At RusHydro, we place great emphasis on human capital, as we believe that highly skilled, responsible, and diligent employees are key to the Group’s successful development.
The Company’s generating facilities in Russia and abroad are staffed with professionals with extensive operational experience and superior technical expertise. RusHydro’s HR policy aims to ensure ongoing improvement of labor relations and social development, create efficient and safe work environment, facilitate career growth, and ensure decent living standards and well-being for employees across the Group and its subsidiaries.
The Company’s stable performance allows it to maintain its employee headcount. As at December 31, 2019, RusHydro Group employed 69,547 people, down by 0.17% as compared to the previous reporting period.
RusHydro’s workforce structure breakdown by gender, age, and expertise reflects the nature of the industry. Men represent the majority of all employees (68.1%). In the management cohort, there are 3.5 times as many men as women; in the blue-collar category — 4.6 times as many men as women.
Nonetheless, women make up 62.0% of all employees in the white-collar category. 25.1% of RusHydro Group’s employees are aged 35 or younger. One of RusHydro Group’s priority tasks the area of personnel management is attracting young talent.
Over 76% of RusHydro employees work in the Far Eastern Federal District, where the Group’s facilities account for three fourth of total power generation providing electricity and heat transmission and distribution to end users.
Most of RusHydro employees work full-time (98.6% for RusHydro Subgroup and 99.8% for RAO ES East Subgroup) and under permanent employment contracts (88.7% for RusHydro Subgroup and 97.7% for RAO ES East Subgroup). [102−8]
Headcount by country and region in 2019 [102−7], [102−8]
|Region, country||Headcount, people|
|Central Federal District||4,001|
|Southern Federal District||655|
|North-Western Federal District||893|
|Far Eastern Federal District||52,961|
|Siberian Federal District||3,322|
|Volga Federal District||3,571|
|North Caucasian Federal District||3,712|
|Republic of Armenia*||402|
|Republic of Tajikistan||29|
|Republic of Uzbekistan||1|
Percentage of employees who will reach retirement age in the next 5 and 10 years by category* [EU15]
|Indicator||5 years||10 years|
|RusHydro Group, including:||5,481||7.9||10,356||14.9|
RusHydro Group recruits staff, including management, on a competitive basis. This approach enables the Company to recruit motivated people who meet the qualification requirements.
Candidates regardless of gender, age and nationality compete for vacancies, where professional skills is the main selection criterion.
In 2019, RusHydro Group hired 13,173 people and created 1,569 new jobs following inauguration of additional generating capacities, increased scope of service projects, and transition to direct contracts with electricity consumers. On top of that, the Company increased electricity sales and opened single billing and payment centers in the Far East.
The employee departure rate* varies by region of operation from 3.7% in the Republic of Armenia to 25.8% in the North Caucasus Federal District.
RusHydro Group hires seasonal labor. In 2019,
Total number of employees hired and dismissed at RusHydro Group in 2019, people* [401−1]
|Region||<25 years||25−34 years||35−44 years||45−54 years||>55 years||Total|
|Central Federal District||48||22||79||59||115||71||61||38||67||31||591|
|Southern Federal District||8||2||13||0||30||5||15||6||8||1||88|
|North-Western Federal District||7||7||8||8||5||5||8||1||6||5||60|
|Far Eastern Federal District||983||301||1,993||862||1,892||1,057||1,321||598||940||490||10,437|
|Siberian Federal District||24||21||84||79||49||78||59||43||39||35||511|
|Volga Federal District||68||11||142||26||106||30||50||11||21||8||473|
|North Caucasian Federal District||166||4||288||15||196||22||181||17||98||5||992|
|Republic of Armenia||0||0||3||0||4||1||6||0||2||0||16|
|Republic of Tajikistan||0||0||3||0||0||0||1||0||0||0||4|
|Republic of Uzbekistan||0||0||0||0||0||0||1||0||0||0||1|
|Central Federal District||28||16||112||72||117||92||52||33||128||78||728|
|Southern Federal District||4||2||17||3||34||8||21||2||21||2||114|
|North-Western Federal District||1||2||11||12||13||7||4||6||12||17||85|
|Far Eastern Federal District||531||174||1,538||818||1,662||942||1,064||632||1,544||835||9,740|
|Siberian Federal District||11||12||82||58||87||89||86||52||108||71||656|
|Volga Federal District||40||9||101||16||93||20||58||22||70||24||453|
|North Caucasian Federal District||114||3||269||21||175||26||133||25||169||21||956|
|Republic of Armenia||0||0||0||1||1||1||1||0||10||1||15|
|Republic of Tajikistan||0||0||2||0||2||0||0||0||0||0||6|
|Republic of Uzbekistan||0||0||0||0||0||0||0||0||0||0||0|
RusHydro Group’s motivation and remuneration policy seeks to maintain a competitive salary level.
The remuneration systems in RusHydro’s subsidiaries are in compliance with the Russian labor legislation. They ensure increase in real wages of employees by means of annual wage indexation and financial incentives (bonuses) conditional on the company’s results (key performance indicators) and employee performance (individual bonus indicators).
Depending on the region of operation, entry-level wages at RusHydro Group are equal to or 14 times higher than the statutory minimum monthly wage. [202−1]
RusHydro Group adheres to the principle of equality and nondiscrimination on the basis of gender. We ensure equal base salary for all categories of male and female employees.
Continuous employee training and development has always been a major priority for RusHydro. Our people play an important role in strengthening the Company’s internal stability and help us achieve our strategic goals.
The continuous training system is in place to develop employee competencies to meet their current job requirements and be promoted as part of the talent pool arrangement. The Company offers employees professional retraining opportunities, including in accordance with occupational standards.
In 2019, RusHydro Group’s personnel development costs amounted to RUB 339 mn. The training is provided by the Corporate Hydropower University, a branch of RusHydro, which helps ensure an extensive personnel coverage and reduce per-course costs.
A total of 3,945 RusHydro and subsidiary employees received training at 97 courses, including:
In addition to training, the Corporate Hydropower University holds competitions and professional excellence contests among RusHydro Group employees. These events are intended to facilitate best practice sharing, identify best performers, and demonstrate the latest technologies. The reporting year saw:
In 2019, RusHydro Group provided a total of 56,561 training courses to its employees under corporate training programs, further professional education and occupational training programs. The increase in the number of courses compared to 2018 came on the back of large-scale introduction of distance-learning options and implementation of professional standards in RusHydro’s operations. The respective action plan for introducing professional standards was developed and approved by RusHydro’s Board of Directors for the 2016−2019 period in line with the Russian Government’s Directive No. 5119p-P13 dated July 14, 2016. Following initiatives implemented under the action plan, by the end of 2019, 93% of employees met the professional standard requirements introduced in the Company.
Learning and training programs [404−2]
|Form of training||Frequency|
|Further professional training||At least once every five years|
|Occupational training||As required by regulators, in case of retraining for a new career|
|Occupational retraining||As required for operational reasons to enable employees to do a new type of work or to receive additional qualifications as well as for talent pool training|
|Corporate trainings||On an as-needed basis when required to solve specific tasks|
|Internal training in production and technical skills||Annually|
|Short-term training programs (seminars, conferences, forums)||Annually, with the content depending on business needs|
|Distance learning||Annually, with the content depending on business needs|
The Corporate Hydropower University
The Corporate Hydropower University was founded in December 2007 as a branch of RusHydro. It is a unique institution whose purpose is to build a pool of highly skilled employees by providing educational services and comprehensive specialised training programs for energy industry professionals.
Today, the Corporate Hydropower University serves as RusHydro Group’s research, information, and educational (license No. 9472-l dated December 22, 2017) center, while also providing methodological and consulting services for the Group.
Since its inception, the concept of effective knowledge management has been the key focus of the university. It serves as a link between RusHydro Group’s branches, contributes to the formation and strengthening of a unified corporate culture, offers training to Company experts and uses experience sharing as an educational tool.
Training at the university unlocks career development opportunities for employees and introduces them to a wide network of industry professionals.
In 2019, 12 standard advanced training and professional retraining programs for production personnel were developed, taking into account professional guidelines for hydropower employees.
RusHydro Group pays great attention to building a talent pool and training its management staff. Our management talent pool programs seek to:
In 2019, the Company arranged and conducted the following talent pool training modules:
Twenty-nine young professionals were included in RusHydro Group’s talent pool based on the results of the Internal Source of Energy-4 competition in 2019. They will be trained under the first Project Management module.
In addition, the talent pool members took part in the 9th International Forum of Young Power Professionals and Industrialists called the Fast and the Furious 2019. The events also included a conference of RusHydro Group’s young talent community, during which the project leaders presented the results of their work, formulated new ideas, formed a pool of projects for inclusion into the 2019−2020 work plan, and elected community leaders. The community operates on a voluntary basis to implement joint projects, share experience and practices, and search for new, more efficient approaches and solutions to deliver on RusHydro Group’s strategic priorities. The community set the key project streams as follows: Technology Leadership, Professional Development, Health and Safety, Comfortable Environment in the Regions of Operation. Stream coordinators assessed the results of a number of federal and local projects implemented under their stream.
In addition to offering training modules for talent pool candidates, RusHydro Group arranged a number of other events for young employees in 2019, including participation in industry-wide competitions in innovation, the engineering training initiative Technological Leadership School, the Youth Days at the St. Petersburg International Economic Forum, and the 2019 Russian Energy Week International Forum.
Training of future employees [OS]
As a responsible employer, RusHydro Group is interested in developing young professionals in the regions where it operates. The Company makes every effort to generate interest in the industry among young people and create various incentives for young professionals to join the hydropower sector.
To this end, RusHydro interacts with educational institutions all across the regions.
An important part of that interaction is cooperation agreements. In 2019, the Company entered into a cooperation agreement with the Financial University under the Government of the Russian Federation to establish long-term mutually beneficial partnership to train young professionals for RusHydro and conduct methodological and research work aimed at improving educational programs and integrating innovative technologies in the educational process.
RusHydro Group offers career guidance for hydropower students to familiarize them with their future occupation by arranging practical training and helping them to take part in corporate and national competitions and events.
In 2019, 11 post-graduate students and instructors took internships at RusHydro’s production facilities as part of the effort to improve the education quality at partner universities. Over 1,700 vocational school and university students (years 3−6) received practical training. In the reporting year, the Company hired 27 university graduates.
More than 50 highly qualified RusHydro staff members teach at universities and take part in the state graduation commissions for
the Electrical and Heat Power Engineering discipline. RusHydro’s
representatives are members of the Federal educational and
methodological association for the integrated group of disciplines
The Corporate Hydropower University and RusHydro’s Qualifications Assessment Center established in 2018 conduct employee assessment to create a talent pool.
In 2019, assessment was conducted to select potential candidates for the position of RusHydro Branch Director. Four candidates were identified and included in the talent pool for the director’s position, three potential candidates were identified for the position of first deputy branch director — chief engineer, two candidates for the position of deputy chief operations engineer, and two candidates for the position of deputy chief technical engineer.
The Company’s employees are tested for adequacy to the job and have their professional, business and personal qualities and achievements assessed. Managers and white-collar employees, regardless of gender, are assessed once every three years.
The Energy Sector Occupational Qualifications Council approved three tools for assessing professional qualifications to be used by RusHydro’s Qualifications Assessment Center. RusHydro Group experts took part in the development of the tools.
Eighty employees from RusHydro’s branches and subsidiaries were assessed by the Qualifications Assessment Center, with 63% successfully passing the test. In 2019, the Energy Sector Occupational Qualifications Council authorized the Qualifications Assessment Center to conduct assessments at two additional sites in the Far Eastern Federal District: RusHydro’s Sakhalinenergo and Magadanenergo training centers.
In 2020, the Qualifications Assessment Center will open additional assessment sites, contribute to the development of the national qualification system by establishing qualification standards in electrical and heat power engineering, provide training for experts, and conduct tests.
Talent pool and personnel development plans for 2020 include:
RusHydro’s Social Policy is an important incentive for furthering the Company’s social agenda, promoting social partnership practices, and making the Company a more attractive employer.
Tasks of the social policy:
In its social policy, RusHydro Group follows international standards and best practices in the field of human rights, labor relations, environmental protection, anti-corruption initiatives and stakeholder relations. The Company relies on the Guidance Social policy Work with young people, training programs Support for families and mothers Healthcare and healthy lifestyle promotion Pension coverage Housing program Social and professional guidance for orphans on Social Responsibility (ISO 26000) and the universal principles enshrined in the UNGC Guide to Corporate Sustainability in the field of human rights, labor relations, environmental protection and anti-corruption initiatives, as well as the Social Charter of the Russian Business and the Tariff Agreement for the Electrical Power Industry of the Russian Federation. [102−12]
RusHydro Group grants the following benefits to full-time employees [401−2]:
НPrivate pension coverage is in focus of the Company’s social policy. It was introduced in 2008 to employees at RusHydro’s branches by offering several pension plans designed to finance the pension savings of different employee groups.
In 2019, the Company revised its pension plan in line with changes in the Russian pension system and approved its new Regulations on Private Pension Plan for Employees at RusHydro’s Branches by Order No. 670 of August 15, 2019.
The private pension plans include:
PJSC RusHydro continues to offer its "Co-financing” option where an employee, the Company, and the government jointly finance his or her pension savings.
Private pension plans are in place at 24 subsidiaries, including Hydroremont — VCC, Transport Company RusHydro, Kolymaenergo, DGK, Far Eastern distribution company (DRSK), Far Eastern Energy company (DEK), Kamchatskenergo, etc. The parity plan is underway in 20 subsidiaries, 13 subsidiaries have corporate plan options, predominantly the “Supporting” one, financed, while seven have elected the government’s “Co-financing” option.
RusHydro continues implementing a program to improve housing conditions for employees. The priority right to participate in the program is given to young professionals under the age of 30, who do not have their own apartment or house, relocated specialists, key and highly qualified specialists, as well as employees with many children, and single parents.
In 2019, pursuant to Regulations on Improving Employee Housing Conditions at Branches of PJSC RusHydro*, 109 employees received compensation of interest payments on mortgage loans and lease expenses. Furthermore, in 2019 employee housing programs were introduced at Yakutskenergo, Sakha Energy, and Kolymaenergo.
Security for RusHydro Group’s liabilities under pension plans* [201−3]
|Net pension liabilities as at December 31, 2019, RUB mn||8,732|
|Estimated coverage ratio of special assets vs. liabilities under the scheme (fair value of plan assets / current value of plan liabilities), %||10.4|
RusHydro Group’s corporate culture is an essential tool reflecting its values and strategic business priorities, as well as leveraging employees' initiatives to deliver on the Company’s long-term goals.
RusHydro Group is focused on unlocking the creative potential and promoting strong social commitment of employees. Over 1,000 employees contributed to RusHydro Planet, a video flash mob contest held as part of celebrating the Company’s 15th anniversary. As many as 22 creative videos featuring flash mobs participated in the contest to demonstrate both talent and team spirit of the Group’s employees on the background of its impressive energy facilities. Awards were conferred following online voting on YouTube.
The Power of Talent, another contest held to celebrate the 15th anniversary, attracted over 160 employees who made 70 stage appearances in three nominations — singing, dancing, and performance art. Online voting determined the final six and the audience award winner, while the jury of experts — prominent art professionals, directors, and actors — chose the winners.
Another important focus is health and healthy lifestyle promotion. Employees of RusHydro Group take part in all kinds of sports events — national projects (Russian Ski Track, Cross-Country Race of the Nation, GTO physical fitness tests), regional competitions (marathons, bicycle and ski races), team sport tournaments (soccer, volleyball, basketball, ice hockey, etc.), spartakiads organized by local trade unions, such as All-Russian Electric Trade Union.
To facilitate communication among employees and award the best athletes, corporate spartakiads were introduced in 2017. Around 1,000 employees of the Headquarters, 18 branches, and 25 subsidiaries took part in the Spartakiad 2019. The Spartakiad program included the Soccer Cup of the Chairman of the Management Board.
RusHydro Group’s corporate volunteering has been growing rapidly by attracting more and more engaged employees in events held across Russia. The volunteers greatly contribute to the Company’s annual initiatives, such as Charity Fair, Blood Donor’s Day, Suitcase of Goodness, The Brightest Christmas Tree, Get Ready for School, and oBEREGAi environmental program.
As part of the volunteering and charitable Young Energy program, the Group’s employees facilitate social integration and provide professional guidance for children from orphanages. The volunteers mentor the kids, introducing them to power facilities and energy sector, giving them the basic knowledge of electrical installations, and offering career guidance. The Young Energy covers twelve orphanages and involves over 120 volunteers from RusHydro Group.
RusHydro’s employees also arrange tours of the Group’s facilities. In 2019, more than 4,000 tours were organized for students in an attempt to stir interest in engineering and energy sector professions among the youth.
Annually, RusHydro’s volunteers come to schools from across the Company’s footprint to give over 15,000 schoolchildren lessons about energy saving technologies and energy security.
Suitcase of Goodness 2019
The Suitcase of Goodness is a charity project popular among volunteers from RusHydro Group. The initiative is focused on giving a helping hand to people in distress, including children with serious health conditions and lonely seniors placed in care homes or shelters.
In 2019, employees of RusHydro’s Headquarters, the Company’s design institutes — NIIES and Hydroproject Institutes, Hydroremont-VCC and RESK united their efforts to contribute to the Suitcase of Goodness.
The volunteers partnered the Gift of Life foundation to provide suitcases of goodness full of toys for kids battling cancer at Dmitry Rogachev National Medical Research Center of Pediatric Hematology, Oncology, and Immunology.
In the run-up to the new school year, suitcases of goodness with stationery were presented to children in need.
Employees of RusHydro Group collected gifts to cater for the basic needs of lonely elderly people from remote care homes and shelters under custody of the Joy in Old Age Foundation.
The Suitcase of Goodness initiative was acclaimed by many employees eager to help others.
At RusHydro Group, employees are free to fully exercise their right to freedom of association. Most of RusHydro Group’s companies have trade unions in place. In 2019, 34,239 employees of RusHydro Group (49% of the headcount) were members of trade unions. [407−1]
All of RusHydro Group’s generation branches and 40 subsidiaries (96% as at 2019) have collective bargaining agreements in place. [102−41]
RusHydro and its 12 subsidiaries are members of the All-Russian Industry Association of Electrical Power Industry Employers “ERA of Russia”, while one more subsidiary has joined the Industry Tariff Agreement for the Electrical Power Industry of the Russian Federation.
The Industry Tariff Agreement is crucial for establishing and developing a uniform social partnership framework in the energy sector. The Agreement provides a single standard for regulating social and labor relations in the industry and sets a minimum level of guarantees for employees. All companies that are “ERA of Russia” members comply with the key provisions of the Industry Tariff Agreement pertaining to:
RusHydro provides employee benefits and guarantees that are higher than those set forth in the Industry Tariff Agreement in terms of both scope and amounts paid.
The Company complies with the Russian Labor Code specifying the minimum notice period regarding operational changes (at least two months prior to the commencement of relevant events or, where the headcount or staff reduction may result in mass dismissals, at least three month prior to the commencement of relevant events). [402−1]
In addition, under the Industry Tariff Agreement, employers must notify trade unions of the expected reorganization within 20 days after the meeting of shareholders adopts relevant resolution, and disclose the schedule of such reorganization. Under collective bargaining agreements of branches and subsidiaries, appropriate provisions of the Industry Tariff Agreement apply to reorganization, and either party may initiate mutual employment consultations.
As RusHydro Group prioritizes health and safety over operating performance, its key occupational safety goals are:
The key areas, directives, and commitments regarding employee safety are set forth in RusHydro Group’s Health and Safety Policy*. The Company also has the following internal regulations in place:
RusHydro Group’s occupational health and safety management framework covers management decisions on organizational, technical, sanitary and hygienic, treatment and preventive, medical and social measures aimed at ensuring safety, protection of employee capability, health and life in the workplace, monitoring of employee compliance with occupational safety, fire prevention and industrial safety requirements.
In RusHydro Group, there are no instances of unfair treatment as a result of health condition. No health condition data (personal data) are disclosed to third parties. [403−3]
Key focus areas in health and safety management
|Occupational safety training and knowledge assessment [403−5]|
|Identification of occupational hazards, assessment of occupational risks and investigation of accidents [403−2]|
|Occupational healthcare [403−6]|
To control and monitor contractors and subcontractors operating at its facilities, RusHydro Group:
Plans to improve the H&S management framework
The 2020 calendar plan provides for the following initiatives:
The Company consistently provides funding for health and safety and workplace injury prevention initiatives, including RUB 2,464.7 mn invested during the reporting period.
Higher health and safety expenses are due to an increased supply of personal protective equipment for employees and measures to improve labor conditions and prevent occupational diseases and workplace accidents.
In 2019, RusHydro Group’s health and safety measures included:
Employee training in occupational health and safety [403−5]
In 2019, the Company conducted two 40-hour on-site and off-site training programs:
The first program is intended for employees responsible for health and safety measures, while the second one is for those in charge of organizing safe high-altitude operations, holding briefings, and drafting the plan for employee evacuation and rescue in case of emergency.
The above programs covered a total of 6,731 people, including 634 employees trained at the Corporate Hydropower University, a branch of RusHydro. The knowledge absorption was assessed as 9.47 and 9.55 out of 10 for each of the programs respectively.
The training is free for employees of the Group’s branches and Headquarters. On-site training is conducted during office hours, while for off-site training the employees can choose some working time within a specified period at their convenience.
One of the Company’s priorities is to make sure that workplaces comply with statutory health and safety requirements. The assessment of 100% workplaces takes place as scheduled.
According to the special assessment of working conditions in 2019, 29,846 employees of RusHydro Group had workplaces with occupational hazards exceeding the regulatory (hygienic) threshold.
In 2019, RusHydro Group recorded three occupational diseases affecting one skilled specialist (a man) and two workers (a man and a woman). Occupational diseases (hazards) are caused by noise and labor severity. [403−10]
In each case, the Company issued a relevant report followed by stricter control over medical examinations to enable early diagnosis and minimize the risks of developing chronic diseases.
No occupational diseases were recorded by RusHydro’s contractors in the reporting period.
Number of casualties
|Year||Indicator||PJSC RusHydro||RusHydro (excluding JSC RAO ES East Subgroup)||RAO ES East Subgroup||Total|
|2017||Number of injuries, employees||0||12||21||33|
|Rate of recordable work-related injuries||0.00||0.96||0.43||0.49|
|2018||Number of injuries, employees||5||12||24||4|
|Rate of recordable work-related injuries||1.07||0.89||0.52||0.64|
|2019||Number of injuries, employees||3||5||20||28|
|Rate of recordable work-related injuries||0.039||0.065||0.263||0.368|
In 2019, RusHydro Group had 26 accidents to their own staff that resulted in 28 injuries, including one fatality. The accidents caused injuries to two managers (men), six skilled specialists (women), and 20 workers (men). [403−9]
Injuries mainly occurred due to breaches of work management requirements by persons in charge. Each accident was investigated, with urgent preventive measures put in place.
In 2019, the hazards that resulted in severe injuries included:
In 2019, five injuries (bruising and bone fractures) were recorded among workers (men) of Contractors operating at RusHydro Group’s facilities where the Company is responsible for ensuring safe working conditions.
In connection with all the accidents, the Company took urgent measures and developed an action plan to eliminate the impact on others.