Human Resource Management Principles Of OAO Gazprom Group

9. FEATURES OF HUMANRESOURCE MANGEMNET

HR Management Principles

Following the requirements of the International Labor Organization Conventions ratified by the Russian Federation, OAO Gazprom puts into practice international labor principles and standards: freedom of association, effective recognition of the right to collective bargaining, elimination of all forms of forced or compulsory labor, and avoidance of discrimination in employment opportunities. The Company recognizes employee rights to decent working conditions, fair remuneration, protection from occupational risks, career growth opportunities, the right to rest and leisure, individual development, maternity protection, and other social guarantees.

In accordance with the existing

One of the main goals is to recruit and retain highly qualified professionals who share the Group’s corporate values, strategic goals and objectives. To achieve this goal, the Group improves motivation systems, develops and applies evaluation systems for personnel performance and efficiency, and uses global experience and best practices in HR management. Personnel is a key source of the Company’s long-term competitive advantage on global energy markets. Therefore, planning and coordination of the HR management system is a vital component of corporate planning

Personnel training and development

The main aim of OAO Gazprom’s HR management system is to provide administration and production facilities with highly qualified personnel who are able to adapt to changing environment conditions, rising competition, the increasing complexity of equipment and technologies, and sharing OAO Gazprom strategic goals and objectives. Therefore, special attention is paid to such critical skills as openness to innovation, responsibility, ability to demonstrate a creative approach and initiative.

The task of providing companies with personnel demonstrating the required professional and individual qualities is carried out not only in the process of personnel recruitment, but also through the Gazprom Continuous Vocational Education and Training System (CVETS) which is based on the following

The training units hold annual competitions in professional skills for key blue-collar jobs.

The training provided within the Gazprom Energoholding corporate HR training and development system is based on the TGK-1 Training Center and the Mosenergo Personnel Training Center.

Workforce Motivation Recruiting and retaining qualified personnel through competitive compensation and non-financial rewards are principal objectives of OAO Gazprom HR management.

In accordance with the Standard Payroll Provision for OAO Gazprom Employees and the Standard Payroll Provision for OAO Gazprom Employees Engaged in Developing Offshore Oil and Gas Fields, Group companies apply a time-rate-bonus remuneration system based on a Principal Unified Rate Schedule, and a time-rate individual remuneration system based on Official Salary Plans.

Current compensation plans include:

 official salaries and wage rates based on qualifications and professional skills;

 recurring performance-based bonus;

 benefits and allowances based on labor conditions and volume of