United Nations Public Service Awards Case Studies

PWD Technical Division is a centralized business unit of Finland’s capital, Helsinki, offering its customers construction, rental and transportation services in competition with the private sector. City offices and institutions form the majority of customers. It also sells its services to neighbouring towns and government organisations and the private sector. It has about 420 permanent employees, average age approximately 47. Workforce including fixed-term employees totals approximately 500. 60% of employees are over 45 and 25% over 56. All company activity is physically demanding or relatively demanding. Few careers last until normal retirement due to the physical workload.

As employees of the City, PWD Technical Division employees enjoy strong security of employment. The City does not dismiss permanent employees for financial or production-related reasons. The poor economic situation of the City and great pressure on PWD Technical Division to produce profits severely distorted the personnel structure in the early 1990’s, as municipal organisations undergoing strict economy drives were unable to recruit. In the early 2000's the average age of half the workforce was extremely high and the other half had only recently left school or educational institution. Management decided, however, to develop operating models with the workforce, to pull through with the current personnel structure, and to maintain future efficiency by competing in the job market with the private sector. PWD Technical Division’s programme for ageing workers resulted chiefly from this struggle for survival.

The programme has been a Finnish Ministry of Labour Workplace Development Programme project from the point of view of planning (2002 – 2003) and implementation (2004 – 2006). The Ministry of Labour considers this a worklife development spearhead project. It has attracted much interest through its results and completely new implementation method, in Finland and in Europe, resulting in numerous television interviews and published articles. The City intends to reproduce part of it for its 38,000 employees. The Ministry of Labour intends to encourage Finnish companies to learn from the experiences of ageing workforce management, based on the merging of individual and employer interests through a personal agreement containing ways to increase work attractiveness, thereby achieving productivity at all ages.

We feel our programme has brought significant changes to our management and work culture and created completely new models and methods, allowing employees to remain healthy, productive and motivated until normal retirement age, or even until 68 allowed under Finnish law. Key to the programme is recognition of employee expectations and needs in a long-term career plan. From a Finnish and European perspective, the programme personnel policy tools enable a completely new agreement on working hours, work content, earnings, age-based holidays and other work-related personal issues. A workload assessment was created, electronicized and implemented as part of the personnel management information system, creating employee, foremen and occupational health care interaction.

Concepts:

HEKS – HEnkilökohtainen työelämän KehittämisSuunnitelma (personal work development plan)
eHR information system – name used by PWD Technical Division for its electronic personnel management Arc R/T Resource information system, whose programme functionalities were developed with system supplier Arc Technology Oy.

What is the initiative about? (the solution)
The programme produced tools and procedures for planning and management systems, enabling the enhancement of health and work capability, ability to cope and productivity of an ageing workforce, including controlled transfer into retirement through raising retirement age and reducing part-time retirement. The programme also developed methods producing employee personal work development plans (HEKS) dealing with the latter part of the work life cycle. Methods developed related primarily to work content, social structure and individual development needs. The programme project was planned with the workforce during 2002 – 2003 and implemented during 2004 – 2006. First, an action plan was installed, followed by implementation. The workforce was closely involved throughout the planning process in development and ideation of needs and ways of achieving objectives. Programme objectives: 1. Individual work career continuation until normal retirement 2. preservation of individual earning power and occupational health throughout the work life cycle 3. Maintenance and updating of professional skills 4. Recording and transfer of experience-gained knowledge 5. Part-time retirement replaced by more flexible methods 6. Preservation of organisational competitiveness The programme’s core method is the personal work development plan (HEKS), made for every employee over 45. For HEKS implementation a broad package of personnel policy agreements and measures was developed with City of Helsinki personnel management. Key programme project implementation methods and achievements: • personal work life cycle development plans (HEKS) for all employees over 45, applying personnel policy tools developed for age management • electronic database (eHR) supporting age management planned and procured for foremen • developed new individual flexible working hour models • health guarantee model for those over 56 created and implemented (annual health checks) • triannual health checks and occupational health tests for those over 45 • implemented company doctor’s ”exercise prescription” – moderately healthy employees exercise and healthy eating activated through various interventions. • provided age-based holidays related to occupational health and workload for all over 56 as an alternative to part-time retirement • provided annual week-long fitness holidays for those over 45, linked to capacity use • created and implemented operational models for interaction between occupational health care, foremen and employees – role of health care changed from medical to occupational health care • created a so-called ”traffic light barometer” for workload assessment and implemented the transfer of employees to lighter tasks where necessary • foreman/subordinate dialogue as part of HEKS has been an exceptional tool in age programme implementation. The foremen have experienced this as the best tool regarding their own management (from the results of the evaluation interviews) Key programme results (presently the majority of results are part-estimates, to be finalised when the project closes at the end of 2006): •absence through illness reduced •higher average retirement age (discounting retirement through incapacity) •part-time retirements reduced by over half, flexible systems introduced instead – •employer’s image and reputation as an employer improved •previous productivity maintained, competitiveness preserved with its ageing workforce

Who proposed the solution, who implemented it and who were the stakeholders?
Launching of plans and personnel-related reports and research (2002) Network integration and network-based cooperation with partnership companies (2002) Creation of operational policy with those over 45, for programme implementation through work seminars and numerous working groups (2002) Planning of policy implementation measures and practical testing (2003) Development of support procedures for workload and occupational health (2003) Programme approval by City of Helsinki central administration in December (2003) Electronic eHR database developed with partner company ARC Technology (2004) Personal work life cycle development plans made for those over 45 (about 250) using electronic eHR database (2004 – 2005) Project evaluation launch (2005) Full programme implementation (2005 – 2006)

Describe how and when the initiative was implemented by answering these questions
a. What were the strategies used to implement the initiative? In no more than 500 words, provide a summary of the main objectives and strategies of the initiative, how they were established and by whom.
Average Finnish retirement age is 59. The ”pension time bomb” threatens working life and Finnish society, with the retirement of the baby boomers (born 1945 – 1950). Research shows current pension funds may be insufficient to cover pensions for baby boomers at the current rate of retirement. Conversely, Finnish working life is changing, with retirement removing a large body of knowledge gained through experience. The reform of the National Pension Law in 2005 offered considerable pension increases to encourage people to stay on at work. Instead of 65, it is now possible to work until 68 without separate agreement with the employer. At the start of the project, as today, there was much research information but few broad-scale concrete operating models applied in working life. Conversely, an employee may already retire at 62, although the pension would be notably less. However, the pension system is not attractive to employers, as employers’ contributions are not reduced. In the early 2000's competitiveness and profitability of PWD Technical Division was in danger of collapse, for several reasons. Because of the recession in the early 1990’s and the consequent halt in recruitment the average age of the workforce was extremely high and the workforce structure in disarray. Over 10% of the workforce were on part-time. Sick leave among hourly-paid employees was four times greater compared to the competing private sector, and for those on monthly salaries double the amount. Wastage would be high in the near future owing to the number of ageing employees and the anticipated retirement rate, and recruitment of the replacement workforce once again extremely difficult with the dramatic loss of the City of Helsinki state subsidy to the advantage of other Finnish towns. The City of Helsinki was consequently forced to reduce its investment in construction and equipment by 40%, which hit hardest precisely in PWD Technical Division’s field of activity, an area which had naturally become more competitive. At this point PWD Technical Division was obliged to think of ways to preserve competitiveness and profitability at previous levels. Securing turnover volume and maintaining an efficient production machinery in spite of an ageing workforce emerged as a key solution. Had production volume dropped dramatically, PWD Technical Division’s profitability would have collapsed. Had the efficiency of the production machinery dropped, PWD Technical division’s competitiveness would have weakened, resulting in reduced turnover. The capability, health and productivity of the existing workforce at PWD Technical Division had therefore to be maintained as long as possible and core competence for production transferred to new workers, though it would not possible to recruit in large numbers if production volume remained the same or fell. PWD Technical Division sickness leave should attain the level of the competing private sector; at the same time raising the retirement age. All this was only possible on a voluntary basis, as all PWD Technical Division employees are responsible for their own lives only to themselves and their families. The situation was complicated further by the urgent need for more workers in the competing private sector, taking both from PWD Technical Division and the free market. Under these circumstances the only way forward was complete confidential cooperation with the PWD Technical Division workforce, whose commitment and motivation we sought to acquire on a win/win basis.

b. What were the key development and implementation steps and the chronology? No more than 500 words
Programme objectives: 1.Individual work career continuation until normal retirement 2.preservation of individual earning power and occupational health throughout the work life cycle 3.Maintenance and updating of professional skills 4.Recording and transfer of experience-gained knowledge 5.Part-time retirement replaced by more flexible methods 6.Preservation of organisational competitiveness The programme was created as part of PWD Technical Division’s personnel programme, defining the principles governing the last 15-20 years of the work life cycle. The objective is that the employees’ mental well-being is preserved and the working career remains productive until normal retirement age and retirement begins in good health and readiness for new challenges following working life. The programme is divided into two parts. The first part deals with general principles of workforce policy adopted by PWD Technical Division. The second part covers the workforce policy measures employed by PWD Technical Division to implement the programme principles. Implementation of the programme is always at the individual level.

c. What were the main obstacles encountered? How were they overcome? No more than 500 words
The programme is based on agreement between foreman and subordinate, who mutually formulate the employee’s personal work development plan (HEKS). The plan emerges as a result of foreman/subordinate dialogue which always complies with the same content concept. The content concept was also formulated together with the workforce. This process is an essential part of the programme. Content of foreman/subordinate dialogue, forming the basis for HEKS, for which the foreman applies the structured personnel policy tool kit (guidelines, agreements, practices): 1.PERSONAL ORIENTATION AND SOCIAL FACTORS 2.PROFESSIONAL SKILLS AND SKILL UPDATING, EARNING POWER 3.WORK CAPABILITY AND PERFORMANCE 4.TEACHING TASKS, TRANSFER OF EXPERTISE AND EXPERIENCE 5.EARNINGS, WAGES AND MANAGEMENT OF WORKING HOURS 6.ENTERING RETIREMENT (CONCERNS OVER 56 YEAR OLDS ONLY) 7.EXPECTATIONS 8.HEKS ITEMS TO BE RECORDED Methods forming the tool kit for implementing the personal work development plan included: Safeguarding and development of professional skills and transfer of expertise •As a part of HEKS an updatable task rotation plan, either broad or narrow, in support of professional skills drawn up whenever possible and according to need. •Mapping and classification for transfer purposes of professional skills and expertise being lost through retirement, as a part of expertise management. •Creation by the foremen of a record and transfer programme for maintaining knowledge and skills •The programme includes methods and resources by which recording and transfer takes place (for example, apprenticeship, work pairs, mentoring, occupational training, etc) Safeguarding work capability and performance •An electronic process was implemented whereby employees, foremen and health care personnel monitor individual workload capability – all with simultaneous use of the system. •Regular dialogue on work capability and performance. Dialogue covers success and productivity at work and in the workplace, individual work safety and ergonomics. •A ”progressively lessening workload” drawn up wherever possible for those performing heavy work, where productive and progressively lighter work is the criterion. •Health guarantee for over 56 year olds consisting of an annual check on physical condition and a personal exercise guide and health examination with report. •An age-based holiday system for over 56 year olds instead of part-time retirement, consisting of paid holidays linked to individual workload. 56 year old workers receive 2 age-based holidays whereas a 65 year old can have as much as 20 •Over 45 year olds have the opportunity to go on a week’s guided fitness holiday. Wages, earnings and subsistence •Fluctuation of wages or earnings related to individual solutions was enabled through solutions pertaining to working hours or tasks. •Special tasks with increased work demands and pertaining to the transfer of expertise bolster earnings. •Calculation models on the pension impact of measures affecting earnings are always presented before making agreements. Workplace as a social network •Specific working groups were established for ageing workers, focusing on the events and development of work, working methods, performance and working atmosphere. These groups are called future teams. Future teams are formed by experienced professionals who create new models for each theme together with worklife development experts. Retirement •Persons entering retirement undergo training providing the opportunity to draw up a personal plan.

d. What resources were used for the initiative and what were its key benefits? In no more than 500 words, specify what were the financial, technical and human resources’ costs associated with this initiative. Describe how resources were mobilized
Positive -full management and personnel commitment -operational model tailored for PWD Technical Division -improved employer image of PWD Technical Division -tolerable number of workers leaving for other organisations -new workers recruited according to turnover volume -learning from the best practices of other organisations -sick leave reduced -near complete end to part-time retirement -progressively lessening workload for many -job satisfaction maintained at a high level -organisational competitiveness maintained at a high level -profitability at organisational level remained positive despite decreasing volumes -creation of the eHR information system to support management and to act as a tool for daily interaction between foremen and employers, and assisting cooperation with occupational health care -substantial improvement of occupational health care for PWD Technical Division -foremen’s adoption of age management ”Experimental” changes through the programme for ageing workers (assessment interview-based) •Management reports that those undergoing health and fitness checks were motivated to take care of their health and “envigorated” •Appreciation of ageing workers increased •Ageing workers transfer their know-how more readily to younger workers •Improved communication between age groups •No significant changes in the working environment •No changes in working hours •Improvement in work management and well-being of workers •Worker motivation improved •Retirement intentions unchanged, according to both workers and management the programme helps manage at most up to official retirement age •Some foremen felt their age management and leadership skills had developed •Foremen/subordinate dialogue brought the two parties closer •Foremen’s workload increased Note: assimilation of the multivariate programme for ageing workers takes time and results emerge slowly. The situation at PWD Technical Division after one year’s practical implementation is as follows: •Foremen’s and workers’ joint vision of the direction of the programme and its value •Successful commitment of foremen to the programme despite the increased workload •After initial resistance workers had taken to the programme well, but to some extent knowledge and use of the programme was still relatively modest •Practical application of programme measures was still under way •Some planned measures had still not been practically applied, for example, flexible hours •Even at this stage, however, results taken as a whole were positive. Challenges -weakened profitability resulting from an annual turnover decrease of approximately 5%, also weakening the opportunity for sufficient recruitment. Also, the timetables for planned reforms were slowed down or left incomplete (training for foremen regarding the establishment of change in the management system, computer training for employees to increase the utilisation ratio of the eHR system, launch of so-called "future teams", extensive utilisation of negotiated flexible working hours, internal rotation of tasks) -further reduction in sick leave to half the current level and restoring full-time employment for those in part-time retirement fit enough (1 case at PWD Technical Division) -deferment of retirement age of employees fit and willing to work (only 1 case at PWD Technical Division) -working for PWD Technical Division while in retirement (no cases at PWD Technical Division)

Is the initiative sustainable and transferable?
As of 2007 PWD Technical Division will continue implementing the measures of the programme for ageing workers in the broadest possible extent as part of normal PWD Technical Division personnel policy and strategies and operative personnel management. Some measures, however, require separate approval by City central administration. Nevertheless, the objectives include continuing the implementation of the practice developed regarding age-based holidays, and the granting of fitness holidays related to time, place and use of capacity. For the other parts PWD Technical Division shall in future have almost complete power to decide the measures of the programme for ageing workers. In future, the so-called "health guarantee", measures related to occupational health, work capability and workload, and the close cooperation with occupational health care shall be routine. This shall also be the case regarding the work of so-called "future teams" regarding the transfer of tacit knowledge and development of new operational models, ensuring the transfer of expertise within the organisation and the development of improved ways of working by seniors. Several elements of the programme for ageing workers of PWD Technical Division are relatively easily transferable to other organisations, especially municipal, State and private sector organisations that find themselves in competitive situations. However, it should be remembered that efficient cooperation and mutual trust between management and personnel is required to transfer the PWD Technical Division programme for ageing workers, along with inclusive and interactive methods enabling the understanding and approval of, as well as the extensive commitment to, the strategic and tactical objectives and the practical measures of the programme. Furthermore, the owner shall create a long-term development programme guaranteeing the conditions for the existence of the organisation and personnel policy practices. The programme for ageing workers is thus best suited to the municipal sector where employees on average work longer than in normal markets. This way the investments are profitable, as the personnel impacts of investments become manifest only in the long term. The management practices of the PWD Technical Division programme for ageing workers can largely be transferred to organisations of authorities operating with budgeted appropriations, as the demands for management practices are nearly the same for all ageing workers. On the other hand, authorities may find installing these types of application difficult, as their operations do not include characteristics such as sales of services, absolute timetables, or constant securing of capacity utilisation ratios. The City of Helsinki also needs to seriously consider an extensive overhaul of its personnel policy, especially regarding personnel administration and management. Challenges also include the need of ageing workers' to decide individually on their use of time, and maintaining work content as challenging as possible while supporting lifelong learning. These factors must be accommodated when seeking ways to raise the general retirement age. Tripartite cooperation with occupational health care, as well as maintaining and developing occupational health and work capability in general, partly at the employer's expense, is surely important to all City employees as they contemplate the choice over staying at work or retiring.

What are the impact of your initiative and the lessons learned?
Programme planning and implementation showed the crucialness of inclusive and interactive factors. Active personnel participation and management system development together with foremen based on employee needs created commitment and new perspectives. Management commitment, participation and involvement at the outset was important. Conversely, the management's individual experiences as ageing workers created a sense of solidarity. Along with employees, sympathetic shop stewards and key employees were involved in communicating the project and creating interaction between field and management. A project monitoring team appointed by the Ministry of Labour facilitated the adoption of extensive expertise during the project. Members of the monitoring team included Professor Juhani Ilmarinen, an age management expert from the Finnish Institute of Occupational Health, expert Timo Suurnäkki from the Centre for Occupational Safety, Director Marja-Leena Suhonen from the Local Government Pension Institution, and several other Finnish top experts. They played a key role in disseminating and adopting information. We learned that mere talk about ageing and informing people about project launches is not enough, but that everyone must be genuinely committed to action. Commitment and effective two-way information flow play key roles. In retrospect, the average 3 – 10 days individual and team training undergone by PWD Technical Division foremen was not enough to transform the management culture from performance-oriented to person-oriented. Faith and a management culture supporting ongoing change are needed. Foremen need tools enabling them to focus on people instead of processes. The eHR information system development is such an innovation, ideated by the foremen, considerably facilitating foremanship and creating interaction with occupational health care. Implementation of such a large project requires universal commitment. This is possible only with a genuine shared vision of the objectives. Ageing concerns both young and old. Appreciation of seniors and the harvesting of experience along with genuine employee interest by foremen gave us a decisive competitive edge and a better workplace. We all want to influence our lives, which includes work. We want to be meaningful people with meaningful jobs. Planning the last 15 years of our working career enables us to influence the degree of meaningfulness – our level of motivation and health. This is of great global importance, with obvious effects on health and the national economy.


Institution Name:		Public Works Department Technical Division city of Helsinki
Institution Type:		Public Organization
Contact Person:		Juha Nurmela
Title:		Development Engineer
Telephone/ Fax:		+358504013998
Institution's / Project's Website:
E-mail:		juha.nurmela@hel.fi
Address:		PL 1505
Postal Code:		00099
City:		City of Helsinki
State/Province:
Country:		Finland

The Problem

Solution and Key Benefits

Actors and Stakeholders

(a) Strategies

(b) Implementation

(c) Overcoming Obstacles

(d) Use of Resources

Sustainability and Transferability

Lessons Learned

Contact Information