Training and development

Developing human potential is a long-term priority of the Company’s HR Policy. Our corporate training system is focused on the Company’s strategic plans and its need for employees with certain qualifications and competencies. Training programs serve as a tool for improving productivity, quality, and safety of labor and for minimizing risks associated with uninformed actions of employees.

Training programs

Our training system deploys a wide range of tools and methods to train employees, including full-time study at state educational institutions and private centers, corporate professional development programs, corporate internships and training courses, etc. In addition, the Company uses corporate trainers and mentors. Both training and mentorship methods are used when introducing new management approaches, and also serve to foster a good mutual relationship with employees.

Employees can submit a training application to their line manager. After approval under established procedures, the application is incorporated into the Personnel Training Plan.

Employee training at LUKOIL Group entities
2017 2018 2019
Number of trained employees, people 70,183 74,684 78,026
Amount of training, person-courses 193,761 243,467 258,728
Average number of training hours per trained employee, hours NA NA 84
Average annual training costs per trained employee, RUB NA NA 12,548

Note. (1) The growth in training in 2018-2019 was due to the organization of mass training in civil defense and emergency protection and the implementation of corporate and compulsory training programs on occupational safety and information security. (2) The average number of training hours per trained employee = Total number of hours of training events held at Russian and foreign entities / Total number of employees that received training in the reporting year. Average annual training costs per trained employee = Total costs to train employees that received training in the reporting year / Total number of employees that received training in the reporting year.

Distance learning

In 2019 our corporate Distance Learning System (DLS) marked its 15th year. Over these years, it has been transformed from a service providing a number of online courses into a comprehensive individualized learning system. Today, the DLS is an efficient and cost-effective training tool covering a wide range of employees and a variety of educational programs.

In 2019 employees of 59 entities of LUKOIL Group completed more than 140 thousand person-courses in a distance learning format.

The main goal of the DLS is to ensure that employees have the required level of knowledge. This goal is achieved through training and communication, assessment, and testing. The DLS is used to achieve large-scale training objectives, to test employee knowledge for compliance with corporate and statutory requirements, and to develop professional and managerial competencies, as well as the personal effectiveness skills of employees.

Management talent pool

The Company is constantly updating the reserve pool of talent, which consists of the most experienced and promising employees. All workers of the Company have equal opportunities to be credited to the pool, provided that they perform professional duties at the appropriate level systematically. An individual development plan is elaborated for each employee included in the pool in order to gain the necessary competencies.

To create the pool of executive candidates capable of taking up leadership positions in the Company, management succession planning is carried out. This process includes the following steps:

  • Determining the qualities, characteristics, and competencies of future managers, based on the strategic needs of the business,
  • Identifying employees that have high leadership potential, and conducting a comprehensive assessment of their skills,
  • Preparing tailored programs for employees, including structured training, internships, rotations, assignments to special projects, and mentoring by a senior employee (top manager).

Competency centers

In accordance with Federal Law No. 238-FZ dated 3 July 2016 “On Independent Appraisals of Competencies” and a related decision from the Company’s President, in 2016 the Center for Assessment of Competencies was established, and in 2017 it was authorized to conduct independent assessments by the Council on Professional Competencies in the Oil and Gas Complex. The independent assessment of employee capabilities is carried out for key professions and positions. Professional exams are administered by qualified experts who confirm the professional level of employees or identify gaps in their knowledge, skills, and capabilities, including in the area of industrial and occupational safety.

Based on the results of these exams, tailored recommendations are elaborated to prepare targeted training programs. Due to the special training sites now established in the regions, the training of personnel has become practice-oriented.

In 2019, over 2 thousand people (and more than 3 thousand in the space of two years) from production, refining, and distribution organizations took part in such assessments. The assessment covered the following professions: oil and gas production operators, process unit operators, and commercial operatorsIn addition to LUKOIL Group’s employees, in 2019 two candidates from external organizations took part in the assessment.. In September 2019, the Company began to assess the capabilities of specialists in oil and gas refinery processing, the maintenance and repair of refinery equipment, and field geology.

Also, in 2019 PJSC LUKOIL’s Working Group on Development of the Corporate System of Professional Competencies analyzed new and updated professional standards to ascertain whether their application was mandatory: 40 standards turned out to be mandatory and 160 voluntary. Lists of respective standards were sent to Russian LUKOIL Group entities for future reference.

Policy on working with young professionals and young employees

Working with young employees and professionals is an important component of the Company’s HR Policy. It represents a system of measures aimed at recruiting young professionals and fostering the conditions and opportunities that will allow them to achieve successful and effective personal fulfillment. These measures include internships for students at LUKOIL Group entities and mentorshipThe mentorship procedure is described in the Regulations on the Induction of New Employees at LUKOIL Group Entities approved by a Resolution of the Management Committee of OJSC LUKOIL on 15 December 2008 (Minutes No. 33). The Regulations establish the procedure for organizing and holding induction events for new employees at LUKOIL Group entities., initiatives that facilitate the continuity of professional experience, best manufacturing traditions, and the corporate culture. 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.

Indicators related to working with young employees and professionals, people
2017 2018 2019
Number of young employeesYoung employees are employees of PJSC LUKOIL and LUKOIL Group entities under 35 years of age, including young professionals. Young professionals are employees aged under 30 who have a higher or secondary vocational education and who began working at the Company in positions related to their education, including in manual jobs, within six months after graduation or within three months after completion of military service in the Armed Forces of the Russian Federation. 42,772 41,174 39,179
Share of young employees in total employee headcount, % 40% 39% 37%
Number of young professionals 1,945 1,639 1,423
Young employees recruited, including: 12,125 14,624 9,427
  • young professionals
706 589 631
Number of students studying under agreements with LUKOIL Group entities 295 173 281

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 an increase in the retirement age in Russia beginning in 2018.