Social Responsibility
Personnel, Occupational Safety and Health
Gazprom Neft invests in personnel, supporting the initiatives and innovations designed to enhance operation and management efficiency. The Company acts as a responsible employer maintaining equal relations with the employees, ensuring decent wages, career opportunities and comfortable working conditions.
Personnel Management Policy and Standards
In 2009 Gazprom Neft developed and approved a uniform personnel management strategy, identified key priorities and areas in dealing with employees.
To design uniform principles and wage system, implementation of the grading system continues in subsidiaries and associates of the Company (SAC). In all SACs top management positions (Director General and their Deputies) have been assessed and assigned grades.
Average Headcount in 2005-2009
In 2009 the grading system was fully introduced in 9 SACs, including Gazpromneft-Khantos, LLC, JSC Omsk Oil Refinery (Gazpromneft-ONPZ), CJSC Gazpromneft-Kuzbass, JSC Gazpromneft – Omsk, Gazpromneft – Lubricants LLC, Gazpromneft – Nefteservice LLC, Gazpromneft – NTC LLC, LLC Gazpromneft – Aero, Complex Galernaya 5 LLC.
In 2009 the efficiency control system was developed further to establish correlation between the employees wage and assessment results of their performance based on KPIs.
In order to design methodological approaches to a uniform wage system and social benefit policy, in 2009 the Company and SACs continued developing the Company standards for personnel incentives and social welfare, including “Procedure for Position Assessment and Its Grading”, “Procedure for Setting Compensation Packages and Individual Grades for Company and SACs’ Employees”, “Procedure for Paying Bonuses to Employees from the Executive’s Reserves”, «Procedure for Voluntary Medical Insurance”, “Procedure for Calculating, Depositing and Paying Bonuses to SACs’ Employees for Their Contribution into Implementing Corporate Projects”, “Procedure for Implementing the Corporate Mortgage Program”, “Specific Features of Civil Law Contracts with Individuals, Control and Payment Procedures”; improved the version of the Standard “Procedure for Paying Quarterly Bonuses to Employees of Subsidiaries and Associates of the Company”.
In 2009 the Company started to develop a uniform concept for granting social benefits in the Gazprom Neft group adjusted to the market practice. The Company has analyzed existing social benefits in SACs under effective collective contracts and other local statutory regulations, as well as analyzed actual costs under the mentioned articles and searched for ways to optimize the social benefit package maintaining its competitiveness in terms of its components. A template has been designed for the uniform collective contract that will be recommended for use in all SACs.
As of today Gazprom Neft enterprises employ over 50 thousand people working in more than 20 regions of the Russian Federation as well as in Kyrgyzia, Kazakhstan, Tajikistan, and Belorussia. The largest part of Gazprom Neft personnel – about half of the Company total headcount (46%) – is concentrated in the Yamal-Nenets Autonomous District. The share of Omsk and the Omsk Region is 17% of Company employees (47% of them employed at the Omsk Refinery). Moscow and the Moscow Region account for about 11% of the employees, roughly 21% of them work at the Head Office.
Distribution of Gazprom Neft Personnel by Region in 2008
Personnel Costs and Wage Growth
The Company ensures competitive wages and decent social benefits to its employees in accord with the market trends. Personnel costs in 2009 showed a 13,5% increase compared to the year before and totaled 28.2 bn rub.
Personnel Costs in 2005-2009
The 2009 average wage amounted to 44 227 rubles that is 10.4% higher than the year before. Overall average wage increase amounts to 78% for the period 2005-2009.
A perfect employee incentive system, providing for effective work by the personnel, enables the Company to achieve its business objectives. Therefore, Gazprom Neft continues to develop and introduce a comprehensive incentive system based on competitive wages, performance bonuses and intangible elements.
Social Package
Company employees, in addition to statutory benefits, are provided with a social package, which includes voluntary medical insurance, accident insurance, free meals, material aid for different occasions, payment for employee trips as well as leave allowance and additional allowances, e.g. childcare allowance, death allowance, etc.
Average Employee Wages at the Company in 2005-2009
In 2009 social package payments reduced by 3% compared to the previous year due to optimization of the social benefits in a number of SACs (on average, 31 thou. rub. per employee spent over the year in comparison to 32 thou. rub. in 2008). During this period socially significant benefits were preserved for the personnel (voluntary medical insurance, accident insurance, free meal
Cooperation with Educational Institutions and Recruitment of Young Specialists
In 2009 Gazprom Neft continued its cooperation with three higher educational institutions – the Company’s strategic partners, i.e. G.V. Plekhanov Saint-Petersburg State Mining Institute, Gubkin Russian State University of Oil and Gas, M.V. Lomonosov Moscow State University. The Company also concluded a cooperation agreement with Moscow Geological Exploration College.
In 2009 the Company continued its initiatives as part of cooperation with the higher educational institutions. Jointly with G.V. Plekhanov Saint-Petersburg State Mining Institute the Company organized Olympiads for school graduates in the cities where the Company operates (Noyabrsk, Omsk) to select winners and enroll them to in the higher educational institution. The Company arranged internship for students of the partner higher educational institutions at the Company enterprises. The total number of interns was about 530 persons. Gazpromneft NTC, LLC and Gubkin Russian State University of Oil and Gas made an agreement on starting a basic sub department in the university.
The Company seeks to become one of the industry leaders in efficiency and is interested in the recruitment of talented specialists. The key areas of personnel development in the Company include working with young specialists, building a personnel reserve, creating a comprehensive continuing training system which would embrace all categories of personnel and all levels of management.
The main purpose of cooperation – is to recruit talented graduates to work for the Company. In 2009 the Company units recruited 305 young specialists.
Employee Professional Development
Gazprom Neft is traditionally committed to the professional development of its personnel. In 2009 1290 employees received training. The training rate remains high (over 1.1) in the last three years. In 2009 training and professional development costs totaled 105.550 mln rub.
Gazprom Neft’s professional training system is designed to comply with the requirements of the Company’s business and its corporate culture. Gazprom Neft’s training and development programs include three main sections: professional training programs designed to provide knowledge and skills for particular specialties and functions, corporate and management competence development programs, and business awareness development programs. Personnel training and development programs comprise additional corporate mandatory training and development of the personnel reserve and young specialists.
In 2009 642 persons attended corporate management competence development trainings for Company personnel, which is five times more than in the previous period.
In 2009 the Company introduced modular programs for the comprehensive development of management potential of Gazprom Neft personnel, managers of various levels, “Business Leaders”, “Success Vector”, “Growth Managers”, and “Growth Managers +”. The programs were developed based on an analysis of the Company business needs. The programs are designed to train 250-280 persons annually in total.
In 2009 the Company launched a large project for proficiency development of its personnel. It started designing a professional competence system for specific activities followed by assessment and focus on aspects of the personnel target development.
For personnel the key career planning tool is Individual Development Plans, which are prepared taking into account the requirements for a specific position, assessment results of employee development capabilities, and also opinions of line managers and mentors.
Social Responsibility
The Company approved a “Charity Policy” setting out the principles and objectives of Gazprom Neft’s charitable activities, major priorities and rules of specific projects.
- JSC Gazprom Neft’s key charitable priorities are determined by the following programs:
- Support of children and youth
- Regional cooperation
- Support of sports.
Total charitable expenses, including those under socio-economic agreements with the regions of the Company’s operation, were over 800 mln rub. in the reporting period.
The activities of the Charity Commission set up by JSC Gazprom Neft in 2008 allowed the Company to systematize its charitable activities and to work on priority areas. It helped reduce total expenses (financing of sports organizations, indirect support through charitable organizations, foundations and associations was scaled down), while at the same time increased the funding of social aid programs for orphanages, schools and boarding schools, cultural institutions, administrations of the districts, cities and regions where the Company operates.
Over several years the Company has been actively involved in financing professional and amateur sports and is one of the largest sponsors of professional sports among Russian oil companies: Gazprom Neft supports Zenit Football Club (Saint-Petersburg), Avangard Hockey Club (Omsk) and SKA Hockey Club (Saint-Petersburg).
In the future the Company will continue its commitment to strategic priorities, first and foremost, to supporting the health and development of children and youth and, when determining the charitable targets and the scope of charitable programmes, will do its utmost to take into account the opinions and expectations of all interested parties.
These priorities apply to both the socio-economic agreements with the regions of operation and to specific charitable programs and projects.
Thus, in 2008 in the settlement of Purpe, construction of a sports-and-fitness center was undertaken (acceptance of the facilities is scheduled for 2010), in 2009 renovation of the stadium was completed in Muravlenko town (Yamal-Nenets Autonomous District).
In Noyabrsk town JSC Gazpromneft-Noyabrskneftegaz continues to support such children’s sports events like the Mini-Football Town Championship for Noyabrsk school children, Motorcross Competition for the Yamal-Nenets Autonomous District Cup, and Mini-Football Tournament.
In 2009, supported by JSC Gazpromneft – Vostok school children from Kargasoksky and Parabelsky Districts of the Tomsk Region, and from the Tarsky District of the Omsk Region spent their holidays at children’s holiday centers.
OJSC Gazpromneft-Omsk Refinery is implementing a special-purpose program: “To Provide Assistance to Educational Institutions in the Bolsherechie Municipal District”.
It has become a tradition to hold the Interregional Gazprom Neft Cup Children’s Ice Hockey Tournament. In 2007 the first tournament took place in Omsk supported by the Omsk Region government boasting over 100 participants from Tyumen, Omsk, Tomsk, Noyabrsk, Salekhard and Khanty-Mansiisk. Arranging the tournament, its sponsors pursued the objective to attract as many young people as possible to play sports, to enhance popularity of hockey, and to prepare teams for All-Russia competitions.
The tournament fully met expectations of its sponsors, participants and spectators. The idea was approved to hold this tournament annually in the cities where the Company operates. In 2008-2009 the hockey tournaments took place in Khanty-Mansiisk attracting over 400 participants.
In 2010 it is planned to hold the 4th Interregional Gazprom Neft Cup Children’s Ice Hockey Tournament in Omsk.
Thanks to the Company finance, in Noyabrsk construction of the sports-and-fitness center will commence and provide a pool and an all-purpose stadium with 400 seat terraces, calisthenics hall and gyms.
The Company shall take part in financing the construction of the Youth Center in Tarko-Sale town of the Purovsky District and a multi-functional gym in Muravlenko town.
It has become a tradition to allocate funds under agreements to create conditions for sustainable development of customary activities and households of indigenous minorities in the North. With this purpose in the northern settlements residential housing and fish processing facilities have been constructed as well as fishing boats, snowmobiles, and nets are purchased.
The Company is involved in arranging the 2010 World Chess Olympiad that will take place in Khanty-Mansiisk.
Additionally, as part of the agreements with the regions, funds will be allocated for capital repairs of social facilities, purchase of medical equipment and improvement of towns and settlements.