ANNUAL REPORT 2017

Talent Development

Severstal’s people are key to its success and the Company continues to invest in developing the skills and careers of all of its teams.

Talent development is focused on a number of areas:

  1. Support for students, young professionals and partnerships with educational institutions;
  2. Career orientation;
  3. Universities;
  4. Career in the Company

1. Supporting students and graduates, cooperating with educational institutions

The recruitment and training of promising students and graduates is important to Severstal. Annually, around 300 colleges and university graduates are offered roles within the Company.

Severstal partners with 20 vocational universities and six schools to develop and train graduates in Russia. The main objective of this cooperation is to ensure that graduates joining Severstal have the necessary qualifications, and that their knowledge and skills meet the evolving requirements of the Company and the industry as a whole.

In August 2017, an agreement was signed between Severstal and the government of the Vologda region to cooperate on improving professional education and personnel support for the metallurgy and machine building sectors. Similar agreements are in place between AO Olkon and the State Autonomous Professional Educational Institution of the Murmansk Region Olenegorsky Mining College, between GBOU SPO of the RK Kostomuksha Polytechnic College and AO Karelsky Okatysh and OOO UKC Perspective.

In 2017 Severstal’s unique leadership programme continued to train up graduates and young professionals with the aim of developing Severstal’s future leaders. During the two-year programme, participants gain work experience at Severstal’s Centre of business system development, in production and two functional divisions. They also work on four projects of their own. Within five to seven years the programme’s participants are expected to enter the talent pool of Severstal’s 100 top managers. In 2017, the progamme enrolled 22 graduates from leading Russian and international universities. The programme received a total of 1,600 applications.

For its second year, Severstal participated in Metal CUP, the Metallurgy and Engineering case studies World Championship. In October 2017 Severstal’s team presented in the finals hosted at the Polytechnic University of St. Petersburg.

In October 2017, Severstal prepared students of the metallurgical college for participation in the international welding and electrical installation competition World Skills Russia.

2. Career orientation

Severstal has been running Company-specific courses in high schools since 2008. These courses are taught by university professors and students are given access to Severstal’s management team and experts throughout the course. They also have an opportunity to take a tour of the university, Severstal’s headquarters and its core steelmaking facility, Cherepovets Steel Mill, during the spring break.

3. Universities

Severstal has run vocational classes in the cities where it operates since 2005. Professors from vocational universities run lectures for school students, who also have the opportunity to spend time with Severstal managers and specialists. During the Spring holidays they also have an opportunity to visit the university, Severstal’s head office and the Cherepovets steel mill.

At the end of 2017 Severstal signed an agreement with Quantorium children’s technopark to improve training for school students preparing for a career in industry. Students at the technopark work on projects which emulate the real day-to-day activity of Severstal employees. In 2017, the Company invested 84 mln roubles in the development and repair of the building.

In September 2017, the School of future engineers vocational training programme was launched at the Severstal school in Cherepovets. A number of school field trips to the Company’s divisions have taken place since October.

In addition, the Cherepovets Metallurgical Museum runs educational activities. At the museum visitors can see the full cycle of steel production, learn about the core professions in mining and metallurgy, try on overalls and attempt to weld steel.

4. Careers in the Company

Career opportunities at Severstal are not limited to a specific department or site. Severstal supports every employee in building not only a vertical, but also an expert and cross-functional career.

In August 2017, Severstal launched its new Career. Restart programme, which aims to identify and develop employees with particularly high potential. 2,335 Severstal employees have already taken part.

The majority of applications were received from operational staff (1,169 applications). Each programme participant will be given a detailed personal development plan.