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Social policies

Personnel and Social Policy

One of indisputable advantages of FPC is its professional and highly qualified personnel motivated to perform at their best. About 74,000 Company employees ensure the comfort, quality, and safety of railway passenger transportation by railway across Russia, to the CIS and overseas.

Personnel

Most Company employees (44,700 employees, or 60% of the total) directly serve customers (passengers).

As a result of optimisation, Company headcount decreased by 5% year-on-year.

Headcount by type of job, employees

Employees by type of job As at December 31, 2014 As at December 31, 2013 Actions
Services in trains 39,517 40,737 Modern double-deckers are used, train traffic is optimised
Ticket sale 5,175 5,906 Implementation of electronic systems and transaction terminals speeded up the process and improved accessibility of tickets and reduced ticket handling costs
Maintenance and repair personnel 6,987 7,219 Passenger railway depots in Tavda, Abakan, Liski, and Ruzaevka were redesigned
Other personnel 22,256 23,981
TOTAL 73,935 77,843

The Company maintains the balance between young and more experienced employees. The average employee age at FPC is 40. Young people under 30 years old account for 21% of the total. Most employees (65%) are women.

The main focus in 2014 was on strengthening and retention of FPC human resources. The employee turnover rate remained flat year-on-year at 9%. The personnel stability index is 65%.

The Company is fully staffed with employees holding university and vocational college degrees in line with the relevant regulations. The percentage of employees with a university degree is 22%.

Education, %

Employee ratio by job (profession), %

Age mix, %

Gender mix, %

Competency-based approach

Implementation of the competency-based approach in the Company started in 2013. The 360 degree method to assess front-line personnel was automated. The developed Test FPC is means of assessing the degree of competency of personnel involved in passenger services and making a forecast of successful service performance in deluxe and international trains. The reporting year saw commissioning of an automated system for assessment of corporate competency development using Business Profile and Business IQ test methodologies for managers and specialists at FPC.

In 2014, corporate competency assessment to build a talent pool covered 24,800 employees, 90% of them being front line personnel, and 288 managers.

In order to ensure reliable professional performance of front line personnel and maintain health, employees have their psychoemotional state (hereinafter, PES) assessed. Professional burnout is prevented by restorative (corrective) measures in specifically equipped rooms.

There are plans to further automate the personnel assessment system involving integration with the Unified Corporate Automated Human Resources System (UCAHRS).


Name of assesment method Total, people Candidates, people Employees, people
FPC Test 20,528 13,118 7,410
Business Profile RZhD and Business IQ Tests 369 41 328
320 managers 4 316
49 specialists 37 12
PES assessment etc. 3,858 3,858
360 degree (pilot survey) 80 80
TOTAL 24,835 13,159 11,676

FPC personnel training and development

The Company has an efficient training and personnel qualification development system in place. A total of 22,700 employees or 30.7% of the total headcount had training in 2014.

Training in the Corporate HR Centre (hereinafter, the Corporate Centre) develops full-scale. Over 9,000, or 41% of the total number of trainees, had professional training in 92 licensed offices of the Corporate Centre in the reporting year.

Changes in the personnel training system, people

Main indicators of the training system

Indicators 2014 2013 2012
Headcount at FPC, people 73,935 77,843 80,415
Total number of employees trained, people 22,731 27,673 26,595
Percentage of employees trained in the Corporate Centre, % 41.4 37.0 23.4
Budget, RUB mln 113.6 138.1 134.2

Since 2014, training in all jobs (covered by FPC license for educational activities) in the Corporate Training Centre has been conducted using new electronic first aid simulators which facilitated update of the training process making occupational health and safety and first aid issues more practical.

The trainers in the Corporate Centre train employees and have professional training. In 2014, eight trainers attended further skills development courses on Efficient Teaching Technologies of Professional Workforce Training in MSRU (Moscow State Railways University). Training deliverables were practical guidelines aimed to ensure an efficient learning process in class.

A total of 3,600 people had job training and 14,000 employees had professional training courses.

In 2014 a special recruitment and training process was launched to staff Talgo high-speed train with maintenance and operations personnel. All candidates had training in the Corporate Centre under a specially approved programme involving experts from Patentes Talgo S.L. Additionally trainings included English and catering technology classes. A total of 114 people were trained.

In order to develop management competencies and personal efficiency of managers and improve professional skills, FPC collabourates with its long-standing external providers on additional professional development, relevant operations and financial management aspects, and builds a talent pool under special integrated programmes.

Over 5,000 managers, specialists, and office clerks took professional development courses.

FPC specialists take active part in the development of corporate programmes to ensure common theory and practice, visibility, accessibility, and targeted orientation for each specific category of attendees.

Training for front-line personnel in the Corporate Centre, people


Providers Main training courses
Russian Railways Corporate University Corporate Leader Corporate Management
Railway Transport University Complex MBA in: Transport Business Management: Customer-Focus and Efficiency of Passenger Carriage Management Economics Corporate Talent Pool courses Courses aimed to improve passenger services and transportation security
ANO PM Expert Project management

Targeted training of young talents

The Company cooperates with nine core railway universities. Over thousand students have targeted courses in professional colleges and universities.

These students could attend public lectures and professional days to learn about the Company’s operations and objectives.

The trainers of the HR Centre held open classes for MSRU undergraduates. Students in their fifth year could attend a workshop of Customer-Focused Marketing of Passenger Transportation.

A total of 24 Company employees embarked on distance-learning in Technology Innovation Management in the reporting year.

Development of student train attendant teams

FPC’s annual tradition of engaging students in the transportation process in summer has become increasingly popular among young aspiring people. While in 2010 the train service team included 2,000 students, their numbers in 2014 increased to 8,000 students both from railway colleges and other educational institutions (over 300 schools).

It was for the first time that the Company practised distance recruitment of students from the Urals, Western and Eastern Siberia to FPC’s structural units in the European part of Russia.

FPC received a recognition letter from the Russian Ministry of Education and Science for its significant contribution to the implementation of public youth policy and development of student teams.

Trends in student engagement in passenger transportation during summer, people

System of remuneration and motivation of staff

In 2014, new Regulations on the Staff Remuneration System were enacted, which focus on compliance with the legal requirements of the Russian Federation, enforcement of employees’ rights in respect of remuneration, and conformity to the corporate standards for management of monetary remuneration of staff.

The Regulations were developed subject to the principles of the Concept of Staff Remuneration at the Organisations of the Russian Railways holding.

The Regulations have kept the remuneration for loyalty to the company, which had proven effective in previous years, and salary indexation pro rata to the growth of consumer prices.

The competitiveness of salaries at the Company is raised through increasing the efficiency of motivation.

In particular, extra bonuses are paid for the safety of train traffic and for high quality of repair and maintenance of cars. An extended list of motivation payments and the circle of positions covered has made it possible to pay bonuses to 1.5 times more employees in 2013 with a smaller number of events involving violation of traffic safety rules or railway transport operation rules and technical facility failure.

Bonuses are also paid for sales of products and provision of extra services to passengers.

Social policy

Implementation of the Collective Agreement

In 2014, the social policy of the Company was implemented pursuant to the Collective Agreement of the JSC Federal Passenger Company for 2013 — 2014.

Privileges and guarantees that are stipulated by the Collective Agreement and local bylaws of the Company exceed the guarantees that are stipulated by the labour law and provide extra social security.

In 2014, the cost of individual social benefits per one employee of JSC FPC amounted to RUB 40,500, and of social benefits per one retired pensioner of JSC FPC, RUB 7,500.

In 2014, the costs of performance of liabilities of JSC FPC under the Collective Agreement amounted to RUB 6.5 billion.

The Company has an established operating system of social benefits and guarantees for developing, stimulating, and preserving the efficiency of staff and maintaining social stability among staff.

Housing policy

Being able to buy or build one’s own housing is an important condition for employment especially when one has to move from one region of Russia to another. The Company provides its employees with an opportunity to get a loan for buying or building a home on privileged conditions.

Every month, over 1,200 employees are paid subsidies for interest on mortgage loans, and 60 of those got free of charge subsidies for childbirth during mortgage loan repayment for a total amount of RUB 30.7 million.

Resort healthcare

Healthcare programs for the staff are a priority of the Company’s social policy and aim to develop conditions for proper rest and healthcare and therefore make the staff more efficient.

In the reported year, 3,878 trip vouchers were sold, 2,445 of which were to resort facilities of OJSC RZD-HEALTH, and 1,433, to local resorts.

Employees pay a part of the voucher price in accordance with the Company regulations.

JSC FPC is committed to protecting and improving the health of employees’ children, preventing children’s diseases, and providing conditions for proper rest and engagement of children in the summer. In 2014, 2,526 children went to healthcare camps including 803 children on the Black Sea Coast, 1,576 children in camps of OJSC Russian Railways, and 147 children in other healthcare facilities. The Company’s costs of healthcare for employees’ children amounted to RUB 60.6 million.

Competition

The Company is committed to systems of non-material motivation and fostering a spirit of competition and commitment to success.

The following staff teams were recognised as best on the results of 2014:

  • The Pskov car section of the Northwest branch.
  • The Novosibirsk passenger car shed of the West Siberian branch.
  • The Siberian railway agency of the West Siberian branch.

Awards were given to employees of key professions for professional achievements, namely, Best Middle Manager (10 people), Best Foreman (8 people), and Best in Profession (39 people).

A significant step in improvement of the work motivation system of JSC FPC is a project entitled The First among the Best. The First among the Best is a business competition of train crew employees.

Results of the competition on the level of structural divisions are drawn every month and on the level of the Company and branch and annual results, every quarter. The First among the Best award and sign are granted to one team only who wins on the results of the year.

The 2014 winner is the Urals branch of JSC FPC, the crew of the Perm-Novorossiysk passenger train No. 325/326 of the Perm passenger car shed that is headed by the passenger train commander M.V. Zheltyshev.

Care of professional sanity of staff

The Company is implementing a project entitled Health Management with psychological support offices where train crew are offered rehabilitation (corrective) procedures to prevent professional burnout. There is also monitoring of the mental and emotional condition of this category of staff.

Culture and sports

Healthy lifestyle promotion is a part of the healthcare programme for employees.

In September 2014, the final stage of the JSC FPC staff Olympics was held in St. Petersburg for the first time in the Company’s history. There were competitions in mini football, volleyball, swimming, weights, and track and field. The Olympics were organised by the Primary Trade Union Organisation, a social partner of the Company.

Mass corporate sport events promote a healthy lifestyle and provide for better relations between the staff.

Youth policy

In 2014, the Federal Passenger Company held its 5th anniversary Youth Assembly.

Young employees of the Company were trained under the programme entitled ‘Young Leaders. Efficient Team. Innovative Thinking’ by trainers from the corporate university of OJSC Russian Railways and took active part in the roundtable discussion with the top management of the Company, department managers, and trade union delegates.

The skills that are gained at such assemblies will enable every young employee to raise his or her professional and corporate competencies and to become a better qualified professional.

Corporate pension system

Corporation pensions are a part of employees’ benefits and meet the basic principles of the Strategy of Long-Term Development of the Pension System of the Russian Federation.

As of the end of the reported period, over 27,000 employees, which is 37% of all the Company staff, joined the non-government pension agreement with the Blagosostoyaniye (Wellbeing) private pension fund.

In 2014, the costs of private pension plans amounted to RUB 701.9 million.

The Company provides comprehensive support to its veterans; social guarantees to retired pensions of JSC FPC are provided via Pochet (Honor) charity foundation.

Corporate research

The Company does an annual sociological poll of the staff on the effectiveness of implementation of the strategy of development of the human resource potential. The staff satisfaction index is growing steadily by one point per year. Employees are involved intensively in solving business problems, which proves that JSC FPC is a company whose staff provide a balanced combination of focusing on customers’ needs and, on the other hand, compliance with the standards of quality and traffic safety.

Corporate events

In 2014, the Company did an environmental project entitled ‘Plant Your Own Tree’ with over 50 trees and shrubs planted.

In December, a Major Day was held for last year students of railway colleges.

V.Barashkin, Supreme Category Teacher of the Corporate Centre, was awarded at the competition of professional teaching skills of teachers at teaching centres of OJSC Russian Railways in the nomination entitled Best Teaching Practices in Professional Training of Workers of OJSC Russian Railways in the Systems of Railways and Facilities, Car Systems, and Transportation Systems.

A competition entitled ‘A Day in a Soldier’s Life’ with stories about students working as stewards in passenger cars during summer vacations was held at the Facebook page of the Company. The authors of three stories got letters of gratitude and corporate gifts at the 2014 National Assembly of Student Teams at the Moscow State University.