Personnel characteristics

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).

LUKOIL Group’s headcount and average headcount, people
2018 2019 2020
Headcount 105,991 105,624 104,264
Average headcount 102,508 101,374 100,768
Turnover rate [%] 7.8 7.5 6.7
Note.
The headcount decrease in 2020 was due to the reorganization measures and the withdrawal of LUKOIL-INFORM LLC from the Group.
Breakdown of LUKOIL Group employees by region, %
Breakdown of LUKOIL Group employees by type of activity, %

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.

Indicators related to working with young employees and professionals, people
2018 2019 2020
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
young professionals 589 631 523
Number of students studying under agreements with LUKOIL Group entities 173 281 325
Note.
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.
Choosing the best

Choosing the best

Since 2011, LLK-International has been implementing the Prospects project targeting graduates of technical and economic higher education institutions. The main objective of the project is to recruit professionals in lubricant development and technology, and in commercial, economic, and financial sectors, on a competitive basis.

The Prospects partners include 19 universities in 10 cities (Moscow, St. Petersburg, Perm, Rostov-on-Don, Ufa, Yekaterinburg, Tomsk, Novosibirsk, Polotsk, Volgograd). The project has grown significantly thanks to the high involvement of the project team, which consists of more than 50 employees of LLK International, including the CEO, top managers, and even young interns. The competition is very popular, and the rivalry among contenders is quite intense: out of more than 5 thousand candidates, about 150 graduates have joined LLK International over the past ten years. The competition consists of three qualifying rounds:

  • I round: testing and interviews with candidates in chemistry, economics, and finance;
  • II round: completion of individual assignments;
  • III round: in-person interviews with the CEO, managers, and employees of structural subdivisions in the LLK International office in Moscow.

Winners receive a recommendation for a one-year internship as a management trainee at LLK-International companies with an individual mentor assigned. Each project participant receives modular training to develop their soft skills and works with a mentor to expand their professional knowledge. This approach enables young specialists to develop the necessary competencies in just one-two years in their area of responsibility and enables them to be included in the management reserve.

Over the ten years of the Prospects project, two of its participants became managers in the Group’s foreign entities; two are department heads, and six are heads of Moscow office divisions; 13 people have been promoted to senior management positionsData is as of 2020.. Thus, LLK-International has created a talent pool which is gaining unique knowledge through mentorship. Also, the Prospects alumni participate in scientific and commercial projects and contribute to LUKOIL Group’s overall business results, which was recognized during their performance evaluation: 15 employees won the corporate competition and were awarded the title “Best Young Specialist.”