HR Policy
1. Purpose
1.1 This Personnel Policy of the JV LLC ProCab is a local regulatory act of JV LLC ProCab (hereinafter referred to as the Company) that governs the work with human resources of the Company.
1.2 This Policy has been developed to form a systematic, comprehensive, and unified approach to human resource management within the Company.
1.3 This Policy lays down the fundamental principles for the further development of detailed regulations covering all aspects of personnel management within the Company. The goal of these regulations is to make the Company an attractive employer for individuals who are ready and able to contribute to achieving the Company’s strategic and operational goals.
1.4 This Policy has been developed in accordance with the Labor Code of the Russian Federation and other regulatory legal acts governing labor relations.
1.5 This Policy is approved by the Director of JV LLC ProCab.
2. Terms and Definitions
2.1 The following terms and definitions are used in this Policy:
Company — Limited Liability Company JV LLC ProCab.
Employee — A physical person who has entered into a labor relationship with the Company on a permanent basis, under a fixed-term labor contract, or as a part-timer.
Human Resources — The sum of all members of the Company (employees and management) who, through their knowledge, skills, experience, and professional abilities, influence the results of the Company’s financial and production activities.
Personnel Policy — A system of local norms and procedures aimed at managing human resources in accordance with the Company’s long-term strategy.
Organizational Structure — A graphical visual document that regulates the composition, size, location, activity profile, and subordination of the functional blocks and structural units of the Company.
Job Description — A document that defines the list of labor functions performed in a specific position, the place of the position within the organizational structure, the qualification requirements for the employee holding this position, and the responsibilities and rights associated with this position.
Staff Schedule — A document containing a list of job titles, indicating their number and salary amounts.
Personnel Expense Budget — A document that defines the sources of formation and the purpose of spending funds intended to ensure the tasks and functions of human resource management within the Company.
Competency Profile — A documented set of professional knowledge, skills, abilities, personal, and other qualities that a candidate must possess to occupy a vacant position.
Resume — A document containing information about skills, work experience, education, and other details analyzed when considering a candidate for employment.
References — Gathering information about the professional and personal qualities of a candidate from people who have had extensive experience working with the candidate on professional and production issues.
Talent Pool — A purposefully selected group of highly qualified employees with high potential for career and professional development, planned to fill certain key positions in the Company in the future.
Mentor — A highly qualified employee of the Company who shares knowledge and experience, trains effective work methods, enhances the trainee’s qualification and professional level, and helps the trainee quickly adapt within the Company.
Corporate Values — Fundamental beliefs on which the business is based; these are the rules, moral, and business principles followed by all members of the Company.
3. Principles of Forming the Company’s Personnel Policy
3.1 Principle of Foresight — The personnel policy reflects not only current but also future goals as determined by the Company’s strategic development concept.
3.2 Principle of Priority — The personnel policy ensures favorable conditions for the development of the Company’s most significant activities.
3.3 Principle of Adaptability — The personnel policy facilitates the prompt and flexible adaptation of the Company’s human resource management system to changing external or internal conditions.
3.4 Principle of Comprehensiveness — The personnel policy is implemented in conditions of close interdependence and interconnection of its main directions. The main directions of the personnel policy are:
— Workforce planning and optimization,
— Recruitment,
— Employee adaptation,
— Employee motivation,
— Employee evaluation,
— Employee training,
— Formation of corporate culture.
4. Workforce Planning and Optimization
4.1 Workforce planning and optimization is a direction of the personnel policy that ensures the solution of a complex of tasks to determine the quantitative and qualitative needs for personnel required for the successful operation of the Company.
4.2 Workforce planning involves determining the number of staff units with the required qualifications necessary and sufficient to ensure the human resources needed for the sustainable functioning and expansion of the business. Workforce planning follows the sequence of actions outlined below:
4.2.1 An analysis of the required workforce is carried out by studying the activities of the Company’s strategic development plan, considering potential expansion of the Company’s activities, the need to increase the workload in certain areas of activity, expected results of the annual budget, etc.
4.2.2 If such an analysis indicates the feasibility of increasing the workforce in a particular category, tasks are undertaken to describe the proposed labor functions and determine the total volume of work hours (labor costs) needed to implement them over a month.
4.2.3 Based on the average monthly working hours set by labor legislation for one employee (approximately 160 hours), the total number of new staff units is determined.
4.2.4 Proposals for changes to the Company’s organizational structure are prepared.
4.2.5 Drafts of regulations for new departments and drafts of new job descriptions indicating the qualifications of the proposed positions are developed.
4.2.6 Based on the market assessment of salary levels and the Company’s Wage Regulation, the salaries for new positions are determined.
4.2.7 A draft of the new staffing schedule is prepared.
4.2.8 Coarresponding changes are made to the Company’s personnel budget.
4.3 Workforce optimization involves determining the number of staff units with the required qualifications necessary and sufficient in case of a reduction in the Company’s activity in a particular area. Workforce optimization follows the sequence of actions outlined below:
4.3.1 An analysis of strategic and operational plans, as well as budget assignments, is carried out to assess the expected reduction in the Company’s activity in a particular area.
4.3.2 If such an analysis indicates the feasibility of reducing the workforce, a complete list of labor functions to be eliminated is described, and the total volume of released work hours (labor costs) over a month is determined.
4.3.3 Based on the average monthly working hours set by labor legislation for one employee (approximately 160 hours), the total number of released staff units is determined.
4.3.4 A draft of the new staffing schedule is prepared.
4.3.5 An order for workforce reduction is prepared, and measures are taken to identify specific individuals subject to dismissal at the employer’s initiative in accordance with the requirements of the Labor Code of Uzbekistan.
4.3.6 Corresponding changes are made to the Company’s personnel budget.
5. Recruitment
5.1 Recruitment is a direction of the personnel policy that ensures the solution of a complex of tasks to attract personnel for vacant positions, including finding suitable candidates, determining their suitability, and concluding employment contracts with them.
5.2 Given the diverse development of the Company, recruitment is focused on attracting employees with a high level of basic knowledge and skills, capable of adapting flexibly to market conditions.
5.3 The main criteria when selecting candidates for vacant positions are:
- Required level of education,
- Professionalism,
- Responsibility,
- Initiative,
- Achieving results through unconventional methods,
- Aspiration to be part of a team.
5.4 When filling vacancies, other things being equal, the Company gives preference to “internal” candidates, thereby expanding the opportunities for realizing the career expectations of the Company’s employees, which, in turn, serves as an important motivational factor for them.
At the same time, the Company pays considerable attention to “external” candidates, as their engagement in the Company contributes to the generation of new, fresh ideas and brings unique experiences gained from other companies.
5.5 The recruitment procedure is based on the package of documents formed at the stage of workforce planning: the current organizational structure, staffing schedule, job descriptions, as well as the pre-developed competency profiles for each vacant position. The recruitment procedure is carried out in three stages: searching for and attracting candidates, selecting (evaluating suitability) candidates, and hiring candidates into the Company’s staff.
5.6 The search and attraction of candidates are carried out using (to varying degrees) the following sources:
— Studying the Company’s internal resources (internal staff rotation),
— Taking into account information about suitable candidates from personal and business contacts (friends, acquaintances, colleagues),
— Referring to the Company’s own database of resumes and questionnaires received from individuals who previously applied for work at the Company,
— Searching via the Internet, including reviewing resumes on job search sites, as well as placing job advertisements on these sites,
— Seeking assistance from employment agencies, recruitment agencies, educational institutions,
— Collaborating in terms of personnel provision with regional companies engaged in similar activities.
5.7 Candidate selection (evaluation of suitability) is carried out in the following sequence:
— Reviewing resumes from the list of candidates formed at the search stage,
— Preliminary (telephone) screening interview with the candidate,
— Receiving and reviewing feedback and recommendations about the candidate,
— Having the candidate fill out a biographical questionnaire,
— Conducting a personal individual interview, expert interview, and testing,
— Making a final decision on hiring the candidate or denying the position.
5.8 Hiring selected candidates is carried out in accordance with the requirements of labor legislation and personnel record management norms in the following sequence:
— Submission of a job application by the candidate and provision of necessary documents,
— Completion of a medical examination by the candidate (if necessary),
— Signing of the employment contract in two copies,
— Issuance of the employment order,
— Completion of the employee’s personal card and entry in their work book.
6. Personnel adaptation
6.1 Personnel adaptation is a direction of personnel policy that ensures that new employees are familiarized with the values, rules and norms existing in the Company, are included in the system of informal corporate relations and are immersed in the production process as soon as possible.
6.2 Personnel adaptation is carried out within the framework of general and specialized adaptation programs for new employees.
6.2.1 As part of the general program, a new employee is informed: about the company’s activities, his/her general rights and obligations as a member of the organization, about the Company’s work and rest regime, about the existing remuneration system, about the system of benefits and compensations, about general requirements in terms of occupational health and safety.
6.2.2 As part of the specialized program, the employee is thoroughly acquainted with the functions of the division where he/she will work, his/her direct job duties, and his/her workplace. He is informed about the expected results of his work and how these results affect the activities of his unit and the Company as a whole. At this stage, the employee gets acquainted with his/her supervisor and colleagues.
6.3 Sequence of actions of the personnel adaptation procedure:
6.3.1 Preparatory stage – preliminary development of documentation support for the adaptation process (employee adaptation program, recommendations for assessing the level of the adapted employee, etc.) is carried out.
6.3.2 Information stage – on the day of signing the employment contract the new employee is informed about the company in the context of the general adaptation program. The main documents to be familiarized by the employee at this stage are the Internal Labor Regulations, Job Description, and Regulations on Remuneration.
6.3.3 Familiarization stage – at this stage a new employee is introduced to his/her immediate supervisor and subdivision staff. The supervisor familiarizes the employee with the general functions of the subdivision, relations with related subdivisions, labor protection requirements at the workplace, job duties, production and technical characteristics of the workplace, and the system of control over the results of his/her labor activity.
6.3.4 Adaptation stage – the main stage of the adaptation process, which is realized, as a rule, with the help of a mentor of a new employee. At this stage, the employee, in the course of his/her labor activity, immerses himself/herself in the subtleties of his/her profession, learns in detail all procedures in the context of his/her assigned labor functions.
7. Personnel motivation
7.1 Personnel motivation is a direction of HR policy that ensures formation of a set of driving forces inducing the Company’s employees to initiative, responsible and qualitative labor activity in the interests of the Company.
7.2 Motivation of the Company’s personnel is carried out in the context of three main systems:
— Labor remuneration system,
— System of benefits and compensations,
— intangible motivation system.
7.2.1 The labor remuneration system is designed to provide financial incentives to employees based on the results of their performance of their duties and assigned tasks. The Company has a time-based bonus system of labor remuneration. A detailed description of the remuneration system is presented in the Regulations on Remuneration of Labor of the Company’s Employees.
7.2.2 The system of benefits and compensations is aimed at increasing employees’ loyalty to the Company and is implemented by:
— providing employees with transportation and communication facilities necessary for them to effectively perform their job duties,
— providing assistance to the Company’s employees who find themselves in difficult life situations (illness, death of relatives, etc.).
7.2.2 The system of non-material motivation allows to significantly increase both loyalty and motivation of employees without attracting any financial resources. It is realized through the satisfaction of social and psychological needs of the personnel. The instruments of non-material motivation in the Company include:
— recognition of the employee’s labor successes through timely and sincere expression of verbal or written gratitude, praise,
— providing opportunities for flexible working hours,
— offering a transparent and attractive system of professional and career growth,
— maximum involvement of employees in the general business life of the Company through their broad awareness, delegation of authority and provision of opportunities to discuss important production problems.
8. Personnel assessment
8.1 Personnel appraisal is a direction of personnel policy, which solves the tasks of measuring business and personal qualities of employees, the level of their professional competence and performance.
8.2 Objectives of personnel evaluation:
— fulfillment by employees of their functional duties as stipulated in their job descriptions, as well as determining the degree to which they have achieved the goals and objectives set by management,
— planning and realization of employees’ career,
— determining the need for employee training.
8.3 Personnel assessment tools:
— expert – assessment based on the process of asking the assessed employee questions by a group of experts qualified in a certain subject area and making a collegial decision on the level of his/her knowledge based on the answers received,
— test – assessment based on the application of professional knowledge tests, which contain a set of questions or tasks with closed answer options designed to reveal formalized knowledge in a particular professional area.
8.4 Evaluation of employees of different categories is carried out by the evaluation commission within the terms established by the order of the Director of the Company. Based on the results of the evaluation, the commission may recognize the employee’s compliance with the position held and recommend:
— promote the employee in the position,
— enroll the employee in the personnel reserve,
— increase the salary,
— pay a one-time bonus,
— adjust job duties,
— leave everything (position, salary, duties) unchanged.
The Commission may recognize that the employee is not fully qualified for the position, which will result in the employee being sent for training and then re-evaluation.
9. Personnel training
9.1 Personnel training is a direction of personnel policy that ensures the process of personnel development and acquisition of knowledge necessary for labor activity.
9.2 Objectives of personnel training:
— formation and development of professional knowledge, skills and abilities of the Company’s employees to a level sufficient for effective performance of their labor functions,
— obtaining new and deeper knowledge and competencies required by the Company for mastering promising areas of activity.
9.3. Two methods are used for personnel training – internal and external training.
9.4 Internal training is organized and conducted in the Company with the help of the most competent and experienced employees (mentors), or by direct supervisors of the employees being trained. Internal training is carried out either for the purpose of quicker production integration of a new employee, or for the purpose of increasing the employee’s competencies after unsatisfactory assessment of knowledge and competencies revealed within the framework of assessment activities.
9.5 External training provides employees with the opportunity to acquire knowledge to enable them to realize their full potential and get a chance for professional and career growth. External training is provided to employees in two ways:
— by sending them for short-term full-time training in specialized educational institutions, training centers or specialized courses,
— by means of distance learning organized through Internet technologies.
9.6 External training involves the procedure of budgeting for training expenses, concluding contracts with training organizations, and reporting by the employee on the knowledge acquired.
10. Formation of corporate culture
10.1 Formation of corporate culture is a direction of personnel policy, the task of which is to develop, adopt and assimilate by all employees of the Company a Code of Corporate Values – a formal document setting the general framework of organizational behavior and contributing to the creation of a favorable production climate in the Company.
10.2 Main components of corporate culture that are components of the Code of Corporate Values:
Organizational philosophy – a system of fundamental ideas, perceptions that set the meaning of the Company’s existence and define its mission, vision and development strategy.
Principles – stable beliefs that determine the behavior of the Company and its employees in different situations and processes.
Norms – rules of conduct that determine the order and nature of relations in the organization.
Organizational climate – socio-psychological state of the team, the nature of internal and external interactions, interpersonal relations and mutual expectations.
Management style – a set of techniques and methods used by the Company’s management to achieve its goals.
Ceremonies and rituals – symbolic events consisting in following traditions, using certain expressions, signs, symbols reflecting the uniqueness of the Company’s culture.
10.3 The Code of Corporate Values is not an overnight document. It is formed gradually as the Company grows and accumulates unique corporate values peculiar to ProCab JV LLC. Realization of these values is influenced by the specifics of the Company’s activity, mentality of employees, regional peculiarities, production tasks, managerial outlook.