IMPACT OF ENERGY TRANSITION ON HUMAN RESOURCE MANAGEMENTVERSION 1

May 18, 2017

No. 1

INTRODUCTION

• In a disrupted business environment, our future depends on empowering

today’s 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. 2

THEY HAVE DIFFERENT QUESTIONS IN MIND FOR THE JOB

• Am I contributing to company’s growth?

• Show me my value

• Understand my unique competencies

• Is the job cool?

• Help me invest in my self

• Simplify your decision-making

No. 3

ENERGY INDUSTRY PERCEPTION

Many recent surveys indicate that people generally do not have a positive

perception about the industry.

Jobs are seen as exhausting & not rewarding.

Jobs are mismatching with their qualifications.

Better opportunities offered by other industries

Money 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. 4

KEY PILLARS TO OVERCOME CHALLENGES

RETENTION

PROGRAMS

EFFECTIVE TALENT

ACQUISITION

STRATEGIC

WORKFORCE PLANNING

EFFECTIVE TALENT ACQUISITION

No. 6

EFFECTIVE TALENT ACQUISITION

• The dramatic changes in industry

create a significant challenge in

aligning human capital resources with

market demands.

• Market fluctuations impacts the

workforce demand & supply in

different areas

• Shrinking pool of available talents.

• Increasing the war for talent by

extending competition beyond local,

and even national, labor markets.

No. 7

TALENT OUTLOOK

• Shortfall of experienced technical professionals over the next several years

due to natural attrition

• In this region employers are expecting large waves of retirees over the coming

years.

• A strong correlation between the number of technical professionals a company

employs and the growth of its production

• Staffing issues will have serious consequences on projects and production

capacity, leading to potential delays and driving decision makers taking more

risk

No. 8

2025 REGIONAL TALENT SUPPLY & DEMAND FORECAST

Source: Mercer Oil & Gas Talent Outlook

No. 9

MINDSET SHIFT IN MANAGING TALENT ACQUISITION

• Exploring talent out of the industry to cope with the dynamic change and

competition.

• 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 in

industries, 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 talent

No. 10

REBRANDING OF THE COMPANY’S RECRUITING STRATEGY

AGILE ORGANIZATIONS LOOK FOR SIGNALS, LISTEN TO EMPLOYEES,

LEARN AND ADOPT

No. 11

WE 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 FOR

No. 12

SABIC’s EMPLOYER BRAND THEME

PEOPLE WHO CAN

We’ve always believed that it takes

special people to make a difference.

They need ingenuity, brilliance and the

freedom 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. 13

EMPLOYER VALUE PROPOSITION

RETENTION PROGRAMS

No. 15

RETENTION PROGRAMS

• Today’s workforce is more digital, more global, diverse, automation oriented,

and social media proficient.

• At the same time, business expectations, needs, and demands are evolving

faster than ever before.

• The need for certain skills can change dramatically within a year.

The degree to which HR organizations anticipate these changes can

determine the difference between being ready to support the company’s

growth or hindering it due to a lack of skilled workforce

No. 16

BUSINESS INTERRUPTION

Business interruption or unplanned

downtime of critical equipment.

POTENTIAL IMPACTS OF NEGATIVE ATTRITION

KNOWLEDGE LOSS

Potential risk of loosing valuable

knowledge in the organization

INCREASED AMBIGUITY

The volatility we have experienced in

energy markets is likely to continue.

FINANCIAL IMPACT

Represents a significant expense

impact beyond the cost of of the

employee who left

SAFETY PERFORMANCE

An increase in recordable safety

incidents

In an age of disruption, business and HR leaders are being pushed to rethink

how they organize, recruit, develop, manage, and engage the workforce.

COMPANY BRAND

High attrition rates might be perceived as

sign of unhealthy working environment

No. 17

REINFORCING RETENTION

Leaders must now embrace new ways of thinking about their companies, their

talents and their role in global social issues. They are turning to new

organizational models that:

► Highlight the networked nature of today’s 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 center

Some have turned to blunt retention instruments such as:

► Pay increases and

► Competitive incentive awards

Business & HR leaders can no longer continue to operate according to old

paradigm.

No. 18

CAREER DEVELOPMENT HAS THE HIGHEST IMPACT ON EMPLOYEE RETENTION

• Lack of career opportunities is

the top reason for any employee

to leave the job

• Companies are building career

advancement strategies as a

cost-effective way for retaining

employees

• Similar initiatives raise employee

morale and makes them more

loyal towards the organization

No. 19

“DNA” OF SABIC PROFESSIONAL CAREERS

No. 20

MY SABIC JOURNEY

STRATEGIC WORKFORCE PLANNING & ANALYTICS

No. 22

STRATEGIC 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 of

information which was difficult for HR to obtain is now on the fingertips

• Today, HR organizations are able to account for variables such as regulatory

changes, economic outlook, and labor supply shortages

• HR organizations within the energy industry are starting to effectively use data

analytics to help identify, recruit, retain, and develop skilled talent.

• HR leaders were able to better understand how internal and external drivers

would likely affect the workforce in the coming years. Then shape their talent

management approach accordingly

Transitioning from a reactive HR organization to a more proactive one that

anticipates what could happen in the future and takes required action.

No. 23

ALIGNING WORKFORCE PLANNING WITH FUTURE DEMAND

• Workforce analytics process consisting of aligning workforce planning with

future demand.

• Capitalize on industry’s extensive experience using predictive modeling to

forecast 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 competition

from others?

► Would they be able to draw on internal resources located elsewhere?

Insights and trends uncovered through workforce planning and analytics

approaches provide the opportunity to create targeted programs that yield

tangible results

No. 24

INITIATING SWP

First step by asking some critical,

forward-looking questions:

► Based on the company’s growth

objectives, is the increase in

production and development

demand projected, sustainable from

a talent perspective?

► If not, how much does supply lag

demand?

► How can we address this gap?

Labor supply projections

Production and labor

demand forecasting

Comparable industry and

community mapping

Educational Supply

Statistics

Detailed workforce needs

analysis focuses on four specific

areas:

No. 25

Thank You