Goals until 2025
Goals until 2025
Goals until 2025
M.Video–Eldorado is a major retailer of home appliances and consumer electronics in Russia and ranks among the top 10 electronics retailers in the world. Over its 28 years in the Russian market, it has evolved from a small store in Moscow to a leader in its sector and a major publicly traded online retailer in the country. All the Group’s achievements are due to the achievements of its employees. As such, people are our main asset, and we are committed to creating a safe and comfortable working environment where everyone can realize their potential and contribute to the development of society.
We have been recognized as the best employer in retail for five years. In 2020, according to the hh.ru rating, M.Video–Eldorado was the only retail brand among the top 10 employers of Russia.
The Group has one of the lowest levels of average employee turnover in the industry. In 2020, we maintained employee turnover at 30.5% despite all the challenges and limitations of the pandemic.
The Group is also a leader in terms of employee engagement, which stands at 80% versus the industry average of 68%.
Russian employers rating from hh.ru
Rivelty Best Intranets Russia
|M.Video–Eldorado Group ranked ninth in the rating of Russia’s best employers and first among retailers||Intranet of the Year||Grand Prix in the Innovations category for the Digital Show 2020 project||Silver medalist in the international Intranet and Digital Workplace Awards|
In 2020, M.Video–Eldorado transitioned to a new integrated staff management model that makes the most of the digital environment. It encompasses all stages of interaction with employees: from hiring, adaptation, development and motivation to support in the Group’s alumni club. The new staff model aims to create conditions to maximize efficiency, engagement and innovation among employees.
At the end of 2020, 80% of the Group’s employees were working in a hybrid format given the new realities caused by the COVID-19 pandemic: most of them were working remotely from home, while the rest were on a mixed schedule or have a standard work week. Hybrid work formats help to create the most comfortable and safe conditions for different categories of employees, while continuing to solve business-related issues effectively.
Last year, we started several initiatives to address seasonal peaks and make our business more flexible. We ensured that our personnel could move around between the Group’s stores and introduced shift exchanges that enable us to cover temporary staffing needs amid employee shortages.
We firmly believe that store, office and service support staff are the key to success when building a sustainable and profitable organization. M.Video– Eldorado offers its employees considerable opportunities for a career, training and professional development. We provide decent working conditions ( SDG 8 Decent Work and Economic Growth ), respect human rights and do not tolerate discrimination ( SDG 10 Reduced Inequalities ).
Getting to know a company starts with its reputation in the market. We are transforming from a strong retailer with professional IT to a leading digital company with retail touchpoints. We strive to recruit the best employees from all over Russia and abroad. We offer a hybrid work model with the advantages of office and remote work, flexible schedules, a culture of open dialogue and an engaging environment. Empathy, autonomy and trust are the core values for employee–organization interaction in the new realities.
Our transition to hybrid work formats will help make our processes more flexible and adaptable. In particular, we have entered the national labor market (and even beyond) and can make attractive proposals to the widest possible target audience regardless of borders. Around 30% of the IT specialists who joined the Group in 2020 live and work in different regions of Russia, not just in Moscow.
We need people to drive the technological transformation of our business. We are introducing multichannel recruitment designed to improve the quality of the selection process and reduce its cost and length.
In an effort to attract the best people, the Group uses different channels of communication with candidates and also conducts training sessions to train and induct employees. Together, we are strengthening the functionality of the career website, developing intern programs and using a variety of channels to recruit the very best people.
In 2020, 10,500 people joined our team in Russia. Most of the employees— 9,900 people—were operational staff (retail, service and logistics divisions), who remained at the forefront of our business despite all the challenges of 2020.
During the year, we began actively developing internal teams with strong digital capabilities. We are transforming the Group in terms of our employer brand and taking a product-based approach to work, where IT equals business. As a result, we are learning within the Group to combine the desires and needs of both parties. We are as open as possible to the IT market: using various opportunities for communication, we show applicants the scale of the projects and innovative approaches in our work. Everyone working in technology, regardless of their level of professional skills, has the same growth potential within the organization because they are implementing a great digital transformation together.
In August 2020, we launched a referral program for IT professionals. We hired 11 people in the first five months and will expand this recruitment channel in 2021. Over 180 people joined our IT team during 2020, and we plan to hire more than 600 people in 2021.
As we scale up internal digital expertise, we are planning cross-platform projects to recruit employees in 2021, which include cooperation with the Russian Internet’s main social platform for IT, habr.com. We are launching podcasts, video jobs, community management and other initiatives.
Adaptation and onboarding are among the most important processes for helping new employees immerse themselves in the Group’s corporate culture and join the team. We use the opportunities offered by the digital environment to immerse employees in our business in the most convenient, interesting and effective manner possible.
To make the adaptation program more effective, we have revised the process for newcomers to our stores. Now the adaptation program will last six weeks, during which new employees will take the necessary courses, study theoretical issues and also fulfill a sales plan. The timef rame can be optimized due to new formats of interaction, such as chatbots. The program helps to assess new employees’ adaptability to different communication channels and to constantly remain in touch with them. On completion of the adaptation process, new employees undergo testing and an evaluation of their execution of the sales plan. Based on this, they are assigned a category that affects their income.
State-of-the-art training and development programs offer a solid foundation for achieving the Group’s long-term goals. We systematically invest in developing our staff’s skills and capabilities to deepen their knowledge of our products and services and find tailor-made solutions for any customer. We encourage greater cross-functional interaction between teams, train managers on the principles of effective delegation and work to promote a corporate culture within teams.
In 2020, we continued to scale up our educational programs and promote employee development. Our employees completed over 370,000 tutorials on leadership and professional development. We provided on-the-job training under the guidance of managers, mentors and colleagues. Due to the pandemic, educational programs primarily shifted online, where we used various forms of distance learning, such as asynchronous formats, e-courses and training via social media (an expert zone, messengers and chatbots).
During the year, we gradually expanded the list of programs available on the training portal and also continued to develop the Office Manager School. We devoted special attention to developing communication, technical and digital skills. An adaptation program for occupational and fire safety was devised for the employees of partner companies. In an effort to increase flexibility in turbulent times, we updated some of the training programs, such as the Introductory Course for New Employees, Product Training, and Occupational Health and Safety for Frontline and Support Workers. Today, more than 110 training programs are available to our employees, including a special package of programs on COVID-19.
We regularly evaluate the effectiveness of our educational programs, including through feedback from employees. In 2020, the NPS for training was 90% for office employees and 87% for retail and support workers.
We cultivate an inclusive work environment by encouraging diversity of culture and thought. Through investment in training and development programs, we create a pool of diverse talent and encourage the growth and development of all employees. It is important for us that people feel valued, are treated fairly and have equal opportunities in the workplace.
M.Video–Eldorado understands the importance and value of timely feedback on each employee’s performance and current skill and competence levels. The Group evaluates the productivity of its employees as part of an annual business assessment and performance review, which analyzes the achievement of individual goals and the effectiveness of the business as a whole. The appraisal and performance review help support talented professionals and create opportunities for them to grow and develop, including through internal competitions for vacant positions.
The performance review of store employees is conducted twice a year and is based on an analysis of their professional experience and skills as well as the fulfillment of their monthly sales plans. Each year, more than 24,000 people undergo performance reviews, the results of which affect the level of salaries of most categories of personnel. In 2020, we had to move away from the standard format for conducting personnel assessments, but the process will resume in 2021, taking into account the new work formats.
In 2020, the annual appraisal of head office employees and retail executives (division directors, regional managers and store directors) encompassed around 3,500 people, or 12% of the Group’s total headcount. New innovations in 2020 included an evaluation of digital and leadership capabilities as well as a 360-degree assessment based on feedback from colleagues about an individual’s actions in actual work situations and business acumen. In addition to the personnel assessment, we also introduced additional programs to form a pool of future retail managers and provide feedback. Such programs include a pilot project on real-time feedback from teams as well as special development programs that encompassed more than 2,000 people.
As such, the assessment procedures help to comprehensively analyze the development of employees’ corporate skills and effectiveness, form a culture of feedback and identify a talent pool for managerial positions in the office and in retail.
In 2020, we continued to implement the "Career without Barriers" project, a talent pool program for retail employees who want to work in the head office. After successfully completing the selection stages, employees join the talent pool and are given priority consideration for open vacancies.
|Specialists / office employees||2.5||2.3|
Developing a talent pool enables the Group to manage the potential of its human resources, ensure staff safety and help individuals adapt to new positions more quickly. This offers employees clear career prospects and increases their level of loyalty, involvement and motivation, as well as their desire to achieve the goals they have set.
For office employees, as well as applicants for divisional and regional managers, the members of the talent pool are determined based on an annual evaluation made at meetings of the Group’s personnel committees. Initial selection for the talent pool for the positions of store director and manager is based on the principle of self-nomination and obtaining a recommendation from a store director. All potential candidates undergo an assessment of their skills and motivation based on Ecopsy’s VCV and WebAssessment platforms. To ensure an independent and comprehensive assessment of an employee’s potential, we also conduct an evaluation using the Korn Ferry, RosExpert and TalentQ tools. Based on this, a decision is made to enroll the employee in a modular training program for a target position (Office Manager School).
Through existing programs and opportunities for development, more than 1,800 people are part of the talent pool for the positions of regional and divisional managers, store directors and other leadership positions; more than 50 people are successors to senior executives at the head office. We are proud that over 96% of retail appointments are made from the internal talent pool, and almost 13,570 people, or 48% of total employees, were transferred horizontally or vertically within the Group in 2020.
M.Video–Eldorado takes care of each employee and offers competitive remuneration and a benefits package. We are aware of the current challenges and risks involving the remuneration system in the retail sector. As such, we closely monitor the fairness and balance of our employees’ earnings and maintain open and transparent relationships with our colleagues.
M.Video–Eldorado ensures its remuneration system is competitive and fair by conducting an assessment of positions in accordance with the international grading system based on the Mercer methodology. We review employee remuneration each year based on the Group’s positioning policy and an analysis of the labor market in all cities where we operate. In addition, remuneration for IT team employees is revised twice a year, since the market for this profession is highly competitive.
A ratio of the constant and target variable portion of income is established for each position based on the extent of the position’s influence on business results. The target variable portion in total income increases in light of the position’s importance for business. The actual amount of the variable portion is determined based on a centralized system for setting, evaluating and monitoring key performance indicators (KPIs). KPIs provide a fair assessment of both the individual and collective performance of the Group’s employees and divisions.
A bonus system based on a direct percentage of sales is used to ensure that employees in retail sales achieve the best-possible results. Salespeople can obtain information about the bonus amounts online using their mobile devices.
All M.Video–Eldorado employees are provided with a social benefits package, which is offered in a format called "Benefits Cafeteria" and includes private medical insurance, workplace accident insurance, medical examinations, vaccinations, the opportunity to sign up for fitness clubs, as well as a package of work-related benefits (compensation for travel expenses, mobile phone expenses and expenses associated with moving to another area as part of the relocation policy). As such, employees can choose the benefits that are most interesting or relevant to them within the limits set for their positions.
The Group also has extensive non-financial incentive programs. We reward the best employees on a quarterly and annual basis, maintain ratings and hold competitions and contests that aim to improve the performance of both individuals and entire divisions. In 2020, some 4,000 employees won such monthly and annual contests as "I Care," "Turn on the Future," "It’s All About Attitude," "Bars’ and "Electrum."
Thanks to its comprehensive staff development and motivation system, M.Video–Eldorado is a leader in terms of employee turnover and engagement among retail companies not only in Russia but also worldwide. In 2020, the Group had employee turnover of 31%, versus an average of 57% in Russia and 45% globally. The engagement rate was 80% for the Group, compared with 68% on average in Russia and worldwide.
Given the current realities, the Group pays special attention to the health, employment and financial security of its employees. To this end, last year we introduced additional support measures for staff:
In 2020, as the world changed rapidly and unexpectedly, corporate communication and support measures played a key role in ensuring the continuity of work processes and boosting employee morale.
When building communications, we adhered to three key principles:
Last year, we successfully launched business communications for retail staff, thereby eliminating distance between the head office and store personnel. By October 2020, the conversion rate for reading business communications was 80%–87%, while that for their execution was 65%–82% among employees of M.Video and Eldorado stores.
Following the integration of M.Video and Eldorado in 2019, we created a fundamentally new solution called EM.Life 2.0, which conveys the Group’s strategy effectively and unites employees throughout Russia from their first day of work. In 2020, EM Life 2.0 was recognized as the best communication and service ecosystem in Russia at the Russian Intranet Awards and one of the best in the world at the Step Two Intranet and Digital Workplace Awards.
During the COVID-19 restrictions, we were among the first to transfer employees at the head office to remote work from home. The Group’s flexible infrastructure helped to organize full-fledged workplaces outside the office as quickly as possible without losing efficiency. A digital workplace for employees was set up by the services in charge of training and development (EM.Study), personnel administration and digital recruiting, self-service, team collaboration and electronic document management. In-store Operations and mRTD, digital tools for organizing work and sales at stores combine to form a unified digital ecosystem.
During the pandemic, the M.Video–Eldorado intranet became a key source for obtaining information and consolidating the staff’s attention. Today, 6,000–10,000 people visit this communication channel daily, including employees of our partners and former M.Video–Eldorado employees who are part of the digital Alumni Club.
In 2020, the Group confirmed its leadership in retail by organizing the “Make a Name for Yourself!” contest for CE salespeople, the first of its kind in Russia. The project aims to bolster and improve the prestige of the sales profession and support employees who are helping people choose the technology they need despite the situation with COVID-19. The contest featured 3,500 CE salespeople from 50+ networks. The names of the winners were announced at the DIGITAL SHOW gala concert. In addition, the contest resulted in an entry in the Records of Russia book for “the largest number of registered salespeople at an online store attending a single event in Russia.”
During the pandemic, we undertook a wide range of initiatives to maintain engagement and help employees adapt to the new realities and processes:
We organized the following additional support measures for employees of the retail, service and logistics departments, who continued to work on the front line throughout the year:
M.Video–Eldorado continues to develop its corporate accounts on the leading social media platforms in Russia: VKontakte and Instagram. In 2020, we posted about our Group on digital channels, such as our career pages, career website and specialized media resources, to show current and future employees what life is like at M.Video–Eldorado as well as how our colleagues in different regions are working. In 2020, the overall reach of corporate communities on social media doubled to more than 2.3 million users, with 616,955 users on Instagram, 1,289,180 on VKontakte, 210,000 on Facebook and 180,000 on Habr. Total traffic from communities to the website showing vacancies exceeded 20,000 clicks, up 50% compared with 2019.
The Group also actively supports corporate volunteering. We understand the importance of developing local communities and encourage our employees to change the world around us for the better.
M.Video–Eldorado’s volunteer movement currently has around 5,500 people. Our employees plant trees, clean and develop protected areas, take part in charity races, help children, the elderly and veterans, as well as support animal shelters. In doing so, they contribute to the achievement of SDG 3 Good Health and Well-being and SDG 17 Partnerships for the Goals .
On September 5, 2020, the Group launched the sixth Russian charity race "Running for a Smile!," which aims to help small children who are awaiting maxillofacial surgery as part of the "Beautiful Children in a Beautiful World" program. Charitable registration fees from the race participants are used to cover the huge and sometimes unaffordable expenses for the families of these children. We traditionally hold the charity races in autumn and bring together employees from different cities for joint races. However, 2020 made its own adjustments to the usual format of the campaign and, for the first time, the charity race was open to everyone. Runners took part in small teams while observing social distancing. The race involved 5,558 participants from 212 cities and raised almost RUB 1.5 million, which helped give a smile to 10 children!
In 2020, we launched the Alumni Club to provide career counseling and support to former M.Video–Eldorado employees. We care about what they are doing in their careers and lives, so we organized a closed course just for them called "Anti-Crisis: Details for Building a Career," which aimed to provide strategies for finding a job in an unstable time. More than 500 people learned about the principles of building a career in this period of uncertainty, opportunities in freelance professions and the growing demand for digital specialists. We also shared practical tips on how to prepare for interviews and how to design their CVs and cover letters.
In 2020, we intensified health and safety measures and undertook a range of complementary actions to protect people’s lives and health in line with SDG 3 Good Health and Well-being and SDG 8 Decent Work and Economic Growth. In accordance with federal and local regulatory requirements, we take additional measures to protect the health of our employees and customers. Store employees always wear personal protective equipment, regularly take their temperatures and wash their hands with antiseptics. All our premises are regularly cleaned and sanitized, including equipment samples on display. All stores have recirculation units to disinfect the air, and checkout areas have special markings to ensure social distancing as well as protective screens. In addition, we have visual aids and audio announcements that inform customers about the need to comply with the prescribed measures, give recommendations on safe behavior in stores and provide other important messages.
|Percentage of employees covered by the OHS management system||100%||100%|
|Number of employees covered by the OHS management system||28,490||28,364|
|Total workplaces subject to a special assessment of working conditions (SAWC)||18,600||16,900|
|Number of workplaces that have undergone an SAWC||9,963||1,690|
|including class 1 workplaces||714||66|
|including class 2 workplaces||8,211||1,350|
|including class 3 workplaces||1,038||274|
|including class 4 workplaces||-||-|
Staff training is an essential tool for educating professionals and managers about hazards and risk management in the workplace. Another objective of training is to provide employees with a deeper understanding of legal requirements and best practices in workplace health and safety so that they can also contribute to the development of a strong safety culture within the Group.
In 2020, 100% of employees completed mandatory health and safety training in the workplace, including measures to prevent the spread of COVID-19. All store managers and members of the commissions responsible for testing knowledge of occupational safety and work at heights for store and warehouse employees regularly undergo mandatory training at training centers (upon initial hiring and again after three years).
|Occupational health and safety training||2,139||1,608|
|Occupational safety training when working at heights||2,997||3,222|
|Electrical safety training||1,012||1,450|
|Industrial safety training||570||1,707|
|Fire safety training||220||321|
|Mandatory testing of employees’ knowledge||26,351||26,756|
In 2020, M.Video–Eldorado recorded 12 lost-time employee injuries associated with its operations, 12 medical incidents and zero deaths. No injuries were reported among contractors associated with the Group’s activities. In addition, there were no accidents among employees as a result of occupational diseases with loss of working time or fatal accidents due to occupational diseases.7
|Fatal accident rate (FAR)||0||0|
|Lost-time incident rate (LTIR)||0.20||0.23|
|Total recordable incident rate (TRIR)||0.41||0.47|
|Injury frequency rate is the number of lost-time work injuries per 1,000 employees||0.39||0.42|
|Total number of fatalities associated with the Group’s operations||0||0|
|Total number of lost-time injuries associated with the Group’s operations (excluding fatalities)||11||12|
|Total number of medical incidents||11||12|
|Number of working days lost due to accidents||682||627|
The Group’s charitable endeavors primarily focus on helping to pay for expensive treatments for children (SDG 3 Good Health and Well-being), providing assistance to people in difficult life situations (SDG 17 Partnerships for the Goals) alongside protecting the environment. In addition, starting from March 2020, we have been flexible in responding to the changes that have occurred in the country and suspended work on certain charitable projects, while focusing on the following areas:
1 Support for the most vulnerable members of society due to the adverse epidemiological situation in the country: we have been helping doctors and elderly people in Russia’s regions;
2 Helping employees and their families who have found themselves in a difficult situation due to COVID-19.
It was also paramount for us to continue working in our traditional areas of charity, which we do through the Group’s corporate foundations: Beautiful Children in a Beautiful World and Our Initiative.
|Expenses on charitable activities, including foundations and programs, RUB mln:||65.5||40.1|
|Beautiful Children in a Beautiful World
"Beautiful Children" program
"Beautiful World" program
|Our Initiative foundation, including
"Let’s Grow Together" program
"Teenager’s World" program
"21st-Century Professions" program
Children and the environment are what we live with, depend on and cherish. They are our shared and enduring values. M.Video–Eldorado established the Beautiful Children in a Beautiful World foundation in 2013 to achieve the following key goals:
In 2020, the foundation continued to implement the two charitable programs "Beautiful Children" and "Beautiful World", while actively attracting external funds and engaging volunteers. In 2020, the foundation raised RUB 38.2 million, with 78% of donations coming from M.Video–Eldorado and its clients. Since the programs were launched, the foundation has implemented 53 nature conservation projects in 21 protected areas, bestowed 1,097 smiles and provided aid to 731 children.
To provide organizational and financial assistance for the treatment of children with congenital maxillofacial problems. If they are not treated in time, children not only suffer in terms of their health and physical development but can be negatively impacted for the rest of their lives. Multistage treatment can restore speech functions, return an aesthetic appearance to their nose and lips and ensure their facial bones develop normally.
The foundation bestowed smiles upon 147 children, with 64% of children receiving support for the first time. Surgical treatment of maxillofacial problems accounted for 85% of the assistance provided.
To support nature conservation in Russia—the nature we love, are proud of and want to pass on to our children. These efforts focus on supporting the gold standards of nature: Russia’s nature reserves and national parks.
Projects currently underway:
In 2021, the MIF publishing house released the book 100 Years of Nature Reserves with the support of the Group and the foundation. The book is the result of a four-year (2013–2016) trans-Russian photo expedition dedicated to the 100th anniversary of Russia’s nature reserve system. The author, the renowned nature photographer Igor Shpilenok, traveled 60,000 kilometers in a camper van, visited more than 50 nature reserves and national parks, and captured the beautiful natural surroundings that they have managed to preserve. His journey took him to the shores of the Bering Sea, the Sea of Okhotsk, the volcanic plateaus of Kamchatka, the Primorye territory, Outer Manchuria, Lake Baikal, endless Siberia, the South and North Urals, and the White Sea. The Beautiful Children in a Beautiful World foundation will receive proceeds from each book sold.
The Good Toys campaign lets each customer feel like a wonder-worker and perform a New Year’s miracle: either bestow a smile on a child with maxillofacial problems or help to preserve a protected nature reserve. All you have to do is add RUB 50 for a "good toy" to your purchase during checkout at M.Video and Eldorado stores. Through the participation of our caring customers, we sold 239,272 "Balls of Kindness" and "Give a New Year’s Miracle" toys in 2020 and raised almost RUB 12 million. This amount will be sufficient to fund 76 operations for children with maxillofacial problems as part of the "Beautiful Children" program.
More information about the projects is available on the website of the Beautiful Children in a Beautiful World foundation: www.detipriroda.ru
The Our Initiative charitable foundation, established in 2005, is an economic tool for implementing M.Video–Eldorado’s social programs and projects. In 2020, we focused on providing social assistance to doctors, hospitals and the elderly, as some of the most vulnerable members of society.