Annual report and accounts 2012

Employees

Our position

People with the appropriate skills and motivation are crucial to the long-term, sustainable development of our business. Therefore we strive to create suitable conditions for our employees to realise their potential, and aim to shape a corporate culture based on professionalism, initiative and responsibility.

Our action

We have many ongoing schemes for employee development and training, from induction programmes through to senior professional development, and our progress is described below. Areas of activity in the social sphere include employee rehabilitation, support for mothers and children, catering and recreation for workers, social support for retirees and veterans, incentives for employee improvement, and many other kinds of benefits and insurance.

In 2012, our average headcount totalled 67,297 employees, distributed among our divisions as follows:

In 2012, more than 8,500 managers of top six levels participated in the annual appraisal process with the Target dialogue, 360 degrees feedback and HR Committees aimed at identifying and developing talent. Five percent of the headcount constitutes the Talent Pool of the organisation; the majority of the positions in the company are recruited internally.

We benchmark our management approaches and metrics both globally and locally, to help us continually investigate and implement the best practices in this area.

Training and professional development

In 2012, 43% of employees passed through training courses, and 100% for the top three management levels. Average training time was about 54 hours per employee across the three divisions.

We continued our management development programme Achieve More Together. By the end of the year the programme had around 900 graduates, and more than 450 new participants had started the programme. It aims to support change at Severstal, by building a team of associates capable of initiating change and achieving outstanding results.

Graduate employment

Another key area of human resources development at Severstal is the employment and retention of graduates. Our Young Resources programme includes a range of initiatives focused on developing young people’s interest in the steel and mining industries. We work closely with a number of secondary schools and institutions of higher education. On the back of the Young Resources programme, we are building a continuous system of education, professional development and motivation for young professionals. The programme offers specialised classes at secondary schools, student scholarships, collaboration with universities such as internships and graduate recruitment, and new employee support. The new concept of attracting, inducting and training university graduates in Severstal Russian Steel Division started and was communicated in 2012 to support our Employer Brand, and improve retention and motivation of young specialists.

Remuneration

Employee remuneration comprises regular pay and social benefits, including a company pension plan, health insurance, life insurance and others. Our corporate pension programme has been in place at all of our Russian operations, in partnership with the nongovernmental retirement fund StalFond, since 2003. We are establishing similar practices at other divisions.

Equal rights, diversity and ethical behaviour

Severstal is committed to fair employment practices, and treats all employees with dignity and respect. All decisions affecting employment and career development are made on merit. The fundamental assessment criteria are work performance, qualifications, competence, abilities, skills, knowledge and relevant job experience. In addition, Severstal is an equal opportunities employer and is committed to the equal treatment of both men and women in the workforce. At present, women account for around 32% of our headcount, which is a large proportion for a steel and mining company.

Medical programmes

The Severstal Health programme was implemented at Cherepovets in 2002. Each year we spend about US$20 million on the programme.

The main objectives are to:

  • improve the availability and quality of medical care
  • strengthen the first line of healthcare
  • create conditions for efficient medical care at the pre-hospital stage
  • prevent disease
  • provide high-tech, state-of-the-art medical care

Severstal’s medical unit has 51 attendance stations operating on site. The programme has created an efficient system for maintaining employee health based on regular medical screening. Last year in Cherepovets we conducted over 34,000 professional medical check-ups. More than 9,000 employees and their children receive preventative procedures in health resorts and camps, and around 5,000 employees undergo rehabilitation at the health complex, Rodnik.

Housing programmes

Severstal strives to help its employees secure adequate accommodation. In Cherepovets from 2005 to 2010, we built 26 apartment blocks to house 2,345 families. In April 2012, we launched a second phase of the housing programme, through which a 400-apartment building will be ready in late 2013. In June 2012, we built a third apartment building, in the village of Telman, with 117 apartments for our employees in the St. Petersburg region.