Our people

Our employees are fundamental to the successful execution of our strategy and the delivery of our sustained growth as a Company. We understand the importance of our people and we stick to a policy of attracting and retaining highly qualified professionals, in an inclusive workplace with great opportunities for staff to develop competencies and build their careers.

In 2014, our key personnel management initiatives were focused on increasing productivity and developing a strong customer-oriented culture. To address these issues the company has launched two long-term programmes called the Personnel Transformation Programme and the Personnel Structure and Capacity Enhancement Programme.

Headcount and Personnel Strengths

Diversity is a key pillar of the successful development of our team and our business, and one that provides us with an opportunity to better understand our clients and their needs. We treat people fairly and offer equal opportunities to our employees regardless of race, nationality, gender, age, marital status, disability, and political or religious beliefs. 44% of Rostelecom’s workforce is made up of women, who also take up 10% of all management positions. The average age of Rostelecom employees is 43.

Rostelecom employed approximately 158,900 people including subsidiary staff as at the year end of 2014, which is almost 4% lower than in the previous year. In terms of the division of labour, most are employed in technical and sales while 18% have administrative roles.

Headcount dynamics in 2014 were influenced by a number of organisational changes related to the implementation of Rostelecom's strategic business projects, which include enhancements made to the model we use to manage our telecommunications networks, the restructuring of our retail sales chain as well as improvements made to processing and service functions. The unification of our IТ-landscape and the transfer of back-office operations to our General Multiservice Centre also had an impact.

Substantial structural changes that we continue to roll out result from our transition to a target management model, which we launched in October last year. The organisational structure we are shaping is going to provide a basis for the development of Rostelecom’s strategic business model as a content services and technologies provider. The changes are also driven by the transition to the region- and segment-based business management principle and are focused mainly on Rostelecom’s commercial, technical and IT departments responsible for the development of the Company’s three key business directions.

Personnel Transformation

The aim of the Personnel Transformation Programme is to create a workplace setting that encourages superior performance and productivity and increased staff engagement towards realising the benefits of delivering the Company's strategic goals.

Motivation and rewarding performance

We aim to reward people based on their performance, potential and contribution to our success. Оne of the crucial targets of the programme is to establish an employee reward scheme that encourages employees to grow and their performance can be assessed according to their actual achievements.

One of the programme’s key achievements in 2014 was to increase the average monthly salary for a Company employee to 35,000 Russian rubles, higher than the average salary in Russia and the majority of regions where Rostelecom operates. This became possible thanks to a salary indexation and remuneration review following a comprehensive personnel assessment. The aim of the indexation plan was to bring the wages of lower-paid staff in line with the market, with salary increases also reflecting performance assessments designed to reward employees who achieved outstanding results. While average salary indexation did not exceed 7%, the targeted remuneration increase of highly efficient specialists could amount to up to 20%.

Personnel assessment, training and development

We want people to develop their careers at Rostelecom and enhance the skills and talent needed to help Rostelecom grow its business.

We regularly assess the learning needs of staff so that priorities are identified early on and learning plans can be designed to support Rostelecom’s business strategy and ensure that our staff is motivated and that employee training courses are impactful in terms of career and professional development.

A model of corporate competencies was developed in 2014, from which a number of comprehensive training programmes, tailored for the needs of the various layers of management has been formed, which incorporates training already available at Rostelecom: from distance courses to Mini-MBA programs. In addition, individual development plans (IDP) were widely used in 2014 by employees to help them plan their development process and schedule the required training courses. A total of 46,946 people participated in corporate training during the year.

Cross-functional projects and engagement programmes

In 2014 a number of events took place under the Personnel Development Programme aimed at increasing personnel engagement to support Rostelecom's strategic goals and facilitate the implementation of changes in the Company's internal environment.

Efficiency and possessing a client-oriented approach are key components of Rostelecom's new corporate culture, stipulated in the Corporate Conduct Code drawn up in 2014. Rostelecom’s values as specified in the Code, as well as in how the Company interacts with customers, partners and employees help enhance decision making processes and shape effective communications at all layers of the organisation.

On top of traditional corporate events, the ‘Open Space’ concept was implemented in early 2014 to create a single cross-functional information portal within the Company which all Rostelecom employees, customers and partners would have access to. 766 events were held as part of the Open Space project during the year, and more than 41,000 people took part.

Two important crowdsourcing initiatives were also introduced last year to provide Rostelecom employees with the opportunity to contribute in a joint search for solutions for vital business tasks and come up with their own ideas to improve the Company's business processes. The two initiatives were named: ‘A portal for innovative ideas’ and ‘Capturing the broadband access market: collective mind’.

Social safeguard

Programmes aimed at retaining talent and providing social support for employees form an important part of HR management. Under these programmes, employees not only receive social benefits and guarantees as required by the Russian Federation law (including pension, medical, accident and other kinds of insurance), but are also offered additional benefits according to the collective labour contract and the Company's social programmes.

In general the additional social support measures set forth in the collective labour contract include: optional medical insurance (over 30 programmes, drawn up with consideration for regional specific conditions); non-state pension schemes, full or partial refund of the cost of health resort vouchers and vouchers to children's vacation camps at special rates. Additional benefits see children receive Christmas gifts; financial aid is offered for medical treatment and expensive medicines, with financial assistance offered to retired employees.

Labour protection

Considerations around Health & Safety are an integral part of every business decision and are critical to our vision of preventing any incidents that could affect the health and safety of our people.

In 2014, labour protection activities were carried out pursuant to the requirements of the Russian Federation’s Labour Code, and other legal and regulatory considerations relating to labour protection.

Activities aimed at ensuring a safe working environment resulted in a 30% year-on-year drop in the accident frequency rate in 2014 (44 accidents in 2014 compared to 64 accidents in 2013). In 2014, the number of calendar days lost due to injury also decreased by 17 % compared to 2013 (3,245 man-days in 2014, 3,883 man-days in 2013).

My Annual Report

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