5.1

Personnel

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

  1. Planning of recruitment needs: provision of reliable information about on-the-spot and forecast labor force needs of the Company to achieve the goals;
  2. Well-planned and timely recruitment;
  3. 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 lifesty

Staff structure and size

Changes in average headcount in 2015 were mainly triggered by hired production personnel (incl. employees, for connection-related in-house operations), irrespective of administrative personnel downsizing.

Staffing level is one of best indicators to represent labor force quality. It is maintained by the Company at a quite stable and high level (97%) for the last three years.

Staff category structure is ordinary for energy transmission companies and is quite stable for the last three years: workers represent 49% of total headcount, specialists/clerks and directors contributing 35% and 16% respectively.

Age category structure is also stable. Employees of “25-50 years old” group (most active and qualified) keep on growing in numbers for the last three years.

Young specialists (under 25) tend to reduce in numbers during 2013-2015. Shares of employees of “over 50 (till retirement)” and “working retirees” groups demonstrated a slight YoY reduction and increase respectively. Average age underwent no changes on 2014 and totaled 41 years old.

Both in 2014 and 2015, the staff is characterized by a considerably high qualification level: 84% of employees have professional education. Analysis of education structure shows a reduction of employees with secondary professional education and a rise of employees with higher education. For the purposes of qualification and professional level enhancement hiring preference is given to candidates with core professional education.

Drilling and further training

Drilling and further training of the Company’s staff are regulated by the bylaw on personnel education. Training activities were conducted in 2015 to cover the following aspects:

  • On-site training for production personnel;
  • Compulsory outsource training, incl. corporate education center;
  • Additional drilling and training programs for all categories of personnel, initiated by the heads of structural units, HR unit and employees themselves.

7,876 employees underwent drilling, training and retraining in 2015, with 6,393 employees or 43% of total headcount trained of-the-job by outsource training providers and corporate education center. Production employees predominate over other categories in the structure of trainees due to the specificity of operations and drilling objectives.

IDGC of Urals (ОАО) also actively cooperates with higher and secondary educational institutions to educate specialists, train or retrain employees as well as to arrange student intern programs and engage student construction teams to Company’s facilities. At present we have concluded 4 master cooperation agreements with profiled universities: Urals Federal University named after B.N. Yeltsyn, 1st President of Russia (Ekaterinburg), National Research University - South Urals State University (Chelyabinsk), South Urals State Agricultural University (Chelyabinsk), Perm National Research Polytechnic University (Perm). Besides, we have also enforced an agreement with the Urals Federal University named after B.N. Yeltsyn, 1st President of Russia, with regard to joint setting-up of “Electric Energy” department.

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 reserves, to be formed both on branch and HQ levels. Administrative pool provision rate totals 64% of all managerial positions. 7.4% of succession pool members were promoted to senior positions, 5.9% occupying target positions. 12% of youth pool were promoted to senior positions.

In 2015, 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). Evaluation revealed three groups of winners (one PU COO group, consisting of 12 persons, and two DZ Director groups, consisting of 36) who embarked on work in the year-end. The project will end in defense of graduation works and business role-playing game.

ВAs a part of external youth promotion, in 2015 the Company administered activities of student construction teams. Besides, young specialists participated in 2nd All-Russia Championship WorldSkills Hi-Tech-2015, conducted in the fall of 2015 at Ekaterinburg-Expo and VII Festival of Tyumentenergo Youth, conducted on Sep. 24-28, 2015 at Verkhniy Bor settlement.

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 program determines vital social projects, implementation steps and funding.

  • Private health insurance scheme Employees were provided with additional medical services under private health insurance schemes. All employees were insured against accidents and illnesses under the regulations on insurance coverage, adopted by the Board of Directors every year.
  • 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. 4,203 retirees collect non-state pension from the Company in addition to their state one.
  • Health treatment of employees and their children During 2015 915 employees and 900 children underwent health treatment in resort facilities, incl. facilities located along the Black Sea coastline.
  • State, industry and corporate awards 584 employees were awarded for best performance and contribution into promotion and improvement of the Urals grid facilities.
  • Corporate support in employee housing improvement In 2015 287 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 5.0 thous. 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. Several employees hit the top 10 best runners at Global Europe-Asia Marathon, conducted in Ekaterinburg in Aug.2015 for the first time ever.урге.
  • Privileges, guarantees and compensations, paid to employees in line with the collective agreement
  • Charitable programsя IDGC of Urals is a Welfare Territory (gathering of belongings, toys, etc.), Blood donation saves lives (blood donation activities), a Wish Tree (activities for kids from the Regional Oncology and Hematology Center).