Integrated Annual Report of LOTOS Capital Group 2016

Career at the LOTOS Group

[G4-LA9]

At the LOTOS Group, we have always viewed internal recruitment as a priority. This approach allows us to best harness our personnel skills to achieve the organization's objectives, and to offer our personnel the development opportunities within the LOTOS Group structures. Talent development, considered to be of key importance to building competitive advantage, has been included in the set of our strategic objectives for 2017−2022.

In 2016, we launched the Internal recruitment at the LOTOS Group tab on the home page of Lotostrada website (designed for the LOTOS Group's personnel), in response to the feedback received from employees, who reported recruitment difficulties caused by problems with finding available job offers.

The Internal recruitment tab at the LOTOS Group was developed to: 

  • emphasise once again the importance we attach to internal recruitment,
  • facilitate access to information on new job openings for those interested,
  • ensure confidentiality of the recruitment process, from filing the application to acceptance of a candidate by the future superior, 
  • promote the Internal Recruitment Standards at the LOTOS Group, developed in 2016. 

Internal Recruitment Standards at the LOTOS Group are a set of key principles applied to the internal recruitment processes. They provide guidance on issues which so far have raised concerns among personnel and their managers, and should be followed by all persons involved in any recruitment process.

Internal Recruitment Standards at the LOTOS Group
 
  1. We guarantee discretion at every stage of the recruitment and selection process.
  2. In each internal recruitment process we indicate the recruiter, who can be contacted personally, by email and by phone.
  3. Any employee of the LOTOS Group employed under an employment contract can be an internal candidate.
  4. Each recruitment process is announced on the Lotostrada website in the form of an internal recruitment announcement.
  5. Internal applications may only be submitted using the APPLY button in an announcement.
  6. We contact each candidate by phone, in order to find out the reasons behind their application, answer their questions, and provide information on further steps in the process.
  7. Each internal application is handed over to the recruiting manager, whose duty is to evaluate such application.
  8. Each candidate receives feedback, and the selected candidates are invited to recruitment meetings.
  9. A decision on the type and terms and conditions of the employment contract offered to a given employee is made on a case-by-case basis by head of the organisational unit to which such employee is recruited, upon prior consultation with the recruiter, and taking into account the candidate's situation and competences.
  10. Internal transfer requires consent from the employee's line manager; the line manager is notified of the employee's participation in the recruitment process and their acceptance for a new position by the candidate and/or the recruiter. The notification path is always agreed on with the candidate.
  11. Candidates' credentials are checked only with their knowledge and consent, through the recruiter.
  12. If a candidate from another company is to be recruited, a relevant decision is notified to the HR coordinator, with whom we then agree on further procedure.
  13. An employee should be reassigned to the new position within maximum three months.
  14. We launch a recruitment process to replace the departing employee (starting with internal recruitment), if required.

Another solution recently implemented by the LOTOS Group's HR department is the provision a recruiting manager with all applications submitted by internal candidates, including those who do not meet all formal requirements. This increases their chances of employment in the area where they would like to develop further their careers.

In the event of a potential conflict of interests between the line manager and employee, related to internal promotion, the HR department engages in talks with such line manager. 

The LOTOS Group is a member of the Coalition for Friendly Recruitment , established in 2013.

[G4-LA11]

PEES, or why we assess our employees

PEES, that is Periodic Employee Evaluation System, is an employee assessment model shared across the LOTOS Group.

Facts and Figures about Periodic Employee Evaluation System at the LOTOS Group in 2016
  • The professional and development objectives set forth for the LOTOS Group personnel were met with above the average results.
  • In 2016, PEES reviews at the LOTOS Group covered 97.32% of eligible personnel , i.e. 88.32% of the total workforce. In 2015, 97% of eligible employees received a positive periodic evaluation. 
  • Women and men accounted for, respectively, 21.47% and 75.86% of eligible personnel covered by PEES reviews in 2016, representing, respectively, 19.48% and 68.84% of all women and men employed at the LOTOS Group. The lower proportion of women reflects the employment structure at the LOTOS Group: most of our employees are men.
Benefits of using PEES at the LOTOS Group:
 
  • periodic evaluation is an opportunity for the employees and their superiors to discuss their last year's performance , to set professional and development objectives , talk about mutual expectations and needs,
  • employees working in similar positions are evaluated in a similar and objective manner, based on known criteria, 
  • evaluation results are taken into account when making decisions on offering training, studies, or foreign language courses to employees, 
  • evaluation results are also taken into consideration when making decisions regarding employee promotion, pay rise, division of duties, or recruitment. 
  • each company reviews the results individually, to quickly obtain such information as names of the best performers, or to identify competencies which are at the highest level of development and those which need to be worked on.

Periodic evaluation formally commences on 1 July and lasts until the end of August. In the areas which have a more complex organizational structure or which are involved in time-consuming projects, the assessment process may begin earlier. In 2016, we implemented the new PEES at LOTOS Kolej and LOTOS-Air BP, where − due to the specific nature of those companies' business – the 2016 evaluation process started already in June.

To prepare well for the assessment both those who perform the assessment and those who are subject to the assessment can read PEES textbooks and checklists with things to remember when getting ready for the meeting.

Facts and Figures about training and development at the LOTOS Group in 2016

  • 1,250employees

    number of employees from across the lotos group who were trained under the lotos academy programme in 2016

  • 4,888headcount

    LOTOS Group's total headcount in 2016, including 1,119 women and 3,769 men

  • 24.5hours

    average number of training hours per female employee at the lotos group in 2016

  • 23.1hours

    average number of training hours per male employee at the lotos group in 2016

  • 23.5hours

    average number of training hours per employee in 2016

  • 2hours

    an increase in the number of training hours per employee compared to 2015

  • 2.5hours

    an increase in the number of training hours received by technical, administrative, office and operations personnel compared to 2015, from 21 hours per employee in 2015 to 23.5 hours per employee in 2016

  • 10.7hours

    an increase in the number of training hours received by top management personnel, from 25.8 hours in 2015 to 36.5 hours in 2016

LOTOS Academy

In response to changes within the organization and its business environment, in 2014 we prepared and implemented our proprietary training and development programme called LOTOS Academy, which we continue to develop.

The primary objectives of the programme are to: 
  • develop talent, 
  • build strong workplace relationships and embrace employees as our most valuable asset, 
  • promote a culture of knowledge sharing,
  • build the LOTOS GROUP as an organization opened to innovation, efficient and competitive.

At LOTOS Academy we design and implement talent development programmes for the various employee groups. These include Leader of the Future Programme, Master Programme, Managers Academy, Management Skills Development Programme for Technical Personnel, and LOTOS Group Succession Programme.

LOTOS Academy training schedule − all personnel training

Every year from October to December we hold an intensive training programme for all personnel Autumn Training.

The LOTOS Academy training topics are selected based on:

  • Needs assessment carried out as part of the periodic employee evaluation exercise (PEES),
  • Development plans for personnel in each organizational unit, 
  • The organisation's business needs.
Second edition of the Master Programme

Within the framework of the Master Programme, we provide training to candidates for refinery foremen. The second edition of the programme was held in 2016. Thirty-two (32) people qualified to participate in the training programme based on the results of a Development Centre session. The purpose of the project is to develop soft skills in prospective foremen, including interpersonal communication, assertiveness, cooperation and motivation. The training and development team provided the trainees ' managers with regular post-training reports and coordinated the transfer of knowledge acquired during training by relaying tasks to be completed in the workplace environment. In the fourth quarter of 2016, we monitored the practical application of the acquired knowledge and improvement in trainees’ competencies achieved when performing their day-to-day tasks.

E-learning sessions for the personnel

We provided access to an online English learning platform for learners at all levels of advancement. The e-learning course covered both general and business English, with the platform's functionality designed to help improve the various language skills: listening comprehension, reading, writing and speaking.

We promoted and monitored the conduct of the mandatory 'Conflicts of interest' e-learning course for new hires, which promotes knowledge of the LOTOS Group Ethical Conduct Programme among management and other personnel. 

We have developed and are ready to implement a new e-learning course entitled 'Preventing Workplace Harassment'. The e- learning materials present examples from a fictitious company in the context of harassment prevention. A training video provides trainees with the definition of workplace harassment, conditions for classifying a behaviour as harassment, the types of workplace harassment and its legal and social consequences, it helps to identify violent workplace behaviours and underscores the role of the group in preventing harassment.

Management training seminars

Management training seminars are cyclical two-hour meetings with inspiring people of business, science and culture. Change management was the preferred topic in 2016. We designed, among other things, a seminar called 'Do Not Be Afraid of Change, It Is Your Chance for Success' and invited journalists Dorota Wellman and Marcin Prokop as guest speakers. They shared proven management techniques in cooperation, interpersonal relations, change and team diversity management. 

Training for new EFRA plant operators

Given the ongoing refinery expansion and EFRA Project, in 2016 we devoted an unprecedented amount of time to train operations personnel in handling new process units. Getting operators ready to work with the new plant and equipment required a great deal of commitment from internal trainers and experts from across the LOTOS Group. We held four 12-day training sessions for plant operators, concluded with a written examination and the award of course completion certificates. 97 plant operators were trained in 33 key areas of refinery technology and equipment by 26 trainers. 

In 2016, we introduced electronic data sheets to facilitate the process of onboarding new hires at the LOTOS Group. The data sheets provide guidance to counsels and supervisors responsible for implementing the personnel induction programme. They are a step-by- step guide to introducing new personnel to their work environment and preparing them for the job. The data sheets can be edited during the entire induction programme term by counsels, foremen and trainers, enabling them to evaluate newly hired personnel based on their skills, knowledge, productivity and commitment, which is expected to make contract renewal decisions easier and more objective.

Creativity for engineers, or TRIZ method training

In 2016, we ran a two-day training course for engineers in TRIZ methodology, a concept developed by engineers that applies standard processes, patents and patterns to problem solving. It allows engineers to 'free their mind' and find the simplest solutions to technical and technological problems encountered at work on a daily basis. The TRIZ approach is to reapply solutions invented in other fields by people who faced similar problems. The training resulted in weekly TRIZ meetings at the Production Engineering Office

DISC − a communication course for LOTOS Kolej management personnel

DISC is an acronym that stands for Dominating, Interactive, Steady and Cautious, the four personality styles that all people possess to at various levels. DISC-compliant communication management is based on recognising the personality traits that dominate in a person and adapting communication and tasks assigned to that person. According to the principles of the DISC model, a personal approach is key to effective communication.

Even before the training started, we made sure that the model was incorporated into communication across the LOTOS Group, holding one-to-one consultations with managers to identify their preferred behaviour and communication styles. This made initial training sessions easier as trainees could focus on recognising and accepting the differences in individual communication styles, which are key skills to be acquired by people who want to apply the DISC model in communication management.

‘Good Start for Beginners’ programme 

The LOTOS Group provides professional and organisational support to new employees, as well as trainees and interns.

In 2016, we held seven training sessions for new hires. The consultation meetings and training sessions were attended by 123 new employees of the LOTOS Group.

The programme includes a one-day induction training, during which employees with longer length of service share their knowledge on the LOTOS Group. New hires are provided with employment-related information, learn the rules and regulations, as well as the corporate culture, get to know the systems and basics of crude oil processing and of the refining operations during an on-site visit. They also learn the corporate values and receive a copy of the Code of Ethics from their line managers.

‘High-quality Internships and Work Placements’ certificate

Our ‘Good Start for Beginners’ onboarding scheme was included in the ‘Polish Quality Framework for Internships and Work Placements’ programme and awarded the ‘High-quality Internships and Work Placements’ certificate by the expert of auditors team of the Polish Human Resources Management Association.

The summer internships and work placements at the LOTOS Group provide young people with development opportunities and a chance to gain experience in such areas as technology, mechanics, electricity and power generation, as well as communication, marketing, accounting, finance, controlling, and HR. Students are given an opportunity to perform interesting tasks related to the Company's actual business needs.

In 2016, we extended the internships and work placements programme with a new module – special training in personal branding, including workshops. The training is intended to familiarise the interns and trainees with the LOTOS Group’s image as an employer, outline the rules and values applicable at the LOTOS Group and facilitate the first steps at the new workplace. The workshops enable the participants to establish new relations and help them build their position in the labour market by explaining the concept and techniques of personal branding.

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