The HR policy of JSC Aeroflot is designed to strengthen the Company’s positions on domestic and international markets for air transport, to win the trust of passengers, and to ensure professional development and social provisions for Company employees. Efficient relationships between the Company and its workforce are among Aeroflot’s key competitive advantages, and the system is designed to take full account of all of the factors that motivate employees to realise their potential to the fullest extent. The key objectives of Company personnel policy include training of flight and cabin crew, training staff to work on new types of aircraft, and providing social support for Company personnel.
The main tasks in Aeroflot’s HR policy are:
- Timely monitoring of selection and recruitment needs;
- The appointment of staff with appropriate professional skills, specialisations and qualifications to various business units;
- Training an executive team for the Company bearing in mind strategic business objectives, and assessing the future development prospects of Company staff;
- Attracting highly qualified professionals with potential for career growth to come and work at the Company;
- Staff certification in order to raise the productivity of professionals working at Aeroflot and the level of responsibility of Company leaders, and to ensure the most efficient use of labour;
- Developing and maintaining a high level of employee loyalty;
- Rapid resolution of problems at all stages of work with personnel.
Headcount of JSC Aeroflot employees by job specification
| Employees by job specification | 31/12/2013 | 31/12/2012 | Notes |
|---|---|---|---|
| Flight crew | 1,935 | 1,825 | |
| Cabin crew | 5,229 | 4,572 | |
| Maintenance and repair | 2,166 | 2,422 | |
| Airport services | 4,019 | 3,851 | |
| Sales of tickets and services, advertising | 1,418 | 1,686 | Due to a change of classification:
|
| Other staff | 3,124 | 2,062 |
|
| Total | 17,891 | 16,418 |
Age structure of JSC Aeroflot personnel,%
Structure of JSC Aeroflot personnel by category,%
The headcount of JSC Aeroflot staff as of 31 December 2013 was 17,891, representing an increase by 1,473 people in 2013. This was caused by increase of traffic, fleet expansion and centralisation of the sales functions of several Group airlines within JSC Aeroflot. The largest growth of headcount was in the following Company departments: in-flight services (13.5%), ground support (11.7%), sales (9.3%), and flight operations (6.1%).
The average age of personnel was 38.8 years in 2013 compared with 39.4 years in 2012.
Headcount of Aeroflot Group employees by job specification
| Staff by specialisation | 31/12/2013 | 31/12/2012 | Change,% |
| Air crew | 3,098 | 3,025 | 2.4 |
| Cabin crew | 7,922 | 7,154 | 10.7 |
| Maintenance, repair and ground service | 9,214 | 9,104 | 1.2 |
| Others | 7,023 | 6,343 | 10.7 |
| Total | 27,257 | 25,626 | 6.4 |
The headcount of personnel working at airlines within Aeroflot Group increased by 1,631 in 2013 to 27,257 by the end of the year, reflecting expansion of the Group’s aircraft fleet.
Total numbers of personnel at Aeroflot Group, including people working in service companies, was 30,469 at the end of 2013, having increased from 28,826 a year earlier.
Professional retraining and raising of qualifications
Aeroflot has put in place an efficient system for training and raising the level of qualification of its personnel. The Company fully complies with all current international standards and Russian aviation standards with respect to training. In 2013, training was provided to about 29,000 staff and students both in-house and at external institutions by means of programmes for retraining, raising of qualifications, and certification. In the reporting year the Flight Personnel Training Department carried out 564 drill meetings, and trained more than 7,000 engineering and technical employees, flight personnel and ground specialists as part of training programmes for the operation of new aircraft types and use of flight simulators, organisation of passenger and freight transport, use of the SABRE automated reservation system, and for other purposes.
JSC Aeroflot carried out attestation of more than 4,000 managers and specialists in 2013, and 99.5% of the staff concerned were found to comply with their job requirements.
Study and training capacities of JSC Aeroflot
As acknowledged by Russian and international civil aviation organisations and industry professionals, the capacities of JSC Aeroflot for education and training of flight and cabin crews are the best in Russia and the CIS and among the best in Europe. The capacities are used for Aeroflot’s own needs and are also provided for use by other airlines. Aeroflot’s flight simulators include the latest Russian and foreign equipment, and were used for training purposes by more than 6,000 Aeroflot crews and 226 crews from other airlines in 2013.
Work continued in 2013 in association with the Russian aircraft manufacturer, Irkut Corporation, to create a training centre for aviation personnel who will operate the new MS-21 short- and medium-haul aircraft, which is under development by Irkut. The FTD MS-2 simulator, developed by Irkut, was rated highly by flight and technical specialists at the MAKS-2013 air show.
Plans for 2014 include further development of the quality management system to meet the challenges of new aircraft additions to the Aeroflot fleet and the adoption of new training techniques. Aeroflot’s flight simulation centre is preparing to train flight and ground maintenance personnel for work with new aircraft, starting training operations with new DT B737 simulators and the ‘cockpit evacuation mock-up’, which rehearses the procedure for pilot evacuation in case of an emergency.
Aeroflot Aviation School
The Aeroflot Aviation School is Russia’s first certified private centre for aviation training. The school uses the latest simulator equipment and also has distance-learning capacities.
The school adheres to the recent IATA-endorsed concepts of ‘new safety culture’ and ‘new distribution concept’, which have been designed to improve the efficiency and quality of aviation personnel training, and to differentiate and improve services. The school provides a broad variety of approaches for raising of qualifications, and serves all categories of specialists. Training was organised for more than 17,000 staff and students in 2013.
The motivation and incentive system for personnel
Aeroflot has a system of staff incentives, designed to build a highly professional workforce and ensure retention of employees.
In 2013, the Board of Directors approved a Statute on Profit Sharing, according to which a sum from Company net income is allocated to a fund for the benefit of employees whose salary levels are determined on the basis of key performance indicators (KPIs). Clause 2.1. of the Statute declares that: “A sum equal to 20% of the amount by which factual net income of Aeroflot Group exceeds the net income target for the reporting period is allocated for remuneration of staff.”
The total number of employees, whose salary levels vary and are paid according to KPI achievement, is about 2,900.
The remuneration fund created under the statute is dependent on two indicators:
Indicator 1:
Share of net income in excess of the target figure, which is placed in the incentive fund.
| Excess of factual net income in the respective year compared with the target figure | Share of net income in excess of the target figure, which is placed in the incentive fund. |
|---|---|
| Less than 0% | 0.0% |
| 0 — 10% | 2.5% |
| 10 — 15% | 5.0% |
| 15 — 20% | 7.5% |
| More than 20% | 10.0% |
Indicator 2:
Rate of year-on-year growth of net income of Aeroflot Group compared with peers
| Position in the group of airline peers (the group is ranked by rate of net income growth, in descending order). | Share of net income in excess of the target figure, which is placed in the incentive fund. |
|---|---|
| 1st | 10.0% |
| 2nd | 7.5% |
| 3rd | 5.0% |
| 4th | 2.5% |
| 5th and 6th | 0.0% |
The total percentage of net profit to be allocated to the fund is equal to the sum of both indicators as implementation progresses.
Aeroflot Group exceeded its net income target for 2013 by more than 20%. The Board of Directors proposed that 10% of net profit in excess of the target should be allocated to the remuneration fund.
Aeroflot Group took first place among its peers by the rate of net income growth in 2013 compared with 2012.
The decision on making of payment from the remuneration fund is taken by the General Meeting of Shareholders.
Categories of workers whose wage formation is not associated with KPIs are covered by provisions of the Statute on Remuneration of Employees of JSC Aeroflot from Annual Net Income of the Company (approved by the Board of Directors, minutes № 10 dated 30 January 2007 as amended by Minutes № 5 dated 5 October 2009).
About 15,000 Company employees receive salaries which are not linked to KPIs.
This Statute applies to employees (mainly production and flight personnel) with the exception of employees of JSC Aeroflot, who have been transferred to a salary system based on KPIs.
Payments to employees under this Statute are funded using 7% of annual RAS net income of JSC Aeroflot, provided that the net income target is fully achieved, plus an additional 20% of any net profit in excess of the target.
Research carried out by Ward Howell found that payments as part of profit-sharing programmes at multinational companies amount to
Company employees receive various marks of distinction in addition to incentives of a financial nature. In 2013 Company employees received various national awards, an honorary diploma from the President of the Russian Federation, awards from the Governments of Moscow and Moscow Region, the Ministry of Transport and other ministries and departments. Nine Aeroflot staff members were given tokens of gratitude by the President of the Russian Federation and more than 60 personnel received marks of distinction (1st, 2nd and 3rd classes) for completing large numbers of accident-free flight hours.
Social programmes for employees
The social policy of JSC Aeroflot is designed and implemented in a systematic manner in accordance with regulatory requirements. The Company views social programmes as an important part of its personnel policy, since they make Aeroflot more attractive as an employer, help to attract and retain highly qualified staff and strengthen Aeroflot’s competitive advantages.
According to a study by the Russian Public Opinion Centre, conducted in 2013, Aeroflot rates among the top three state-owned employers in Russia, offering proof of the Company’s strong with focus on social provision for its personnel.
Aeroflot continued the implementation of its main social programmes for its employees In 2013. These programmes were in the following spheres:
- Wellness breaks and holidays for employees and members of their families
In 2013 the Company programme of sanatorium, resort and wellness breaks for employees and their families was supplemented by a programme of voluntary health insurance, covering injury and work-related illness as well as medical care for the children of employees.
More than 1,500 employees benefited from health and leisure breaks at sanatoria; more than 300 children of Company employees vacationed at a children’s camp in Bulgaria.
- Non-state pension provision
Over 5,000 Aeroflot employees subscribe to the corporate pension programme.
Aeroflot is implementing a special ‘Golden Anchor’ programme to help attract and retain key personnel for positions such as air crew captains. Programme participants are awarded bonuses, which are paid into individual pension accounts in the corporate pension fund.
Aeroflot awards retiring employees a corporate pension in addition to their funded pension. As of 31 December 2013 more than 4,000 people were receiving Aeroflot corporate pensions.
- Transport and parking services for employees
About 3,000 Company employees each day use ground transport services provided free by Aeroflot. Company employees also had the use of about 1,500 free parking spaces at Company car parks in 2013.
- Subsidised mortgages for air crew
During 2013 Aeroflot continued its housing programme, which subsidises mortgage interest rates paid by air crew employees. The programme was used by 78 Aeroflot pilots in the reporting year.
- Accommodation
The ‘Aeroflot air town’ project went ahead successfully in 2013. The project offers a residential settlement with all amenities for the long-term accommodation of flight crews from other cities. As well as providing a place to live and rest, the settlement also operates as an interactive platform for corporate culture and the sharing of professional experience.
- Provide financial assistance to workers and former workers
The Aeroflot Commission for provision of material assistance to employees and former employees of the Company who are experiencing hardship continued its work in 2013 when such assistance was provided to 91 people.
- Reimbursement of costs for placement of children in pre-schools
A total 1,354 employees received reimbursements from the Company in 2013 of money paid to place their children in pre-schools.
- Sports events and corporate celebrations
Aeroflot teams took part in various sports competitions during 2013. The Company rented grounds for sports sections, which operate on a permanent basis and Company employees were given subscriptions to fitness club chains.
Various special events were held in honour of Aeroflot’s 90th anniversary in 2013. They included a concert, a meeting with veterans, as well as creative contests for employees, their children, and pupils at a sponsored children’s home.
- Discount airfares for employees
Since 2006, Aeroflot has been a member of the ZED/MIBA FORUM non-profit organisation, which has a regulatory framework for providing staff travel at discounted fares for personal and work-related purposes (the organisation includes more than 190 airlines worldwide).
During 2013 Aeroflot signed employee discount agreements with seven more airlines. In 2013 about 11,000 Aeroflot employees took advantage of discounted tickets for flights on partner airlines under the agreements.
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