Sustainability management at S-OIL starts from understanding the expectations of C.E.O. (Customers, Employees, Owners & other stakeholders). Going forward, the Company will create economic, environmental, and social values reflecting the expectations of C.E.O. and contribute to the development of society and the nation.

Our reasonable HR system ensures the establishment of a performance-oriented corporate culture. The fair recruitment and evaluation process allow us to attract and train talented employees, and diverse training programs contribute to cultivating core talents who will spearhead the Company. Our industry-leading compensation system and welfare package lead to a better work-life balance for employees.

HR Management / Fair Evaluation & Compensation

Securing Talented Employees through Fair Recruitment Procedure

S-OIL pursues the diversity of its employees and strives to create a corporate culture where every employee unleashes their full potential and contributes to corporate growth through innovation. Our recruitment procedure ensures that no applicant is discriminated against on grounds of gender, academic background, region, age, or disability. We are also proactive in hiring socially marginalized groups such as disabled people and non-regular workers. The channels to hire competitive talents are extended to campus recruiting, internship, and scholarship support programs. We do not require potentially discriminatory items of applicants and conduct a blind interview system where personal information including academic background is not provided to interviewers, which ensures fair evaluation based only on competence and qualifications instead of applicants' specifications. Our reasonable and transparent recruitment procedure has become a driving force for our sustainable growth despite increasingly fierce competition.

Performance-based Evaluation and Compensation

Improvement of the Evaluation System Aimed at Enhancing Individual Competence and Organizational Performance
S-OIL has advanced its evaluation system to build a performance-oriented corporate culture. As for individual competence evaluation, we improved the existing system where grades were given simply in accordance with evaluation results. Under the new system, every employee creates tailored competence development plans based on their evaluation results. And then, they carry out the plans and monitor and manage the processes and results throughout the year. These activities contribute greatly to developing individual competency. Performance evaluation was also upgraded to make sure that both organizational and individual goals would be closely interconnected. Every employee sets up individual action plans in line with organizational goals and their activities are managed by a phase-by-phase check process to ensure individual performance improvement. And then, specific performances are evaluated on action plans, which increase fairness and reliability in the evaluation.
Enhancement of the Performance-based Compensation System
In line with the performance-based organizational culture, we have reduced seniority-based compensation while strengthening performance-based compensation. Wage increase in line with the service period for the same position was scaled down while that from promotion further expanded. In addition, we introduced a merit-based system for office workers in accordance with annual evaluation results to boost their inspiration to raise performance at work.

Talent Cultivation

The Company's competence development model consists of basic competence for all employees, leadership competence for leaders, and job competence. And systematic education is offered in accordance with employees' role level (job grade).

Operation of an Effective Education System

Based on competence evaluation results, we provide employees with not only in-house collective training but also various online education courses accessible via mobile devices so that employees can develop their competences anywhere, anytime. Commissioned training is also offered to meet increasing needs for more specialized education. In 2016, new courses such as understanding of our specific production process, basic finance, and basic work skill were launched to foster basic competence for all employees. We also initiated the Learning Cell, an open learning platform for employees who want to share their knowledge and experience while satisfying their own needs for learning. This program allows employees to form study groups on any topic they are interested in to meet for a small group lecture, group learning, or reading discussion. The Communication Center offers employees opportunities to cultivate their foreign language skill. The Company provides employees attending these programs with learning materials and expenses to promote their active interaction and competence development.
Introduction of the Learning Management System (LMS)
The LMS, launched in 2015, has been contributing to increasing the efficiency of educational administration and effectively supporting employees' competence enhancement. The LMS analyzes the patterns of users who access the system and customizes the main page for individual users. It also features "My Classroom" for the community learning while allowing users to search a wide variety of video clips and materials for self-driven study. E-learning courses from the LMS are available via both PC and mobile devices, serving regular learning. The introduction of the LMS has let employees benefit from systematic individual competence development programs while raising the operational efficiency of educational administration for the Company.
Leadership Enhancement Programs
Leader groups such as officers and team leaders play a key role for building an active organizational culture and making decisions on critical matters. To strengthen their capabilities, S-OIL diagnosed their leadership styles in collaboration with professional consulting firms in 2016 and conducted one-on-one coaching programs guided by professionals based on the results with the purpose of presenting leadership types required of them. Going forward, S-OIL plans to develop various effective leadership programs to help leader groups cultivate their competence and take the initiative for changes and innovation.
S-OIL Academy for Specialized Job Training
We have been running the S-OIL Academy for specialized job training since 2011. The S-OIL Academy consists of the S-OIL Academy for Marketing & Sales and the S-OIL Academy for Operations and is upgraded every year. Particularly, the S-OIL Academy for Marketing & Sales was revamped in 2014 to better train domestic sales professionals, thereby offering 48 modules and 12 courses including the case of sales of domestic oil products today. As for the S-OIL Academy for Operations aimed at sharpening the job competence of engineers and production staff, we developed an e-learning course for fostering basic job competence and introduced the Blended Learning which combined on- and off-line job courses. In order to establish a stable operational competence for Start-Up and Shut-Down for each process and to develop emergency response capabilities, we offer the Operation Training Simulator (OTS) program. Also, an advanced program has been running to support the building-up of competence for manager-level engineers or above. Leadership courses are offered to site staff as well.
ECP for Engineer Competence Enhancement
S-OIL has operated the Engineer Cultivation Program (ECP) since 2015 to support the systemic training of engineers. Under this program, engineers draw up the Customized Personal Training Program (CPTP) related to individual functions and career path based on the job function training database Pool of Refinery Training Courses (PoRT) and interviews with their supervisors. The training outcomes and records are systemically monitored through the LMS. In addition to the ECP, the Intensive Overseas Training Program is operated so as to cultivate engineers with a global mindset and competency.
Intensive Education for New Operators
To ensure a successful operation of our largest-ever project, S-OIL offers a six-week American Petroleum Institute (API) course, basic job training about process and facilities, and safety training to new operators who have joined the Company since 2015. After this training, they are required to complete the 20-week Job Task Standard (JTS) course at each department. During this period, intensive training including self-learning on basic jobs and monthly evaluation on training results are carried out to help them learn diverse skills needed for their future jobs. One-on-one mentoring service is also offered to faithfully manage their training process.

Nurturing Next-generation Leaders

With a clear awareness of the importance of cultivating future talents, S-OIL has established a systematic HR development program. To nurture the next generation leaders, for example, we select talented employees with great potential and engage them in diverse job rotation both in and outside the Company. They also benefit from the Company's support for their MBA studies in Korea or overseas, or for the Master's program in science and engineering in IFP School in France. We also focus on developing diverse female leader cultivation programs. These advanced training programs will produce many core talents who can lead S-OIL to a sustainable future.

Healthy Corporate Culture / Establishment of Harmonized Labor-Management Relations

S-OIL has established a productive and healthy corporate culture where swift communication is ensured. We operate industry-leading welfare benefit programs that reflect employees' needs, and continue to add items necessary for the physical and mental well-being of employees. Furthermore, we strive to provide employees with the best work environment to assure higher job efficiency.

Establishment of a Healthy Corporate Culture by Enhancing Communication

The Company establishes a productive and healthy corporate culture which ensures better job efficiency by enhancing communication among individuals and organizations. In this regard, surveys on job efficiency and satisfaction are conducted and the results are reflected in diverse activities aimed at smoothing internal communication. In 2016, we held the company-wide presentation on business status twice where the management including the CEO explained the Company's operating performance and outlook and critical business issues and had a Q&A session. S-OIL also encourages diverse programs aimed at expanding communication between leaders and their members and strengthening teamwork. Going forward, the Company will make a concerted effort to boost not only vertical communication between leaders and their members but also horizontal communication among individuals or organizations.

Industry-leading Welfare Benefits

To provide a workplace where employees can feel deeply engaged in their work, S-OIL offers industry-leading incentives and welfare benefits. In addition to the basic welfare package (4 major public insurances and congratulations & condolences program), we offer a specialized set of benefit programs tailored for life cycle to ensure that employees can fully engage in their work as well as satisfy themselves in terms of housing, health, children's education, and leisure activities. In 2016, the Company started the construction of workplace daycare centers at its Head Office and Onsan Refinery in order to help employees with preschool children be immersed in their work. The daycare centers will be completed in 2017.
Introduction of the New Pension Program
Given that Korea's average life expectancy is rising fastest in the world while most people cannot afford a reliable retirement plan, S-OIL pays full attention to ensuring a stable life for employees after retirement. In this regard, S-OIL became the first Korean company to introduce the "New Pension Program," a matching grant scheme where the Company pitches in for employees' post-retirement resources. Currently, 99% of total employees subscribed to the program. We will continue to upgrade the operation of the New Pension Program by seeking methods to increase employees' satisfaction with this program. The New Pension Program is anticipated to help our employees ease uncertainties over their future while assuring that their life after retirement will be stable.
Employee Health Management
S-OIL operates health clinics to properly respond to emergencies that may arise during work hours as well as take care of employees' health in normal times, and nursery rooms for expectant and breastfeeding mothers at the Head Office and the Refinery. The Company also commissions prestigious medical institutes for annual check-up of employees while ensuring a quick and convenient recovery from disease by providing medical subsidies and a medical leave of absence. Mental stability as well as physical health is critical for full employee engagement. To that end, S-OIL runs the Employee Assistance Program (EAP), a comprehensive consultation service where outside professionals provide tips on personal problems and job-triggered stress, interpersonal relations at work, family relations, child care, and more.
Enhancement of Employee Engagement through Refreshment
Employees are able to be absorbed in their work more creatively and passionately when they strike a balance between work and life and have time to recharge themselves. Thus, we continue to beef up policies to ensure sufficient relaxation from work and chances for refreshment for our employees. As part of this, we introduced the Intensive Holiday Program to assure two-week vacations and the Off-duty Day Program in 2010. In addition, the Monthly Refreshment Day (MRD), started in 2015, allows employees to take a leave once every two months, letting them relieve stress from work and spend more time with family. S-OIL runs condominiums across the nation available for reservation for employees going on a vacation. Employees are also free to check in at hotels and resorts in popular tourism destinations in the summer and winter months. More than 50% of employees visit those recreational facilities every year. Going forward, S-OIL plans to open more recreational facilities available for employees and their family.

Providing Best-in-Class Work Environment

S-OIL provides employees with the best-in-class work environment by creating an optimized workplace and serving swift business support. In 2016, the Company opened the Creative Lounge in the Head Office to help employees practice self-development and take a rest and installed a variety of spaces dedicated to supporting external projects, which contributes to enhancing business efficiency. Moreover, the main auditorium at the Head Office is offered to employees for a wedding event of themselves or their children. S-OIL intends to develop new ideas and proposals with the aim of assuring the best-in-class work environment for employees.

Collaborative Labor-Management Relations

Our labor-management relationship has set an example in the industry as there has been no labor dispute for the past 36 years since the inception of the labor union in 1980. This resulted from mutual trust and cooperation between the labor union and the Company that have respected union activities and listened to the voices of union members as well as complied with relevant regulations. The labor and management have been collaborating in elevating corporate competitiveness, improving the quality of employees' lives, and fulfilling corporate social responsibility through a variety of communication channels including the Labor-Management Council, the Industrial Safety & Health Committee, and joint workshops as well as wage negotiations and collective bargaining.

Industrial Safety & Health Management

With the setup of the company-wide safety goal in 2016 at building the world's best safety culture and maintaining zero accident workplaces, S-OIL has made a concerted effort to raise the awareness of safety culture. Particularly, the Safety Control Tower focused on enhancing the company-wide safety management system encompassing the Onsan Refinery, terminals, the Head Office, and the Magok TS&D Center.

World's Top Safety Culture

S-OIL has established an IT-based management system based upon the check list in accordance with the toughened SHE (Safety, Health & Environment) regulations and carried out a wide array of activities to comply with SHE requirements. As a result, S-OIL saw its worksite safety culture score rise to a globally recognized level of 7.9 points in 2016, taking a step closer to embedding a safety culture into the Company. Going forward, under the operation guideline of "Establishing a World-class Safety Worksite Based on SHE-first Management," S-OIL will strive to take its safety culture to the next level.

Enhancement of the Company-wide Safety Management System

The Company's safety management system was further upgraded with the launch of the Safety Control Tower guided by the Chief Safety Officer (CSO) and the company-wide Safety Management Committee in 2016. Major roles of the Safety Control Tower include setup, practice, evaluation, and feedback of safety policies for all workplaces as well as support for safety activities. The head of the Safety & Health Division is designated as the CSO who is responsible for improving safety systems and establishing safety goals and policies. The Company is also proactive in supporting safety activities of relevant departments and encouraging individual organizations to voluntarily comply with safety regulations and procedures. The company-wide Safety Management Committee is convened every quarter to share a wide array of safety issues such as safety-related policies, goals, systems, activities, and real cases, and deliberate on improvements.

Development of Emergency Response Capability

Operation of the Emergency Control Program (ECP)
Initial response is critical to prevent an accident from escalating into a major disaster. Recognizing this, S-OIL has established the ECP, one of the company-wide integrated risk management systems. In case of an accident, the ECP ensures that the Company takes preemptive measures in a swift manner by supporting real-time communication, thus minimizing damage to the Company and local communities. The key feature of the ECP is the ECC (Emergency Control Center), which convenes an emergency meeting if an unlikely accident ever occurs and shares site information via video conference system to control the situation. The ECC is activated from the Head Office and the site simultaneously. The command vehicle dispatched to the site transmits accident status to the ECC in real time, and then the ECC makes immediate decisions based on the live feed to control the site from remote.
Company-wide Simulated Risk Response Drill
We conduct company-wide simulated risk response drills in accordance with a ready-made scenario or in an unexpected manner in order to enhance emergency response capabilities of employees. Particularly, in 2016, an emergency evacuation in preparation for earthquake was added. Site response teams and the top management were able to quickly sum up the situation and take proper measures by communicating seamlessly in real time, thereby proving top class risk response capabilities by organic cooperation between the Head Office and the Refinery. S-OIL promises to develop the leading emergency response capabilities by conducting company-wide emergency drills for various situations.

Support for Safety Management of Business Partners

S-OIL formed a consultative body with business partners to share its advanced safety culture practices. The consultative body convenes for regular safety meeting once a month and carries out collective inspection on a quarterly basis. It also engages not only in promoting the mentoring program among business partners and joint safety campaigns but also in offering special lectures on safety culture and education on risk evaluation. In 2016, 10 business partners who received technical and financial support from the Company obtained the OHSAS 18001 certification, and other 19 business partners acquired the certification on risk evaluation. S-OIL's continued support for its business partners on safety management has resulted in the Company earning the A-Grade from the government in the evaluation of shared growth programs in 2015 and 2016.