Employee Training

NOVATEK offers fair pay to attract, motivate, and retain valuable highly skilled employees.

The minimum wage of NOVATEK employees across the Company’s regions of operation is traditionally almost twice as high as the local minimum wage. In addition, NOVATEK performs salary indexation on a regular basis.

Employee remuneration comprises fixed and variable parts, with the variable component linked to the Company’s performance and the employee’s individual contribution toward its goals. Employees are also offered compensation and benefits packages.

In addition, to incentivize members of the Management Board and other key employees, the Company offers KPI-linked bonuses. These KPIs reflect financial, economic, and industry-specific drivers as well as progress toward the Company’s strategic goals, including sustainability performance. Accordingly, the KPIs for senior management comprise a consolidated index reflecting the performance of the HSE management system, including climate change management.

Designed for employees showing high commitment to the Company’s growth, the Innovator corporate program encourages sensible initiatives and ideas for business improvement.

The Company also actively uses non-financial incentives in addition to financial ones.

NOVATEK upholds employees’ rights to freedom of association and participation in trade unions. The Company maintains a dialogue with labor unions present in most of its subsidiaries, uniting 63.5% of NOVATEK employees. The Company regularly holds targeted meetings with trade unions and work teams and attends meetings of trade union committees and conferences where labor relations are discussed. By taking part in such events, NOVATEK can ease even the slightest social tensions through negotiations at early stages. As a result of this policy, the Company has not seen a single case of stoppages or strikes due to labor disputes throughout its history.

The Company respects the right of employees to collective bargaining agreements and ensures social support measures and working conditions in full as stipulated by them. Among other things, collective bargaining agreements at the Company entities may stipulate various working hours. Upon agreement with the employer, employees can opt for shorter hours, a shorter workweek, flexible work schedules as well as remote work format.

The Company invests in both the hard and soft skills of employees, running a wide range of educational programs to fulfill their career potential.

NOVATEK continuously develops its training system and updates training programs to help employees deepen their knowledge in engineering, geology, mining, environmental protection, and other fields.

The Company continues working to offer its employees more remote learning opportunities for advanced training. Every employee can independently choose to undergo training in operational areas of interest remotely from their personal computer.

NOVATEK also supports employees who choose education at state universities, providing them with days off or educational leave.

As part of university engagement areas, the Company cooperates with the Gubkin Russian State University of Oil and Gas to run the Cryogenic Technology and Equipment for Gas Industry master’s degree program, which is delivered by both university faculty members and NOVATEK experts to share relevant knowledge and hands-on experience. Students have a chance to intern at Company enterprises, and successful graduates can join NOVATEK and take part in unique innovative LNG projects.

Hired graduates participate in Steps in Discovering Talents, a two-year program for onboarding young talent and helping them develop professionally through on-the-job adaptation and development.

To further involve young talent in NOVATEK’s activities, the Company established the ProMotion Young Specialist Council in 2019 with the goal of keeping employees intellectually stimulated and up to date on innovation trends. The Council also helps to promote a healthy lifestyle, hold cultural mass events, increase the Company’s brand recognition, and engage with the youth.

To ensure business continuity, NOVATEK focuses on closing vacancies faster using advanced solutions, including the E-Staff internal database, services of HR agencies, and relevant recruiting resources as well as headhunting and recommendations.

When filling vacancies, the Company gives preference to its internal talent pipeline as a means to give its own employees the opportunity for expanding their careers and promoting professional growth.

The share of temporary workers working on external part-time conditions (under GPC agreements) is extremely small (less than 0.5%). The Company strives to minimize the hiring of temporary workers. There are no seasonal or other variations in headcount.

When hiring candidates, NOVATEK fully respects human rights and freedoms, labor laws, provisions of the collective bargaining agreement as well as the terms of the employment contract. The Company ensures non-discrimination and equal opportunities for all candidates.

NOVATEK strives to minimize forced exits, only resorting to dismissals when all possible prevention measures have been exhausted. When selecting among employees with equal productivity performance and qualifications, preference is given to retaining those who have worked for the Company for more than 10 years as well as single mothers and fathers raising children under 18.