The review below is a summary of the Annual Report 2001.
Review of the director general
Jorma Rantanen, Director General
The rapid changes occurring in work life put great pressure, among other things, on the workers’ professional skills and competence. Completely new professions arise and old ones disappear. The new qualification and competence requirements are manifold as regards the theoretical background of professional skills, practical skills and new working methods. People must cope with changes in their work contents, with new work organizations and work cultures, as well as master new skills, such as social interaction and language skills alongside the numerous basic skills. And learning is not a one-off event; the constant changes require lifelong learning. The Expert Committee of the European Union has estimated that when some 22% of the workforce changes during the next 10-year period, about 98% of the knowledge capital will change at the same time. In practice, this means the total renewal of knowledge capital at 10-year intervals.
Quantitatively, Finland has invested exceptionally in the training of the labor force. The investment in the education of the younger age groups has been significant, and their level of education is among the highest in the world. On the other hand, the low level of education of the older people is a problem, as more than half of all over 50-year-old employees have only basic-level education, and this sets certain limits for further education. However, in international comparisons Finland has been active in training the labor force – over 50% of the wage earners participate in some kind of employer-sponsored training every year. According to a questionnaire survey carried out by the Finnish Institute of Occupational Health, more than 80% of working people reported the need for further education, and 53% stated that they had learnt substantially new skills during the follow-up year (2000).
Training and competence affect crucially the worker’s ability to tolerate stress and to cope with his/her work. It has been shown in several studies that the lack of competence is one of the most important factors causing stress; it increases the risk of social exclusion even more than health problems, and competence problems play an important role in a person’s incapacity for work. There is also a strong evidence that the development and updating of competence through training increases the perception of better coping with work, and promotes work ability and well-being at work.
Especially in the new economy, knowledge capital, or human resources at large, have become an important production factor. Two noteworthy observations have been made: the value of human resources in the capital stock of the whole organization is considerably higher than has been estimated earlier, and in the long run it grows faster than the material capital. For example, studies carried out in Germany show that the value of human resources has tripled compared with the material capital during the second half of the last century.
According to an American corporate study, the training investments directed at human resources increase the company’s productivity considerably more than a corresponding increase in material capital or working hours. The importance of human capital will grow further as we move towards an information society.
In one of the projects of the National Programme on Aging Workers, the Finnish Institute of Occupational Health has, together with four other training institutions, offered training on age management for managers and foremen. An essential part of the training deals with skill development and supporting the learning of the employees and supervisors. The most recent training projects have benefited from modern studies on education. Learning in adulthood and on-the-job requires methods that differ from traditional ones: theory should be linked smoothly with practice, and special attention should be paid to the overall mastery of the work, as well as to the theories on motivating adult learners. The benefits of learning should be pointed out, and in addition to individual learning, group learning should be included in the training. The prerequisites for learning should be ensured, and learning should be supported also in every-day situations and integrated into daily work routines. The Internet pages on aging workers and workers’ health promotion support the application of theory into practice. If all these aspects are taken into account, the learning results will partly even exceed the expectations, and the positive influence of learning on the work output can be clearly demonstrated. This has already been demonstrated in long-term projects carried out in the wood-processing industry.
In the coming years, the training challenge concerns not only aging workers, but the forthcoming generation change-over will also trigger an unforeseen replacement of employees when the large age cohort retires. It is important that young people entering the labour market acquire already at school the knowledge, skills, expertise, values and attitudes that support a successful work career. The transition from school to work life is therefore crucial. Despite the fact that research findings and practical experiences highlight the importance of the transition period to a successful work career, the prerequisites for its success and the learning processes related to it have been studied relatively little. According to the UNESCO Commission chaired by Mr. Delors, we learn the basics at school, in work life we learn to live in the work community, and young persons learn to live like adults in general. When young people are learning to learn, the significance of the transition period is especially important in many ways, because in this phase of life they become individuals who gradually move from the influence of their home and school, and start to be independent actors in their work career.
During the past 20 years, the Finnish Institute of Occupational Health has strongly invested in the promotion of the work ability and of aging workers. Now, however, it is time to bring alongside this sphere of study the investigation of the factors behind the participation of young people in the workforce. This is important not only from the human point of view, but also from the viewpoint of work life as a whole. When the threat of labor shortage is imminent, it is important to take care that older as well as young workers are encouraged to participate in work life as fully as possible. When it comes to work-related training and education, We have every reason to believe that training connected to the work is the best investment for the future from the viewpoint of the young people, the enterprises, as well as the society.
Annual Report 2001
As in several previous years, the year 2001 at the Finnish Institute of Occupational Health came to end under positive circumstances. The slowing up of economic growth in Finland was not yet reflected in the demand for the Institute’s services. The gross national product (GNP) of Finland grew only 0.7% due to the economic slump abroad, especially in the United States. The number of unemployed nevertheless fell by 15,000 persons. The unemployment of both aging workers and especially of young persons under 24 years of age decreased considerably.
Work life and productivity moved more than ever in the direction of the information society. The development of the information society progressed more slowly than anticipated, but the export of information technologies and electronics remained the biggest export branch in Finland, and represented more than 30% of all exports. The development of the traditional manufacturing industry was more stable than that of the new technology but it became increasingly information-intensive. In several branches of industry, many of the traditional work environment risks are still present. According to the survey of Finnish work life in 2000, as many as 63% of the employed labor force are still exposed to physical hazards in their work, 42% to chemicals, and 8–13% to biological risk factors. Some 70% of the workforce have problems arising from poor ergonomics. Especially symptoms in the neck and shoulder region and upper limbs are increasing among the workforce.
Compared with the European trends, it seems that in Finland increased haste at work has leveled off, with the exception of the social and health services. Ergonomic problems are still surprisingly common, and stress and burnout are more prevalent in Finland than in the EU countries on average. This can be explained partly by differences in the recognition of these problems.
Accidents at work measured by accident density, remained at the level of the year 2000, but in the construction branch the risk had clearly risen. The number of cases of occupational diseases fell just under 5,000 cases, but strain injuries remained a growing problem.
The Ministry of Social Affairs and Health issued its new social policy strategy up to the year 2010, in which the promotion of work ability and the attractiveness of work life are central objectives. The purpose is to extend the workers’ participation in work life by 2–3 years by the year 2010.
The activities of the Finnish Institute of Occupational Health to improve the work ability of aging workers, training in age management and the well-being of social and health service personnel were in line with the strategy of the Ministry. The management of change was supported by the following action programs: Human Aspects of Work in the Information Society, Human Resources for Work, and Learning Work Organizations – Innovativeness and Information Technology. In addition, the Institute made preparations to support the transition of young people from school to work life with the action program on Youth and Work.
The year 2001 continued a trend which showed that traditional work environment problems coexist with the problems typical of the so-called new economy, i.e. work stress, coping and competence problems, even in the same organization. This extends the scope of action of the occupational health service and safety system presently in transformation.
The Ministry of Social Affairs and Health was undertaking two major legislative reforms concerning occupational health and safety in 2001. The working group preparing the amendments to the Act on Occupational Health Services (OHS) submitted its report to the Ministry at the beginning of 2001. The amendments to the Act clarify the tasks, contents and practices of OHS in the rapidly changing work life, and emphasize the quality and impact of the services. The reform is directed especially at the new demands to OHS brought by the new types of work contract. Regulations on occupational health services were prepared in 2001, and training was arranged to aid in the implementation of the legislation. Similarly, the working group preparing the amendments to the Act on Occupational Safety continued its work in 2001, and completed its report by the end of the year.
Promotion of occupational health
The activities of the FIOH were directed at three main target areas, and carried out with several action programs. The promotion of occupational health is still the most important activity as rated by the input, and 50% of the Institute’s resources were directed to this effort.
Several important research reports were published in the area of occupational health. For example, the study on occupational mortality in Finland was significant both nationally and internationally, as regards methodology as well as occupational health in general. Similarly, the research on the number of cases and the prognosis of work-related respiratory diseases was important from the viewpoint of occupational heath care and disease prevention.
The Department of Research and Development in Occupational Health Services was founded at the beginning of 2001. The development and training needs related to OHS were the key activity of this new department. The department also had an important role in the preparation of the legislation on occupational health services.
Improvement of the work environment
36% of the FIOH work time input was devoted to the development of the work environment.
Risk assessment and training were developed actively, as before. Training was arranged in the risk assessment of chemicals, and risk assessment methods were prepared for different peacekeeping operations. Assessment methods were created also for other than traditional risk factors, especially for psychological strain. Two new action programs were launched in 2001: the program on the Work Environment 2005, and the program on Wood Dust. The Wood Dust program focussed on the toxicity of various wood dusts, and surprising differences were found in the biological effects of different kinds of wood.
The effects of several other chemical, biological and physical risk factors on the work environment were also studied.
Development of work organizations
The development of work organizations took up some 15% of the Institute’s work time input, which was a slight relative increase.
Two action programs on the development of work organizations were going on. Surveys on work organizations were completed under the Action Program on Learning Organizations – Innovativeness and Information Technology. Several reports were published on the development practices of work organizations, the learning process, temporary employment, and the relationship between the functioning of the work community and the well-being of health service personnel. The Program ended at the end of 2001. The Program Decent Work – A Sound Life continued the projects initiated under the Human Resources for Work Program. Research was channeled from burnout to the study of resources that help people to cope at work. The prevalence of burnout and its different types was studied in various occupational groups.
Research
Altogether 39% of the Institute’s work input was used for research.
Over FIM 40 million, i.e. about 30% of the costs of research, were obtained from external funding sources. The research outputs decreased slightly from the previous year, but remained on a high level.
The research process was analysed with the aim to renew the instructions and guidelines for conducting research. The systematic development of the training and education of researchers was continued. The FIOH participated in the work of graduate schools of universities by supporting them directly, and by sending young researchers for training. Altogether 8 doctoral dissertations were presented during the year.
The Institute participated in the activity of two EU Topic Centres of the Bilbao Agency for Safety and Health at Work and continued to get grants from EU research programs. The Institute coordinated a large project on Good Practices, which is being carried out in cooperation with several research institutes.
The research facilities of the Department of Occupational Medicine and Department of Physiology improved considerably, when the renovation of the Institute’s old building was completed. The delay in the completion of the renovation work and the move to the new facilities decreased the research output, but the benefits of the modernized premises will be seen in the near future.
Services
Services took up 40% of the Institute’s work time input. Most of the services dealt with occupational health and work ability, as well as the work environment. The share of services relating to work organization development was considerably smaller. The income from services grew during the year, and the output of most services exceeded the expected volume. The growth in the demand for services in occupational hygiene and the work environment was especially positive.
The quality system for services was developed, and several service analyses were accredited. A notable proportion of the Institute’s laboratory services apply quality systems and are accredited. The intention is to further develop this activity selectively and according to the estimated need.
Training
Training used some 11% of the FIOH work time input. Most of the training was dealt with work organization development, whereas in the area of the work environment the share of training was considerably smaller. The income from training grew in 2001. The numbers of participants, trainee days and courses increased by over 10% from the previous year. The training concentrated strongly on improving the basic skills and expertise of occupational health and safety personnel. As a part of the National Program on Aging Workers, a program to improve the leadership skills of the supervisors of aging workers was continued together with four other training institutions. Training concerning the reform of the Occupational Health Service Act was offered to over 1,000 persons.
Preparations were made to start the activities of the National Training Centre for Occupational Health, Safety and Work Life at the beginning of 2002. Plans were made to renew the training targeted at various specialists, and the Institute took part in the development of a virtual university of occupational health, and telematic training.
Information
The dissemination of information covered some 10% of the Institute’s work time input. The volume of this activity decreased slightly, but the contents were developed significantly. The electronic dissemination of information at the Institute was strongly developed in the direction of web services, so that users can access larger and larger thematic entities via Internet. In addition, the dissemination of information on the action programs channeled the information activities to the most central topics of work life. Many new publications were also published, as previously.
At the international level, the main forms of activity were the publishing of the African Newsletter and the Asian-Pacific Newsletter. Both publications were continued in collaboration with the ILO. A similar newsletter was also published in the Barents Region.
International cooperation
The EU Twinning project between Finland and Estonia, started in August 2000, was continued in 2001. The aim of the project is to support Estonia towards meeting the accession criteria of the European Union set for the candidate countries in the area of occupational health and safety. Its main elements are: expert training, development of the occupational health service infrastructure, and development of the Estonian Occupational Health Center to coordinate the services, and equality issues in work life. The collaboration with the World Health Organization (WHO) was continued within the Network of WHO Collaborating Centres. The Fifth Network Meeting was organized in Chiang Mai, Thailand, and the Institute contributed actively to the preparation of the working plan, and later in its implementation. The Institute’s specific sphere of competence is the development of surveillance indicators and country profiles together with the other members of the Network.
Prerequisites and resources
The prerequisites of the entire Institute’s activities were significantly improved with the renovation of the old premises. The renovation project fell behind schedule, and some problems were encountered in the start-up of the building. However, these problems were overcome by the end of the year.
For the first time, the acquisitions budget was raised to the target level with the aid of a supplementary acquisitions budget. This improved considerably the chronic deficit in acquisitions of the previous years.
Cost-effectiveness
Half of the Institute’s activities were directed at the strategic target areas and the other half were customer-oriented. The strategic goals on outcomes set down in the agreement with the Ministry of Social Affairs and Health were attained, and the outcome level set forth to the Parliament in the budgetary frame was exceeded. The main handicaps to the Institute’s activities were the above-mentioned delays caused by the moving, the growing workload of the Institute’s key persons, the low salary level in comparison to the public sector on average, and the new growing demands for the personnel’s professional skills. Despite this, the work atmosphere improved, and sick leaves as well as cases of early retirement were clearly below the comparable national and sectoral level. As the economic return was, despite its sparsity, in balance, the year 2001 can be considered successful for the Institute.