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Our Management Approach

The concept of our HR policy is aimed at creating conditions for adding value to the human capital within KMG Group.

To achieve this goal, the following HR objectives are to be implemented:

• Develop the corporate culture and improve managers’ skills – development of corporate culture based on the meritocracy and ’commercial’ reasoning with a focus on succession, commitment to results, and readiness to assume responsibility. Development of leadership competencies;
• Unify and improve HR efficiency – building a customer-oriented HR function that would render a comprehensive support for KMG strategy implementation. Unification of the HR processes and standards that incorporate the best international and internal practices of KMG subsidiaries. Creation of the common information space via the unified automation solutions. Transfer of routine operations that do not bring the added value to the Shared Services Centre;
• Improve the personnel quality with due regard to business needs – identification of the relevant job qualification requirements, ensuring that the employees meet these requirements through the system processes (selection, development, evaluation, etc.) and individual projects (such as assessment of fitness for the job). Enhancement of the key personnel competencies required to achieve the strategic goals (e.g., Development of Human Capital in Upstream programme, programmes for the development of project and investment management competencies, competencies for successful IPO of the company, etc.);
• Achieve a positive engagement rate and social stability – more emphasis on the systematic approach to management of engagement and social stability via regular measurements, development and implementation of plans. Achievement and maintenance of positive values for engagement (60% or more) and social stability (61% or more);
• Implement a comprehensive talent management system from talent acquisition to succession and management of remuneration – implementation of the talent management system ensuring transparency, conditions and motivation of personnel for the purpose of retention, promotion and appointment to key positions of the effective and potential employees of KMG Group. The key elements of the comprehensive talent management system will include:
  • employment transparency and neutrality;
  • dependence of the remuneration levels on the performance and market appraisal results;
  • succession in the key positions;
  • identification of talents and development of the talent pool;
  • employees having development plans based on the evaluation of performance and business needs;
  • priority to internal candidates when selecting for the key positions in the KMG Group.
• Effective headcount management to improve performance – effective planning and forecasting of human resources with due regard to the current and target needs of KMG. Development of the uniform norms and standards of the staff size, implementation of staff size optimisation programmes (e.g., withdrawal of non-specialised functions) via economically feasible tools, and redistribution of personnel between manpower-surplus and manpower-deficit entities.

The HR policy concept relies on the following key principles:

1. Balance between the interests of employees and KMG – formation of KMG’s HR Policy and other documents regulating personnel management should consider the interests of employees and KMG in equal measure.
2. Uniform HR policy for the entire KMG Group – the areas of activities and development associated with personnel management shall be uniform for all companies of the KMG Group.
3. Shifting the role of HR from administrative supporting to a strategic one for the business – the HR function should become a strategic partner for the business, rather than merely perform an administrative supporting function.
4. Creating added value for the business – in their daily activities, the employees of the HR function should take into account how the results of their activities create an added value for an in-house customer, and prioritise their activities accordingly.
5. Optimal organisational structure and headcount – the HR function should build the most optimal organisational structure in the Company based on the best industry practices, and promote continuous improvement of KMG to increase labour productivity.
6. Manpower planning based on business needs and labour market conditions – manpower and personnel cost planning should be based on the plans and needs of the business areas, taking into account the labour market conditions.
7. Continuous improvement of learning and advanced training programmes – the HR function should create all necessary conditions for the continuous improvement of knowledge, skills and competencies of employees and managers by studying modern learning programmes and incorporating them in the learning and development process.
8. Building a self-learning organisation based on a 70-20-10 model – the employees should bear personal responsibility for their continuous development by way of: (1) on-the-job learning by solving difficult tasks, participating in projects, distance learning (70% of the whole learning), (2) interaction with colleagues and managers by way of feedback, coaching and mentoring (20% of the whole learning), (3) participation in seminars, trainings, conferences, lectures and other employee development activities (10% of the whole learning).
9. Responsibility of managers for personnel management – managers of all levels shall bear responsibility for personnel management, and the HR function shall render necessary support and provide the required tools.
10. Creating the culture of employees engagement in the joint achievement of strategic goals – the HR function promotes formation of the culture of understanding, interest, and support of strategic, operational and production goals by employees at all KMG levels.
11. Creating conditions for the employee motivation – the HR function should form processes, systems, and provide the required tools to ensure the effective employee motivation using various forms and methods.
12. Preventing violations of laws – the HR function should ensure compliance with the laws during the documentation, alternation and termination of employment, development and use of internal documents, rules and procedures used by KMG.