EMPLOYEE EVALUATION

GRI 404-3 
 

There are two types of performance assessment at the PGNiG Group. One is performed annually (an annual performance review) and the other is performed twice a year (a semi-annual performance review). The annual performance reviews evaluate the performance of blue-collar workers and white-collar field staff. The semi-annual assessment is required for all the other employees except for the senior management staff covered by the MBO system and legal counsels. Performance is assessed based on the following elements:

• assessment of performance quality and competencies (annual assessment)
• assessment of work and task performance quality, competence assessment (semi-annual assessment; competence assessment is performed once a year in December).

Annual 360° performance appraisals are performed with respect to the senior management staff covered by the MBO system, and involve subordinates, co-workers, line managers, and the managers themselves through self-assessment. The 360° performance appraisals ensure full anonymity and involve numerous respondents representing various areas of competence and various organisational levels.

Competencies are evaluated on a four-point descriptive scale (very good, good, area for improvement, area for significant improvement). Following the assessment, the appraiser and the appraisee summarise its results and identify areas of outstanding performance and areas for improvement. To conclude the performance assessment the employee and the line manager jointly select the employee’s strengths and areas for further development. This forms the basis for the line manager to formulate development measures that may be integrated into the performance assessment as development tasks for the following assessment period and that may be evaluated in the same way as other tasks.

Employee performance assessment is a very special component of the HR policy as it represents a starting point for various initiatives in the area of human resources, and it constitutes a tool of the incentive policy enabling evaluation of employees’ development potential. The Performance Assessment System is a source of information used to identify HR requirements, recognise employee achievements, develop a remuneration system, implement staff transfers, including promotions and redundancies, and to create concepts for employee improvement through training programmes. Every year the system is gaining in effectiveness as a management tool, particularly in the area of sales. The performance assessment system serves to plan and coordinate the staff management process to ensure that employees are productive in performing what their line manager expects of them, but also that they achieve their own objectives and expectations towards the organisation.

Once or twice a year, PGNiG employees are evaluated based on the Performance Assessment System and MBO system in place. In the process, particular emphasis is placed on targets assigned to individual employees, which are linked to strategic objectives of the Company. It allows employees to discuss the needs and challenges associated with their positions, and is a source of feedback on both their achievements and potential issues in their professional development. 

Percentage of employees subject to the performance assessment process at the PGNiG Group:
Organisational unit	Employees covered by performance assessment (%)
	2019	2018
PGNiG	98%	98%
PGNiG Group	82%	82%

Foreign employees of PGNiG who are employed under local law are not covered by performance assessment.