Annual Report 2013

The Bank’s Organizational Structure and HR Management

At the end of 2013, the Bank’s organizational structure comprised 35 standalone structural divisions (33 respective divisions as at 01.01.2013) and 17 representative offices in Russia and abroad.

In the year under review, a standalone structural division, the competences and powers of which embraced issues related to Vnesheconombank’s export support, was established. Apart from it, a division engaged in arranging Vnesheconombank’s procurement activities was transformed into a standalone unit.

The year witnessed the launch of a project to rationalize Vnesheconombank’s system of governance. The work is conducted with the engagement of an international consulting company that would define the ways and means of optimizing the Bank’s business processes, organizational structure, the headcount number and perfecting the system of personnel motivation.

In 2013, the major highlights in HR experience exchange included the 8th International Interbank HR Conference “Human Capital: Efficient HR Management – for Business” that brought together the heads of HR departments representing leading Russian and CIS commercial banks and financial institutions. The conference participants discussed the most urgent problems of HR management, introduction of advanced practices of labor relations in the banking sector.

Apart from it, a round table on “The VEB Group HR: Steering the Course for Joint Development” was arranged. The participants formulated proposals in respect of harmonizing major approaches to HR management within the VEB Group.

Management recognizes that high employee qualifications are a major factor underpinning the Bank’s sustainability. Special energies are devoted to improving employee professional knowledge, skills and qualifications required for work efficiency. The training format is both individual and corporate or remote (on-the-job-training).

In the reported period, 1248 employees (1184 employees in 2012) participated in training and professional development events.

Training was provided in most challenging areas such as counteracting legalization of illicit gains and terrorism financing, reform of civil legislation, engagement in procurement activities, accounting and IFRS theory and practices.

Key elements of Vnesheconombank’s social policies are employee health protection and aid to retirees - members of the Bank’s Retiree Council. The complex program of voluntary medical insurance provides the insured employees with a comprehensive spectrum of medical services. The Program is implemented with the use of the mechanism of the Bank/employee co-investment in the insurance premium.

In the context of securing employee social protection, the retiree support package also includes a non-governmental pension scheme.

Management acknowledges that “Partners of the 21st Century” sporting event arranged on a regular basis tangibly contributes to bolstering the team spirit and reinforces corporate relations between the VEB employees and those of the VEB Group that traditionally participate in the contest.