Remuneration and social benefits

The company has in place an integrated incentive system that is designed to recruit, retain and develop talented specialists, and support career advancement and professional development of employees. The objectives and principles of financial and non-financial incentives for employees are set out in the Unified Corporate Remuneration Policy.

The Gazprom Neft incentive system is underpinned by the following principles:

  • market competitiveness;
  • internal fairness;
  • performance-based remuneration;
  • objectivity, transparency, extensive use of a range of communication channels to provide convenient access to information for employees;
  • a consistent approach to assessment and development;
  • training and development responsibilities shared between employees, managers and the company;
  • basic additional training available to every employee.

Remuneration and social support programmes in the company are based on a cumulative compensation model, which includes a basic salary, performance-based remuneration, opportunities for professional development, recognition of achievements, and a workplace environment (including social guarantees and benefits, working conditions and the corporate culture).

Cumulative employee compensation model

Specific remuneration components and their respective importance within the overall model are tailored to different employee groups, depending on their motivational profile. This model enables the company to align its goals with the needs of individual employees, and shapes the infrastructure required for the flexible implementation of HR and business strategies.

In 2019, Gazprom Neft introduced a bonus system based on integrated performance assessment of business units and employees at three pilot assets. This new bonus system will begin to be rolled out across the company in 2020.

The company seeks to make sure that its remuneration system is competitive. To do so, it analyses the labour market in its regions of operation, and adjusts the salary level accordingly. In 2019, the average monthly salary in Gazprom Neft totalled ₽134,000. The basic salary level is the same for men and women.

The company’s social benefits system comprises mandatory (basic) and optional (additional) benefits. Social benefits provided by the company include free or subsidised meals, voluntary health insurance (VHI), subsidised travel, a housing programme, and sporting and cultural events. Basic social benefits are provided to all employees, regardless of the type of employment.

Personnel costs, ₽ million
Personnel costs, ₽ million
Strengthening the cumulative compensation model with a Single Pay Scale

A Single Pay Scale was introduced in the Downstream Division in 2019 as the key basic salary component of the cumulative compensation model. The Single Pay Scale is a wage system linked to grades and levels of sophistication of roles listed in the Unified Catalogue of Manual and Trade Jobs, which is used to match the wages paid to manual workers in the Division to the level of their qualifications. Basic salaries in most of Gazprom Neft subsidiaries were aligned with the Single Pay Scale in 2019, with further steps planned in the future.

The company is developing non-financial incentive programmes, and updating their content and formats to align them with its strategic goals.

Professional skills competitions held in all Gazprom Neft Divisions for both individuals and teams are an important non-financial incentive.

The competition programme is continuously updated to cover a growing number of professions and those competencies that have the most relevance for the company’s development. The number of participants and the number of regions and countries represented in the competitions are also increasing.

Participants of the 11th 'Best in Profession' professional skills competition in the Upstream Division included employees of Gazprom Neft subsidiaries and joint ventures. The 2019 'Best in Profession' competition was marked by the introduction of state-of-the-art digital solutions and a complete transition from paper-based to electronic data storage media.

In 2019, the 'Best in Profession' competition was held in ten subsidiaries in the Downstream Division. Competitions in three categories—Chemical Laboratory Analysis, Power System Protection Equipment Maintenance and Repairs, and Industrial Automation—were held in accordance with the WorldSkills methodology, with the latter two professions included in the competition programme for the first time.

Key non-financial incentive programmes at Gazprom Neft also include the implementation of target programmes in its business units, which reward strong operating performance. These include competitions among teams of enterprises, performance-based bonuses for enterprises, teams and individual employees (including in contractor organisations), Summer and Winter Sports Games for employees, and leisure activities.