Metinvest Group from May 1 this year will increase the salaries of the production personnel of its Ukrainian enterprises.
During April, the company will apply a differentiated approach to the revision of wages and will announce how much the wages of various categories of workers will increase.
Prerequisites for improvement
Metinvest values highly the contribution of its employees and intends to continue to be the leader in terms of employee productivity and motivation. The group monitors the rate of inflation and staff outflow, so the decision to revise salaries will be verified.
Who will receive a salary increase
Metinvest will focus on equalizing the salaries of workers performing the same tasks within the same profession and qualifications. The salary increase will not yet affect the administrative and management personnel of the management company.
In matters of remuneration management, Metinvest focuses on qualified technological and maintenance personnel. In this way, the Group motivates employees who make the greatest contribution to the efficiency of technological processes and product quality. At the same time, personnel of auxiliary professions, as well as employees with low qualifications, will receive a preview below, which motivates them to develop and acquire new knowledge and qualifications.
In April, Metinvest is completing the stage of the annual personnel assessment based on the results of work in 2020. From April 1, new individual additional payments will be revised and established based on the results of the annual assessment of workers in the amount of 5% to 25%.
In addition to increasing salaries, Metinvest maintains a traditionally wide range of tools that allow increasing income by participating in operational improvement programs and submitting proposals to improve production safety and efficiency. The motivation tools available in the Group make it possible to increase employee earnings by up to 10% due to an increase in actual output and a decrease in unplanned equipment downtime.
What is the salary level at Metinvest enterprises?
For many years, Metinvest Group employees have been the highest paid in the mining and metallurgical industry of Ukraine. Salaries at Metinvest are 10-15% higher than those of competing companies.
It is the attraction and retention of qualified personnel in Metinvest’s team that allows the company to maintain its high positions in the steel market. As of March 2021, the average salary at Ukrainian enterprises of Metinvest is 20.4 thousand UAH. This is 10% higher than in the region, and 65% higher than the average salary in Ukraine.
Over the past two years, wages at the Ukrainian enterprises of the Group have grown to 22%. In 2019, this happened due to a 15% increase in salaries, and in 2020 – due to bonuses to employees for achieving record indicators of operational efficiency. The group fully covered the rise in inflation over this period.
Staff outflow in Metinvest Group last year decreased from 11% to 8.6%. The company has achieved the lowest staff turnover in the last ten years thanks to the constant development of systems for adaptation, maintenance, training and motivation of employees.
Metinvest Group turns 15 this year. The Group employs over 80,000 people. Throughout its history, Metinvest has remained one of the largest taxpayers in Ukraine: over 15 years, the company has paid about UAH 165 billion in taxes to the budgets of all levels. Metinvest is a strategic investor in the Ukrainian economy, which has allocated about $ 10 billion over 15 years to modernize enterprises. During this time, the city-forming enterprises of Metinvest invested about UAH 2,500,000,000 in the development of Mariupol, Krivoy Rog, Avdiivka and Zaporozhye.