RUSSIAN OIL INDUSTRY – INNOVATIVE APPROACH TO TALENT DEVELOPMENT FOR THE INDUSTRIAL SUSTAINABLE DEVELOPMENT

Russian oil workers celebrated their professional holiday in September. Oil and Gas Industry Workers day was established 55 years ago in the USSR as a sign of appreciation for the specialists successfully satisfied both the needs of home and active front lines in WW2 times and made a significant contribution in post-war reconstruction. People continue to be the main asset for oil companies in Russia and abroad.

“Russian oil and gas industry is renowned worldwide for its high professionalism and dedication”, - OPEC’s Secretary General Mohammed Barkindo noted in his letter to the Minister of Energy of the Russian Federation Alexander Novak in honor of the day of workers of the oil and gas industry. “Oil workers are unsung heroes whose tireless efforts enable OPEC and our outside partners to make informed decisions. We must never take their work for granted,” – he added.

According to International Labor Organization reports, the world of work is currently undergoing profound changes. Digitalization, changing demographics and a transition to a green economy are setting up the new trends – automation and robotics that reduce the need for labor, herewith the ever raising competence requirements for the current personnel. Given this, each professional oil worker – in a very real sense – worths his weight in gold by being able to deliver high performance in current changing conditions.

ILO highlighted three main goals to support oil workers and other working men around the globe: increasing investment in people’s skills, strengthening labor guarantees and expanding social dialogue.

In the words of Anatoly Moskalenko, Vice President for Human Resources Management and Social Policy of PJSC LUKOIL, corporate programs fully comply with ILO’s vision: “Today, the oil and gas sector is facing new challenges that can significantly change professional areas of activity and, therefore, specifics of HR management and social work. In 2019 the Company launched a personnel performance and efficiency management system, based on the principles of modern leadership philosophy.” The new approach places a greater emphasis on the individual as the key driver behind achievement of the Company’s strategic goals.

The President of PJSC LUKOIL, Vagit Alekperov, has decided to begin implementing leadership and engagement tools to facilitate a reliable and sustainable future for LUKOIL. Forward-looking changes are designed to ensure that the Company maintains its leading position in the industry.

This will require changes in the system used to make decisions, people management, training, motivation, and overall performance and efficiency assessments. Goal management, effective and inspiring interaction between managers and employees, constant feedback, and a modern system of productivity and performance management in a unified digital environment.

The first step has been to elaborate the project groups in the Exploration and Production business segment. This group of employees ensures that effective solutions are found to engineering and technical problems, while achieving operational and investment efficiency when implementing major and high-priority projects, both in Russia and abroad with Company’s and global experience and best practices are taken into account. This new approach will be further distributed to the corporate vertical system, backed by the constantly renewing regulatory framework.

LUKOIL employed over 105 thousand people, 41% female, which are more than 26% of managerial personnel. Company applies uniform principles for the talent development and respects personnel’s wish to achieve work-life balance. In LUKOIL Group entities parental leave is granted to both women and men.

Company endeavors the implementation of harmonized standards to working with our employees in all countries and regions where we operate, taking into account local specifics and features. LUKOIL’s basic approach is to employ the best professionals, while in foreign countries company strives to employ as many local professionals as possible, and provide them with employee training where necessary.

Company strives to maintain an attractive employee remuneration system to facilitate social stability and to enhance the quality of life of our employees and their families. In 2019, the average salary in LUKOIL Group’s Russian entities in significant regions of operation was at least 1.5 times higher than the average salary in the same regions. Voluntary health insurance programs cover over 90% of employees at Russian entities, over 1.4 thousand employees participate in the housing program.

Constant and focused talent development programs aimed at full professional fulfillment, while maintaining the social guarantees, helps LUKOIL to keep employee turnover at insignificant 7.5%.

New approach towards corporate policies, compliant with the actual social needs and current technological development level, ongoing partnership with ILO allow LUKOIL to build up the solutions that would become referential either for Russian oil market and global business society.

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