Motivation

EVRAZ strives to provide optimum working conditions and opportunities for professional development. We approach each employee individually, and continuously review and revise our motivation system.

Financial motivation

EVRAZ endeavours to look beyond compliance with minimum wage requirements, with a view to ensuring that staff are fully compensated for their efforts. We also ensure that the remuneration system at Group enterprises is transparent and easily understandable for employees.

In 2020 EVRAZ continued to implement a Target Remuneration System in various enterprises, including seven shops at EVRAZ ZSMK, four shops at EVRAZ NTMK, two shops at EVRAZ KGOK, and EVRAZ Vanady Tula and Evraz Tekhnika. Over 43,500 employees were included. In 2020, the Group exceeded its plan for all shops of the Urals and Siberia divisions in relation to the Target Remuneration System.

The aim of the project is to elaborate and implement a uniform set of fair and transparent rules and principles for setting remuneration levels across the Group’s enterprises, and to match fixed and variable pay so that amounts and growth trends depend on the performance of the employee, team, and department. This ensures a focus on continuous process improvement and helps achieve the ambitious goals that have been set for the department and enterprise as a whole.

One Group priority is to ensure that the Target Remuneration System is comprehensible for everyone. Therefore, multiple communication events are in operation at EVRAZ, including in-person or Zoom conferences, shift meetings, website and newspaper publications, the distribution of printed brochures about the Target Remuneration System, and videos. Employees can submit questions about the system via a hotline or app, by e-mail, through a portal or call-centre, or by contacting the HR partner.

The Group continued its work within a grading programme and ambitious goal-setting system, created for paying monthly bonuses to employees graded lower than shop manager. The grading system and remuneration management principles have enhanced the transparency of employee remuneration. In 2020 the grading system was expanded to include certain Coal segment departments.

Ratios of EVRAZ standard entry level wage vs local minimum wage, 2020
GRI 202–1

Non-financial incentives

GRI 401–2

The non-financial compensation package offered to EVRAZ employees exceeds minimum statutory requirements and contributes to their total remuneration. The package includes:

  • voluntary health insurance.
  • additional voluntary insurance against accidents at work.
  • a state pension programme.
  • a programme that offsets part of interest paid on mortgages.
  • free wellness leave vouchers for employees and their families.

Apart from current employees, some categories qualify for non-financial assistance from EVRAZ, including former employees that worked for 10 or more years at the Group. Special assistance is provided to employees that have become members of public organisations, and young professionals. The Group congratulates employees and their families on holiday occasions, and organises cultural, entertainment, and sporting events in the regions where it operates.

EVRAZ collective bargaining agreements also prescribe additional leave for childbirth, weddings, and the funerals of close relatives. There is also a programme in place that provides financial assistance to employees in challenging life circumstances.

In 2020 many social programmes were put on hold due to the COVID-19 pandemic, and the whole focus switched to people’s health. In 2020 we launched the pilot project Health Management TOP-300, together with a medical centre. The project will now be expanded. Also, at the end of the year, in the wake of the COVID-19 pandemic, special post-rehabilitation programmes were introduced at the sanatoriums Linevka and Green Cape.

We completed preparatory work to sign an agreement with Alfa-Insurance. Now all employees have regular medical examinations and can consult digital doctors and medical professionals. Based on the results of medical examinations we form risk groups. Employees who fall into these risk groups are provided with special treatment. This programme will run until March 2021, and there are plans to extend it across all divisions.

Changes were made to our regulations covering catering facilities. As part of social support, we expanded cafeterias in two divisions. Due to changes in the law on remote working we are also elaborating a regulation on working remotely, and there are plans to introduce respective compensation for costs incurred as a result of working remotely.

Performance management

The staff motivation system at EVRAZ includes KPIs to assess staff productivity. The KPI system is continuously reviewed and refined. Technical KPIs are in line with best industry practices and are monitored by the Group’s CEO, while corresponding KPI targets are included in management scorecards, down to the level of shop managers.

This year EVRAZ plans to update the personnel assessment system so that each worker’s accomplishments are viewed individually, rather than as part of a certain position or group. This assessment will be held every year.

As part of our HR strategy, in 2020 EVRAZ implemented an HR-analytics project to enable the heads of shops and mine directors to monitor their departments’ HR metrics and to ascertain how their actions could have an impact on certain indicators.

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