IMPACT OF ENERGY TRANSITION ON HUMAN RESOURCE MANAGEMENT

Transcription

1 IMPACT OF ENERGY TRANSITION ON HUMAN RESOURCE MANAGEMENT VERSION 1 May 18, 2017

2 INTRODUCTION In a disrupted business environment, our future depends on empowering today s workforce in different ways that we are only starting to discover Agile organizations look for signals, listen to employees, learn and adopt Key Question: How can employers make work attractive for employees in Energy industry? No. 1

3 THEY HAVE DIFFERENT QUESTIONS IN MIND FOR THE JOB Am I contributing to company s growth? Show me my value Understand my unique competencies Is the job cool? Help me invest in my self Simplify your decision-making No. 2

4 ENERGY INDUSTRY PERCEPTION Many recent surveys indicate that people generally do not have a positive perception about the industry. Jobs are seen as exhausting & not rewarding. Jobs are mismatching with their qualifications. Better opportunities offered by other industries Money is no longer the only driver for them. Energy industry become complacent. Companies that not only recognize this, but also adapt to meet these demands, are having a more engaged and productive staff. No. 3

5 KEY PILLARS TO OVERCOME CHALLENGES EFFECTIVE TALENT ACQUISITION RETENTION PROGRAMS STRATEGIC WORKFORCE PLANNING No. 4

6 EFFECTIVE TALENT ACQUISITION

7 EFFECTIVE TALENT ACQUISITION The dramatic changes in industry create a significant challenge in aligning human capital resources with market demands. Market fluctuations impacts the workforce demand & supply in different areas Shrinking pool of available talents. Increasing the war for talent by extending competition beyond local, and even national, labor markets. No. 6

8 TALENT OUTLOOK Shortfall of experienced technical professionals over the next several years due to natural attrition In this region employers are expecting large waves of retirees over the coming years. A strong correlation between the number of technical professionals a company employs and the growth of its production Staffing issues will have serious consequences on projects and production capacity, leading to potential delays and driving decision makers taking more risk No. 7

9 2025 REGIONAL TALENT SUPPLY & DEMAND FORECAST Source: Mercer Oil & Gas Talent Outlook No. 8

10 MINDSET SHIFT IN MANAGING TALENT ACQUISITION Exploring talent out of the industry to cope with the dynamic change and competition. Focusing on talent communities rather than a single industry. Data mining is necessary for fact based decisions e.g. labor market conditions, international mobility trends, employment shifts, employment trends in industries, and the focus on talent with transferrable skills. Initiate programs to accelerate internal talents development: Succession planning Knowledge transfer programs An accelerated executive leadership program An emerging leaders program to identify younger talent No. 9

11 REBRANDING OF THE COMPANY S RECRUITING STRATEGY AGILE ORGANIZATIONS LOOK FOR SIGNALS, LISTEN TO EMPLOYEES, LEARN AND ADOPT No. 10

12 TAGLINE OF WHAT SABIC STANDS FOR WE BELIEVE IN CHEMISTRY. NOT JUST MOLECULES, BUT AMONG PEOPLE, TOO. BECAUSE WHEN THE BEST MINDS GET TOGETHER, ANYTHING IS POSSIBLE. AT SABIC, WE CALL THIS COLLABORATION: No. 11

13 SABIC s EMPLOYER BRAND THEME PEOPLE WHO CAN We ve always believed that it takes special people to make a difference. They need ingenuity, brilliance and the freedom to turn their ideas into reality. At SABIC, this is our culture. We find open-minded, gifted and questioning people and create the conditions for their talent to flourish. No. 12

14 EMPLOYER VALUE PROPOSITION No. 13

15 RETENTION PROGRAMS

16 RETENTION PROGRAMS Today s workforce is more digital, more global, diverse, automation oriented, and social media proficient. At the same time, business expectations, needs, and demands are evolving faster than ever before. The need for certain skills can change dramatically within a year. The degree to which HR organizations anticipate these changes can determine the difference between being ready to support the company s growth or hindering it due to a lack of skilled workforce No. 15

17 POTENTIAL IMPACTS OF NEGATIVE ATTRITION FINANCIAL IMPACT Represents a significant expense impact beyond the cost of of the employee who left SAFETY PERFORMANCE An increase in recordable safety incidents BUSINESS INTERRUPTION Business interruption or unplanned downtime of critical equipment. KNOWLEDGE LOSS Potential risk of loosing valuable knowledge in the organization INCREASED AMBIGUITY The volatility we have experienced in energy markets is likely to continue. COMPANY BRAND High attrition rates might be perceived as sign of unhealthy working environment In an age of disruption, business and HR leaders are being pushed to rethink how they organize, recruit, develop, manage, and engage the workforce. No. 16

18 REINFORCING RETENTION Leaders must now embrace new ways of thinking about their companies, their talents and their role in global social issues. They are turning to new organizational models that: Highlight the networked nature of today s world of work Innovation-based HR platforms Learning and career programs driven by social and cognitive technologies Employee experience strategies that put the workforce at the center Some have turned to blunt retention instruments such as: Pay increases and Competitive incentive awards Business & HR leaders can no longer continue to operate according to old paradigm. No. 17

19 CAREER DEVELOPMENT HAS THE HIGHEST IMPACT ON EMPLOYEE RETENTION Lack of career opportunities is the top reason for any employee to leave the job Companies are building career advancement strategies as a cost-effective way for retaining employees Similar initiatives raise employee morale and makes them more loyal towards the organization No. 18

20 DNA OF SABIC PROFESSIONAL CAREERS No. 19

21 MY SABIC JOURNEY No. 20

22 STRATEGIC WORKFORCE PLANNING & ANALYTICS

23 STRATEGIC WORKFORCE PLANNING & ANALYTICS Traditionally, organizations have focused on data integrity and reporting. The BIG Data is going to change the life of professionals now. A lot of information which was difficult for HR to obtain is now on the fingertips Today, HR organizations are able to account for variables such as regulatory changes, economic outlook, and labor supply shortages HR organizations within the energy industry are starting to effectively use data analytics to help identify, recruit, retain, and develop skilled talent. HR leaders were able to better understand how internal and external drivers would likely affect the workforce in the coming years. Then shape their talent management approach accordingly Transitioning from a reactive HR organization to a more proactive one that anticipates what could happen in the future and takes required action. No. 22

24 ALIGNING WORKFORCE PLANNING WITH FUTURE DEMAND Workforce analytics process consisting of aligning workforce planning with future demand. Capitalize on industry s extensive experience using predictive modeling to forecast their workforce needs. Workforce analytics offer a fact-based approach to addressing workforcerelated issues, Where would they find workers to meet the demand? What kinds of recruiting strategies would they use to fend off competition from others? Would they be able to draw on internal resources located elsewhere? Insights and trends uncovered through workforce planning and analytics approaches provide the opportunity to create targeted programs that yield tangible results No. 23

25 INITIATING SWP First step by asking some critical, forward-looking questions: Based on the company s growth objectives, is the increase in production and development demand projected, sustainable from a talent perspective? If not, how much does supply lag demand? How can we address this gap? Detailed workforce needs analysis focuses on four specific areas: Labor supply projections Production and labor demand forecasting Comparable industry and community mapping Educational Supply Statistics No. 24

26 Thank You No. 25