The importance of employee engagement in infrastructure
Employee engagement is crucial for any business strategy as it drives higher productivity, innovation, and overall organisational performance. In the infrastructure sector, engaged employees are more likely to contribute to sustainable practices and these high engagement levels foster a positive workplace culture, reduce turnover and attract top talent.
According to a 2023 study by management consultancy Gallup, companies in the infrastructure sector with highly engaged employees experience a 21% increase in productivity and benefit from a 41% reduction in absenteeism compared to those with lower levels of engagement. This is especially important to the sector where project timelines and consistent labour are critical.1
At Igneo Infrastructure Partners, we believe the infrastructure industry is key to global efforts in the net zero transition. Central to this philosophy is our "Five Minimum Standards" which we have developed to engage with all our portfolio companies, and aim to implement following our initial investment in the businesses.
Nordion Energi overview
- Location: Europe
- Sector: Gas Distribution and Transmission
- Risk Classification: Regulated
- Initial Acquisition Date: Apr 2018
- Governance: Sole
- Website: www.nordionenergi.se/en
"Companies in the infrastructure sector with highly engaged employees experience a 21% increase in productivity and benefit from a 41% reduction in absenteeism compared to those with lower levels of engagement."
These standards include health and safety; GHG emissions; diversity; good governance and employee engagement.
Employee engagement can often be viewed as an afterthought while management remains focussed on revenue growth and profitability. However, a company is only as good as the sum of its parts and strong employee engagement is integral for infrastructure businesses to succeed over the long-term.
The five minimum standards are critical to the success of all of our portfolio companies. Igneo encourages portfolio companies to conduct regular employee surveys that effectively integrate feedback into company operations and support professional development. We believe this approach enhances company performance post-acquisition, supports long-term value creation, safe service delivery, and promotes a positive global impact.
Case Study: Nordion Energi's strategic engagement initiatives
Nordion Energi was formed through the merger of three companies owned by Igneo; Swedegas (2018), Weum Gas (2018) and Falbygdens Energi (2021). It operates Sweden’s sole gas transmission network, as well as gas and electricity distribution networks in the southern and western parts of the country. It has set itself an ambitious goal to become the first gas grid operator in Europe with 100% green gas by 2030. To help achieve this, the business has developed a series of industry-leading initiatives and is at the forefront of initiatives in biogas, carbon capture and storage (CCS), and hydrogen.
The company's vision and drive to reach its net zero goals requires attracting and retaining exceptional talent, while nurturing a strong work culture. With just over 100 employees, Nordion Energi's workforce is split between infrastructure operations, maintenance, and business services roles. Guaranteeing each member of the team feels heard and valued can be challenging for any business, no matter the size or structure, but it remains an important area to uphold for any company.
Transforming employee feedback processes at Nordion Energi
Historically, Nordion Energi used a comprehensive but lengthy employee engagement survey. It took time to analyse the results, address feedback, and implement an action plan based on the issues flagged.
With guidance and support from Igneo, Nordion Energi transitioned to an AI-driven platform named "Winningtemp", which conducts weekly pulse surveys to assess employee sentiment. This innovative approach has led to a significant participation rate of 96%, and within the first nine months, the company received 616 comments, addressed 251, and maintained a "temperature score" of 7.7/10, surpassing the industry benchmark.
Example of one of the weekly employee “pulse surveys”
This enhanced employee engagement strategy not only helps address challenges more efficiently but also contributes to a stronger, more resilient workforce. For a company facing the unique challenges of the gas industry, such as fluctuating market prices, stringent environmental regulations, and the transition to renewable energy sources, these improvements are essential to maintaining long-term operational excellence.
"Igneo encourages portfolio companies to conduct regular employee surveys that effectively integrate feedback into company operations and support professional development."
Driving industry advancement with employee-centric approaches
Nordion Energi's success story highlights the value of Igneo's investment principles in driving better performance across a business. Targeted enhancements in employee engagement can drive sector-wide transitions. By prioritising the well-being and involvement of employees, companies can unlock their full potential, leading to a more sustainable and profitable future.
The collaboration shows that when companies invest in their workforce, they are not just improving their workplace culture and talent retention, but also contributing to a larger movement towards a greener, more sustainable world.
Important information
All data sources are independently verified and can be evidenced by Igneo Infrastructure Partners.
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