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We are a knowledge company. Our role as a supplier of services and source of expertise relies upon the knowledge, skills and attitudes of our people. Therefore, we will develop highly competent, high performing and engaged people who are committed to our Purpose, Vision and Values.

We strive to have a consistent, transparent and market-relevant compensation and benefit framework that supports the organization’s need for flexibility with respect to tasks, work location and career opportunities. Employees have the right to be organized in a union, which the company has committed to through its signing of the UN Global Compact. 

Engagement is a key factor driving performance for our employees and the organization. All employees are assessed on results and behavior through a structured performance management process. In order to give managers actionable data and help them prioritize actions, We conduct annual People Engagement Process (PEP) surveys, which also measures the quality of the performance management process. 

High leadership performance is required at all levels. The assessment, development and selection of new managers are based on DNV GL’s Expectations to Leaders: Respect and Care; Foresight; Customer Focus; and Result Orientation.  

The HR department for the Group sets the policies and directions and works closely with the HR departments in the business areas to ensure aligned implementation across the whole organization. 

We value dialogue and have broad geographic employee representation in the Board of Directors of the holding company of the Group. Our management will work constructively with employee organizations through the Global Employee Forum (GEF), regional and local work councils, and in daily operations.  

All employees have the right to express their views and concerns in good faith, in accordance with this Code. All employees have the right to join labor union(s) and participate in organized activities.

Project & Activities 


In 2014, we focused on harmonizing HR practices after the merger between GL and DNV including the harmonization of compensation and benefits which has been identified as being closely connected to other HR processes and a vital part of the integration process. The harmonization supports a common culture, ensures consistency and transparency and helps create a flexible work environment with career and competence development opportunities across the organization, regardless of geography and career track.

Reporting on Performance


At the end of 2014, the total number of permanent employees was 15,159. Positively, there is no indication that employee turnover has increased or that exit reasons have changed significantly as a consequence of the merger and integration process. Overall voluntary turnover for the year was 7%.

Employee data

Employee and workforce information

Total number of employees by employment contract, gender, supervised workers and self-employed worker, including employees and supervised employees of contractors.
Employee Class
Female
Male
Total
Employee Class
A
Female
4,654
Male
10,505
Total
15,159
Employee Class
C
Female
194
Male
359
Total
553
Employee Class
S
Female
1,068
Male
4,057
Total
5,125
Employee Class
X
Female
387
Male
556
Total
943
Employee Class
Total
Female
6,303
Male
15,477
Total
21,780

Employee classes

Note: Employee differentiation is necessary for DNV GL, as each class has different employment regulations.
A – Permanent employee:
C – Contract:
S – Subcontractor:
X – Extraordinary:
A – Permanent employee:
DNV GL has the responsibilities of an employer and the employee is on DNV GL’s payroll
C – Contract:
Same as ‘A’ but time limited: Personnel with a defined contract end-date. The contract is typically for over one year
S – Subcontractor:
Consultants, long-term hired. Paid by invoice only.
X – Extraordinary:
Temporary personnel: paid either by invoice or by DNV GL. Examples: summer temps, maternity leave cover, seasonal workers, graduates.

Permanent employees

Total number of permanent employees by employment type and gender
Full/part
F
M
Grand total
Full/part
F
F
3981
M
10015
Grand total
13996
Full/part
P
F
673
M
490
Grand total
1163
Full/part
Grand total
F
4654
M
10505
Grand total
15159

Total workforce

Total Workforce (Employee class A & C) by region and gender.
Region
Female
Male
Total
Region
Americas
Female
851
Male
1,713
Total
2,564
Region
Asia/Oceania
Female
973
Male
2,498
Total
3,471
Region
Europe/Africa/Middle East
Female
3,024
Male
6,653
Total
9,677
Region
Grand Total
Female
4,848
Male
10,864
Total
15,712

The total number of operations was 381 offices in 83 countries. Our operations are not subject to significant seasonal variations and thus employment numbers are steady throughout the year. 

Turnover and new hires 

Employee turnover in DNV GL during 2014

Total number and rate of employee turnover during 2014, by age group, gender and region.
Age Group
Gender
Region
Age Group
Under 31: 217 (13,9%)
Gender
Female: 403 (8,8%)
Region
Americas: 333 (13,7%)
Age Group
31-40: 535 (10,6%)
Gender
Male: 955 (9,0%)
Region
Asia/Oceania: 367 (11,1%)
Age Group
41-50: 316 (7,1%)
Gender
 
Region
Europe/ Africa/ Middle East: 658 (7,0%)
Age Group
51-60: 186 (6,3%)
Gender
 
Region
 
Age Group
Over 60: 104 (9,2%)
Gender
 
Region
Age Group
Total:
Gender
1 358 (9 % turnover)
Region
1 358 (9 % turnover)

New employee hires in DNV GL during 2014

Total number and rates of new employee hires during 2014, by age group, gender and region.
Age Group
Gender
Region
Age Group
Under 31: 474 (34%)
Gender
Female: 444 (32%)
Region
Americas: 419 (30%)
Age Group
31-40: 495 (36%)
Gender
Male: 939 (68%)
Region
Asia/Oceania: 250 (18%)
Age Group
41-50: 252 (18%)
Gender
 
Region
Europe/ Africa/ Middle East: 714 (52%)
Age Group
51-60: 114 (8%)
Gender
 
Region
 
Age Group
Over 60: 48 (3%)
Gender
 
Region
 
Age Group
Total:
Gender
1 383
Region
1 383

Minimum notice periods at DNV GL are typically 4-8 weeks. Notice periods vary by country, often guided by national legislation and additional provisions, in some additions to collective agreements. However, the notice period and provisions for consultation and negotiations are normally not specified in collective agreements.

Approximately 44% of all DNV GL employees are covered by collective bargaining agreements.

Whether formal agreements (either local or global) with trade unions cover health and safety. 

Most collective agreements entered into cover elements related to Health and Safety e.g. overtime hours and education of employees as well as company focus related to HSE topics. Since DNV GL has comprehensive internal instructions related to HSE and some of these are even further detailed in specific Business areas, there has not been a need to enter a lot of the HSE topics in local collective agreements.
    

Remuneration


The annual salary review & remuneration process is common for all employees including management and documented in the DNV GL Management System. The review procedure for the members of the Executive Committee differs slightly as a review is conducted and recommendations made by the Compensation Committee before being concluded and final decision on remuneration of the Group CEO is taken by the Board of Directors. The collection and analysis of relevant market data is very similar for all employees and management and external remuneration consultants are used at all levels; e.g. for the 15 largest countries in DNV GL through access to country specific salary and benefit databases with thousands of incumbents, where there is no relationship whatsoever between the remuneration consultant /data collector and the management. When conducting ad-hoc “mapping” of senior executives into relevant external salary levels/grades, e.g. after a large acquisition or merger, remuneration consultants are being used, but there are no on-going ties between the consultant and the management.  

The annual process can in short be described as the following: 

  1. The Annual salary frames shall be approved at Divisional level by the relevant Director of Division/Head of Independent Business Unit.
  2. Any additional mid-year salary frame adjustments shall be approved by the Group CEO.
  3. A salary frame proposal shall be based on the following criteria: 
    • Total compensation level in the market
    • Salary increment in the relevant external market
    • Actual versus forecasted wage position movement after last year’s salary review
    • Financial sustainability
    • Turnover level, ability to recruit
    • Consumer price index (CPI) development
    • Extraordinary elements affecting the local situation

All references to market data, competitor data, and statistics such as CPI development shall be documented. Benchmarking of DNV GL Total Compensation level in relevant markets should be performed as input to the salary frame. No vote on remuneration policies is applicable.


Benefit plans

Detailed information about pension costs, plan assets and defined benefit pension liabilities is available in the 2014 financial statement note 7 in the annual report (LINK TO ANNUAL REPORT). Per 31 December 2013 the “Pension liabilities recorded in the balance sheet (meaning not prepaid pension)” was NOK 1952.4 mill.


These “none prepaid” pension liabilities are reflected in the balance sheet according to commonly accepted International Accounting standards (specifically IAS-19). DNV GL follows the national regulations/policies related to the required funding and it is in particular in Germany and to some extent in countries with statutory End of Service plans where the liabilities are registered on the balance sheet. This is according to the normal and well accepted accounting procedure of these countries.


Most Defined Benefit (DB) plans do not pay in based on percent and is becoming less relevant as all major DB plans in DNV GL are closed for new members. For the countries with significant DB plans, we estimate the following contributions in percentage of salary:


Norway: approx. 20% employer contribution and 0% from employee.


UK: 15%-20% from employer and 3-5% from employees. Contributions/accruals taxed on individual basis if exceeding limited stated through national legislation.


Netherland: varies by age in traditional DB scheme. Contributions/accruals taxed on individual basis if exceeding limited stated through national legislation.


Germany:  The contribution to Defined Benefit plans estimated as a percentage of base salary varies depending on plan and age. No employee contribution.


Compensation guidelines: Executive Committee

The compensation guidelines for the members of the Executive Committee support DNV GL’s vision of being a global organization with a long-term perspective. The main compensation elements are focused around a market based salary, a bonus scheme with a retention element and a few standard employee benefits in line with the local markets.   

In DNV GL there is no difference in retirement benefits paid from the company based on role. The Group CEO and executive management team participate in the standard pension and insurance schemes applicable to the employees in Norway, United Kingdom, Germany and Italy respectively.  The legacy DNV members of the Executive Committee (except Group CEO) have standard employment contracts and standard terms and conditions regarding notice period and severance pay. Being partly owned by a foundation, DNV GL Group does not offer share option programmes. 


Legacy DNV has a bonus scheme with a retention component for all employees beyond a given salary group level. The bonus is based on a combination of Business Area and Group EBITA results and target varies by salary grade and performance assessment. Target bonus for the Executive Committee is 25 % and the maximum value is at 50% of base salary. The earned bonus is divided in three parts and the first part is paid the following year and thereafter another third the following two years. The pay-outs are forfeited if the executive resigns. 


The Legacy GL members of the Executive Committee have individual compensation agreements defined in their employment contracts. The total compensation includes a pensionable fixed salary, non-pensionable fixed salary as well as a variable bonus part.


There is no performance-based or equity based pay for the executive members in DNV GL, nor any deferred or vested shares, sign-on bonuses or recruitment incentive payments or clawbacks.


In DNV GL managers should not only be capable of creating a budget and deliver solid financial results, but also define and execute strategy and tactical plans, and lead their people in living our values and fulfilling our purpose of protecting life, property and the environment. In order to further develop the leadership necessary for DNV GL’s success, we must have clear leadership expectations for our managers, measure our managers on their overall performance, including but not limited to financial performance, and give managers the support, feedback, training, and guidance they need to meet these expectations.


The expectations to leaders are the core of all activities related to leadership in DNV GL and involves among other things respect and care, innovation and focus on quality and professionalism. They are used in the managing individual performance process (which in turn is linked to compensation), goal setting and coaching. They are also used as a primary reference point when identifying talent, selecting candidates for senior positions and for general succession planning.


The Chair of the highest governance body is not also an executive officer.


Compensation ratios

In order to ensure comparable data, the numbers in this section are based on:

  • Employees who have completed the harmonization of compensation and benefits and as a result has a defined role in our career model.
  • Employees working  full time.
  • Employees paid in the local currency.

 

Total number and percentage of employees included as part of the largest locations

Note: Germany not included as a significant location as the compensation harmonization has not been completed and data is therefore not sufficient to report.
Country
Employees at Location
Employees included in calculations
% of employees included
Country
China
Employees at Location
1 035
Employees included in calculations
583
% of employees included
56%
Country
Netherlands
Employees at Location
664
Employees included in calculations
580
% of employees included
87%
Country
Norway
Employees at Location
2 610
Employees included in calculations
2 315
% of employees included
89%
Country
United Kingdom
Employees at Location
1 302
Employees included in calculations
438
% of employees included
34%
Country
United States
Employees at Location
1 176
Employees included in calculations
523
% of employees included
44%
Country
TOTAL
Employees at Location
6 787
Employees included in calculations
4 439
% of employees included
65%

Ratio of salary for the highest paid employee versus median

Note: Legacy DNV employees only, the data is not yet available for legacy GL employees as they have not been fully harmonized into the DNV GL career model.
Country
Ratio Salary Highest/Median
Country
China
Ratio Salary Highest/Median
4,33
Country
Netherlands
Ratio Salary Highest/Median
3,55
Country
Norway
Ratio Salary Highest/Median
5,78
Country
United Kingdom
Ratio Salary Highest/Median
4,88
Country
United States
Ratio Salary Highest/Median
3,25

Ratio of salary for increase in salary for the highest paid employee versus median

Note: Legacy DNV employees only, the data is not yet available for legacy GL employees as they have not been fully harmonized into the DNV GL career model * There was no increase for the highest paid individual in China in 2014.
Country
Ratio Increase Highest/Median
Country
China
Ratio Increase Highest/Median
0*
Country
Netherlands
Ratio Increase Highest/Median
3,37
Country
Norway
Ratio Increase Highest/Median
2,05
Country
United Kingdom
Ratio Increase Highest/Median
1,13
Country
United States
Ratio Increase Highest/Median
0,89

Benefits provided to full-time employees that are not provided to part-time employees, by significant locations of operations:

Norway

Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Health care
Full time
Yes, but on voluntary basis
Part time
Yes, but on voluntary basis
Temporary
Yes, but on voluntary basis
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Parental leave
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Retirement provision
Full time
Statutory + DB or DC depending on start dat
Part time
Statutory + DB or DC depending on start date
Temporary
Statutory + DC depending on hours worked
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
No

Germany

Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Health care
Full time
Yes, but on voluntary basis
Part time
Yes, but on voluntary basis
Temporary
Yes, but on voluntary basis
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Parental leave
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Retirement provision
Full time
Statutory + DB or DC depending on start date
Part time
Statutory + DB or DC depending on start date
Temporary
Statutory +  DC depending on hours worked
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
No

US

Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Health care
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Parental leave
Full time
Yes, maternity
Part time
Yes, maternity
Temporary
Maternity, according to local legislation
Benefits
Retirement provision
Full time
Statutory +  DC matching plan
Part time
Statutory +  DC matching plan
Temporary
Statutory + DB or DC depending on start date
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
No

Netherlands

Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Health care
Full time
Yes, but on voluntary basis
Part time
Yes, but on voluntary basis
Temporary
Yes, but on voluntary basis
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Parental leave
Full time
Yes
Part time
Yes
Temporary
Yes, according to local legislation
Benefits
Retirement provision
Full time
Statutory + DB or DC depending on start date
Part time
Statutory + DB or DC depending on start date
Temporary
Statutory + DC depending on hours worked
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
Yes, according to local legislation

UK

Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Health care
Full time
Yes, but on voluntary basis
Part time
Yes, but on voluntary basis
Temporary
Yes, but on voluntary basis
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
Yes
Benefits
Parental leave
Full time
Yes
Part time
Yes
Temporary
Yes, according to local legislation
Benefits
Retirement provision
Full time
Statutory + DB or DC depending on start date
Part time
Statutory + DB or DC depending on start date
Temporary
Statutory +  DC depending on hours worked
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
No

China

*In China, interns and part-time subcontractors are not covered
Benefits
Full time
Part time
Temporary
Benefits
Life insurance
Full time
Yes
Part time
Yes
Temporary
Yes*
Benefits
Health care
Full time
Yes
Part time
Yes
Temporary
Yes*
Benefits
Disability cover
Full time
Yes
Part time
Yes
Temporary
No
Benefits
Parental leave
Full time
Yes, according to local legislation
Part time
Yes, according to local legislation
Temporary
No
Benefits
Retirement provision
Full time
Statutory +  DC matching plan
Part time
Statutory +  DC matching plan
Temporary
Only statutory pension
Benefits
Profit share /bonus
Full time
Yes
Part time
Yes
Temporary
No

Defined Benefit provision (DB) and Defined Contribution provision (DC)

Return to work and retention rates after parental leave


Due to the use of various HRM systems, DNV GL is currently not able to monitor the number of maternity or paternity leaves across the organization, and consequently not the turnover statistics for these employees.  DNV GL is in process of establishing a common HRM system and a common Finance system, which will enable such monitoring across the organization.  The process is expected to be completed in 2017.  However, the available data does not indicate that there is any higher turnover among those on maternity/paternity leave than for the rest of the employees.

Evaluation of the management approach


Having executed a major merger in 2014 – including harmonization of compensation and benefits - we are pleased to observe that there was no increase in voluntary turnover registered as compared to 2013.  Quite the opposite, through 2014 the turnover ratio has been reduced. Further, no impact has been observed on the exit reasons stated. In addition, the People Engagement Survey executed in September 2014 demonstrated a high commitment to the company and the merger. 

The above indicates that the merger is being successfully executed and that the organization has been able to retain its focus on its employees in a period of change. This is very positive. 

Improvement potentials have been identified related to performance management, and have been established as a Group KPI to be followed up through the year.