The Company has developed an all-round motivation system to stimulate efficient performance through material incentives (salary package) and moral encouragement (awards).
The basic Company principles of salary package formation are:
The package comprises workers’ wages (average 92.4% of the total at the Russian-based Group enterprises in 2013) plus social grants (7.6% of the total).
The largest portion of the payroll at the Russian-based Group enterprises – 69.1% – belonged to enterprises in Norilsk and the Taimyr Dolgan-Nenets Municipal District.
Group enterprise personnel earnings are calculated according to a tariff system, aiming to balance out and differentiate wages depending on qualifications, proficiency and work complexity.
The basic part of earnings consists of the tariff, which includes compensatory and encouraging surcharges, and depends on work time and productivity, irrespective of the performance of the enterprise and the entire Group. The wage structure did not change considerably in 2013. Basic salaries make up approximately 70% of total employee packages.
The variable (bonus) element of wages depends on individual and corporate performance from the point of indices established by the employer (production plan and programme implementation, compliance with technical standards and norms, quality, efficiency, cost reduction, and corporate culture).
The average monthly wage at the Russian-based enterprises was 75,300 roubles – 9.9% more than in 2012 and 180% more than the national average wage (26,800 roubles). The Zapolyarny Branch average monthly wage was 79,900 roubles, 6.8% more than in 2012 and 160% more than the Krasnoyarsk Territory average monthly wage.
Social grants comprise benefits and compensations envisaged by the Russian law and collective agreements plus bonuses on corporate, social, pension and other programmes.
The Company paid 6.2 billion roubles as The grand total takes into account only expenditures in the Share-Based Pension programme.social grants in 2013 (74,900 roubles a year per worker).
The average monthly salary package for 2013 was 82,800 roubles – 9.5% more than the year before.
TatiNickel and Nkomati regard social grants as part of the personnel attraction programme. These grants include health and pension insurance, and transport fares. Nkomati also helps employees to purchase houses of their own as the company does not provide family accommodations. Apart from monetary benefits, employees are offered medical and psychological consultations. The Nkomati mine also implements a personnel loyalty programme envisaging employees’ personal development, competitive social grants, and encouragement grants for rare specialists. An audit of this programme is underway at the Company to check its compliance with the corporate standards and specific demands of the mine.
Government social welfare is extremely well developed in EU countries, so Norilsk Nickel Harjavalta needs such programmes less than the Russian and African branches. However, NNH policy envisages medical, social and accident insurance, fitness and healthy living programmes, etc. in addition to mandatory social grants stipulated by the law. In particular, every worker is entitled to health and pension insurance. There are also supplementary grants for health services and occupational disease prevention. Employees can spend holidays in cottages rented by the Company, and the plant canteen caters at reduced prices. The Company also offers grants to workers who acquire new skills or improve their general education.
For many years, the Company has bestowed awards on employees for excellent performance and long and impeccable work records.