Labour Efficiency Management and Personnel Assessment

The Company has an employee performance management system in place based on a set of indicators for different management levels and individual targets for each employee.

Personnel assessment is an important component of the performance management system. Gazprom Neft first launched a regular employee assessment at the Corporate Centre in 2011. Regular assessment had been implemented in 18 subsidiaries and affiliates of the Company by year-end 2013.

The assessment system envisages an annual employee assessment using professional, ethical and management-related criteria. The assessment results are taken into account when planning careers and employees listed in the candidate pool and influence salary revision and annual bonuses. An internal training course, ‘Individual Development Planning’, was set up for better utilisation of the assessment results by employees. The training aims to help employees plan their professional and career development.

In 2013, the Company was actively involved in enhancing its job applicant assessment system. Gazprom Neft developed its own ability tests in line with the Company’s specific activities. The uniform approach to assessing candidates is scheduled for implementation in six key subsidiaries in 2014. This will enable the Company to improve the quality of job applicant selection for key production assets.

During 2013, the EPS of Gazprom Neft was implementing the Arrow project, aimed at improving the efficiency of the subsidiary management system. As part of the project, the Company standardised the system of employee key performance indicators to link it more closely the subsidiary development goals.