Labor Productivity indicator is included in the Group’s key performance indicator (KPI) system.
Labor Productivity Indicator (LPI) Passport was approved by the Company’s Board of Directors (Minutes No. 131 dated November 25, 2016) and is based on the calculation procedure established by Order No. 576 of the Federal State Statistics Service dated September 23, 2014 – Concerning Approval of Statistical Tools for Arrangement by the Federal Agency for State Property Management of Federal Statistical Observation over Labor Productivity at State-Owned Non-Financial Corporation Companies. The order requires the revenue used for indicator achievement analysis to be calculated using the income accepted for accounting as per the Russian Accounting Standards (RAS). To calculate the labor productivity trend index, the revenue is represented in the previous year prices.
As per OrderInstruction No. 1250-р dated July 9, 2014, a labor productivity growth rate of at least 108% was established for oil production companies in 2017.
The Target LPI for 2018 as part of KPI was equal to 48.6. Actual labor productivity calculated as Zarubezhneft’s revenue per RAS calculated in conditions comparable to 2017 and correlated with man-hours worked by the Company’s employees was equal to 63.0 thous. RUB/man-hours.
The actual labor efficiency rate amounted to 111% and evidences of the efficient use of the labor resources.
Zarubezhneft JSC carries out labor productivity monitoring on a monthly basis; indicator improvement measures are promptly developed; a payroll management system was established and is successfully being used; there is, continuous business-process re-engineering; appropriate analyses areanalysis carried out; optimization and improvement areas are identified.
|Indicator||Line No.||2017||2018 Actual|
|Revenue, MM RUB|
|In current prices||1||X|| |
|In prices of 2017||2|| || |
|Number of man-hours worked by the payroll employees and external part-timers, thousand man-hours||3||536||516|
|Labor efficiency, thousand RUB / man-hours|
|In current prices (page 1 / page 3)||4||X||86.0|
|In prices of 2017 (page 2 / page 3)||5||56.8||63.0|
|Labor efficiency dynamics||111%|