X5 Personnel

X5 is one of the largest employers in the Russian labour market, with a workforce exceeding 100,000 people as of the end of 2011. During the year, more than 9,300 people joined X5 as a result of the integration of Kopeyka; with almost 400 people joining our head office at various levels, including management positions.

X5 Employee Benefits Policies
In 2011, the Company offered the following social benefits for its employees:

  • Medical insurance;
  • Life insurance;
  • Short-term disability payments;
  • Additional payments to employees (financial support);
  • Additional vacation days;
  • Discounts for purchases in our stores;
  • Transportation / Corporate busses.

In 2011, X5 allocated additional resources for medical insurance and life insurance programmes for its employees. Insurance programmes now cover not just office employees but senior store employees as well. In addition, new members of our team now receive insurance coverage immediately upon joining the Company rather than having to wait for the three-month probation period as in prior years.

Those employees, and their family members, who do not qualify for the insurance programme may buy insurance coverage at X5’s corporate rates.

X5 develops and promotes its “Discount” programme, which provides our employees with special deals from our vendor partners including tourism agencies, fitness clubs, banks and educational centres. In 2011, the programme covered only head office staff , but in 2012, we plan to include our regional branches, retail and logistics divisions.

Employee Annual Review System
In 2011, X5 continued to develop its “Compass X5” annual employee review system. This is a critical tool for efficient HR management and performance measurement that:

  • Facilitates employee feedback from team leaders on results and achievements, determines key strengths and areas for further professional development and growth;
  • Supports managers in making staffing decisions and establishing transparent links between employees’ performance and remuneration; and
  • Enables the Company to take professional standards to a new level and increase the efficiency of the business.

The review process assigns each employee an individual score used in calculating annual bonuses, making the process transparent and understandable. This score is also used in training schedules for employees and is taken into account in HR decisions with regard to career development and promotions.

Employee Awards
X5 uses awards for employees as a major tool for motivating, recognising and rewarding employee contributions to the Company. Our inter-corporate award programme selects up to 2,000 employees for various awards in our branch offices and retail and logistics operations.

Internal Communications
In 2011, as a part of the transformation of the Company to a true multi-format organisation, we have reorganized internal communications to support each of our formats’ specific needs. For instance, X5 has corporate newsletters for Pyaterochka, Perekrestok, Karusel, logistics personnel and office employees.

Our internal communications have received distinguished recognition from the business community – in 2011 we received three awards for our corporate media activities, including the award for best media for employees in the corporate communication category of the Retail Business Russia Summit 2011.

Partners in Education
X5 seeks to recruit promising young specialists with degrees in economics and finance. In 2011, the Company established links with top Russian educational establishments including Moscow State University, Plekhanov Russian University of Economics, Russian University of Economy and Trade and various technical schools. X5 gives students internship opportunities at the Company’s head office or in our Perekrestok and Green Perekrestok stores. For professional search and recruitment of qualified personnel, X5 actively participates in the career expos held at various universities.

X5 employees participate in roundtables and conferences for high-school students and graduates and we help to develop high school curricula that foster the skills needed by businesses today. We also organise master-classes for students of technical schools located in Moscow in our “Karusel” stores so they can develop their practical skills in the retail industry.

Attracting and Developing Talented Employees
Our “HR Reserve” programme helps the Company plan to meet the expected demand for new employees, defi ning potential candidates for management and administrative positions in retail operations as well as conducting reviews and training for new positions. In 2011, the number of participants passing through our assessment centres exceeded 1,900 people – 63% of which were X5 employees looking for internal advancement and 37% external candidates – enabling us to fill nearly 600 managerial positions in our stores.

At the end of 2011, X5 revised and developed the scope of professional qualities required for each level of personnel. One of the key objectives for 2012 is the renewal of internal review techniques and personnel development. We are also planning to further enhance and develop the “HR Reserve” programme for retail. In addition, we intend to launch a “Talent Management” programme to identify promising employees that may be promoted to management positions, develop the careers of our high-potential employees and analyze HR risks.

Personnel Training and Development
X5 pays special attention to the training and professional development of managers and personnel working in our stores and distribution centres (“DCs”). The talent of our top managers and expertise of our in-store employees are fundamental to the Company’s operating success and achievement of X5 strategic objectives. Educated and well-trained employees are best equipped to deliver quality customer service and support sales growth in our stores.

In 2011, the number of employees who went through our training centres decreased relative to the previous year to 56,000 as we transferred some educational functions to the store level with the development of in-store training initiatives.

During the year, training programmes focused on practical in-store skills, including ways to reduce shrinkage and improve customer service quality.

In 2011, we conducted a number of trainings for store directors and deputy store directors that were attended by approximately 7,200 employees. These covered various aspects of HR management, including: allocation of responsibilities, motivation and control, business situation analysis and management, service quality management and conflict management and leadership.

Key trends in training and development at X5 in 2012 will be standardisation and optimisation of curricula for different levels of employees, and further development of our in-store training programmes with specific objectives for each format. We will focus on trainings for operational management at all levels: store directors, supervisors, regional and operational directors.

Another area under development is distance learning. We will launch our training software platform and pilot trainings for the stores including computer testing of personnel.