Investor Presentaiton
BOARD OF DIRECTORS' REPORT
PERSONNEL AND SOCIAL MATTERS
Our main goal is to have the most capable and engaged team
of professionals, who succeed in a changing world. We strive
towards this goal through great employee experience, diverse
and inclusive culture, continuous learning, flexibility and
wellbeing. These are the core elements in our Empowered
People Way to Win, one of the four KONE-wide
transformation and development initiatives, which enable us to
succeed in our strategy. All KONE's activities are guided by
ethical principles. Employee rights and responsibilities include
the right to a safe and healthy working environment, fair and
equitable labor conditions, personal wellbeing, freedom of
association, collective bargaining, non-discrimination and the
right to a working environment in which harassment and
bullying are not tolerated.
COVID-19 impact on the way we work
While the COVID-19 pandemic continued to have an impact
globally in 2021, progress in vaccine rollouts resulted in
restrictions being eased in many regions during the second
half of the year. As regulations and practices varied from
country to country, we encouraged our country organizations
to actively follow the local rules and guidance to ensure that
we are compliant and able to take into account our customers'
requirements. Our main focus throughout the pandemic has
been to continue serving our customers in the safest manner
possible. We have supported our employees by offering
flexibility where needed and by ensuring easy access to
information on how to enhance wellbeing. The pandemic has
accelerated a change in how we work. During 2021, we
introduced the KONE flexible working statement confirming
that KONE will support flexible working arrangements that are
aligned with our business priorities.
Diversity and inclusion
We actively encourage diversity at KONE, and our values
guide us in upholding an inclusive culture. In the beginning of
2021, KONE launched a new strategic phase with strong
focus on sustainability and Diversity and Inclusion (D&I) as
key elements of it. As one of the D&I specific goals, we
committed to making a step-change in the share of women at
director level and increase it to 35% by 2030. In 2021, the
share of women in director level positions increased to 21%
(19%). Most of our employees are male representing 88%
(89%) of our people globally. We continue our efforts towards
Number of employees
Number of employees at the end of period
Average number of employees
Jan 1-Dec 31, 2021
62,720
61,698
Jan 1-Dec 31, 2020
61,380
60,376
Geographical distribution of KONE employees
Dec 31, 2021
23,669
Dec 31, 2020
23,798
7,258
7,336
31,792
30,246
62,720
61,380
EMEA
Americas
Asia-Pacific
Total
Personnel voluntary turnover rate was 7.8% (5.5%) Employee costs for the reporting period totaled EUR 3222 (3043) million. The geographical distribution of
KONE employees was 38% (December 31,2020: 39%) in EMEA, 12% (12%) in the Americas and 51% (49%) in Asia-Pacific.
achieving a more balanced gender split. During the reporting
year, KONE's workforce included 145 (147) nationalities. To
strengthen our global approach and deepen our customer and
market insights, we have goals to increase cultural diversity in
our global teams.
In 2021, we engaged our senior leaders to a D&I learning
journey to lead the way for an inclusive culture. We also
continued to strengthen D&I maturity in our countries through
various actions from transparent communication to data
driven decision making and more inclusive talent practices
and culture.
Our elevated focus on driving D&I is visible also in KONE's
new share-based long-term incentive plan, launched in the
beginning of 2021, where sustainability was introduced as a
new metric in addition to the financial metrics. The
sustainability metric is a combination of different elements
with diversity and inclusion being one of them.
Employee engagement & KONE culture
Making KONE a great place to work is KONE's number one
strategic target and it is measured by employee engagement
and a related Pulse employee survey. The Pulse survey offers
employees an opportunity to give feedback and covers topics
such as employee engagement and enablement, leadership,
learning and growth, corporate responsibility, customer
centricity, innovation and drive, as well as diversity and
inclusion.
In 2021, we conducted a light version of the Pulse survey
with 84% of all KONE employees taking part despite the
challenging circumstances brought on by COVID-19. The
global results show that KONE continues to be a great place
to work with a healthy company culture and KONE employees
are very engaged. Despite a slight decline from the very high
2020 scores in both engagement and enablement, the vast
majority of the survey results were clearly above the external
high-performance benchmarks. We also organized Pulse
Talks across all teams at KONE with 85% of employees
participating. The objective of the Talks was to ensure
continuous dialogue on team wellbeing and make KONE an
even better workplace.
During 2021, we continued developing KONE's culture to
ensure that it supports our strategic targets. Throughout the
year, employees continued sharing their thoughts about the
development of KONE's culture, values and ways of working
through facilitated online discussions. In addition, a new e-
learning course focused on KONE's culture and values was
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