Development and Social Support of Personnel

Employee development programme costs, million roubles
203.3
2016
313.0
2017
348.3
2018
Employee benefits, million roubles
905
2016
779
2017
876
2018
2018 Highlights
49,667
employees Severstal’s average headcount
78
%
Employee engagement across Severstal (increased 3% from 75% in 2017)
45.7
hours
Average hours of training undertaken by employees
39
%
Share of women among
managers and specialists, %
348.3
million roubles
Employee development programme costs
Sustainability Report
Relevant Videos
Severstal Leadership Programme
Severstal Women’s Club

We strive to enable our employees to realise their creative potential and shape a corporate culture based on professionalism, private initiative and responsibility. Skilled personnel focused on corporate and personal success are a key factor to our long-term, sustainable development.

Key areas of activity:

  • Training and development

    Severstal has a comprehensive employee training and development system in place covering all functional areas, departments and employee categories, from top executives to production workers. The training is based on our corporate training and development regulations, professional education policies of our business units, and other requirements of applicable laws of the Russian Federation.

    • Management Training Programmes

      Achieving the Company objective of becoming the leader of the steel industry of the future requires constant focus on the development of the management team. Our management training programmes help managers to adjust their behaviour, improve their personal efficiency and develop their leadership skills. We use a variety of training methodologies for the three highest levels of management, including coaching, mentoring and teamwork sessions.

      Our training curriculum for production unit directors, plant managers and foremen is based on mandatory programmes ensuring that our employees at each level acquire the correct management and leadership skills. These programmes also include training on compliance with employee labour rights. For example, in 2018 we provided 1,270 hours of training in the legal aspects of employee management alone.

      Severstal`s Management Training Programmes:

      • Achieve More Together
      • Severstal Business Academy
      • Efficient Department Management
      • Severstal Leadership Lab

      In 2018 we launched the Severstal Leadership Lab, designed to accelerate the implementation of our revised Business Strategy.

    • Distance Learning

      In addition to mandatory programmes and additional training for managers, all Severstal employees can choose to complete any training programme available in the catalogue. The catalogue includes a variety of educational material on a range of competencies. Our distance learning system is accessible to all employees , whenever needed to deliver on their business objectives. My Education and Development portal contains online courses dedicated to teamwork, public speaking, negotiating and persuading, personal efficiency and organisation, and so forth. Approximately 5,000 employees use the materials from our online library.

    • Foreman and Worker Education

      For incoming foremen and workers, we have a Foreman Academy programme in place that includes three mandatory and several optional training courses specific to the production area and individual student needs. The programme includes an eight-hour module in the Legal Aspects of Human Relations.

      Severstal works consistently on employee development. We rely on both internal resources and regional educational institutions (universities, colleges, other learning facilities) in educating our workers and we also send our employees to other cities for training, primarily Moscow and St. Petersburg.

      In 2018, we focused on in-depth professional training, focusing on special-purpose cross-training programmes for our employees.

    • Onboarding Young Employees

      Severstal has an Engagement Policy for Students, Graduates and Young Professionals. Our onboarding and employee development system helps new employees to quickly integrate into our team and achieve high performance rates.

      Severstal’s onboarding programme includes professional, business and personal productivity training, as well as language and career development courses. We offer quarterly onboarding workshops for new young employees.

    • Severstal Leadership Programme

      Severstal Leadership Programme is designed to train the Company’s Future Leaders from among our new graduates and young professionals. Programme participants have the opportunity to receive practical woek experience in Severstal’s Business System, in operations, finance, purchasing and sales. Within five to seven years, these employees could be candidates to join the TOP 100 Severstal executive team. Learn more

    • Severstal Women’s Club

      In September 2017, we established Severstal Women’s Club. This offers our female employees advice, training and development opportunities to help overcome legacy gender inequality issues in the industry.

      In 2018, the Club met a number of times, and participants discussed issues related to balancing a successful career with family life, spoke on role models of a successful woman and heard personal stories of high-achieving women within the company. The Club is headed by Agnes Ritter, a Technical Director of PAO 'Severstal' and a member of the Board of Directors. She participated in a business community conference on Women’s Leadership Forum 'Gender Diversity' and presented the Company's experiences in a panel discussion on 'Women's Clubs Resources in Corporations'.

  • Engaging High School and University Students and Young Professionals

    Recruiting high-potential young talent helps Severstal to fulfil our long-term need for skilled professionals. To build a long-term talent pool, Severstal encourages interest in the mining and steelmaking industry among young people, making significant investments in education and working with schools and universities.

    Severstal partners on talent development with approximately 20 specialised universities, six vocational schools and several high schools offering specialised Severstal programmes in the cities where we work. Around 300 colleges and university graduates are offered roles within the Company every year.

  • Employee Benefits

    The key principles of and approaches to the social support of our employees are outlined in collective agreements and other agreements at individual business level. All Severstal employees receive Company benefits. Our benefit package includes all benefits mandated by applicable laws plus additional means of financial support stipulated by respective collective bargaining agreements (regular and one-time payments).

    • Employee Health

      Cherepovets Steel Mill has developed the Severstal Health integrated programme to improve the access and quality of employee healthcare. The programme focuses on expanding the first aid system, delivering efficient outpatient services using the latest technologies, and preventing diseases.

      Severstal Medical Unit at Cherepovets Steel Mill is a state funded healthcare institution and one of the leading healthcare service providers in Northwest Russia. It has 1,535 healthcare professionals covering the majority of specialist areas. The Medical Unit provides services to more than 46,000 people, approximately 18.2% of the adult population of Cherepovets.

      Vorkutaugol employees receive high-quality Company-paid healthcare services in Vorkuta, and any workplace injuries are treated in the leading healthcare institutions of the Komi Republic, Moscow and St. Petersburg. High-quality healthcare services are available both to miners and their children.

      The Olcon private health insurance programme includes outpatient and in-patient services, dental coverage as well as rehabilitation and recovery treatments. Healthcare services are provided in Murmansk, Vologda and St. Petersburg.

      Karelsky Okatysh offers its employees outpatient care, wellness programmes for men and women, as well as medical check-ups and vaccinations, dental care and hospital treatments, including surgery. The Karelsky Okatysh Wellness programme also supports seven medical stations and an emergency response unit at the industrial site.

    • Health Resort Packages for Employees and Their Children

      Health resort treatments and wellness programmes are a special component of our healthcare and disease prevention programmes. Health resorts, recreation centres and summer wellness camps in Anapa, Sochi, North Caucasus, as well as Leningrad, Pskov, Moscow, Yaroslavl and Vologda oblasts have been traditional vacation destinations for our employees for many years. Severstal’s Torovo corporate vacation complex is visited by more than 20,000 metallurgists and their family members every year.

    • Housing programmes

      Severstal strives to help its employees secure adequate accommodations. Our employees in St. Petersburg (Kolpino) are supported in buying corporate apartments, with zero-interest seven-year financing and a 15% discount on a cash deal.

    • Support for Alumni and Veterans

      Severstal offers corporate pension plans and alumni benefits. Severstal Russian Steel pays monthly pension benefits to its retirees depending on years of service through Blago charitable foundation. Non-working retirees receive more than 20 types of support, such as financial and special aid.

      Severstal Medical Unit provides health care to 7,300 of Severstal’s retirees. Under our social benefit programme, we also make onetime payments on anniversaries and special occasions. Severstal invested 443.7 million roubles in social support of its non-working retirees in 2018.

Anti-Discrimination

Severstal prohibits discrimination based on nationality, race, ethnicity, gender, age, sexual preference, marital or social status, religious views, disability and other characteristics in recruitment and career development, including job postings, during the selection processes, promotion, remuneration, training and benefits. We respect diversity and inclusion and promote them at all our workplaces.

Prohibition of forced and child labour

Use of child and forced labor and human trafficing is strictly prohibited at Severstal and among its suppliers. We expect our contractors and their employees to act in accordance with our Code of Business Conduct, Human Rights Policy and our expectations of suppliers.

Social Activities Implemented in 2018

  • Human Resources

    • Completed specified mandatory Top 100–4000 management training programmes per schedule. Design and a launch of a support programme for the launch of Severstal’s new business strategy and new corporate culture, Achieve More Together 2.0
    • Completed the Efficient Department Management Programme
    • Researched and deployed new training formats and forms: simulators, video training courses, complex skill development simulators, training bot
    • Supportted further development of marketing and sales professionals: develop a training catalogue for online sales department, establish a new School of Experienced Sales Managers programme
    • Continued HR development: design and launch the new HR Academy development programme. Continue the Best Practices webinar series
    • Support for Severstal’s innovative culture through the development of competence models for the Technical Development Centre and other functions / employees involved in the innovations process
    • Support, training and development of Top 100–4,000 managers in Vorkutaugol, Karelsky Okatysh and Olcon business units
    • Training Yakovlevskiy Mine managers and employees in the basics of Severstal’s corporate culture and work standards
    • Development and pilot launch of support systems for high potential employees
    • Deployment of new feedback format across the whole company (360 Degrees, Quick Feedback)