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Slb — Schlumberger Business Consulting — SBC 2013 HR Benchmark Forum

34 slides from Slb's conference presentation, July 2014

  1. Slide 1: SBC 2013 O&G HR Benchmark Key Insights

    SBC 2013 O&G HR Benchmark Key Insights Paris July, 2014 0 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  2. Slide 2: Agenda

    AGENDA  Next challenges for E&P  Tension on mid-careers  Leadership needs  Employee Value Propositions  Concluding remarks 1 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  3. Slide 3: Next challenges for E&P

    Next challenges for E&P 2 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  4. Slide 4: The industry has reverted the declining trend in oil discoveries

    The industry has reverted the declining trend in oil discoveries 5-YEAR AVERAGE OIL DISCOVERED VOLUME AND CRUDE OIL PRICES Billion bbl, 2011 USD Source: IHS Edin, Rystad Energy; BP Statistical Review; SBC analysis 3 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  5. Slide 5: More companies manage mega-budgets and project delays are increasing

    More companies manage mega-budgets and project delays are increasing E&P COMPANIES SPENDING >$5BN (2011 US$) CAPEX PER YEAR AND MEGA-PROJECTS1 DELAYS # of companies, years of delay Note: 1. Projects with budget >$1bn (real 2011$) Source: IHS Upstream database, February 2012; Rystad Energy; US PPI 4

  6. Slide 6: Main project challenges are internal to Oil & Gas companies

    Main project challenges are internal to Oil & Gas companies MAIN CHALLENGES FACED BY COMPANY Normalized % of Survey replies Challenges internal to the Safety & environment organizations Technical & economic challenges 6% 8% People & organisation External stakeholders 30%  Talent availability / skil

  7. Slide 7: Industry demographics lead to three distinct challenges

    Industry demographics lead to three distinct challenges PTPs PER AGE BRACKET ON A GLOBAL BASIS Percentage of PTPs Note: Excluding China and oilfield services companies Retirement rate: 20% for 55y-59y, 50% for 60y-64y, 70% for 65y+ Recruitment targeted inputted in the demographic profiles as follows

  8. Slide 8: Background of the 2013 HR Benchmark

    Background of the 2013 HR Benchmark 7 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  9. Slide 9: SBC HR Benchmark & Forum: a strong contribution to the O&G industry

    SBC HR Benchmark & Forum: a strong contribution to the O&G industry Quantify Supply & The Supply PTP Intensity™… Demand of Chain of Petrotechnical Talent™ Professionals Time to Blended (PTPs)… Autonomy Learning 2004/5 2006/7 2008 2009 2010 2012 In front of the crisis, privately-owned companies have

  10. Slide 10: Strong participation in the 2013 SBC HR Benchmark and Forum

    Strong participation in the 2013 SBC HR Benchmark and Forum E&P COMPANIES PARTICIPATING TO THE E&P COMPANIES PARTICIPATING TO THE HR BENCHMARK (2010-2013) 2013 HR FORUM  147 participants  49 companies 17% 18% 29% 3% 45% 7% 7% 35% 18% 23% Majors NOCs Africa Europe OFS Independents North America Asi

  11. Slide 11: Tension on mid-careers

    Tension on mid-careers 10 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  12. Slide 12: Tension is increasing for almost all engineers…

    Tension is increasing for almost all engineers… WHAT IS YOUR COMPANY’S PERCENTAGE OF VACANCY PER DISCIPLINE? 2011-2012, Average percentage among panel1 Note: 1. The 2012 statistics represent 70% of the companies used for the 2011 statistics. Excluding China and oilfield service companies 2. Geoscien

  13. Slide 13: …as a consequence, demand for mid-careers will remain strong

    …as a consequence, demand for mid-careers will remain strong MID-CAREER RECRUITMENT TARGETS (2012-2018) Normalized, average recruitment target per peer group 200 Independent 180 Major NOC 160 140 120 100 80 60 2012 2013E 2014E 2015E 2016E 2017E 2018E Note: Excluding China and oilfield service compan

  14. Slide 14: Attrition should stay high

    Attrition should stay high ATTRITION RATE BY COMPANY TYPE 2009-2013e, Average percentage per peer group 8.9% 7.7% Independents Majors 5.8% 4.8% NOCs 3.8% 5.0% 3.8% 3.7% 3.0% 3.5% 2.5% 3.8% 3.1% 2.8% 2.1% 2009 2010 2011 2012 2013e Note: Excluding China and oilfield service companies 1. Same panel of

  15. Slide 15: The deficit of experienced PTPs will ease after 2016

    The deficit of experienced PTPs will ease after 2016, but the industry will have to operate with less than desired EXPERIENCED PTPS VARIATION FROM 2012 TO 2018 2012-2018, Number of PTPs older than 35 years old 108,000 84,000 76,700 1,250 Experienced PTP Deficit 75,300 750 650 250 200 2013 2013 2014

  16. Slide 16: The planned intake of new PTPs will narrow the existing overall gaps

    The planned intake of new PTPs will narrow the existing overall gaps in the industry 50,000 156,400 159,900 147,500 3,500 138,400 9,100 32,000 2012 2012 2012 Flows Flows 2018 Gap 2018 Needs Vacancies Headcount Out* In* Projections Needs** (*) based on 2013 HR survey data (**) based on IEA New Polici

  17. Slide 17: Leadership needs

    Leadership needs 16 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  18. Slide 18: Leadership shortage occurs in many places

    Leadership shortage occurs in many places HOW DO YOU ESTIMATE ADEQUACY OF LEADERSHIP COMPETENCIES BY KEY LEADERSHIP POSITION TYPES? 2013, Average of respondents considering at least “some shortage” 71% 80% 80% 60% 29% 29% 40% 14% EUROPE NORTH AMERICA NO TENSION 0% 0% 0% 0% MIDDLE EAST & NORTH AFRICA

  19. Slide 19: SBC has surveyed the age distribution of leaders in the industry…

    SBC has surveyed the age distribution of leaders in the industry… LEADERSHIP LEVEL DISTRIBUTION OF LEADERS AMONG THE POPULATION DESCRIPTION % of PTP population1, % of age group2 Top leaders 30  Top executives 20  Division/Department managers 10  Large Asset/Capital Project managers 2% 0 Confirmed

  20. Slide 20: …and found the industry will have to generate 60% more PTP leaders

    …and found out that the industry will have to generate 60% more PTP leaders over 2013-2017 than in the past four years LEADER REQUIREMENT PER YEAR 2005-2017, Average number of experienced PTPs +60% +20 / 45% 2005-2009 2009-2013 2013-2017 Note: Retirement rate at 20% for 55-59 age group, 50% for 60-6

  21. Slide 21: Consequences

    Consequences 20 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  22. Slide 22: Companies tailor their PTP population to meet their strategy

    Companies tailor their PTP population to meet their strategy PTPS BY DISCIPLINE VS. RESERVES AND OPERATED PRODUCTION1 2012, Numbers of PTPs, Reserves in mmboe, Operated Production in kboe/d # of PTPs n3 Oil-weighted2 R² = 0.96 Reservoir Product & effect Production Eng. 0 n2 Gas-weighted R² = 0.95 Dr

  23. Slide 23: Despite increasing project engineers and capex, companies face staffing difficulties

    Despite increasing number of project engineers and capital investment, companies face staffing difficulties that have strong impact on projects NUMBER OF PROJECT ENGINEERS AND CONSEQUENCES OF STAFFING CAPEX IN PANEL1 DIFFICULTIES 2011-2012, percentage, number and $Million 2012, percentage of panel r

  24. Slide 24: PTPs' vacancies are increasing across the board, except for North America

    PTPs’ vacancies are increasing across the board, except for North America VACANCY TREND BY DISCIPLINE AND BY REGION1 2011-20122, Average percentage of respondents MIDDLE EAST AFRICA Note: Excluding China and oilfield service companies 1. Vacancy data is not available for both years from South Americ

  25. Slide 25: Scarcity of resources impact business performance everywhere

    Scarcity of resources impact business performance everywhere WHAT ARE THE CONSEQUENCES OF STAFFING DIFFICULTIES? 2013, Average of answers1 Note: 1. Answers are graded as follows: 0 being “No impact”, 1 being “Some impact” and 2 being “Strong impact” Source: SBC O&G HR Benchmark 2013 24 © 2014 Schlum

  26. Slide 26: Outsourcing is the first option chosen to address staffing difficulties

    Outsourcing is the first option chosen to address staffing difficulties HOW DO YOU MITIGATE STAFFING DIFFICULTIES? 2011-2013, Average percentage of respondents using solutions Source: SBC O&G HR Benchmark 2013 25 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  27. Slide 27: Employee Value Propositions

    Employee Value Propositions 26 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  28. Slide 28: Employees have different elements driving their professional life

    Employees have different elements driving their professional life PROFESSIONAL DRIVERS MATRIX 2013 Social Rewards1 Idealists Specialists “Looking for high responsibility Professional “Knowledge driven and looking success and level and corresponding for recognition among their compensation and statut

  29. Slide 29: Companies focus on attracting specific employee personalities but overlook the core

    Companies focus on attracting specific employee personalities but tend to overlook the core CHARACTERISTICS OF YOUR EVP TO ATTRACT CANDIDATES 2013, Mapping of EVPs1, % of companies targeting professional groups Social “Recognition” “Great career Rewards “Personal growth and opportunities” developmen

  30. Slide 30: Different causes for voluntary attrition across population segments

    There are different causes for voluntary attrition across population segments KEY REASONS FOR VOLUNTARY ATTRITION IN YOUR COMPANIES 2013, Mapping of key attrition reasons1 Social Lack of 1.8 1.7 Lack of career Rewards interest in opportunities the Job Professional Specialists Idealists success and s

  31. Slide 31: Best in class companies have a flexible Employee Value Proposition

    Best in class companies have a flexible Employee Value Proposition to attract and retain each segment POPULATION MATRIX FOLLOWING PROFESSIONAL NEEDS 2013 Social Rewards Professional Specialists Idealists success and social status Long term career Flexible plan EVP Recognition The Core Opportunists J

  32. Slide 32: Concluding remarks

    Concluding remarks 31 © 2014 Schlumberger Business Consulting. All Rights Reserved.

  33. Slide 33: Three HR levers to support O&G Industry needs

    Three HR levers to support O&G Industry needs PTPs PER AGE BRACKET ON A GLOBAL BASIS Percentage of PTPs Note: Excluding China and oilfield services companies Retirement rate: 20% for 55y-59y, 50% for 60y-64y, 70% for 65y+ Recruitment targeted inputted in the demographic profiles as follows: 40% in 2

  34. Slide 34: Key takeaways from 2013 HR Benchmark

    Key takeaways from 2013 HR Benchmark THE SUPPLY CHAIN OF TALENTTM Plan future needs • The deficit of experienced petrotechnical professionals will ease only after 2016 Manage inflow Integrate & develop Allocate & • The right utilize Manage outflow EVP matters • The industry will have to integrate •

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