Employee Motivation

We set ourselves ambitious goals and achieving them depends directly on the loyalty and focus of everyone working at the Bank. Therefore employee motivation is an important aspect of the Bank’s strategy. We strive to reward our employees’ efforts and provide them with a decent income. In 2011, the average monthly salary for Sberbank employees increased 17% compared to the previous year, reaching RUB 51,849. Now we can state that the remuneration of our employees has reached market level. Moreover, when the Bank records good financial figures (a factor affecting employee bonuses), our high-achieving employees enjoy considerably higher remuneration than their peers at other banks and companies in their regions.

Our annual employee survey — which in 2011 covered over 100,000 employees — demonstrated a significant increase in satisfaction with the Bank’s remuneration and motivation system.

This was mainly the result of the introduction of new employee motivation principles at the Bank, which include:

  • The fairness of our remuneration system within the Bank is supported by a job grading system based on an analysis and assessment of job positions using an internationally recognised methodology;
  • The market competitiveness of salaries offered by the Bank is supported by a thorough analysis of remuneration offered on the labour markets of respective regions for comparable jobs;
  • The ability of employees to influence their income is supported by a performance management system, which ensures a direct connection between employee remuneration and performance.

As a means of motivating our younger employees, in 2011 the Bank held the Super Final of our Corporate Bank Management Championship, with 3,550 young employees from the Central Head Office, regional banks and foreign subsidiaries participating in the event.

In 2011, the Bank developed and adopted a comprehensive Benefits and Privileges Policy applicable to all Sberbank employees. The policy defines the main principles and elements of our corporate benefits and privileges system. The system includes targeted corporate programmes, socially oriented programmes and status-based benefits.

The targeted corporate programmes involve employee benefits standardised across the Bank’s divisions. They do not involve direct payments to employees but instead aim to support fundamental values (health, development, stability and security). They include: the corporate pension programme; voluntary medical insurance; injury and serious illness insurance; healthy lifestyle and sports programmes; employee loans at special rates; and corporate discounts provided to employees by Sberbank’s external partners.

We are interested in creating conditions that encourage our employees to link their future to the future of the Bank

Under our socially oriented programmes, the Bank provides employees with financial assistance in difficult circumstances, in connection with the birth of a child or the funeral of a close relative, as well as for big birthdays and retirement. Certain categories of employees are allocated a relocation allowance when moving from one Sberbank regional bank to another. Specific benefit types and sizes, as well as eligible employee categories, are defined at the level of regional banks with local conditions taken into account.

We are interested in creating conditions that encourage our employees to link their future to the future of the Bank. In 2011, pursuant to the decision of the Management Board, we began implementation of Sberbank’s corporate pension programme. Over 150,000 employees across the entire country are enrolled in the programme. This is an unprecedented project for the Russian banking sector in terms of both the number of participants and the geographical reach. The programme is intended to maintain our employees’ standard of living after retirement.

The programme defines universal principles for pension contributions and the conditions under which corporate pensions are paid. It applies to employees with at least three years of service with the Bank (pension contributions for them are put aside on an annual basis). After seven years of service with the Bank, the funds saved are transferred to the employee’s personal pension account in Sberbank’s pension fund. The main corporate pension scheme is available to employees with more than five years to go before they reach pension age. Employees less than five years away from pension age are covered by a “set benefit” pension scheme, under which they will receive a corporate pension in the amount of 2.5–5% of their base salary in addition to their state pension.

The programme is being jointly implemented with the Sberbank Non- State Pension Fund, which was established in 1995. The fund is one of the top ten pension funds in the Russian Federation; it has the highest reliability rating (А++) from the Expert RA rating agency and the maximum reliability rating (ААА) from the National Rating Agency.

Corporate pension programme*

  Set benefit pension plan* Set contribution pension plan**
* There are 18 separate set benefit pension programmes for each regional bank and the Central Head Office
** Introduced in 2011
*** Included in staff costs within operating expenses
Participants All Bank employees (including retirees) receiving a pension and employees with five years or less to go before pension age (as of the beginning of 2011) All employees with three years of continuous service with the Bank, except for members of the Management Board and employees with five years or less to go before pension age or those already eligible to receive a pension
Conditions The size of benefits depends on the employee’s length of service with the Bank at the moment of retirement Personal pension plans are made available to employees after seven year of continuous service with the Bank; pension contributions are defined as a percentage of base salary
Number of participants As of the end of 2011: 93,058
As of the end of 2010: 296,315
As of the end of 2011: 169,982 **
Pension liabilities In 2011: RUB 4,650 million
In 2010: RUB 7,842 million
Pension expenditures In 2011: RUB 685 million***
In 2010: RUB 1,898 million***

Sberbank has a long tradition of holding professional competitions and granting awards to its best employees. In 2011, Sberbank introduced three new corporate awards in addition to existing ones: the Medal for Merit, the Sberbank Excellence Badge and the letter of appreciation.

Corporate awards granted in 2011

Award Number of awards granted
Golden Badge 5
Silver Badge 28
Medal for Faithful Service 114
Medal for Merit 106
Certificate of Merit 579
Sberbank Excellence Badge 1,137
Letter of appreciation 493
Best in Profession

The annual Best in Profession competition has become a corporate tradition; in 2011 it was conducted for the third time.

The competition is intended to motivate employees to improve their professional skills and knowledge and to foster creativity. It also provides an opportunity for the best employees to share their work methods.

The competition is held across a number of categories (nine in 2011) and includes two stages — at regional and national levels. The regional stage identifies the best specialists at regional banks, while the national stage recognises the Bank’s Best Specialists.

In 2011, winners and runners-up in the nationwide contest represented 12 regional banks. This demonstrates the geographical breadth of the contest and the widespread interest among employees in participating in development processes.

Competition winners and runners-up receive awards from Sberbank’s CEO in a special ceremony.

The winners are provided plentiful opportunities for creative development and career growth.

Winners of the Best in Profession competition

Best Customer Service Outlet Head
Natalya Skirda Yugo-Zapadny Bank
Best Retail Sales Specialist
Lilia Iralina Zapadno-Sibirsky Bank
Best Retail Customer Service Specialist
Yulia Zakharova Sibirsky Bank
Best Corporate Customer Service Specialist
Tatyana Zhidkova Severo-Kavkazsky Bank
Best Corporate Lending Specialist (Major, Large- and Medium-Sized Corporate Customers)
Alexandra Gladyuk Tsentralno- Chernozemny Bank
Best Account Manager (Micro and Small Businesses)
Alesya Kudinkina Srednerussky Bank
Best Debt Recovery Specialist (Corporate Business)
Anton Kiselev Severny Bank
Best Cash Collection Specialist  
Ivan Voronin Central Head Office
Best Underwriter (Processing of Retail Loan Applications)  
Natalya Krasheninina Uralsky Bank

    History

My Annual Report

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