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The Company consistently improves its existing personnel management system and creates a competitive and safe working environment for its employees by implementing new workspace management technologies and ensuring effective employee recruitment, onboarding, and development processes.

The Company’s personnel management priorities are detailed in its Development Strategy.

Personnel Structure and Headcount

Over 98.8% of Metalloinvest’s employees work in the Belgorod, Kursk, and Orenburg Regions, where the Company’s main assets are located. The total headcount at Lebedinsky GOK, Mikhailovsky GOK, OEMK, and Ural Steel was 48,500 employees as at the end of 2017, up by 0.9% year-on-year.

Personnel structure by enterprise
people
Personnel structure by gender
people

Personnel structure in 2017 by category
%


 

Personnel Recruitment

Newly hired employees by enterprise
people

Metalloinvest opts for in-house recruitment, including for senior executive roles, giving preference to candidates from the regions where it operates.

In 2017, 8.1% of the newly hired employees at the Company’s key enterprises were young specialists.

Work with Educational Institutions

To recruit young specialists (under the age of 35), the Company actively cooperates with specialised higher and vocational educational institutions. More than 15 educational institutions in the regions where the Company operates are among its long-standing partners. Metalloinvest offers students internship programmes with the opportunity of permanent employment. Young specialists, having completed an internship and mastered the specifics of Metalloinvest’s operations, are a valuable addition to the Company’s talent pool, who generally soon become highly-qualified professionals.

In 2017, Metalloinvest cooperated with educational institutions on the following projects:

  • Commissioning of a new electrical engineering lab at Oskol Polytechnic College, part of the Stary Oskol branch of the National University of Science and Technology MISiS. The lab includes both an electrical maintenance workshop and a measuring equipment and automated systems workshop used by students attending the relevant courses. The corporate stage of the Best Repair and Maintenance Electrician vocational skill competition was held in the lab in June 2017
  • At OEMK, on-the-job training was provided to the faculty members of the National University of Science and Technology MISiS and the Stary Oskol branch of MISiS, to help them augment their theoretical knowledge with practical skills and provide a higher-quality education to their students
  • A nationwide vocational skill competition for Technology of Materials students (wider skillpool group 22.00.00) was held by Zheleznogorsk Metals and Mining College, sponsored by Mikhailovsky GOK.
Alevtina Chernikova
Rector, National University of Science and Technology MISiS (NUST MISiS)
Metalloinvest and NUST MISiS have a long history of successful cooperation not only in Moscow, but also in other Russian regions that are key to the Company. We jointly develop and run educational programmes, organise internships and on-the-job training for students, conduct research, and implement socially significant projects.
The partnership between Metalloinvest and MISiS contributes to the efficient development of Russia’s metals industry while enabling a pipeline of engineering and research talent to support the needs of the future economy.


Personnel Development

Employee enrolment in major Corporate
University programmes in 2017
%

The Company’s Regulations on Personnel Corporate Training and Development have been in effect since 2016. In line with the Regulations, the Company’s corporate training and employee development framework aims to ensure a systemic approach to the set-up of training process and evaluation of its performance. The Company’s training system covers all employee levels, from senior management to workers.

The Company’s Corporate University launched its first training programmes in 2016, and more than 800 employees participated in these programmes in 2017.

In 2017, the Company’s total personnel training costsIncludes only Lebedinsky GOK, Mikhailovsky GOK, OEMK and Ural Steel were RUB 100.5 million (RUB 2,200 per employee), a 33.2% increase year-on-year.


Training costs*
Metric 2013 2014 2015 2016 2017
Training costs, RUB million 40.83 49.74 46.88 75.47 100.5
Number of employees trained 34,898 31,696 30,631 35,046 37,188
Cost of training per employee, RUB 1,170 1,569 1,105 1,727 2,160

Average annual training hours per employee by employee category, man-hours*
2014 2015 2016 2017
Workers 70 74 27 30
Specialists 41 44 54 45
Top and line managers 20 17 35 12

In 2017, training in the areas of occupational health, industrial and environmental safety, professional training, retraining, skills development programmes for workers, and programmes for mastering a second (related) blue-collar trade were run at the Company’s enterprises.

Metalloinvest also invites external experts to host educational events such as workshops, training sessions, and forums which are offered for free to employees across all operations to facilitate the development of their professional and managerial skills, while financial aid is also provided to employees wishing to improve their level of education.


Incentives and Motivation

Remuneration system
Harmonisation of compensation practices
Non-financial incentive system


Employee Engagement

The third anonymous engagement survey was carried out across Metalloinvest’s enterprises in 2017, with a total of 28,400 employees participating (25,600 employees in 2015). The survey showed that Metalloinvest enjoys a stable and high level of employee loyalty: 77% of employees are ready and willing to remain working for the Company for the long term, 76% are ready to recommend Metalloinvest as a good employer to their friends, and 72% are proud to be part of the Company. Around 55% of employees are ready to make extra effort and take on tasks outside of their regular duties.

The positive employee engagement and performance trends are due to the Company’s efforts in addressing the areas for improvement identified following the 2015 survey. Eight Company-wide projects and over 40 miscellaneous projects and initiatives were developed and implemented at the Company’s enterprises in 2016–2017.

The 2017 survey resulted in updates to existing programmes and initiatives and the development of new ones to address all the factors impacting employee performance and engagement.


Social Support of Employees

Social spending
RUB million

Metalloinvest operates a social support system focused on building and maintaining the long-term motivation of employees by providing them with various social benefits, guarantees, and payments. This is part of a long-term strategy of motivating, stimulating and increasing employee loyalty.

The key provisions of social programmes for employees and their family members are detailed in the collective bargaining agreements, which cover all employees. Obligations fulfilled under the collective agreement are annually confirmed by the Social Council, which includes representatives of both the employer (the Company’s management) and employees (the respective enterprise’s trade union representatives).

The Company’s social spending totalled RUB 3.1 billion in 2017.


Internal Communications System

Employees are a key stakeholder group for the Company. Internal communications are managed by the Company’s Corporate Communications Department and the enterprises’ internal communications functions responsible for implementing communications programmes for employees. Metalloinvest has developed, and launched in 2015 a feedback procedure which allows employees to interact with the Company’s management. All enterprises have an on-site “Your Voice” box to collect employee feedback. All feedback received from employees are collected and classified by the respective enterprise’s corporate communications department and are further reviewed and addressed with the involvement of relevant business units. Responses are communicated to employees through media, internal communications channels, or in person depending on the type of feedback to which the response is being made. Employees are also encouraged to raise questions during regular personal meetings with managers at various levels.

Trade union and internal employee associations

Metalloinvest actively cooperates with primary trade union leaders of the Russian Mining and Metallurgical Trade Union, of which over 90% of its employees are members. In addition to primary trade union organisations, internal employee associations have also been established at the Company’s enterprises representing certain groups of workers, such as veterans councils, youth councils, women’s councils, and others.