Employment
During 2009 calendar year, the average number of employees decreased from 13,729 to 11,982. As a consequence of a fall in demand, reductions in manned capacity were implemented throughout ESAB’s businesses. Through the calendar year of 2009 more than 1,200 jobs were lost, taking ESAB’s total reduction from Autumn 2008 to December 2009 to 1,641. Howden has benefited to some degree from its backlog of orders, but due to cost reduction requirements it was necessary to make 270 people redundant in 2009.
Human Resource Management
Our key 2009 goals for human resource management were managing and developing our existing talent worldwide, succession planning and more consistent and rigorous performance appraisal systems, including increased emphasis on CR objectives.
Recruitment, performance appraisal and reward processes have been enhanced across the Group. Through linking various processes together, such as the objectives planning process to that of budgeting and reporting, performance is being increasingly linked to reward. Talent management is linked to executive education, coaching and succession. This linkage of professional recruitment, performance management and reward directly supports the Company strategy of professional competence, excellence and customer focus.
We have retained these priorities whilst, in the face of a major downturn, also prioritising a responsible redundancy programme. Our approach has involved a combination of short-term working options, clear redundancy selection frameworks, appropriate compensation packages, clear communications, engagement with unions and government officials and outplacement counseling. This approach not only respects those affected but maintains the respect and trust of our retained employees.
To support our drive for more proactive HR management, our Group head of HR is also a Director of Charter Ltd. We recruited a new head of HR for ESAB North America and strengthened HR capability supporting our global lines of business. The Howden global HR group, set up in 2008, has now identified nineteen projects to be completed over five years, focusing on skills, development and retention.
Equal Opportunities and Diversity
Charter recognises and values diversity in the workforce and all recruitment, selection and promotion is on the basis of individuals’ qualifications, skills, experience and merit. No reports have been received of any breaches of anti-discrimination laws in all relevant jurisdictions concerning matters of gender, ethnic origin, age, religion, sexual orientation, or disability.
Employee Relations and Communications
ESAB and Howden continue to employ a range of different methods for ensuring employee communications through newsletters, intranets, team briefings and works councils.
Training and development
Charter businesses invest in employee skills and capabilities through a variety of programmes, including training and succession planning. We continue to invest in developing skills across both ESAB and Howden, for example through the Lean Manufacturing programme. Further information on specific activities can be found on the ESAB and Howden web sites.