| Retaining employees |
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Performance management
Our Performance Management System (PMS) comprises various elements at group and company levels, all of which focus on ensuring a link between MOL Group objectives, actions, plans and individual performance. The complexity of the system ensures that regular feedback on performance is used to define bonus payouts and salary increases, and also provide input to career-potential evaluation and therefore link current performance to long-term career growth.
To support the execution of MOL Group strategy, the enhancement of a merit-based corporate culture and equal opportunity in the form of an Employee Performance Management System (EPMS) – already operational in,TVK Plc, Slovnaft a.s and partly in MOL Plc. - was extended and fine-tuned in 2009 to all MOL Plc employees (increasing employee coverage from ca. 6,000 to ca. 9,000 employees) alongside the rules and values of managerial PMS.
From 2009 the pre-condition of payouts is the fulfillment of specified business results (defined as being a certain level of the targeted MOL Group’s EBIT).
Participants in managerial and employee PMS in MOL Group (in 2009):
Human capital development
Our business success is built on well-educated, professional and engaged employees. We provide a complex system of professional and leadership competency development in order to develop and retain MOL employees. These programs are aimed at bridging the gap between the current/assessed and desired competencies/skill level.
Employee competency development: The purpose of complex competency development is to have a workforce that is not only capable of solving problems independently but also capable of sharing their knowledge with others at an integrated and also on local level. It focuses on developing wider target groups, the involvement of managers and cross-organisational integration.
The development process starts with the measurement of the current competencies via Development Centers (DC). A total of 295 employees were appraised in 2008 and took part in development process in 2009 while a further 249 employees in R&M and Functional divisions were appraised through DC in 2009.
In E&P we focus on investing in young people in terms of managerial skills development in order to maintain the efficiency of our expanding activities from a business operations point of view. Therefore a ‘Young Talent Program’ has been developed and initiated involving subsidiaries in order to identify and check managerial potential in our employee pool.
In the R&M division, Refining organisation the complex program called ‘Navigátor’ was created to support leaders and experts – as focal points and facilitators of changes - in realizing the Refining Vision. The learning process is built on real situations deriving from MOL’s everyday operation and best-practices were designed for these training events.
In the R&M division, the Logistics organisation also shaped its development process (so-called ‘Dynamism’), based on common values and goals. The programs are harmonized at a group level, and competency development is designed globally but realized locally, according to local needs.
Petrochemical division’s Staféta program concentrates on shift leader development. During the “Basic” and “Advanced” programs (lasting 2 years) experts, engineers, plant leaders and mid-line managers are continually developed in order to achieve comprehensive employee and leadership competencies.
In the Lubricants segment sales people have been facing new challenges because of fierce competition on the market so the so-called ‘Titan’ program was designed to cover their development needs.
As the first step of our Spectrum program on functional areas, 40 employees were assessed at our Development Centres (DC). This step will be followed by internal training based on DC results, focusing especially on strategic thinking and project management.
Leadership development: The Leadership Competency Model has served as one of the bases for most of our HR systems (selection, development centers, career management, development processes) for 3 years. In 2009 the leadership competence-based training catalogue was completed, involving ca. 40 training events – focusing on personal, interpersonal and result-oriented aspects of leadership – and was available for all MOL Group subsidiaries.
The pilot of our competency-based training solution specifically designed for business unit leaders (“BUL Active Leader”) was delivered with the participation of MOL senior management members.
In 2009, as a follow-up to the Group Managerial Talent Program – a program in which participants receive formal business and leadership development training and steer group level projects - individual coaching guidance was offered to participants with great success. The coaches were internal senior managers who had previously taken part in an internal coach training program. The next Managerial Talent Program is planned for the period 2010/2011.
Professional competency training: Besides our continuing programs, started in previous years – ‘Jolly Joker’ in E&P and the ‘Refinery Complex Program’ in R&M - we launched a professional competency management pilot program within the E&P division using a leading oil-industry learning & development provider’s (Petroskills) know-how.
The competency maps created therein will form the basis of learning, development (focusing on technical, professional knowledge) and career planning. All pilot participants - 60 Exploration and Production professionals - made self-evaluations using tailored-to-MOL competency maps and this was followed by their supervisors’ cross-assessment. Based on the experiences of the pilot, a business case will be built regarding the possible roll-out options of the system (not only for E&P, but also for other areas).
Shift leader / front line leader training concepts were designed and implemented in the division in 2009 to strengthen formal and informal managerial skills (e.g. labour code, feedback methods and performance evaluation, etc).
The Process Industry Management System (PIMS) Academy is designed for those engineers and mathematicians who are interested in supply chain management. In 2009 the second course commenced with participants from different countries such as Croatia, Slovakia, Italy and Hungary. It is designed to create a common understanding about the optimisation software of the global refinery and marketing value chain.
Employee engagement
We conduct group level employee engagement survey to analyse the level of engagement and satisfaction of our employees biannually. Questions in the survey cover – among others - the work environment, employee recognition and compensation, the quality of work, effective operation, professional growth, direct/unit/top management, processes and responsibilities, stress levels; workload and the reputation of the company. We believe that there is direct correlation between greater engagement and a higher response rate - and the fact that after the first engagement survey in 2006 more than 260 targeted actions were identified and almost all of them were implemented before the next survey. Thanks to these targeted actions the response rate of the 2008 survey increased significantly and there was also improvement in the overall level of engagement (especially as regards the opinion about management, work conditions, professional growth and the reputation of the company).
Continuing good practice after the 2008-year survey, all of our divisions and departments set up detailed and long-term action plans (ca. 520) according to the fields with lowest engagement levels, and implemented most of them (more than 80%) during 2009, like:
- Award ceremonies for outstanding performance and loyalty for improving recognition;
- Information-sharing programs (monthly internal newsletters, regular regional meetings and workshops) for improving effective operations;
- Professional internal and external training for increasing professional growth;
- More attention is placed on HSE issues regarding the improvement of the work environment;
- Long-term competency assessment and organisational development.
