Personnel motivation and revenue structure
One of the priority objectives of the personnel policy of Zarubezhneft JSC is to create an efficient personnel remuneration system that allows to attract, retain and motivate employees with the necessary competencies and level of performance in order to successfully accomplish the business goals of Zarubezhneft JSC Group of Companies at minimum expense.
The Group of Companies is implementing programs for the material and non-material incentivization of its employees:
The size of the fixed and variable part of employee remuneration depends on the following factors:
- position level expressed by the corresponding labor-remuneration grade;
- level of professional competence and labor productivity implemented through the assignment of a certain professional status to an employee;
- work performance and achievement of set goals for the reporting period, reflected to the extent of the variable remuneration part for the period;
- level of remuneration of comparable positions in the labor market at competing companies and the target
- position of Zarubezhneft Group of Companies at the labor market for this position level.
In determining the target position of the Group of Companies in the labor market, the following approaches are applied:
- selection of the appropriate labor market for various categories of personnel (Moscow, regional, international);
- singling out key groups of employees and positions for which the Group of Companies is ready to provide an above-average salary level in the relevant labor market;
- for the rest of the employees , the Group of Companies is ready to provide an average-level salary in the relevant labor market.
In this regard, Zarubezhneft JSC consistently undertakes work in the following areas:
- improving the staff remuneration scheme;
- improving and developing the integrated staff planning system.
In 2018, the Unified Labor Remuneration Scheme (ULRS) that Zarubezhneft JSC Group of Companies has been implementing since 2013 continued to operate effectively.
The ULRS defines a unified procedure for setting employee salaries based on a single grade line, reflects the Company’s business interests and priorities, ensures alignment of the size of the annual staff remuneration with the achievement of key performance indicators (KPIs), and constitutes one of the tools for employee performance management for the Company.
|Financial Material incentives includes|
|Non-material incentives includes|
To attract and retain key managers, Zarubezhneft JSC has built a comprehensive motivation system that includes the following elements:
- fixed remuneration (official salary, allowances and surcharges as per the legislation);
- year-end bonuses based on KPI achievement results;
- bonuses for achieving strategic goals (Corporate Challenge Business Initiative).
The Group of Companies conducts a regular analysis of the inflation level and the consumer price index, based on which decisions are adopted to revise (index) the staff salary level.
Sole executive authority (general director) remuneration
All payments for the sole executive authority are made as per the Labor Contract and based on the following policies:
- Zarubezhneft JSC Employee Remuneration and Benefit Policy;
- Zarubezhneft JSC General Director Annual Compensation Policy;
- Zarubezhneft JSC Employee and Retiree Social Security Policy.