2015 Annual Report


Personnel management

The current version of the Staffing and Social Policy was approved by the Board of Directors in 2014.

The main task of personnel management is the development of a highly skilled professional team that ensures the delivery of strategic goals.

IDGC of Centre’s Staffing Policy addresses three priority tasks:
The improvement of the efficiency of human capital The creation of a favourable corporate environment for the retention and development of personnel The creation of safe labour conditions

General characteristics of the Company’s personnel

Due to the optimisation of the personnel headcount in the administration and management and the transfer of the function of guaranteeing a supplier to energy sales companies, the average headcount of personnel in 2015 decreased to 29,428 persons. The availability of personnel did not change in comparison with previous reporting period: at the end of 2015, it amounted to 95%. The total number of newly hired employees in 2015 amounted to 2,741 persons, and 692 persons were dismissed.

Average personnel headcount, in persons
Среднесписочная численность персонала 2013–2015 годах
95 % staffing level in 2015
Distribution of personnel in branches, %
Branch 2013 2014 2015
Executive office (Moscow) 3 3 2
Belgorodenergo 13 13 13
Bryanskenergo 7 7 6
Voronezhenergo 10 11 11
Kostromaenergo 6 6 7
Kurskenergo 10 9 9
Lipetskenergo 7 8 8
Orelenergo 7 6 6
Smolenskenergo 12 12 11
Tambovenergo 6 7 7
Tverenergo 12 11 11
Yarenergo 7 7 9
Total 100 100 100
Gender distribution of newly hired employees in 2015
Age distribution of newly hired employees in 2015
Distribution of newly hired employees in 2015 by region
1 021 employees took leave to care for a child under 3 years old in 2015, among them: 96.4% — women and 3.6% — men

It is important for the Company that employees who take leave in order to bring up small children return to their jobs. In 2015, 78% of employees (of ones who were supposed to return) returned to their jobs.

Over the last year, the category structure of employees has remained stable. Blue-collar staff accounts for the majority of employees (52%). An insignificant increase in the number of employees in 2015 (by 1%) is attributable to the filling of vacancies in the Distribution Zone and to the creation of the Distribution Zone Yargorelectroset at the Yarenergo branch. The reduction of the share of white-collar staff in 2015 is attributable to a limitation in the increase of administrative and management personnel by the optimisation of Company OPEX.

In 2013–2015, the age distribution of personnel almost did not change. The core of the Company’s staff consists of employees aged 25-50 (66%). The average age of employees, 41, also did not change in 2015.

The Company saw an increase in the level of education of its personnel. In 2015, circa 86% of employees had professional education.

The high level of modern technology in the electricity sector requires strengthening and development of the Company’s staff. An analysis of the changes in the educational level of the personnel shows an annual increase in the share of workers with vocational education.

86 % employees have professional education
41 average age of employees in 2015
Structure of personnel based on education level, %
Categories 2013 2014 2015
Basic/secondary education 15 13 14
Primary vocational education 17 17 18
Secondary vocational education 27 29 27
Incomplete higher education 0 0 0.03
Higher vocational education 38 37 38
Higher education in 2 and more specialisations 3 3 3
Doctor of Science 0.17 0.17 0.14
Candidate of Science (PhD) 0.01 0.01 0.01
Personnel structure by category, %

Age structure of personnel, %

Due to the Company’s efforts as part of the Staffing and Social Policy, the active turnover (caused by dissatisfaction with the workplace) is rather low; in 2015 it amounted to 2.35%. Additionally, the overall turnover of staff decreased due to organisational and structural changes in the Company.

2,4 % staff turnover in 2015
Regional distribution of staff turnover in 2015
Region 2015
Moscow 5.3
Belgorod 2.6
Bryansk 3.2
Voronezh 1.5
Kostroma 0.9
Kursk 1.5
Lipetsk 2.2
Orel 1.7
Smolensk 0.5
Tambov 2.4
Tver 5.2
Yaroslavl 3.3
Turnover, %
Gender distribution of staff turnover in 2015, %

Age distribution of staff turnover in 2015, %

Personnel recruitment

One of the goals of the Company Staffing and Social Policy is to meet the Company’s required demand for qualified personnel on a timely basis.

Personnel recruitment, rotation and development programmes were created for this purpose. Priority is given to operational employees (the aim is the replacement of at least 60% of management positions by internal candidates), and the hiring of young specialists with relevant professional education. Additionally the Company implements a federal and corporate personnel mobility programme aimed at ensuring the availability of skilled personnel in regions with a labour deficit.

For the recruitment of personnel, the Company cooperates with regional employment services, participates in the development of a uniform corporate bank of vacancies and resumes (for the power grid complex). Information about the Company’s vacancies is published in these open sources.

Standardized qualification requirements corresponding to each job’s duties are set for candidates. All candidates are provided with equal opportunities and no discrimination is allowed.

Labour payment and bonus system

The Company implements a uniform labour and remuneration payment system, creating conditions that attract and retain skilled personnel. The current labour payment system sets position salaries and tariff rates, taking into account the employee’s qualification, business skills and experience. It includes bonuses for performance results, allowances that depend on the scope of work and working conditions, and spot bonuses.

Data from Rosstat is used for the evaluation of the competitiveness of the salary, and the level of active personnel turnover is monitored. The completed analysis shows that the salary level of IDGC of Centre’s employees is comparable with market conditions.

7.4 % was the growth of average wages of employees in 2015, driven largely by quarterly indexation of the minimum monthly tariff rate
The average salary level of branch employees in 2015, RUB

In 2015, the Company successfully implemented a number of personnel remuneration projects with the participation of the specialists from all functions and representatives of the trade union. These changes were made to implement the Programme for a gradual increase in the salary of entry level workers to MMTR level in the power generation industry, as determined by the Industry Tariff Agreement.

Namely, a uniform Tariff Scale was developed for workers: a grade payment system was introduced for managers, and blue-collar staff; and the employee financial remuneration (bonus) system was revised. A system of key performance indicators (KPI) for each structural unit was developed for every branch. The number of KPIs for each unit does not exceed 4, which allows for the identification of top priorities from the unit’s performance profile and to assess the efficiency of their achievement. In addition to salary position, IDGC of Centre’s Collective Agreement and the internal documents of the Company provide additional payments (a variable part of the salary). These payments include: bonuses for main performance indicators, payment related to the working regime and conditions, payment for main and additional vacations, payments for the length of service, and financial assistance for vacations.

Non-financial incentives

The Company has moral encouragement system for employees for the achievement of high operational results, the implementation of innovational projects and the length of proper service. In 2015, five of the Company’s employees received Government awards from the Russian Federation; 212 of the Company’s employees received departmental awards from the Russian Federation’s Ministry of Energy; 204 employees received corporate awards from PJSC Rosseti; 78 employees were awarded by the All-Russian Industrial Association of Employers of the Power Generation Industry; and 594 employees were awarded by IDGC of Centre. Two employees were named on the Honors Board of the Power Grid Industry and 5 employees were listed in the Honors Book of the Power Grid Complex.

Training and development of personnel

Development of a plan for the training, re-training and qualification improvement of the Company’s personnel and the implementation of its action items is carried out in accordance with the requirements of the Rules of Personnel Management in the Power Electric Organisations of the Russian Federation and the “Procedure of Personnel Management of IDGC of Centre, PJSC” Standard.

Employees are trained on the job, in specialized educational institutions and in personnel training centres (professional training, re-training, advanced training of personnel, relevant secondary and higher vocational education for personnel). In 2015, 9,700 persons were trained on the job, whereas 11 thou. employees were trained off the job.

Share of employees who participated in training activities and the level of training relative to the payroll budget in 2015,%
Branch Share of trained employees,% Training in company’s training centres,% Ratio of training costs to payroll budget
Belgorodenergo 17.6 0 0.33
Bryanskenergo 47.3 11.3 0.48
Voronezhenergo 34.9 21.0 0.71
Kostromaenergo 57.2 0 0.73
Kurskenergo 51.3 0 0.40
Lipetskenergo 37.3 0 0.49
Orelenergo 31.8 20.5 0.56
Smolenskenergo 30.0 1.4 0.55
Tambovenergo 19.8 8.1 0.46
Tverenergo 45.6 27.8 0.63
Yarenergo 50.2 2.7 1.04
Executive office 40.4 0 1.09
Total across Company 37.4 8.4 0.62

The Company is the founder of three training centres:

  • The private institution, “Tver Production and Training Centre”
  • The private Additional Vocational Education Institution, “Voronezh Training Centre Energetik”.
  • The private institution for additional vocational education, “Orel Training School”).

These training centres have licences for educational activities, and classrooms equipped with modern teaching aids, simulators, computers, video and multimedia equipment. The training centres also include training facilities with power grid equipment for the development of practical skills. The training centres mainly train dispatchers, foremen, electricians, and wiremen.

2,462 of the Company’s employees, or 22.4% of the total number of trained employees, were trained at the Company’s training centres in 2015.

Distribution of trained employees by category in 2015
10,992 people had training with day release in 2015 20,683 people had training in 2015

The Company also cooperates with a number of higher, secondary and additional vocational education institutions, including National Research University MPEI, the Saint-Petersburg Energy Institute of Advanced Training, Ivanovo State Energy University, the Academy of Standardisation, Metrology and Certification and others. The “Management and work with power generation, fuel and energy, industrial enterprises personnel” training course was organised for directors and chief engineers at Distribution Zones jointly with the Saint-Petersburg Energy Institute of Advanced Training. Heads of divisions and structural units participated in the “Successful Manager: Management Tools” training course.

Career development and succession pool

On an annual basis, the Company develops a succession pool and a young specialist succession pool at the central office and at the branch level. In 2015, the management succession pool for all positions of deputy general director, branch director and their deputies was renewed.

In 2001, the Company created the youth succession pool with main goals of: the engagement of young employees in finding resolutions to relevant problems of the power grid complex the improvement of their professional competence, the identification of high potential young specialists, and support for their career development. This succession pool is formed based on the competition among young specialists at the Company’s executive office and its branches.

Structure of the succession pool

In 2015, 245 managers (37.4%) out of 655 management appointments at the Company’s executive office were appointed from the management and youth succession pools.

Work with young specialists

A Youth Council is created at each of IDGC of Centre’s branches for efficient interaction with young employees. The Youth Forum is held on an annual basis for the development of employee’s leadership skills and for the development of a non-standard, individual approach to implementation of ideas. In 2015, a forum was organised in the format of “School for Chief Engineers of the Distribution Zone”. Young employees, among whom there were representatives from various specialties (i.e., heads of production; technical, operational and technology groups; masters of crews; managers; engineers; etc.) met the leadership of the company’s technical unit and trade union leaders, participating in business trainings and a championship to solve practical problems in the electricity sector.

Furthermore, IDGC of Centre’s branches annually organize a holiday for the initiation of young power engineers hired in the current year. This event includes: meetings with the managers of structural units, competitions of specialised knowledge, and trips to substations, grid control centres and regional museums of the power system.

Work with students and schoolchildren

In order to attract talented, professionally trained youth, IDGC of Centre has productively cooperated with leading universities and relevant secondary vocational education institutions over many years. In addition to this, the Company conducts profession guidance work with schools in all regions of its presence. The most capable pupils have the opportunity to study at educational institutions that the company signed agreements with. For students who complete production and pre-degree practice at the Company, IDGC of Centre provides them with a scholarship and allocates them after graduation. Furthermore, the Company’s branches hold Door Open Days for students and schoolchildren on an annual basis. The most large-scale example of the Company’s interaction with educational institutions in 2014–2015 was the project for equipping the training centre at Konakovo Energy College. The training centre is designed for practising: H&S knowledge, power grid electrical equipment maintenance, process monitoring and control and other disciplines. The second facility of the training centre — a training laboratory for substation and distribution grid equipment — was opened in 2015.

For the development of cooperation with leading technical universities, IDGC of Centre organises the work of students’ construction crews. This project significantly increases the level of training for graduates of technical universities, helping them to acquire a better understanding of their future profession. 171 students worked in the summer of 2015 at different units of Distribution Zones of the Company’s branches.

Creation of the proper labour conditions

System of benefits and interaction with the workforce

At the Company, the relationships between employees and employers are established on the basis of a social partnership. The interests of employees are represented by the primary trade union organisation, which incorporates 11 trade unions of Centre’s branches. The trade union signs the Collective Agreement with the management of the Company of behalf of the employees. The Collective Agreement applies to all of IDGC of Centre’s employees.

Under the Collective Agreement, the management of IDGC of Centre, jointly with the trade union, addresses the issues of: the improvement of labour efficiency and productivity, the improvement of the quality of work, compliance with labour and operational discipline, and H&S requirements. Additionally, employees are provided with social guarantees, benefits and compensations. Namely, payments are given out in case of the death of an employee at the work place, for spa and resort treatment, for taking care of disabled children, for the purchase of recreation camp vouchers for the children of employees. Payments are also provided for childbirth, marriage, for families with three and more children, etc.

Housing programme

The Company has a Regulation from the Corporate Assistance and Support of the Personnel, with respect to the Improvement of Housing Conditions, approved by the Company’s Board of Directors. There are Housing Commissions at of IDGC of Centre’s branches.

In 2015, the Company allocated RUB 8.5 mln for the compensation of rental costs for young and highly skilled employees (152 employees) and RUB 16.5 mln for the payment of interest rates under mortgage loan agreements (200 employees).

Expenses for the improvement of housing conditions, RUB mln
Расходы на мероприятия по улучшению жилищных условий

Personnel health

In accordance with the Collective Agreement and Corporate Health Insurance Programme, IDGC of Centre’s employees are insured by voluntary health insurance (VHI) programmes and are protected by accident and health insurance. VHI programmes provide a broad range of medical services, free of charge, including different types of medical examinations, clinical services, and in-patient and rehabilitation treatment.

In 2015, the insurance premium under VHI agreements amounted to over RUB 190 mln. Accident and health insurance agreements covered all of the Company’s employees.

Sports and the promotion of a healthy lifestyle are an integral part of the Company’s staffing policy and corporate culture. The Company’s branches hold sports games, football, hockey, volleyball, chess tournaments, bike rides, health days, sports days for employees and members of their families, and many other events. The winners and branches’ best sportsmen participate in: local regional sporting events, in sports competitions between structural units and in external competition as members of IDGC of Centre’s corporate team.

In 2015, the Summer Sports Games were held in Lipetsk. 12 teams of branch employees and the executive office of the Company took part in the Games. IDGC of Centre’s Second Hockey Tournament, dedicated to the 70th Anniversary of the Victory in the Great Patriotic War, was held in February 2015 in Tver at the Triumf Sports Ice Complex.

VHI expenses, RUB mln
Расходы на мероприятия по улучшению жилищных условий

Corporate pension support and veteran care

The Company has its Programme of Non-State Pension Coverage for the financial assistance of retired employees, which is annually approved by the Board of Directors. IDGC of Centre’s Non-State Pension Programme is implemented based agreements for corporate and parity pension plans entered into with PJSC Non-State Pension Fund of Electric Power Industry.

Councils of Veterans are set up at each of the Company’s branches linking the pensioners and the management of each branch. The Councils of Veterans helps to identify the pensioners in the most strained circumstances, and helps the management of the branches to organise joint events related to holidays and jubilees.

In May 2015, during celebration of the 70th anniversary of the Victory in the Great Patriotic War, the employees took part in Russian patriotic campaigns, The Immortal Regimen and the St. George Ribbon.

In 2015, the Company’s financial assistance expenses for non-working pensioners and disabled persons amounted to RUB 54.8 mln.

Number of persons receiving a corporate pension
Расходы на мероприятия по улучшению жилищных условий
Payments to the Non-State Pension Fund of Electric Power Industry
Расходы на мероприятия по улучшению жилищных условий

Corporate volunteering

The Company considers charity activities as one of the Staffing and Social Policy’s areas of implementation, ensuring the creation of a favourable social environment in the regions of IDGC of Centre’s presence.

Jointly with the Gift of Life Foundation, the Company regularly holds donor campaigns for blood donation. In 2015, employees of the Company’s Belgorod branch participated in an event entitled “Become a Magician.” On New Year’s Eve, employees purchased toboggans, balls, and toys for children at the Ivnyansky Social and Rehabilitation Centre for Minors, located in the Belgorod Region. In addition, the Company’s employees collected over RUB 150 thou. of their personal funds to equip the Centre of Psychological Support and Rehabilitation for Cancer-Stricken Children, which opened in Belgorod in October 2015.

Employees of Lipetskenergo took part in a charity event, entitled “Go Ahead and Study,” in the Lipetsk Region. The goal of the event was to provide as many school supplies as possible to children from needy families. Thanks to our employees in Lipetsk, the children received new toys for the New Year during the voluntary “Gift of Father Frost” campaign.

The Company’s employees also help to support their colleagues and the children of their colleagues in time of need. In 2015, the Company’s employees donated around RUB 2 mln for the aid of their colleagues in tough situations.

Dialogue between management and employees

Trade Unions

The Primary Trade Union Organisation of IDGC of Centre, PJSC, is supposed to ensure a reasonable balance of interests with the positive trend in social support of employees, participating in: the creation of healthy and safe labour conditions, and the improvement of the efficiency of protecting employees’ social and economic rights and interests.

The primary trade union organisation of the Company integrates 12 trade union organisations (in the executive office and in 11 branches); the trade unions have over 23 thou. members. The level of trade union membership is 82% of the total headcount of the Company’s employees.

In spite of the tightening social and economic conditions in 2015, the management of the Company and the trade union committee of IDGC of Centre, PJSC, managed to: ensure average salary growth for power engineers, and to increase the attractiveness of the power engineer profession on the labour market in the regions of presence. Due to the construction of a social partnership, the parties managed to preserve high standards of social responsibility, including voluntary medical insurance, insurance for accidents and diseases, and the payment of an allowance and financial assistance for family reasons.

Jointly with the employer, the trade unions organise different events for the Company’s employees. These events are dedicated to memorable dates, amateur performance events, and corporate Funny and Inventive Club events. The employees are provided with access to a sports infrastructure (swimming pools, sports grounds, etc.), and training and competitions are held (annual spartakiads, hockey tournaments, and friendly matches among the branches’ teams).

Jointly with IDGC of Centre, PJSC, the trade union organisation participates in numerous social projects, and organises and holds charity events.

Review of complaints and proposals

IDGC of Centre, PJSC, has a system for filing complaints and proposals, both from employees, counterparties and other groups of stakeholders.

Employees are entitled to send applications to the Company’s management (the Branch Director, and the General Director of the Company). The management reviews all applications and a written response is sent to the applicant to the specified address in the application. In 2015, 57 applications were sent to the Branch Directors and to the Company’s General Director.

Additionally, the management and the Trade Union Committee of IDGC of Centre, PJSC, regularly hold meetings with staff in Distribution Zones, explaining the mechanisms of compensations and benefits, changes in the labour payment system and health and safety matters to the employees under the Collective Agreement.

Allegations of corruption can be reported via the telephone hotline or by email (doverie@mrsk-1.ru) using the feedback form on the corporate website, found at http://www.mrsk-1.ru/, and by using any other methods. See more information in the “Corruption Counteraction” Section of the Annual Report.

Settlement of disputes using official mechanisms

As per Article 392 of the Labour Code of the Russian Federation, an employee is entitled to apply to the court to settle an individual labour dispute within three months from the date he/she was supposed to have learned about any violation of their rights, and within one month from the delivery date of the copy of the order for their dismissal (or from the date of their return) to the labour book, in the case of any disputes related to dismissal.

19 employees had recourse to the court in 2015. 16 disputes were settled within a year, while 3 disputes are still being reviewed.

Matters considered by the management, taking into account the opinion of employees

Within the framework of the Collective Agreement, the social partnership’s parties jointly address the general regulation principles’ development issues of social and labour relations:

  • The improvement of labour efficiency and productivity, the improvement of the quality of work;
  • Compliance with labour and production discipline, health and safety requirements, and occupational sanitation
  • Assurance of social stability in the Company.

Labour safety

To ensure the employees’ safety at work, the Company has implemented the Injury Risk Reduction Programme for the 2015-2017 period. Minutes from the meeting of the Board of Directors, dated 30.01.2015 No. 01/15. RUB 332.7 mln were spent on this programme in 2015, which is 4.3% lower than the cost in 2014. This gradual reduction of costs is attributable to the fulfilment of planned actions items, which, subsequently, do not require annual recurrent financing.

The Company identifies the following major occupation injury risks:ы

  • Electric current and electric arc risks;
  • Risks of impact from moving machines, mechanisms, and moving parts of operational equipment;
  • Risk of falling from high places (and risks of falling objects).
Expenses for the implementation of the Injury Risk Reduction Programme, RUB mln
Расходы на реализацию Программы по снижению рисков возникновения травматизма
12.0 thousand people had training at the training sites in 2015 12.3 thousand people thousand people had training at the Centres and engineering classrooms in 2015

In the reporting period within the framework of Injury Risk Reduction Programme, the Company continued its work to ensure operational safety, the creation of optimum working conditions, and the protection of its employees’ life and health, providing them with the required protective equipment.

As in the previous years, the Company has made a significant focus on the training of personnel. IDGC of Centre’s branches use existing training facilities broadly, where personnel exercise the correct maintenance of electrical installation and repair operations.

All employees who are engaged in work with harmful and hazardous conditions are trained in safe working methods and techniques. These working employees pass regular health and safety training; employees of certain categories have tests that check their knowledge of health and safety requirements.

The Company regularly performs medical examinations of its personnel. Employees engaged in harmful, hazardous and harsh labour conditions are recorded. Records are kept based on the certification data of workplace labour conditions; since 2014, a special assessment of labour conditions has been performed. Additional compensations are provided for the said categories of employees, in accordance with labour legislation and the Collective Agreement (including additional vacation time and others).

Currently, there are no employees with initially identified occupational diseases (diseases contracted while working in the Company).

Employees authorised to work without supervision on electrical installation are provided with electricity protection equipment and special clothing. In 2015, the Company focused on purchasing of sets of arc-resistant clothing and sets of bars for the installation of temporary ground, without employees having to climb on poles of overhead lines. Almost all crews that service high-voltage lines are provided with two sets of such devices. The application of these sets significantly reduces the risk of electrical injuries and injuries caused by falling from high places.

0.0680 injury frequency (number of cases per 1,000 employees)

Due to preventive efforts taken by the Company, the overall number of work-related accidents has been gradually decreasing. The number of fatal injuries has remained at the same level. In 2015, the Company had 2 reported accidents at its facilities, one at Yarenergo and one at Tambovenergo. One of these accidents was fatal. In accordance with the Accident Investigation Reports, the managers of the Company are held accountable for these accidents. Both accidents were caused by an unauthorised performance of work.

Occupational injuries at the Company
Indicator 2013 2014 2015 Variance 2015/2014,%
Number of persons injured by occupational accidents, total 7 5 2 –60
ВIncluding fatal accidents 1 1 1
Structure of labour protection costs, RUB mln

The total labour protection costs in 2015 amounted to RUB 468.7 mln, which is 6.3% lower than in 2014. Such a reduction is attributable to the reduction of spending on accident prevention measures (-42.7% compared to 2014) and an overall improvement of labour conditions (-38.2%). A significant part of these activities was performed in the previous years at a rather high level and therefore, they did not require spending in the reporting period. The spending on PPE for employees in general stayed at the level of the previous year. It is also necessary to note the annual increase of spending on sanitary and hygienic activities for the prevention of occupational diseases, due to the growth of the of medical examination costs.