Annual Report & Accounts 2013
Severstal Annual Report 2013 Home > Sustainability > Employees


Our position

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

We have many schemes for employee development and training, from induction programmes through to senior professional development. The main purpose of these events is to promote the cultural transformation of the company in order to ensure the most efficient implementation of our corporate strategy. Severstal believes that industry leadership is only possible when our customers are happy with our products and services, while our employees are engaged and follow safe work practices.

Areas of social activity 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.

At the same time, challenging conditions in steelmaking and mining industries are forcing us to keep looking for ways to improve our productivity. In 2013, we optimised the headcount of our corporate headquarters in Moscow and the headquarters of our individual businesses. This optimisation focused on bringing our management closer to our employees, so that we manage our business more efficiently while reducing our administrative expenses. Severstal will keep working on improving our productivity, reducing our costs and other initiatives to make us more competitive.

In 2013, our average headcount including our corporate headquarters totaled 61,360 employees, distributed among our divisions as follows:

Average divisional headcounts in 2013

* Including corporate headquarters.


In 2013, every manager from the top six levels of management participated in the annual performance evaluation process including discussion of goals, 360-degree feedback and HR Committees aimed at identifying and developing talent. From 2014, all employees of Severstal’s Russian businesses will be able to participate in discussion of their goals.

The majority of our vacancies are filled internally. Severstal has a management reserve program. Members of the management reserve work on individual development plans towards the next level of management.

Students, graduates and young professionals

Recruitment of promising young professionals is one of the key priorities of Severstal’s HR policy. Our dynamic development, new projects and global expansion creates a strong need for talented and ambitious young people striving for continuous development.

Numbers and facts

  • Approximately 1500 students completed their internships in Russian businesses of Severstal in 2013.
  • Our Russian businesses employed 200 graduates in 2013.

The active engagement of students, graduates and young professionals is a priority of Severstal’s HR policy.

We have a program for recruiting, onboarding, training and developing young professionals focused on three target domains – secondary schools, trade schools and universities – and the following objectives:

  • To meet our long-term demand for students, graduates and young professionals
  • To ensure that graduates have adequate qualifications when they join us
  • To create an environment conducive to professional growth and career development of young professionals
  • To increase the attractiveness of jobs in the mining and steelmaking industries

For this program, we collaborate with approximately 20 specialized universities in Russia (SPbSPU, MISIS, MSMU, VSTU, ChSU, ISPEU), 10 trade schools and the universities of Michigan, Mississippi and Colorado.

In the regions where Severstal Resources has a presence (Vorkuta, Kostomuksha, Olenegorsk), we sponsor specialised tracks in secondary schools, helping students to enter leading specialised universities and later giving them an opportunity to return to their home cities and join Severstal.

In the regions where Severstal Russian Steel has a presence, we host annual career guidance and talent selection events for high school graduates including Word on Steel and Metallurgist contests.

We offer students of our partner schools an opportunity to complete introductory, professional or graduation internships in our businesses. In 2013, we agreed to increase the duration of professional and graduation internships to 8–10 weeks so that in addition to familiarising themselves with technologies and equipment and getting hands-on experience, the interns also receive official confirmation of their qualifications and required clearances. We create an individual development plan for every intern, which is then put into practice together with his or her mentor.

Our educational partnerships also cover the professional development of teachers, scientific research and supplementary leadership education for students. We offer top students an opportunity to join the Severstal Business School. 2013 was the fourth year running our business school. Its students spent several days studying the fundamentals of manufacturing management, the Business System of Severstal, tools of continuous improvement and personal productivity improvement methodologies.

We hosted the first young professionals’ conference in 2013. It was attended by approximately 100 young professionals. They had an opportunity to meet corporate executives, ask questions and discuss development opportunities, and to meet their colleagues from other cities.

“We are looking for active candidates who are able to change with our company and support these changes. It is important that our new employees share our values. We always give preference to well-educated candidates who can learn and share their knowledge with others,” says HR Director of Severstal Russian Steel Andrey Belyshev.
In 2013, we continued our partnership with Cherepovets State University focused on coordinating our joint projects to help us address steelmaking challenges and improve university education in Cherepovets.

We offer comfortable conditions to students and young professionals. In 2013, we opened a new dormitory for interns and new employees of Severstal Russian Steel.

Our career opportunities and job fairs are posted to social networks including LinkedIn, Facebook and VK.


Universum published the ranking of top Russian employers for students and young professionals in May 2013. Severstal moved up 21 places in the technical jobs ranking and 19 places in the business jobs ranking.

In 2013 the steelmaking industry overall started to gain appeal among students and young professionals. However, Severstal significantly outpaces the industry, being the most popular steelmaker in Russia.

This achievement is the result of our effort to create attractive conditions for the internal development of young professionals while our communications events are focused on educating our future employees about career development opportunities available in Severstal.

“Severstal placed higher in this rating than Procter & Gamble, MARS, Coca-Cola Hellenic, McKinsey and Johnson & Johnson – traditional global leaders in technical jobs for students interested in manufacturing careers. This achievement was made possible by concerted effort of our company's management , individual divisions, universities and student communities,” says Recruitment and Employer Brand Manager of Severstal Anna Butova.

Employment of graduates

Another key area of human resources development at Severstal is the employment and retention of graduates. More than 200 graduates from specialist universities joined Severstal’s Russian businesses in 2013.

Our Young Talent programme includes a range of initiatives focused on developing young people’s interest in the steelmaking and mining industries. We work closely with a number of secondary schools and universities. In 2013, top Severstal managers offered training to students from the leading Moscow and St. Petersburg universities.

In January 2014, Severstal and Vologda region signed an agreement on the modernisation of vocational education in the regional steelmaking industry. This document was signed by the Governor of Vologda region Oleg Kuvshinnikov and the Chief Executive of Severstal Russian Steel Sergey Toropov. The key objectives of this agreement are comprehensive modernisation of regional vocational education and supply of talent to the steelmaking businesses in Vologda region. The agreement sets the conditions and amounts of financial support. Severstal will invest approximately 53 million rubles in this program between January 1, 2014, and December 31, 2015.

This programme is not the only example of our successful cooperation with government authorities. In 2012, we launched a new experimental machinery test site at our SSM -Tyazhmash subsidiary.


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

Equal rights, diversity and ethical behavior

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 committed to equal treatment of men and women in the workforce. We currently have more than 30 per cent female employees, which is a high percentage for steelmaking and mining businesses.

In July 2013, employees of Karelsky Okatysh participated in the Creative and Active Working Youth 2013 forum. Karelsky Okatysh supported the event that celebrated the 20th anniversary of Severstal, 30th anniversary of Kostomuksha and 95th anniversary of Karelian trade unions.

The forum focused on social and political involvement of the youth, development of creative potential, and skills exchange with young leaders and young teams on design and implementation of social and economic projects.

Forum participants received first aid training, practiced collaborative work including distribution of social roles and collective decision-making, and familiari sed themselves with the Hope for Family program, a Kostomuksha initiative of Severstal’s Way Home charitable project. There was a dedicated workshop focused on the collaboration of government, businesses and communities, and the role of the media.

Forum participants developed proposals for the Government of Karelia and the City of Kostomuksha, created two social video advertisements on the harm caused by alcohol and the “hope for family”, and established an organising committee for the next youth forum that will focus on social entrepreneurship skills.

Medical programs

Cherepovets Steel Mill offers a comprehensive Health of Severstal medical programme.

Its main objectives include:

  • Improving the availability and quality of medical care
  • Strengthening the first line of healthcare
  • Creating conditions for efficient pre-hospital medical care
  • Preventing diseases
  • Providing high-tech, state-of-the-art medical care

In 2013, Vorkutaugol expanded its corporate private medical insurance programme for employees. The programme budget was increased by nearly eight per cent in 2013, and dental coverage was added.

Vorkutaugol employees covered by the corporate health insurance program have an opportunity to receive high-quality treatment for work-related injuries not only in Vorkuta, but also in the leading healthcare institutions of the Komi Republic, Moscow and St. Petersburg. In Vorkuta, we use the Rossgosstrakh Medicine outpatient clinic. This clinic offers the services of 19 specialist doctors including an endocrinologist, a hematologist, a cardiologist, a neurologist and an otolaryngologist. Approximately four thousand Vorkutaugol employees, about a half of our staff, have used healthcare services under the corporate healthcare programme. They received 47,000 separate healthcare services including specialist advice, massage, a variety of treatments and laboratory tests in a medical centre in Moscow.

The company invested approximately 60 million rubles in the private health insurance program in 2013. We are planning to increase our investment in this program to 66 million rubles this year. In addition to private health insurance, we are planning to complete the construction of a state-of-the-art preventive healthcare facility for our miners. We will allocate more than 100 million rubles to this project. Approximately 80 per cent of Karelsky Okatysh employees used their corporate health insurance in 2013.

A disease prevention plan jointly developed in 2013 with SOGAZ insurance group and North-Western Healthcare Center reduced the number of sick days at Karelsky Okatysh by 10 per cent. The private medical insurance agreement included the operation of onsite medical stations and financing of industrial medicine events.

We offered Men’s Health, Women’s Health, Healthy Spine and Healthy Legs & Feet extended diagnostics programmes based on the results of regular medical check-ups. Itinerant medical services offered by St. Petersburg specialists in Kostomuksha prevented thousands of sick days and helped employees to save money on travel to diagnostics and treatment centres. We paid for eye microsurgery treatments for 29 employees, at leading Russian clinics. As in previous years, insured employees had access to high-quality dental care with state-of-the-art equipment.

Rehabilitation, recovery and health resort treatments are a major component of our private health insurance program. In 2013, our private health insurance coverage was extended to summer trips for employee’s children and rehabilitation for retirees. The Family Vacations programme was another new addition, used by 60 families to visit Nadezhda health resort in Anapa. Employees in high-risk jobs receive annual personalised treatments in the best Russian health resorts and in the North-Western Medical Centre. Last year, 500 employees visited health resorts.

In November 2013, SOGAZ insurance group purchased and installed state-of-the-art ultrasound diagnostics equipment in North-Western Medical Centre to evaluate various organs and systems, including the cardiovascular system. This type of diagnostic testing is available free of charge for all employees of Karelsky Okatysh, CTA and Korpanga.

Olkon launched its corporate private health insurance program in 2007. This program includes outpatient and inpatient services, dental coverage as well as rehabilitation and recovery treatments. More than 400 employees of Olkon used corporate private health insurance services last year. Healthcare services were provided in Murmansk, Moscow and St. Petersburg.

Since 2014, our corporate private health insurance programme has included a 13 million ruble risk-based insurance component.

This year, our corporate health insurance programme will pay for summer trips for the children of our employees to a health resort in Anapa.

Housing programs

Severstal strives to help our employees to secure adequate accommodation. In April 2012, we launched the second phase of our housing programme in Cherepovets, which includes several apartment buildings. More than 2,100 employees improved their housing conditions in 2013. Many families received apartments free of charge.

Karelsky Okatysh launched its housing programme in July 2007. The purpose of this program is to attract and retain high-potential professionals. As of December 2013, 105 employees participated in this programme. We signed 18 mortgage interest reimbursement agreements for housing in Kostomuksha. We paid 6,887 thousand rubles of mortgage interest reimbursements to program participants last year. Last August, we updated the regulations of Karelsky Okatysh housing programme clarifying its conditions from initial application process to implementation of approved applications.

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