Contrast (-) (=) (+)
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Attraction and
retention of talent

We continued our commitment to programs aimed at attracting, motivating and engaging our employees. We increased internal mobility. The turnover rate was reduced. We increased investment in training. We increased expenditure on social benefits.

In a complex labor environment, Repsol has continued its commitment to recruit, motivate and commit to the best professionals, offering them an attractive place to work and guaranteeing and promoting equal opportunities in their professional development.

The increased diversification of our company's activity, both geographically and in terms of business activity, requires us to identify specialized talent in very specific areas. This has created opportunities for working with research centers with which we had worked previously.

Notable actions include our work to recruit and develop young talent with the technical master's programs at the Repsol training center, Centro Superior de Formacin Repsol (CSFR), which are currently being taken by 85 professionals from different countries. Similarly, our efforts to recruit individuals with a management profile with the New Professionals Plan, through which 35 people joined the company in 2011. The company's commitment to this group of young professionals is being enhanced in 2012, with the start of Repsol's new energy management master's program.

In 2011 we carried out a project to recruit and retain talent in industrial areas. We took part in employment fairs, forums and seminars in towns and cities close to our industrial complexes; we increased our presence at the universities in these towns and cities and we carried out various selection processes in these key areas. In keeping with our company's commitment to hiring people with disabilities, in 2011 we selected nine disabled people to train to be chemical plant operatives.

During the course of the year we signed 16 new educational cooperation agreements with new universities and academic institutions, with 365 new scholarship holders joining the company. For this group, we have streamlined the Plan Impulsa training program, which benefits interns studying for advanced degrees with online training in languages and general skills and the opportunity to attend conferences on different areas of the company engaged in their activity.

Improvements in selection processes

In 2011 we worked on identifying, assessing and attracting professionals with potential. We worked to improve the selection processes, which will help us to identify and recruit talent.

We designed a new tool for selecting candidates worldwide that will achieve consistency in the selection and appraisal process across countries, as well as offering maximum transparency both internally and externally.

Also during 2011, we carried out an in-depth analysis of the methodologies available on the market for assessing selection tests. As a result of this work, we have introduced new means of identifying talent to the selection processes, such as the option of online tests, potentially reaching a greater number of candidates and achieving a better work-life balance, both of those being appraised and their appraisers.

Identifying internal talent

One of the company's aims is to make use of internal talent to ensure that it achieves its strategic goals. We have mechanisms for measuring individuals' abilities, performance, knowledge and management. These allow us to judge how best to develop employees and their skills, such as mobility, training or development on the job, to coordinate the individual's development and career plan, whether they have a management or technical profile.

Two of the most notable development mechanisms, which the company has been working on for some years, are the 'people review' and 'development center' programs.

We have consolidated these mechanisms as the tools the organization uses to appraise and develop the talent of its employees. 'People review' assesses people in detail: Their strengths, areas for improvement and professional profile. With this tool, development plans emerge that respond to the areas for improvement detected and build on identified strengths, with specific actions which include postings within the organization.

Using 'development center', we carry out individual and group tests to assess the level of development of certain aspects of an individual's behavior. This tool has evolved to feature a mixed online and in-person format. We have also increased management involvement, with the process culminating in the preparation of the Individual Development Plan agreed between managers and coworkers.

This year the 'people review' and 'development center' development mechanisms have been modified to fit with Repsol's new behaviors, bringing them into line with their three key elements (management, business and people)(89).

In the different businesses in which the 'people review' has been carried out, we have offered training workshops in advance to adapt the assessment of those taking part to the new behaviors.

Repsol employees received an average of 39 hours' training during the year

Number of people assessed 2010 2011
People review 3,712 1,907(90)

During the course of 2011 we endeavored to implement these development tools in countries outside Spail. Specifically, we reivewed 27 people in Portugal using 'people review', 40 in Peru and 93 in Venezuela and Trinidad and Tobago. We also carried out four 'development centers' in Brazil and Peru, with a total of 29 people reviewed in these two countries and a total of 140 in the group as a whole.

Internal mobility

Internal mobility provides people with the opportunity for professional development by taking on new roles and challenges. During the course of 2011 we made 7,081 postings within the company, compared to 5,892 the year before, of which 28% were women and 72% were men, which matches the distribution of the work force by gender.

In 2011, a total of 3,373 people were given a new professional category, compared to 2,844 the year before. Of these changes, 28% related to women.

Development and Mobility Round Table

Our people management at Repsol aims to offer employees new development opportunities. To this end, we have given impetus to a new development focus, linking career development to personal and professional improvement and aiming to respond both to the company's needs and to people's interests.

One of the resulting initiatives is the Development and Mobility Round Table, set up in February 2011 and comprising a working group including representatives from the People and Organization areas of all of the company's businesses and corporate units. Its aim is to create development opportunities for Repsol's employees, aligning their professional profiles with the company's requirements, to be able to respond successfully to new challenges.

At the first meeting, 33 internal moves involving directors and managers were agreed, and at subsequent meetings a total 106 moves were agreed in the course of the year.


Repsol is committed to people and values, and promotes and facilitates employee training as a key factor in their personal and professional development. We aim to provide training focused on developing people's knowledge, skills, abilities and attitudes, to achieve the goals of the different businesses and units, aligned with the company's strategy and directed toward developing Repsol's culture and leadership style.

Training at Repsol is structured into three areas:

  • General institutional training, in matters related to leadership development, values, corporate responsibility, innovation and construction and all of the other factors we intend to shape the company's culture.
  • Training linked to the plans of the business units and corporate functions, which allows the short- and medium-term goals of these business plans to be aligned with the training and development needs of the groups of individuals responsible for carrying them out.
  • Campaigns to highlight individual needs, which may be addressed using the catalog of skills and knowledge programs that will allow them to advance in accordance with their individual development plans.
  • Master's programs designed to integrate new employees and advance the specialization of professionals with experience in the fields of advanced control and maintenance and instrumentation. In 2011, we improved the content and increased the number of courses offered. From January 2012 there is a new master's program in energy management aimed at new employees joining corporate areas.

To help each business area achieve its goals and respond to its challenges, in 2011 we considerably strengthened e-learning with the Repsol virtual learning environment, launched in 2010. This includes a mixture of online and in-house training in a modular format and spread over a suitable period of time, ranging between three months and two years. In 2011, new programs of this kind of training were introduced for specific groups in the areas of marketing, executives and people joining the company or moving from one area or business to another within the company.

The total invested in training by the company was €21,003,702, compared to €14,238,875 in 2010, an increase of 47%. Ninety-four percent of Repsol's employees received training in 2011.

The significant increase corresponds to the following specific training sessions:

  • Management: In the Downstream area we gave a considerable amount of leadership and innovation training.
  • Automation: Courses were launched on a new platform that allowed us to reach a greater number of users in 2011.
  • Languages: We boosted language training in 2011.

The growth in online training, which has increased to 86,000 hours, should also be emphasized.

Average hours of training per year per employee
2010 2011
Hours of training per year Average hours per year per employee Hours of training per year Average hours per year per employee
Executive staff 9,348 31 10,007 29
Technical managers 101,106 43 81,995 33
Technicians 694,611 41 894,765 52
Administrative staff 22,145 16 95,203 69
Operatives and junior staff 397,490 26 459,191 25
Unspecified(91) 6,228 NA
Total 1,230,929 34 1,541,161 39

In 2011 we developed a course that will provide basic knowledge on human rights, with the intention to extend this course to the whole of the work force in the coming years. The course will be available to all employees beginning in 2012.

Also in 2011 we began a project to integrate and streamline the training offered relating to security and the environment, which will allow us to unify the training offered by the company worldwide, and make training available on locally relevant issues.

We also began to develop a new module to raise awareness on security, with the aim of making a significant qualitative and quantitative leap in this subject.

We continued our programs to integrate people with disabilities and at risk of social exclusion. This year the programs were delivered eight times, twice with people from both groups; we trained 120 people, of whom 39 have joined the company, 25 with disabilities and 14 at risk of social exclusion.

More information on talent-identification tools such as People Review and knowledge- management projects can be found at

Performance appraisal

In 2011 we applied a new model of management, Gestin por Compromisos (GxC) - management through commitments - as our system for assessing the performance of those people not covered by collective agreements. At YPF there is a performance management model called Gestin Profesional Sustentable (GPS) - sustainable professional management.

GxC is a people-management system focused on actions to achieve individual commitments and goals shared with the business unit. It applies to directors, technical managers and technicians.

The process consists of annually defining the goals of each unit and the corresponding individual commitments of each person: Their functions, their responsibilities and their projects and areas for improvement or development. These commitments are established as specific goals for each employee to achieve, as well as committing themselves to act according to Repsol's behaviors. These commitments, made individually and agreed jointly between manager and coworker, must be aligned with the unit's goals.

This process is ongoing throughout the year and divided into four stages: Defining goals, reviewing goals, appraising performance and individual ranking. The results are:

  • Defined goals for the individual and the business unit
  • Appraisal of individual performance on a scale of 60 to 120, based on comparison with the other employees of the same level in the same professional category
  • Appraisal of achievement of the unit's goals on a scale of 0% to 100%

Both appraisals produce a final individual score which determines the variable component of the employee's pay.

During the course of the year, we appraised the individual performance of a total of 20,192 people. An annual individual development plan was drawn up for each of them. Women receiving the performance appraisal stood at 27%, matching the percentage of women in the work force. The increase in assessments in recent years is due to performance appraisal being progressively extended to people included in collective agreements. It should be highlighted that this year YPF employees covered by collective agreements were included.

Performance assessment at Repsol
2009 2010 2011
M H Total
Number of people undergoing performance assessment and review 13,154 15,573 5,371 14,821 20,192
Percentage of total employees 39% 43% 51%


The total turnover rate is calculated as the total number of staff leaving the permanent Repsol workforce as a proportion of the total workforce at December 31, 2011.

Total turnover rate
21-30 years old 31-40 years old 41-50 years old 51-60 years old Over 60
F M F M F M F M F M Total
Spain 3% 3% 4% 2% 2% 3% 5% 6% NA NA 5%
Argentina 13% 11% 3% 3% 4% 2% 5% 4% 11% 8% 5%
Peru 53% 35% 11% 6% 10% 3% - 1% 0% 3% 20%
Rest of Latin America(92) NA NA 15% 10% 16% 8% - 6% 0% 8% 11%
Rest of the world(93) 11% 17% 6% 19% 7% 18% 4% 11% 7% 15% 13%
NA NA 5% 4% 4% 4% 4% 5% NA NA 7%

We calculate the voluntary turnover rate as the number of people voluntarily leaving the permanent work force in relation to the total Repsol workforce at December 31, 2011.

Voluntary turnover rate
21-30 years old 31-40 years old 41-50 years old 51-60 years old Over 60
F M F M F M F M F M Total
Spain 2% 1% 1% 1% 0% 0% - 0% 3% 1% 1%
Argentina 10% 8% 2% 2% 1% 1% - 0% - 1% 3%
Peru 47% 29% 9% 5% 8% 2% - 0% - 3% 17%
Rest of Latin America(94) 5% 5% 4% 5% 10% 3% - 2% - 5% 4%
Rest of the world(95) 8% 6% 4% 6% 4% 4% 3% 2% 7% 4%
14% 9% 2% 2% 1% 1% 0% 0% 3% 1% 3%

Owing to the high turnover rate in Peru (see the discussion under Integrating New Employees), this country is treated separately from the rest of Latin America, as the remaining countries have rates very similar to the average.

Compensation and remuneration systems

Remuneration is an important element in attracting and retaining the professionals we need. Our compensation system is designed to reward individual performance, at competitive market rates, and is appropriate for an organization such as Repsol. Our variable remuneration systems are applied with utmost transparency, ensuring that they fairly reflect the individual performance of each employee, and guaranteeing sustainability in the company's results.

At Repsol our policy is based on a fixed salary, variable annual remuneration and a multiannual incentive. Middle managers and qualified professionals (those not covered by collective agreements in Spain and belonging to equivalent groups in other countries), all receive the variable annual remuneration, while only those with critical knowledge or in key positions, whose targets are based on the company's strategic plan, receive the multiannual incentive.

In 2011, for the first time, an agreement was signed with the unions to introduce variable annual remuneration for personnel covered by a collective agreement in Spain.

In 2011, a single calendar was introduced worldwide for the company's salary reviews and annual performance appraisals. This change has allowed individual annual performance to be better aligned with recognition decisions such as pay increases, changes of status or the allocation of long-term incentives. It has allowed for more consistency, fairness and simplicity in the management of remuneration decisions. In addition, decisions affecting executives, technical managers, technicians and country technicians are now taken in the same time period worldwide, regardless of the country in which the person is located. This allows managers a single and more global vision of their teams.

In practice, this integration has meant a more complete interview in which the line manager discusses with each coworker their performance results for the year:

  • Their position in the company's global ranking
  • The level of achievement of the unit's goals
  • The decisions about the different elements of the salary review process which have an impact on the individual (percentage increase, promotion)
  • The allocation of any medium-term incentive
  • The achievement of strategic goals
  • The impact on the amount that the individual receives from the medium-term incentive allocated four years earlier (if one was allocated).

The aim of this practice is to clarify both the company's and the individual's performance and to relate it to the components of remuneration recognition. This takes place at a set time each year, when the employee is given an overview of their annual performance and the direction to take for their future development.

It is also worth noting that in 2011 two systems of remuneration by share distribution were approved at the shareholders' general meeting:

  • The share acquisition plan 2011-2012, aimed at directors and employees in Spain, is intended to allow those who wish to receive up to €12,000 of their annual salary in 2011 and 2012 in company shares, in accordance with the closing price of Repsol YPF shares on the automated quotation system of the Spanish stock market on the date that the benefit is paid out; this takes place in the months of October, November and December. In the current period, shares with a total value of €6.6 million have been handed out to the 1,533 employees who have opted for this plan.
  • The plan to provide shares to beneficiaries of multiannual remuneration programs is divided into five cycles and aimed at executive directors, other executives and other company employees that are beneficiaries of certain cash multiannual remuneration programs. It will allow up to 50% of the gross value of the multiannual incentive that they receive in the first year of each cycle to be invested in Repsol YPF, S.A. shares. Those taking part in each of the plan's cycles will have the right to receive a proportion of a Repsol YPF, S.A. share for every three shares acquired in the initial investment for each cycle, so long as the shares remain in their property for a period of three years. Three hundred and fifty beneficiaries have taken advantage of the first cycle of the plan and have acquired a total of 227,498 shares.

Living wages

Ratio of Repsol minimum salary to the legal minimum salary in each country
(€ / month)
Country Minimum salary in country Repsol minimum salary(96) Repsol salary / country salary
Spain 641.40 1049.60 1.64
Argentina 414.93 449.92 1.08
Bolivia 86.67 1188.89 13.72
Brazil 158.33 636.38 4.02
Ecuador 195.56 195.56 1.00
Peru 190.90 190.90 1.00
Portugal 485 485 1.00
Trinidad and Tobago 252.92 1069.83 4.23
Venezuela 266.70 490.96 1.84

The starting salary at Repsol greatly exceeds the minimum salary in most countries. In the cases of Peru and Ecuador, the similarity between the two salaries is a consequence of the commitment we made in these countries to take on people who were previously outside workers as permanent members of Repsol's staff. Hence the increase in the work force in these countries in the last few years.

Social benefits

In 2011, our spending on social benefits in our largest countries of operation was as follows:

2010 2011
Healthcare 20,845,315 24,318,925
Meal vouchers 27,044,773 31,709,974
Funding for studies 2,730,436 2,432,867
Pension plan provision 35,206,247 34,502,631
Accident and death insurance 3,976,083 4,221,149
Loan subsidies 585,114 670,221
Personal transport 30,101,119 34,084,485
Total 122,751,341 131,940,253

The breakdown of spending on social benefits in our countries of significant activity is as follows:

Country (€) 2010 2011
Spain 61,291,973 62,547,193
Argentina 46,820,000 58,004,120
Ecuador 4,831,948 4,165,913
Peru 4,630,288 4,276,144
Portugal 5,177,132 2,946,882
Total 122,751,341 131,940,253

The significant increase in Argentina is due to the impact of growth in the average workforce in the YPF Group and the rising value of the Argentinean peso. The data for Portugal for the last two years are not comparable, as the way social benefits are calculated has been modified through an accounting reclassification.

(89) The behaviors, defined in 2006 and reviewed in 2011, comprise the competencies, values and styles of action that describe how Repsol employees must act to ensure that the company achieves its strategic goals. They provide a framework for the comprehensive management of our people.
(90) The number of 'people review' sessions fell noticeably because of a 2010 YPF initiative to review all of the posts of a large group of employees.
(91) The breakdown for online training by professional category is not available.
(92) Bolivia, Brazil, Chile, Cuba, Ecuador, Mexico and Venezuela
(93) Algeria, Canada, UAE, USA, France, Kazakhstan, Libya, Holland, Portugal, Switzerland and Trinidad and Tobago.
(94) Bolivia, Brazil, Chile, Cuba, Ecuador, Mexico and Venezuela.
(95) Algeria, Canada, UAE, United States, France, Kazakhstan, Libya, Holland, Portugal, Switzerland, Trinidad and Tobago.
(96) Minimum salary of lower category agreement.