Vitalii Sklyarov, top manager of PrJSC “Azot” (Cherkasy): leaders should employ the best

Vitalii Sklyarov, Chairman of the Board of Cherkasy-based PrJSC “Azot”, on how to motivate staff effectively and how to build teams.

 

– PrJSC “Azot” (Cherkasy) is Ukraine’s top chemical enterprise. At a time when the giants like PJSC “OPP” suspend their operations, you operate at almost 100% capacity. How did you manage to organize the operating processes and build such a team? Do you experience a shortage of young and qualified professionals? It is not a secret that at present more and more prospective students go for humanities. How does this affect your business?

– I will not brag or tell you legends about how we managed to build such a talented team. This is painstaking work that takes many years. You cannot build a team according to a recipe. I will answer the second part of your question right away because this is where it hurts. You are right in saying that unfortunately, at present, engineering is not popular among young people. That’s the way it is. Universities experience a huge shortage of engineering students, even when they are offered a scholarship. Aside from that, engineering graduates rarely work in the field of their specialization. Like many other Ukraine’s manufacturing enterprises, Cherkasy-based PrJSC “Azot” is in dire need of young and qualified professionals. I will not keep it from you.

 

– What is the reason for this situation? Why did engineering become non-prestigious?

– Indeed, at present, engineering professions are perceived as something outdated. To some extent, I can understand it. The problem lies in the education system, though, specifically, in schooling. Can you choose a family doctor today? Yes, you can. Can a child and a father choose a teacher? No, if we are talking about a regular school. Look at those who teach computer literacy to children in schools. You will rarely see a professional and motivated IT instructors. Look at school textbooks. Are these the best textbooks? No, they are not. Do you need more examples to prove that the education system falls far short of what the market demands?

 

– Do you think that one should start with a secondary school?

– Indeed! It should be followed by reforms at a higher level, i.e. in the system of technical education and universities. In general, I believe that some universities should be privatized. Sell them to Cambridge or Oxford. Let them establish their campuses here.

 

– However, businesses have an equally important role to play in addressing this problem and to demonstrate high standards so that to encourage young people to get educated and to land a job in such industrial enterprises, don’t you think?

– I agree. Businesses need to provide the appropriate rate of compensation, the one that would correspond to the working conditions and the level of responsibility when working at the chemical plant. This is not enough, though. I’ll go one better and say that the salary at PrJSC "Azot" salary is one of the highest in the city. Unfortunately, this does not address the staffing issues by any means. Consequently, we are looking for other solutions. We want to press a "button" like motivation.

 

– Meaning?

– The backbone of our HR strategy is to motivate employees, pay competitive compensation and grow our own staff. Although we have long since come to terms with the need to educate blue-collar workers and technical staff for ourselves. We understand that if we as a company do not do this for ourselves, we will face a manpower shortage.

 

– Coming back to the issue of the prestige of the chemists’ profession, what does the company do to promote the specialties needed in production?

– We focus extensively on promoting engineering professions and creating opportunities for growing a new generation of professionals; this is the basis of our personnel strategy. We hold open house days and organize tours of the company for the students of the schools that we patronize. Ten years ago, we took 10 secondary schools under patronage. We introduce the students of the industry-specific educational institutions of the city to the enterprise and show how it works. Chief specialists of the enterprise regularly attend the faculty meetings, meet prospective students, undergraduate and graduate students of industry-specific educational institutions, where they discuss the quality of education, future employment of graduates and job offers at the enterprise. PrJSC “Azot” (Cherkasy) is a regular and active participant in career fairs held jointly by employers and educational institutions. Our goal is to change perceptions: working at PrJSC “Azot” (Cherkasy) should become prestigious, and people should be proud of working at our company.

 

– Amidst the shortage of manpower, apparently, there is an issue of the rising average age of employees. Do you employ a lot of retirees at the company? Does this number increase over the years?

– The number of retirees working in the industry has always been high and at present, it remains high. At the moment, they account for one-third of the company’s total headcount. Retirees are part of the team; they are skilled workers with vast practical experience and they pass it on to the young employees. They are the best mentors and teachers for those who are starting their careers. It is impossible to raise a new generation of employees without them.

 

– In your opinion, what should the state do to change the situation for the better?

– First, education at engineering faculties should be subsidized at the expense of the state budget. This would motivate young people. Given that the state educational machine is too inert to keep up with the needs of the market, training should take place in close cooperation with the business. In other words, I would not pass the issue of training the professionals for the industry completely onto the state, it would be a mistake.

 

– Could you, please, specify?

– For example: with the support of PrJSC “Azot”, the city's engineering college secured the license from the Ministry of Education of Ukraine to train maintenance technicians to work at chemical plants. Previously, educational institutions did not train workers with such a niche specialization. Another example: we not only promote some professions but also pay 50% of the tuition for employees and their children, if they study such in-demand engineering professions. We have a training program for young professionals, i.e. future engineering and technical managers.

 

– How do you compile the list of the most in-demand engineering professions?

– Group DF businesses have direct contracts with universities in the regions of their presence, which provide for the training of the required professionals in accordance with the so-called "passport of the profession". This is a special document that clearly sets forth the skills and competencies that a graduate must have to work at our company. If graduates do not meet the requirements spelled out in the "passport of the profession", the academic institution simply does not receive the payment for this person. Consequently, they are motivated to train high-quality professionals. This approach disciplines academic institutions and motivates them to adjust curricula in line with the real requirements of the market in a timely manner. In turn, the businesses receive professionals who are already trained in line with the requirements of the companies.

 

– Amidst the shortage of manpower, apparently, there is an issue of the rising average age of employees. Do you employ a lot of retirees at the company? Does this number increase over the years?

– The number of retirees working in the industry has always been high and at present, it remains high. At the moment, they account for one-third of the company’s total headcount. Retirees are part of the team; they are skilled workers with vast practical experience and they pass it on to the young employees. They are the best mentors and teachers for those who are starting their careers. It is impossible to raise a new generation of employees without them.

 

– The experience of these people is probably measured in decades?

– Indeed, though it is an understatement to some extent. We have production workers who have more than half a century of experience. Moreover, our retirees are mostly the people whose work experience is associated with only one company, i.e. PrJSC “Azot” (Cherkasy). For them, this company is much more than just a place of work; it is their life. That is why, they care about the company, its success, staff, future and they perform their duties in good faith. They just can’t do it otherwise. We greatly appreciate our veterans, celebrate the work they do with awards, prizes, assistance and support even after they retire. We are just as passionate about our young people who are interested in the profession and seek new knowledge and skills. We encourage such people as much as possible and afford them all available opportunities for career growth. As a side note, I will repeat myself by saying that there are really few people of this kind.

 

– If the approach to training the manpower would not change, what threats does it pose to the industry and the country’s economy as a whole?

– If we do not take timely measures to increase the level of motivation of young people who still decided to dedicate their lives to the chemical industry, it will lead to systemic problems in the industry. At the moment, it is really very hard to find a worthy replacement for the highly qualified workers who retire. In terms of some positions, it is simply impossible! It is for this reason that we invest in education and training new employees. Skilled workers should drive this enterprise, and staffing issues should not limit business growth. Consequently, human resource development is one of the strategic priorities. We take action to develop our human resources. Only when we have enough employees, we would be able to choose the best of the best. We are the leaders and we have to employ the best of the best.