We want to reward our employees for good performance, believing that fair remuneration motivates our people to strive for excellence. Therefore, we consider remuneration and its fairness important, and continuously aim to develop our policies in a more transparent direction.
We apply and comply with the local labor legislation in all of our countries, as well as any collective bargaining agreements that specify remuneration-related matters such as minimum wages, and separate supplements such as overtime pay.
Overall remuneration = monetary salary + personnel benefits + development opportunities
At Neste, overall remuneration comprises several factors:
- Basic salary = monthly salary and fixed supplements
- Variable component = performance incentives, recognition for excellent performance, share-based incentives, Personnel Fund (Finland)
- Additional benefits = fringe benefits, health care, insurance cover, other benefits
- Development opportunities = opportunities for self-development, feedback, recognition and appreciation
Transparent and uniform rewarding
Our remuneration principles promote the implementation of our strategy, encourage people to perform well, and pay increasing attention to the transparency of rewarding and the uniformity of the principles. The principles are applied in different countries according to the local collective agreements, labor market conditions and the competitive situation. The rewarding principles were revised in 2013, and they contribute to the implementation of the Way Forward way of working.
The consistency of rewarding is ensured through a global requirement classification system and task classification.
Neste's senior executives do not lay within the scope of collective labor agreements; they are instead covered by Neste's senior management remuneration principles.
Short-term and long-term incentives
The performance bonus system is the key short-term incentive. Incentives are based on performance with regard to personal or team objectives and the Group's overall performance.
The Personnel Fund is the company's main long-term incentive and covers the Group's employees in Finland, except for those included in the scope of the share-based incentive scheme. Similar funds do not exist in other countries where Neste operates.
Competitive fringe benefits
In addition to salary, we aim to offer our employees
competitive fringe benefits in line with local market practices, such
as – in the case of Finland – comprehensive health care, a Personnel Fund, and an insurance fund.
Encouragement through recognition
Appreciation of good results is one of the themes of our Way Forward initiative. Recognition of good performance is simple, yet one of the most effective ways to encouraging people in their everyday work. Therefore, we have increasingly emphasized the significance of appreciation in strengthening professional identity in our supervisor training programs. Recognition is also proof of one's work having meaning. Appreciation by a colleague is considered to be particularly valuable, which is why we want to encourage our people to acknowledge their colleagues' good performance.