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Saudi Aramco: Public Saudi Aramco: Public

Talent Challenges: Labor Market Perspective

Mohammed Al Sellemi, Director of Human Resources,

December 2014

Saudi Aramco: Public

Global HR Model

Emerging Challenges

Current Strategies

Strategic Recommendations

Outline


Global HR Model

A Holistic View


PTP Definition

Petro-technical Professionals (PTP)*: is a term which includes geoscientists (geologists, geophysicists, petro-physicists) and petroleum engineers (reservoir, drilling, completion, production engineers)

Definition and Data Sources

Disclaimer: All workforce insights and industry practices data in this presentation are developed and provided by:

Schlumberger Business Consulting Mercer Hays World Economic Forum International Labor Organization

Data Sources


On-Boarding Acquisition

& Selection

Continuous

Learning

&

Development

Skills

Training

Career Path

Definition

Measurement &

Appraisal Achievement

Advancement

& Recognition

Corporate Vision, Mission, & Goals

Corporate Competencies ( B & O Plans)

Continuous

Improvement

Job

Rotation

Coaching Mentoring

Counseling

Supervisory

Input

Job

Competencies

Succession

Planning

Evaluation

Performance

Planning

Compensation Labor Markets Corporate

Culture - DNA Benefits

Retirement

Global HR Model*

Corporate Workforce

Analytics and Planning

*Sellemi’s HR Model

Engagement


Criticality Classification

Critical A

Plant, equipment and/or technology specific. Not widely available.

Critical B

Industry specific. Available within O&G.

Critical C

Non-industry specific. Available within energy and industrial sectors.

Identifying PTP Talent


Emerging Challenges Current and Future States of the PTP Market


Emerging Challenges in Oil & Gas

Oil & Gas

LNGs

Petrochem

Mining

PTP talent acquisition is no longer limited to Oil & Gas.

A B C


At a global level, supply exceeds demand of graduates.

There is, and will continue to be, a deficit in the number of experienced PTPs ( Mid-Career ).

As a result, there will be a very high demand resulting in extreme industry competition for talent.

Realities of The Current PTP Market



0

2000

4000

6000

8000

10000

12000

PTP Graduate Global Recruitment Targets 2005 - estimated 2018

Global Demand for Graduates

Actual Demand Estimated Demand


Source: SBC


Geology/ Geophysics

Petroleum Engineering

North America

849

2127

Latin America

1217 1547

Middle East & N. Africa

1087 1225

N.E. Asia

5766

7862

S. Asia & Australia

2245 2224

Europe

1900 2141

Global Supply of Graduates 2012, Number of Graduating Students (Excluding China)

Sub-Saharan Africa

633 167

Russia & Caspian

1589 2195



Geology/ Geophysics

Petroleum Engineering

North America

35%

85%

Latin America

46%

71%

Europe

55% 62%

Graduate Willingness to Enter the E&P Industry 2012, % of Graduating Students

Russia & Caspian

66% 71%

Sub-Saharan Africa

65%

90%


65%

90%

N.E. Asia

52% 59%

S. Asia & Australia

65%

85%



Regions with Shortages

Net graduate supply Petroleum Engineers

Net graduate supply Geoscientists

Ongoing vacancies Petroleum Engineers

Ongoing vacancies Geoscientists

895

18

(250) (1065)

North America

680 875

(220) (500)

Europe

875 725

(225) (695)

Russia & Caspian

645 480

(100) (465)

Latin America

(840) (1025) (1505)

Sub-Saharan Africa

(1345) (275) (580)

(1330)


130

(510)

575

(125)

(1045)

AsiaPac

Net Supply of Graduates vs. Vacancies 2012, Number of Net Supply of Graduate Students (Excluding China)



40% of Petroleum Engineers are Production Engineers 215,500*

Petroleum Engineer

4,300 Project

Engineer

32,300 Completions

Engineers

56,000 Drilling/Well

Engineers

79,700 Production Engineers

43,100 Reserves Engineers


Petro-tech Drilldown

Source: Mercer

*Estimated based on a 2013 sample of 215,500 PEs out of 1.6mm oil and gas workers.



Total Global PTP Population in Upstream

138,400 PTPs

Source:SBC

62%

38% Petroleum Engineering

Geosciences

Discipline Age

26%

43% Over 35 Experienced

57% Below 35



In 2018, the global pool of experienced PTPs will decrease by

4% While global recruitment plans

require 40% more…



0% 10% 20% 30% 40% 50% 60% 70%

Shipping/Maritime leaders

Sales and traders

Finance managers

Upstream technicians

Upstream project managers

Geoscientists

Plant/Operations technicians

Plant/Operations managers

Plant/Operations Eng.

Petroleum Engineers

Experienced

New

Both

65%

61%

55%

53%

50%

49%

42%

32%

31%

18%

Upstream Anticipated Talent Gaps by Job

Source: Mercer



8%

8%

12%

15%

15%

15%

19%

23%

23%

35%

38%

38%

46%

50%

69%

69%

77%

Cement Technician

Subsea Technician

Drilling Fluid Technician

Cement Engineer

Junior Completion Engineer –office based

Junior Completion Engineer –rig based

Junior Drilling Engineer –office based

Drilling Fluid Engineer

Junior Drilling Engineer –rig based

Subsea Engineer

Drilling Manager

Senior Completion Engineer –rig based

Senior Drilling Engineer –rig based

Drilling Superintendent

Drilling Supervisor (‘company man’)

Senior Completion Engineer –office based

Senior Drilling Engineer –office based

Drilling Jobs at Risk of Shortage

Source:SBC



Local Content in Drilling Positions Among Majors

29% 30% 28% 42% 43%

64% 62% 71% 80%

71% 70% 72% 58% 57%

36% 38% 29% 20%

Local Expat

Source: Mercer


Current Strategies

A View of the Industry’s HR Strategies and Practices


Current Strategies

3.5

2.0

North America

3.5

8.0

3.0

8.0

Young National Graduates

Young Expatriate Graduates

2.8 2.2

Europe

3.0

2.0



2.8 2.8 3.5

4.0


3.5



6.0 6.0

3.2 3.0

Asia (without China)

3.2



3.0 3.0 3.0

5.3

2.0

Sub-Saharan Africa

5.8


4.5

Latin America

5.8


5.0

Youth Average Duration of Recruitment

2010 2011 2012


Current Strategies

Midcareer Average Duration of Recruitment

North America 4.7

2.8 4.0

Midcareer Nationals

Midcareer Expatriates

2.5 2.5 2.5 2.9

3.3

Europe

Midcareer Nationals


3.3 3.9 4.0 3.6

3.5 4.0


3.5 5.0 5.0

Midcareer Nationals


4.0

Sub-Saharan Africa

6.0 5.0

Midcareer Nationals


2.3

4.7

2.5 3.0 3.2 3.0

Asia (without China)

3.4 3.7 3.8

Midcareer Nationals


4.0

2010 2011 2012


Current Strategies

0.7

1.2

0.7 0.7 0.7

1.1

0.3

1.5

1.2

0.7

1

1.5

1 1 1.1

1.4

0.9

1.4

0.9 1 1

Lack of structureddevelopment program

Lack of coaches Senior PTP mindest Lack of job rotationopportunities

difficulty planning jobrotations

Lack knowledgemanagement/transfer

Lack of seniormanagement gudiance

Independants Majors NOCs

Barriers to Reducing Time to Autonomy 2= Highly Critical, 1= Critical, 0= Not Critical

Source: SBC


47%

22%

13% 9%

6% 3%

Current employeesfrom other oil and gas

companies

Experienced hires fromoutside oil and gas

industry

Contractors/Temporaryworkers/Outsource

function

Colleges/Universities2 Retirees from other oiland gas companies

Retirees from yourorganization

.

% of external hires

Expected to increase

Expected to remain unchanged

Current Strategies

Current and Planned Sourcing Strategies

*Mercer Source: Mercer


Strategies for Filling Open, Experienced Positions

Current Strategies

% of open positions filled

44% 33% 28%

56% 67% 72%

0%

100%

2006 2013 2014

Build

Buy Buy – hire workers

from outside your

organization

Build – promote,

train, or transfer

existing employees


Main Attraction and Selection Strategies Adopted by The Industry

Current Strategies

Expanding recruiting channels (online, career fairs, social media, etc.)

84% Improving

competitiveness of employment package (higher compensation,

benefits, etc.)

61%

Online job boards

56%

Using a recruitment process outsourcing

provider

41%

Changing perceptions of company or industry

via marketing and public relations

33%

Increasing recruitment efforts across other

countries

22%

Expanding contract recruiting

18%

other

7%


29%

36%

43%

46%

64%

76%

Peer best pratices sharing

Mentorship for new employees

Developing IT systems for knowledgetrasnfer/management

Developing alternative career paths orexpanding options

Expanding training and educationalinstructionavailable to the workforce

Targeting T&D plan to individual needs

Training and Development Strategies by Industry

Current Strategies


14%

16%

23%

34%

38%

45%

63%

Rehiring retirees as full-time employees

Prolonging time to retirement

Re-engaging retirees on a non-full-time basis

Offering dual career paths —technical/nontechnical

Implementing retention bonuses

Developing more flexible work schedules

Improving job quality

Retention Strategies by Industry

Current Strategies



Transforming Challenges to Opportunities



Collaborative Model Establishment 1

Industry collaboration among peers

• Talent Sharing: Retain talents within industry.

• Industry Practices and case sharing (e.g., HSSE).

Industry collaboration with educational institutions

• Curriculum Design: Strategically align educational content with professional and managerial applications by incorporating practical and realistic curriculum elements (e.g., field work, visiting instructors, etc…).



2 Strategic HR Focus

Robust Workforce Planning

Time to Autonomy Acceleration

Hiring Standards Leveling for Graduates

• Quality Input Data • Proactive and Intelligent Planning

• HRD (e.g., Mentorship) • Collaboration with universities

• Moving away from high-GPA and top school based evaluations to competency based.



3 Complementary Technologies

Human Capital

Advanced Technological

Enablers

.

• Automation where applicable.

• Eliminate non-productivity due to talent shortage.

• Increase accuracy and minimize errors.


At a global level, supply exceeds demand of graduates.

There is, and will continue to be, a deficit in the number of experienced PTPs (Mid-Career) which requires increasing the pool of talents and improving Time-To- Autonomy.

Retaining talents within the industry is critical for long term success (reduce turnover rate in systematic and proactive fashion).

There is a need to work collaboratively at regional level among peers, academia and training institutes.

Summary- Collaborative Model

Saudi Aramco: Public Saudi Aramco: Public

Thank You

talent challenges: labor market perspective › wp-content › uploads › 2014 › 12 ›...

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