HR Management Approach
As a major employer, NOVATEK recognizes its responsibility for building long-term mutually beneficial relationships with its employees, while ensuring decent and safe working conditions. The Company considers human capital to be its core asset and offers its employees competitive salaries and other financial incentives, as well as opportunities for unlocking their professional potential and achieving personal development.
At the Board of Directors’ level, matters related to HR management are reviewed by the Remuneration and Nomination Committee. At the level of the Company’s executive bodies, these matters are supervised by the Deputy Chairman of the Management Board responsible for HR management and the internal social policy, including workplace diversity.
At the end of 2021, NOVATEK’s headcount was 18,404 employees, with the Yamal-Nenets Autonomous Region, the Company’s core operating region, accounting for most jobs (59% of the headcount).
HR risks are assessed for all new Company projects as part of ongoing ESIA (Environmental and Social Impact Assessment). In particular, the FEED stages of the Yamal LNG and Arctic LNG 2 projects included an analysis of HR potential, supply and demand in the employment market of the Russian Arctic, risks and opportunities for workforce migration, as well as an assessment of the local population’s mental well-being. NOVATEK’s Risk Map covers HR management risks, in particular the risk of losses due to the lack of qualified talent and tight competition for talent with industry peers.
NOVATEK has zero tolerance for any kind of discrimination or persecution based on any grounds that warrant protection under universally accepted principles and standards of international law. When recruiting, hiring, training, establishing job duties, wages and promotions, the Company looks at the qualifications, performance, skills, and experience of a person and adheres to the equal opportunity principle.
NOVATEK embraces diversity, offering equal opportunities to employees of different ethnic origins, genders, religious beliefs, ages, and physical abilities. At NOVATEK wage rates for women and men are based on equal pay structures. Women working at the Company have the same opportunities for development and career advancement as men. Men make up 78% of the Company’s headcount, while women make up 22%. The gender imbalance in NOVATEK’s headcount is mainly due to the nature of its operations in severe climatic conditions of the Russian Far North, which mainly involve a workforce comprised of men. Wherever possible, the Company strives to ensure a more balanced gender split. For example, in our marketing subsidiaries, the proportion of women employed is 49%.
NOVATEK hires people with special needs, contributing to their inclusion in society. The Company also provides retraining and relocation opportunities for employees injured on the job.
The Company designs and implements programs to engage and retain young talents, including applied research conferences engaging younger employees on key topics related to the Company’s operations, as well as Steps in Discovering Talents, a two-year program for the onboarding and professional development of newly hired graduates. A mentor is assigned to each young specialist participating in the Steps in Discovering Talents program, who helps onboard their younger colleague during their first year of employment with the Company, drafting up an Individual Development Plan for the year ahead and holding monthly working meetings to discuss goals and objectives, and progress toward them, as well as to offer feedback.
NOVATEK runs a range of social programs described in the collective bargaining agreement and aimed at supporting employees. The collective bargaining agreement applies to all employees. The Company develops and runs social programs in close cooperation with trade unions and employees, considering their demands and the most relevant issues. At the same time, the Company aids to employees coming from vulnerable groups and those in difficult life situations.