In 2020, the LUKOIL Group entities employed more than 100,000 people, most of whom worked under permanent employment contracts (93 percent) and full-time (99.7 percent)Hereinafter in the section, the estimates are based on the employee headcount as of December 31 of the reporting year (unless otherwise stated).. The personnel structure has remained stable for the last three years in terms of employee categories and age. The average headcount decreased by 1.7 percent over the three years, mainly due to normal retirement and, to a lesser extent, due to optimization of the organizational structure of business segments.
About half of the employees work in the Refining, Marketing and Distribution business segment, more than a third work in exploration and production entities, and about 14 percent are employed on a rotational basis. The employee turnover rate decreased in 2019 and continued dropping in 2020 (by 0.8 percentage points relative to 2019).
|Turnover rate [%]||7.8||7.5||6.7|
The headcount decrease in 2020 was due to the reorganization measures and the withdrawal of LUKOIL-INFORM LLC from the Group.
Young professionals and employees
Recruiting and retaining young professionals is an important component of LUKOIL’s HR policy. The goal is to ensure continuity in management and production activities. Its elements include internships for students at LUKOIL Group entities and mentorshipThe mentorship procedure is described in the Regulations on Induction of New Employees at LUKOIL Group Entities approved by a Resolution of the Management Committee of OJSC LUKOIL on December 15, 2008 (Minutes No. 33). The Regulations establish the procedure for organizing and holding induction events for new employees at LUKOIL Group entities. and initiatives that facilitate the continuity of professional experience, best production traditions, and the corporate culture.
The share of young professionals of the headcount of LUKOIL Group was 35% in 2020.
Research and technology competitions and conferences for young professionals are held annually. Councils of young professionals have been established to help young people adapt to working conditions and maximize their professional talents.
|Number of young employees||41,174||39,179||36,955|
|Number of young professionals||1,639||1,423||1,317|
|Young employees recruited, including:||14,624||9,427||7,603|
|Number of students studying under agreements with LUKOIL Group entities||173||281||325|
The decline in the total number of young employees aged under 35 and in the share of young employees in total headcount is due to employees exceeding the age threshold for the young employee category and the start of the pension reform in Russia in 2018, which mandated a gradual increase in the retirement age, as well as the general demographic situation.