The number of full-time employees amounted to 13 720 (14 318) at the end of December. The number of full-time employees in the global delivery centres totalled 6 334 (6 483), or 46.2% (45.3) of all personnel. In Product Development Services, the offshore ratio was 62.0% (60.2). In IT services, the offshore ratio continued to rise and stood at 43.8% (41.3) at the end of December.
During the full year, the number of full-time employees decreased by a net amount of around 600. Acquisitions and outsourcing agreements added around 300 employees and net recruitments around 100 employees while job cuts reduced the number of personnel by around 1 000. More than 300 of the job cuts were related to the 2013 efficiency programme, which was concluded in the first quarter of 2014. The 12-month rolling employee turnover stood at 10.5% (9.3) at the end of December. The average number of full-time employees was 14 007 (15 170).
Wages and salaries for 2014 were EUR 631.6 (674.0) million. In 2014, 72% (72) of personnel were male and 28% (28) female. Salary inflation was over 3% in 2014 and is expected to remain on that level on average in 2015. In offshore countries, salary inflation is clearly above the average. Markets like India may see double-digit salary hikes.
In 2014, Tieto accelerated its business transformation which was reflected in personnel-related planning. The company continued to retrain its employees and initiated recruitments for growth businesses while adjusting resources in traditional services. Continuous transformation is setting high demands on competence development and resource planning. Ensuring resources that support Tieto's strategic objectives is the current focus area for businesses and Human Resources.
In today's IT landscape, more and more intelligent services are offered from the cloud, with increased automation and standardization, and new types of roles arise while others disappear. From the competence and resource planning perspective this trend adds extra pressure on the company to develop existing competences and acquire new ones. To strengthen talent in growth areas, Tieto increased recruitments, for example, of data analysts, industry consultants, information architects and other experts for Customer Experience Management. More detailed information about the competence transformation and the related measures initiated in 2014 is available in the Company strategy section.
Tieto's development focus has started to shift from traditional individual driven training towards business driven sharing and collaboration. The company seeks to foster an Open Source culture, where all employees are encouraged to share, grow and learn – and thereby be prepared for the vast industry change. In 2014, a mentoring pilot was started to support this cultural aspiration to increase internal networking and individual development. The Accelerating Success programme continued in 2014 and aims at helping Tieto leaders to learn and establish new ways of working based on Neuro Science thinking. Around 200 employees participated in this programme in 2014.
The objective to become the employer of choice also supports Tieto's business needs. In the Nordic countries, there is a shortage of certain competences. Currently, the company's actions to attract new and retain existing talent include targeted messages to selected professional groups. Tieto also actively utilizes social media, both internally and externally, to promote its role as a preferred employer.
Tieto conducted its annual employee engagement survey in autumn 2014 with a high response rate of 89%. The results were two-fold, which is anticipated to reflect rapid change in both the business environment and the company. Overall results were strong in areas of empowerment and trust in leadership. However, in project management, Tieto still has room for improvement to empower managers to be successful. Generally, employees feel that Tieto currently has a strong customer orientation and they have good accountability for what they do. The results on strong leadership are good, given the fact that Tieto renewed its criteria on leadership to reflect the Open Source culture, and also to evaluate whether we are able to lead this organization through the change.
Tieto's short-term incentive structure was renewed during the year and it will be applied as from the beginning of 2015. Incentive renewal emphasizes overall individual performance, including success in living up to the company's Open Source culture. Additionally, the company made preparations for new long-term incentive programmes. Further information about incentives is available at www.tieto.com/Investors.