LUKOIL’s Human Capital Management Policy, approved by the Board of Directors in 2020, is based on our robust corporate culture and a solid system of corporate values. Driven by many factors, the Company’s success is primarily due to our staff at all levels, joined together as a close-knit team of professionals.
In our employment relations, we are guided by the laws of the countries where we operate, the conventions of the International Labor Organization , the principles of the UN Global Compact and the Universal Declaration of Human Rights, as well as the experience of international cooperation under the Industriall Global Union.
The Human Capital Management Policy is the fundamental document mandatory for all LUKOIL Group entities. It defines the HR strategy and guidelines to ensure the Company’s consistent leading position as an “employer of choice” on the international labor market.
The Policy is based on transparent principles aimed at creation of a stimulating work environment; involvement of all personnel in achieving the Company’s strategic goals; fair assessment of each employee’s contribution to overall success; fair compensation for performance and internal continuity by attracting, nurturing, and retaining talent.
The Policy sets out ground rules, mandates respect for human rights, equal rights and opportunities for all employees, zero tolerance for violation of human dignity or discrimination in any form or on any grounds.
The document reflects the rapid development of the digital environment and technology, leadership philosophy, and current trends in the labor market. Changes have been introduced in the main sections of the Policy. For example, there have been adjustments to the advanced development of employee competencies, the use of a flexible system of incentives and the establishment of key personnel, and steps to manage the effectiveness of workforce planning.
All employees are required to familiarize themselves with Company Policy at informational events held by LUKOIL Group entities and contribute to its implementation.
Improvement of the HR management system and its structure is ongoing and in line with our strategic goals and objectives and is intended to ensure the economic efficiency of LUKOIL Group’s operations. In 2020, as part of developing the service management model, it was decided to establish LUKOIL-Multifunctional Business Support Center LLC to consolidate most services, including accounting, financial, HR administration, etc.
Before undertaking this change, employees met with their immediate supervisors and heads of LUKOIL-Multifunctional Business Support Center LLC, where the terms of the transition were explained and all questions answered.