Social and HR policy

The strategic goal of the Company in HR management is to create motivating conditions for  achievement of maximum efficiency of its human capital.

The Company’s priorities in HR management are: search and selection of specialists, power industry workers, formation of a personnel reserve, adaptation of newly hired employees and young specialists, sharing the best practice of the “Golden Reserve” (employees with significant expertise in power engineering and with unique knowledge), improvement of skills and personnel training, and optimization of the motivational system.

In five enterprises affiliated in 2008 there were ongoing collective agreements which JSC INTER RAO UES acknowledged valid in all aspects in the reorganized Company. Collective agreements exist in the following branches: Sochinskaya TES, Ivanovskiye PGU, Severo-Zapadnaya TETs, Kaliningradskaya TETs-2 and Orel branch.

In 2008 collective negotiations for conclusion of collective agreements for 2009 were held in branch Sochinskaya TES, branch Ivanovskiye PGU and branch Kaliningradskaya TETs-2.

Within the framework of voluntary medical insurance employees of the Company have the possibility to receive medical services in the best medical institutions; annual medical examinations are provided to employees working in positions with unhealthy conditions.

JSC INTER RAO UES carries out systematic activity in the sphere of personnel health protection.

In 2008 in connection with reorganization the number of personnel increased. As of December 31, 2008 the total number of personnel of JSC INTER RAO UES reached 1,912 persons with the approved staff schedule of 2,124 staff members.

They include: managers – 512 persons (27%); specialists, experts – 627 persons (35%); workers – 711 persons (37%); office workers – 17 persons (1%).

The share of managers is the highest in the executive structure of the Company; this is predetermined with the specific character of its administrative functions.

During the last three years the Company has been especially active in attracting new qualified staff; this is witness to the growth of economic activity of JSC INTER RAO UES and the stability of working conditions.

COMPOSITION OF PERSONNEL

Highly-qualified experts, specialists, managers and staff are employed at JSC INTER RAO UES.

• 1,128 persons (59%) have higher education;
• 110 persons (6%) have two higher educations or have scientific degrees;
• 504 persons (27%) have high vocational education;
• 154 persons (8%) have completed secondary education, mainly they are in worker level categories.

PRINCIPLES OF THE PERSONNEL DEVELOPMENT SYSTEM

Key goals of the Company’s policy in the sphere of corporate training and personnel development are to increase HR efficiency and to prepare a high-quality personnel reserve in order to reach leading positions in the industry and to implement the strategy of the Company.

The objectives of corporate training include the following:

• to ensure compliance of an employee with corporate requirements of knowledge and skills;
• to meet requirements of state, industry and other external standards;
• to develop the personnel reserve of the Company;
• to use long-term training as an element of motivation of employees.

In 2008 over 80% employees underwent additional professional training on the basis of core higher educational institutions, at specialized training centers of the Corporate Energy University, NP ATS, FGO UDPO St. Petersburg Energy Institute of Professional Development and other training organizations of the industry (in regions and in Moscow) as well as leading Russian universities and business schools.

GOALS, OBJECTIVES AND PROSPECTS OF DEVELOPMENT OF HR AND SOCIAL POLICY

The Company intends to develop the concept of a socially active position in business in the future as well. Activities scheduled in this sphere include, without limitation:

• introduction of efficient and modern training methods, including the corporate Internet portal using distance training technologies;
• optimization of the system of motivation of employees, introduction of KPI, development of social programmes of the Company;
• further measures for improvement of working conditions.