Speaker: Luca Ferrazzi Construction Methods Dept. Manager Saipem S.p.a

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1 "ADDRESSING THE ISSUE OF AN AGING CONSTRUCTION MANAGEMENT AND SUPERVISION WORKFORCE: A STRATEGIC MODEL FOR OWNER, EPC AND GENERAL CONTRACTORS" Speaker: Luca Ferrazzi Construction Methods Dept. Manager Saipem S.p.a

2 Agenda Statistics Causes Consequences Saipem Initiatives Conclusion Q&A

3 STATISTICS HAYS - Oil & gas global salary guide 2013 Saipem

4 STATISTICS - SAIPEM CONSTRUCTION MANAGEMENT AND SUPERVISION AGE DEMOGRAPHICS Employee >55 32%

5 REASON OF THE PROBLEM Missing turnover with young people Scarce appeal for young people Lack of dedicated training courses Less sacrifice spirit Salary not competitive Credit crunch and instability Aging of people Europe problem Law changes in retirement Growth of construction Market

6 CONSEQUENCE OF THE PROBLEM Missing turnover with young people Skill gaps and transfer knowledge Generational gap Labour bottleneck Aging of people Motivation Career development Health problem Growth of Construction Market Cost escalation HOW TO SOLVE/MITIGATE?

7 STRATEGIES PREVENTIVE REMEDIAL

8 SAIPEM INITIATIVES Saipem Sinergia Project Saipem High School Graduated Program Health Campaign

9 SAIPEM SINERGIA PROJECT Maintaning the skill base with the creation of concrete job opportunities and to balance the aging/retirement Present the professional roles and job opportunities Develop a culture of knowledge transfer and mentoring Talent identification Medium/long term project Support to school on the definition of school program Starting from third class to the end of high school Involvement of all Saipem disciplines (Onshore/Offshore)

10 SAIPEM SINERGIA PROJECT PROJECT PRESENTATION TRAINING SELECTION TO THE AFTERNOON TRAINING MODULES SELECTION OF 30 PEOPLE SUMMER CAMP 4 MONTHS OF TRAINING FULL DAY Company recruitment

11 SAIPEM HIGH SCHOOL GRADUATED PROGRAM Transfer of knowledge and labour bottlenecks Focused on Direct hiring Sustainable integration of new employees with a mentoring system 1 Edition 23 people 50% international Mechanical, E&I, HVAC, painting and insulation, tanks, warehouse 2 Edition planned in this year for 30 people

12 SAIPEM HIGH SCHOOL GRADUATED PROGRAM PHASE 1 Construction Fundamentals 2 WEEKS PHASE 2 Site activities 6 WEEKS PHASE 3 Specialistic training 2 WEEKS PHASE 4 Construction management System 1 WEEK PHASE 5 Quality & HSE 4 DAYS PHASE 6 Training on the job 12 MONTHS

13 SAIPEM HEALTH CAMPAIGN

14 AGE MANAGEMENT INTERVENTION AREA Job Recruitment ENSURING GLOBAL PROJECT COMPETITIVENESS THROUGH Training and lifelong learning Career development CONCLUSION COMPREHENSIVE APPROACH Flexible working time practices Health protection and promotion and workplace design Redeploying older workers Employment exit & Transition to retirement

15 ROLES INVOLVED ENSURING GLOBAL PROJECT COMPETITIVENESS THROUGH National government CONCLUSIONS AGE MANAGEMENT Regional/local government Social partners Employers Employee

16 OTHER DEVELOPMENTS Introduction of demographic index and benchmarks by HR Skill shortage analysis Encourage age diversity Mentoring and transfer of knowledge Competence certification

17 Thanks Questions?

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