3.3. People

Interview
with the HR Director
Natalya Mashistova
122
employees of the Company received awards in 2018
81%
of key positions vacancies was filled by the participants of the Candidates Pool Programme

Please, assess the influence of corporate culture, non-financial motivation, and social guarantees on the employees’ attitude to the Company.

In terms of social guarantees in addition to the ones provided for by the legislation, we can highlight voluntary health insurance, accident insurance, the non-governmental pension programme, and welfare assistance. Besides, a programme of granting interest-free housing loans, psychophysiological examination laboratory services, provision of corporate vehicles, subsidised meals in canteens, and etc. are available for employees of our branches. All these benefits are provided irrespective of an employee’s trade union membership. And we are not planning to cut any benefits of our employees.

We have several special non-financial motivation programmes for employees. They include sport projects like “Corporations Marathon” and various programmes aimed at promoting healthy lifestyle. For the second year in a row, we are holding #ЯЭНЕРГИЯ (“I am energy”) online marathon that allows employees of all plants to use services of a personal online trainer. Besides, large-scale parties for families and children were arranged in all branches and the Representative Office in Moscow in 2018.

The excellence and outstanding performance of Unipro PJSC employees that are traditionally highly valued by the Company management and rewarded by the Ministry of Energy of the Russian Federation speak volumes about the attitude to the Company. 122 employees of the Company received awards in 2018.

Please, describe the mandatory personnel training system. Employees of which trades must undergo it?

Mandatory training includes the following areas:

Training in new professions (sling operators, oxygen cutters, boiler house operators, power unit operators, etc.) should also be mentioned. For example, a new employee in BTS may first train for a position of a lineman, then — of an operator, then — of a senior operator, then — of a shift supervisor, etc.

What is the reason for such a considerable increase in the expenses for labour remuneration (+17%) with preservation of the personnel number?

In accordance with the provisions of the Long-Term Senior Managers Incentive Programme, payment for 2015–2017 was made in 2018. This is a one-off payment. Besides, the indexation and review of salaries of all workers of the Company resulted in a 17% growth of wages in 2018.

What is the role of youth associations in the Company?

Work with the youth is one of the most important tasks for our business. In fact, members of a youth association today are potential future leaders of Unipro PJSC.

Within such associations, young experts hone their personal and professional skills, such as leadership, efficient team-building, and project management. It is also important that these associations constitute an additional tool for development of the programme to ensure succession in the Company’s candidates pool.

Youth associations’ projects selection and implementation thereof are closely related to the Company’s strategy and mission, which has a positive impact on the Company’s image among employees and positioning of Unipro PJSC as an employer in the external labour market in the regions of operation.

Human capital management

Obviously, employees are the Company’s essential asset. Business development fully depends on the professionalism, high responsibility, and good practices of the employees. Unipro PJSC power facilities employ professionals with vast production experience and extensive engineering expertise.

The Company’s management strives to use the entire potential and competences of its employees as much as possible by creating comfortable working conditions, providing them with continuous professional and personal development opportunities, and taking care of their health and safety.

The Company’s staff management system covers a set of HR issues concerning all categories of employees — from workers and specialists to managers. The Company’s activities in this area are governed by a set of bylaws that ensure the transparency and impartiality of HR decisions.

Priority areas of Unipro PJSC staff management strategy

Fair compensation

Employee growth and development opportunities

Effective organisational set-up and processes

Development of a succession pool

Promotion of the corporate culture and social partnerships

Staff profile

In 2018, Unipro PJSC had 4,336 employees.

Unipro PJSC total headcount, persons*
2018
4,336
2017
4,357
2016
4,362

Average number of employees of Unipro PJSC branches, persons*

Yaivinskaya GRES

Surgutskaya GRES-2

Berezovskaya GRES

Shaturskaya GRES

Smolenskaya GRES

2018
489
1,205
1,071
841
495
2017
480
1,217
1,058
853
495
2016
479
1,227
1,070
867
498

One of the Company’s top priorities is to create a balanced team in terms of gender and age. This approach will enable the Company to ensure the continuity of personnel and in-house well-being and preserve and pass professional experience.

Unipro PJSC ensures equal rights for men and women in terms of employment, promotion and social benefits. A larger share of males in the headcount is due to the peculiarities of the Company’s business.

Management structure by age, %

Personnel structure by gender, %/nobr>

Management structure by gender, %

Staff turnover rate, %

2016

2017

2018

Moscow Representative Office

22.6

9.1

10.5

Berezovskaya GRES

17.5

17.5

11.0

Smolenskaya GRES

9.0

9.9

10.1

Surgutskaya GRES-2

6.6

7.6

7.9

Shaturskaya GRES

4.8

5.2

6.1

Yaivinskaya GRES

7.5

11.3

9.2

Unipro PJSC, total

10.0

10.3

8.8

In 2018, HR costs amounted to 75% of the Company’s controlled expenses.

Development and training

The professional development of Unipro PJSC employees is based on high-quality and advanced training for employees.

In 2018, the priority areas in employees’ professional potential development were as follows:

Mandatory Training

Mandatory training enables the employees to develop and test their knowledge regarding their job duties, get ready for the staff performance review and upgrade their skills.

In 2018, mandatory training in accordance with the requirements of state standards and rules was administered to 2,863 employees, that is 14% more than last year
HR costs, RUB mln
2018
7,254
2017
6,262
2016
6,439

“Succession Pool Management” Programme

The programme was launched in 2014 and provides for the evaluation of participants by means of tests, interviews, and evaluation centres involving follow-up feedback and development of personal development plans.

The objective of the programme is to bring up successors for the key positions.

Structure of HR costs, %

Results of Unipro PJSC employees’ mandatory training

Training in accordance with the requirements of state standards and rules

Short-term training

Further training (at least once every 5 years)

Retraining

Total (by branch)

Moscow Representative Office

98

177

58

0

333

Berezovskaya GRES

1,060

127

49

28

1,264

Smolenskaya GRES

373

39

47

13

472

Surgutskaya GRES-2

571

233

193

1

998

Shaturskaya GRES

573

174

120

50

917

Yaivinskaya GRES

188

102

88

7

385

Total (by type of training)

2,863

852

555

99

4,369

In 2018, 210 new participants were evaluated. The percentage of programme participants appointed to key positions in the Company is growing: 81% in 2018 (in 2017 — 70% in 2017 and 58% in 2015–2016. The “High Potential” rating was assigned to over 80% of submitted personal development plans.

“Unipro Leader” Programme

“Unipro Leader” is the basic modular training programme for managers at different levels, both for the Moscow Representative Office and for the branches.

In 2018, the following programme modules were used to train:

The Production unit launched the corporate MBA programme “Operational Excellence in the Digital Age”, 16 managers of Unipro PJSC are taking part in the programme.

“360 Degrees Feedback” Programme

The programme is based on the “Unipro Path” concept imperatives and forms part of the Company’s corporate culture (details).

The programme participants receive feedback from their superiors, colleagues and subordinates through an online system, and later on identify the areas for improvement jointly with an HR representative of and the immediate superior.

In 2018, the programme was administered to 145 employees, including 38 managers of the Moscow Representative Office.

Professional Excellence Contests

In the reporting year, composite teams of CCGT operating personnel from Surgutskaya GRES-2, Yaivinskaya GRES and Shaturskaya GRES took part in the contests.

It was the first time that the participants used the computerised simulator and analytical complex of Power Unit 410 MW CCGT Siemens with SPPA-T-3000 DCS. Based on the outcomes of the contest, the staff of Yaivinskaya GRES was included in the quarterly simulator training.

In 2019, the contest organisers are planning to hold joint contests for composite teams of CCGT and STU operating personnel.

Upgrading Skills of the Training Programme Instructors

“Group Management Methodology” programmes were administered to the engineering instructors covering 140 employees. An instructor evaluation form has been developed and is currently used for feedback purposes.

The courses on TOP-5+ special areas were equally incorporated in the engineering training.

Alongside with the programmes mentioned above that have already become traditional for Unipro PJSC, the Company implemented a number of other training projects for its functions in the reporting year:

Results of the training in TOP-5+ special areas

Branch

Height/scaffolds

Electrical installations

Confined space

Hoisting devices

Hot works

Total
(by branch)

Berezovskaya GRES

individual
participants

130

52

163

9

99

453

group participants

9

5

12

1

9

36

Surgutskaya GRES-2

individual
participants

181

332

255

61

143

972

group participants

6

10

9

3

4

32

Yaivinskaya GRES

individual
participants

164

86

66

41

40

397

group participants

22

13

8

4

3

50

Shaturskaya GRES

individual
participants

226

117

229

242

158

972

group participants

37

18

29

42

23

149

Smolenskaya GRES

individual
participants

116

35

53

12

60

276

group participants

20

7

9

3

10

49

Total (by type
of training)

817

622

766

365

500

3,070

Staff motivation

Transparent and honest relations with employees lay at the basis of Unipro PJSC HR policy.

Fair remuneration, growth and development opportunities, and social partnership require mutual respect and consideration of each other’s interests between the Company employees and management, as well as compliance with the laws and other regulations by the parties.

Financial Incentives

The principal regulatory instruments of Unipro PJSC governing the relations between the employer and the employees are the Collective Bargaining Agreements of the Company branches (renewed for 2018–2020) and Compensation and Benefits Regulations. These documents have been developed based on the Labour Code of the Russian Federation subject to the principles of social and labour relationship regulation and regional peculiarities of the Company branches.

Unipro PJSC employees’ salary comprises a fixed and a variable part. The fixed part is set depending on the employee’s qualification and position, while bonuses and incentives are paid depending on specific performance.

The Company’s reward system is shaped around the “performance-based payment” principle. Employees’ bonuses are directly dependent on the accomplishment of specific tasks in securing the predetermined key performance indicators (KPI). These indicators are set for all employees at all levels, including the Chief Executive Officer, and depend on the position.

Payroll expenses, RUB mln
2018
5,717
2017
4,910
2016
5,085

Payroll expenses account for 80% of the total HR costs.

Payroll expenses include all expenses associated with the payment of salaries, with due regard to estimated liabilities. At year-end 2018, the Company’s expenses associated with the payment of salaries increased by 16% as compared to 2017 and amounted to RUB 5,717 mln (60% of the Company’s controlled expenses).

80%

share of payroll expenses in the total HR costs

Incentive System Based on Uniper Standards

Individual indicators/targets are set for Headquarters' employees and for the management and directors of the branches on an annual basis and fixed in the performance management forms. The forms are used to evaluate the employees’ performance during the reporting year and the outcomes of this evaluation determine the bonus amount to be paid and revision of the salary for the current year subject to achievement of the key financial indicators.

SMART principles are used to set the KPI. This approach makes the system transparent and comprehensible, as it enables the employee and his/her superior to set priority tasks, outline evaluation criteria and timeframe, and therefore, rule out the risk of partiality in evaluating targets in the future. When the employee realises that there is a direct correlation between his/her performance and the amount of the bonus payable thereto, this serves as a powerful incentive ensuring the precision and transparency of the system, and ultimately a fair remuneration.

The Company monitors the regional labour markets on an ongoing basis, including by taking part in the salary overviews conducted by major global independent companies (including E&Y, PWC, Hay Group, etc.).

Overall, the employees’ average salary is similar to salaries paid by companies of the same sector in respective regions of the branches.

Employees’ official salaries are subject to indexation and may also be increased depending on the employee’s KPI in the relevant period within the limits of the payroll budget. The higher the scores of the performance evaluation secured by the employee in the past year, the higher his/her salary in the next (following) year.

The salary revision principles are as follows:

This approach to measuring salaries provides each individual employee with a clear idea of the matters within his/her responsibility area and of the things he/she needs to do to secure a high evaluation of his/her performance and, consequently, a higher salary and enables the Company recruit and retain top-end professionals.

Thus, in 2018, 12 executive-level employees of Unipro PJSC got promotions.

Transfers of Unipro PJSC top managers in 2018

Function

Number of transfers

Moscow Representative Office

4

Berezovskaya GRES

3

Smolenskaya GRES

0

Surgutskaya GRES-2

2

Shaturskaya GRES

2

Yaivinskaya GRES

1

Total, Unipro PJSC

12

Non-Financial Incentives

Unipro PJSC gives a lot of attention to non-financial motivation of its employees. The Company has a friendly corporate culture and an atmosphere of appreciation, care and recognition of everyone’s achievements.

Recognition of achievements

Traditionally, the Company management highly values the excellence and outstanding performance of Unipro PJSC employees who are also rewarded by the Ministry of Energy of the Russian Federation for their achievements. In 2018, 9 employees of Unipro PJSC earned the relevant awards.

  • Appreciation of the Ministry of Energy of the Russian Federation: 1
  • Certificate of Excellence of the Ministry of Energy of the Russian Federation: 7
  • Honoured Power Engineer Title of Excellence: 1
  • Total: 9

In addition, 113 employees earned Unipro PJSC awards: 50 Certificates of Excellence and 63 Letters of Appreciation.

The Company’s corporate culture is based on the “Unipro Path” concept geared towards staff capacity building and support and motivation of employees.

In the reporting year, the promotion of the “Unipro Path” value imperatives was attested by a number of activities and dedicated incentive programmes for the Company employees.

“Power of Success” Contest

The “Power of Success” contest forms part of the comprehensive incentive programme for employees. The contest is intended to reward and encourage the achievements associated with improvement of performance indicators and strengthening of social and environmental responsibility. In 2018, the contest received 122 applications and featured 89 projects in four categories: “Improvement and Innovations”, “Safety First”, “Business and the Environment”, “Our Place in the Society. Social Responsibility”.

“Agents of Change” Project

Fostering a healthy lifestyle culture is continuously among the Company’s staff management priorities. The “Agents of Change” project launched in 2017 is aimed at bringing up leaders of sports projects.

In 2018, everyone interested sent their ideas about organising and promoting the Company’s recreational activities. The authors of the best proposals were invited to take part in the “Change Life by Doing Sports” transformation programme in Moscow sponsored by Adidas Academy. This is an unparalleled programme that provides people with an opportunity to take a new look at their lives, get inspiration for the new victories, and build successful relations with other people.

Olga Kornelzen,

Head of Legal Affairs and the Property Management Division, Yaivinskaya GRES

I enjoy working in a team of people who devote a significant part of their lives to sports, are not afraid to pursue ambitious goals, and prove their words with deeds.

The Perm international marathon was held for the second time and it was the second time that my colleagues and I took part together. The race offers different distances for different age and fitness groups: 42.2 km, 21.1 km, as well as 10.5 km and 3 km. Over 8 thousand people from 13 countries took part in the race!

It is an incredible feeling to stand at the starting line shoulder to shoulder with renowned athletes, world champions and world cup series winners. But this is not the most important thing: it is absolutely incredible to see a person over 80 years old crossing the finishing line who has completed the marathon.

This year, we chose a 10 km distance and did a pretty good job. Compared to last year, I improved my time by 2 minutes, which I was very happy with. However, I want to keep improving and I hope I will be able to run a half-marathon one day. My track and field colleagues and I have another important goal: increase the number of participants representing Yaivinskaya GRES and get more people to sign up for the marathon with the Unipro team in the future. We are already working on this.

“Corporations’ Race” Event

In August 2018, the newly created Unipro PJSC team took part in the “Corporations’ Race” family sporting event which is the world’s best live corporate activity in the open air according to Eventex award.

The Company’s team demonstrated a decent performance and one of the employees earned a bronze medal in the adult 2 km race.

Employees’ kids took part in the “pre-walker races”, “child races” and fitness workouts.

“Vigorous Morning” Programme

In 2018, the employees of the Headquarters on Presnenskaya Embankment were provided with an opportunity to do yoga and weight training before the beginning of the working day. Thus, Unipro PJSC is helping the employees who are already trying to live a healthy lifestyle, and yet unable to do sports during the workweek due to a high workload and distance from home to work.

#ЯЭНЕРГИЯ Online Marathon

In 2018, the Company held the second season of #ЯЭНЕРГИЯ Online Marathon. This is the key project for building the healthy lifestyle culture implemented under the thematic programmes of employee involvement.

#ЯЭНЕРГИЯ comprises 28 days of fitness activities and healthy eating under the supervision of experienced coaches and nutrition specialists. In 2017, 516 employees of power plants took part in the marathon and by late 2018, their number reached 839.

In the reporting year, the “Joyful Family” programmes for the whole family and the “Power of Yoga” activities for the fans of static loads were added to the online marathon.

Family and Children Parties

The traditions of family recreation are particularly valued by Unipro PJSC. Thanks to the opportunity to take part in joint parties and activities, the Company employees can both demonstrate their creative and athletic talents and socialise with colleagues in an informal setting on the one hand, and have some extra time with their families on the other.

In 2018, this kind of parties for employees and their children were held in all the branches and in Unipro PJSC Representative Office in Moscow.

In the fall, Moscow hosted family sports days, flash mobs and team races on handmade race cars. The New Year for the Headquarters employees’ children was very exciting: the kids were able to come to their mom's and dad's job, get a bird’s eye view of Moscow (Floor 43), make presents for their dear ones with their own hands, have fun and get lots of positive emotions.

The representatives of Yaivinskaya GRES had an opportunity to celebrate a traditional Russian holiday, namely the Day of Family, Love and Fidelity. They took part in a variety of contests and activities held on the square in the very heart of the village, including "Stroller Parade”, “Baking Duel”, a doll-making master class, a well-thought concert programme and other entertainments for children. In November, the most proactive and sporting families took part in the traditional family sports days.

Shaturskaya GRES organised the “Power of Family” sporting competitions in the premises of the local sports palace and the “Myth Busters” family event in the municipal park.

The organisers and heroes of the sporting event held by Berezovskaya GRES were the employees who represented the branch in a variety of athletic competitions in ping-pong, track and field, volleyball, indoor soccer, swimming and cross-country skiing throughout the year.

In May, Surgutskaya GRES-2 held the traditional “Mom, Dad and I Are a Sporting Family” relay race, in September – the “Uniproshka and Traffic Rules” sessions intended to teach traffic rules to children while playing, and in November – the “Unipro Path” contest of children’s drawings.

Youth management

Unipro PJSC continuously prioritises interaction with young specialists. In 2018, the Company proceeded with the implementation of its project intended to promote youth associations.

Youth associations provide young employees with an excellent platform for developing their leadership, project management and social skills, and with additional professional growth opportunities in the Company

The key objectives of developing the youth associations in 2018 were as follows:

  • building a consistent approach to project implementation, business planning and scheduling, including project cost budgeting and priority ranking of projects;
  • increasing the number of youth association members by expanding the project areas: social, research, educational, recreational and sports projects focusing on the Company’s strategy and core business areas;
  • intensifying the efforts to involve the staff of the branches in the youth associations’ projects.

Annual forum of Unipro PJSC youth associations

In June 2018, Smolensk hosted the second annual forum of youth associations that included the following activities:

  • strategic session on the youth associations' plans for 2019, discussion of completed projects;
  • informal Q&A session with I.V. Popov, Deputy General Director for Production;
  • multiple training programmes: “Working in the Energy Markets”, “Succession Pool Management Programme”, “Company’s Remuneration and Benefits System”;
  • presentation and teamwork on the development of the “Uniproshka for Kids” social PR project;
  • teambuilding activities geared towards reaching a common target.

In 2018, the members of Unipro PJSC youth association joined the Youth Electric Power Industry Council under the Ministry of Energy of the Russian Federation and already took part in a number of activities.

Over 80

young specialists from 5 branches took part in the “Personal Performance Improvement Tools” training programme

Furthermore, the Company particularly prioritises recruitment of the best young specialists who may be appointed to the key executive positions and manage the Company’s business in the future.

In 2018, as part of the comprehensive youth, students and young specialists management programme, Unipro PJSC secured the following results:

  • the Company held 12 career planning meetings with students in 6 target universities and 5 large-scale “Company Days” in specialised colleges and universities. The activities involved over 1,500 students, which definitely improved the image of Unipro PJSC as a potential employer;
  • the Company held over 8 career planning and induction sessions for students of the energy classes;
  • the number of young specialists’ CVs received by the Company more than doubled as compared to 2017;
  • around 40 young specialists with relevant majors joined the Company in 2018;
  • 60 young specialists from amongst the employees that have joined Unipro PJSC since 2017 were nominated by their superiors for the programme of fast-track training for the Company’s succession pool, around 20 of which have already taken part in the “Succession Pool Management” programmes, and 3 employees have been promoted.

Introduction to the profession

On 20 November 2018, the Kutafin Moscow State Law University (MSAL) held a practical lecture for students involving Unipro PJSC (Uniper International Energy Group) and White & Case (law firm).

Competent lawyers under the supervision of Elena Gabdulkhaeva, Director for Corporate Management, Legal and Property Affairs at Unipro PJSC, and Anton Vasin, Attorney-at-Law, Senior Counsel at White & Case, shared their personal experience and practical insights concerning the approaches to the study of mandatory and optional subjects, internships and employment with the students.

The speakers advised the students on the choice of a specialisation area. Among multiple other things, the discussion was devoted to communications in the academic and professional environment, ways to combine studies and work and development of soft skills.

Social security and benefits

Unipro PJSC provides its employees with a full social package stipulated by the law, but not limited thereto.

The benefits, including voluntary health insurance (VHI) and personal accident and sickness insurance, the sickness benefit and financial aid are granted to all employees at the primary working place.

The Company strives both to provide its employees with stability and development at present, and to ensure a comparable quality of life in the future after they retire. The Company's non-state pension system (NPS) was implemented in 2005 and comprises two basic pension schemes: corporate and parity.

The corporate scheme represents a variation of the non-state pension scheme when the employee retiring due to old age receives money transferred by the Company to such employee’s account with a non-state pension fund (NPF) from this NPF. The amount transferred to the NPF depends on the employee’s official salary and length of service with the Company.

Participation in the parity scheme enables the employees to have a major influence on their future pension amount. The programme is based on the joint involvement of the Company and its employees (co-financing in equal shares on a monthly basis) in the savings for the payment of a supplementary non-state pension benefit.

In 2019, Unipro PJSC will continue to engage its employees in the parity pension scheme.

1,361

Unipro PJSC employees participated in the parity scheme in 2018



Unipro PJSC employees participating in the parity scheme

Smolenskaya GRES

2018
81
2017
168
2016
159

Surgutskaya GRES-2

2018
591
2017
633
2016
685

Shaturskaya GRES

2018
164
2017
153
2016
152

Yaivinskaya GRES

2018
109
2017
129
2016
153

Berezovskaya GRES

2018
381
2017
425
2016
501

Moscow Representative Office

2018
35
2017
41
2016
61

Corporate support to employees in housing improvements

In 2018, with a view to contributing to housing improvements, Unipro PJSC Management Board approved the lists of 50 employees who were offered to make agreements for the provision of an interest-free target loan for the purchase (construction) of housing accommodations and for the repayment of the principal on the mortgage loan.

The categories of employees enjoying the priority right are as follows:

  • young specialists employed after graduating from relevant higher and secondary education institutions;
  • high-end workers or specialists whose professional expertise is relevant for the Company;
  • employees from the succession pool.