Impact of Energy Transition on Human Resource Management ?· impact of energy transition on human resource…

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IMPACT OF ENERGY TRANSITION ON HUMAN RESOURCE MANAGEMENTVERSION 1 May 18, 2017No. 1INTRODUCTION In a disrupted business environment, our future depends on empoweringtodays 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. 2THEY HAVE DIFFERENT QUESTIONS IN MIND FOR THE JOB Am I contributing to companys growth? Show me my value Understand my unique competencies Is the job cool? Help me invest in my self Simplify your decision-makingNo. 3ENERGY INDUSTRY PERCEPTIONMany recent surveys indicate that people generally do not have a positiveperception about the industry.Jobs are seen as exhausting & not rewarding.Jobs are mismatching with their qualifications.Better opportunities offered by other industriesMoney 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. 4KEY PILLARS TO OVERCOME CHALLENGESRETENTION PROGRAMSEFFECTIVE TALENT ACQUISITIONSTRATEGIC WORKFORCE PLANNINGEFFECTIVE TALENT ACQUISITIONNo. 6EFFECTIVE TALENT ACQUISITION The dramatic changes in industrycreate a significant challenge inaligning human capital resources withmarket demands. Market fluctuations impacts theworkforce demand & supply indifferent areas Shrinking pool of available talents. Increasing the war for talent byextending competition beyond local,and even national, labor markets.No. 7TALENT OUTLOOK Shortfall of experienced technical professionals over the next several yearsdue to natural attrition In this region employers are expecting large waves of retirees over the comingyears. A strong correlation between the number of technical professionals a companyemploys and the growth of its production Staffing issues will have serious consequences on projects and productioncapacity, leading to potential delays and driving decision makers taking moreriskNo. 82025 REGIONAL TALENT SUPPLY & DEMAND FORECASTSource: Mercer Oil & Gas Talent OutlookNo. 9MINDSET SHIFT IN MANAGING TALENT ACQUISITION Exploring talent out of the industry to cope with the dynamic change andcompetition. 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 inindustries, 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 talentNo. 10REBRANDING OF THE COMPANYS RECRUITING STRATEGYAGILE ORGANIZATIONS LOOK FOR SIGNALS, LISTEN TO EMPLOYEES, LEARN AND ADOPTNo. 11WE 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:TAGLINE OF WHAT SABIC STANDS FORNo. 12SABICs EMPLOYER BRAND THEMEPEOPLE WHO CANWeve always believed that it takes special people to make a difference.They need ingenuity, brilliance and thefreedom 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. 13EMPLOYER VALUE PROPOSITIONRETENTION PROGRAMSNo. 15RETENTION PROGRAMS Todays workforce is more digital, more global, diverse, automation oriented,and social media proficient. At the same time, business expectations, needs, and demands are evolvingfaster than ever before. The need for certain skills can change dramatically within a year.The degree to which HR organizations anticipate these changes candetermine the difference between being ready to support the companysgrowth or hindering it due to a lack of skilled workforceNo. 16BUSINESS INTERRUPTION Business interruption or unplanned downtime of critical equipment.POTENTIAL IMPACTS OF NEGATIVE ATTRITIONKNOWLEDGE LOSS Potential risk of loosing valuable knowledge in the organizationINCREASED AMBIGUITYThe volatility we have experienced in energy markets is likely to continue.FINANCIAL IMPACTRepresents a significant expense impact beyond the cost of of the employee who leftSAFETY PERFORMANCEAn increase in recordable safety incidentsIn an age of disruption, business and HR leaders are being pushed to rethinkhow they organize, recruit, develop, manage, and engage the workforce.COMPANY BRAND High attrition rates might be perceived as sign of unhealthy working environment No. 17REINFORCING RETENTIONLeaders must now embrace new ways of thinking about their companies, theirtalents and their role in global social issues. They are turning to neworganizational models that: Highlight the networked nature of todays 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 centerSome have turned to blunt retention instruments such as: Pay increases and Competitive incentive awardsBusiness & HR leaders can no longer continue to operate according to oldparadigm.No. 18CAREER DEVELOPMENT HAS THE HIGHEST IMPACT ON EMPLOYEE RETENTION Lack of career opportunities isthe top reason for any employeeto leave the job Companies are building careeradvancement strategies as acost-effective way for retainingemployees Similar initiatives raise employeemorale and makes them moreloyal towards the organizationNo. 19DNA OF SABIC PROFESSIONAL CAREERS No. 20MY SABIC JOURNEYSTRATEGIC WORKFORCE PLANNING & ANALYTICSNo. 22STRATEGIC 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 ofinformation which was difficult for HR to obtain is now on the fingertips Today, HR organizations are able to account for variables such as regulatorychanges, economic outlook, and labor supply shortages HR organizations within the energy industry are starting to effectively use dataanalytics to help identify, recruit, retain, and develop skilled talent. HR leaders were able to better understand how internal and external driverswould likely affect the workforce in the coming years. Then shape their talentmanagement approach accordinglyTransitioning from a reactive HR organization to a more proactive one thatanticipates what could happen in the future and takes required action.No. 23ALIGNING WORKFORCE PLANNING WITH FUTURE DEMAND Workforce analytics process consisting of aligning workforce planning withfuture demand. Capitalize on industrys extensive experience using predictive modeling toforecast their workforce needs. Workforce analytics offer a fact-based approach to addressing workforce-related issues, Where would they find workers to meet the demand? What kinds of recruiting strategies would they use to fend off competitionfrom others? Would they be able to draw on internal resources located elsewhere?Insights and trends uncovered through workforce planning and analyticsapproaches provide the opportunity to create targeted programs that yieldtangible resultsNo. 24INITIATING SWPFirst step by asking some critical,forward-looking questions: Based on the companys growthobjectives, is the increase inproduction and developmentdemand projected, sustainable froma talent perspective? If not, how much does supply lagdemand? How can we address this gap?Labor supply projectionsProduction and labor demand forecastingComparable industry andcommunity mappingEducational SupplyStatisticsDetailed workforce needsanalysis focuses on four specificareas:No. 25Thank You

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