TRAINING and DEVELOPMENT POLICY AND PROCEDURE

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1 . Joannou & Paraskevaides Group Page: 1 of 11 POLICY AND ISSUE STATUS Issue Date: Issued for Use Revision Date: Revision No.: First Issue Action Position Name Issued By: QESH Document Controller K. Tsiakka Reviewed By: HRA Manager M. Andreou Reviewed By: Reviewed By: Company QESH Management Representative HR and Operations Department Director C. Kyriacou A. Michael Approved By: Chief Executive Officer G. Christofides

2 Page: 2 of 11 Table of Contents I. POLICY SCOPE PURPOSE FIELD OF APPLICATION AND RESPONSIBILITIES Chief Executive Officer HR and OPC Director HR and Administration Manager Senior HR Executive Department Managers Employees DEFINITIONS ABBREVIATIONS TRAINING PROCESS FLOWCHART TRAINING PROCESS DEVELOPMENT PROCESS Talent Development Process Career Path Succession Planning REFERENCES FORMS RECORDS REVISION DETAILS... 11

3 Page: 3 of 11 i. POLICY The policy of the Company is to invest in improving the safety and quality expertise of our employees and to ensure that all employees are trained and become sufficiently experienced to competently and effectively undertake their assigned activities and responsibilities. It is also the aim of the company to encourage its employees to make the most of learning opportunities, to realise their own personal enjoyment of their work, with a goal of achieving continual development of their skills. 1. SCOPE This procedure describes all actions and processes related to the training and development of all employees recruited for: Projects - Company - Staff, professionals, tradesmen, operators and labour as required for the execution of projects. Staff, professionals, tradesmen, operators and labour for support and operational needs. 2. PURPOSE The Company recognizes its responsibility towards enhancing the opportunity of employee s to develop skills and abilities which may enable them to fully perform within their respective position, and for their personal career advancement. The purpose of this procedure is to provide guidelines for training and development, so as to ultimately: 1. Increase performance/productivity 2. Improve quality 3. Help the company fulfil its future personnel needs 4. Improve organizational culture and enhance communication and teamwork 5. Develop employees personal growth 6. Improve employees morale 3. FIELD OF APPLICATION AND RESPONSIBILITIES Those responsible for the application of this procedure are the following: The Chief Executive Officer, The HR and Operations Department Director, The HR and Administration Manager, The Senior HR Executive, Department Managers or their representatives, Employees

4 Page: 4 of Chief E xecutive Officer To assure the Board of the Company that this policy and procedure is acted on through delegation to the appropriate business units. 3.2 HR and OPC Direc tor Is responsible for: Approving Corporate Training & Development Plan and the budget required. Reviewing the Return on Investment Analysis for necessary actions. 3.3 HR and Administration Manager Is responsible for: Finalising Corporate Training & Development Plan and the budget required for approval. Overseeing the implementation of the Training & Development Process. Evaluating actual results for recommendations. 3.4 S enior HR E xec utive Is responsible for: Grouping training needs. Organising and monitoring the training process and recommending improvements of the existing training procedure. Following up the completed training and presenting the actual results on employees performance for evaluation. Developing, monitoring and follow up the Talent s Development Plans. Developing, monitoring and following up the Succession Plans, as per instructions received. 3.5 Department Managers Are responsible for the following: Defining and requesting the departmental training needs Approving the training application form of the employee

5 Page: 5 of E mployees Are responsible for the following: With the assistance of their Head of Department or representative, identifying personal development and training needs. Making effective use of the training opportunities, guiding their own growth and development by consulting with their supervisors and pursuing personal career goals. Continuing to learn throughout their careers to improve their knowledge, skills, and abilities and to share these with other employees. 4. DEFINITIONS Training is defined as an organized activity aimed at imparting information and/or instructions to improve the recipient's performance or to help him or her attain a required level of knowledge or skill. Development is the process of developing employees and their skill sets so as to add value for the organization and for their own career development. In House Training is defined as any training that is held in company premises in order to educate, develop or improve employees skills. This involves all technical and soft skills courses that serve for this purpose. On-the-job training means training an employee to complete a task or function when they are already hired and working. 5. ABBREVIATIONS HR & OPC DEP : Human Resources and Operations Centre Department HR & OPC DIR : Human Resources and Operations Centre Department Director HRA MGR : Human Resources and Administration Manager SR HR EXEC : Senior Human Resources Executive IMS :: Integrated Management System

6 Page: 6 of TRAINING PROCESS FLOWCHART

7 Page: 7 of TRAINING PROCESS Department Managers or Heads shall identify training needs, taking into consideration the requirements of the position compared against the actual qualifications of the employee that currently holds the position and their performance and competence at fulfilling the requirements of the position following the evaluation of the employee, refer to Procedure P Performance Evaluation, and shall prepare a yearly schedule of training requirements using Form F 'Department Training and Development Plan', which shall be submitted to the HR & OPC DEP. The SR HR EXEC shall group the Training Needs for the entire Company using Form F 'Company Training and Development Plan' and submit this to the HRA MGR for finalisation who will forward it to the HR & OPC DIR for approval. Upon approval, the SR HR EXEC shall search for appropriate training courses and shall notify the Department Managers of availability and duration. Should the Department Manager decide that the evaluated employee requires or will benefit from additional training, a training application Form F 'Training Application' shall be completed by the employee and shall be sent to the SR HR EXEC for coordination of the training, such as enrolment of the participants and notifying the Department Manager and participant. On successful completion of the training, the participants shall fill in a training assessment form F 'Training Assessment ' for submission to the HR & OPC DEP along with the copy of the certificate/attendance record issued by the Training Body. Where training takes the form of On-the-Job training, the signature of the Trainer on the training attendance record shall be sufficient verification for the effectiveness of training provided. The SR HR EXEC shall follow up and request from the Department Managers the Actual Results of the training courses by completing the training results on employee performance and shall submit it for evaluation to the HR and OPC DEP. The SR HR EXEC shall check and submit all invoices with supportive documents to the HRA MGR for further processing. All Employees Training Records, Form F 'Employee Training Record' shall be kept updated by the HR & OPC DEP. Copies of any certificates shall be kept in the personal file of the employees. 8. DEVELOPMENT PROCESS Developing of skills begins with assessing which skills are important for the desired career development. All Staff should undergo self-evaluation, refer to Procedure P Performance Evaluation, using Form F 'Employee Self Evaluation', and shall discuss the outcome of this with his / her immediate supervisor or line manager so as to identify the types of skills that will help them move forward in their career.

8 Page: 8 of 11 Once an employee has identified the skills required to develop and achieve their career goals, they may then be able to identify how to develop their skills. The two main avenues for developing skills are through the following: Education and training, refer to section 7 above; Developmental experiences Development should follow the rule: 70% of development should come from on-the-job activities and action learning. This may include development experiences such as serving on a cross-functional work team, taking on a new task, job shadowing or job rotation. 20% of development should come from interactions with others. This includes working closely with a mentor, training others, serving as a leader. 10% of development should come from actual training. 8.1 Talent Development Process The Company shall ensure a talent 'Pipeline' in readiness for future challenges one which maximises the potential of both new and existing staff. It will provide the talents with the potential to realise their career dreams and develop their skills, through succession planning, opportunities to work across functions and countries and develop talent management and implement development activities. The Company shall use different methodologies such as the following, in order to attract, develop and retain people with the aptitude and abilities to meet not only the current requirements but also the future organizational needs: 1. The J&P 'Brand': J&P is one of the leaders in their industry/area and it s a great place to be developed professionally and make a difference. 2. Workforce planning: The projection and planning of access to talent with the skills and behaviours essential for the achievement of the company s objectives. 3. Recruiting: the ability to successfully attract and hire key talent for current and future organisational needs. 4. Professional development: Process of establishing training goals and plans that link to individual goal attainment, career planning, and possible succession planning

9 Page: 9 of 11 The HR & OPC DEP shall ensure the following necessary actions: 1. Identify talent: The HR & OPC DEP has the responsibility to identify talent through: 1.1 Performance evaluations. 1.2 Manager s observations on skills, abilities and competencies. 1.3 Some competency assessment tests may take place from time to time. 2. Group the talents and inform their Managers. The HR & OPC DEP shall inform officially the individuals and their managers with the Company s decision. 3. Development Plan: The SR HR EXEC shall prepare Development Plans for each talent taking into consideration their career paths and their next positions, for evaluation and approval using Form F 'Training and Development Plan'. 4. Monitor and follow up the Development Plans: The SR HR EXEC shall monitor and follow up on the Talent s Development Plans and submit any suggestions for amendments and necessary actions. 8.2 Career Path The Company shall use all the information provided by the organization's assessments of requirements, the assessments of performance and the management succession plans, and translate it in the form of individual career development programs and general arrangements for management development, career counselling, mentoring and management training. A career development plan is a win-win situation for employers and employees. The plan focuses on the employees needs for growth and development and through the Company s assistance the employees have the opportunity to grow their careers. This might include: 1. Organisational structures: How the organization structures the career progress of their members, and the individual s process for identifying job opportunities within the organization s structure. 2. Development plans: the sequential steps in education, skills, and experiencebuilding needed to attain specific career goals. The HR & OPC DEP shall ensure the following necessary actions: 1. Study the organisational structures of the departments and grades. 2. Design the career path of each department taking into consideration the structures of the departments and the grades of the company. 3. The HR & OPC DIR shall approve the career path.

10 Page: 10 of The HR & OPC DEP shall present to the departmental heads and employees the career path of their departments. 8.3 S uccession Planning The Company shall provide a succession-planning program that will aim to identify high growth individuals, train them and feed the 'Pipeline' with new talents. The desired results of the succession planning program are to: Identify high-potential employees capable of rapid advancement to positions of higher responsibility than those they presently occupy. Ensure the systematic and long-term development of individuals to replace key job incumbents as the need arises due to retirements, disabilities, deaths, and other unexpected losses. Provide a continuous flow of talented people to meet the Company s management needs. Meet the Company's need for representation and promotion, such as to authorities, organisations and prospective employers, public or private, by providing the necessary training and exposure to employees selected for succession. Succession planning has a scope of identifying significant leadership positions that could put the Company at risk if left unfulfilled, targeting current employees that could move into such roles and grooming them for succession. This might include two phases: 1. Phase One Identification of key positions, assessment of skills and competencies, communication and data collection and analysis. It also includes planning and conducting talent review meetings, identifying and documenting potential talent, and beginning planning. 2. Phase Two Tracking, monitoring and follow-up of the development plans, identification of two or more qualified candidates for each identified position. Measures of promotion, retention, and performance will yield success factors. The HR & OPC DEP shall ensure the following necessary actions: 1. Identify the leadership positions that could put the Company at risk if left unfulfilled. 2. Identify high potential employees to fulfil the leadership positions. 3. The HR & OPC DIR shall discuss with the current leadership position holders the suggested employee that will replace their positions in a future time.

11 Page: 11 of For Senior Executive Staff, the HR & OPC DIR shall discuss with the CEO and receive approvals on the above suggestions. 5. The HR & OPC DEP shall inform officially the potential employees and their manager on the Company s decisions 6. If there are no potential employees to fulfil the position then the HR & OPC DIR shall proceed to recruit a candidate that matches with the position s requirement, refer to Procedure P Selection and Recruitment. 7. Individual Succession Plans shall be developed by the SR HR EXEC for each employee for evaluation and approval. 8. The SR HR EXEC shall monitor and follow up the Succession Plans of the individuals and submit any suggestions for amendments and necessary actions. 9. REFERENCES P Performance Evaluation 10. FORMS F F F F F Department Training and Development Plan Company Training and Development Plan Training Application Form Training Assessment Form Employee Training Record 11. RECORDS All records shall be kept for Five (5) years. 12. REVISION DETAILS Revision 0 - First Issue.

Company QESH Management Representative

Company QESH Management Representative PROJECT MANAGEMENT Page: 1 of 8 PROJECT MANAGEMENT ISSUE STATUS Issue Date: 11-04-2016 Issued for Use Revision Date: 05-06-2017 Revision No.: 1 Action Position Issued By: Reviewed By: Reviewed By: Approved