HR management and social partnership
Relevant UN SDGs
Related federal projects
- Stimulating employment and improving labour market efficiency as a way to increase labour productivity
Key initiatives and focus areas
- Staff training and development
- Promotion of collective bargaining agreements and social partnership
- Development of corporate communities
For more details, please see the Development of Corporate Communities subsection
- Programme to improve social and working conditions at production sites
For more details, please see the Social Policy section
- Relocation assistance for new employees
For more details, please see the Social Policy section
The expertise and motivation of the Company’s employees are key to its successful development. With this in mind, Nornickel seeks to create an attractive employee value proposition to help its people fully develop their potential and boost the shared sense of engagement towards achieving the Company’s goals.
The Company’s strategic goal is to ensure its leadership as an employer among metals and mining companies, which is set out in the Human Capital Development Programme.
Key HR management priorities:
- building a professional and balanced team;
- staff training and development;
- improving productivity and efficiency;
- creating a talent pool;
- enhancing our incentive system;
- implementing our social policy.
With a view to making HR decisions and assessing management effectiveness, the Company leverages digital tools to monitor HR metrics on a regular basis, including staff costs, productivity levels, impacts of its social and adaptation programmes, and employee engagement survey results.
HR management responsibilities are allocated among Nornickel’s various governance bodies and business units in line with their terms of reference.
GRI 2–7, SASB EM-MM-000.B
In 2022, the Group’s average headcount was 78,374 employees, of which 99% were employed at its Russian companies. A 6.5% y-o-y growth in the average headcount in 2022 was driven by the investment programme, organisational and technical changes, an expanded scope of works and services, and personnel recruitment.
The headcount of the Group’s Including salaried employees and external part-timers. Russian operations as at the year-end stood at 82,200 employees, with most of them working full time (>99%) and on permanent contracts (>95%). As at the end of 2022, there were 907 employees working under civil contracts.
Locally hired employees GRI 202–2
The share of locally hired executives was 98.7% across the Group’s Russian companies in 2022.
The share of locally hired Locally hired employees refer to the workers who are residents of the country where the relevant Group company is incorporated. employees was 99.7% across the Group’s companies as at the end of 2022.
Nornickel respects employee rights and fully takes them into account in its operations, including by:
- giving its employees equal opportunities to unlock their professional potential, assessing their performance in an impartial and fair manner, employing and promoting people based solely on their professional abilities, knowledge, and skills;
- implementing programmes for the development and social support of its employees, and upholding their rights in respect of social security, education, family welfare, shelter, freedom of artistic expression, and participation in cultural life;
- employing people with disabilities and providing them with the necessary working conditions, including work and rest schedule, annual and additional paid leaves, and financial assistance (according to the employment quotas that vary depending on the region and company size, the share of employees with disabilities starts from 2% of the average headcount, excluding employees involved in harsh, hazardous and/or dangerous work);
- respecting internal labour regulations, which are approved in consultation with the trade union organisation, and formalising employees’ working hours:
- the Company has a standard working week of 40 hours as determined by the applicable Russian laws and regulations;
- employees involved in harsh, hazardous and/or dangerous activities enjoy a reduced working week of not more than 36 hours;
- women employed in the Far North and equivalent areas are accorded 36 hours of work per week unless reduced by Russian laws and regulations. The Company arranges for accurate time and attendance control for each employee;
- prohibiting women’s exposure to harsh, hazardous and/or dangerous working conditions in the mining industry, and showing zero tolerance towards child labour and the involvement of minors below 18 years old in hazardous and/or dangerous work.
The Company seeks to maintain an ongoing dialogue with employees and to offer everyone an opportunity to be heard. In 2022, in addition to the Corporate Trust Line and an improved complaint review framework, the Group continued to run offices for operating, social and labour relations. The number of such offices increased by 8% y-o-y. They are primarily tasked with response to employee queries, control of their processing, prompt resolution of conflicts and prevention of employee right violations, and regular monitoring of social climate within teams. This enables the Company to address any arising issues in a timely manner.
In order to develop interregional social partnerships, in 2019 Interregional Cross-Industry Association of Employers “Union of Copper and Nickel Producers and Their Supporting Industries” and the Trade Union of MMC Norilsk Nickel Employees signed an interregional cross-industry agreement for copper and nickel producers and their supporting industries for 2019–2022. In 2021, the agreement was amended and extended until 2025. This document regulates social and labour relations between employers and their employees, and sets out common approaches to employee remuneration, compensation and benefits, work and rest schedule, health and safety, dismissals and other matters.
As at the end of 2022, the agreement applied to 21 Group companies, covering 89.7% of the Group’s employees.
The Company has a system of social partnership in place at its sites to align the interests of employees and employers in terms of the regulation of social and labour relations. The Company fully complies with the Labour Code of the Russian Federation, collective bargaining agreements, the interregional cross-industry agreement for copper and nickel producers and their supporting industries for 2022–2025, and joint resolutions. We also follow the Freedom of Association Policy approved by the Board of Directors.
Thus, the interests of the Group’s employees are represented on a local, regional and interregional level.
In 2021–2022, the trade unions and social and labour councils made regular contributions to the activities of commissions set up by the employer to inspect the sanitary condition of dietary and general food service providers and to assess the quality of food served at the Group’s facilities in the Norilsk Industrial District.
As a way to improve understanding of the Company’s plans or accomplishments and inform workers about resolutions adopted by the Group’s management on social and labour matters, in 2022 trade unionists were invited to take part in an awareness-raising campaign launched by the employer to highlight changes in the corporate approach to bonus payments to employees for their production-related achievements and contributions to the identification and assessment of health and safety risks. The Company believes that such meetings give an opportunity to maintain a constructive dialogue with the representatives of its workforce and receive timely feedback on ongoing corporate changes.
GRI 2–30The Group companies are parties to 23 collective bargaining agreements covering 94.4% of the Group’s headcount. As at the end of 2022, 7.4% of the Group’s employees were members of trade unions, while 77% were represented by social and labour councils.
Social and labour relations at the Group companies that do not have collective bargaining agreements (5.6% of Nornickel’s employees) are governed through by-laws adopted by such companies in consultation with the employees’ representative body (if any) as and when required by the applicable Russian labour laws.
GRI 402–1As per the Labour Code of the Russian Federation, Nornickel notifies employees regarding significant changes in the Company’s activities:
- the minimum notice period is at least two months prior to the start of such changes; or
- at least three months prior to the start of such changes if the redundancy decision may lead to large-scale dismissals.
These standards are formalised in all collective bargaining agreements.
SASB EM-MM-310a.2To motivate our employees to enhance their productivity and deliver business growth as well as to retain our highly qualified specialists, Nornickel runs a comprehensive employee incentive programme with both financial and non-financial rewards.
The use of financial rewards is governed by the Company’s remuneration policy.
The Company prohibits any discrimination in terms of setting and changing wages based on gender, age, race, nationality, origin, or religion.
Nornickel uses a grading system designed to ensure a fair, transparent, and unbiased remuneration framework within the Company. Grading relies on the point factor method of job evaluation that takes into account knowledge and skills, the complexity of tasks, and the level of responsibility.
In 2022, we continued our efforts to improve the bonus system for PMO staff. The updated incentive system is based on progress against key project indicators designed to motivate and retain key talent until the project is completed.
In the reporting year, the Company changed its approach to the calculation of full-year performance-based bonuses paid to the executives, white-collar and blue-collar employees beyond the perimeter of the performance management system. In line with the updated approach, bonus payments were increased and payment criteria were adjusted, with the final bonus amount now depending on supervisor evaluation.
Changes made to the bonus payment system in 2021–2022 enhanced transparency of the accrual process for employees.
In 2022, a company-wide average monthly salary was 150.4% higher than the average nominal monthly salary accrued to the employees of organisations that are not small businesses across Russia. In particular, it was 64.2% and 137.5% higher than salaries at metal ore mining companies and metals companies, respectively Source: Federal State Statistics Service. .
To project a positive image of the Company in the market, streamline business processes, boost motivation and engagement, and speed up onboarding for new hires, Nornickel seeks to develop its corporate culture with a focus on improving efficiency and accountability.
Training for management teams in corporate culture
In 2022, we continued to offer training for management teams, with two management development programmes sparking particular interest – Engagement Workshops (12 workshops, more than 40 training sessions) and Corporate Culture Workshop (48 workshops at 36 sites). These workshops improved engagement and involvement of management teams in the corporate culture development programmes.
Engagement
Nornickel runs a series of annual activities for managing personnel engagement, which comprises three stages:
- conducting a survey named “Let Everyone Be Heard. What Do You Think?”;
- analysing the results of the survey;
- developing and implementing solutions based on the survey results.
The survey offers the senior management a unique opportunity to receive feedback from their employees, identify key issues and define areas for improvement at each production site. In 2022, 50,500 employees took part in the research (including surveying and focus groups), a 6% increase y-o-y. Its results are subject to review, with corrective actions planned and implemented at all governance levels – from facilities to the Group as a whole.
The engagement index increased by 7 p.p. from 56% in 2021 to 63% in 2022, reflecting concomitant benchmark growth (by 7 p.p. to 56% for the Russian metals industry). In the space of four years, the employee engagement index rose by 19 p.p. from 44% to 63%, ensuring transition to the neutral risk zone. This is the case for 50% of the companies participating in surveys across Russia.
Progressive engagement growth was recorded against the majority of applicable factors.
To boost employee engagement, the Company responds to employee queries and takes management decisions seeking to ensure salary indexation, expand the scope of social programmes, provide employees with workplace amenities and voluntary health insurance, and deliver on the Norilsk and Monchegorsk renovation programmes, environmental programmes, and equipment upgrade programmes.
In 2022, Nornickel developed new approaches suggesting the integration of business objectives into the annual cycle of engagement management: discussion of business goals, assessment of the need for closer engagement with target groups, performance analysis of programmes designed to support key business goals, monitoring of progress in supporting business goals, etc. In addition to that, the Company changed its initiative planning and implementation approach in 2022. Before 2021 and throughout this year, communication initiatives outnumbered measures focusing on process and system changes.
Nornickel completed a correlation analysis to match engagement levels with such variables as injury rates (the correlation ratio came in at -0.5) and absenteeism (the correlation ratio came in at -0.5). The findings confirm the hypothesis that the above factors are related to each other: according to Chaddock scale, the correlation is highly negative, which means that continuous efforts to improve employee engagement are still of critical importance.
Employee awards
To foster engagement through non-financial incentives and recognise employee achievements, the Company has put in place the Award Policy closely linked to Nornickel’s valuesand strategic priorities. The Company rewards employees for their outstanding professional achievements and contribution, innovations that drive growth and add value, efforts going beyond formal agreements with the Company, and business improvement initiatives.
Corporate incentive decisions are reserved to the remit of the Company’s President. In addition to corporate incentives, there are internal incentives awarded to employees on behalf of the enterprises where they work.
The Company awards those employees who showed prodigious operating and management achievements and made a significant contribution to production growth.
Compliance with the Business Ethics Code
To ensure that employees understand and accept the principles and fundamentals of the updated Business Ethics Code (approved by the Board of Directors in 2020), the Company continues to offer its employees training programmes explaining the Code (a training module on the Code was integrated into the Our Values programme, Nornickel Live, and Corporate Dialogues). By the end of 2022, the programmes covered 80% of the Company’s total headcount.
Nickelisation
Nickelisation, a non-financial incentive and acknowledgement platform, is designed to build a closely knit team and promote the Company’s corporate culture by fostering its values, popularising the roles of mentors and internal coaches, and developing a feedback culture. The Company continued developing the project in 2022.
In the reporting year, Gipronickel Institute joined the platform. In 2023, we are planning to roll it out across the remaining Russian business units of the Company.
In the reporting year, employees earned over 245,000 nickels (in-game currency) and purchased over 2,000 gifts with them. They also said thank you to their co-workers 140,000 times and tagged them with value badges 43,000 times.
The platform won an international corporate communications award at InterComm 2021, an award for achievements in human capital management at Crystal Pyramid 2021, and a prize at IT HR Awards. In spring 2022, the 7th edition of WOW!HR Award named Nickelisation the best platform in the Digital Solutions category (the competitors in this category included Gazprom Neft with its career portal, VK with its virtual assistant, DIXY with its distant learning app Academy, Softline with its Telegram-based educational chatbot, and IVI with its proposed 360-degree assessment tool).
Nornickel’s contribution to the Education national project
Relevant UN SDGs
Related federal projects
- Young Professionals
- New Opportunities for Everyone
- Social Mobility for Everyone
Key initiatives and focus areas
For more details, please see the Development of Local Communities section
- Staff training and development programmes, including the development of an educational IT platform
- Corporate scholarships for university students and internships with the Group companies
- Grants for educational institutions and projects through the World of New Opportunities Charity Programme
To deliver on the Company’s goals and objectives, enhance production efficiency, and improve staff motivation, we pay special attention to the upskilling of our labour force, and the development of new professional and management expertise, competencies, knowledge and communication skills.
The employee training strategy, plans and programmes are developed in an ongoing cooperation with internal stakeholders and are regularly updated subject to their needs and Nornickel’s strategic priorities. Thanks to this cooperation, the Company’s development programmes are inclusive and work well to achieve its business targets. Our training programmes cover all functional areas and all employee categories.
GRI 404–1
In 2022, we held 216,000 training mansessions (including training, retraining and skill improvement),
GRI 404–2
One of Nornickel’s priorities in 2022 was to build an accelerated training ecosystem to help our staff achieve the Company’s business goals. The ecosystem became the centrepiece of Nornickel’s Training Strategy for 2022–2025:
To ensure the achievement of said targets, the Training Strategy sets forth the key priorities of the new training system.
The ecosystem-based approach enshrined in the Strategy offers significant benefits for all stakeholders: the manager gets profoundly engaged professionals who can deliver strong results by leveraging their knowledge and effective interaction skills, while employees can fulfil their professional and career ambitions and unlock their potential. The Company is building a new generation of leaders who can move our business forward and address global challenges such as sustainable development, social and economic justice, and cultural transformation.
The underlying principles of the ecosystem are relevance, accessibility and innovation, with employees expected to pursue lifelong personalised training. This model requires new organisational capabilities, including transition to digital platforms and networks of educational opportunities, and new regulatory approaches focusing on the engagement of all stakeholders.
Development of digital skills and improvement of digital literacy remain among the key priorities of our training programmes. That is why the Company continues to run Digital Nornickel, an educational programme focusing on digitalisation and seeking to offer all employees an opportunity to learn the technology and skills required to work in the modern world of digital production and live in a digital environment. As at the end of 2022, 65,500 employees completed the training course.
The Company is looking beyond just providing the existing staff with training opportunities and is trying to expand its target audience outreach. In September 2022, we launched Tsifronikel.Junior, a quest offering our employees’ children aged 8 to 12 to learn more about Nornickel’s advanced digital capabilities by tackling various challenges and accomplishing different missions. Simple assignments help children understand how digitalisation has burst into our everyday activities and become an indispensable tool on our journey towards progress and development.
The Nornickel Academy platform offers educational courses helping employees to upgrade their professional skills in all relevant areas, while also giving them access to the Reading Room with free books on personal growth and materials on the latest educational trends and practical performance improvement tools.
In addition to providing in-person and digital training opportunities, the Company supports designated events (Library Night, Each Day Is a Knowledge Day, New Life Starting on Monday), organises public lectures and master classes (Tribune, workshops for schoolchildren) and maintains ongoing communication (L&D Digest, posts in social media, mass media publications) as a way to support its continuous learning concept.
In 2022, Nornickel unveiled a multi-platform competency management system, which helped fully automate relevant processes and enabled all participants to work in a shared information environment. The project covers 22 companies of the Group.
To guarantee the transparency of online testing, the Company launched a dedicated system that automatically records violations during exams by analysing the behaviour of those taking the test based on the webcam, desktop and mic data. With this new system, employees can take tests from pretty much anywhere (including their home and office), whereas earlier they had to sit tests in their classrooms.