Motivational Programs and Benefits
The principal goal of motivational programs and benefits is to motivate and retain individual employees in support of the fulfillment of the company’s strategic objectives while efficiently managing personnel expenses and ensuring their optimal distribution among individuals.
The compensation system and wage policy are designed to facilitate internal fairness and external competitiveness. At CEZ Group, employees are paid wages that are in line with the long-term financial performance results of CEZ Group and its standing in the labor market. Base wages are differentiated according to the complexity, responsibility, and difficulty levels of the work performed. Variable wage components ensure that the employee’s compensation is linked to company-wide and individual targets, as well as to the employee’s acting in accordance with company principles. Thus, they motivate the employee to take personal responsibility for results, as well as for meeting strategic targets. Planning for and managing deviations in personnel expenses – especially factors such as the work force head count, year-on-year wage adjustments, and wage policies – leads to cost effectiveness.
Award for Best Employees of Divisions, Organizational Units, and Subsidiaries
Each year, the head of each division, subsidiary, and power plant selects one of his or her subordinates as a candidate for the ČÉZAR award. This award is given in recognition of the most successful employee across all the countries where CEZ Group operates.
ČÉZAR is awarded to rank-and-file employees, not teams, since CEZ Group seeks to support the principle of taking individual responsibility for fulfillment demanding targets. The winners of the award are employees who made substantial contributions to their unit’s results during the past year and achieved excellent results in terms of meeting their personal targets. In 2011 there were 45 ČÉZAR winners: 30 from companies in the Czech Republic and 15 from abroad. In 2010, 42 employees won the award: 34 from the Czech Republic and eight from abroad.
The awards are announced each year at work meetings. The main prize, however, is an allexpenses- paid trip to a gala, where the Chief Executive Officer officially presents the award to the winners. The purpose of this exclusive meeting is to give key CEZ Group employees an opportunity to exchange work experience and communicate with each other on an informal basis.
CEO Awards for Extraordinary Contributions to CEZ Group’s Growth
Each year, the Chief Executive Officer recognizes one individual and two work or project teams for their extraordinary contributions to CEZ Group’s growth. Nominations for these “CEO Awards” are gathered from all divisions, organizational units, subsidiaries, and international holdings. According to tradition, the awards are announced and presented during the ČEZ Management Meeting.
In 2010, the award for individuals went to Balázs Hajdu in recognition of his accomplishments in developing the ČEZ sales representation in Hungary and jump-starting sales of electricity to end customers, and to Viktor Černý for a proposal for managing international projects using gates and designing a process-based model for projects in the investment division. In the category of teams, the award went to the 18-member team of the Gas Retail team consisting of employees of ČEZ, ČEZ Prodej, and ČEZ Zákaznické služby, for the quick preparation and successful launch of sales of natural gas to households, with a focus on CEZ Group employees.
In 2011, in the individuals category, the award went to Petr Roháček, who played a key role in transforming the accounting function, primarily in setting up the newly formed transaction accounting department. He helped to define unified accounting processes, as well as playing a role in recruiting and training new employees in Ostrava. In the teams category, the award winner was the six-member Strategic Recruiting team at the human resources division which worked to recruit graduates trained in technical fields and build the employer’s brand. The team achieved excellent results in 2012: it defended for ČEZ the title The Most Desired Company in the Employer of the Year competition. It won the company another most-preferred-employer title in a Trendence Institute survey of technical and economic school students. The team’s work was also recognized by the professional public, which awarded it the “Personnel Project of the Year” award within the Employer of the Year competition.
Benefits at CEZ Group
The provision of benefits is common practice at most companies. Compared to other companies in its class, CEZ Group offers its employees an above-average number of benefits. The collective agreements at CEZ Group include a social component where the benefits are described.
Benefits are included in every employee’s compensation and can be both monetary and in-kind. Each year, they add up to many thousands of CZK in financial value. CEZ Group companies operate with a shortened, 37.5-hour work week, one additional week of paid vacation is provided beyond the statutory minimum, and employees are entitled to paid personal time beyond that required by law. CEZ Group companies provide employees a wide portfolio of benefits, such as personal accounts intended in particular for rest and relaxation, Supplemental Pension Insurance contributions, life insurance, employee meal plans, contributions to help cover expenses during the first three days of sick leave, health care, special bonuses for employee jubilees and upon retirement, the Mobility program designated for key employees whose work responsibilities require them to travel frequently either within the company or CEZ Group as a whole, and one-off social aid in extraordinary cases. Above and beyond the benefits set forth in the collective agreements, the employer negotiates on behalf of its employees discounts and other special terms on the purchase of goods and services from selected companies.
Most of all, the employer strives to offer its employees benefits that are advantageous for them, and by offering a wide variety of benefits to encourage as many employees as possible to take advantage of them. Although the employer incurs considerable expense to provide the benefits, employees often see them as an entitlement or natural part of the employer-employee relationship, not as an added bonus or expression of the employer’s appreciation.