5 key talent

management

strategies energy

companies should

implement now

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KPMG INTERNATIONAL

KPMG GLOBAL ENERGY INSTITUTE

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

2

With the spate of payroll reductions and project postponements that have come

in the wake of falling oil and commodity prices, energy and natural resources

(ENR) companies may be lulled into thinking that their talent crisis has been

solved. If it were only so easy.

A wave of retirements, combined with a shortage of suitable replacement

candidates, has left many companies scrambling to fill the skills gap.

Introduction

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

3

In our report, KPMG International identifies

five key talent management strategies that

ENR companies should implement now – and

questions businesses can ask themselves – to

deal with the talent crisis over the long term.

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

4

Key talent management

strategies companies

should implement now

Define your strategic workforce planning model

Make the most of analytics

Manage third parties more actively

Safeguard knowledge

Rethink the employee value proposition

5

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

5

Define your

strategic workforce

planning model1

Develop a structured approach to identifying your strategic talent needs

Take an innovative approach to sourcing critical skills

Actively develop skills to ensure future needs are met e.g. training, mentorship programs

Companies need to

take a strategic

approach to talent

management, even as

they react to the

current slide in oil

prices.

“ “

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

6

Make the most of

analytics2

Leverage new analytical tools to:

Identify major gaps in skills, succession and performance

Help predict potential gaps so they can be prevented

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

7

Manage third parties

more actively3

Pay more attention to third party talent

Broaden talent measurement to include third party suppliers

Take a proactive approach to ensuring key knowledge is transferred from contractors to permanent employees

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

8

Safeguard

knowledge4

Invest in knowledge management by actively capturing and organizing it for future use

Disseminate knowledge to the areas of greatest need

Take into account how the next generation learns e.g. peer-to-peer programs, make a game of learning, utilize social media

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides

no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind

any member firm. All rights reserved.

9

Rethink the

employee value

proposition

5

HR should work with the business to redefine the ‘deal’ that the organization offers its employees to create a link between the company’s purpose and the individual’s value system

Consider non-monetary incentives and talent retention approaches

You can’t have one value

proposition for every

employee. Different

groups, different

generations, require

different propositions.

“ “

© 2015 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International.

KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor

does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG name, logo and “cutting through complexity” are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide

accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one

should act on such information without appropriate professional advice after a thorough examination of the particular situation.

For more information and to download the full report, visit:

kpmg.com/ENRtalentkpmg.com/energy

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