employees with permanent contracts
million euro
used by employees with Hextra,
the company’s welfare plan
(with 98.5% of employees adhering)
variable retribution
of middle and senior management
depending on sustainability, 17%
on hsared value

Case study

Smart working project

The Smart Working pilot project continued to be developed in 2018. The project was launched in 2017 within the Group, bringing together 4 different aspects: culture and processes, technologies and systems, time and performance, and space.

Around 2,000 training hours were delivered, aimed at further spreading an agile culture within the Group and promoting the dissemination of a common language on this topic. With regard to “technologies and systems”, we focused on raising awareness and knowledge about available technologies and main cooperation and planning tools. Remote working, i.e. working for one day a week from a place other than the assigned location (including from home), was the main project carried out within the time and performance area. It was further developed and disseminated in 2018. Furthermore, as part of the projects regarding “space”, smart points were set up in a number of buildings on an experimental basis: these multi-purpose spaces respond more effectively to the need to find a place to cooperate and exchange views (with internal or external colleagues), or the need to have more reserved areas to better concentrate.

In 2018, completely satisfactory results were achieved both in terms of improving productivity and improving satisfaction. This is also why the project will be extended to further 1,500 people in 2019. Consequently, we will continue to invest in communication towards all employees and in specific training on the new process and on specific skills to make smart working more effective. The aim will be to continue measuring both collective and individual benefits, enhancing new opportunities and creating conditions to jointly increase productivity and well-being.

As part of this process, company management is required to further develop resource management skills in a context where performance grows in importance compared to the time and physical place of work. The Group’s Leadership model plays a leading and decisive role in ensuring effective application.

Sustainability in the management bonus system and in the performance bonus

Aspects that refer to sustainability are present in the bonus system for managers and middle managers and the systems for the determination of the performance bonus used by the Group. The performance bonus is influenced by indicators that are associated with quality, with work and service safety and with the environment, while the incentive system, which is connected to the balanced scorecard, provides (ever since 2006, when the Balanced scorecard system was introduced in the Group with the coordination of the Shared Value and Sustainability Department) for a part of the incentive to be connected to the achievement of sustainability targets.

In 2018, 30% of the variable remuneration of Group managers and middle managers was linked to sustainability target projects (improvement of quality, environmental impact, image, personnel involvement, professional development and involvement of stakeholders), with sustainability target projects aimed at creating shared value accounting for 17% (target projects associated with the “smart use of energy”, “efficient use of resources”, “innovation and contribution to development” CSV drivers).

Up to 25% of the performance bonus for middle managers, white-collar workers and blue-collar workers is related to shared objectives related to quality, environment and occupational safety.

Sustainability was also included in the deferred incentive plan for management retention redefined by the Board of Directors in the meeting of 19 December 2018, on the proposal of the Remuneration Committee. The Plan is reserved to a small number of managers selected by taking into account the weight of the organisational position, the evaluation of the performances achieved in the development process and the “market risk”. The development introduced for the three-year period 2019-2021 includes “shared value” EBITDA among the three indicators used to quantify the bonus to be paid in 2022. The target to be achieved is set out in the Business Plan for 2021.

Thanks to HeraSolidale, we were able to collect almost Euro 145,000 for 5 Non-Profit Organisations

HeraSolidale was created to promote support among Hera workers for voluntary associations.

The third edition of the project started in 2018 and will last until December 2019. The third edition of the project involved Group employees who voted for 5 out of the 15 non-profit organisations chosen by the company, according to the following criteria: reputation and transparency of activities, contribution to one or more goals of the 2030 UN Agenda, and intervention areas of relevance to Hera services (accessory criterion).

The 5 winning non-profit organisations are listed below, each with their own specific project:

  • ANT Italia Non-Profit Foundation: solidarity rhymes with sustainability for the purchase of a hybrid car for home care services
  • Save the Children: The Za’atari camp in Jordan, working together to help the war refugees in Syria
  • Donne in Rete contro la violenza: (Network of Women against violence): support through scholarships to women who are victims of violence
  • Butterfly Non-Profit Organisation: donates water by rehabilitating 3 wells in Ethiopia
  • AISM – Italian Multiple Sclerosis Association: funds research towards serious forms of multiple sclerosis.

820 workers joined the project, accepting to donate Euro 1, 3, or 5 (or another amount) every month which was withheld directly from their payslip.

An important new aspect of this last edition was the involvement of an external stakeholder: Hera’s new customers may donate Euro 1 to one of the 5 non-profit organisations when signing a contract with Hera.

But there is more; the company, as usual, wishes to play its part: HeraComm and HeraComm Marche will donate Euro 1 to every new customer during the two years of the project.

At the end of 2018, approximately Euro 145 thousand were collected: over Euro 57,400 donated by employees through withdrawal from their payroll and Hextra (91% of the amount donated by workers in the previous edition, but in 2 years), the integrated corporate welfare system, over Euro 87,400 donated by Hera Comm and Hera Comm Marche.

Diversity and inclusion index: Hera in the top 100 world ranking

The Hera Group has been confirmed as one of the most interesting companies, in Italy and worldwide, for investors who sustain companies committed to promoting diversity and inclusion. Hera, with a score of 73.5 points, proved to be the second company in Italy and the 22nd across the world in the Thomson Reuters Diversity and Inclusion Index. Moreover, its position within its own sector was outstanding, coming in first worldwide among multi-utilities.

The Group continues its work in developing internal and personalised career paths, an approach that allowed the company to reach an amount of women in roles with responsibility coming to around 32% in 2018. Rising overall, the percentage of female personnel furthermore ranked above the sector average (24.7%, as compared to 15.9%). These figures are accompanied by a percentage of employees with disabilities that reaches 4.5% of the company’s total workforce and also includes roles in management.

From all these points of view, the contribution coming from training is significant, with particularly important initiatives such as leadership and smart working courses favouring the development of human resources, based on factors including the diverse characteristics of each resource (gender, age, training, ability, inclination and skills), and undoubtedly from the corporate welfare plan, which sustains employees and their families in many different forms. Not by chance, encouraging results continue to emerge from the company climate survey, with further confirmation coming from a complete lack of disputes involving diversity and inclusion.

Lastly, many initiatives make plurality management concrete, including a range of work-life balance programmes and arrangements set up for parental leave, available not only for mums and dads but also for those who provide assistance to relatives or the elderly.