Human Capital

HIGHLIGHTS

  • MOL is the 2nd most attractive workplace in Hungary
  • Successful talent attraction and development programs
  • Equal opportunity action plan implemented in MOL Plc.

'LOWLIGHTS'

  • PMS in INA will be implemented later

mol.hu/social

Attracting Employees

 
Competitive compensation and the career opportunities provided by the expansion of the MOL Group, coupled with a prosperous relationship with secondary and higher education institutes and active career management, have enabled us to retain key employees and constantly attract new talent.

Competitive compensation

Our job grading system is based on the HAY Methodology. By extending the system to our subsidiary companies in 2010, about 88.6 percent of MOL Group (without INA) employee positions were graded. HAY enables the company to create a single, logical, transparent and consistent system that ensures the adequate treatment of our employees based on the nature of their work and their position within the company. Moreover, the results of the grading process provide the basis for a fair compensation system. 
We follow a ‘dragging’ compensation policy; that is our compensation packages – based on HAY grades and performance appraisals – are designed to exceed the average of the local average wages of our sector, but they also take into consideration the financial resources and special needs/situation of local companies. 

 
The compensation system is dependent upon performance. Taking their annual performance into consideration, employees receive an annual bonus. The managerial compensation system consists of short and long-term incentive elements such as bonuses, a complex long-term incentive linked to MOL’s stock price, and the company’s performance/results. See more information here.
Our fringe benefit system differs by country but amounts to 10-40 percent of the annual compensation package. It is subject to national tax, health and pension deductions. The system 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, etc.) fringe benefits according to individual needs. For more information click here.

Investing in education

Related objective: “Expand strategic cooperation with key educational institutes in all regions / operating countries”

MOL was recognised in 2011 as being the second most desirable company to work for in Hungary according to the ‘Most Desired Company 2011’ survey conducted among university students by AIESEC, an international association for students of economics studies. According to the results of a survey carried out by AON-Hewitt and Figyelő, MOL was the second most desirable company to work for in 2011 and the top one in the financial sector. These results are the highest recognition of our long-term efforts to attract and retain talent.

Partnerships with secondary schools
 
MOL has been maintaining close and regular cooperation with secondary schools. A lack of natural science experts has been observed at the global level as well as on the local market. Special attention has therefore been paid to promoting natural science studies among secondary schools to build a longer term “supply” for our talent pipeline.
In 2011, we still supported 80 vocational schools and offered internships to more than 500 students at MOL Group – primarily for those attending chemical, gas industrial and mechanical courses. Furthermore, MOL sponsored numerous competitions in mathematics, physics and chemistry; we cooperated with vocational organisations operating in the field of chemistry, mathematics and physics, and with domestic organisations of talented students and science teachers.
 
 
UNIVERSITY PARTNERSHIPS
 
We would like to gain maximum advantage from our university relations in order to support MOL’s long term interests through influencing the quality of MOL-specific education and the interests of the next generation.
We work in strategic partnership with eight Hungarian universities – The University of Pannonia, Eötvös Loránd University, The Budapest University of Technology and Economics, Corvinus University of Budapest, The University of Szeged, The University of Miskolc, The University of Debrecen, and the College of Kecskemét.
The long-term cooperation activities cover internship programmes, support for student communities, support through corporate lectures and site visits, competitions, MOL Group managers’ contributions to regular educational courses and education programmes with company managers and specialists, student projects about corporate issues, thesis assignments and consulting and scholarships and support given via foundations and sponsorships.
 
The number of participating students on the masters program developed by MOL & The Pannon University is constantly increasing. Following the 9 students who won admission in 2010, 14 students started their MSc studies in 2011, out of which 9 are from Slovakia.
The MOL-focused oil and gas engineering MSc Faculty at the University of Miskolc has been successfully running with MOL employees attending as presenters and lecturers. The number of students at the faculty has tripled in the last three years.
FRESHHH - MOL GROUP'S INTERNATIONAL CONTEST
The fifth, jubilee Freshhh international contest was organised in the spring of 2011. More than 2500 students registered for the contest. Ultimately, 596 3-strong teams were formed from 62 countries and 200 Universities. Freshhh is a great and unique tool that MOL uses to find those talented youngsters who are eager to work in the industry. This is proved by more than 60 employees who have joined us since 2007 after being finalists in the competition.
 
The contest began with an online round which dealt with the technological and strategic issues of the oil and gas industry. In the second ‘creative’ round, the teams had to consider current topics (e.g. the long term effects of the Fukushima catastrophe on the energy sector, and MOL’s role/opportunities from this) in an essay.
 
The 10 best teams participated in the finals in Budapest where they presented their proposed solutions to the top management of MOL and had to complete challenging professional assignments.
 
The number of participants has doubled in the past five years. In 2011 five times more countries were represented than on the first occasion of the competition.
 
 
Click here to read a relevant article from the MOL Scientific Magazine
 
GROWWW - OUR FRESH GRADUATE PROGRAMME
 
MOL Group’s Growww Programme offers one year-long jobs to fresh graduates. In 2011, similarly to previous years, about 300 new positions were advertised group-wide. More than 20000 applications were received from 7500 candidates (candidates were allowed to apply for multiple positions). 279 positions were filled by applicants from 7 countries (Croatia, Hungary, Iraq, Italy, Romania, Russia and Slovakia).
Our main target groups are students with degrees in engineering or geosciences. In 2011 they made up more than 2/3 of the employees hired. However, we advertise jobs for economists and other fresh graduates as well. For the second consecutive year, more than 2/3 of the fresh graduates were hired outside of Hungary from other MOL Group countries.
 

Retaining and Motivating Employees

Related objective: “achieve and maintain an employee engagement rate of over 70%”

Performance management

The Employee Performance Management System (EPMS) links corporate objectives to individual contributions and individual performance to compensation and long term career growth. It is thus capable of stimulating the required competency development of employees.
MOL’s Employee Performance Management System (EPMS), which is already operating in TVK Plc., Slovnaft a.s. and MOL Plc. was extended and fine-tuned to incorporate the rules and values of the managerial Performance Management System (PMS). By 2012, we will have implemented the EPMS system in MOL-LUB Ltd. Petrolszolg Ltd. and SMAO with IT support and extended the EPMS process to other subsidiaries without IT support.
 
From 2009, the pre-condition which sets the size of employee bonuses has been the fulfilment of specified business results (defined as being a certain level of the targeted MOL Group’s EBIT-in 2010 and EBITDA in 2011).
 
Click here to read a relevant article from the MOL Scientific Magazine.
 
Career management
 
The objective of the Career Management System (CMS) is to identify and support accurate planning for successions and organisational/employee development based on the requirements set by the business strategy.
 
To date, 1,300 participants from 37 MOL Group companies have been appraised under the CMS system, including about 80 INA managers/experts. Further involvement of local INA managers is planned for 2012.
 
Employee engagement
 
We conduct a Group level employee engagement survey bi-annually to measure the engagement and satisfaction levels of our employees; the next survey is due in 2012. After each survey, all units have to identify the activities needed for addressing areas of weakness. In 2011 the focus was on the implementation of these activities. Examples include:
  • 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 events which support professional growth;
  • More attention is being placed on HSE issues regarding the improvement of the work environment;
  • Long-term competency assessment and organizational development. 

Career Awards

MOL Group rewards those employees who have supported MOL Group’s targets and interests throughout their careers and professional activities for decades. In all major Hungarian companies (MOL, TVK, Petrolszolg, MOL-LUB, FGSZ) and at Slovnaft lifelong career awards are handed out each year to employees (who are nominated by local managers) who have performed outstandingly (during at least 25 years of MOL Group employment) in their value creating professional activities. Blue and white collar employees, managers, and co-workers can all be found among the recognised employees. The awards are handed over at a formal ceremony, attended by top management.

Development of Human capital

Our business success is built upon well-educated, professional and engaged employees. Therefore, we provide a complex system of professional and leadership competency development.

 
Complex Development Programs in 2011
 
UPSTREAM
 
The one year-long Upstream Talent Programme 1 (UTP 1) was aimed at identifying and assessing those employees that can be successfully prepared for leadership and expert leadership tasks. The mission of the Upstream Talent Programme 2 (UTP 2) was to discover those employees that are capable of performing outstandingly in an intercultural environment in the case of acquisitions. The extension of the UTP, the International Talent Program (ITP), is being implemented in 2011-2012 with Hungarian, Croatian, Russian and Pakistani participants. The main topics will cover project management, cultural awareness and highly professional use of English.
 
 
Moreover, almost 120 key professionals and project managers from the Upstream division were reached through a series of workshops at a Group level. In addition to this, professional days were held at several sites. In 2012 a junior education program will be launched for manual/plant workers.
 
DOWNSTREAM
 
In Refining MOL, we continued our Navigátor Development Programme, which was initiated in 2009. In 2011 with the participation of 30 employees we focused on new target groups. For those who have already participated in the programme special training days were organised to keep their knowledge up-to-date. The improvement of the groups which participated in training was measured using a competency assessment in 2012.
 
In Slovnaft Refinery, due to its success, the Master Academy was continued in 2011 with 4 new groups of employees.
Another Downstream training scheme is the Logistics’ Dynamism Programme, which is based on common values and goals. Competency development is designed globally but conducted locally according to local needs. In 2011, the program focused on the managerial succession pool and on 71 employees who recently joined MOL. The success of this programme will be measured using a competency assessment in 2012.
 
The Commercial Department continued its Leadership Reinforcement Programme which aims to develop talent and develop leadership competencies. In 2011 the programme continued within the framework of expanding the managerial succession pool to MOL-LUB employees.
 
In Retail, based on the success of previous years, we continued our Retail Business Academy in 2011. It was advertised to current petrol station operators with the aim of contributing to their careers by continuously supporting them in managing a Hungarian petrol station. The candidates (selected through a multi-stage selection process) started to manage the petrol stations in September 2011 after a month of professional training.
 
Following the success of the Staféta Programme, the Petrochemicals division started the one year development of 12 future shift leaders in 2011. The Basic and Advanced Programmes (lasting 2 years) developed experts, engineers, plant leaders and mid-line managers in order to achieve a wide set of employee and leadership competencies, foster cross-unit cooperation and share knowledge with the 21 participants.
 
With regards to Functional units, the competency development programme continued in 2011 for employees in MOL Plc.’s IT Department. The IT Development Programme, a continuation and completion phase of the previously organised Development Centre, both ensures a way for the company to increase its competitiveness and also motivate employees to plan their career paths. The programme focuses mainly on strengthening competencies employees will need in the near future, and thus results in better individual and overall performance. Several learning methodologies were integrated into the IT Development Programme, including training, mentoring, workshops, learning groups, rotation and on-the-job development.
 
For more information please click here.
 
Professional competency training
 
In 2011 we continued our technical competency management pilot programme within the Upstream division using PetroSkills, a leading oil industry alliance’s learning and development package. The results of the competency gap analysis are being utilised as a basis for the Upstream professional training planning process. By the end of 2011 the system was launched for the earth science, technical and business professionals of MOL's and INA’s Upstream organisations. In 2011 we started setting up group level in-house training schemes based on the previously identified requirements (Upstream Business Academy). 12 in-house training events were organised (with 177 participants attending) for the Upstream division (4 of these using cooperation between MOL and INA). Groups responsible for designing content were set up and planning of our long-term operating model started and will continue in 2012.
A similar pilot project was launched for our Refinery and HSE organisations and we are planning to extend the programme to other professionals in Refinery and HSE
 
Additional development programmes continued to run in 2011. For example, the Upstream Jolly Joker Programme successfully improves the maintenance skills of operators and supports them in everyday maintenance-related tasks. The training not only increases the value of human capital, but also helps to reduce maintenance costs. 
 
At Downstream, MOL extended the Refinery Complex Programme. This special education project focuses primarily on blue collar workers in order to keep their knowledge regarding technological, maintenance and safety issues up-to-date. During the course of the project a professional competency system was drawn up. The long-term goal is to define both the general and professional competencies which need to be developed, and to match educational material to the scope of specific work competencies. The Refinery Complex Programme will cover all blue collar workers (shift leaders, controllers and system operators) in each and every facility. The programme continued in 2011, but needs to be enhanced to include a revision of professional skill development material for shift workers at Refineries in Hungary and Slovakia, and competency development for shift leaders.
 
Knowledge Management
 
To continually improve the culture of knowledge sharing is highly important to MOL Group. In 2009 the dedicated unit responsible for knowledge management (KM) was reorganized in order to focus more on supporting internal knowledge transfer and the holistic execution of the KM development concept. In 2011, a new corporate intranet KM portal was launched which includes a Training Site with a continuously growing quantity of e-learning materials and a collection of useful tools and the internal newsletters of MOL Group, plus other materials. A scorecard was also developed to track knowledge the sharing maturity of different units.
 
The Business Education Program also continued: in 2010/2011 250 fresh graduates took part (in 3 locations -Budapest, Zagreb, and Mantova) in our Business Education Program. The aim of the events is to make young professionals familiar with the operations and activities of MOL Group. Throughout the program, business and functional organisations provided a complex picture of the company (using technical data, financial and legal knowledge and through providing insight into core activities) and shared corporate and local best practices. The program was complemented by site visits to the Danube Refinery at Százhalombatta, the lubricant manufacturing site at Komárom, the gas site at Algyő, and the Petrochemicals site at Tiszaújváros and Bratislava. Participants not only listened to lectures but in groups of 3 they had to hold a presentation on a given topic. At the end of the program the best performers received a diploma and further training. In 2011 almost 60 % of the participants received a diploma and those teams which delivered the best 4 presentations received further training (15 people). This program will also continue in 2012 but be extended to the Bratislava location and include 250 newly-hired graduates.
 

Commitment to Fair Employment

 
Related objective: “Enhance responsible employer practices to ensure the engagement and diversity of the workforce”

As Hungary has ratified the UN Universal Declaration of Human Rights, the ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy and the OECD Guidelines for Multinational Enterprises, MOL Group considers these agreements to be compulsory company codes.

Employee relations

The right to exercise freedom of association and collective bargaining is considered to be a crucial aspect:
Employee representation is ensured via employee representative bodies:
  • The European Works Council (all MOL’s companies in the EU are represented proportionately - this keeps our staff constantly informed about decisions taken in different countries and about international practice and experience),
  • Local Works Councils,
  • Trade Unions,
  • Labour safety Committees, and
  • Participation of employee representatives in the MOL, Slovnaft, INA, TVK, FGSZ Supervisory Board (Although MOL Supervisory Board members are elected at the Annual General Meeting of shareholders, employee representatives (comprising one-third of the members) are elected by the MOL Works Council).
Collective bargaining is traditionally initiated by the employer at periodic intervals. Beyond legal requirements, not only representative trade unions but all employee representative bodies are invited to the bargaining process. Before significant operational changes, trade unions and Work Councils are informed in compliance with national legislation and also according to the Collective Agreements of certain member companies.

For more information please click here.

Equal opportunity and diversity

We ensure equal opportunities to all current and future employees. In fact, MOL goes beyond national regulations: equal treatment for all is guaranteed through collective agreements, our Code of Ethics, Trade Union agreements, Group-wide guidelines and internal regulations.

In accordance with our previous plans and the results of the equal opportunities survey, MOL managers and employee representative bodies signed the Equal Opportunity Plan (EOP) of MOL Plc which is valid for the period 2010-2012. The plan covers all the employees of MOL Plc., and pays special attention to the rights of women, single parents, parents with two or more children under ten years of age, those persons with any kind of disability and employees who are over 50 years of age or those who belong to a national or ethnic minority. The main purpose of the plan is to improve the situation of the above-mentioned groups.
 
In 2010 an Equal Opportunity Board was also established and an equal opportunity officer was nominated. According to the Equal Opportunity Plan employees can submit complaints if the employment-related principles of equal treatment are violated. Our aim is to extend the Equal Opportunity Plan to all of our Hungarian subsidiaries. For this reason we compiled a handbook to promote the preparation and implementation of our own equal opportunity plan. The preparation of TVK Plc.’s Equal Opportunity Plan started in 2011 and is expected to be approved in 2012.
 
Activities MOL undertakes to improve the situation of disabled employees and employees with reduced working capacity deserve special attention. In 2011 a survey was carried out regarding the employment of these employee groups at the larger MOL Group companies. Based on the survey we found that, although in the European Union legislation clearly supports equal opportunities and employment of the above mentioned groups, this matter needs to be handled differently by different companies according to their own country-specific regulations. Thus EU legislation-based central Group guidelines should be considered by MOL’s subsidiaries but they need to be coupled with understanding of local conditions and opportunities in order to achieve the most effective results.
 
At the larger Mol Group companies (to varying degrees) we employ disabled people and people with reduced working capacity. Besides this, we pay attention to the special situation of these employee groups. According to their health status they are provided with safe equipment, a safe work environment and working conditions. Thanks to the favourable conditions ensured by local regulations at Slovnaft we purchase products (such as clothes) from companies which employ disabled people, thus improving the conditions of employment of this target group. It is recorded in the collective agreement of MOL Plc. and Petrolszolg Ltd. that once a year MOL’s employees with reduced working capacity receive a health insurance assistance contribution that equals the prevailing national monthly minimum wage. With this financial assistance we contribute to higher medical costs and ensuring the health of these employees. Besides this, rehabilitation committees operate at MOL Plc., TVK Plc. and Petrolszolg Ltd. in order to rehabilitate employees whose work capacity has been reduced during their period of employment meaning that they have become unable to perform their jobs. It is the Committee’s task to investigate where, how and with what conditions would further employment be possible.
 
Further steps have been made to improve the situation of pregnant women and new mothers. Our aim is to keep them connected to the company and ensure they consciously prepare to return to work after maternity leave. In order to promote this goal we launched a newsletter for new mothers. In this monthly electronic publication we let them know about the latest news (personnel, organisational changes, operations related information, information regarding employees, internal job advertisements and the STEP health preservation corporate programmes) from the Group. Besides this, new mothers are invited to bigger corporate events (the MOL summer party, family days, the annual Christmas concert), where activities are also organised for families with small children. Depending on the job, the needs and interests of new mothers and the specific company we offer reduced working hours and make telework available for those who return to work.
 
In 2011 we continued to support the ‘Romaster’ talent program launched by the Hungarian Business Leaders Forum (HBLF) in 2007. The aim of the program is to provide help for talented Roma high school students to obtain college/university degrees and later enter the labour market. In 2011 Mol Plc. supported 3 young Roma people. One of the people supported in previous years was hired at TVK Plc. as a fresh graduate in 2011.
 
In 2011 Mol Plc. signed up to the ‘HBLF for diversity’ code founded by HBLF. We believe that an open business environment that promotes equal opportunities can bring out the best in our employees and for this reason the development and maintenance of this environment is a prerequisite for the success of our companies and for society.
 
Work-life balance
 
Although there is not presently a Group level set of policies which addresses work-life balance, in 2011 MOL took initial steps towards the encouragement of non-typical employment. We carried out a survey to measure which jobs are suitable for atypical employment. Part-time work and telecommuting are not an option for those involved in production activities because of the type and timing of work (e.g. the need for shift-work); however, they are accessible to other employees in certain positions. Building on the results of the survey, our aim is to extend the number of employees who participate in atypical employment, focusing on certain target groups (employees with small children or large families or people with reduced working capacity) identified in the MOL Equal Opportunity Plan.
 
The number of telecommuters at MOL Plc. was not very high in 2011, but the number of those who have gained managerial approval to work from home is much higher.
 

 

 
© MOL Group | Disclaimer | Contact us