Changes in personnel composition

LA1In 2011 the Group’s personnel recorded a slight increase over 2010. The three-year trend is in line with the Company’s LA2plans regarding efficiency, marking a decrease with respect to the 2008 level (3,524 employees in Italy).

LA13Retirement is by far the most important cause of employee terminations, which are concentrated among the oldest workers. The turnover rate due to spontaneous resignations continues to be very low (0.5%); the overall turnover rate essentially reflects retirements. The average number of years worked at the Company by employees who quit in 2011 was 32.3.

AVERAGE YEARS OF EMPLOYMENT OF EMPLOYEES LEAVING THE COMPANY (1)


2011 2010 2009
Total terminations 32.3 31.6 32.3
Men 32.1 31.2 33.0
Women 34.4 37.2 25.5
Less than 30 years old 3.5 1.6 1.0
Between 30 and 50 years old 6.7 9.1 8.6
More than 50 years old 35.1 34.1 34.1
(1) In the case of employees hired by Terna following acquisitions of divisions, the length of employment takes into account their previous employment.

For the sake of completeness, it should be noted that during 2011 Terna had 34 temporary workers (28 in 2010 and 33 in 2009), who were employees of agencies that supply labor to Terna. Although they were not employees of the Company, these 34 people were involved in Terna’s activities for a pre-determined period of time and fall under the GRI’s definition of “total workforce” as “supervised workers”. These workers are not included in the personnel data shown in the tables.

For the Group, the increase in the number of fixed-term employees (from 3.1% to 4.1%) reflects the use of 18-month beginner contracts, which are generally transformed into permanent ones at the end of the period of training and professional integration.

PERSONNEL CHANGES
  2011 2010 2009
Total employees 3,493 3,468 3,447
Employees hired during the year 176 178 57
Employees leaving during the year 151 157 134
- men 139 147 122
- women 12 10 12
- less than 30 years old 2 7 1
-between 30 and 50 years old 13 7 8
- more than 50 years old 136 143 125
Turnover rate terminations (%) (1)      
Total 4.4 4.6 3.8
Men 4.0 4.3 3.5
Women 0.4 0.3 0.3
Less than 30 years old 0.1 0.2 0.0
Between 30 and 50 years old 0.4 0.2 0.2
More than 50 years old 3.9 4.2 3.6

 

(1) Turnover rates report the percentage of terminations with respect to the number of employees as of December, 31 of the previous year
PERSONNEL COMPOSITION
  2011 2010 2009
Total employees 3,493 3,468 3,447
By contract type      
- permanent 3,350 3,361 3,374
- fixed-term 143 107 73
By employment type      
- full time 3,463 3,438 3,417
- part time 30 30 30
By gender      
- men 3,105 3,095 3,092
- women 388 373 355
By age      
- less than 30 years old 522 472 393
- between 30 and 50 years old 1,496 1,494 1,553
- more than 50 years old 1,475 1,502 1,501
Average personnel age (years)      
Average biographical age 45.2 45.6 46.4

To facilitate the interpretation of several indicators regarding personnel composition, the following table breaks down the employees of Terna S.p.A. by professional category as of December 31, 2011.

PERSONNEL COMPOSITION BY CATEGORY
  2011 2010 2009
Total 3,493 3,468 3,447
Senior executives 60 59 65
Junior executives 490 502 488
White collar workers 1,966 1,890 1,874
Blue collar workers 977 1,017 1,020

Personnel turnover: comparative data

The comparison between Terna and other companies regarding personnel turnover was conducted based on the rate calculated of employees leaving as of December 31 of the previous year.   

Since the personnel turnover rate is an indirect indicator of the corporate climate that generally regards all sectors, data was examined both from only transmission companies (TSO panel), from the leading Italian listed companies (FTSE-MIB) and from the international sustainability leaders (SAM - Supersector Leaders).

In 2011, Terna registered a turnover rate equal to 4.4%; in 2010, the year of available reference data, the turnover rate was equal to 4.5%.

In the comparison with other companies, Terna registered a turnover rate lower than the average with respect to all the reference panels. In particular, it registered figures that were among the lowest in the FTSE-MIB panel and in that of the international best practices.

TSO panel: 13 available data (12 companies of which one present with different data according to country); average turnover rate: 5.9%; lowest figure: 1.7%; highest figure: 12.8%; standard deviation: 3.2%. In this comparison, Terna ranked below the average, with the lowest figure with respect to the other panels, influenced by three companies that registered a rate below 4%. 

FTSE-MIB Panel: 22 available data (21 companies, one of which present with different data for activities in Italy and abroad); average turnover rate: 9.2%; lowest figure: 1.6%; highest figure: 15.4%; standard deviation: 4.5%. Terna ranked much below the average of the 21 companies of the FTSE-MIB that published data. 

SAM – Supersector Leaders Panel: 15 available data (13 companies of which two present with different data according to sector or country of activity considered); average turnover rate: 8.5%; lowest figure: 1.0%; highest figure: 20.0%; standard deviation: 5.7%.

Even in the comparison with the global sustainability best practices, Terna registered a low turnover rate for employees leaving the company. 

TSO TURNOVER RATE

TSO TURNOVER RATE

FTSE-MIB TURNOVER RATE

FTSE-MIB TURNOVER RATE

SAM - SUPER SECTOR LEADERS TURNOVER RATE

SAM SUPER SECTOR LEADERS TURNOVER RATE

(*) Turnover rate were calculated using available data

 

 

Terna has offices all over Italy – among other things, because of the necessity of prompt maintenance work on its entire grid.

Working days in 2011 for employees hired by contractors for work carried out for Terna totaled 456,807, equal to 2,076 FTE employees (Full Time Equivalent) (mainly workers assigned to building electricity lines and power stations) across the national territory.The increase recorded during the three-year period reflects the growth of investing activities that include assigning work to contractors. This data takes into account the duration of the contract work, as well as the variability of the use of personnel therein, and regard all of Terna’s contract work, from the construction sites of large-scale work to the cutting of vegetation under overhead lines. The days worked and FTE employees are estimated on the basis of the average and daily number of workers on the largest construction sites and of the amounts paid for contract work on the smaller ones. No additional information is available regarding the types of contracts applied by the contractors.

EU17

EMPLOYEES OF CONTRACTORS AND SUBCONTRACTORS
  2011 2010 2009
Days worked 456,807 434,044 336,600
Full Time Equivalent 2,076 1,973 1,530

The management of generational turnoverEU15
EU21 

The new recently approved Italian legislation regarding retirement (Art. 24 of Law no. 214/2011), that raised the age and seniority requirements necessary for accruing the right to retirement, significantly reduced, also for Terna, the potential “group” of employees leaving, that last year were estimated to be equal to 728 in the 2011-2015 period. The table below summarizes the potential number of employees leaving in the 2012-2016 five-year period, on the basis of data available in the Company’s information services. 

POTENTIAL NUMBER OF EMPLOYEES LEAVING IN THE 2012-2016 FIVE-YEAR PERIOD
People that accrued the right to retirement (based on the old laws) as of 31.12.2011 
Senior executives, junior executives, white collar workers125
Blue collar workers40
People that will accrue, for various reasons, the right to retirement for the 2012-2016 period 
Senior executives, junior executives, white collar workers92
Blue collar workers49

It is necessary to note that the actual probability for leaving work during the five-year under consideration is very high only for the first group of employees, for which the reform includes the application of the previous requirements. For those belonging to the second group, instead, a greater use is expected of the possibility for opting to continue working and consequently accrue a better retirement plan. Regarding a forecast for retirements for the 2012-2021 period, the new legislation established that, along with the biographical requirements established for accessing the different retirement modalities, a mechanism is periodically applied that is connected to the “life expectancy”, aimed at balancing medium and long term social security management. Consequently, it is currently not possible to make an accurate forecast of the people expected to leave over the ten year period.

For some time, Terna has implemented various initiatives for managing the generational turnover, the main ones being:

  • transferring know-how and expertise, often specific only to Terna, by strengthening the organization of training courses held by internal instructors;
  • professional orientation projects aimed at creating and transferring technical and managerial expertise for adequately covering critical roles.

It should also be considered that the entry of new resources having a higher education will make it possible to carry out the same activities as today more efficiently.