As one of the country’s largest employers, the Company adheres to a social orientation that is based on the principles of partnerships with workers and trade unions.
The Company aims at:
• promoting productive employment;
• ensuring decent work and working conditions;
• compliance with labor and human rights;
• honest business conduct and rejection of corruption;
• assistance to the development of society and regions of presence.
The basis of KMG’s personnel management system is KMG’s personnel policy for 2017–2021 (hereinafter referred to as the “Personnel Policy of KMG”).
It defines the main approaches, principles, requirements and directions for the development of the human resource management function in the KMG Group of companies until 2021.
The concept of personnel policy is aimed at creating conditions for increasing the value of human capital in the KMG Group.
Personnel by categories over the reporting period, %
Achieving this strategic objective is based on the three main objectives of the HR function:
1) Creation of a single HR function and a single model of personnel management for the entire KMG Group.
2) Continuous improvement and increased openness of the personnel management function.
3) Corporate culture development and leadership skills.
Each goal includes a list of specific tasks, which are key areas of personnel policy.
The total actual number of employees at the end of the reporting period in 2018 amounted to 78,933 people for the KMG Group of companies, and outstaffing 3,347 people.
The number of employees was optimized due to a moratorium on hiring, retirement of employees, natural turnover, and the withdrawal of non-core activities.
At the same time, the share of production personnel in the total number of personnel is 91 %, administrative and management personnel – 9 % (in 2017, 89 % and 11 %, respectively). Considering that the direction of a company’s activity is associated with difficult, dangerous and harmful working conditions, the proportion of men is 81.2 %, women 18.8 %.
Employee turnover rate* by Group of companies KMG was in average 14 % (14 % in 2017, 13.8 % in 2016, 11.1 % in 2015).
KMG provides employees with a guaranteed social package which includes various types of social benefits and compensations:
• material assistance for health improvement to annual leave
• payments related to pregnancy and childbirth
• monthly payments to employees absent on leave for childcare till 1.5 years
• compensation for termination of employment contract in case of impossibility to transfer to another job
• due to full loss of ability to work
• disability, one-time payment in case death of employee for organizations of funeral
• one-time payment to family of employee, who died in the result of an accident at work.
• The Company also provides social guarantees for voluntary medical insurance in case of illness and organization of rest for children of employees in children’s health camps in Kazakhstan.
* Employee turnover rate = A / B x 100%, where A is the number of employees with whom employment was terminated due to their own initiative, by agreement of the parties and through the fault of the employee at the end of the reporting period; B – the average number for the period.
Moreover, employees are provided with historically formed types of social support. These types of social assistance are specified in collective agreements or provided in internal regulatory documents of the enterprise. Such payments include payments in connection with achievement of anniversary date, in connection with the marriage, shortterm leave at the time of marriage, in connection with the birth of a child, due to death of relatives with the preservation of wages, for treatment and payment of medical operations, in the case, if the cost of treatment exceeds limit, established by the insurance program, to disabled workers, disabled children, and many others.
Employees on maternity/paternity leave for the accounting period and by years
The number of employees on leave for child care without preservation of salary pay at the end of the accounting period was 1,517 people (in 2017 – 1,697 people), with share of women 97 %, and 3 % of men. Women, who are on maternity leave, are 436 (856 women in 2017).
The collective agreement does not provide for a period for notifying employees on changes in operating activities, this issue is regulated in accordance with the Labor Code. If the working conditions are changed, the Company shall notify the employee in writing not later than fifteen calendar days. Minimum notification period towards significant changes in the company’s activities is 4 weeks.
Employees on maternity/paternity leave for the reporting period, %
The Company recognizes the undeniable importance of providing equal rights to everyone. The Company strictly honours the fundamental human rights.
The Company does not use child labor, forced labor, recognizes the equal rights of all employees, regardless of their race, religion or gender.
Every employee of the Company has equal opportunities in implementation of its rights and freedoms in the area of work. Moreover, the company actively participates in negotiations with employees on concluding, amending and supplementing the collective agreement, strictly observes terms of the negotiations and ensures the work of the relevant joint commissions, provides the information, necessary for the negotiations, strictly complies with the terms of the collective agreement.
According to the labour legislation, every employee is entitled to participate in collective bargaining and drafting of collective agreement through their representatives, as well as familiarize themselves with the signed collective agreement.
There are no restrictions on the right of freedom of association and collective bargaining by types of activity or territorial character in the company’s activities. We, as a socially responsible company, fully support this right and create a favourable environment for implementation of workers’ right to freedom in association.
In 2018, the number of employees of the KMG Group of companies covered by collective agreements was the same as in 2017 – 58,838 people, in 2016 – 58,658 people, in 2015 – 54,197 people.
The Company’s interaction with trade unions is carried out within the framework of the social partnership, established by the labour legislation at the sectoral and regional levels. At the sectoral level, the main parameters of interaction (social guarantees, issues of labour organization, principles of wages, employment, gender and youth policy, safety and labour protection, prevention and resolution of labour conflicts, etc.) are defined in the Sectoral Agreement in oil and gas, oil refining and petrochemical branches of the Republic of Kazakhstan for 2017–2019.
At the regional level, there are regional commissions for social partnership, which, consider specific collective labour disputes in addition to regional issues of employment and labour protection.
According to the research of the Social Stability Index (SSI), conducted by the Social Partnership Center of “Samruk-Kazyna” JSC, SSI of KMG has increased from 61 to 74 percent from 2013 to 2017, and is at “above average” level, in 2018, SSI is 74%.
Since 2016, all industrial enterprises of KMG are introducing internal communications tools, according to which the reporting meetings of top managers with labor collectives are held systematically twice a year, quarterly meetings of line managers of the KMG subsidiaries and affiliates are held with teams, managers
meet with the trade union, each employee’s ability to contact questions to the management of enterprises and get an answer in a timely manner. In 2018, 65 reporting meetings of senior managers with labor collectives.
Within the framework of capacity development, KMG pays special attention to the development of human resources, both production and administrative personnel.
On an annual basis, KMG provides training and personnel development, forms new approaches and development programs for employees of the KMG Group of companies.
Average annual number of academic hours per one trained employee by category of employees, %
1 - experts - leading experts / engineers / analysts, senior experts / engineers / analysts, experts / engineers / analysts, junior experts / engineers / analysts
2 - workers – workers’ professions; employees – technical executors, clerks, archivists, secretaries of managers
In order to improve the process of training and development, formation and maintenance of the required level of personnel qualifications, and the effective use of budgetary funds, a new concept of personnel training and development has been implemented in the Group of KMG companies since 2016 “70/20/10 – on job training/internal training/ external training”. As part of the introduction of the new training model, the Institute of internal trainers has been introduced as well as distance employee training programs, internship program and executive development programs for the Group of KMG companies.
In addition to these projects, KMG annually increases the number of trained employees. In 2018, KMG trained 129 thousand people* for a total KZT 5,7 billion, which is 2.5 % higher than in the previous year. The increase in number of trained and expenses are associated with launch and implementation of the above programs.
Among the number of trained workers, 15 % are women, 85 % are men (in 2017, 14 % and 86 %, respectively). At the same time, expenses on training women make up 23 % of the total amount of expenses, with the average cost of training women – KZT 69 thousand, men – KZT 40 thousand. 8 % of those trained are administrative and managerial personnel, 92 % are production personnel. A high percentage of trained production personnel is associated with the mandatory training of workers employed at hazardous production facilities in accordance with the legislation of the Republic of Kazakhstan.
Total number of trained employees by years, thousand people
Personnel development costs, bln tenge
Average annual number of academic hours per one trained employee is 15.0 hours (16.1 hours in 2017), including:
• 14.9 hours per man (15.8 hours in 2017) and 15.6 hours per woman (18.3 hours in 2017);
• 19.5 hours per senior manager, 18.3 hours per expert – 18.3 and 12.6 hours per worker/employee.
Number of employees taking training by gender, %
| Years | 2015 | 2016 | 2017 | 2018 |
| Men | 86,5 | 88 | 86 | 85 |
| Women | 13.5 | 12 | 14 | 15 |
At the same time, we note that the training and development of workers is carried out regardless of gender and position.
* when calculating the number of trained, the passed training is taken into account (for example, if 1 employee has passed two trainings, the number of trained is 2).
The staff assessment procedure is in place in KMG since 2004 and aims to determine the effectiveness of the activities and the promotion of adequate and nonmaterial remuneration.
Procedure is regulated by the Rules for evaluation of KMG’s administrative staff and is based on two types of evaluation: professional development assessment and performance evaluation.
According to the recognized international practice of effective human resources management, this procedure is based on assessment of business and leadership competences of employees, taking into account evaluation of performance during the accounting year.
Performance evaluation is carried out on a quarterly basis, according to purposes of the year, and has specific quantitative results from 1.5 to 0 of the official salary as a quarterly bonus payment.
The evaluation of professional development is conducted annually and pursues the purpose of non-material incentives – evaluation commission can recommend enrolment to personnel reserve, promotion, rotation in the Group of companies KMG, individual training or other opportunities for professional development.
In 2018 annual assessment of employees was made which showed that 85.4 % of them are the employees of the KMG corporate center. 33.7 % of all employees of the Company passed the performance assessment for the reporting period. Among them 23% are women, 77% are men; senior management – 16%, experts – 41%, workers – 43%.
Our approach to staff motivation is based on the principles of ensuring worthy level of labor payment, transparency and respect for employees’ rights. All changes in labor payment system are made taking into account opinions and proposals of the interested parties.
In the companies of the Upstream business area, the Single System of Labor Payment (SSLP) was introduced, which purpose is assistance to achieve strategic purposes of KMG, by adjustment of payment system, ensuring a single labor payment system in all departments, and strengthening employees’ interest in labor outcomes. This system provides for a number of conditions, when employees are provided with compensation payments, extra charges and additional payments; one of these criteria is the Regional coefficient – an indicator of the relative increase in salary in order to compensate for the additional costs and increased labor costs, related to performance of work in regions with severe climatic conditions. The highest value of this ratio is in Mangistau and Atyrau oblasts.
The ratio of salary of initial level in the Group to the minimum salary, established by the national legislation for 2018, is in the range from 6:1.
The ratio of senior management* in regions of presence** employed among the representatives of the local population*** is 85 %.
The ratio of employees in the executive team is 9 % of the total number of employees, including 17 % of women and 83 % of men.
remuneration system depending on gender differences in the Group of companies KMG. The level of salary in the organizations of the Group of companies KMG is associated with position, but not to the employee, i.e. men and women working in the same position receive the same salary and other payments as stipulated by the rules of payment in the organization.
* Senior management (First leader and his deputies)
** Region of presence – region (district) of operating activities
*** Local population – citizens of the Republic of Kazakhstan
Contracts for the subsoil use of KMG subsidiaries provide for the allocation of significant funds for the development of the region of production presence and social assistance to segments of the population in need. Companies transfer funds to local executive bodies, which allocate funds, based on the needs of local communities. The company plans to introduce an impact assessment of this activity.In 2018, under the subsoil use contracts, about KZT 5.2 billion was allocated for the development of regions by the KMG Group.
Amount of funds allocated to charity by KMG, million KZT (to finance Samruk-Kazyna Trust projects)
In 2016, by the decision of the Board of Directors of “Samruk-Kazyna” JSC, the Fund’s Charity Policy and the Fund’s Charity Program were approved, according to which KMG and its subsidiaries cannot plan and provide sponsorship and charitable assistance on their own.
According to the Charity Policy, all charitable activities of the “Samruk-Kazyna” JSC Group of companies are carried out by the Samruk-Kazyna Trust Social Project Development Fund (hereinafter referred to as the Fund).
Priority areas of acivity of the Fund:
• help people, communities in the social and medical sector;
• development of media, cultural community, human development;
•trengthening labor relations, international relations, investments in the sustainable development of society;
• support for regional business initiatives;
• promotion of the image of Nur-Sultan on the world arena.
Fund implements charity projects and programs aimed at solving socially important issues for the population from the entire Group of companies of “SamrukKazyna” JSC. The activities of the Fund are carried out with the assistance of state bodies, the Government of the Republic of Kazakhstan and experts in the field of public and social policy. The administrators of charitable projects of the Corporate Fund are non-governmental organizations identified on a competitive basis.
