Social Responsibility Report 2006 Employability within TNT Post

Striking an acceptable balance between corporate viability and social responsibility

With the rise of electronic mail and liberalisation of the postal market, TNT’s postal division finds itself facing a considerable mail volume decline. After decades with a Dutch market share of 95% and long-term contracts of its staff, the decision to reduce workforce numbers was a tough call to make. Proud of being an excellent employer, TNT Post is having nevertheless to get to grips with maintaining corporate viability and the reality of letting people go. How has TNT set about solving this complicated and sensitive challenge?

Since the publication of the company’s so-called Master Plans six years ago and the associated reduction of staff within the division, there has been ongoing communication on the topic within TNT. The objective of the communication is to ensure that this reduction occurs in a way that is, if not popular, at least acceptable to and understood by those involved. One of the unique features of the company’s assistance is that it initiated efforts to stimulate voluntary outflow while people were still in employment within the company. In 2005, a Mobility department was set up within TNT Post with two objectives. First, to explain the necessity of the changes and second, to make those having to leave attractive to other employers.

TNT’s Mobility department

Gerard Heuvelman, Director of the Mobility department, describes the situation: “The process of detaching yourself from your employer is like a mourning process, especially for many of our staff who have been with us for 20 or 30 years. To many employees the idea of leaving Post is shocking - TNT Post is their life. They cannot conceive of working for another employer. Nevertheless, we have a target that has to be met if we are to remain profitable. It is a complex, costly process that has demanded much research and clear and honest communication within the company. People need to know what is going on.”

To ensure people understand the reality and details of the situation, the Mobility department, in cooperation with HR, initiated a broad awareness campaign in 2005, including numerous information meetings, local management training and a company-wide poster initiative explaining the state of affairs. The training programmes aim to sensitise management to the issues and the inevitable exacting questions from their staff. More recently, the company has started publishing a company-internal magazine that addresses the challenge of finding new positions in the current job market. An additional resource is a newly-established website, www.werksite.nu, that offers job and sector descriptions, contact options for job-related questions and describes the experiences of staff who have left. Heuvelman: “You can’t take on other people’s problems, but you can help. We wanted to make sure that people understand that we are there to assist them, tough as the reality may be. We also wanted to show that it has already worked for hundreds of people. Once we had made this clear, we set about making sure we would keep our word.”

‘I have a soft spot for transport,
I love working outdoors’

Jan de Leeuw (38) Woerden

“I was always on the road at TNT Post. Before that I worked as a driver for the Dutch Ministry of Defence. I have always had a soft spot for transport. I love working outdoors and having all that space around me. When I heard that TNT Post had reached an agreement with Utrecht’s public transport service, I jumped at the chance. Now I’m training to be a bus driver. It’s hard work and you have to take a lot in very quickly, but now I can’t wait to get out there.”

From work to work

Since the Master Plans’ targets were published, hundreds of staff have found employment outside the company. As was expected, however, these have mainly included those with the greatest initiative and the best chances on the labour market. All staff are offered outflow benefits, known internally as the ‘backpack’, the financial benefit of which can amount to several months’ salary, depending on employment duration. Additional content includes the option of advice from a mobility advisor for creating a personal development plan. This plan sets down where employees are now, where they want to go, and the best way to get there. In total, over 1,600 staff made use of this option in 2005, of which 370 have found employment outside the company. Linked to this is the opportunity to follow external training programmes, attracting a total of some 400 employees. An additional 1,090 staff who did not create a personal development plan have also found new jobs.

After the initial outflow, however, the number of staff prepared to leave started to decline and it was clear that further initiatives were required if the outflow targets were to be met. There are two main pitfalls that de-motivate employees to leave the company. One relates to the thought that there are no jobs to be found. The second issue is more complicated and involves staff’s self-confidence on the labour market after years at TNT.

‘After 28 years with TNT Post I had to pass
an exam for my new job, and I did.’

Cor Kirboo (45) Ridderkerk

“I would have liked to stay with TNT Post, but it’s no good sticking your head in the sand. That’s why - after 28 years with the company ᾢ I decided to leave. I’ve been working as a police station guard with the Rotterdam Police since December last year. I started right away with the training. That was tough going, but I passed the exam all the same. I love working here. And what’s more, I earn more than I did with TNT Post and I have better growth opportunities.”

Addressing the first issue, extensive desk research, staff surveys and a job market scan investigated which sectors were likely find TNT’s employees attractive, and just as importantly, with which jobs TNT employees would be comfortable. Eight suitable sectors and twenty-one appropriate positions emerged, such as the police force, security officers, transport companies, administrative staff, courier services and others. In this initiative known as ‘job seeks employee’, TNT actively searches the job market to find large groups of vacancies, including identifying specific companies that actually have vacancies suitable to TNT staff.

In addition to these centralised sectors, many tens of thousands of jobs can be found in small and medium-sized enterprises that cannot be targeted by a central Mobility team. In this case, local management is called on to assist in unearthing local networks.

‘I’m back in my old profession’

Erwin Wijnberg (31) Amsterdam

“I actually trained as a pastry cook. When I saw Verkade was looking for people, I thought to myself ᾢ that’s the job for me. I now make dough in the factory. Although the work is similar to that at TNT, the product is certainly more fun. Everything here is automated and run by computers. The raw materials go from silos into dough barrels. I then add the caramel aroma, coconut or bran by hand. It depends on the type of biscuit I’m making. It’s a great job. I just miss my former colleagues.” Erwin is back working as a pastry cook ᾢ now in a factory.

Providing information and enthusing staff, inviting former staff to discuss their experiences post-TNT and, where possible, organising interviews and making deals has partly addressed the second issue of staff’s self-confidence. Realising that there are various groups of employers who are attracted to their skills, or that they have the necessary skills to start their own companies, has helped ease the minds of many of those who were insecure.

‘I enjoyed working at TNT Post,
but I wanted to stay in Schagen’

Gé Verhoeven (48) Schagen

“Our department was being relocated to Groningen in the north of the country, which was simply too far for me. I live in Schagen and wanted to stay there. I applied for a job at the justice department in Alkmaar and, to my surprise, was taken on immediately. To be honest I would have preferred to stay at TNT Post. After all, I had worked there for 31 years and still really enjoyed it. But I made my decision and am delighted to have found a job so close to home so quickly.”

Not all staff, however, have expressed an interest in the positions suggested through the labour market scans. With ‘employee seeks job’, TNT assists employees who are willing to leave but are uncertain or need help through internal testing programmes that determine where they might best find follow-up employment. This is supplemented by job interview training, specific job training and preparation for departure. As with all voluntary departures of staff, these employees also receive the backpack to assist in the transition period.

Remaining challenge

Despite all efforts, targets for reducing staff numbers have not been met to date and those who have left stem from a relatively flat demographic group. The result is that the remaining staff’s diversity mix is declining. With many of the part-time staff having departed, mainly full-time staff remain, reducing the flexibility within the organisation. Another large group is those over the age of 50 who feel a large distance to the job market. Finding appropriate employment for this latter group is proving particularly challenging, especially considering the group needs greater security to meet its commitments. It is also closer to retirement and, after a considerable employment record at TNT, enjoys salary levels that in many cases are clearly above market average.

In the meantime, the TNT Mobility department continues to seek out new ways to make its excess staff attractive to the labour market.

TNT is currently investigating the options for solving the remaining issues in consultation with the Works Councils and through external channels. Unfortunately, the bottom line is that the target for workforce reduction is nearing and TNT may yet have some tough decisions to make.