In 2018, “Magnit” launched a project to develop a unified performance management system and also introduced a short-term KPI-based remuneration system for managers at the level of department director and above. The Company switched this category of managers to a targeted bonus structure (short-term incentive, or STI), developed and introduced KPIs, and created KPI Maps. Thirty percent of the bonuses for all managers at this level depend on their fulfillment of three main goals: revenue, LFL, and EBITDA. The rest depends on the functional and projected KPI that must be achieved to meet the Company’s strategic objectives.
Employee incentive scheme
The Company introduced a new employee incentive scheme that aims at improving efficiency of the store opening and modernization process.
The “Magnit” incentive scheme seeks to ensure that employees in various professions maintain a high level of engagement and focus on achieving the Company’s goals.
With this in mind, the Company developed a Regulation on Long-Term Incentives (LTI) for key employees of JSC "Tander". The program includes 50 senior executives who have the greatest impact on the Company’s business results. The LTI program provides incentives to fulfill two key objectives: boosting capitalization and EBITDA in absolute terms. The amount of remuneration is tied to stock prices and is offered in the form of shares and options.
Incentives for in-store personnel depend on the store’s turnover and the quality of business processes. Salaries for in-store employees are consistent with the regional labor market and varies depending on the region of presence. The average salary in 2018 was RUB 33,987.
The Company is developing the ‘Magnit-Idea’ project in which employees develop their own creative potential and their best ideas are introduced into the Company’s operations.
In 2018, “Magnit” employees proposed 1,133 ideas, with 39 being deemed viable. Two ideas were introduced, while another three ideas are in the process of being implemented.
“Magnit” regularly holds corporate events and motivational programs that aim to:
- develop corporate culture and team spirit;
- recognize personal and professional achievements;
- promote sports and inform employees about a healthy lifestyle.
More than 10,000 head office employees have all necessary sports equipment and facilities available and have an opportunity to participate at municipal sporting events.
In October 2018 the company launched the ‘Magnit Health’ project aimed at all head office employees. Now there is a pharmacy at the “Magnit” head office, injection treatments are available at the medical rooms upon a doctor’s prescription, and the Company offers mass flu vaccinations. Specialists from the Mobile Health Center of the Medical Preventive Care Center conducted a free thorough examination of “Magnit” employees.
The Company annually celebrates the professional achievements of its workers and presents departmental and in-house professional awards to its best employees.