Human Capital

• 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 HSEHealth, Safety and Environment 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.

The one year-long UpstreamExploration and Production Segment. 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 UpstreamExploration and Production Segment. 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 UpstreamExploration and Production Segment. 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 DownstreamRefining and Marketing, Retail and Petrochemicals 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.

 

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Professional competency training

 

In 2011 we continued our technical competency management pilot programme within the UpstreamExploration and Production Segment. 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 UpstreamExploration and Production Segment. 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 UpstreamExploration and Production Segment. organisations. In 2011 we started setting up group level in-house training schemes based on the previously identified requirements (UpstreamExploration and Production Segment. Business Academy). 12 in-house training events were organised (with 177 participants attending) for the UpstreamExploration and Production Segment. 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 HSEHealth, Safety and Environment organisations and we are planning to extend the programme to other professionals in Refinery and HSEHealth, Safety and Environment. 

 

Additional development programmes continued to run in 2011. For example, the UpstreamExploration and Production Segment. 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 DownstreamRefining and Marketing, Retail and Petrochemicals, 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.

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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.