The wide-scale branch network redesign program, which began in 2011, had an effect on people in general as well on increasing the need for staff.
In 2011, the average number of Sberbank of Russia employees decreased by 5,949 to 231,304. Most bank employees, 53%, have worked at the bank from 3 to 15 years and 20% have worked for over 20 years. 34% of employees are under 30 years old and 10% are nearing retirement or are of retirement age. Over 74% have a higher education qualification. Most employees work directly with clients: 41% in bank service offices, 6% in operational divisions and 6% in collection divisions.
Staff motivation
In 2011, Sberbank continued to introduce new staff motivation principles in order to create a transparent and flexible system, which takes into account the specifics of work and establishes a direct relation between staff remuneration and the results of their work.
The graded staff motivation system has been implemented in the head office and regional banks. More than 180 thousand employees have been transferred to the new graded salary system. More than 4 thousand divisions which employ at least 6 people have been introduced into the staff motivation system, which is unique in the world: the monthly bonus for employees who work with the public depends directly on the number of their sales and transactions. The effect of implementation: revenue from the sale of bank products grew more than 1.5 fold, and work productivity grew 8 %.
The Bank has introduced a System 5+ employee assessment system. The assessment results of the efficiency of Bank managers and employees are used for quarterly and annual bonuses.
Staff training
Sberbank has a corporate training model system. The main aim is to provide efficient staff development in key competences, to provide the knowledge and skills necessary for employees to increase their efficiency and to create a knowledge and skills resource for future employees and for self-training purposes. The Bank's training system complies with business needs and has an effect on achieving strategic goals.
Sberbank has launched a unique business education program for potential managers and the personnel together with the New Economic School and INSEAD as well as the London Business School.
100% of the employees of Sberbank Premier, divisions which organizes sales in companies, and cash settlement centers have completed training through the corresponding programs. All ISD managers underwent training through a comprehensive program. All new employees are trained on products.
In 2011, to mark its 170th anniversary, Sberbank held a series of lectures given by leading international experts in management and leaders of major companies. The lectures were given to bank employees, clients and partners and students and teachers from top Moscow colleges and universities.
Bank benefits and privileges
Sberbank has developed its employee benefits and privileges policy, which determines a single system for providing employees with corporate benefits.
A single health care and accident and critical illness insurance system has been introduced. 100% of Bank employees are insured against accidents and critical illnesses. Comprehensive medical examination has been carried out for employees for the prevention and early diagnosis of illnesses, especially cardiovascular diseases and cancer. More than 85% of employees, 200 thousand people, have undergone medical examinations.
A corporate pension program has been launched which covers almost 150 thousand employees. The program is open to employees with 3 years' continuous employment. The Bank starts contributing to the employees’ pension fund and when they have been employed for 7 years it is transferred to Sberbank NPF, its non-state pension fund, to a named pension account for the amount accrued over 4 years’ participation in the program, and for every subsequent year pension contributions are made to the employee for each full year of employment.
12.Operational Bank functions
Operational functions continued to be developed in 2011. Another 5 Customer Operations Support Centers (COSC) were opened and the centralization program successfully passed the "equator". On the reporting date there are 15 COSCs; centralization is 100 % complete for 9 of them. A management accounting pilot model is being implemented and new standardized processes are being tested in regional banks. Pilot projects for launching interregional COSCs have been launched.
In the reporting year, the Bank's operations unit continued its uninterrupted support for the growing volume of business. The growth in operations for most COSCs was 30% to 60%, while the increase in employees was 10% to 27%. In other words, the support for growing business was accompanied by increased productivity. In 2011, there was significant growth in loan operations, both in the retail and corporate and investment units. The opening of new COSCs made it possible to extend business support in this area 6-10 fold.
The development and implementation of single service quality standards continued. As a result, single registers for business unit operational services, quality standards and rules for working in accordance with service level agreements were approved. By the end of 2011, these agreements were signed across the whole Sberbank system.
In 2012, emphasis will be placed on increasing management and control of work quality and to prepare for the new stage in the development of operational functions, the gradual move to multiregional and multinational service centers.
13.Selected bank projects
Optimization of procurement activities is one of the Bank's strategic tasks. The Strategy for optimizing procurement activities proposes the creation of a Single Procurement Center which will increase the quality of service for internal clients, reduce the time for concluding agreements and decrease costs of procurement activities.
In relation with the introduction of Federal Law No.223-FZ On Procurement of Goods, Works and Services by Certain Categories of Legal Entities dated 18.07.2011 the bank confirmed the Regulations on procurement as the main document regulating relations for supplying goods and services during the procurement process. The regulations will bring the processes for conducting tenders and electronic auctions to a new level. Efficient procurement procedures have been developed for any type of purchase, from simple goods to choosing general partners for complex projects. A system has been developed for automatically collecting information on procurement from all bank branches for analysis and centralized publication on the official website of the Russian Federation.
The bank actively uses electronic auctions to acquire goods and services with the help of the subsidiary company Sberbank-AST COJSC. In 2011, the bank saved more than 2.6 billion rubles or about 14% of the starting electronic auction price. The mass introduction of electronic procurement auctions encourages the development of competition among suppliers, counteracts corruption and provides Russian regional producers, small and medium sized businesses, the ability to supply the Bank with goods and services at a specific price.
Sberbank-AST electronic trading platform was selected by the Russian Ministry of Economic Development and Trade and the Federal Antimonopoly Service, out of five platforms, to organize electronic auctions for state, federal, regional and municipal customers, as well as the organization of procurement for commercial companies. The company is a leading operator of electronic auctions in terms of volume and number of auctions placed by customers as well as the number of suppliers taking part in auctions. In 2011, there were over 93 thousand accredited suppliers and the share of the electronic auction market exceeded 61%. Sberbank AST COJSC is a laureate of the national business prize Company of the Year 2011.
The Auction House of the Russian Federation, which was set up with the participation of the bank to perform property sales, including collateral for loans provided by the Bank, continued its work. The Auction House of the Russian Federation won the qualification selection to provide sales services for property belonging to Moscow city as well as to organize auctions and tenders to sell state property of the Khanty-Mansi Autonomous Okrug - Yugra. Sberbank-AST COJSC and the Auction House of the Russian Federation OJSC are recognized by the Ministry of Economic Development of the Russian Federation as platforms which correspond to the requirements of electronic platforms for selling debtor's property as part of bankruptcy proceedings.
In 2011, Sberbank approved the strategy for participating in modernization and restructuring of the housing and communal services (HCS) sector. While working on the strategy, comprehensive research and analysis was made of the banking services market in the HCS sector in RF constituent entities, which made it possible to determine the investment potential of the bank's participation in reforming this sector, including HCS sector lending. In 2011, pilot investment projects began in the field of reconstruction and comprehensive development of the communal infrastructure in several regions.
Development continued of the investment project for creating an integrated system for dealing with waste in Astrakhan and Vologda regions. The project is designed to resolve the serious challenges of recycling solid household waste in cities. A mechanism has been developed for parallel co-financing of the project, the scheme and forms of cooperation between participants.
In 2011, great attention was paid to the Bank's participation together with the HCS fund in forming a regional system for major repairs to apartment blocks. Trilateral partnership agreements have been signed with the Republic of Bashkortostan, Murmansk and Yaroslavl regions and Krasnodar Territory. The regional system legal structure and the main functions of the authorized organizations of the corresponding constituent entity have been established and the main parameters have been agreed for the regional major repairs program.
In accordance with resolutions of the Government of the Russian Federation, Sberbank acts as a carbon unit operator, which includes the evaluation of applications from Russian investors for approval of projects to be developed under Article 6 of the Kyoto Protocol, the international environmental agreement, which sets out joint implementation by Russian and foreign investors of programs for reducing greenhouse gas emissions.
Twenty applications have been evaluated for projects on modernization of technical equipment in electric and thermal energy, gas and oil extraction, metallurgy, industrial construction materials and chemistry. The total volume of proposed carbon emission was 56 million units. In 2011, on the initiative of Russian investors, transactions were carried out for almost 20 million units.
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2011
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2010
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Number of projects approved / passed for approval
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20
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33
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Volume of emission reductions under approved projects/projects passed for approval (t. CO2 eq.)
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56 mln
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60 mln
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Number of issued emission reduction units
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24.4 mln
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4.2 mln
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Sberbank administers the transfer of projected emission reduction units and ensures the preparation and implementation of international carbon unit transaction agreements. As part of partnership agreements with major Russian investors, the Bank ensures methodological support and implementation of such agreements and prepares projects for reinvestment of income from carbon unit operations in new technical modernization projects.
The Bank has continued to finance organization and project financing of energy conservation and raising of energy efficiency activities in accordance with Federal Law No.261-FZ On Energy Conservation and the Raising of Energy Efficiency and On the Introduction of Amendments to Certain Legislative Acts of the Russian Federation dated November 23, 2009. Over the last three years, loans have been issued for 50 projects with a total investment of 315 billion rubles (Sberbank funds, 113 billion rubles); more than 250 billion of this is invested in the power industry, aimed at modernising old and building new generating capacity and reducing losses from power transmission.
Modernization and development has continued of automated Bank systems as part of the development strategy of Sberbank of Russia for the period to 2014. Sberbank's achievements in information technology are highly regarded within the professional community. In April 2011, Sberbank won the national award IT Leader for 2010 in the nomination for state controlled banks. The national annual IT LEADER prize has been awarded every year since 2002. The organizing committee includes the Russian Association of Managers, the company CROC and the magazines Itogi, IntelligentEnterprise, and CIO: information services manager.
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