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    1. 5.1 Human resources management
    2. 5.2 Environment protection

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5.1 Human resources management

HR AND SOCIAL POLICY OF THE COMPANY

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.

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 guarantees as well as fostering performance safety and work culture.

STAFF STRUCTURE AND SIZE

The Company’s average headcount in 2018 totaled 15,461 (+4.8% YoYyear on year), the significant increase affected by staffing of the production departments in our Sverdlovenergo and Chelyabenergo branches due to assignment of the guaranteed supplier status (51-53).

Average headcount in 2016-2018 (employees)

 

Average headcount distribution in 2018, %

 

During the last three years the staffing is quite stable and at a rather high level (97%). Despite 1.5% reduction of the share of the “50yo+” group, the average age in 2018 added a little to total 42yo (41 yo in 2017). This was impacted, mainly, by gains in the “25-50yo” and “working pensioners” groups (+0.6 and 1.0 pct, respectively). The staff is characterized by a considerably high qualification level: 87.8% of employees have professional education (+2.3 pct in the last three years).

DRILLING AND FURTHER TRAINING OF THE PERSONNEL, LABOR POOL ACTIVITIES

Training is one of the Company’s HR policy priorities. Itinformation technologies is regulated by the Company’s Personnel Training Regulations and Rules of Personnel Training in Energy Sector Companies. The share of employees that underwent off-the-job drilling in the total average headcount is 62.1% or 9,604 employees. Itinformation technologies exceeds the target indicator of 30% (+167 employees YoYyear on year). Production personnel has the largest share among employees that underwent training – 95.4% (9,161 employees). The structure of the trained personnel (in terms of managerial and production personnel) is shown on the figure below:

 

The structure of the trained personnel, %.

 

The corporate educational facility (Educational Center of IDGCInterregional Distribution Grid Company of Urals) have trained, drilled and retrained 8,235 employees or 85.7% of all trainees, 98.2% of the trainees (or 8,088 employees) being production personnel.  Actual training expenses totaled RUBruble 84,225.58 thousand, RUBruble 65,325.21 thousand or 77.6% being spent on training provided by the corporate educational facility. In 2017, actual training expenses totaled RUBruble 80,569.72 thousand, RUBruble 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 (0.9% in 2017), corresponding with the key indicator from the HR and social policy set at 0.9%.

 

Share of employees with off-the-job training, Total training expenses / payroll ratio in 2018, %.

 

The Educational Center of IDGCInterregional Distribution Grid Company 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. The Educational Center of IDGCInterregional Distribution Grid Company of Urals has initiated a pilot project related to the conduct of qualification exams on WorldSkills Professional Training programs.

OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals was actively involved in the arrangement of the Corporate WorldSkills 2018 Championship. Facilities of the Educational Center of IDGCInterregional Distribution Grid Company of Urals hosted “Maintenance and Repair of RPArelay protection automation Equipment”, “Exploitation of the Cable Power Lines” and “Smart Metering” contests. In 2018, Yekaterinburg hosted the V All-Russia WorldSkills HiTech and I Eurasian WorldSkills Hi-Tech 2018 Championships. The Company and Educational Center of IDGCInterregional Distribution Grid Company of Urals prepared the employees for the contests, adjusted and improved ASOP-Expert database, constructed contest sites and consulted entities interested in the arrangement of WorldSkills Championships.

ОАО IDGCInterregional Distribution Grid Company of Urals also actively cooperates with higher and secondary educational institutions in the following core spheres: i) promotion of practice-oriented training; ii) drilling, training and retraining of Company’s employees; iii) career-guidance activities; iv) training process staffing; v) development and upgrade of training facilities; vi) innovative 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 HQheadquarters levels. In 2018, we have increased the headcount of our administrative and youth labor pool reserves. In 2018, the labor pool reserves consisted of 711 best-in-class employees. On the whole, the staffing level of the administrative labor pool reserve is 70.3% of all administrative positions. Youth labor pool reserve totaled 205 employees by the year-end.

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 (time management, modern methods of project management, workshops on laws, connection and tariffs). Besides, two members of the labor pool reserve participated in the Presidential training program (“Management. Strategy of Enterprise Management”), four members of the labor pool reserve participate in the master’s training program (“Management. Energy Sector Enterprise”). In 2018, 62% of senior positions (447 out of 723 positions) were in-house staffed, 12% of senior positions being staffed by the administrative and youth labor pool reserves (86 employees).

YOUTH POLICY OF THE COMPANY

In 2018, OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals was actively involved in the following youth outreach activities:

— schoolchildren: excursions to Company’s energy facilities, conduct of classes on electric safety, first aid, theory of Electrotechnics, career-guidance meetings, professional training classes (“Introduction to the Profession of an Electrician”), arrangement of PAOPublic Joint-Stock Company Rosseti’s School Olympiad in the Urals region.

— students: student brigade activities (examination of 0.4 kV aerial power lines, revision of their geographical coordinates, alignment of the topology with information from the information system “Commercial Metering”, drawing of 248 0.4 kV aerial power lines in the geoinformation system).

Students from colleges and universities were actively involved in industry and pre-degree internships (815 students). In 2018, the Urals Federal University hosted a ROBOCON hackathon on energy management, electric vehicles, smart home technologies, smart management systems, arranged for college and university students. Our technical directors became their mentors. South Urals State Agricultural University arranged a quest on electric safety.

Activities for young professionals included involvement of the Company’s employees in:

During the Youth International Economics Forum our two employees joined the PAOPublic Joint-Stock Company Rosseti’s representative team and reached the final stage of the forum. Besides, during the reported year the Company was in a very active cooperation with the Young Specialists Councils which included trainings, focused on team-building, development of personal and business qualities, and sport and social events.

SOCIAL RESPONSIBILITY

OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals’ collective agreement for 2018-2020 regulates social and labor relations between the employees, represented by the Council of Representatives of Primary Trade Unions in the person of Lev Grigoryevich Kuminov, and employer, represented by the OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals General Director Sergey Georgievich Dregval. The Company’s social policy is based on the principle of social partnership. The parties of the social partnership, on parity basis, deliver joint projects for the benefit of the employer and employees and share a joint control over implementation of the collective agreement.

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, adopted by the Company’s Board of Directors, 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. Corporate programs include a wide range of medical services provided by the best state, institutional and commercial medical institutions operating in Russia. Personal accident and sickness insurance guarantees insurance payouts to employees (relatives) due to loss of productivity, medical condition or death as a result of any accident. 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 AOJoint-Stock Company 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 2018 1,002 employees and 923 children underwent health treatment in year-round children sanatoriums and resort facilities.

State, industry and corporate awards

1,630 employees were awarded for best performance and contribution into development and improvement of the Urals grid facilities: state awards (3 employees), ministry awards (72 employees), ERA of Russia awards (48 employees), Rosseti awards (134 employees), Company’s awards (1,373 employees).

Corporate support in employee housing improvement

In 2018 460 employees obtained corporate support in housing improvement (compensation of mortgage interest) under the bylaw on corporate support in employee housing improvement.

Veteran activities

In 2018, a special attention was paid to the veterans of the Company. The Company has the Veteran Coordination Council to oversee and administer branch veteran councils. The Vet Coordination Council covers over 5,728 retirees of the Company.

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.

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. Power engineers of the Company took an active part in the sports events of the PAOPublic Joint-Stock Company Rosseti Group. OAOOpen Joint-Stock Company IDGCInterregional Distribution Grid Company of Urals arranged a basketball contest for the employees of the PAOPublic Joint-Stock Company Rosseti Group.

Our museum of the Urals energy sector participated in “A Museum Night” event for the 5th time. Power engineers arranged an interesting adventure game in the museum. Guests underwent various tests related to professional activities of the Company. The museum also took part in the History Fest and displayed a photo presentation on the Sverdlovsk GES and materials related to the history of the Urals energy sector. Besides, during the DUMP-2018 Conference (EXPO Center) and “The Spring of Your Career” event (Eltsyn Center) our employees prepared an interactive venue where they conducted experiments using laboratory devices from the museum collection.

In 2018, our museum received an award of the First All-Russia “Corporate Museum” Contest (Open Museum category) for the project related to preparation of a historical venue devoted to the Urals and Kama grids, as well as a special award of the Contest Expert Council for personal contribution of the museum employees into preservation and promotion of historical heritage of the energy sector.

Charitable programs

The core charity aspects of 2018 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. Promotion of volunteer services among employees traditionally occupies a special place in the charity practices.