The main goal of the remuneration policy in the Company’s group is to provide employees with competitive wages and the application of a transparent system of bonus payment to employees, which contributes to improving performance and financial incentives for employees to achieve high performance.
The average salary of employees across the Company’s group for 2016 has increased as against to the same figure by 11 % – from 162,633 tenge to 181,300 tenge.
The growth of average salary of production personnel was 11 % – from 150,129 tenge to 165 055 tenge, administrative personnel amounted to 11.9 % from 309,584 tenge to 346,449 tenge.
Enterprises of the Company’s group ensure observance of state guarantees in the field of labor remuneration established by the labor legislation of the Republic of Kazakhstan.
In order to increase the content of wages and compensate for inflationary processes, and in accordance with signed Collective Agreements, the Company’s group indexed wages in the amount of 7 % in 2016.
An important step and an effective tool in the way of achieving strategic goals is introduction of an integrated system of personnel performance management (SPM). The introduction of SPM allows improving the management system of the organization at all levels and its performance as well.
Performance management system has been operating in the Company since 2014 that allows the Company to simultaneously address several global tasks:
- When planning work for the year and setting goals, the principle of cascading executives KPI and KPI processes is applied in relation to an employee, this influences on the level of employees loyalty through correspondence of an employee with an organization, its values, principles and objectives;
- Identification of high-potential employees of the Company (HiPo) and planning of talent management system;
- Development of a fair remuneration system for personnel by assessing the contribution of employees to the achievement of strategic objectives of the company;
- Changing skills and attitudes of management staff through building a management system not by local assignments but by long-term goal-setting;
- Creation of a corporate culture of constant improvement and achievement of high results of work.
As part of the implementation of the Company’s Transformation Program, it is planned to introduce the performance appraisal in all of the Company’s subsidiaries.
At present, across the Company’s group, 4 % of employees of the group’s total headcount have been covered by the performance evaluation system.
Percentage of employees who are subject to periodic performance and career development evaluations
|1.||Total number of employees (headcount) at the end of 2016||22,230|
|2.||Number of employees who passed formal performance assessment, incl.||947|
|3.||The share of employees who passed official performance assessment||4 %|
In order to increase the motivation of employees and build a transparent system of labor remuneration, the Company conducted activities on reassessment of jobs (grading), on analysis of established practice and benchmarking of the wage system, which resulted in revision of the employment conditions and wages of employees in the Company.
This system is built on the principle of compliance with internal equity and external competitiveness of remuneration and allowed to implement an accurate and as fair as possible way of measuring the contribution of each position to the performance of the company.
In addition, the Company participates in the labor market survey on an annual basis, which enables to analyze the competitiveness of the Company’s wages with the external market.
Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation
|№||Indicator||Value (2016)||Measurement unit|
|1.||Minimum wage||24.5||Thous. tenge|
|2.||Wage of entry level employee in an organization in significant regions of operation||122.7||Thous. tenge|
|№||Indicator||Value (2015)||Measurement unit|
|1.||Minimum wage||21.4||Thous. tenge|
|2.||Wage of entry level employee in an organization in significant regions of operation||106.1||Thous. tenge|