Performance management

Our performance management system represents an essential component for the alignment of each employee with Galp’s strategy, objectives, and corporate values.

Performance management model

Galp defined a new performance management model based on a continuous feedback culture.

Among the main changes introduced by the new model, the following stand out:

  • its universality;
  • its focus on people's motivation and development;
  • an orientation towards meritocracy and differentiation;
  • its coherence and integration;
  • its objectivity.

Thus, the new model particularly values the behavioural skills, which are directly related to Galp’s values because of the importance given to "how it is done" and not just "what one does". Finally, the model's ability to differentiate the degree of responsibility in achieving the objectives is also worth noting.

Stages of the performance mode

In 2017, the performance assessment process covered approximately 98% of Galp’s employees.

Also, approximately 90% of the 602 members of managerial staff were assessed according to the 360º methodology, totalling 783 employees as of 2017.

Long-term and sustainability incentives

At Galp, we have considered sustainability factors in assessing the performance of employees, using the so-called EQSS Factor (Environment, Quality, Safety and Sustainability).

Galp should assure the protection of people, the environment and assets in all the geographic areas in which it operates. This is an essential requirement for the creation of sustainable value. Therefore, it is important to measure and distinguish performance at this level.

This commitment aims to implement a cross-accountability culture of the Organisation towards our Sustainability goals and commitments, ensuring the commitment of Management and the encouragement of deep integration of EQSS aspects in our daily activities.

Consequently, the EQSS factor, which consists of a set of indicators, is reflected in the variable remuneration resulting from the evaluation of the employees' performance, through the application of a positive or negative factor.

We also apply three-year incentives to our top managers, based on financial and non-financial indicators. Thus, we have succeeded in retaining talent among managers and spurred our commitment to achieving our strategic objectives.

Compensation strategy

In 2017, we launched the Got It programme to promote recognition, namely through peer credits, in which colleagues can compliment each other, in an organic and spontaneous manner.

For us Recognizing is:

  • reinforce and encourage desired behaviours and attitudes,in line with Galp's culture and values;
  • reinforce and encourage commitment to, and focus on Galp's strategy, objectives and mission, creating a sense of belonging; 
  • stimulate excellent performance, independently from the performance evaluation, for meeting targets, participation in projects;
  • encourage continuous feedback and, in particular, positive reinforcement;
  • strengthen employer branding and pride in working for Galp;
  • build closer relationships between employees and reinforce teamwork;
  • improve the environment and the sense of trust and partnership in the organisation;
  • stimulate recognition and pride in being recognised, as a way of encouraging improvements in performance and employee involvement in the company.

During 2016, Galp's started to redefine our reward strategy, exploring the application of the total compensation concept. In this way, we aim to broaden the reward scope beyond the concept of basic remuneration.

Further information about human capital