In 2015, the Concern’s employees received 19 national awards and 19 ministerial awards
6.1 HR management
The human capital is the key value of the Concern and one of the main drivers of its successful development. Understanding this, the Concern’s management strives to create the environment facilitating higher performance of the personnel and its involvement in completion of the tasks the Concern faces.
The Concern’s approach to HR management is in full compliance with the laws of the Russian Federation and is based on the principle of respect to the employee and his rights.
The total headcount in 2015 stood at 50,706 employees, which is 10% less than in 2014. The downsizing is mainly due to the fact that the following companies withdrew from the Concern: Snezhet Plant JSC, Atlant Plant JSC, Karachev Plant Elektrodetal JSC, UCM JSC, AVEKS JSC, Tarasov Aviaavtomatika JSC. The total headcount in these companies in 2014 amounted to 4,952 employees.
Р52.Concern’s headcount as of 31 December 2015, employees
If to disregard disposals of stocks, the headcount has grown in the Avionics Division (by 4.4%) and EW Division (by 2.4%) as a result of substantial growth of sales.
In case of layoffs, the Concern’s companies grant time to redundant employees to look for a new job before termination of the employment contract, do not dismiss (as a result of downsizing or redundancy) members of the same family at the same time and offer to redundant employees open vacancies in other companies and divisions. All layoffs are made in strict compliance with the Labor Code of the Russian Federation.
While taking the downsizing steps, the Concern continues to increase the average wage, including through allocating a part of the released payroll (see Compensation practices and incentive policies).
The principal share in the headcount (84%) falls on the production and operational personnel, which, in turn, for 35.5% consists of direct personnel. Most part of the personnel (78%) is involved in production of military products, while almost two thirds (63%) of all Concern’s employees are employed at the Avionics Division.
P53.Structure of Concern’s personnel, %
P54. Composition of Concern’s production and operational personnel, %
P55. Personnel structure by nature of products, %
P56.Personnel structure with a breakdown into divisions, %
6.2 Productivity of labor
The Concern’s labor productivity is determined based on the revenue (volume of shipped products and provided services by value) and average number of employees at the relevant companies.
It is worth noting that the growth of labor productivity both in the Concern in general (25.6% by 2014) and in separate divisions (varying from 15.1% in MI Division to 39.7% in IFF Division). The growth of labor productivity in EW Division (25% by 2014) outperforms the growth in other divisions.
The growth of labor productivity in Concern’s companies was driven by the growth of proceeds from sale of products as a result of headcount optimization.
Т15.Productivity of labor
|Productivity of labor,
|Concern||1 624||1 869||2 346||2 591|
Professional and advanced training is one of the most important lines of development of the human capital.
6.3 Professional training and retraining system
Along with the technical development of the Concern, its demand for highly qualified employees, new knowledge and modern skills and abilities is increasingly growing.
The whole radio electronics industry sees dramatic shortage of personnel in hard-to-fill occupations, such as general production employees (turners, millers, construction metal workers, process equipment startup specialists, 5th and 6th grade repairmen) and engineers in various disciplines (technology, energy, electronics, programmers and designers).
Key reasons for shortage:
- gap between education and business needs;
- no consistent HR policies in regions, ministries and agencies;
- inadequate financing of efforts to train and retain young employees;
- internal regulatory restrictions on payroll expenses included in the cost of military production.
The result of personnel shortage is the loss of accumulated competencies (key competences are maintained by employees at the age of above 60), more time to introduce new equipment supplied under the federal target programs, higher backlog in development and production technologies.
In order to resolve this problem, measures are taken to engage young specialists and the Concern actively cooperates with schools and universities.
Professional training is provided on a continuous basis throughout the entire term of employment so that to consistently expand and deepen the knowledge and competencies, enhance professional skills in line with the development needs on the high-tech market.
Cooperation with schools
The Concern’s companies carry on purposeful activities in the areas of their presence with a focus on promotion of technical education and stir interest to radio electronics among the schoolchildren. The Concern’s employees give lessons in schools, organize creativity and technical competitions, excursions to the production plants, are involved in creation of circles and special training courses for children of all ages. The companies, at their own expense, provide support to educational institutions and offer initial technical training to future professionals.
The work with schoolchildren consists of a number of consecutive stages which form a single system of continuous work from generating the interest to the radio electronics in early age until they choose their future profession to providing support when choosing the university or other educational institution.
P57.Stages of Concern’s work with schoolchildren
Tekhpribor PJSC, on the basis of its chair in, and jointly with, the Saint Petersburg National Research University of Information Technologies, Mechanics and Optics, created new Master’s program “Digital Production Systems”. The objective of the program is to train Master’s degree specialists to develop and introduce 3D models for NC machines producing 5th generation avionics.
Cooperation with universities
As part of the HR development activities, there are 26 partner universities which cooperate with the Concern’s companies that accommodate 43 basic research and education chairs. The universities are delivering 52 educational programs for the Concern.
The key lines of cooperation with universities are:
- establishing and maintaining relations with partner universities;
- improving educational programs;
- employees’ involvement in educational programs;
- employer-sponsored education of students in universities;
- professional training and retraining of Concern’s employees;
- developing the system of work placements and internships for students, post graduate students and teachers at the Concern’s companies;
- joint research and development (for more details see R&D).
Results of 2015
Apart from the field-specific universities, the Concern organized training of its employees at the Corporation’s basic chairs in Plekhanov Russian University of Economics and RUDN University under the professional training programs (additional professional education).
For the purpose of training highly qualified professionals for the Concern’s companies in the area of development of complex innovative products and systems, the Concern’s employees are now being educated under Master’s program “Applied Systems Engineering”, 222300 “High Technologies and Innovative Economics” at the Moscow Institute of Physics and Technology.
Concern’s partner universities:
- Bauman Moscow State Technical University (Bauman MSTU);
- Moscow Aviation Institute (National Research University);
- Saint Petersburg State University of Instrumentation;
- Saint-Petersburg Electrotechnical University (LETI)
- Tupolev Kazan National Research Technical University,
- Kazan Federal University,
- Lobachevsky State University of Nizhny Novgorod (UNN);
- R.E. Alekseev Nizhny Novgorod State Technical University;
- Southern Federal University;
- Don State Technical University etc.
Т16.Training highly qualified specialists and employees
|Number of basic chairs in universities, items||40||46||43|
|Employer-sponsored education in universities (number of students), persons||511||699||740|
|Professional training, persons||6,466||6,478||6,273|
|blue collar, persons||3,361||3,398||3,265|
Apart from leveling up qualifications and professional competences, the Concern also focuses its efforts on resolving social problems. In 2015, the Concern launched the Affordable Housing Program which will help improve the employee living conditions.
6.4 Social policies
In December 2015, the Concern and the aviation industry trade union (the Aviation Trade Union), which operates in most of the Concern’s companies, signed the cooperation agreement. Cooperation with the Aviation Trade Union will help improve the employee social support system, better working conditions and timely respond to labor disputes.
The agreement provides that the Concern will facilitate resolution of social and financial matters of its employees at the earliest stage and promote creation of conditions to sign collective employment contracts. Further, the agreement contemplates that the Concern’s companies will develop compensation and financial incentive systems to meet the conditions in which the labor productivity will show outperforming growth rates.
The Concern provides financial aid to its employees in accordance with the Regulations on One-off Financial Aid to Concern’s Employees. The financial aid can be provided on the following grounds:
- medical therapy, rehabilitation, purchase of expensive medicines;
- first-time marriage;
- child birth;
- death of close relatives;
- emergency recovery;
- other reasonable excuses
The Concern’s expenditures under social programs in 2015 have grown by 39.4% YoY 2014 and amounted to RUB 565.7 million (see Fig. 59).
Р59. Concern’s expenditures under social programs, million RUB
In 2015, KRET JSC recorded no occupational injuries. The information on injuries at the Concern’s companies is disclosed in the annual reports.
Health resort therapy
Since 2014, the Concern is actively involved in the employee wellness program. In 2015, it sent more than 3,759 employees and their family members to Sochi resorts and it is planned that 2,800 employees will be sent in 2016. The program is organized in such a way that the employee pays only 20% of the total price of the voucher and the remaining part is funded by the Concern.
Voluntary medical insurance
For the purposes of additional medical insurance
of their employees, the Concern’s companies sign
insurance contracts with insurance companies.
The Concern’s total expenses for voluntary medical
insurance and medical examinations amounted
to RUB 113 million. The per capita amount was
RUB 2,227, which is 6.3% above the 2014 figure.
It is planned to increase the per capita expenses up to RUB 3,484
Р60.Concern’s expenditures for voluntary medical insurance and medical examinations, million RUB
The key objectives of the occupational safety is to protect life and health of the employees in the course of employment. For that purpose, the Concern takes organizational and technical, social and economic, legal, sanitary and hygienic, rehabilitation and health protection efforts.
The Head of the Administrative and Maintenance Department is responsible for occupational safety in the Concern since November 2015. In-house occupational safety engineers, services and departments are in charge of the matters of occupational and industrial safety in the Concern’s companies.
Steps taken in 2015:
- 40% of employees were trained to render premedical first aid at work and at home in extreme situations in January 2015;
- the Concern’s employees were examined by ophthalmologists and optometrists in March 2015.
6.5 Social projects in the areas of presence
Each year the Concern is actively involved in sponsored and charitable programs.
The legal framework for planning sponsorship and charity expenses is Order 53 of Rostec State Corporation of 16 March 2011 (as amended by Order 38 of 6 March 2014) “On Approval of the Sponsorship and Charity Policy Making Procedure and the Sources of Financing”.
Under this Order, the sponsorship expenses are estimated based on the target revenue of the next year (0.1 to 0.3%), while the charity costs are based on the forecasted net income of the current year (0.5 to 1.5%).
Т18.Financing to sponsored and charitable programs provided by Concern’s companies in 2015
|Central Cossack Troops||
|Russian Swimming Federation||Organizing the training process and tournaments, international appearance, engaging youth in sports.||15|
|Winter Corporate Games||Organizing sports events for all generations.||2|
|FIS Freestyle Ski World Cup||Organizing sports events for all generations.||7|
|Nebo Otchyzny (Fatherland Sky) Aviation Promotion Foundation||Holding various events at the International Aerospace Show MAKS-2015||3.5|