2014 Annual report

Social Policy

The key issue of HR management is implementation of an effective social policy.

Realizing its responsibility before the state, the society and employees of JSC IDGC of the North-West, the Company’s management pays much attention to social aspects of its business, which significantly influence employee performance, and ensure increased labor productivity, process optimization, the Company’s stable and sustainable development in the long term, improvement of employees’ quality of life and positive Company image.

Effective social security system implemented in the Company promotes the attraction of qualified specialists to the Company, reduces staff turnover and becomes one of the foundations of successful industrial activities.

By investing material resources in the staff development and by actively using indirect motivation tools, the Company stabilizes the team, increases employees and retirees’ social security, forms positive public image, provides reasonable combination of highly skilled staff renewal and retention processes.

JSC IDGC of the North-West developed a comprehensive HR and Social Policy, which was approved by the Board of Directors’ resolution of December 30, 2014 (Minutes No. 172/14).

The list of the Company’s social policy implementation areas is broad and includes issues of non-state pension provision, medical insurance of injuries and sickness, provision of employee recreation and health improvement, care for pensioners, veterans of AO-energo, and for young specialists, activities to foster and develop corporate culture.

The main principles of social policy implementation are the following:

Given the current intense competition on the labor market in the regions of operation, the difficulty of keeping the team under the conditions of reorganization of power companies and financial and economic crisis, in 2014 the focus was made on developing employee relations.

The social policy of JSC IDGC of the North-West in 2014 was aimed at:

The Company’s social policy in 2014 was developed in terms of social package, i.e. the package of benefits and compensation for Company employees, their family members and veterans of energy industry under JSC IDGC of the North-West Collective Bargaining Agreement 2014 by several target areas.