Changes and composition of personnel

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In 2012 the Group's personnel fell in number compared with 2011, after two years of growth. This reduction is a reflection of few recruitments in comparison to greater leavings – meaning that employees leaving the Group were only partially replaced. At the end of 2012, the Italian companies of the Group totalled 3,433 employees, in addition to the 3 employees of the Montenegrin subsidiary Terna Crna Gora d.o.o. Unless explicitly indicated, these last employees are excluded from the data presented in this chapter.

Retirement is by far the most common reason for employees leaving, and is concentrated in the highest age bands. The turnover rate in terms of spontaneous resignations is always very low (0.3%; 0.5% in 2011; 1.2% in 2010): the total turnover rate, therefore, essentially reflects resignations owing to retirement. The average length of service of employees who left the company in 2012 was 32.8 years. 

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


2012 2011 2010
Total terminations 32.8 32.3 31.6
Men 33.5 32.1 31.2
Women 22.0 34.4 37.2
Less than 30 years old 2.3 3.5 1.6
Between 30 and 50 years old 11.9 6.7 9.1
Over 50 35.6 35.1 34.1
(1) In the case of employees who joined Terna following acquisitions of business units, the length of employment takes into account their previous employment.

For the sake of completeness, it should be noted that during 2012 Terna made use of 31 temporary workers (compared with 34 in 2011 and 28 in 2010) – these were employees of agencies that provide a temporary employment service to Terna. Although they are not employees of the company, these 31 people were employed in Terna's business for a pre-determined period and are included in the GRI definition of “total workforce” in their capacity as “supervised workers”.These employees are excluded from the data on personnel shown in the tables.

The decrease in temporary workers (from 4.1% to 1.5%) reflects the stabilisation of 114 employees who moved to a permanent position after having been  previously employed under trial contracts that expired in 2012, after 18 months of professional training.

PERSONNEL CHANGES 


2012 2011 2010
Total employees 3,433 3,493 3,468
Employees recruited during the year 45 176 178
Employees leaving during the year 105 151 157
- men 99 139 147
- women 6 12 10
- less than 30 years old 3 2 7
- between 30 and 50 years old 9 13 7
- over 50 93 136 143
Turnover rate on termination (%) (1)    
Total 3.0 4.4 4.6
Men 2.8 4.0 4.3
Women 0.2 0.4 0.3
Less than 30 years old 0.1 0.1 0.2
Between 30 and 50 years old 0.3 0.4 0.2
Over 50 2.7 3.9 4.2
(1) The turnover rates report the percentage of terminations with respect to the number of employees as of December 31 of the previous year.

PERSONNEL COMPOSITION


2012 2011 2010
Total employees 3,433 3,493 3,468
By contract type      
- permanent 3,383 3,350 3,361
- temporary 50 143 107
By employment type      
- full-time 3,401 3,463 3,438
- part-time 32 30 30
By gender      
- men 3,041 3,105 3,095
- women 392 388 373
By age      
- less than 30 years old 464 522 472
- between 30 and 50 years old 1,487 1,496 1,494
- over 50 1,482 1,475 1,502
Average age of personnel (years)      
Average age 45.7 45.2 45.6

To facilitate the interpretation of several indicators regarding personnel composition, the following table breaks down the employees of the Terna Group by professional category.

PERSONNEL COMPOSITION BY CATEGORY


2012 2011 2010
Total 3,433 3,493 3,468
Senior executives 59 60 59
Junior executives 502 490 502
White-collar workers 1,925 1,966 1,890
Blue-collar workers 947 977 1,017

Personnel turnover: comparative data

The comparison between Terna and other companies with regard to staff turnover was used a rate calculated by comparing the number of employees leaving to the number of employees at 31 December the previous year.  

As the staff turnover rate is an indirect indicator of the internal climate that affects every division of the company, the figures for transmission companies (TSO panel) and those of large companies listed on the Italian stock exchange (FTSE-MIB) were taken into account, as well as those for international leaders in sustainability (RobecoSAM - Supersector Leaders).

For 2012 Terna had a turnover rate of 3.0%, a reduction compared to the 4.4% of 2011, the year for which comparison data was available. Compared to other companies, Terna has a lower turnover rate than the average for all the reference panels. 

TSO panel: 12 figures available; average turnover rate: 4.9%; minimum value: 2.5%; maximum value: 8.2%; standard deviation: 1.9%. In this comparison, Terna is better than average, with the lowest value compared to the other panels, influenced by four companies with a rate of less than 4%.

FTSE-MIB panel: 23 figures available; average turnover rate: 7.2%; minimum value: 1.0%; maximum value: 18.5%; standard deviation: 4.9%. Terna is better than average for the FTSE-MIB panel of companies.

RobecoSAM - Supersector Leaders panel: 14 figures available; average turnover rate: 10.5%; minimum value: 2.2%; maximum value: 18.4%; standard deviation: 4.7%.

Even compared to the best global sustainability practices, Terna has a low turnover rate.

TSO TURNOVER RATE

TSO TURNOVER RATE

FTSE-MIB TURNOVER RATE

FTSE-MIB TURNOVER RATE

RobecoSAM - SUPER SECTOR LEADERS TURNOVER RATE

RobecoSAM - SUPER SECTOR LEADERS TURNOVER RATE

 

Days worked in 2012 by employees engaged by contractor companies for work done on behalf of Terna were 419,543, equivalent to 1,907 full-time employees (FTE - Full Time Equivalent) working all over the country (mainly constructing electricity lines and stations). This data takes into account the term of the construction contracts and the variability of use of the workforce within them and relate to all Terna's work contracts, from large construction sites to cutting trees under power lines. The days worked and the FTEs are estimated starting from the average and daily presences at the largest construction sites and from the amounts paid for contract work on smaller sites. No further information is available on the types of contracts used by contractors.

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EMPLOYEES OF CONTRACTORS AND SUBCONTRACTORS


2012 2011 2010
Days worked 419,543 456,807 434,044
Full-time equivalent 1,907 2,076 1,973

The management of generational turnover

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The new Italian legislation regarding retirement (Art. 24 of Italian Law No. 214/2011), which raised the age and years of contribution requisites necessary to gain the right to a pension, reduced the “catchment area” of potential retirees for Terna. A summary table of potential retirees in the period 2012-2017 is shown below. The total of 508 people can be broken down as follows:

People who have gained the right to a pension with the old legislation at 31.12.2011 115
of which: senior executives, junior executives and white-collar workers88
blue-collar workers27
People who will gain the right to a pension under the new legislation393
of which: senior executives, junior executives and white-collar workers228
blue-collar workers165

It should be noted that the probability of effective retirement in the five years considered is very high only for the first group of employees, for whom the reform guaranteed application of the previous requisites. On the other hand, for members of the second group, we expect more recourse to the possibility of opting to continue in employment and thus gain a higher pension. As regards expected retirements in the ten years 2012-2021, it should be remembered that the new legislation established that a mechanism related to “life expectancy” is to be periodically applied to the age requirements set out for access to the different retirement options. This is aimed at balancing pension fund management over the medium/long term. Consequently, at present it is not possible to reliably predict retirements over the decade.

Some time ago Terna began a series of initiatives to manage generational turnover. Among the most significant are:

  • the transmission of knowledge and experience, often specific exclusively to Terna, by expanding the organisation of training courses taught by in-house personnel;
  • professional orientation projects aimed at creating and transmitting technical and managerial skills enabling adequate performance of critical roles.

It should finally be considered that the entry of new, more highly-educated resources will make it possible to carry out the same activities as today more efficiently.