One of Tengizchevroil’s strategies is to “Invest in people to develop and empower a highly competent workforce that delivers results the right way”.
The Company provides social protection of its employees by managing labor and industrial relations, delivering a competitive remuneration package, providing employee development opportunities through training, development, and challenging work assignments to uncover their full potential, and leveraging succession planning, social programs, incentives and initiatives that aim to sustain corporate culture and employee commitment to the Company’s values and strategies.
A critical element in the management of human resources is our commitment to ensuring that every employee not only understands the Company’s goals, but also understands the unique contribution they can make to help the Company achieve those goals. The communication of the Company goals and objectives is carried out through regular interactions between TCO management and employees during performance management process, the monitoring of labor and industrial relations in TCO’s departments and contractor companies, and the use of an employee “Hotline” reporting and feedback process.
TCO's social responsibility is formalized in a collective agreement that has been effective since 1996. The collective agreement is reviewed every three years and the latest updates were made on January 1, 2017. The collective agreement reflects the rights and responsibilities of employees and the Company. At the same time, the collective agreement provides the possibility of discussing a wide range of issues, thus ensuring that the opinions of employees are taken into account.
Our human resources management is based upon our strategic staffing planning for the near and medium term. Our primary focus during this process is Kazakhstani content in the workforce.
TCO’s recruitment process is open, transparent and leverages advanced technologies. We utilize an external website to post our vacancies to ensure that all potential candidates have equal access to apply. We not only hire experienced specialists, but also talented graduates of higher educational institutions, based on the needs of the company.
employees are Kazakhstani citizens
supervisor and managerial positions held by Kazakhstani citizens
The safety of our personnel and the performance of our work without injuries and accidents is of the utmost importance to TCO. All TCO employees and contractors are required to receive safety training before they are allowed to perform their job responsibilities. Training includes not only legislatively approved programs, but also a system of specially developed corporate trainings and events aimed at anticipating and reducing potential risks.
In 2017, the share of full-time Kazakh employees of TCO was 83 percent, while the share of national supervisors and managers was 67 percent of the total number of management personnel. At the end of 2017, 156 Kazakhstani specialists were appointed to positions of managers, middle managers and key engineering positions, replacing expat employees.
The Company implements the talent management process to support the ongoing development of organizational capabilities of employees. The main objective of the process is to identify and develop high potential employees and future leaders to meet the company needs regarding the level of skills of employees needed today and in the future. Much attention is paid to ensuring the transfer of knowledge from a more experienced generation to a less experienced one; this, in turn, supports such processes as succession planning and nationalization.
In support of the talent management process, there are multilevel Personnel Development Committees that ensure the implementation of employee development programs and processes.
TCO actively implements a structured leadership development program that ensures the consistent development of leadership competencies among employees at all levels of the organizational structure. We also offer a mentoring program, internal technical and professional skills training programs, and cross-functional assignments.
Accelerated development of graduates of technical universities, recruited for work in TCO, is carried out through the program "Horizons". The effectiveness of this program is ensured by the fact that in addition to compulsory classroom instruction in the necessary technical disciplines, it also includes mentoring and cross-vfunctional assignments.
The Company implements four specialized training programs focused on technical and professional disciplines for the worker category staff in accordance with the requirements of safety and reliability standards when performing job with the use of high complex equipment in plants.
Over the past five years, the company's expenses on training programs for employees amounted to more than 37 million US dollars. Since 2010, as part of our Educational Assistance Program, Tengizchevroil has funded 134 employees for higher or postgraduate education. TCO continues to make efforts to provide national employees with the opportunity to gain international experience. At the end of 2017, 45 TCO employees worked in various Business Units of the Chevron Corporation as part of the International and Domestic Assignments Program.
Also, the company conducts master classes and successfully implements “XYZ Network" and “Women’s Network”, which creates an additional opportunity for learning and transfer of knowledge and experience.
Chevron XYZ Network was founded in 2000 and currently has approximately 14,000 members around the world. The Atyrau chapter of XYZ was founded in 2013 and includes TCO and Chevron Pipeline Plant employees. The Atyrau chapter of XYZ currently has over 700 members.
The mission of XYZ Network is to connect generations, provide a platform for experience and ideas exchange with peers, learn business processes and generate innovative ideas. XYZ in Atyrau hosts more than 30 events every year.
The Women’s Network was established in TCO in 2013 leveraging the Chevron’s experience and has grown to over 300 members today.
The TCO Women’s Network provides an environment for self-fulfillment, experience exchange, professional development, mentoring, and broadening knowledge and understanding own role and existing opportunities.
The Women’s Network is also advancing women’s rights and opportunities and increasing awareness among the male population of challenges and opportunities facing women in the workplace. In 2017, in support of “Diversity & Inclusion” value, the Women’s Network recently introduced a new initiative – the Men Advocating for Real Change (MARC) program.
TCO’s remuneration philosophy is based on the principles of unity, objectivity, competitiveness of payment that contributes to increasing individual labor productivity (pay for performance).
The TCO annual salary program is revised taking into account the results of the analysis of the labor market in the Republic of Kazakhstan and the oil and gas industry, the financial and economic situation of the company and the level of inflation. TCO provides competitive compensation to its employees, which allows attracting, retaining and motivating qualified personnel.
The employee bonus system is aimed at achieving shared goals, is interlinked with key performance indicators of the employee and the company, creates an additional interest of employees in improving the overall performance of work and consists of short-term and long-term incentive payments. In addition, the company provides employees a number of additional benefits and payments, such as the provision of paid social leave per recommendation of the medical department, the payment of health benefits when granting an annual leave of absence, and others.
TCO has an extensive social package for its employees. Below is a brief description of the company's most popular social programs.
The company offers programs to help employees take care of their own health and the health of their families.
TCO provides mandatory insurance to employees in accordance with the legislation of the Republic of Kazakhstan. Voluntary medical insurance for TCO national employees and their families is offered by insurance companies of the Republic of Kazakhstan. In 2017, 9,140 employees were insured by TCO. TCO offers a standard package of medical insurance services for employees and their families. The employee has the right to voluntarily enroll in other categories of insurance, in which TCO covers between 50 and 70 percent of the total cost of the package.
To promote healthy lifestyles, all TCO employees can use fitness centers, the associated costs are reimbursed by TCO in the amount of up to 137 monthly calculated indicators.
Within the framework of this program, in 2017, employees were reimbursed more than $500,000. Employees working on a rotational basis at the Tengiz field have access to fully equipped gyms, swimming pool and sports grounds. Also, various sports events and competitions are held for employees.
Employees working on a rotational basis have the opportunity to use the services of a clinic located on the territory of Tengiz. The clinic is equipped with modern medical equipment. TCO successfully implements a program for providing psychological assistance to employees of the company and their family members on a free basis, with the principle of confidentiality.
Annually, as part of the "Long Service Award" Program, an employee who has reached their anniversary work experience in the company (5 years and more) receives a gift and an icon with the TCO logo. In 2017, 560 TCO employees participated in this program.
TCO funded the construction of the Miras Atyrau Kindergarten in 2014, which provides daycare for children of TCO employees living in Atyrau. The curriculum of the kindergarten was developed by the Nursultan Nazarbayev Education Foundation. The total amount of covering the costs of employees for kindergarten in 2017 was $1.6 million.
At the end of 2017, 197 former TCO employees hold the status of “TCO Retiree” assigned to employees who reached retirement age during the period of work in the company. The annual individual financial assistance to TCO retired employees is 300 monthly calculated indicators.
For many years, TCO has been implementing a housing loan assistance program by issuing interest-free loans to purchase housing and improve housing conditions. Since 2010, more than 1,500 housing loans have been issued for a total amount of over $111 million.
TCO reimburses the employees' expenses on children's rest in the amount of up to 60 minimal calculated indicators per child per year. Payments under the program in 2017 amounted to more than $280,000.
TCO provides more than 100 scholarships per year to assist our employees’ children in obtaining higher education. The program aims to provide financial assistance to the children of the company employees to study in national and foreign universities and colleges.
Since 1998, TCO has allocated $6.1 million US dollars as financial assistance in obtaining higher education. In the 2016-2017 academic year, 126 students took part in the program; while the total amount of financial assistance amounted to $370,000.