LUKOIL employs a multinational team of professionals. Over 100 thousand people (including more than 700 persons with doctor/PhD degree) bring their efforts and talents together to help the Company stake its leading market positions.
The Personnel Management System of the LUKOIL Group relies on the Functional HR Strategy, the Code of Business Conduct, Corporate Culture Rules and the Social Code of PJSC LUKOIL.
The Social Code defines the corporate citizenship principles used by the Company to manage labor relations (including fringe benefits and guarantees available to its employees) and those existing between the Company and the public, as well as a number of other personnel management regulations.
The Personnel Management Policy serves as a guideline that defines the personnel management strategy and principles in the LUKOIL Group.
The Personnel Management Policy mainly focuses on ensuring the maximum personnel investment efficiency through establishment of a system that would:
motivate each employee to accomplish the Company’s goals;
ensure unbiased assessment of the achieved results; adequately encourage and reward the employees for their achievements.
The Personnel Management Policy is based on five interconnected areas: performance efficiency enhancement across all levels;
recruitment of the “cream of the crop” and efficient management of their capabilities and potential;
training and development, personnel potential planning; establishment of an efficient compensation package system;
establishment of an efficient and robust company, its continuous development.
PJSC LUKOIL is the only Russian company to have signed a Cooperation Agreement with the International Labor Organization (hereinafter - the ILO). The main subjects of the Agreement are as follows: development of mechanisms for interstate and interregional partnership cooperation in the area of youth employment promotion, personnel exchange and training. Under the Agreement LUKOIL provides support to ILO in the development and promotion of technical cooperation under the “Partnership in Youth Employment in the Commonwealth of Independent States” project. The project is aimed at efficiency enhancement of the youth employment policy and programs in order to create higher quality workplaces for young people.
The target countries of the project, namely, Azerbaijan, Kazakhstan and the Russian Federation, support elaboration and promotion of the initiatives given the youth employment challenges. For instance, a road map for youth employment promotion is being developed in Russia jointly with the relevant ministries, social partners and other concerned parties. The road map also provides for testing of innovation programs at the level of the RF constituent entities, in the Republic of Kalmykia, the Khanty-Mansi Autonomous Okrug — Yugra and Perm Krai. A youth employment action plan was developed on a tripartite basis and approved by the relevant ministries in Kazakhstan. The plan takes into consideration the social and economic situation in the country, as well as the labor market environment. Azerbaijan supports the development of a new state employment strategy, as well as the implementation of programs in the labor market, specifically those aimed at youth employment promotion in urban and rural areas.
A joint Committee was set up to monitor the project implementation progress.
The key personnel development focus areas include introduction of state-of-the-art personnel assessment and training techniques; elaboration of corporate and target training programs; development of the e-learning system, cooperation with universities.
More than 50% of the total LUKOIL Group headcount annually join different advanced training and professional retraining programs, attend workshops and trainings.
More than fifty LUKOIL Group Entities joined the e-learning system (hereinafter referred to as ELS), with over 90 thousand authorized users. The ELS website features over 250 learning courses. The ELS capabilities ensure training, pre-appraisal preparation and appraisal of all health and fire safety executives and specialists of the Company.
For employees’ convenience they can join the ELS at any time, including via their own PCs.
During 2016 and 2017 the Executive MBA corporate program “Oil and Gas Business Administration.
Contemporary Manager” is being implemented by LUKOIL under the auspices of I.M. Gubkin Russian State University of Oil and Gas.
The integrated modular program was developed to establish a group of leaders to manage the Company’s business, including major international projects and assets, capable of solving comprehensive strategic tasks, making decisions, adapting themselves to different situations. The focus is on the global context, trends and peculiarities of the oil and gas industry of the modern world, against the backdrop of multi-faceted risks, capital intensity and a long-lasting pay-back period for the projects.
On-the-job training have been organized in the LUKOIL Group Entities since 2002. The Company has also gained vast experience with regard to on-the-job trainings in the leading global energy companies (ConocoPhillips, Fortum). On-the-job trainings in the leading global companies are aimed at learning the best practices and improving practical skills in different industries of the fuel and energy complex, and establishment of possible business contacts. Around one thousand employees completed on-the-job trainings in 2015.
Corporate Knowledge Management System
The Company has been using up-to-date portal technology to actively develop its corporate knowledge management system that makes it possible to share expertise both between the employees and entities of the Group. The corporate knowledge management system currently covers such company operations as upstream operations, refining and petrochemicals, power engineering, petroleum product supply, human resources and organizational development, economics and planning, taxation and accounting. For its achievements in the field the Company received the prestigious international МАКЕ Awards Russia.
Training at the Facilities of Educational Partners
The Action Plan to promote cooperation between PJSC LUKOIL and Gubkin Russian State University of Oil and Gas in research, engineering and education has been approved. The comprehensive cooperation program between the Company and higher education institutions dealing with oil and gas, chemistry and energy was elaborated and approved. The Company continues to cooperate with the Tuymen State University of Oil and Gas, Perm National Research Polytechnic University, Ukhta State Technical University, Ufa State University of Oil and Gas, Financial University under the Russian Government, and other higher education institutions. Moreover, it has been actively dealing with vocational institutions. Over the years of cooperation the Company substantially reinforced the training facilities and resources of the relevant higher education establishments, published new learning aids, awarded annual grants to gifted students and teachers, as well as vocational training foremen.
The base salary and the variable component form the basis for the material component.
The base salary amount depends on the fulfilled obligations, complexity of the tackled problems, the level of responsibility and shall be determined for each employee in view of his/her education and work experience.
The remuneration plan hinges on the principles of unity, transparency, fairness and competitiveness of wages, their periodical indexation in accordance with the consumer price index and occasional growth tied to a better performance. Continuous monitoring of the labor market enables the Company to promptly respond to any wage changes in the regions of its presence thus maintaining them at competitive levels. It has been constantly reviewing the inflation levels and changes in the buying capacity of the wages, and using the findings of such reviews to respond promptly with the respective management decisions.
The variable component of the bonus amount comprises short- and long-term bonus payments. The Company seeks to ensure stronger dependence of the variable component on the Company's financial performance. The bonus plan is in the first place designed to assure the accomplishment of company-wide goals, closely tied to the key performance indicators and pushes the employees to improve their performance through stronger commitment. The Company seeks to achieve the best possible set of performance indicators, searching for a balance between its performance efficiency in the short and long term, performance measurement of individual employees and the entire Company, as well as financial and operating performance indicators.
Short-term bonus payments are made provided that the employee has achieved the target performance indicators for the month, quarter, year, in view of each employee's efficiency.
The Company has approved a long-term incentive program designed to provide incentives to increase the revenue, improve capitalization and investment appeal of the Company, and to attract and retain qualified people.