An integral part of the Group’s compensation system is a social support program for employees and their family members, which is taken into account when evaluating the overall attractiveness and competitiveness of the compensation to be proposed.
Zarubezhneft Group has approved the Integrated Vision of Lump-sum Payments and Social Policies, the purpose whereof is to provide a decent level of medical services, assistance to the employees facing various adverse circumstances, compensation for the earnings lost upon retirement, and support to the Group retirees.
Uniform requirements to the subsidiaries’ benefits plans are formalized in the Model Regulation on Social Securities for the Subsidiaries’ Employees. Each subsidiary selects and approves, based on its employees’ needs and its own financial capacity, the optimal package of benefits, securities and refunds attributable to the employees.
In order to take measures to maintain employees’ health, the Company arranges reservations in Russian and Crimean health resorts. Employees are given the opportunity to purchase health resort vouchers for themselves and their family members, which are to be partially refunded by Zarubezhneft JSC; large families, along with families with children under 14, are given priority in this regard.
The year 2019 saw a positive trend in welfare benefits. In 2019, the amount of welfare benefits increased by 8% against 2018; and excluding retirement benefits from JV Vietsovpetro, the increase in welfare benefits amounted to 10%, as shown below.
Intangible incentives constitute an inherent part of the personnel motivation system. In order to encourage employees and labor collectives for significant contribution to Zarubezhneft JSC’s development and for the achievement of prominent production, financial and economic indicators, as well as for the purpose of improving corporate culture, the Company established titles of honor such as “Honored Employee of Zarubezhneft JSC”, “Long-Service Worker of Zarubezhneft JSC”, and such awards as Zarubezhneft JSC Certificate of Appreciation and Zarubezhneft JSC Certificate of Acknowledgment.
Over the last year, 236 employees of Zarubezhneft Group won departmental and corporate awards.