Personnel development and management


Terna's system for developing and managing human resources is based on performance as an indicator to orient growth. The heart of the system is the Global Performance System (GPS), which is based on a definition of performance that includes two aspects: the first is the concrete achievement of pre-set targets, the second regards organized conduct put into practice to achieve those targets. Targets, conduct, assessments and feedback are collected in a software tool accessible to all personnel involved, which guarantees traceability over time. Annual repetition of the performance assessment cycle makes it possible to monitor and direct personal growth. Application of the GPS currently involves a group of employees with managerial and professional responsibilities: all senior executives, all junior executives (excluding the shift managers of the real-time network) and some white-collar workers. 


For manual workers and other employees not included in the GPS other forms of assessment are applied, such as periodic discussions between managers and HR representatives. This is also because the requisites of the positions held and the professional growth paths are more strictly determined by clauses in the collective employment contract.

Measurement of performance is also related to payment of the variable parts of remuneration. For senior executives who perform the most significant duties in terms of achieving strategic results, a 2011-2013 “cash” long-term incentive (LTI) plan, linked to multi-year corporate targets, was established. For junior executives who hold key roles in the company, a “Fidelity bonus” has been created.

Annual performance targets are the basis of other variable remuneration schemes. MBO (Management By Objectives), which is reserved for the corporate Management, links the amount of individual bonuses to the degree that targets are achieved, both at the corporate and at the individual level. The monitoring and control of corporate activities also makes use of the Balanced Scorecard system, through which the achievement of targets linked to the Strategic Plan – including sustainability objectives –  is assessed every quarter. The Balanced Scorecard system is linked to the MBO, connecting the sustainability targets to the variable remuneration system for executives.

Recognizing the importance of widespread employee involvement  in the implementation of programs and plans regarding quality and productivity, Terna signed an agreement with the trade unions that regulates a corporate-result bonus to encourage labour productivity (see also the section on Industrial Relations).

The bonus involves a variable element of remuneration and consists of two parts:

  • “corporate profitability” - linked to the Company’s general performance and paid to most employees generally, with the exception of senior executives;
  • “incentives for productivity/quality” - linked to the achievement of specific quality and productivity objectives connected with the employees’ work and paid to blue- and white-collar workers.

As at other large electricity companies, the treatment of employees at Terna (pay, working hours, holidays and other aspects of employment) is substantially better than the Italian average.


In particular, the following benefits are provided to most employees:

  • supplementary health care;
  • supplementary pensions (voluntary participation);
  • insurance for non-occupational injuries;
  • recreational associations;
  • more favourable maternity-leave conditions than those provided for by the law;
  • subsidized loans for purchasing a home, as well as for serious family problems;
  • cafeteria service or meal coupons.

These benefits are available to all employees once they have finished their trial period. Part-time employees and those with beginner contracts are also included. Insurance coverage for occupational injuries is regulated by law and is extended to all employees. Terna has established better conditions for specific categories. 


Furthermore, Terna’s employees (excluding senior executives who have access to a different fund) are automatically enrolled in the supplementary health-care fund FISDE (Supplementary Health-care Fund for Employees of the Enel Group). FISDE organizes prevention campaigns for its members, including preventive examinations and sessions providing information on major health risks. Among the topics of the information and prevention campaigns have been: smoking, alcohol, cancer, cardiovascular illnesses, ophthalmological illnesses, and disabilities.

FISDE pays part of the cost of medical treatment for illnesses not only for its employee members, but also for the dependent members of their families.

Beneficiaries Information on and prevention of risks Treatment
Workers yes yes
Families of workers no yes