Remuneration and social support for staff
The staff remuneration system is linked to the Company’s overall strategy and aims to ensure competitive remuneration, retain and develop talented staff, and support the career and professional growth of employees.
Gazprom Neft employs an Employee Remuneration Policy that identifies the goals, main objectives, and principles of the remuneration system as well as benefits and non-financial incentives for employees.
Gazprom Neft conducts regular monitoring of the labour market in the regions where it operations, including special overviews of the HR market for certain highly skilled professions in key areas of the Company’s business. Gazprom Neft strives to make sure that all the components of its remuneration system remain competitive. The Company regularly revises salaries in accordance with labour market dynamics in the oil and gas sector.
In 2017, updates were made to the standard that is used to determine basic remuneration for salaried employees. In an effort to enhance the effectiveness of the variable compensation system, a number of large-scale projects were launched:
- the annual bonus model within the management system was partially updated based on targets
- initiatives were launched to unify quarterly and monthly bonuses for Gazprom Neft employees
- the Upstream Division introduced an incentive program that aims to create a culture of efficiency and lean production
- the Downstream Division established a unified structure of base remuneration and developed a uniform wage scale that takes into account the complexity of work and the individual qualification levels of workers. The unified bonus system for production staff linked variable payments with the achievement of the targets of the units. The new incentive model reduced the number of compensation formulas and made them more transparent for employees
All the Company’s subsidiaries employ a unified system of social benefits. Gazprom Neft maintains a balanced and competitive social package regardless of external economic conditions.
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The Company maintains a balanced and competitive social package regardless of external economic conditions.
The non-financial incentive programme aims to increase the loyalty of staff and recognize the merits of the best employees.
The key programmes of the Gazprom Neft non-financial incentive programme are:
- Individual and team-based professional skills competitions: ‘Best in the Profession’ for production staff, ‘League of Professionals’, and ‘Battle of Merchants’ for managers, specialists, and employees, etc.
- Targeted programmes that celebrate the strong production results of Gazprom Neft units: ‘Achievement of the Year’ competitions among oil refinery teams in such areas as modernization, improved energy efficiency, and industrial safety the ‘Acknowledgement of the Best’ award, which is granted for achievements by enterprises, employees, and teams, including contractors, the Upstream Division, the Offshore Projects Development Division, and others
- mass sporting events: Summer and Winter Games
- leisure activities: intra-corporate humour clubs, etc.