We employ around 29,000 people, which makes the PGNiG Capital Group one of the largest employers in Poland. The specific features of the energy market significantly influence the relationships between different elements of the value chain and our employees. This creates numerous challenges which we try to address as best as we can.

Employment in PGNiG companies in regions per registered seat of subsidiary.

Selected companies of the PGNiG Capital Group conclude Collective Bargaining Agreements with trade unions. The agreements specify in detail the employees' rights and duties which are regulated by the labor law and other provisions. The following Group companies sign Collective Bargaining Agreements:  PGNiG SA, PGNiG Retail Trade Branch, PGNiG Technologie, Geofizyka Kraków and PGNiG Sales & Trading.

In total, 33% of the Group's employees are covered by Collective Bargaining Agreements. In PGNiG SA, PGNiG Technologie and PGNiG Obrót Detaliczny, the agreements have been signed by all employees. Collective Bargaining Agreements cover 85% of staff members in Geofizyka Kraków and 8% of personnel in PGNiG Sales & Trading. 

As part of its human resource policy, the Group observes the provisions of the Code of Ethics in its daily operations and implements an employee motivation and evaluation system which is oriented towards personal growth.

We want all members of our large personnel team to identify with the values that underlie the corporate culture of PGNiG. Reliability, responsibility, partnership and quality have always been the core values of the PGNiG Capital Group. They are a part of the traditional code of ethics and integrity of the mining industry which is the cornerstone of our daily operations. The Group's long-term goal is to build a learning organization that abides by the principles of sustainable development and corporate social responsibility.

One of the key goals of PGNiG Capital Group's Sustainable Development and Corporate Social Responsibility Strategy is to create a safe and friendly workplace. We observe principles that have been developed over the years to best serve the interests of our employees and our company. Those principles are described in documents that underlie our approach to employment management – the Strategy of the PGNiG Capital Group for 2014-2020, the part dedicated to operating initiative No. 9 which aims to build an organization that is based on effective human resource management, goal achievement, resource exploration, Code of Ethics, Collective Bargaining Agreements and Work Regulations in the Group's companies.  

The PGNiG Capital Group makes every attempt to improve employment standards and promote the employees' development. Those goals are achieved by introducing innovative personnel solutions and ensuring that our human resource management policies conform to the highest possible standards.

We also want our good practices in human resource management to deliver positive effects for our contractors. In some requests for proposals and invitations to tender, bidders have to demonstrate that they employ their personnel under permanent contracts. In requests for proposals and invitations to tender covering products and services worth more than PLN 1.75 million, bidders have to demonstrate that they employ their personnel under permanent contracts. We also encourage our contractors to hire unemployed and disabled persons. In line with the provisions of the Public Procurement Act, we verify all bids with suspiciously low prices that could underestimate real costs of labor. 

In contracts covering periods longer than 12 months, PGNiG is legally obligated to sign stability clauses that allow for changes in contractual remuneration due to changes in tax rates or minimal wages in Poland.     

The recruitment policy in PGNiG is based on the inside-first principle. Internal recruitment makes the best use of our employees' potential, and it motivates our employees to work effectively and develop their talents. PGNiG also conducts external recruitment to draw upon a wider range of talent and bring new employees with the required qualifications into the business. PGNiG provides many young people with entry-level jobs. We have a policy of responsible recruitment and employment, and our good practices in this area help our new colleagues to easily adapt to the new workplace.

PGNiG organizes Welcome Day meetings during which new employees attend presentations delivered by various departments. The meeting are held to provide our new colleagues with information about the company and useful tips on how to make the most of their new job.
PGNiG has developed a Guide for New Employees, a compendium of knowledge about PGNiG which is available in the intranet.

Detailed information about new employees and employee turnover in PGNiG companies in 2014 is presented below.

Employee turnover in PGNiG Capital Group companies in 2014.

Each year, PGNiG hires interns who win the Internship Game competition and participate in the Energy Academy project and the company's GeoTalent educational program. We are also involved in other internship initiatives and competitions, including projects organized by the Ministry of Treasury. Internships in PGNiG provide young people with an exciting opportunity to gain professional experience and new skills in the power sector. The best interns find employment in the PGNiG Capital Group. The Group creates numerous internship opportunities for young people, university students and graduates from across Poland. 

This report presents good practice projects addressed to PGNiG's present and future employees. For more information about all employee initiatives launched in 2014, click here.

The reach of our social initiatives has been expanded to include the employees' families. As part of such projects, PGNiG introduces measures aiming to improve the beneficiaries' standard of living and provide them with health care services by:

• organizing and co-financing domestic and foreign holidays for the employees and their children,
• providing financial and material aid to families experiencing financial and health problems,
• providing loans for housing purposes,
• organizing and co-financing various active recreation options (sports, recreation, culture),
• co-financing private medical services for the employees and their families.
   

PGNiG Capital Group companies are present on various markets and conduct a broad range of operations, which is why they initiate employee training programs of different type and scope. The training management system plays a key role in human resource development. Our employees can raise their qualifications by participating in workshops, enrolling in postgraduate university courses, attending industrial conferences, seminars and symposia, and completing occupational training programs. Their training needs are identified during individual and group interviews with managers, employee interviews and questionnaire surveys. Training programs support the development of new qualifications and skills which are necessary for the achievement of specific business goals in the Group's companies.

Subject to their work duties and individual needs, employees can participate in training courses that address all operational aspects in a modern organization, including risk management, legal analysis and customer service. Workshops promoting the development of soft skills such as communication, team work, team management and task management are a very important part of our training programs.

The employees of an oil and gas exploration and production company have to be able to conduct negotiations and establish long-term communication with local authorities and communities. The training programs and workshops offered by PGNiG companies prepare our employees to assume these roles.

In 2011, PGNiG SA introduced the Performance Evaluation System which is simple, universally applicable and based on clear and transparent criteria. The system will cover all of the Group's employees in the near future. In 2014, most Group companies evaluated the performance of their employees, but not all companies performed standard appraisals or reported the relevant statistical data.

At present, employee appraisals are held twice a year based on identical standards and criteria in all branches of PGNiG SA. Special emphasis has been placed on individual goals which are linked with the company's strategic goals. Individual goals, performance expectations and areas that need improvement are discussed during appraisal meetings. This organization of the evaluation process enables every employee to discuss work-related needs and challenges and receive feedback about personal achievements and development. 

PGNiG SA makes every effort to improve employee satisfaction levels. Various communication tools and channels are developed to maintain dialogue with our employees. Our staff are provided with a wide range of opportunities for personal growth and education.

PGNiG SA conducts an employee satisfaction survey every 2-3 years, and the quality of communication and IT services is verified each year in an anonymous online survey .

Our employee management programs not only deliver positive results within the organization, but they are also recognized in various competitions and rankings in the business arena. Such initiatives enable the company to monitor the outcomes of its programs outside the organization. In 2014, PGNiG SA was awarded the title of Reliable Employer of the Year. An independent competition committee selected the best employers with exemplary human resource policies. The analyzed criteria included working conditions, prompt payment of wages, benefits, career path, employment rate, CSR activities, external and internal image of the company (National Labor Inspectorate, job centers, local community).

The power sector has a long tradition of social dialogue. This is also the case in the PGNiG Capital Group where many trade unions operate. In the Group's companies, every major decision is consulted with employee organizations. We take great pride in working closely with trade unions, communicating with our employees and involving them in consultations in the decision-making process.