Stakeholder
4.1

Human resources management

Key goals of the Company’s HR policy focused to achieve strategic goals of the Company and power grids are:

  • Planning of recruitment needs: provision of reliable information about on-the-spot and forecast labor force needs of the Company to achieve the goals;
  • Well-planned and timely recruitment;
  • Securing of personnel efficiency and labor productivity growth.

Key aspects of the policy are:

Organizational structure
  • Typification of organizational and functional structures;
  • Bringing of the structure in line with current needs and objectives of the Company;
Staff management
  • Securing of enhanced labor productivity;
  • Arrangement of organizational activities – centralization/decentralization of functions, optimization of functional processes;
Staffing and Development of the Personnel
  • Planning of unified present-day and future recruitment needs;
  • Promotion of mobility programs to staff units in labor-deficient areas,
  • Labor pool management;
  • Generation of unified qualification requirements determined by position and type of activities;
  • Development of personnel training and retraining system with a potentially wide usage of regional educational centers and flexible educational technologies;
  • Strengthening of cooperation with leading Russian educational institutions (secondary and tertiary level of education and further education);
  • Rejuvenation of personnel, especially workers and engineers.
Management of performance efficiency (incentivization)
  • Determination of individual, adequate and measurable objectives and corresponding motivation schemes for employees;
  • Promotion of unified wage system, subject to regional specificity and competitive revenue level for similar positions across regions.
Social benefits and guarantees
  • Promotion of social partnership with trade unions;
  • Promotion of social protection and corporate support programs;
  • Promotion of social and cultural programs – support of labor dynasties, creativity competitions, mass cultural events, charitable acts as well as projects promoting physical culture, sport and healthy lifestyle.

STAFF STRUCTURE AND SIZE

Average headcount in 2014-2016

14 85014 80014 75014 70014 6500 2014 14 713,7 2015 14 805,7 2016 14 787,8
The Company’s average headcount in 2016 totaled 14,787.8 employees (-0.12% YoY). The decrease of the average headcount was affected by optimization of our administrative personnel. Staffing is maintained by the Company at a quite stable and high level (97%) in the last three years. Average age underwent no changes on 2015 and totaled 41 years old.

Branch distribution of average headcount in 2016,%

Most of the Company’s employees (or 69%) comprise “25-50 years old” group. In the last two years employees of “over 50 (till retirement)” group demonstrate a slight YoY reduction (-1% YoY). The staff is characterized by a considerably high qualification level: 85% of employees have professional education. This indicator gained 1% in the last three years.

Age structure in 2014-2016, %

5 6 2015 6 2016 2014 4 69% 5 22% 67% 22% 66% 5 23% under 25 25-50

Education structure in 2014-2016, %.

2015 2016 2014 16% 19% 26% 37% 2 0% 16% 18% 25% 38% 3 16% 18% 25% 39% 3 0% 0% Higher doctorate Candidates of sciences University degree in 2 and more professions Higher professional education

DRILLING AND FURTHER TRAINING OF THE PERSONNEL

Training is one of the Company’s HQ policy priorities. It is regulated by the Company’s Personnel Training Regulations and Rules of Personnel Training in Energy Sector Companies. The share of employees that underwent of-the-job drilling in the total average headcount is 53.8% or 7,957 employees (+0.6% or 81 employee on 2015). The share of the production personnel is 95% or 7,562 employees (94% in 2015). The structure of the employees who underwent drilling (administrative and production personnel) is presented in the figure below.

The structure of the employees who underwent of-the-job drilling in 2016 (category breakdown).

The corporate educational facility (Educational Center of IDGC of Urals) have trained, drilled and retrained 6,286 employees or 79% of all trainees (-2% YoY), 97.4% of the trainees (or 6,120 employees) being production personnel.

The core suppliers of educational services, besides the corporate educational facility, are St. Petersburg Energy Institute of Further Training, Rostechnadzor and Urals Federal University named after B.N. Yeltsyn. Total training expenses totaled RUB 80,858.06 thousand, RUB 62,657.65 thousand or 77.5% being spent on training provided by the corporate educational facility. In 2015 total training expenses totaled RUB 71,099.44 thousand, RUB 56,127.22 thousand or 78.9% being spent on training provided by the corporate educational facility. Total training expenses/payroll ratio totaled 0.9% during the reported period.

The share of the employees who underwent of-the-job training and Training expenses/Payroll ratio during the reported period,%

70,060,050,040,030,020,010,00 Sverdlovenergo HQ Permenergo Chelyabenergo Total 38,1 3,4 60,3 55 54,3 31,9 46,5 42,5 54 41,8 0,7 1,0 0,7 1,0 0,9 Employees trained, % Trained by corporate educational facilities, % Training expenses/Payroll, %

Educational Center of IDGC of Urals is the core educational partner offering over 300 licensed programs for drilling, training and retraining in various spheres to satisfy Company’s requirements in drilling of workers, clerks and divisional managers. The Educational Center has own training areas equipped with lifting devices, gas metal-arc welding, substation and power line simulators.

IDGC of Urals (ОАО) also actively cooperates with higher and secondary educational institutions. At present we have concluded 4 master cooperation agreements with profiled universities: Urals Federal University named after B.N. Yeltsyn (Yekaterinburg), National Research University - South Urals State University (Chelyabinsk), South Urals State Agricultural University (Chelyabinsk), Perm National Research University (Perm). Besides, we have also enforced an agreement with the Urals Federal University named after B.N. Yeltsyn with regard to joint setting-up of “Electric Energy” department. We have concluded cooperation agreements with secondary educational institutions: Yekaterinburg Energy College, Chelyabinsk Energy College and Perm Chemistry and Technology College.

LABOR POOL ACTIVITIES

The Company actively participates in carrier planning of its employees with a view to replace and occupy positions with qualified workers, to provide staff with new practices and maintain their interest and drive. Regular training of employees, development of their professional and management competence, required for target position, is a part of labor pool activities.

Pursuant to the bylaw on labor pool activities, the Company has two types of labor pools – administrative and youth labor pool reserves, to be formed both on branch and HQ levels. In 1H 2016 we reshuffled our administrative labor pool reserve (31 target positions: heads of the HQ units, branch directors, deputy branch directors, deputy branch chief operating officers). As of 31.12.2016 the administrative labor pool reserve consists of 670 employees. On the whole, the staffing level of the administrative labor pool reserve is 66% of all administrative positions. In 2016 7% of succession pool members were promoted to senior positions, 3.7% occupying target positions. 7% of youth pool was promoted to senior positions.

In 2016, as a part of administrative pool promotion, the Company launched its “School for Directors” project focusing on unique education programs: “Chief Operating Officer of a production unit” (PU COO) and “Director of a distribution zone” (DZ director). As a part of external youth promotion, in 2016 the Company administered activities of student construction teams. These student construction teams worked in units, liable for building and installation and repair (certification of equipment, preparation of executive documentation, etc.), and took an active part in the Company’s corporate activities. As of the year-end the youth labor pool reserve consists of 111 employees. Besides, young specialists participated in V International ENES 2016 Forum (conducted in 23-25 November 2016) and Corporate WorldSkills Championship.

SOCIAL RESPONSIBILITY

Social policy is one of the most important spheres and components of Company’s internal policy, designed to enhance social stability of employees through socially-oriented activities. Primary goals of Company’s social policy are:

  • Veteran, employee and employee family care;
  • Preserving of socially responsible corporate image to attract and retain highly-qualified staff;
  • Preserving of benevolent working environment;
  • Securing of post-retirement decent living.

The social program of the Company determines vital social projects, implementation steps and funding. The program includes the following aspects:

Private health insurance scheme

The Insurance Coverage Regulations state that each employee of the Company is provided with private health insurance scheme and personal accident and sickness insurance at the expense of the employer. Insurance coverage of the personnel is based on the integral private health insurance scheme, guaranteeing timely and high-quality medical and other related services. Personal accident and sickness insurance is active 24/7/365 all over the world.

Non-state pension schemes

The Company promotes non-state pension schemes under a contract with NPF of Energy Sector (OAO) and NPS program, approved by the Board of Directors every year. The NPS program was designed to secure post-retirement decent living of employees, to promote efficient HR solutions related to hiring, retention and motivation of employees. 3,684 retirees collect non-state pension from the Company in addition to their state one.

Health treatment of employees and their children

During 2016 926 employees and 772 children underwent health treatment in resort facilities, incl. facilities located along the Black Sea coastline.

State, industry and corporate awards

676 employees were awarded for best performance and contribution into development and improvement of the Urals grid facilities: ministry awards (55 employees), RaEl awards (10 employees), Rosseti awards (132 employees), Company’s awards (443 employees), awards from local authorities (36 employees).

Corporate support in employee housing improvement

In 2016 397 employees obtained various forms of corporate support in housing improvement under the bylaw on corporate support in employee housing improvement.

Veteran activities

The Company has the Veteran Coordination Council to oversee and administer branch veteran councils. The Vet Coordination Council covers over 5,350 retirees of the Company. The Company conducted a range of activities for veterans: administration of creativity clubs for veterans; financial support; health treatment for veterans; excursions to new facilities for veterans, etc.

Activities for employees and their families

The Company arranged Olympiad-like competitions among employees to promote healthy life-style and sports and to form corporate teams for industry, regional or municipal Olympiad-like competitions. 50% of employees have taken part in such corporate and Olympiad-like competitions during the reported period.

Privileges, guarantees and compensations, paid to employees in line with the collective agreement

Death gratuity payment, disability benefits, compensations paid to children of the perished workers, etc.

Charitable programs

The core charity aspects of 2016 are: arrangement of benevolent conditions for orphans and children without parental care, assistance in treatment of children with cancer and in provision disabled children with required assistive technologies and devices in the Sverdlovsk, Chelyabinsk and Perm regions.

ЦЕНТР ЗАГРУЗКИ
Здесь вы можете скачать полный отчет 2016, отдельные главы в формате PDF и наиболее важные таблицы в формате Excel.
1About company
1.1Mission and strategic goals
1.2Market share
1.3Key 2016 events
2Board of directors’ progress report
2.1Letter to stockholders
2.2Production capital formation
2.2.1Network exploitation
2.2.2Electricity transmission
2.2.3Technological connection
2.2.4Development of telecommunications and IT systems
2.2.5Investments
2.2.6Innovations
2.2.7Efficacy enhancement
2.3Financial capital formation
2.3.1Analysis of revenues and expenses
2.3.2Analysis of financial standing
2.3.3Analysis of receivables and payables
2.3.4Analysis of credit portfolio
2.3.5Description of tariff policy
3Corporate governance
3.1Corporate governance practices
3.2Corporate governance system
3.2.1General meeting of stockholders
3.2.2Board of Directors
3.2.3Board of directors’ committees
3.2.4General director and executive board
3.2.5Remuneration and compensation policy
3.3Oversight system
3.3.1Board of internal auditors
3.3.2Independent auditor
3.3.3Internal control
3.3.4Risk management
3.3.5Security and anti-corruption
3.4Investor and stockholder relations
3.4.1Shareholder capital structure
3.4.2 Shareholder rights
3.4.3The company and stock market
3.4.4Communications with market participants
3.4.5FAQ
3.4.6Allocation of profit
4Stakeholder
4.1Human resources management
4.2Customer support
4.3Supplier relationship management
4.4Public and goverment relations
4.5Environment protection
5Appendices
5.1Prepared under Russian accounting standards
5.2Prepared under international financial reporting standards
5.3Related-party transaction report
5.4Corporate governance code compliance report
5.5References
5.6Abbreviations and acronyms