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Competitive compensation and the career opportunities provided by the growing size of the Group coupled with active career management enable us to retain key people and attract new talents from the market.
Competitive compensation
Our job grading system is based on HAY methodology, in 2009 ca. 70% of MOL Group employees’ position (without INA) were graded according to HAY. It is designed to create a single, logical, transparent and consistent system which ensures the adequate treatment of our employees based on the nature of their work and their position within the company and provides the basis for a fair compensation system.
Compensation packages based on HAY grades and performance appraisals aim at the upper quarter of the local markets but take into consideration the financial resources and special needs/situation of local companies.
Ratios of corporate minimum wage compared to local minimum wage at significant operating locations in 2009 (%):
Our fringe benefit system – which amounts to 20-40% of one’s annual compensation package subject to national tax, health and pension requirements – ensures a flexible choice of social (e.g. health care services/payments, child and/or pension care, insurance, etc.) and other non-social (e.g. internet, meal or culture voucher, etc.) fringe benefits according to the needs of the employees.
We manage a performance-related compensation system. Employees receive an annual bonus (a so-called profit-sharing incentive) which is paid out once a year, while the managers’ compensation system consists of short and long term incentive elements (e.g. a bonus, a complex long term incentive linked to MOL’s stock price and company performance/results).
Career management
Career directions and promotions are given with a long-term perspective to support both business strategy and individual growth, but employee preferences and aspirations are also considered besides career history and job evaluation (using the elements of performance, leadership and professional competencies and retention risk).
In our Career Management System (CMS) ca. 1100 participants from 37 MOL Group companies were appraised till the end of 2009 out of whom we have sent more than 40 managers/experts to INA on expatriate assignments since the second half of the year...
Investing in education
The highest recognition of our long-term efforts to attract and retain talents is that MOL is considered as the second of the most desired companies in Hungary to work at, according to the “Most Desired Company 2009” survey run by AIESEC, the international association for students in economics studies (we were fourth in 2008).
Partnership with universities: In 2009 we renewed our three-year agreements of cooperation with strategic universities and we established TVK Faculties at The University of Miskolc and at The University of Debrecen, a MOL Chair at The University of Pannonia (MSc), and with our support an MSc Faculty was established at The University of Miskolc.
We continued our strategic partnership programs which cover internship programs, student community support with corporate lectures and refinery visits, competitions, MOL Group managers’ contributions to regular educational courses and educational programs with company managers and specialists, student projects on corporate issues, diploma assignments and consulting, scholarships, support given via foundations, sponsorship and research and development projects.
Partnership with secondary education: We maintain close and regular co-operation with secondary schools. We support more then 60 vocational schools (e.g. vocational schools for the chemical, gas and mechanical industries and schools for physically and mentally challenged people). In 2009 we offered internships to 332 students with a background in the fields of chemistry, gas and mechanical engineering subjects at MOL Group.
Secondary school students’ interests are targeted with site visits,, attend informal lectures and talks about future career possibilities within the oil and gas industry, and last but not least with support of natural science competitions.
Investment in education by the type of support provided:
Freshhh is an international English language on-line contest run by the MOL Group, which has continuously been exciting huge interest among student communities since 2007. It has boosted our “Employer Brand image”, generated many questions and queries from potential employees, and contributed to MOL Group’s image as an international company.
As a result of the contest, the best students were offered job or internship opportunities at our companies and a number of scholarship contracts have been signed with the most talented undergraduate students.
Freshhh participants:
Growww: MOL Group’s one-year new graduate program was run for the third time in 2009. Over the last three years more than 300 fresh graduates have been taken on, out of whom 93% remained with the Group (in Hungary, Slovakia, Italy and Pakistan) and we already have promoted a few of them to managerial positions.
In 2009 there were more than 1,500 applicants in Hungary, Slovakia and Italy and after the recruitment process a total of 77 fresh graduates were selected to join MOL Group in September.
The program is perceived by top management as having such a high value that even during the financial crisis we did not terminate the program but focused instead especially on students with engineering background.
In 2010 we plan to have the number of participants reach 250, including INA.
*including Gas and Power division which existed until 30.06.2009.
