2.5. Human Capital 

This section describes human capital management, key results of Human resource policy implementation and Occupational safety management.

Nikolay Sheshokin,
Vice-president, Human Resources and Administration

What were main priorities in human resources management in 2016?

In 2016 our activities were aimed at enhancing the company’s efficiency and at growth of labor productivity. As far as the strategic goals are concerned, we should mention that the most important one is creation of a skilled, efficient and united team which can implement the ambitions tasks facing the Engineering Division and which shares the values of the Division and ROSATOM.

What is being done, in terms of human resource management, to enhance the Division efficiency?

Several tasks are being implemented in this direction:

Firstly, the task on increasing the motivation of the Division employees for decreasing the cost and deadlines of facilities construction. At the present time, various tools of both material and non-material stimulation are being developed.

Secondly, significant contribution in increasing of the effectiveness is brought by proposals of the employees within the framework of the production system of Rosatom. Since 2016, the process of work with ideas of employees has been automated. There was launched the industry information system for the employees proposals on improvements – "The Factory of Ideas". The economic effect from proposals of the employees in the reported period was about 9 bln rubles.

Thirdly, classical tools such as training still remain an important component for increasing the effectiveness of labour. Last year, more than 7,500 employees of the Company underwent training and increased their qualification, this is more than 50 % of the total number of the personnel. Special attention was paid to increasing of the competence of the personnel in the area of the English language knowledge. By 2019, almost 4,000 employees of our Division, participating in international projects, must reach the required level of the English language knowledge.

Fourthly, a serious step for increasing the effectiveness of the Division is transfer to flat structures of personnel management. Such systems are being introduced in many state corporations, since they save the budget and increase the effectiveness of the activity. Now we are decreasing the number of management levels, at that the target is four, maximum five levels.

What was done to enhance employee’s project management skills?

We are implementing a corporate program of project management training which includes certification under IPMA, a course of lectures on project management standards in the company and practical tools training on the basis of Multi-D. In 2016 about two thousand people were trained, in 2017 we will continue training our specialists on the basis of these programs.

2.5.1. Human Capital Management

Human (human resources) capital management includes contributions to the refresher training of employees, work with the staff pool and labor market, as well as the programs of personnel motivation and support. The Engineering Division HR management system is based on perception of the Company’s strategic objectives and business priorities.

The Strategic HR Management Objectives in 2016–2018

  • Building up a competitive team of designers, leaders in operational efficiency and leaders in international globalization.
  • Developing a result-oriented corporate culture.
  • Enhancement of HR management processes efficiency.

Building Up a Competitive Team of Designers, Performance Leaders and International Globalizer Leaders

The main activities within the scope of the strategic goal:

  • Implementation of industry and company programs aimed at identification, development and retention of leaders in the strategic protects.
  • Enhancing the efficiency of participants of international projects by developing the competence of language proficiency;
  • Retention and handing over of key knowledge and skills with the help of couching system, relocation of the key specialists from completed facilities to new facilities under construction.
  • Development of competences for reduction of time period and cost of designing and construction and enhancement of their quality.

Developing a Result-oriented Corporate Culture

The main activities within the scope of the strategic goal:

  • Development and implementation of involvement management programs.
  • Maintaining uniform principles and approaches to human resources management in all the regions of operation considering the local specific features, in strict compliance with the applied legislation.
  • strengthening the value management system.
  • Implementation of projects aimed at internal competition and timely acknowledgement of the employee’s achievements.

Enhancement of HR Management Processes Efficiency

The main activities within the scope of the strategic goal:
  • Transforming the human resources management functions into a full-scale business-partner.
  • Efficient organization of human resources management system, improvement of interaction with employees via further implementation of PSR projects.

Ensuring a high performance work organization, the Division faces the task to transition to flat organizational structures. Flat organizational structures are characterized by a low number of layers of management levels and a broad scope of management functions. The target status of the Division is maximum 4 layers of management.

Within the framework of this task implementation, flat structures have been approved in JSC ASE EC and in branch offices of NPP construction of the Engineering Division. During a year the structures of construction companies within the management scope have been modified.

The norms and rules of business relations in the Division is defined in the ethical code of employees’ official behavior. The Code provide to each employee an idea about the values and the principles of ethic behavior which determine the relations between the employees in the team and with partners. The Code serves as a tool for preventing possible violations and conflict situations.

The key element of the development of the Division of maintaining human capital due to permanent professional training of the employees. The training system embraces all the levels of the personnel and envisages regular assessment of effectiveness.

Human (human resources) capital management includes contributions to the refresher training of employees, work with the staff pool and labor market, as well as the programs of personnel motivation and support. The Engineering Division HR management system is based on perception of the Company’s strategic objectives and business priorities.

2.5.2. Results of Human Resources Policy Implementation

Results of Human Resources Policy Implementation

Trend of the Total Manpower, pers.*

* Total manpower means the aggregate value of the payroll staff, external part-timers and employees on civil law contracts as of the end of the year.

The manpower change is caused by completion of works at the construction project sites and organizational changes in the Division (including JSC ATOMPROEKT merger), by measures undertaken to enhance the labour productivity and business efficiency.

(GRI-102-8)
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Total Manpower of the Division in the Breakdown by Gender, Age and Employees Categories, pers
Employees categories TOTAL Share of employees under 35 Under 35 y.o 36–50 y.o Over 50 y.o
planned actual m f total m f total m f total
Company management2,3492,08719%290105395595305900566226792
Specialists8,8607,96849%1,8851,9853,8709411,3812,3227181,0581,776
Other office staff12711830%431356374363440
Workers5,1334,34635%1,3781341,5121,4081261,5341,1221781,300
Other*264333%9514134177512
Total16,49514,56240%3,5662,2605,8262,9631,8534,8162,4191,5013,920
* “Other” category refers to the employees recruited on the basis of civil law contracts.

Remuneration Policy

The main objective of the remuneration and motivation system is to provide a decent salary level in JSC ASE EC for achievement of the Company’s strategic and current goals.

According to the Labor compensation regulation (implemented as per the Unified standard salary system in ROSATOM) valid in 2016, unified principles and approaches to arrangement of labor compensation and incentive mechanism are applicable in JSC ASE EC.

The issues related to labor remuneration of JSC ASE EC President is regulated by the Labor Contract, decisions of JSC ASE EC Board of Directors, JSC ASE EC Labor compensation regulation.

In JSC ASE EC separate subdivisions located beyond the Russian Federation, the Labor compensation regulation is ensured taking into account legislation requirements of foreign states.

Salary and Other Employee Benefits, mln RUB

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Average Salary, thousand RUB*
Name of legal entity Branch office/representative office Region Average monthly salary, thousand RUB
JSC ASE ECHeadquartersNizhny Novgorod Region133
JSC NIAEP Representative Office in the Republic of BelarusThe Republic of Belarus59
Volgodonsk branch officeRostov region62
Kursk branch officeKursk region73
Moscow Branch officeMoscow128
JSC AtomenergoproektMoscowMoscow148
Maloyaroslavets Survey Branch of JSC Atomenergoproekt (MSB)Kaluga region90
Balakovo Design and Survey Branch of JSC Atomenergoproekt (BDSB)Saratov region116
Volgograd Design Branch of JSC Atomenergoproekt (BDB)Volgograd region104
Kurchatov Design and Survey Branch of JSC Atomenergoproekt (KDSB)Kursk region89
Desnogorsk Design and Survey Branch of JSC Atomenergoproekt (DDSB)Smolensk region81
Novovoronezh Design and Survey Branch of JSC Atomenergoproekt (NDSB)Voronezh region116
Novovoronezh Branch of JSC Atomenergoproekt – Directorate of NVNPP-2 construction (NB-DC)Voronezh region101
Novovoronezh Branch of JSC Atomenergoproekt – “Don” hotel (NB-Hotel)Voronezh region39
VNIPIET Branch of JSC AtomenergoproektSaint-Petersburg121
JSC ASEJSC ASEMoscow133
Construction Division at Kudankulam NPP site, Representative office of JSC ASE in India (Mumbai), Representative office at Kudankulam NPP siteIndia178
Representative office of ASE JSC in Iran (Tehran)Iran123
Representative office of JSC ASE in China (Lianyungan), Representative office of JSC ASE in China (Beijing)China128
ASE JSC Branch Office in the People’s Republic of BangladeshBangladesh142
JSC ASE Branch Office in the Republic of TurkeyTurkey235
ASE JSC Representative Office in Vietnam (Hanoi)Vietnam227
ASE JSC Branch Office in Belene (Bulgaria)Bulgaria331
JSC ASE Representative Office in Hungary (Budapest)Hungary265
JSC ASE Representative Office in Slovakia (Bratislava)Slovakia172
JSC ASE Representative Office in the Republic of BelarusThe Republic of Belarus78
ASE JSC Branch Office in OzerskChelyabinsk region83
JSC ATOMPROEKTJSC ATOMPROEKTSaint-Petersburg130
* More detailes about average salary you can see in Annex 11.

KPI System

Bonuses are paid to employees based on KPI performance once per year and within the limits of the salary fund with account of results of the Company activities for the year that ended.

The Company’s KPIs are described in the JSC ASE EC President’s KPI Chart and cascaded for subordinated workers.

Employee’s key targets and KPIs shall ensure implementation of targets and KPI’s of the Organization or a higher position.

KPIs are established for a year according to key targets of the employee with account of the functional loads.

KPIs are established necessarily for managers of all levels of management. Availability of the approved KPI Chart is a prerequisite for payment of the bonus for managers.

Individual KPIs can be established also for specialists, white and blue collar workers.

The annual KPI bonus is paid upon the performed evaluation and approval of its final rates according to the Organization procedure as a rule in May-April of the year following the reporting year.

Approaches to Top-Managers Motivation to Increase Their Work Performance

Top management salary approach is similar to the one of other employees of the Company.

Level of Personnel Involvement

GRI (102-38, 102-39)
Scrollable table
Ratio of the Maximum and Medium Remuneration of Employees
Oraganization Ratio of the total annual remuneration of the bestcompensated official of the organization in each country, where the relevant business activity is carried out, to the average annual remuneration of all employees (without best-compensated official of the organization) in the same country. Ratio of the growth percentage of the total annual remuneration of the bestcompensated official of the organization in each country, where the relevant business activity is carried out, to the growth percentage of the average annual remuneration of all employees (without best-compensated official of the organization) in the same country.
JSC ASE8.61.1
JSC ASE EC37.51.2
JSC Atomenergoproekt6.0–2.5
JSC ATOMPROEKT9.11.1

Results of Human Resources Policy Implementation

Since 2011 the Engineering Division organizations have been taking part in the industry research of employees involvement level. The involvement (employees’ personal interest in achievement of the company’s strategic goals) has a direct impact on financial and economic results. Following the research results of 2016 covered over 2,700 employees of the organization (19.7 % of the total manpower), the level of the personnel involvement amounted to 78 % that is 3 % more than in 2015.

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Level of Personnel Involvement by Employees Categories, %
Employees categoriesJSC ASE ECJSC AtomenergoproektJSC NIKIMT-Atomstroy
Top executive managers10010067
Mid-level executive managers808476
Specialists817472
Workers777375
Source: Aon Hewitt Employee Research data base.

Following the research results the Engineering Division’s advantage remains to be the employees satisfaction by line directors and colleagues. The Division’s employees are satisfied with the employer’s reputation, availability of resources for works performance, in the employees’ opinion the top management carries out its control functions in the efficient way.

As within the previous research, insufficiently high balance between the work and private life, as well as insufficient satisfaction of the employees concerning the employer’s acceptance of their merits and contribution to work may refer to the area of the Engineering Division development.

In general, in terms of involvement the Division is still within the effectiveness area along with the world leaders of the economy, that proves the constant and methodical work in the field of personnel management, implementation of new involvement control mechanisms, interest of the Division’s all employees in improvements.

In 2016 in order to create a unified corporate culture and improve the personnel involvement level:

  • based on conducted research of employees involvement of the companies not included in the industry inquiry perimeter, each organization developed and implemented involvement increase plans;
  • “AKCNOWLEDGMENT” program has been launched – a quarterly through general division system of constant contest and acceptance of best employees’ merits;
  • all workers at the construction sites without access to the corporate IT information resources are informed on the possibilities and prospects through the corporate gazette “Bulletin of Construction sites” and Info-terminals (pilot – Belarus site). Expansion of scale and content of existing resources, as well as transfer to the unified corporate information Portal is planned for 2017.

Training of line management in the field of involvement management tools, generation of involvement increase local plans are expected in 2017.

In 2017, creation of the unified system of tenders, which allows training the specialists for the industry all-Russia and professional skill championships, is planned.

The Work Cycle with Graduates Comprises Three Consecutive Steps

Personnel Assessment

The Performance Effectiveness Management (PEM) System is a main tool for assessment of the employees efficiency in relation to the Company’s general goals.

In 2016 managers and specialists of all companies of the Division were subject to assessment in terms of corporate values, EPM process covered 100 % companies of the Division. In a number of the Division’s organizations, according to the employee’s performance assessment results, the system of individual material incentives may be reviewed and a decision may be made on transfer to a higher position or inclusion in the staff pool.

Personnel assessment results are important for both the Engineering Division management and for each employee. The assessment process support by top and line management of the Division is a key factor for success of all assessment activities to be conducted.

Involvement of Graduates and Cooperation with Higher Educational Institutions (HEI)

Achievement of strategic goals requires from the Division companies a flexible and system approach to involvement and retention of young specialists.

The Engineering Division keeps on actively cooperating with higher educational institutions. Reference HEIs covers over 50 % of the total company’s demand in young specialists. In order to keep and strengthen the positions in the field of nuclear power plants design and construction, the Division’s organizations recruit young specialists on an annual basis. In 2016, 65 graduates were employed in JSC ASE EC, JSC Atomenergoproekt and JSC ATOMPROEKT.

The Work Cycle with Graduates Comprises Three Consecutive Steps

Human Resources of NPP Construction Projects

One of the primary goals of human resources management is arrangement of the manpower accounting, planning and movement control within the construction projects.

The construction sites are provided with labor force under the supervision of JSC ASE EC. At a number of NPPs under construction electronic accounting systems of construction and assembly personnel are implemented, which allow monitoring of the personnel engaged at the construction site. Quickly and effectively monitor the trend of the personnel manpower and timely response to the situations minimizing the risk of staff deficiency at the main construction facilities.

In 2016 the following regulations for system management of these processes at the level of the Division were developed: “Planning of human resources manpower within the construction projects” and “Accounting and control of the personnel working time within the construction projects”.

The unified system for demand calculation and manpower plans approval, as well as for human resources accounting and control is implemented in principal projects in Russia and on the territory of the Republic of Belarus. The work on this system is adopted for distribution to foreign projects is in process.

The production tasks over the 2014–2016 period were completed through annual average engagement of over 20 000 persons from contracted organizations that were simultaneously employed at the Division key construction sites. In 2016 in comparison with 2015 at a number of sites the decrease of manpower of contracting and subcontracting organizations took place. Such decrease was planned and caused by the construction cycle to be at the stage of completion and scope of works at Novovoronezh-2 and Rostov NPP construction sites to be reduced. At the same time growing of contracting and subcontracting organizations human resources involved in the projects being in the active construction phase: Belarus NPP – CSO total manpower in 2016 was increased by almost 20 % in comparison with the previous year, Rooppur NPP – the manpower in 2016 was increased by 122 %.

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Share of Contractors and Subcontractors Employees Engaged in the Key Construction Project and Employed from Local Residents
Construction sites 2014 2015 2016 Change of the staff number in comparison with the last year, % Employment trend of local residents (%)
Number of subcontractor organizations’ personnel Local residents share of the total number, % Total number of contractor organizations’ personnel Local residents share of the total number, % Total number of contractor organizations’ personnel Local residents share of the total number, %
JSC ASE
Bushehr NPP (Iran)*406637541952–48.0–2
Akkuyu NPP (Turkey)667979611794+21.0–2
Rooppur NPP (Bangladesh)*15991480951,06593+122.0–2
JSC ASE EC
Rostov NPP7,123816,362794,89190–23.011
Kursk NPP770718476881081–4.013
Belarus NPP3,915797,266798,69572+20.0–7
JSC Atomenergoproekt
Novovoronezh NPP-27,601607,961595,80361–27.0+2
Total manpower of contractors and subcontractors engaged in construction19,97470.823,38871.021,57574.0–7.8+3

Local Residents Employment

In 2016, the average 70 % of the total number of contractor and subcontractor manpower employed in the construction of the key projects were accounted for by permanent residents in the region hosting the construction site. Growth of this indicator by 1 % in comparison with 2015 is caused generally by reduction of the contractors’ seconded personnel share at the projects under completion (Novovoronezh-2 NPP, Rostov NPP). In case of planned reduction of the manpower at site the contracting organizations minimize a number of workers involved on a rotational basis from other regions (to minimize travel expenses, housing rent expenditures for seconders, compensation of transportation to the place of work and back). For projects under active stage of implementation (for instance, Belarus NPP) a share of workers hired by contracting and subcontracting organizations out of local residents representatives for the previous year was decreased by 7 %. Generally, it is connected with the development turn at site of separate subdivisions of the Division’s own resources and large Russian construction and installation organizations, which attract highly professional personnel from Russia.

The implementation of NPP construction projects is focused on the involvement of resident population. Creating new fairlypaid jobs is an incentive to promote employment and to reduce the outflow of able-bodied workers from the area of their residence.

The implementation of NPP construction projects is focused on the involvement of resident population. Creating new fairlypaid jobs is an incentive to promote employment and to reduce the outflow of able-bodied workers from the area of their residence.

Public Counseling Offices

Public counseling office – a functional structure on consolidating involvement of human resources to the site in the construction region. The main task implemented by means of such structure – attracting and selection of engineering and technical specialists and qualified workers at the local market to be employed within own and subcontracting organizations.

Scrollable table
A Number of the Employed Personell Out of Applicants of the Public Counseling Offices, pers.
Name of legal entity201420152016
JSC ASE, Public counseling office (Ozersk, FSUE PA Mayak)
Number of applicants554
Number of the employed150
JSC ASE EC, Public counseling office (Volgodonsk, Rostov NPP)
Number of applicants2,3391,171506
Number of the employed3626367
JSC ASE EC, Public counseling office (Ostrovetz, Belarus NPP)
Number of applicants763
Number of the employed105
JSC ATOMPROEKT, Public counseling office (Novovoronezh, Novovoronezh-2 NPP)
Number of applicants315202
Number of the employed4520
Total in the Engineering Division (applicants)2,8931,4861,471
Total in the Engineering Division (employed)512108192

For the last three years, for ensuring demands in labor resources, three Public Counseling Offices were opened at the Division’s facilities.

In 2014, the Public Counseling Office was opened in Ozersk town, Chelyabinsk region, through which the necessary personnel was hired to perform production tasks at FSUE PO Mayak facilities. In 2015, the Public Counseling Office was opened in Novovoronezh to ensure demands in labor resources at Novovoronezh-2 NPP construction site. Since May 2016, in Minsk, the Public Counseling Office of the general contractor for Belarus NPP construction started its operation.

The practice of opening of Public Counseling Offices was developed in the Division in 2008. Except for the main goal – personnel recruitment for NPP construction, opening of the Public Counseling Office in the construction region contributes to the increase of information awareness of the local population about the opportunity to be employed for NPP construction and has a favorable impact on the region employment level on the whole. For the whole period of Public Counseling Offices operation (since 2008), there were over 32,000 applicants, 5,208 of them were employed.

Personnel Training

In 2016 in training centers of ROSATOM and other organizations, as well as by means of internal training, 7,614 employees of the Company confirmed and improved their qualification, that amounts to 51.2 % of the total manpower.

As per ROSATOM methodology, training is distributed into priorities, the key of which are obligatory training in accordance with the legislation requirements and industry training and development programs (Training for the industry management staff pool participants, training for managers by “Management schools” programs etc.).

Particular attention is given to personnel training in the field of project management mechanisms according to IPMA international standards, use of Agile methodology. In the reporting period 234 employees were trained and certified in compliance with IPMA standards. 28 technical specialists of JSC ATOMPROEKT were trained according to Design solutions optimization program using Agile methodology.

Working at the market of high technology requires full compliance with environmental, industrial and radiation safety at the construction facilities. In 2016 external training was conducted for 105 managers and specialists of the Division under waste treatment programs, safety culture, environmental management systems.

89 employees of JSC ATOMPROEKT, JSC Atomenergoproekt were trained in the field of fight corruption policy and methods in 2016.

The Engineering Division takes active part in the project of Professional standards development. Professional standard is the characteristics of the qualification (knowledge, skills, professional skills and expertise) required for the employee to perform specific professional operations. In 2016 five industry professional standards were developed in the field of nuclear power industry construction:

  • A specialist in the field of international tenders and pre-contract works.
  • Economist in the field of projects efficiency assessment in terms of Nuclear Facilities construction.
  • Design-engineer of the reactor plant.
  • Process engineer of thermal and installation works production at the NF.
  • A specialist in the field of quality control of construction and erection works at NPP.

With regard to the mentioned professional standards, positive decisions are made by the Working group on the issues of arrangement and development of professional standards in the field of nuclear industry construction and by the Council on professional qualifications in the field of nuclear power. In 2017 drafts of the developed professional standards will be submitted to the Ministry of Labor and Social Protection of the RF to be agreed and approved.

Expenses for Employees Training in 2016, mln RUB

Scrollable table
Number of Trained Employees, pers.
Name of legal entity2014
actual
2015
actual
2016
planned
2016
actual
(2016–2015) •
• 100/2015, %
2017
planned
JSC ASE2101207049–59.2480
JSC ASE EC1,3231,4231,3671,57010.31,870
JSC Atomenergoproekt1,7021,1141,1001,24611.81,200
JSC ATOMPROEKT*1,6251514641904–40.31,198
Trest RosSEM LLC102423370321–24.1390
PJSC Energospecmontazh5932,1742,2002,51015.52,000
JSC NIKIMT-Atomstroy6481,1909501,014–14.8950
Total4,5786,4446,6987,61418.28,088
* Trest RosSEM LLC was included in the Division since the 3d quarter of 2014, the data in 2014 are provided for the 3d and 4th quarters, JSC ATOMPROEKT is within the management circuit since 2016.
Decrease in the number of trained employees in some organizations of the Division is caused by reduction of the manpower in connection with the completion of construction, as well as with functions consolidation and standardization.

Work With Staff Pool

Career and succession management is a process aimed at providing availability of trained successors for senior positions of the Engineering Division.

To minimize HR risks and within the career and succession management process implementation, in the beginning of 2016 a succession plan for key positions was developed. The succession plan includes 21 positions and 36 successors for key positions of all enterprises of the Division. Also, the effective tool to reduce staff losses is a succession plan for managerial positions up to the level of the head of Division. This plan is updated on a quarterly basis and enables to get in a prompt manner the current human resources information.

The successor’s status is obligatorily accompanied with an individual development plan (hereinafter – IDP). FFollowing the results of successors IDP development, a concept of the training program for 2017 – “Functional Academy” is developed, which includes training in the field of financial, corporate legislation issues, etc. In order to keep and transfer key knowledge and skills, a coaching and rotation system was introduced for key specialists, which implies rotation from completed facilities to new ones under construction (including within implementation of the individual development plan for a planned position).

Development of managerial staff pool is a key element of career and succession management.

The main objective of the staff pool is to provide the Engineering Division with managers and experts having expertise in efficient task performance, establishment of a common corporate culture of management meeting the strategic goals and improving the management efficiency.

In the Engineering Division a unified industry system of the staff pool development is being successfully implemented for different levels of positions: “ROSATOM Talents” – for initial management level, “ROSATOM Capital” – for middle management level and “ROSATOM Heritage” – for senior management level.

In 2016 the industry staff pool comprised 237 people.

The appointment to senior, middle and initial managerial positions in the Division’s organizations is performed with consideration for priority given to the trained employees, as a rule, out of the staff pool. Efficiency of the administrative skills pool is approved by the career development of the participants: In 2016, 38 % of high potential employees of the Engineering Division have been nominated to new positions.

Engineering Division’s Need for Skillful and Qualified Staff

In 2016 the function of personnel recruitment was unified for all the companies of the Engineering Division and was centralized on the basis of Human Resources and Recruitment Division of JSC ASE EC. Personnel recruitment is performed in accordance with unified Standard STO 8841271.278.027-2016 “Organization of personnel recruitment” defining the procedure of recruiting personnel.

Applicants for the job positions of specialists and managers are selected on the competitive basis, and under otherwise equal conditions those applicants are given preference in the contest that demonstrate the highest proficiency required by the vacant job. Due to active works in implementation of foreign projects, when selecting the personnel an extra priority in placement is given to English-speaking candidates of the intermediate or higher level.

Preliminary forecast for filling the vacancies in 2017 was developed on the basis of the needs of the companies of the Division. The Division’s growing demand for the competent personnel is connected with the planned increase in staffing of the units involved in several foreign projects, namely Project Divisions and branch (representative) offices at the construction sites (Rooppur NPP, Bushehr-2 NPP etc.) and in Russia-based projects (Kursk-2 NPP). Besides, due to implementation in 2017 of the program of recruitment of graduates of the main educational institutions of ROSATOM in companies of the Engineering Division, the share of such specialists in the total forecasted demand is 31.5 %.

During the last three years 563 students underwent practical training in companies of the Engineering Division. Every year most of such students undergo practical training in designing units of the Division (designing institutes JSC ASE EC, JSC Atomenergoproekt, JSC ATOMPROEKT) in accordance with their training specialization.

Of the total number of the students who underwent practical training in 2016, 42 % were selected for employment (17.9 % were employed, 28.3 % – preliminarily selected to be employed upon completion of higher education).

The Engineering Division established criteria for selection of graduates and young specialists for recruitment in companies of the Division, among them:

  • good academic performance (average grade not less than 4.5);
  • knowledge of the English language (intermediate level and higher);
  • participation in industry and Division projects for students (TeMP tournament of ROSATOM, student construction brigades for the nuclear industry, corporate scholarship programs).

The results of practical training give the possibility to take the final decision about the employment of a graduate (in case of compliance with the target criteria of graduates’ selection).

Our Need for Skillful and Qualified Staff

Scrollable table
The Number of Students Who Underwent Practical Training and the Number of the Students Who Were Given a Job Offer Upon the Results of Such Practical Training, persons
Name of legal entity201420152016Δ 2016–2015, %2017*, forecast
JSC ASE EC
The number of students who underwent practical training1099996–390
The number of students who were given a job offer upon the results of practical training171920+521
Preliminary selection upon the results of practical training, to be employed in the future (after completion of education)151515
JSC Atomenergoproekt
The number of students who underwent practical training171335+16935
The number of students who were given a job offer upon the results of practical training64+100
Preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)111331
JSC ATOMPROEKT
The number of students who underwent practical training406943–3840
The number of students who were given a job offer upon the results of practical training58804
Preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)411
PJSC ESM
Number of students who have undertaken an internship977010
The number of students who were given a job offer upon the results of practical training
Preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)7
JSC NIKIMT-Atomstroy
The number of students who underwent practical training1043–257
The number of students who were given a job offer upon the results of practical training31–67
Preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)2
Trest RosSEM LLC
The number of students who underwent practical training2–100
The number of students who were given a job offer upon the results of practical training2–100
Preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)
Total in the Engineering Division (that undertook internship)185194184–5182
Total for the Engineering Division – recruited283233+325
Total for the Engineering Division – preliminary selection upon the results of practical training, with recommendation to be employed in the future (after completion of education)302952
* The forecast for 2017 was developed on the basis of the companies’ plans for inviting students for practical training.
Scrollable table
The Number of Students of Higher Educational Institutions and Specialized Educational Institutions of Target Training that Were Recruited by the Engineering Division of Rosatom Upon Completion of Education
Name of legal entity201420152016Δ 2016–2015, %2017 planned
JSC ASE EC
Number of students educated according to programs of target training506352–18.052
The number of students who were given a job offer332–33.02
JSC Atomenergoproekt
Number of students educated according to programs of target training254143+5.050
The number of students who were given a job offer
PJSC ESM
Number of students educated according to programs of target training987–13.010
The number of students who were given a job offer
JSC NIKIMT-Atomstroy
Number of students educated according to programs of target training443–25.03
The number of students who were given a job offer
Total for the Engineering Division – educated according to the target training programmes88116105–9.5115
Total for the Engineering Division – recruited332–33.02

Employer-sponsored Education

Low percentage of employed students is due to the fact that most students with whom employer-sponsored education contracts were signed, are still studying, they may be employed only in the future, after graduation. Besides, such graduates shall also comply with the general compulsory criteria used for selection of graduates and young specialists. If a graduate fails to comply with the compulsory criteria, his/her employment may be disapproved.

Occupational Safety Management

The Company’s priority goal is to ensure occupational health and safety of its employees. To meet this goal, the Company improves the occupational health and safety management system, take precaution measures to prevent industrial injuries, improves labor conditions, organizes training for managers and specialists to improve their knowledge about occupational safety. The employer’s activities related to occupational health and safety is reflected in the collective employment agreement.

Occupational Safety Management in JSC ASE and Companies of the Division

(GRI 403-2, 403-3, 403-4) To ensure occupational safety during the performance of subcontracted works, the contracts with subcontractors include compulsory requirements on occupational health and safety.

The typical subcontract stipulated the procedure of interaction between the parties, responsibility and obligations of the subcontractor in the field of occupational safety in accordance with which the companies of ROSATOM have the right to control the performance of the works under the contract and check the compliance with the occupational safety requirements.

Claims related to violation by a subcontractor of its obligations under the contract, are prepared and made in accordance with “Procedure for claim work and enforcement activities in JSC ASE”.

Heads of the structural units located on the territory of construction facilities shall perform measures aimed at occupational safety in relation to contractors, including:

  • Assessment of occupational safety in contractors’ companies.
  • Organization of interaction between the occupational safety Division of its own unit and the contractor’s companies, before the commencement of the works at the construction site.
  • Informing the contractor’s companies about accidents and occupational diseases during the performance of works at the construction facility.
  • Providing information to the contractor’s company and (or) their employees about possible hazards and risks related to occupational safety at work places, initial workplace instructions.
  • Control of completeness and timeliness of performance of occupational safety requirements stipulated in OHSAS of ROSATOM and the terms of the contract, during the work performance on the site.

Collective agreements cover 100 % of JSC ASE EC, JSC Atomenergoproekt and JSC ATOMPROEKT emploees. The collective contract is not available in JSC ASE. Therefore, the payments are made according to the order. The order covers all the emploees.

Scrollable table
LTIFR in Key Companies of the Division, %*
Company201420152016 planned (allowable limits )20162017 planned (allowable limits)
JSC ASE0.560.000.190.000.19
JSC ASE EC0.000.380.260.000.35
JSC Atomenergoproekt0.000.060.000.000.00
JSC ATOMPROEKT0.000.200.280.000.28
* For more information regarding injury rate including LTIFR, see Annex 10.

2.5.3. Social Policy

In accordance with the Regulations on non-state pension provision of employees of JSC ASE EC, the company is the guarantor of non-state pension provisions in terms of financing of nonstate pensions until award of pension, and non-pension fund Atomgarant is the guarantor of payment of the awarded non-state pensions.

For a number of years the companies of the Division have concluded contracts with medical insurance companies for organization and payment for medical aid for the employees. Employees of the central offices, branches and representatives offices have medical insurances on the basis of uniform programs. Employees can buy medical insurances for members of their families at corporate tariffs.

The employer provides insurance to the employees of the Division against accidents and professional diseases. All the employees who are seconded abroad, are provided with insurance policies at the expense of the employer.

The employer compensates partially the following expenses of the employees:

  • children’s stay in recreation camps and recreation centers;
  • vacation in recreation centers and tourist camps;
  • health resort treatment.

The expenses for medical care of the employees, including expenses for voluntary medical insurance, health resort treatment and recreation, increase every year. Special attention is paid to preventive care and early diagnosis of severe diseases, including cardiovascular diseases, flue, cancer, etc.

The employer provides information to the employees about the regulatory requirements to labor conditions at workplaces, about necessary and compulsory individual and collective protection means for disease prevention. All the employees of the company have access to medical examination, timely diagnosis and treatment of diseases. Flu innoculation of the employees is provided every year. Employees and their children are provided with guaranteed financial aid for paid medical services in case of severe diseases. Preventive treatment and sports events are arranged for the purpose of health maintenance.

Social guarantees to veterans are envisaged in the regulatory documents of the Division. A program of social support of pensioners is ongoing in the company. The program envisages onetime and monthly welfare payments to pensioners. The company veteran councils uniting over 2 ,300 veterans are involved in active work. The Group of Companies has spent about 43 mln rubles for social aid to veterans during the reporting period.

The veterans are involved in the organization of recreation for pensioners, participation in important events in the life of the company. Veterans are always welcome at company’s festive events, they do sport in the company gym. Traditional river tours on the Volga are organized every year for veterans. Veterans of the Great Patriotic War receive bonuses up to 50,000 rubles for the Victory Day every year.

Scrollable table
Monthly Minimal Contribution to the Program of Non-state Pension Provision
The participant’s age on the date of joining the Program Monthly minimal contribution of the participant (% of the basic salary) Monthly contributions of the Company* (% of the basic salary)
from 18 to 29 years0.81.5
from 30 to 35 years1.02.5
from 36 to 40 years1.33.5
from 41 to 45 years1.54.5
from 46 to 50 years1.77.5
51 years and older2.08.5
* The amount of monthly contribution of the Company cannot exceed 8000 rubles.
Scrollable table
Factor of Increase of the Company’s Pension Contribution
The participant’s length of services, years Factor of increase of the Company’s pension contribution
From 3 to 71.05
From 8 to 151.10
From 16 and more1.15
Scrollable table
Expenses for Voluntary Medical Insurance, mln RUB
Company2014
actual
2015
actual
2016
actual
2017
planned
JSC ASE20.8952.2351.1149.62
JSC ASE EC6.786.524.655.51
JSC Atomenergoproekt48.0027.9141.3036.55
JSC ATOMPROEKT38.1837.0031.8935.97
TOTAL75.6886.67128.96127.66
(GRI 403-1)

From 2013 JSC ASE EC has been implementing the program of non-state pension provision. Over 150 persons are members of this program. Minimal personal and company contribution depends on the age and labour expirience. The company’s expenses for the program in the reporting period totaled in 14.7 mln rubles.

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