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HR Policy

Principles and Areas of the HR Policy

Aeroflot Group’s HR policy is designed to attract the best industry talent and ensure their professional development. The Group has built up and is continuously developing a relationship framework promoting generation of economic efficiency gains across all business lines. HR management involves a wide range of programmes helping each employee reach their full potential, including training, incentive and social support programmes.

Priority areas of HR policy:

  • identify and attract candidates to support the current and future business needs;
  • match the staffing needs of business units with candidates who have the required profession, specialisation and qualification;
  • build up the talent pool in line with the Group’s strategic development goals;
  • retain qualified and highly skilled employees;
  • conduct employee certifications;
  • foster and maintain high levels of employee loyalty;
  • promptly resolve issues at all stages of the HR management process.

In 2016, for the second year in a row, PJSC Aeroflot was named the Best Employer in Transport and Logistics in Russia by the jury of the prestigious international Randstad Award.

Employees of the HR Department of PJSC Aeroflot (the parent company) interact closely with HR functions of subsidiary airlines across a number of areas, including alignment of organisational and staff structures, implementation of a single organisational structure, and deployment of single standards modelled after Aeroflot’s HR function.

In their approach to human rights, Aeroflot Group companies are guided by both Russian and international laws. Aeroflot Group does not tolerate any form of discrimination or harassment, with antidiscrimination provisions included in key internal regulations. Aeroflot fully embraces difference by valuing diversity in race, religion, physical ability, etc. among its employees. No instances of discrimination or human rights violation were recorded in Aeroflot Group during the reporting period. The Company has never used and does not tolerate child, compulsory or forced labour.

Aeroflot Group’s headcount

PJSC Aeroflot’s headcount

Note. Headcount breakdown as at the year end.

Aeroflot Group’s headcount breakdown by category, 2016

Aeroflot Group’s headcount breakdown by company, 2016

PJSC Aeroflot’s headcount breakdown by category, 2016

1 Includes pilots-in-command, co-pilots, and other flight crew members (flight engineers, pilot instructors, and others).
2 JSC Orenair, JSC Donavia, JSC Sherotel, LLC Aeroflot-Finance.
Note. Headcount and personnel breakdown as at the year end.

As at 31 December 2016, the total headcount of Aeroflot Group was 36,556 employees (34,031 employees as at 31 December 2015). A growth of 7.4% in the reporting period was driven by the fleet expansion and implementation of a programme to provide employment to ex-Transaero airline’s employees – the Group’s companies employed circa 4,300 people.

As at 31 December 2016, the headcount of PJSC Aeroflot was 21,554 employees (20,404 as at 31 December 2015).

Aeroflot Group’s headcount breakdown by age, 2016

Gender breakdown of Aeroflot Group’s headcount, 2016

PJSC Aeroflot’s personnel breakdown by years with the Company, 2016

Aeroflot is committed to equal opportunity for men and women. Women account for 50.7% of Aeroflot Group’s total headcount. Specifically, PJSC Aeroflot employs 10,823 women, including flight attendants, office and maintenance service employees, as well as pilots. As of the end of 2016 21 female pilots were employed by PJSC Aeroflot, while the total number for the Group is 23 (vs. 14 and 18 as of the end of 2015 respectively). About 35% of PJSC Aeroflot’s managers (division head level and higher) are women.

Group also employs foreign pilots to offset pressure on the labour market. As at 31 December 2016, there were 41 non-resident pilots on PJSC Aeroflot’s headcount. Personnel turnover at PJSC Aeroflot in 2016 was 7.5% (6.7% in 2015).

Corporate Culture and Values

Aeroflot has its own distinctive corporate culture, representing a unique combination of philosophy, values, beliefs, standards, and behaviours that unite Aeroflot Group and are shared by all employees. Corporate culture supports our business strategy and underpins all HR management processes.

CUSTOMER TRUST

Each airline of our Group guarantees its customers faultless safety and high quality service at all stages of air travel.

We strive to exceed the expectations of our customers and do everything possible to ensure that our customers come back again and again.

We work hard every day to ensure the highest safety level.

TEAMWORK

We are a closely-knit team of professionals who cannot imagine living without the sky.

We are always open to innovation, initiatives and new knowledge in order to develop and move forward.

We respect our colleagues and are ready to engage in constructive dialogue in order to achieve results.

We provide a stable work environment with equal opportunities for learning and personal growth.

RESULTS FOR SHAREHOLDERS

Our goals are to achieve sustainable and dynamic growth, increase the company’s value and provide stable income to our shareholders.

We are committed to high standards of corporate governance and business ethics.

We are a company with transparent reporting and we are always open to our partners and shareholders.

SOCIAL RESPONSIBILITY

We care about the environment and continuously improve energy and environmental efficiency, using a modern and young fleet of aircraft and the most advanced technology.

We are fully aware of our responsibility to society and actively participate in socially important and charitable projects.

We participate actively in the development of the Russian air transport network and create new jobs in the regions.

We support and actively participate in the development of the Russian aircraft manufacturing industry.

Corporate communications

Aeroflot publishes a monthly company newspaper covering, on a regular basis, the most prominent and exciting corporate events. The My Aeroflot newspaper is a key internal communication tool, reflecting our engaging corporate culture.

One of the 2016 highlights was the launch of our renewed intranet portal. The renewed intranet is based on the advanced MS SharePoint platform. The new intranet offers mobile access, a major improvement over the previous version.

Personnel Training and Development

Aeroflot delivers staff training and professional development to ensure that its employees maintain and develop high specialist skills in line with current requirements of international standards and the Federal Aviation Rules. In 2016, PJSC Aeroflot arranged for training for almost 30 thousand employees both in-house and externally, across a range of training, retraining, professional development, and certification programmes.

Employees enrolled in training programmes

In 2016, Aeroflot was assigned the status of ACCA Approved Employer, confirming compliance with high standards of training and professional development of finance employees.

Note. Some employees completed more than one training programme.

In 2016, the Department for Aviation Personnel Training delivered training to nearly 6,000 employees from across engineering, flight operations and ground operations, with students attending instruction courses in new aircraft types, flight simulator training and other courses. In 2016, over 4,000 employees completed training courses at external educational institutions under compulsory operations personnel training and other training programmes.

Aeroflot Aviation School’s programmes

Aeroflot Aviation School, Aeroflot’s in-house educational institution, is a reliable provider of vocational training services for airlines, airports, and other companies and entities in the Russian civil aviation industry. For many years, the School has successfully collaborated with leading international industry organisations and has accreditations with ICAO, IATA, TCH, Sabre, Amadeus, SITA, and other industry bodies and organisations; the Aviation School is also certified for compliance with ISO 9001-2011.

In 2016, the Aviation School trained more than 19 thousand students – employees of the Company.

Retraining and professional development courses mainly focus on:

  • ground handling and ground service operations,
  • flight attendant training,
  • pilot retraining on new aircraft types,
  • aviation security,
  • regulations for hazardous cargo transportation,
  • foreign languages, etc.

Training platform

As from the end of 2006, the Company uses its own training platform providing training for cockpit and cabin crew of Aeroflot, subsidiary or third-party airlines in passenger rescue procedures in case of emergencies on board an aircraft, emergency landing or ditching.

The training platform currently offers 11 types of simulators and mock-ups for emergency response training, a simulator for real firefighting on board an aircraft, a mezzanine area with Airbus A320, Boeing 767, and Boeing 737 aircraft stairs to practise emergency evacuation procedures, and a 24 by 22 metres training swimming pool. In 2016, almost 28 thousand aviation specialists were trained at the training platform.

Students trained at the training platform

Best in Trade professional skills competition

In 2016, PJSC Aeroflot re-launched the Best in Trade professional skills competition to identify and reward the best employees and ensure their professional development. The competition was held in nine professions that are key to Aeroflot: passenger service agent, flight attendant, senior flight attendant, pilot-in-command, co-pilot, pilot instructor, air ticket sales agent, aircraft technician, aircraft mechanic, and aircraft mechanic for aircraft frames and engines.

The competition tasks challenged participants to show both theoretical knowledge and practical skills, demonstrated on simulators and in situations as close to real life as possible. A total of five business units took part in the competition, and 27 winners were named the best in their trade. The competitions were widely covered in corporate media and Aeroflot’s official channels on social networks.

Collaboration with technical schools and universities

For many years, PJSC Aeroflot has been developing successful partnerships with leading industry technical schools and universities, in particular, by organising internships for students. Based on the results of such internships, talented young specialists are offered employment opportunities with the Company. Since 2013, PJSC Aeroflot has been involved in targeted training programme at the following industry universities:

  • Saint Petersburg State University of Civil Aviation,
  • Ulyanovsk Civil Aviation Institute,
  • Moscow State Technical University of Civil Aviation.

Over this period, 206 students signed educational contracts for targeted training. The first students enrolled in the programme will graduate in 2017.

In addition to the targeted training programme, PJSC Aeroflot cooperates with seven civil aviation technical schools and universities under the Personal Scholarship project. Mutual cooperation agreements have been signed with Ulyanovsk Civil Aviation Institute, Saint Petersburg State University of Civil Aviation, Buguruslan, Sasovo, and Krasny Kut Civil Aviation Schools, as well as Egorievsk and Kirsanov Civil Aviation Technical Colleges. For the 2016–2017 academic year, 50 personal scholarships of RUB 10 thousand per month have been allocated. As at 31 December 2016, PJSC Aeroflot employed 63 graduates who received the scholarship as students.

In 2016, Aeroflot signed an agreement on guaranteed employment of top-grade graduates with Krasny Kut Civil Aviation School (a branch of Ulyanovsk Civil Aviation Institute). There are plans to amend the training programme to provide targeted training for students in the types of aircraft operated by Aeroflot.

Employee Incentive System

PJSC Aeroflot offers competitive remuneration package comprising salary and performance bonuses. The Company’s remuneration system takes into account position grades, business unit performance, regional labour market specifics, as well as each employee’s personal contribution. The Company’s senior management performance assessment is based on key performance indicators approved by the Board of Directors.

Non-financial motivation tools are widely used in the Company to help recognise employees’ contribution to the Group’s operations and reward high performance.

In 2016, over 1,300 employees of PJSC Aeroflot were recognised with corporate awards, including three employees awarded the Aeroflot Excellence badge of honour, 523 employees awarded Certificate of Honour of PJSC Aeroflot, and 99 employees awarded the Operational Excellence in Aeroflot badge. 57 employees of the Flight Operations Department were awarded distinctions For Incident-Free Flight Hours.

More than 70 employees received government awards, as well as industry awards of the Russian Ministry of Transport and other agencies.

Best performers in the Group’s subsidiaries were also celebrated with corporate awards, industry awards of the Russian Ministry of Transport, and with regional and municipal awards.

Talent Pool

In 2016, to strengthen its talent capabilities and meet PJSC Aeroflot’s need for qualified personnel to fill vacant and new positions, the Company continued leveraging its management talent pools at different levels, targeting level 1, 2, and 3 management positions.

In 2016, the lists of employees included in the talent pools were updated and their total number reached 288. A talent pool for senior management positions was created, its participants passed an independent assessment, and their key areas of development were identified.

Candidates to management talent pools are selected in accordance with the selection criteria set forth in the Regulations, focusing on:

  • higher education in line with the profile of the target position;
  • at least two years’ employment with the Company;
  • high level of expertise;
  • strong performance in the area of expertise;
  • personal and business potential required for further professional development and career advancement.

Social Programmes for Company Employees

Aeroflot has in place a comprehensive incentive system comprising a wide range of social programmes that help create a comfortable environment encouraging employees’ professional and personal development. The Company’s social policy is based on applicable local internal regulations, including PJSC Aeroflot’s Collective Agreement.

Occupational pension scheme

The Company runs a pension scheme based on joint participation of the employer and the employee. In 2016, personal contributions of the scheme participants were matched by those of the airline at the rate of 20%; the corporate programme covered 5,800 employees.

The special Golden Anchor pension plan is in place for pilots-in-command. The airline awards annual bonuses to the scheme participants’, contributed into personal accounts in the corporate pension fund.

Upon retirement, the airline complements the statefunded pension of an employee participating in the private pension scheme with a corporate pension. As at 31 December 2016, corporate pensions were paid to 4,300 former employees.

The Company runs its private pension scheme in parallel with an incentive scheme to provide mandatory pension insurance through co-financed contributions to the cumulative part of the statepaid pensions.

Resort therapy programme for employees and their families

Aeroflot runs a resort therapy programme to improve the health of its employees and their families. In 2016, 2,300 employees were sent to health resorts. More than 400 children of the Company’s employees spent time in the Vita children’s holiday camp in Anapa. A health rehabilitation programme for 450 pilots and flight attendants was set up at health resorts in the Czech Republic.

Resort therapy programmes are financed using voluntary health insurance coverage and funds from the budget of the Social Insurance Fund of the Russian Federation. Average employees’ share of contribution does not exceed 10% of the total treatment cost. Employees exposed to harmful working conditions receive health resort treatment free of charge.

Sports events

The Company regularly organises sports events and celebrations. In 2016, Aeroflot’s sports teams successfully competed in futsal, volleyball, and table tennis tournaments held as part of the industry Spartakiad to celebrate the Civil Aviation Day; an ice hockey exhibition game with Finnair airline’s team; the Crimean Autumn ice hockey tournament for amateurs teams; futsal and volleyball tournaments for the Aviation Industry Cup; a football exhibition game with the Administration of the Khimki Urban District. In addition, corporate volleyball and swimming contests were held.

To improve health and promote wellbeing among the Company’s employees, fitness club memberships were offered throughout the year.

Housing programme for Aeroflot airline’s crew

In 2016, 47 Aeroflot’s pilots continued to participate in a housing programme, with the Company subsidising interest payments on employees’ mortgage loans.

Corporate housing

During the year, the airline’s key employees from the regions were provided with company-owned housing close to Sheremetyevo airport, with 1,500 employees on average benefiting from the free lease arrangements.

Company vehicles and corporate parking programmes

Company vehicles are used to transport Aeroflot’s employees to work at the Company’s offices located near Sheremetyevo airport and back. In 2016, around 3,400 people benefited from company vehicle transportation on a daily basis. An average of 2,200 corporate parking places were provided to PJSC Aeroflot’s employees every day.

Financial assistance to current and former employees

In 2016, PJSC Aeroflot’s Social Policy Commission provided financial support to 183 current and former employees in difficult circumstances.

Daycare spending compensation programme for employees’ kids

During 2016, over 1,800 employees of the Company were provided with daycare spending compensation benefits for their children.

Medical centre

Aeroflot has set up its own medical centre providing healthcare services to current employees and their families, as well as retired employees of PJSC Aeroflot, including aeromedical assessment and rehabilitation of cockpit and cabin crew, and pre-flight medical examinations. The medical centre also participates in the Company’s social programme as regards arranging resort therapy for employees. In 2016, the medical centre’s polyclinic reported a total of 230 thousand visits.

Number of people registered with the medical centre for healthcare services

Staff travel benefits

Aeroflot offers special terms for employees travelling on flights operated by the airline. In addition, starting from 2006, PJSC Aeroflot has been a member of ZED/MIBA FORUM, a non-profit organisation uniting over 230 member airlines and regulating the offering of special terms for employee personal and duty travel.

In 2016, Aeroflot airline renewed its agreements on employees’ personal and business travel with Air France, Adria Airways, and airBaltic, and reactivated its ZED agreement with Aeromexico; an agreement on employee travel with Lufthansa came into force. As at the end of 2016, PJSC Aeroflot cooperated with 60 airlines under employee interline travel agreements, including with SkyTeam Alliance member airlines.

Throughout 2016, about 15,700 employees of PJSC Aeroflot and their families got tickets for partners’ flights under agreements on employee personal and duty travel.

Occupational Health and Safety

PJSC Aeroflot’s occupational health and safety system is designed to eliminate occupational injuries and diseases, promote safe behaviours, develop hazard avoidance skills, and continuously improve working conditions. PJSC Aeroflot has a certificate confirming its compliance with regulatory occupational safety requirements. Health and safety aspects are included in the Collective Agreement.

In 2016, PJSC Aeroflot’s key health and safety performance indicators did not exceed industry averages for relevant types of business activity1 . During the reporting year, there were 19 accidents of varying severity, including two serious accidents. Human factor played a significant part in all the accidents.

1 In accordance with Resolution of the Social Insurance Fund of the Russian Federation No. 72 On Approval of Values for Key Indicators by Type of Business Activity for 2016 dated 26 May 2015.

Number of injuries per 1,000 employees of PJSC Aeroflot

Lost time incident rate (per injured person) in PJSC Aeroflot

Number of workplaces subject to special assessment of working conditions

In 2016, we continued consistent efforts to ensure safe working conditions, with special attention paid to health and safety training, monitoring the state of health and safety performance and preventing occupational injuries and diseases. Induction training was provided to 2,000 new employees. Health and safety trainings run by an accredited training organisation covered 1,600 managers and specialists of business units; and 473 managers and specialists on business units’ commissions were trained and tested in health and safety.

To prevent occupational diseases, 16,700 people passed regular medical examinations.

As at the end of 2016, in accordance with Federal Law No. 426-FZ On Special Assessment of Working Conditions, PJSC Aeroflot carried out a special assessment of 5,835 workplaces, of which 4,249 were found to have acceptable working conditions, and 1,586 were recognised as having harmful working conditions. Workplaces with harmful working conditions accounted for 27% of the total number of workplaces subject to special assessment of working conditions in 2016. A premium of 4% to 24% to the salary is set for employees exposed to harmful working conditions.