4.1. HR Management at the Gazprom Group
Our people are one of our most valuable assets. To recruit and retain human capital as our main resource, we seek to offer our employees a safe and comfortable working environment and medical care while also running a system of financial and non-financial incentives and personnel development programs.
PJSC Gazprom develops and implements consistent HR management approaches in its subsidiaries and affiliates. PJSC Gazprom’s key HR management solutions are applied at the Gazprom Neft Group, Gazprom Energoholding, and Gazprom Neftekhim Salavat.
The HR Management Policy of PJSC Gazprom, its Subsidiaries and Entities seeks to create an effective HR management mechanism based on social partnership principles.
The Policy’s key goal is to maximize return on investment in talent by doing the following:
- maintaining a status of the preferred employer;
- comprehensively motivating each employee to achieve the Company’s goals;
- creating and developing an unbiased and efficient framework to assess the personal contribution of each employee.
The Comprehensive Program for Improvement of HR Management at PJSC Gazprom, its Subsidiaries and Entities (the “Program”) is subject to update and approval every five years. This helps the Group to make its HR management system more effective, keep abreast of the latest trends and comply with laws in this area.
As part of the program, we are working to build a close-knit team of top-notch professionals motivated to effectively address challenges faced by the Group in the current economic environment by sustainably managing revenues and expenditures.
Focus areas:
- Headcount planning;
- Recruiting and staff assessment;
- Employee training and development;
- Staff motivation;
- Social policy;
- Expenditure management, reporting and performance assessment;
- Information support and corporate communications.
We set KPIs for each focus area. Their achievement is reviewed annually as part of assessing operating results of subsidiaries and entities.
Equal Rights of Employees
PJSC Gazprom is among Russia’s largest employers providing equal rights and opportunities to all employee categories and eliminating conditions for gender inequality and other types of discrimination.
The Gazprom Group ensures equal remuneration for men and women in positions with the same level of professional expertise. The ratio of fixed and variable remuneration is the same for both genders.
Share of employees in the Management Committee, %
| Indicator | 2019 | 2020 | 2021 | Change 2021/2020, p.p. |
|---|---|---|---|---|
| Gender | ||||
| male | 78.6 | 85.7 | 85.7 | – |
| female | 21.4 | 14.3 | 14.3 | – |
| Age | ||||
| under 30 y.o. | – | – | – | – |
| 30 to 40 y.o. | – | – | – | – |
| 40 to 50 y.o. | 21.4 | 21.4 | 14.3 | –7.1 |
| over 50 y.o. | 78.6 | 78.6 | 85.7 | 7.1 |
Headcount as of the end of the reporting period
| Indicator | 2019 | 2020 | 2021 | Change 2021/2020, % |
|---|---|---|---|---|
| Headcount as of December 31, 2021, thousand people | 473.8 | 477.6 | 479.2 | 0.3 |
| incl.: | Share of the Gazprom Group’s employees by category, % | Change 2021/2020, p.p. | ||
| Executives | 14.4 | 14.2 | 14.3 | 0.1 |
| incl.: | ||||
| male | 75.4 | 76.0 | 75.9 | –0.1 |
| female | 24.6 | 24.0 | 24.1 | 0.1 |
| incl.: | ||||
| up to 30 y.o. | 4.6 | 4.0 | 3.6 | –0.4 |
| 30 to 50 y.o. | 69.3 | 69.7 | 69.8 | 0.1 |
| over 50 y.o. | 26.1 | 26.3 | 26.6 | 0.3 |
| Specialists and other white-collar staff | 33.0 | 33.4 | 34.2 | 0.8 |
| incl.: | ||||
| male | 58.4 | 58.7 | 58.8 | 0.1 |
| female | 41.6 | 41.3 | 41.2 | –0.1 |
| incl.: | ||||
| up to 30 y.o | 13.5 | 12.5 | 11.9 | –0.6 |
| 30 to 50 y.o. | 68.2 | 68.5 | 68.0 | –0.5 |
| over 50 y.o. | 18.3 | 19.0 | 20.1 | 1.1 |
| Workers | 52.6 | 52.4 | 51.5 | –0.9 |
| incl.: | ||||
| male | 78.0 | 78.8 | 78.6 | –0.2 |
| female | 22.0 | 21.2 | 21.4 | 0.2 |
| incl.: | ||||
| up to 30 y.o. | 15.7 | 15.0 | 13.9 | –1.1 |
| 30 to 50 y.o. | 56.4 | 57.0 | 57.1 | 0.1 |
| over 50 y.o. | 27.9 | 28.0 | 29.0 | 1.0 |
An increase in the Group’s headcount in the reporting year is due to strategic projects in gas processing and transportation along with greater efforts to implement PJSC Gazprom’s investment program (geophysical survey, engineering and design, materials and equipment supply).
There were no material changes in the staff breakdown by gender.
A smaller share of employees under 30 years old and a bigger share of staff over 50 years old across all categories are associated with natural factors.
The Gazprom Group complies with the government-imposed quota system and employment requirements for people with disabilities. Such employees are entitled to benefits prescribed by the Russian Labor Code subject to their individual rehabilitation plan. In some regions of the Gazprom Group’s operations where compliance with the government quotas is impossible due to the specific character of operations, agreements with third-party organizations are signed to employ people with disabilities.
For more details on headcount and other indicators, see Appendix
In the reporting year, legal regulation of social and labor relations within the Group relied, among other documents, on the industry agreement covering organizations of the oil and gas industries and construction of oil and gas facilities for 2020–2022.
The Gazprom Group entities handled staff (public) queries in line with the applicable legislation of the Russian Federation and their local regulations.
The Group uses an intranet portal, an interactive staff information portal, e-mail news letters, information boards, and personal interactions between employees and HR managers.
The Gazprom Group has also created a sociological portal to collect feedback in the form of surveys and polls on HR management matters for the staff of subsidiaries and entities. To make talent management more effective, the Group polls quitting employees.
In 2021, there were no cases of discrimination in the Gazprom Group, and the HR Department received very few complaints and reports from the Group’s employees as regards labor disputes and unfair labor practices.
Shift personnel structure(1)
| Indicator | December 31, 2019 | December 31, 2020 | December 31, 2021 |
|---|---|---|---|
| Roster of employees of the entities which use the shift system, thousand people | 224.7 | 231.7 | 225.2 |
| Headcount of shift staff, thousand people, incl.: | 50.5 | 51.8 | 53.9 |
| people working in the Far North and equivalent areas | 47.8 | 47.6 | 50.2 |
| Relative share of shift staff in the Group’s roster, % | 22.5 | 22.4 | 23.9 |
The average headcount of shift workers in 2021 exceeded that of 2020 by 2,100 people (or +4.1%) due to the commissioning of new facilities relying on shift personnel in remote areas, including in the Far North.
The shift staff enjoys an effective working environment and comfortable living conditions. The Company provides transport to bring shift workers from the meeting point to the place of work and back. There are ongoing efforts to expand the camp infrastructure as a way to guarantee high living standards for the shift personnel during their time at the shift camp. Gazprom offers its employees high-quality medical, social and amenity services, and makes sure that the work and rest schedules are respected.
Financial Incentives for Employees
The PJSC Gazprom Employee Remuneration Management Policy requires that the salary and tariff rates used at the Company factor in the employees’ qualifications and business skills, extra payments and allowances made subject to relevant labor conditions and workload, monthly performance-based bonuses, one-off bonuses (paid for launching new production facilities and construction projects, export gas supply, introduction of new equipment, energy savings, contribution to process streamlining and R&D, and discovery of new deposits), and year-end performance bonuses.
The Policy provides for the fixed part of remuneration (salaries / tariff rates) and the variable part (extra payments, allowances and bonuses). Linked to the remuneration system, the fixed part constitutes up to 70% of the remuneration. Salaries and tariff rates of the employees of PJSC Gazprom’s budgeted entities in Russia were raised by 2% on January 1, 2021. In 2021, the average monthly salary at the subsidiaries responsible for the core operations of PJSC Gazprom (gas production, processing, transportation and underground storage) amounted to RUB 107,200.
The data was sourced from 28 subsidiaries responsible for the core operations (gas production, processing, transportation and underground storage). For the list of subsidiaries, see Appendix
Social Policy of the Gazprom Group
The key focus areas of our social policy include social payments, housing, and non-governmental pension insurance
Key social benefits:
- Social payments to employees include benefits to all Group staff, as well as to certain staff categories (employees of subsidiaries located in the Far North or equivalent areas, young professionals, employees who have multi-child families and children with disabilities, and others);
- Housing is provided under the corporate program funded by both employees and the employer through bank mortgage schemes (using a co-financing approach). Participation in the program as part of advancing production goals helps retain key employees for a long period.
- Personal insurance;
- Medical care;
- Non-governmental pension insurance for employees at the Gazprom Group entities relies on pension agreements signed with Non-State Pension Fund GAZFOND.
Benefits provided to full-time, part-time and temporary employees working under an employment contract(1)
| Benefits | Full-time employment | Temporary employment(2) | Part-time employment(3) |
|---|---|---|---|
| Life insurance(4) | + | – | + |
| Medical services | + | – | + |
| Injury and disability compensation | + | + | + |
(1) Information provided for PJSC Gazprom, its representative offices, branches and subsidiaries involved in core business activities and infrastructure entities included in PJSC Gazprom’s budgeting.
(2) Temporary employment refers to fixed-term employment contracts. If their term is less than 3 years, life insurance is not provided. If their term is less than 2 months, medical services (voluntary medical insurance) are not provided.
(3) Part-time employment as per Article 93 of the Labor Code of the Russian Federation. The benefits are not provided under civil law agreements for the purchase of services.
(4) Covers executives of PJSC Gazprom’s Administration and subsidiaries engaged in core operations.
In accordance with the Long-Term Development Strategy of the Pension System in the Russian Federation, the Gazprom Group provides a Corporate Pension arrangement for its employees based on agreements signed with Non-State Pension Fund GAZFOND. This pension arrangement covers employees who have worked at PJSC Gazprom’s entities for at least 15 years and by the time of retirement are entitled to receive an old-age pension.
The arrangement comprises payments from GAZFOND and PJSC Gazprom and its subsidiaries depending on the employment period. Employees receive these payments upon retirement.
Headcount of participating retired employees of the Gazprom Group's entities, thousand people
| Year | 2019 | 2020 | 2021 |
|---|---|---|---|
| Headcount | 144.5 | 144.3 | 139.9 |
In 2021, over 139,900 people were granted pensions under relevant agreements, down 3% year-on-year due to fewer employees reaching the retirement age under the applicable pension legislation.
Employees of the Gazprom Group’s entities are entitled to medical care under voluntary medical insurance (VMI) contracts purchased by the employers for the benefit of their existing and retired employees and their families. Under VMI contracts, insurance companies arrange and pay for medical care and preventive treatment to mitigate threats to employee life and health. The procedures and scope of medical care are defined in voluntary medical insurance programs.
The VMI programs offer a comprehensive range of high-tech, specialized and other health services, including outpatient and inpatient care. The insured are offered a wide range of therapeutic and preventive treatment services to restore their health and work capacity, as well as to prevent exacerbation of chronic diseases.
The VMI services are primarily provided by the Gazprom Group’s healthcare facilities. Where such services are unavailable at the Group’s facilities, they are provided by third-party healthcare institutions from the list specified in the VMI program. For certain types of healthcare, a limit can be set on the scope or total cost of medical services provided under VMI contracts.
Number of the Gazprom Group’s employees, retirees and members of their families insured under VMI programs, people
| Indicator | 2019 | 2020 | 2021 | Change 2021/2020, % |
|---|---|---|---|---|
| Number of the Gazprom Group’s employees insured under VMI programs as of the end of the reporting period | 297,542 | 301,621 | 306,010 | 1.5 |
| Number of family members of the Gazprom Group’s employees insured under VMI programs as of the end of the reporting period | 151,486 | 150,492 | 158,150 | 5.1 |
| Number of the Gazprom Group’s retirees (former employees) and their family members insured under VMI programs as of the end of the reporting period | 103,321 | 103,250 | 105,261 | 1.9 |
Corporate Healthcare System
The corporate system of medical care for the Gazprom Group’s employees, retirees, and their families is based on the principle of timely, high quality, and continuous medical assistance.
The healthcare system includes:
- provision of medical services at workplace (first-aid posts, medical rooms, office physicians);
- provision of medical services at corporate healthcare institutions (health units, outpatient clinics, and medical centers);
- VMI with access to a broad range of medical services from third party providers;
- medical rehabilitation, health resort treatment, and general health promotion at corporate sanatoriums, preventative clinics, rehabilitation, health and recreation centers, and holiday facilities.
The corporate healthcare system was developed mainly based on the interests of its participants. To cater for their needs, in 2021, PJSC Gazprom set up the Occupational Healthcare and Sanitary and Epidemiological Control Directorate responsible for analyzing feedback on the quality of medical services from the corporate healthcare system participants. Complaints are reviewed by dedicated committees set up at medical institutions.
Payments made by the Gazprom Group’s entities for rehabilitation treatment and targeted preventive initiatives under VMI contracts in 2019–2022, RUB million
Promotion of Healthy Lifestyles
In 2021, the Group partially suspended its specialized programs to promote healthy lifestyle due to the spread of the COVID-19 pandemic. However, its programs focused on engaging employees in sports activities, including the funding of sports clubs and the reimbursement of sports-related expenses, remained in force.
In 2021, the Emergency Task Force continued to coordinate the measures taken to prevent the spread of COVID-19 at the Gazprom Group’s facilities. The Emergency Task Force worked in close collaboration with executive authorities, the Federal Service for Surveillance on Consumer Rights Protection and Human Wellbeing (Rospotrebnadzor), and other stakeholders. Similar task forces continued to function in the regions of Gazprom’s operations.
In 2021, the Emergency Task Force held 22 meetings to discuss the following issues:
- additional funding for sanitary and epidemiological response measures to be organized and implemented at the Gazprom Group’s facilities in line with the recommendations and directives of Rospotrebnadzor;
- access control procedures for shift personnel working at the Gazprom Group’s facilities;
- organization and monitoring of employee vaccination at the Gazprom Group;
- development and implementation of post-COVID-19 rehabilitation programs for employees and their families;
- approval of methodological guidelines on preventing the spread of COVID-19.
In the reporting year, the Gazprom Group purchased 52,806 thousand disposable medical masks and 1,623 tons of skin disinfectants to prevent the spread of COVID-19The data collection perimeter includes PJSC Gazprom’s Administration, 2 PJSC Gazprom branches, 47 subsidiaries involved in core business activities, which are included into PJSC Gazprom’s IFRS consolidated financial statements..
In January 2021, the Group launched a vaccination campaign for its employees.
Epidemiological Response
In 2021, the Group continued to implement epidemiological response measures to maintain business continuity. The measures included:
- daily remote screening of employees’ body temperature before, during and after the shifts;
- ensuring social distancing at work;
- promoting the use of personal respiratory protective equipment and antiseptic hand disinfectants by employees;
- arranging preventive disinfection of facilities and transport vehicles, including terminal disinfection for identified COVID-19 cases;
- monitoring the epidemiological situation and making organizational and management decisions on the basis of information on COVID-19 cases among personnel, collected and analyzed on a daily basis.
The Gazprom Group revised its employee medical screening procedures to ensure early detection and prevention of post-COVID-19 conditions and complications. In 2021, the Company developed a post-COVID-19 rehabilitation program for the Gazprom Group’s employees to be implemented at sanatoriums and preventive clinics within the corporate healthcare system.
Non-financial Incentives
The Group has in place an incentive system to boost employee engagement, loyalty and commitment to corporate values. The system provides for state, ministerial and corporate awards.
The Gazprom Group also holds professional competitions as an additional personnel development and motivation tool and the means of promoting professional achievements and best practices.
Professional competitions in core professional disciplines relevant for PJSC Gazprom subsidiaries are held in even years as part of Labor (Workmanship) Festivals. The preparations for the 2022 Labor Festival are in progress.
Alexey Kandalov
Head of Gazprom ONUTC
Alexey is in charge of initiatives to maintain the education quality and implement corporate digital solutions for employee training. He is also responsible for the continuous training of the Gazprom Group employees amid the pandemic and associated restrictions. Gazprom ONUTC’s multi-portal platform for distance learning enabled the Company to put its Continuous Vocational Education and Training system online and provide training for over 20,000 employees.
4.1. HR Management at the Gazprom Group ›Improving Professional Expertise
Personnel Training
The success of the Gazprom Group depends on professional expertise of its employees, who continuously expand their professional knowledge and competencies, update practical experience and apply it in their work.
In line with the existing Continuous Vocational Education and Training System and on the basis of the competitive selection procedure, PJSC Gazprom annually approves the centralized Skills Upgrading and Professional Retraining Schedule for Managers and Specialists of PJSC Gazprom, its Subsidiaries and Entities. The subsidiaries and entities adopt their own training plans for work-study centers and educational institutions in the regions of operation. The Group companies provide training to their employees with a view to upgrading their skills to relevant professional standards.
Implementation of training programs at the Gazprom Group
| Indicator | 2019 | 2020 | 2021 | Change 2021/2020, % |
|---|---|---|---|---|
| Average duration of all types of training per employee of the Gazprom Group, hours: | ||||
| managers, specialists, and other white-collar staff | – | 45 | 51 | 13.3 |
| blue-collar staff | – | 63 | 71 | 12.7 |
| Total duration of training per employee of the Gazprom Group by gender, thousand hours: | – | 23,778 | 28,638 | 20.4 |
| male | – | 18,902 | 23,669 | 25.2 |
| female | – | 4,876 | 4,969 | 1.9 |
| Number of employees covered by the Gazprom Group’s skills upgrading and professional retraining programs, thousand people(1): | 456.2 | 406.1 | 603.8 | 48.7 |
| managers, specialists, and other white-collar staff who participated in further professional training programs | 236.5 | 199.4 | 250.1 | 25.4 |
| blue-collar staff who participated in professional development training | 219.7 | 206.7 | 353.7 | 71.1 |
As part of the Group’s efforts to prevent the spread of COVID-19 in 2020, a number of continuous professional education programs were rescheduled for 2021 because they could not be held using only distance learning technologies. This is the driver behind the increase in the majority of personnel training indicators in 2021.
The results of sustainability training programs in 2021
- 22 employees of the Gazprom Group completed the targeted MBA program on Sustainable Development and Corporate Social Management (a 2-year 9-module program run by the St. Petersburg State University of Economics).
- 19 employees of PJSC Gazprom’s Administration completed the Business and Society skills upgrading program run by the St. Petersburg University Graduate School of Management.
- 20 employees of the Gazprom Group completed the program on Sustainable Development of Oil and Gas Companies: Best Practices of Wintershall Dea AG, Uniper SE, OMV AG, Gazprom International Training B.V.
Gazprom Classes
The Gazprom Group implements the Gazprom Classes project at 27 schools located in five Russian federal districts. The project focuses on providing early career guidance to school students in the regions of operation of the Group’s companies. The most talented students motivated for a successful professional career undergo selection for targeted education in areas that meet the needs of the Gazprom Group entities.
In addition, PJSC Gazprom’s subsidiaries and entities, which actively contributed to the creation of Gazprom Classes, arrange various team building and career guidance training sessions along with sports and cultural events for schoolchildren.
In 2021, the project was expanded to include Gazprom Classes launched in the Orenburg Region with the support from Gazprom Dobycha Orenburg and Gazprom Pererabotka.
For the list of partner universities see Innovations at the Gazprom Group section
The Gazprom Group entities assist educational institutions with the approval of training programs, setting up scientific and simulation labs, arranging field training and delegating the Company’s managers and senior specialists to teach students. The Gazprom Group entities also collaborate with more than 200 universities in providing pro-active training and skills upgrading programs.
The fundamental principles of Gazprom’s collaboration with universities are continuity, systemic approach, and innovations. They are included in the approved University Collaboration Concept and the Regulation on Collaboration with Anchor Universities.
The key objectives of the Group’s collaboration with the universities:
- run career guidance programs for school and university students;
- provide targeted training for future specialists and highly-qualified professionals;
- offer further professional training for employees;
- enhance educational programs;
- develop and publish methodological, educational, and analytical materials on oil and gas (including the development of online programs);
- update library collections on oil and gas;
- set up, equip, and refurbish specialized laboratories, educational lab complexes, classrooms (educational centers and lecture rooms), training simulation labs, educational and scientific centers, research complexes, training grounds, scientific and technical libraries, and career guidance recreation centers in the areas of scientific and technical collaboration;
- develop the system of field practice for students and internship programs for academic staff at production facilities;
- encourage talented professors playing an active role in training sponsored students;
- organize and support the educational process at specialized departments;
- promote the engagement of the Gazprom Group’s specialists in educational programs.
Number of students who studied under employer-sponsored training agreements with Gazprom Group companies, people
In 2022, the Group plans to sign 562 agreements for employer-sponsored studies (including 147 agreements for studies at secondary vocational institutions) to train future specialists and create a talent pool for 34 Gazprom Group entities.
In 2021, 9,663 students of higher education institutions took an internship at PJSC Gazprom’s subsidiaries and entities.
Number of university graduates hired by the Gazprom Group entities, people
| Indicator | 2019 | 2020 | 2021 |
|---|---|---|---|
| Total number of hired graduates, including: | 2,896 | 2,153 | 2,966 |
| graduates of higher education institutions | 2,012 | 1,610 | 2,030 |
| graduates of secondary vocational institutions | 884 | 543 | 936 |
To identify students who plan to build a career in oil and gas, the Group continued to host the Gazprom Industry Olympiad for Schoolchildren and the Student Olympiad of PJSC Gazprom. The olympiads in key subjects related to the Company’s business are held in collaboration with partner universities of PJSC Gazprom.
The partner universities traditionally host annual Gazprom Days — job fairs of Gazprom subsidiaries and entities. These events provide students with extensive information about the Group’s subsidiaries and offer internship and employment opportunities.
To reward the sponsored students for outstanding achievements in studies, PJSC Gazprom holds annual competitions for personal scholarships among the students of secondary vocational and higher education institutions.
In 2021, PJSC Gazprom hosted the first Forum of Sponsored Students aimed at encouraging them to develop the competencies required by the Company and assisting them in finding employment at the Gazprom Group entities. The Forum will be held every two years.
Onboarding of Young Specialists
The Gazprom Group continuously focuses on the onboarding of young employees in line with its regulation dedicated to the interaction with students and young specialists at PJSC Gazprom’s subsidiaries and entities. To that end, it implements specialized onboarding programs, in particular, with the involvement of veteran mentors and industry experts.
In 2021, 188 employees took part in workshops under the School of Young Specialists onboarding program, including four workshops held in person (75 participants) and four online workshops (113 participants).
The Group’s subsidiaries have created the Councils of Young Scholars and Specialists to engage the youth in R&D work and facilitate their effective onboarding. The Councils initiate research workshops, research-to-practice conferences, and sports and cultural events.
In 2021, the subsidiaries continued to implement the Program for Additional Social Support for Young Employees aimed at attracting and retaining young talent.
Online championship for Gazprom’s young employees
On May 24–27, 2021, the Group together with the Reliable New Generation Foundation organized and held an online case-solving championship under the auspices of the CASE-IN International Engineering Championship. The competition attracted 200 young specialists from 49 subsidiaries of PJSC Gazprom.
