Management report

Human resources

The profitability and value creation objectives need to be supported by consequent actions on the front of persons and processes.
For this reason, ERG accompanied the creation of the new business plan with the definition of the new model for the development of human and organisational assets, comprising four areas of initiative:

  • designing streamlined, fast, effective processes and organisational structures (LIGHT);
  • increasing the value of human assets (PEOPLE);
  • aligning and motivating managers (MBO);
  • focusing on value creation over time (LTI).

Organisation & processes 

At 31 December 2013, the ERG Group had a total of 778 employees (+165 from 31 December 2012), at the end of a year during which 206 people were hired and 41 left the Group. The following is noted:

  • ERG S.p.A. saw the number of its employees remain substantially unchanged (with a total of 281 persons, versus 280 at the end of the previous year), as a consequence of ordinary personnel turnover phenomena and of concurrent organisational initiatives to optimise activities and integrate the resources acquired through non-recurring transactions, which involved approximately 25 persons;
  • ISAB Energy Services S.r.l. personnel was reduced by 2 employees, to 283, continuing the process of boosting the efficiency of the organisational structure;
  • ERG Renew S.p.A. and its subsidiaries (with a total of 36 employees as at 31 December 2012) expanded the number of their employees by a considerable degree, reaching 203 as a result of the entry of 180 persons, mostly employees of companies acquired from International Power Maestrale and from IVPC, and of the simultaneous departure of 13 persons due to the rationalisation of activities;
  • ERG Oil Sicilia S.r.l. maintained its employee number substantially stable at 11, after the departure of 1 person who was not replaced.

The average age of the Group's personnel is slightly below 43 years, and in terms of education levels, the percentage of employees holding high school diplomas or university degrees amounted to approximately 87%, down from the end of the previous year (93%) because the personnel who joined the Group in the renewable energies business are mostly technical - operational.
In 2013, the rationalisation of the Group's organisation continued, with a project that involved the top management and that led to the definition of a new Group organisational model, called Fast Steering, whose goal was to assure the alignment between business strategies and corporate operating model, seeking the optimal environment where ERG's personnel can best express their capital of ideas and skills. The new corporate organisational model is meant to meet these needs through the interaction of three macro-roles:

  • the Parent Company ERG S.p.A., which will provide strategic direction, managerial control and protection of the human, financial and relational capital as essential assets for growth;
  • the business units, i.e. special purpose entities focused on their respective business and provided with adequate structures of their own, able to assure operating efficiency, momentum for growth and prompt responses to the volatility of reference markets; and
  • ERG Services S.p.A., a company tasked with reaching operating excellence in the performance of support services to all the companies of the ERG Group ("shared services").

The new organisation was announced in the final weeks of the year and its actual implementation, both with regard to compliance with formal requirements and with regard to the realignment of all operating processes, is expected in the first half of 2014.

Human resources development

Dispersed leadership is ERG's managerial development model. This means that the management team is closely involved in the development of human resources as a corporate competitiveness multiplier.
For this reason, during the year the Human Resources Committee, established in 2012, held regular meetings to carry out its fundamental role in defining and monitoring the main programs and activities for human resources development, supporting Executive Deputy Chairman and the Chief Executive Officer in major personnel management decisions. The Committee does not serve only as an orienting body, e.g. with regard to the sharing and launching of the Group's new organisational model, but it also actively promotes the spread of a new managerial culture and the implementation of new strategies and instruments for
their achievement.

In particular, the Committee gave a fundamental impulse for the development of the following processes:

  • job evaluation & succession planning;
  • career planning;
  • talent management;
  • promotion and key people management.

The objective, pursued with unrelenting focus, is to provide the Group with an integrated system that assures that its capital of skills and knowledge is continuously adapted to everchanging business conditions, so that available resources are always capable or rising to the challenges put forward by ever keener competition and by a complex, rapidly changing scenario.
The investment in training activities was kept at high levels (approximately 1,160 days involving approximately 480 persons), but above all it was distinguished by its quality and focus. Today, the system comprises three areas (Managerial, Institutional and technical/ specialist) and it covers all the needs of the company's personnel with an end-to-end approach (from newly hired personnel to executives).

Aligning and motivating managers

The ability to align the company's management on clear, integrated objectives is a primary need of modern organisations.
For this reason, in 2013 the new incentive system for key executives and managers, developed in 2012 and intended for key executives and managers, through a Management By Objectives (MBO) approach, was fully implemented. The selected balance between Group objectives (30%) and individual objectives (70%) matches leading companies' best practices for managerial incentives and it was designed to provide further support to the development of leadership and individual initiative.

Communications and involvement

The need to connect the various levels of ERG's organisation and its various geographic locations was already met in 2012 with the creation of an internal communication network that balances the use of the most modern technologies and the values and effectiveness of face-to-face communication. The goal of providing more support and to share information and simplify the work, continuing to promote the company's culture and values to foster a greater sense of belonging and mutual co-operation among personnel was strengthened in 2013 by the entry of over 200 persons into the Group, located mostly in Central and Southern Italy, in several small locations distributed throughout the territory near the wind farms owned by the Group. Focused initiatives were carried out for the rapid integration and involvement of the new personnel in the Group's processes and initiatives: from the layout of the spaces to the technological instruments, communication was one of the instruments used to try continuously to reinforce their sense of belonging and Group spirit.

  • Intranet Portal: the new portal, opened in September 2012, enriched with the tools of Web 2.0 systems, whose use allows a higher level of interaction with and among users, remains a central element for internal communication, representing the access point, available anywhere, for information, documentation and as a work area.
  • TeamERG: in 2013, publication of the TeamERG periodical continued; it is also available in electronic format viewable from the Intranet and it has been further improved in its layout and content thanks to the introduction of sections in English for the discussion of internal issues, in particular pertaining to the world of renewable energies.
  • Group Meeting: the half-yearly meetings between the company's Senior Executives and its managers continued; the meetings were recorded and broadcast on the portal, together with the individual reports, in order to share with all the Group's resources an occasion to gain insight and stay up to date on the development of individual business areas.
  • Other initiatives: sport-related activities also continued. A numerous group of ERG athletes represented our Group at Italy's National Petroleum Championship – the multidisciplinary sports event launched in 2000 by Italian oil companies – and at the London Marathon.

 

ERG S.p.A. - Genova

Paolo Merli

Head of Corporate Finance & Investor Relations

0039 010 2401376

ERG S.p.A. - Genova

Matteo Bagnara

Investor Relations

0039 010 2401423

ir@erg.it


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