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.

These goals of the Company’s HR policy are achieved by carrying out measures in various areas of activities and accomplishment of the set targets in:

• Organizational design;
• Staffing and employee development;
• Management of personnel performance efficiency (incentivization);
• Social benefits and quarantees;
• Fostering performance safety and work culture.

STAFF STRUCTURE AND SIZE

The Company’s average headcount in 2017 totaled 14,746 (-0.28% YoY). The decrease of the average headcount was affected by optimization of our administrative personnel, staff turnover, understaffing of temporary replacement positions.

Generally, the situation with Company’s personnel is stable: most of the Company’s employees (or 69%) comprise “25-50 years old” group, staffing is at a high level (97%) for the last three years, average age underwent no changes on 2016 and totaled 41 years old, staff turnover totaled 4%. The staff is characterized by a considerably high qualification level: 86% of employees have professional education. This indicator gained 2% during the last three years.

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 64% (9,437 employees). The share of trained production personnel is 95% or 8,936 employees. The corporate educational facility (Educational Center of IDGC of Urals) have trained, drilled and retrained 8,422 employees or 89% of all trainees, 97% of the trainees (or 8,160 employees) being production personnel. Actual training expenses totaled RUB 80,569.72 thousand, RUB 63,885.39 thousand or 79.3% being spent on training provided by the corporate educational facility. Total training expenses/payroll ratio totaled 0.9% during the reported period.

Educational Center of IDGC of Urals is one of the core educational partners 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.

IDGC of Urals (OAO) also actively cooperates with higher and secondary educational institutions in the following spheres:

• Promotion of practice-oriented training;
• Drilling, training and retraining of Company’s employees;
• Career-guidance activities;
• Training process staffing;
• Development and upgrade of training facilities;
• Innovative activities.

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, UrFU-based “Electric Energy” department was set up to implement practice-oriented educational programs (bachelor’s degrees) and improve training processes. In 2017 46 sponsored students attended the courses of the 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 pool reserves, to be formed both on branch and HQ levels.

In 2017 we have increased staffing of our administrative and youth labor pool reserves. The administrative and youth labor pool reserves consist of 731 and 239 employees, correspondently. On the whole, the staffing level of the administrative labor pool reserve is 69% of all administrative positions. In 2017 81% of senior positions were in-house staffed, 17.5% of senior positions being staffed by succession pool members. 8% of youth pool was promoted to senior positions.

In 2017, as a part of administrative pool promotion, the Company engaged succession pool members in activities fostering competences, required for target positions, sent them to competence-developing educational programs. As a part of external youth promotion, in 2017 the Company administered activities of student construction teams. Members of the construction teams performed logging operations (clearing of power line corridors and wood scrap utilization), also digitizing and designing power line schemes, generating week progress reports and performing other operations in Tariff and Connection departments.

Young professionals also took part in IV corporate festival related to celebration of 75th anniversary of Urals and Kama regional grids under the slogan “I am a STAR! I am a Superstar!”, International Forum for Young Power Engineers and Industrialist “Forsazh-2017” and National 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 AO NPF of Energy Sector 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. 3,500+ retirees collect non-state pension from the Company in addition to their state one.

Health treatment of employees and their children

During 2017 833 employees and 945 children underwent health treatment in resort facilities, incl. facilities located along the Black Sea coastline.

State, industry and corporate awards

1,308 employees were awarded for best performance and contribution into development and improvement of the Urals grid facilities: state awards (7 employees), ministry awards (84 employees), RaEl awards (51 employees), Rosseti awards (144 employees), Company’s awards (1,022 employees).

Corporate support in employee housing improvement

In 2017 413 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 5,541 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 2017 are: assistance in purchase of high-tech medical equipment for district hospitals, birth centers and oncology centers on the service area, assistance in treatment and rehabilitation of children with disabilities, support of culture, education and science.