these had completely changed areas. Level-3 managers report directly to a member of Group Management.
Careers on equal terms
The international career opportunities were also broadened with the help of the internal labour market. Previously, transfers largely went in one direction, from Sweden to other parts of the world. This has changed and movement has now become more diversified.
Capitalizing on the cultural differences is extremely important in a global company. Similarly, it is also important that knowledge is spread internationally. The goal is that all employees within the Group, regardless of country, must be able to feel that there are career paths open for them.
Successively, the number of nationalities on international assignments has increased. During 2008, 28 nationalities were represented among those who departed for international assignments. Ten years earlier, only five nationalities were represented.
It is also important to have an international diversity at manager level. At year-end, there were 30 nationalities represented among Alfa Laval’s 90 level-3 managers. Within the company as a whole, there are more than 60 nationalities.
Alfa Laval considers it a priority to change the distribution with regards to nationality and gender. It is the difference between people that contributes to promoting creativity, bringing out new perspectives and pursuing innovation. In 2008, the portion of women within Alfa Laval amounted to 20 percent, while at the same time the proportion in management positions was slightly more than 15 percent. The long-term ambition is to recognize women with executive potential at an early stage to reduce the gap between the proportion of women at management level and the number of women in the company as a whole.
Both the internal labour market and the internationalization efforts are part of Alfa Laval’s desire to identify, develop and retain talent. Since it is important operationally to retain competence in the company, there are possibilities within Alfa Laval for transfers between staff functions, positions and countries. Knowledge about the company remains, while at the same time the individual gain a chance to develop through trying out totally new tasks.
Controlled recruiting
Group Management is involved is all personnel changes. Every vacant position is registered and must be approved by this group before anyone is employed. Statistics regarding recruitment and personnel turnover are closely watched so that the cost trend can be monitored and resources allocated to those segments and countries considered to have the best potential.
Development of HR organization
The HR staff function within Alfa Laval has developed into a global, operations-oriented organization from being a local, administrative unit. Successively during the year an overall plan was rolled out to ensure that everyone dealing with personnel issues works from a common process.
HR representatives are positioned at every level to ensure that the right person, with the right qualifications, is in place at the right time so that operations develop optimally.
At Ashridge Business School in the UK, Alfa Laval conducts leadership training as part of the internal SAM (Sales and Marketing) Managers Programme.