generating records annual report 2014

KPI. Employee Evaluation and Remuneration

The personnel performance management and motivation system was introduced in Rosenergoatom Concern OJSC in 2010. It is based on the use of key performance indicators (KPIs) that permits measuring the efficiency and define performance criteria of each individual employee. The remuneration process and its relation to personnel performance and development have become open and transparent.

KPI target values for the current and subsequent years are set up based on the out-performance on the main indicators that characterize the target status – implementation of the Concern’s strategic goals.

The SAP-based automated performance management system is currently implemented in order to enhance convenience and increase performance and control over fulfillment of KPI.

The procedure to remunerate the Concern’s employees is set forth in the following regulations:

The amount of remuneration depends on the position level (with differentiation factors), type of job functions, and the level of fulfillment of assigned key performance indicators (KPI).

KPI DEVELOPMENT PRINCIPLES

SMART CRITERIA
COMPLIANCE
PRINCIPLE

Each set goal should be realistic and achievable. The result should be measured in figures or defined with quality indicators.

DECOMPOSITION
PRINCIPLE

KPIs of subordinates derive from KPIs of managers.

PRINCIPLE OF
BALANCE

KPIs match each other: they are consistent and non-contradictory.

FREQUENCY
PRINCIPLE

Performance assessment is conducted on annual basis. KPIs are communicated to the employee at the beginning of the period and are valid throughout the year.

Amount of Remuneration by Employee Category, thousand rubles per year
Employee category Base salary KPI achievement bonus
2012
Managers 396.7 up 139.9 up
Specialists 203.9 up 41.5 up
Shop floor 86.0 up 8.6 up
2013
Managers 413.3 up 144.6 up
Specialists 214.4 up 42.9 up
Shop floor 93.5 up 9.4 up
2014
Managers 436.4 up 149.4 up
Specialists 226.4 up 44.3 up
Shop floor 98.8 up 9.9 up

In 2014 the minimum salary of a Branch employee totaled 8,050.0 rubles before September 1, 2014 and 8,600.0 rubles from September 1, 2014 (with the federally regulated minimum wage of 5,554.0 rubles).

The evaluation system used to assess managers’ performance is based on the annual evaluation system (which, among other things, is based on key performance indicators achievement).

The system of incentives is based on bonuses for achieved KPIs, where each indicator has a weighted value assigned against the total sum of bonuses. The total amount of bonuses is based on the annual total of base salaries for each position, adjusted by a specific coefficient; the top limit depends on the position level and can be as high as 248% if the target KPI level is achieved. Bonuses are only paid upon achievement of KPI threshold values that are also specified in the individual KPI matrix. If achievements significantly excel the target, the bonus can be increased.