HUMAN
RESOURCES
DEVELOPMENT

Proper development of human resources is of key importance for successful achievement of the Company’s strategic goals. Gazprom Neft employees receive a competitive pay and benefits package as well as opportunities for professional development and career advancement. The Company is working steadily to improve the effectiveness of its staff development programmes and the social support offered to employees.

Staff appraisal

At year-end 2013, Gazprom Neft employed approximately 57,400 people across its corporate divisions and facilities. Our employees work across 24 regions of Russia, as well as in the CIS and non-CIS countries. 60% of the staff are blue-collar workers, and 40% are managers, experts and office staff.

The majority of employees are concentrated in the Yamal-Nenets Autonomous District (18%) where the main production facilities and oilfield services are located, as well as in Saint Petersburg and the Leningrad Region (15.6%), and in the Omsk Region (13.5%).

The average headcount increased by 2% in 2013 year-on-year due to the staffing of both new and developing enterprises of the petroleum product supply and aviation fuel supply chains.

In 2013, the corporate HR Strategy was updated to set strategic HR management objectives and key initiatives for their achievement.

HR strategic objectives for the period up to 2020:

  • Systematic selection and reorganisation of personnel;
  • Talent management, competency development, and training;
  • Motivation system development and creation of engagement culture;
  • Improvement of performance and organisational efficiency;
  • Enhancement of HR function.
Average headcount, employees

Source: Company data

Breakdown of average monthly salary, RUB

Source: Company data

Compensation and social support

The Company has a comprehensive incentive system which includes both material and non-material employee incentives. The incentive system is closely linked to the Company’s strategic goals and is constantly improved in accordance with business responsibilities. Gazprom Neft is continuing its process to introduce an annual employee performance appraisal system using broad-based criteria, including: professional skills, managerial skills, and ethics. The appraisal results are taken into account when planning careers and selecting employees for the candidate pool. They also influence salary increases and annual bonuses.

The Company continues to stay in line with average wages in the sector’s labour market. Wages and salaries are revised annually, subject to individual performance. The performance of each employee is assessed based on the Company’s goal management system.

The average annual increase in monthly salaries from 2009 to 2013 was approximately 11%.

The average salary of the Company’s employees in 2013 was RUB 67,054 which is 12% more than in 2012 and 2.5 times higher than the average salary in Russia for According to Rosstat (Federal State Statistics Service) data.nine months of 2013

Personnel expenses in 2013 amounted to RUB 48.2 billion, which is a 14.1% increase compared to the previous year.

Gazprom Neft also places special emphasis on improving its non-financial incentive system and this is a key priority for HR management. It includes professional competitions, sports and recreational activities, as well as corporate communications sessions. The Company annually awards two honorary titles (corporate merit badges) for its workers: ‘Honoured Worker of Gazprom Neft’ and ‘Veteran of Gazprom Neft.’

The Company’s enterprises have adopted collective agreements and follow corporate regulations and rules that set out various social benefits for employees above and beyond those required by law.

Personnel costs, RUB thousand

2013

2012

2010

TOTAL

48,225,670

42,259,549

45,277,846

Payroll fund

45,039,918

39,363,693

42,403,326

Social benefits paid

3,185,752

2,895,856

2,874,520

Source: Company data

The social packages at most enterprises include voluntary health insurance, accident insurance, subsidised meals, financial aid, holiday vouchers, and other benefits. Company employees receive medical advice and, if necessary, treatment in the best Russian hospitals under a corporate voluntary health insurance contract. The Company also arranges medical examinations for its employees.

In a number of regions, a corporate mortgage programme helps employees buy an apartment or a house. Under the programme, the enterprise partially compensates the loan interest payable by an employee to the bank or advances money to make the initial deposit.

The Company develops and implements social programmes in active cooperation with trade unions. Over two thirds of the Company’s employees are represented by trade union organisations, which are involved in resolving professional and social issues, as well as matters relating to labour rights and employees’ interests.

Average expenditure on social benefits in 2013 amounted to RUB 35,465 per employee, up 4% year-on-year.

Benefits package, RUB thousand

2013

2012

2010

Free and subsidised meals

522,774

493,052

509,864

Voluntary health insurance

650,709

529,623

438,862

Paid-for holiday packages

115,705

109,761

101,722

Payments to retiring employees

257,019

321,874

623,067

Housing programme

121,329

124,132

118,413

Sports and cultural events

317,599

290,222

314,003

Source: Company data

Training and development

In 2013, the main employee training and development priorities were:

  • Creating an efficient candidate pool planning system;
  • Developing professional competencies;
  • Developing leadership and management competencies;
  • Improving management of graduates and young specialists;
  • Developing and implementing a system for key employee appraisal and accelerated development.

In 2013, the Company conducted an audit of the candidate pool management system in order to determine whether it complies with the Company’s strategic goals and to analyse its performance. Based on the results, the candidate pool management methodology was adjusted and the decision was taken to implement new initiatives, including the establishment of a Talent Committee.

In the reporting year, the Company took further measures to build professional competency models. Models for five subdivisions of the Moscow refinery were developed, eight EPS functional areas were classified, and “career ladders” were developed for the Exploration function. Special emphasis in the reporting year was placed on the development of e-learning that was made available to more than 20,000 employees.

In 2013, a corporate Academy of Talent Pool and Prospective Manager Training was established. Academy modules are aimed at developing managerial competencies, enhancing the leadership potential of existing managers, teambuilding, and creating a common management culture based on corporate values.

The Stockholm School of Economics developed and implemented a TOP Drive module programme to support one of the Company’s 2013 key organisational projects – the reorganisation of the regional sales model. The programme is intended for managers of the regional sales directorate and chief executives of petroleum product suppliers and encompasses different management aspects, such as strategic planning and HR management

In 2013, Project Management School, an educational programme for EPS employees aimed at building basic knowledge in project management, was launched. Lecturers from European business schools were invited as the course moderators.

In the reporting year, Gazprom Neft continued its cooperation with higher educational institutions and specialised secondary schools for the purposes of personnel training and recruitment, employee professional development, and R&D. More than 20 universities became partners of the Company, including the National Mineral Resources University (University of Mines), Gubkin Russian State University of Oil and Gas, Lomonosov Moscow State University, and the Moscow Institute of Physics and Technology.

Students of the universities and specialized secondary schools partnering with the Company have the opportunity to undertake an internship at Gazprom Neft enterprises. Over 500 students undertake such internships annually. Based on his/her results, the student may be invited to work for the Company. In 2013, more than 160 university graduates were employed by Company subsidiaries.