The Remuneration and Motivation Policy of Latvijas Dzelzceļš Group has been designed and developed in accordance with the goals and strategy of Latvijas Dzelzceļš Group. The main task of the Policy is to improve motivation of employees to achieve the goals of the Latvijas Dzelzceļš Group, as well as to promote the involvement of each employee in improving the quality of work they do.
The main principles of Policy implementation
Equal pay for equal work or work of equal value is determined both within each individual company and in the Group as a whole.
The remuneration system is uniform and has been developed in accordance with competence criteria for all positions at the companies of the Group – remuneration of employees is determined depending on the duties to be performed: education appropriate to the position, work experience in the given area, individual abilities, qualifications, skills, and performance.
Objective criteria are defined and applied, on the basis of which the amount of incentive is determined.
The remuneration system is being developed in such a way that its structure be reasonable, comprehensible and easy to administer.
Competitiveness and matching the financial capacity:
The remuneration system is designed in such a way that it provides opportunity to attract and retain employees with the necessary qualifications and skills, and corresponds to the wage trends in the labour market.
The remuneration system is cost-effective – maintaining competitiveness is in balance with the financial possibilities.
Flexibility and dynamism:
The remuneration system is designed and maintained in such a way that it is adaptable to changes in the labour market and the development trends of the companies of the Group.
Sense of purpose:
The main purpose of the development and maintenance of the remuneration system is to contribute to the achievement of the objectives of the Parent Company and the Subsidiaries.
The remuneration system is based on the employee’s performance in attaining the common goals of the companies of the Group.
Positions, work performance and competencies are assessed in order to ensure implementation of the Group’s Remuneration and Motivation Policy, observance of the Group’s long-term interests and achievement of the Group’s goals. The Group’s internal regulations regarding remuneration provide an explanation of all the elements of remuneration, the procedure for the payment and administration of salaries.