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MTCS | MERCER TOTAL COMPENSATIONSURVEY FOR THE ENERGY SECTOR2013 RESULTS PRESENTATION23 SEPTEMBER 2013
Brian Brown, Brian Lindenberg, Graham Dodd,Carolyn Kildare, Grant Ashley, Tyronne Stoudemireand Joanna Stacke
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MERCER
MTCS for the Energy SectorAgenda
7:45 – 8:30 am Breakfast
8:30 amWelcomeBrian Brown, Senior PartnerThe Canadian Energy VerticalBrian Lindenberg, Mercer Health & BenefitsIndustry Trends and ChallengesGraham Dodd, Mercer Talent ConsultingMTCS Survey Participation and Compensation TrendsCarolyn Kildare, Mercer Information Solutions
10:15 am Break
10:30amIncentives and Pay MixGrant Ashley, Mercer Talent ConsultingThe Business Case for DiversityTyronne Stoudemire, Mercer Diversity & Inclusion
12:00 pmWrap up and CloseJoanna Stacke, Mercer Information Solutions
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2013 MTCS RESULTS MEETINGTHE CANADIAN ENERGY VERTICAL
September 23, 2013 2
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MERCER 3
What You Know About Mercer
• We are a large consulting firm
• We do great survey work
• Our MTCS Energy survey is the definitive resource for compensationplanning data
• Our survey group Information Solutions is great to deal with
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MERCER
What You Might Not Know About Mercer
• We are the largest human resources consulting firm
• We do more than surveys
• Every second year, the MTCS survey includes a benefits and pensionsmodule
• Pensions and benefits are critical components in the war for talent
• We have more clients in the oil and gas sector than anyone else
• We have recently launched our Mercer Energy Vertical initiative
• We Know Energy
4
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We Know Energy
• We are looking for ways to add value – particularly for MTCS participants
• What you can expect from us– Energy specific roundtables and seminars– Regular email bursts leveraging the MTCS data– Topical publications– Pulse surveys– Tools and analytics– Data
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We Know Energy
• We would like to hear from you
• 2014 is a Benefits and Pensions module year– Is there anything missing?– How can we can add more value?– How can we ensure the information is being used?
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2013 MTCS RESULTS MEETINGINDUSTRY TRENDS AND CHALLENGES
7
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MERCER
Long-term solutions needed to meet workforcerequirements
Industry Trends and ChallengesExecutive Summary
Energy sector activity is relatively stable
US energy production forecasted to rise
Uncertain outlook for crude oil prices
Industry growth and workforce change driving projectedlabour shortages
88
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MERCER
Energy Industry Trends
9Source: “Canadian energy sector at risk due to surging US energy production”, The Financial Post, 20 June 2013
“US production of oil and gas is surging. This is greatnews for America, which should be able to reduce its
reliance on energy imported from unstable orundemocratic regimes.
But for Canada, growing US energy self-reliancepresents a huge challenge. We are dependent on oneforeign buyer for most of our energy sales. When that
buyer has options, the need to diversify is obvious.
Rising US energy production is a game-changer forCanada.”
Glen Hodgson, Senior Vice President and Chief EconomistConference Board of Canada
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MERCER 10March 13, 2013
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MERCER 11
WCSB Takeaway Capacity vs. Supply Forecast
0
1000
2000
3000
4000
5000
6000
7000
8000
2010 2014 2024
MM
BOE
perD
ay
Western Canadian Supply plusU.S. Bakken Movements
Existing Pipeline Capacity
Source: CAPP
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1959……….
12
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Borden Commission
13
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MERCER 14
Energy Industry TrendsRigs in Operation
Source: Baker Hughes Worldwide Rig Counts
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MERCER 15
Energy Industry Trends2005-2013: Oil and Gas Prices
0
2
4
6
8
10
12
14
16
0
20
40
60
80
100
120
140
160
West Texas Intermediate Crude Oil Price Natural Gas Henry Hub Spot Price
Stable oil pricesNatural gas prices remain low
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MERCER
• The projected decline inenergy imports reflects:– increased domestic
petroleum and natural gasproduction;
– increased use of bio fuels(much of which are produceddomestically);
– demand reductions resultingfrom rising energy prices andthe adoption of newefficiency standards forvehicles.
• The projected net importshare of total US energyconsumption is 9 percent in2040, compared with 19percent in 2011 (the sharewas 30 percent in 2005).
16
Production
19%
History 2011 Projections
0
25
50
75
100
125
1980 1990 2000 2020 2030 2040
Consumption9%
2010
2005
Net imports 30%
2035
10%
Production
19%
History 2011 Projections
0
25
50
75
100
125
1980 1990 2000 2020 2030 2040
Consumption9%
2010
2005
Net imports 30%
2035
10%
Source:
Energy Industry TrendsTotal US Energy Production and Consumption, 1980 - 2040
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Energy Industry TrendsCrude Oil Price Forecasts
17
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MERCER 18
Energy Industry TrendsCrude Oil Prices: Western Canadian Select vs. West Texas Intermediate
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
$110.00
WTI WCS
Source: Baytex
2012 2013
Oct 2012:$9.69
July 2013:$25.56
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MERCER 19
Energy Industry TrendsIndustry Employment Outlook in Different Scenarios
Oil and Gas Industry Employment Outlook to 2022
In the Low Growth scenario, the industry adds just under 18,300 jobs, while in the Expansionscenario, the industry adds 38,700 jobs.
195,200199,700
213,500(+9%)
233,900(+20%)
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F
Num
bero
fJob
s
Low Growth Scenario Expansion Scenario
Source: Petroleum Human Resource Council, May 2013
Difference:20,400 jobs
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6.0
5.4
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F
Une
mpl
oym
entR
ate
(%)
Balanced Labour Market Low Growth Scenario Expansion Scenario
Energy Industry TrendsProjected Labour Shortages
20
Industry unemployment rates fall below a balanced labour market for the durationof the projection period.
5.1 5.6 4.9
Severe shortages experienced in 2007 are expected to return by 2014 when theindustry unemployment rate falls to around five percent in either scenario.
Source: Petroleum Human Resource Council, May 2013
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Energy Industry TrendsFactors Driving Hiring Demand
21
Age-RelatedAttrition
IndustryActivityLevels
WorkforceCompetition
Source: Petroleum Human Resource Council Labour Market Information, May 2013
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MERCER
Energy Industry TrendsHiring Due to Age-Related Attrition
22
Occupation Average Age of Labour Force Age-related Attrition to 2011
Oil and Gas Industry as a Whole 40 23%
Supervisors, petroleum, gas and chemicalprocessing and utilities
44 32%
Drilling coordinators/production managers 44 31%
Geologists and geophysicists 44 29%
Industrial engineering and manufacturingtechnologists and technicians
42 29%
Inspectors in public and environmentalhealth and safety
42 29%
Purchasing agents and officers 42 28%
Supervisors, oil and gas drilling andservice
43 27%
Non-destructive testers and inspectiontechnicians
40 26%
Project engineers 41 25%
Petroleum engineers 42 25%
Source: Petroleum Human Resource Council Labour Market Information, May 2013
Over the next decade, 23% of the industry’s workforce will be eligible to retire.
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MERCER
Upstream Technicians
Drillers
Drilling Supervisors
Upstream Operators /Technicians
Energy Industry TrendsThe Most Critical Talent Gaps
Petroleum Engineers
Petroleum Engineers(unspecified)
Reservoir Engineers
Drilling Engineers
Completions Engineers
Production Engineers
ManagersRefining Engineers &Technicians
Project Managers
Operation Foreman / Supervisor
Managers / Senior Managers(e.g., Engineering, Logistic,
Quality) – no single dominantposition
Leadership (Directors andabove) – no single dominant
position
Plant / Operations Engineers
Process Engineers
Downstream Operators /Technicians
Sales / Business Development
Sales Managers
Traders
Commercial
Only positions cited by 3 or more respondents are included and listedindividually in this exhibit. Positions shown in bolded font were cited by 10 or
more respondents. The job types noted as having “no single dominantposition” were collectively cited at least 3 times (10 or more times if bold) and
therefore deserved mention but the individual positions given as exampleswere cited by fewer than 3 respondents.
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Geologists
Geophysicists
Geoscientists
Geoscientists Power Engineers
Other Engineers (e.g., Facility,Maintenance, Mechanical,Chemical, Electrical) – nosingle dominant position
Other Engineers
Source: Mercer Oil & Gas Talent Outlook and Strategies Industry Survey, June 2013
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MERCER
Upstream Technicians
Drillers
Drilling Supervisors
Upstream Operators /Technicians
Energy Industry TrendsThe Most Critical Talent Gaps - Canada
Petroleum Engineers
Petroleum Engineers
Reservoir Engineers
Drilling Engineers
Completions Engineers
Production Engineers
ManagersRefining Engineers &Technicians
Project Managers
Operation Foreman /Supervisor
Managers / Senior Managers(e.g., Engineering, Logistic,
Quality) – no single dominantposition
Leadership (Directors andabove) – no single dominant
position
Plant / Operations Engineers
Process Engineers
Downstream Operators /Technicians
Sales / Business Development
Sales Managers
Traders
Commercial
24
Geologists
Geophysicists
Geoscientists
Geoscientists Power Engineers
Other Engineers (e.g., Facility,Maintenance, Mechanical,Chemical, Electrical) – nosingle dominant position
Other Engineers
Sources: Mercer Oil & Gas Talent Outlook and Strategies Industry Survey, June-July 2006 vs. June 2013 – Canada Cut
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MERCER
Energy Industry TrendsShort-term Hiring Outlook (2013 – 2015)
25
In the short term, growth and workforce competition drives the majority ofindustry hiring. If market diversification occurs, an additional 5,860 jobs will be
created in the Expansion scenario.
Source: Petroleum Human Resource Council Labour Market Information, May 2013
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44%32%
56%68%
0%
100%
2006 2013
Energy Industry TrendsEmployee Sourcing
Build
Buy% of openpositions
filled
26
Definitions:
Build – promote, train, or transferexisting employees
Buy – hire workers from outsideyour organization
The shift toward buying talent is at odds with O&G companies’ stated focus oninternal development and workforce planning.
Disconnect !
Sources: Mercer Oil & Gas Talent Outlook and Strategies Industry Survey, June-July 2006 vs. June 2013
Other company’s employees are increasingly the preferred source for new hires.
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MERCER
0%
10%
20%
30%
40%
50%
60%
Current employeesfrom other oil andgas companies
Experienced hiresfrom outside oil and
gas industry
Contractors /temporary workers /outsource function
Colleges /universities
Retirees from otheroil and gascompanies
Retirees from yourorganization
Expected to increase
Expected to remain unchanged
Expected to decrease
Reliance on source:
Energy Industry TrendsEmployee Sourcing Trends in Canada
Current and planned sourcing strategies (CANADA)% of current outside hires from source, anticipated change in reliance1
1 Directional indication of change in reliance reflects planned strategy indicated by majority of respondents to the item2 50% of the respondents anticipate an increase while 47% foresee no change in their reliance on this source for external hires
% ofexternal
hires
27S
2
Competition for talent will become more intense as companies increase their relianceon the employees of other oil & gas companies for filling open positions.
Sources: Mercer Oil & Gas Talent Outlook and Strategies Industry Survey, June-July 2006 vs. June 2013 – Canada Cut
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MERCER
The Oil & Gas Talent Outlook Survey is still open!For those who did not participate but are interested in the detailed results
• https://surveys.qualtrics.com/SE/?SID=SV_1LjbJB52KMLf7Jr
28
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MERCER
Energy Industry TrendsWorkforce Solutions to Increase the Energy Industry Talent Pool
29
Labour from otherCanadian markets
Enhance mobility ofskills and
qualifications
Improve educationand training
effectiveness
Highlight careeropportunities in the
industry
Increase use andcompletion of
apprenticeships
TFW for short-term;skill-specific/industryspecific immigration
for long-term
Collaborate withgovernment,
education andtraining
Source: Petroleum Human Resource Council Labour Market Information, May 2013
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2013 MTCS RESULTS MEETINGSURVEY PARTICIPATION
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2013 Survey ParticipationExecutive Summary
Participant numbers up in 2013
Incumbent numbers up 11% compared to 2012
67 companies were Early Birds in 2013, up from 59 in 2012
3131
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MERCER
2013 Survey ParticipationMTCS Continues to Grow
2010 2011 2012 2013
Organizations: 186 196 209 213
Incumbents: 101,481 ( 5%) 115,685 ( 14%) 134,106 ( 16%) 148,452 ( 11%)
20102013
10%
NewParticipants
90%Existing
Participants
2011
32
2012
32
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MERCER
2013 Survey ParticipationOn-Time vs. Late Incumbent Submissions
33
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013
51%66% 63%
71%
Perc
ento
fInc
umbe
ntSu
bmis
sion
s(%
)
On-time 1 week late 2 weeks late 3 or more weeks late
More Early Birds and More On-Time Submissions Than Ever.
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MERCER
2013 Survey ParticipationEarly Birds Receiving a Free Peer Group
34
ARC Resources ConocoPhillips Mancal Energy PetroKhazakhstan Sunshine Oilsands
AREVA Resources Devon Canada MEGlobal Peyto Exploration TAQA North
Arsenal Energy Dover Operating Co Newalta Polar Star Tarpon Energy Svces
ATCO Pipelines ERCB Niska Gas Storage Precision Drilling Tartan Canada
ATCO Power Ensign Energy North West Redwater Saipem Total E&P
Baytex Energy Epcor NOVA Chemicals Sanjel TransCanada
Bellatrix Exploration FortisAlberta NuVista Energy Savanna EnergySvces
Trican Well Svces
BP Canada Gibson Energy OMERS Energy Svces SemCAMS Trilogy Energy
CAPP Grizzly Oil Sands Optasense Sherritt International United HydrocarbonIntl
CanEra Hunt Oil Company O’Rourke Engineering Signalta Resources US Oil Sands
Canexus Inter Pipeline Fund Packers Plus Sinopec Daylight Velvet Energy
Capital Power Ivanhoe Energy Paramount Resources Standard Land Weatherford
Chevron CanadaResources
Keyera Corp Parex Resources Storm Resources Williams
Chinook Energy Laricina Energy Petrobank
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MERCER
Fully Integrated3%
E&P47%
Services andDrilling
16%
Utilities7%
Public Sector3%
Pipeline/Midstream
9%
Downstream3%
EPC4%
Other8%
2013 Survey ParticipationDistribution of Participants by Industry Segment
35
Percent of Organizations (Incumbents)
(20%)
(23%)
(17%)
(12%)
(1%)
(11%)
(1%)
(12%)(3%)
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MERCER
2013 Survey ParticipationDistribution of Incumbents by Geography
36
2%
9%Edmonton
36%Calgary
1%
8%
2%Atlantic Region
12%Fort McMurray
7%
24%Other AB
Figures may not add to 100% due to rounding
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MERCER
2013 Survey ParticipationDistribution of Incumbents by Career Stream
0%
10%
20%
30%
40%
50%
Exec Stream (1)Total
Mgmt Stream (2)Total
Prof Stream (3)Total
Hrly/Para-ProfStream (4) Total
1%
13%
40%
46%
Perc
ento
fInc
umbe
nts
(%)
37
999.999.999Position Code
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MERCER
2013 Survey ParticipationNew Jobs
38
Job N Obs Job N Obs
Stakeholder Relations D 9 31 Power Plant Operations Executive 4 5Joint Venture Analyst E 3 7 Power Plant Operations Manager 2 7Joint Venture Analyst D 5 18 Utilities Business Manager 4 9Joint Venture Analyst C 5 18 Plant Overhaul Supervisor 1 4Joint Venture Analyst B 8 10 Tariff and Interconnection Services Supervisor 1 1Joint Venture Analyst A 4 5 Planning and Design Representative (Technical) 2 43Joint Venture Administrator IV 3 7 Power Emergency Planning Manager 1 5Joint Venture Administrator III 3 7 Field Operations Manager 11 119Joint Venture Administrator II 5 11 Gas Operations Customer Representative 2 63Joint Venture Administrator Ib 3 4 Gas Operations Mechanic 4 647Joint Venture Administrator Ia 2 2 Grid Planning Manager 1 1Engineering Team Leader 21 206 Transmission and Distribution Systems Manager 7 33Project Management Director 18 58 Automated Meter Infrastructure (AMI) Manager 2 2
Substations Manager 3 9
Nine of the new jobs did not receive sufficient matching to be reported.
• Three organizations must report at least three observations to display a mean.
• Four organizations must report at least four observations to display a median.
• Five organizations must report at least five observations to display 25th and 75th percentiles.
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2013 MTCS RESULTS MEETINGBASE COMPENSATION TRENDS
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MERCER
Base Compensation TrendsExecutive Summary
Energy sector base salary increases continue to outpacegeneral industry
2013 average salary increase budgets are 4.3%
Salary budget forecasts are similar to 2013’s actual levels
Base compensation is not the whole picture
4040
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MERCER
Base Compensation TrendsInflation vs. MTCS Office Employee Average Salary Increases
41
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Perc
ent
Inflation Rate MTCS - Office Salary Increases
Energy sector salary increases dipped in 2013, but not as much as the inflation rate.
Sources: CPI data is Average Canada CPI per year;MTCS office salary increase data from MTCS Policy reports
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MERCER
Base Compensation Trends2013 Actual Salary Increases - Top Industries / Geography
42
4.3%
3.4%
3.2%
3.5%
3.5%
3.0%
3.3%
3.3%
3.2%
0% 1% 2% 3% 4% 5%
Oil & Gas
Natural Resources
Public Sector / Not for Profit
Utilities
For Profit Services
Non-Durable Manufacturing
Greater Calgary
Other Alberta
National
Source: Mercer, CPS | Compensation Planning Survey for Non-Union Employees, 2013-2014. Excludes zero values
Oil & Gas’ 2013 actual salary increase of 4.3% is less than 2012’s 4.6%.
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MERCER
Base Compensation TrendsThe Canadian Energy Sector Premium
43
3.0%3.2% 3.2% 3.1%3.2%
3.4% 3.3% 3.2%
3.9%
4.5%4.3%
4.1%
0%
1%
2%
3%
4%
5%
6%
2011 2012 2013 2014 Projected
Per
cent
General Industry:National
General Industry:Greater Calgary
MTCS - AllCompanies (OfficeEmployees)
0.7%
0.9% 1.0%0.9%
The energy sector premium remains consistent.
Source: Mercer, CPS | Compensation PlanningSurvey for Non-Union Employees, 2010-2013 Excludes companies with
0% increase
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MERCER
Base Compensation TrendsSalary Increase Budgets by Industry Sub-sector (Office Employees)
4.3%
3.8%
4.7%
4.0%3.7%
4.3%4.1%
4.6% 4.5%
4.9%
4.4%
4.0%4.0% 4.0%4.2%
3.4%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2013 Salary Increase Budgets 2014 Projected Budgets
MTCS - All
E&P - All
E&P 100,000 BOE
Services & Drilling
Pipeline/ Midstream
Utilities
44
Salary increase budgets are highest for mid-sized E&P and lowest for utilities.
Excludes zero values
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MERCER
Base Compensation TrendsOffice vs. Field Salary Increase Budget Trends
45
3.6%3.9%
4.5%4.3%
4.1%
3.2%
3.7%
4.1%4.2%4.4%
0%
1%
2%
3%
4%
5%
2010 2011 2012 2013 2014 Projected
Perc
ent
Office
Field/ Hourly
0.4% 0.2% 0.1%
The difference between office and field salary increase budgets is decreasing.
* Excludes companies with 0% increase
0.1% -
4.1%4.0%3.7%
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MERCER
Base Compensation Trends: Hot JobsBased on Percent Change in Base Salary, Year-Over-Year
7.4%
7.4%
7.4%
7.4%
7.2%
7.2%
8.1%
7.7%
7.5%
7.7%
0% 2% 4% 6% 8% 10%
Payroll Assistant III
Safety/Environmental RepresentativeA
Field Operator (Supervisory)
Geologist A
Landman - Land Contracts &Negotiations C
Cost Controller B
Community Affairs B
Geologist B
Landman - Land Contracts &Negotiations B
Second Level Finance Executive
Average Increase % in Base Salary
46
Six of the 10 hottest jobs are developmental roles.
* Hot Jobs include only those positions with a minimum of 10 Organizations Matching.Data includes common organizations, common positions across both years.
N=18
N=34
N=26
N=38
N=22
N=17
N=27
N=17
N=16
N=40
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MERCER
Base Compensation Trends: Cold JobsBased on Percent Change in Base Salary, Year-Over-Year
2.4% 2.5% 2.6%
3.4% 3.4% 3.4% 3.4% 3.4% 3.5%3.6%
0%
1%
2%
3%
4%
5%
Aver
age
Incr
ease
%in
Bas
eSa
lary
47
* Cold Jobs include only those positions with a minimum of 10 Organizations Matching.Data includes common organizations, common positions across both years.
N=11 N=40 N=16 N=14 N=11 N=12 N=19 N=10 N=18 N=11
Very few ‘cold’ jobs had year-over-year percent change inaverage base salary below 3%.
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MERCER
Base Compensation Trends: Year-Over-Year TrendsChange in Same Organization, Same Job Base Salary
13.1
12.6
12.4
12.2
11.7
11.6
30.1
15.7
14.0
14.7
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32
Category Management Manager
Service Operator II
Project Manager B
Service Operator I
Research Scientist E
Project Quality Assurance Analyst
Estimator B
Estimator D
Top Division Executive
Crude Oil Scheduler
Average Increase % in Base Salary
48
Category Management Manager has seen the strongest changein year-over-year base compensation.
N=5
N=6
N=6
N=7
N=5
N=11
N=8
N=10
N=5
N=6
20.7%
0.7%
14.4%
1.2%
4.9%
6.5%
7.1%
6.4%
5.0%
7.9%
Indiv OrgMedian % Chg
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MERCER
Base Compensation TrendsThe Job Allowance
49September 23, 2013
Typical CompensationCalculation
Market-Adjusted Compensation
Total Base Salary Base Salary+ Job Allowance= Total Base Salary
Short-term Incentive/Bonus Short-term Incentive/BonusNon-Guaranteed Cash Non-Guaranteed CashTotal Cash Compensation Total Cash Compensation
including Other Guaranteed CashPerquisites PerquisitesLong-term Incentives Long-term IncentivesTotal Direct Compensation Total Direct Compensation
including Other Guaranteed CashOther Guaranteed Cash
In some segments the Job Allowance/Job Bonus is an important ‘adjustment’ tobase salary structure.
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MERCER
Base Compensation TrendsAdjusting Salary Structures to Market Pay Using Job Allowance:Engineer C, Field Specialization
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
50
Base Salary Median = $47.0
Base Salary + Other Guaranteed Cash Median = $90.7
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MERCER
Base Salary TrendsEngineer C Base Salary by Specialization
51
$40
$60
$80
$100
$120
Bas
eSa
lary
000'
s
Median Engineer C is $100.7
Engineer C pay shows significant variation between specializations.
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MERCER
Total Cash Compensation TrendsEngineer C Total Cash Compensation Including Other Guaranteed Cash
52
$60
$80
$100
$120
$140
$160
Tota
lCas
hC
omp
Inc
Oth
erG
uara
ntee
dC
ash$
000'
s
Median Engineer C is $112.0
Engineer C pay shows significant variation between specializations.
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MERCER
Total Cash Compensation TrendsReservoir Engineers Progression by Level – Total Cash CompensationIncluding Other Guaranteed Cash
$50
$100
$150
$200
$250
$300
$350
$400
$450
Engineer A Engineer B Engineer C Engineer D Engineer E Engineer F Engineer G EngineeringManager
Tota
lCas
hC
omp
Inc
Oth
erG
uara
ntee
dC
ash
$000
's
53
75th %ile
25th %ile
MedianAverage
Compensation progression by level shows a steady trend.
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MERCER
Hi-Lo Spread 44% 30% 32% 38% 44% 62% 56%
Total Cash Compensation TrendsMedian Total Cash Including Other Guaranteed Cash by Career Leveland Specialization
50
100
150
200
250
300
EngineeringManager
Engineer FEngineer EEngineer DEngineer CEngineer BEngineer A
Tota
lCas
hC
omp
Inc.
Oth
erG
uara
ntee
dC
ash
$000
’s
CivilElectricalPipelineMechanicalProcessFieldDrillingFacilitiesProjectProductionCompletionsMiningReservoir/ExploitationCorrosion/IntegrityReserves
54
The spread between highest and lowest based on specialization increaseswith experience and seniority.
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MERCER
Total Cash Compensation TrendsMedian Total Cash Inc. Other Guaranteed Cash for Engineers,Technologists and Technicians of Equivalent Levels
$50
$60
$70
$80
$90
$100
$110
$120
$130
$140
Tota
lCas
hC
omp
Inc.
Oth
erG
uara
ntee
dC
ash
$000
's
55
75th %ile
25th %ile
MedianAverage
Experienced technicians receive more total cash compensation (includingother guaranteed cash) than equivalent-level Engineers.
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MERCER
Total Cash Compensation TrendsProgression For Trades, Plant Operators and Field Operators
$70
$80
$90
$100
$110
$120
$130
$140
$150
$160
Tota
lCas
hC
omp
Inc
Oth
erG
uara
ntee
dC
ash
$000
's
56
75th %ile
25th %ile
MedianAverage
Progression is less smooth for Plant Operators.
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MERCER
Base Compensation TrendsThe Project Management Family
$50
$100
$150
$200
$250
$300
Top ProjectsExecutive
ProjectManagement
Director
ProjectManagement
Manager
ProjectManager E
ProjectManager D
ProjectManager C
ProjectManager B
Bas
eSa
lary
$000
's
57
75th %ile
25th %ile
MedianAverage
Compensation progression by level shows a steady trend.
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MERCER
Base Compensation TrendsThe Project Management Family – Construction Flag vs. Non Flagged
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Bas
eSa
lary
000'
s
58
75th %ile
25th %ile
MedianAverage
Construction-flagged project management roles show variation from theranges for non-construction project management roles.
-
MERCER
Base Compensation TrendsThe Project Management Family – General Industry v Energy
$50
$70
$90
$110
$130
$150
$170
$190
$210
$230
$250
GeneralIndustry
EnergyGeneralIndustry
EnergyGeneralIndustry
EnergyGeneralIndustry
EnergyGeneralIndustry
EnergyGeneralIndustry
Energy
Bas
eSa
lary
$000
's
59
75th %ile
25th %ile
MedianAverage
At all levels, energy industry project managers receive higher base pay thanthe same job in general industry.
Entry Experienced Senior Expert Manager Director
-
2013 MTCS RESULTS MEETINGSHORT-TERM INCENTIVES
60
-
MERCER
Short-term IncentivesExecutive Summary
September 23, 2013
STI plan effectiveness under scrutiny
Bonus pools return to historic norms
61
Short-term incentive grants generally exceed targets
61
-
MERCER
Short-term Incentives: Plan DesignFunding Incentive Plans
0% 10% 20% 30% 40% 50% 60% 70%
Corporate Results
Division or business unit results
Corporate and division results
Fixed pool funded based on budget
Fixed pool funded based on self-funded businessperformance
Other
OverallEnergy & Natural Resources
62September 23, 2013
Source: 2012-2013 Canada Incentive Plan Design Survey
Energy and Natural resource companies tend to fund incentive plansbased on corporate results.
-
MERCER
Short-term Incentives: Plan DesignBasis of the Payout Formula
0% 10% 20% 30% 40% 50% 60% 70% 80%
Percent of base salary
Percent of financial results (e.g revenue)
Flat dollar amount
Evenly split amongst plan participants
Percent of bonus pool
Based on hours worked
Other
OverallEnergy & Natural Resources
63September 23, 2013
Source: 2012-2013 Canada Incentive Plan Design Survey
Percent of base salary is the most common payout formula.
-
MERCER
Short-term Incentives: Plan DesignEffectiveness of Short-term Incentive Plan – Energy and NaturalResources
0% 20% 40% 60% 80% 100%
Executive management support
Noticeable payouts
Plan design
Recordkeeping and admin capabilities
Fit with HR and rewards programs
Ability to set measurable target
Fairness as seen by employee
Rollout and communications
Fit with ongoing and emerging practices
Very effective Effective Somewhat effective
64September 23, 2013
Source: 2012-2013 Canada Incentive Plan Design Survey
Short-term incentive plans are generally effective at providingnoticeable payouts, but fairness and communications are gaps.
-
MERCER
Short-term Incentives: Plan DesignFor Energy and Natural Resources, How Effective is the STI Plan at…
0% 20% 40% 60% 80% 100%
Supporting performance management program
Tying individual performance to org strategy
Assuring that incentives go to those who earn it
Supporting cost controls
Providing a good management tool for directreports
Keeping focus on important areas
Increasing organizational success
Attracting, retaining and motivating employees
Support teaming
Keeping employees happy
Keeping senior management happy
Very effective Effective Somewhat effective Not effective
65September 23, 2013
Source: 2012-2013 Canada Incentive Plan Design Survey
13% said STI plans are ‘not effective’ at increasingorganizational success.
-
MERCER
Short-term IncentivesPrevalence of Plan Types for Office Staff
0
10
20
30
40
50
60
70
80
90
100
Combination Plans IndividualIncentives
Group/TeamIncentives
Profit Sharing Gainsharing Special Lump SumAwards
Perc
enta
geof
Res
pond
ents
Offe
ring
Plan
Type
2011 2012 2013
66September 23, 2013
Combination plans remain most prevalent, followed by individualincentives and special lump-sum awards.
-
MERCER
Short-term IncentivesEligibility and % Receiving by Industry Segment
67September 23, 2013
93.7 94.899.0
91.3
29.4
96.1
50.0
71.789.7
73.9
89.6 89.4
15.2
89.6
46.6 49.2
0
20
40
60
80
100
E&P - All E&P < 10,000BOE
E&P 10-100,000 BOE
EP > 100,000BOE
Services &Drilling
Pipeline/Midstream
Utilities Other
Perc
ent(
%)o
fInc
umbe
nts
Eligible Receiving
* Data includes incumbents with a formal incentive target reported.
Not all eligible employees received short-term incentives.
N=104 N=26 N=37 N=14 N=33 N=19 N=15 N=65
-
MERCER
Short-term IncentivesAverage Bonus Pools
68September 23, 2013
21.6
17.716.2 16.4
18.6
24.1
17.8 18.1
8.6 8.5
11.810.3
11.6
14.713.4 13.9
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014Projected
Perc
enta
geof
Annu
alB
ase
Sala
ryPa
yrol
l
Office Field
Bonus pools are back to historic norms after 2012’s high.
-
MERCER
Short-term IncentivesOffice Bonus Pools (% of Payroll) – Average by Industry Segment
20.2 20.721.0
14.615.5
12.7
10.5
-
5.0
10.0
15.0
20.0
25.0
E&P - All E&P 100,000BOE
Services & Drilling Pipeline/Midstream Utilities
Perc
enta
geof
Ann
ualB
ase
Sala
ryPa
yrol
l
69September 23, 2013
N=61 N=13 N=24 N=28N=9N=9 N=22
Average Bonus Pool= 17.8%
25.1% 31.3% 23.5%
18.7%
28.7%
12.6%
22.1%
= 2012 Bonus Pool
Bonus pools were smaller in 2013 compared to 2012.
-
MERCER
Short-term Incentives: Target and Actual as % of BaseIncumbents with a Target > 0
Head ofOrganization Function Head
Sub-FunctionHead Director Manager
Team Leader(Prof)
Team Leader(Para-Prof)
Target STI% 60% 40% 35% 25% 20% 20% 15%Act STI as % of Base 72% 47% 38% 27% 23% 20% 14%
0%
20%
40%
60%
80%
Med
ian
%
Actual STI as %of Targetxx.x%
112% 103% 110% 108% 107% 109% 102%
Short-term incentives granted are above target.
70September 23, 2013
-
2013 MTCS RESULTS PRESENTATIONLONG TERM INCENTIVES ANDTOTAL DIRECT COMPENSATION
September 23, 2013 71
-
MERCER
Long-term Incentives and Total Direct CompensationExecutive Summary
September 23, 2013
Energy stocks in Canada underperforming
Aligning with peers and retaining top talent drive LTI planchanges
Stock options, restricted stocks, and performance sharesare most prevalent for executives and managers
LTI awards as a percentage of salary are similar to 2012
7272
-
MERCER
Long-term Incentives: ContextShare Index Performance for the Last 3 Years
80
90
100
110
120
130
140
150
160
7-Se
p-10
7-N
ov-1
0
7-Ja
n-11
7-M
ar-1
1
7-M
ay-1
1
7-Ju
l-11
7-Se
p-11
7-N
ov-1
1
7-Ja
n-12
7-M
ar-1
2
7-M
ay-1
2
7-Ju
l-12
7-Se
p-12
7-N
ov-1
2
7-Ja
n-13
7-M
ar-1
3
7-M
ay-1
3
7-Ju
l-13
S&P 500 S&P/TSX Composite Index S&P/TSX Capped Energy Index
73September 23, 2013Source: Standard & Poors
The S&P 500 has increased in index value, but Canadian stocks have not.
-
MERCER
Long-term Incentives: ContextShare Index Performance for the Last 3 Years
80
90
100
110
120
130
140
150
160
7-Se
p-10
7-N
ov-1
0
7-Ja
n-11
7-M
ar-1
1
7-M
ay-1
1
7-Ju
l-11
7-Se
p-11
7-N
ov-1
1
7-Ja
n-12
7-M
ar-1
2
7-M
ay-1
2
7-Ju
l-12
7-Se
p-12
7-N
ov-1
2
7-Ja
n-13
7-M
ar-1
3
7-M
ay-1
3
7-Ju
l-13
S&P 500 Energy S&P TSX Capped Energy
74September 23, 2013Source: Standard & Poors
US and Canadian energy indexes are diverging.
-
MERCER
Long-term IncentivesRecent Modifications
75September 23, 2013
Yes,modified
plan28%
No, notmodified
72%
28% of participants with LTI have recently modified their LTI plans comparedto 25% in 2012.
-
MERCER
Long-term Incentives: Plan DesignDrivers for Change to LTI Programs
76September 23, 2013
70%
67%
37%
14%
12%
12%
6%
5%
1%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Align with best practice and/or industry peer group practices
Reward/retain top talent
Better differentiate awards based on individual performance
Prepare for the uncertain busines outlook in 2013 and/orrecent market volatility
Align with guidelines from institutional shareholders
Have a better story to tell to shareholders
Reduce costs
Other
Respond to say on pay vote (past or future)
Source: Mercer Survey Panel Executive Rewards, Jan 2013
Aligning with peers/best practice and rewarding top talent drive LTIchanges.
-
MERCER
Long-term IncentivesEligibility and % Receiving by Industry Sector
77September 23, 2013
74.8
90.5 89.8
73.3
9.1
45.7
3.6
33.4
60.5
79.085.2
63.0
6.7
44.5
3.5
18.2
0
20
40
60
80
100
E&P - All E&P < 10,000BOE
E&P 10-100,000 BOE
EP > 100,000BOE
Services &Drilling
Pipeline/Midstream
Utilities Other
Perc
ent(
%)o
fInc
umbe
nts
Eligible Receiving
Long-term incentives are prevalent in E&P, but not other sectors.
N=103 N=25 N=37 N=14
N=33
N=19
N=15
N=66
-
MERCER
Long-term IncentivesEligibility and % Receiving by Career Stream and Level
78September 23, 2013
82.487.4
81.3
68.965.7 64.4
48.863.1
74.8 72.0
63.2 58.655.9
36.6
0
20
40
60
80
100
Head ofOrganization
Function Head Sub-FunctionHead
Director Manager Team Leader(Prof)
Team Leader(Para-Prof)
Perc
ent(
%)o
fInc
umbe
nts
Eligible Receiving
Mid-level managers were most likely to receive LTI in 2013.
-
MERCER
Long-term IncentivesPrevalence of Plan Types by Organizations
67.5%
12.3%
48.5%
29.4%
14.7%
4.9%
62.0%
9.6%
46.4%
31.3%
14.5%
6.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Stock/ ShareOptions and TUAs
SARs Restricted Stock/Share Units
PerformanceStock/Share Units
Long-term Cash Project Bonuses
%of
Org
aniz
atio
nsw
ithan
LTIP
lan
79September 23, 2013
Gain-based Plans - 69.1%
Full-value Plans - 72.2%
20132012
Balanced use of gain-based and full-value plans.
-
MERCER
Long-term Incentives2013 Plan Prevalence by Industry Sector
80September 23, 2013
0% 10% 20% 30% 40% 50% 60% 70% 80%
Stock/Share Options andTUAs
SARs
Restricted Stock/Share Units
Performance Stock/ShareUnits
Performance Cash
Long-term Cash
Project Bonus
Prevalence of LTI Plan Type (% of incumbents)
E&P and FI Pipeline Midstream Services and Drilling Utilities
RSUs are common in Pipeline/Midstream while Utilities tend to usePSUs and Long-term Cash.
-
MERCER
Long-term IncentivesHistorical Plan Prevalence – Eligible/Receiving Incumbents
81September 23, 2013
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Performance Cash Units
Stock/ Share Options andTUAs
SARs
Restricted Stock/ Share Units
Performance Stock/ShareUnits
Long-term Cash
Project Bonus
Prevalence of LTI Plan Type (% of incumbents)
2013 2012 2011
RSUs have increased in prevalence compared to 2012,while Stock Options have declined.
-
MERCER
Long-term Incentives2013 Plan Prevalence – Executive Career Stream (Eligible/Receiving)
82September 23, 2013
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Stock/Share Options andTUAs
SARs
Restricted Stock/Share Units
Performance Stock/ShareUnits
Performance Cash
Long-term Cash
Project Bonus
Prevalence of LTI Plan Type (% of incumbents)
Head of Org Function Head Sub-Function Head
Stock/share options remain most prevalent, especially for the Head ofOrganization.
-
MERCER
Long-term Incentives2013 Plan Prevalence – Management Career Stream (Eligible/Receiving)
83September 23, 2013
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Stock/Share Options andTUAs
SARs
Restricted Stock/Share Units
Performance Stock/ShareUnits
Long-term Cash
Project Bonus
Prevalence of LTI Plan Type (% of incumbents)
Director Manager Team Leader (Prof) Team Leader (Para-Prof)
Long-term cash is more often used for para-professional/hourly team leaders.
-
MERCER
Long-term IncentivesHistorical LTI Awards – Executive and Management Career Streams
84September 23, 2013
0%
20%
40%
60%
80%
100%
120%
140%
160%
Team Leader(Para-Prof)
Team Leader(Prof)
ManagerDirectorSub-FunctionHead
Function HeadHead of Org
Med
ian
LTIA
war
d(%
ofBa
se)
2011 2012 2013
2013 LTI awards as a percentage of base salary are similar to 2011 for mostlevels.
-
MERCER
Total Direct Pay MixManagement Career Stream
85September 23, 2013
88.0%86.6%81.1%76.2%76.0%74.4%72.1%69.4%
6.9%7.7%9.7%
12.3%10.8%11.7%11.7%13.6%
1.1%1.0%1.0%1.0%1.5%1.3%1.5%1.6%
4.0%4.7%8.2%10.5%11.7%12.6%14.6%15.3%
0%
20%
40%
60%
80%
100%
20132012201320122013201220132012
Pay
Mix
-%of
Tota
lDire
ct
Base Salary STI Non-guaranteed/Perq Long-term incentives
Director Manager Team Leader(Prof)
Team Leader(Para-Prof)
LTI is a lower proportion of pay mix in 2013 compared to 2012.
-
2013 MTCS RESULTS MEETINGKEYNOTE PRESENTATIONTHE BUSINESS CASE FOR DIVERSITY
86
-
MERCER
Tyronne StoudemirePrincipal, Senior Diversity Consultant at Mercer
MercerThe Path to Cross-Cultural Competence
87
-
MERCER
Reference: Adler, N. J. International Dimensions of Organizational Behavior.4th ed. Cincinnati, OH: South-Western, 2002.
C, Milton J. Bennett 2008
Monocultural Teams
Multicultural TeamsMulticultural Teams
++ +++ + ++
• Leader ignores or suppressescultural difference
• Cultural difference an obstacle toperformance
• Leader acknowledges & supportscultural difference
• Cultural difference an asset toperformance
Higher PerformanceLower Performance
88
Impact of Diversity and Inclusion on Team Performance
-
MERCER
For the First Time in History:FOUR Generations - Soon to be FIVE -
in the Workforce
89
-
MERCER 90September 23, 2013
From Civil Rights in the Workplace 2005 Survey; Conducted by the Gallup Organization
Diversity is the Mix……and the Mix Matters
When an employee perceives that a companyand its leadership are committed to a diverseand fair workplace, they are:
• More likely to stay with that company
• More likely to recommend their company toothers
• Less likely to have experienced discrimination
• Less likely to have missed days at work
• More engaged in their work
-
MERCER 91
Who Doesthe Work
MarketBusiness
Case
Impact on productsand services
Operations BusinessCase
Impact on internal systemsand processes
WhatWe Sell
How We Run the Business
TalentBusiness
CaseImpact on talent
(engagement, retention,advancement,
etc.)
The Business Case for Diversity and Inclusion
-
MERCER
Operations BusinessCase
Impact on internal systems andprocesses
MarketBusiness
Case
Impact onproducts andservices
Who Doesthe WorkTalent
BusinessCase
Impact on talent(engagement, retention,
advancement,etc.)
TalentBusiness
Case
TalentBusiness
CaseImpact on talent
(engagement, retention,advancement,
etc.)
Impact on talent(engagement, retention,
advancement,etc.)
TalentBusiness
CaseImpact on talent
(engagement, retention,advancement,
etc.)
The Business Case for Diversity and InclusionThe Talent Business Case
Men Running Women-Based Organization92
-
MERCER
Operations BusinessCase
Impact on internal systems andprocesses
MarketBusiness
Case
Impact onproducts andservices
How We Runthe Business
TalentBusiness
Case
Impact on internal systems andprocesses
Impact on internal systems andprocesses
Operations BusinessCase
Operations BusinessCase
Impact on internal systems andprocesses
Operations BusinessCase
TalentBusiness
CaseImpact on talent
(engagement, retention,advancement,
etc.)
The Business Case for Diversity and InclusionThe Operations Business Case
93
-
MERCER
Race Salary Gender Tenure Age Balance
PARTICIPATION
AVERAGECONTRIBUTION RATEAVERAGECONTRIBUTION RATE
AVERAGE %IN EQUITIESAVERAGE %IN EQUITIES
INTERNET USAGEINTERNET USAGE
% W/LOANSOUTSTANDING
1 2 3 4 5 N/A
1 2 3 5 4 N/A
1 N/A 3 4 5 2
1 2 N/A 3 N/A N/A
1 3 3 6 5 2
How Culture AffectsLong-Term Savings
Behaviors
Impact on Participant’s Savings
94
-
MERCER
Participation ContributionRates
% in Equalities InternetUsage
Loans Withdrawals
HispanicAfrican American
Asian
13%
-7%
36%
-20%
11%
-2% -7%-9%-15%
56%47%
Regression-adjusted comparisonof 401(k) behavior (relative to
Whites)
-9% -7%
-24%-32%
89%
171%Impact on Participant’s Savings
95
-
MERCER
Copyright © 2010 Hewitt Associates LLC©2011 Diversity Best Practices
Impact on internal systemsand processes
OperationsBusiness Case
96
-
MERCER
Copyright © 2010 Hewitt Associates LLC©2011 Diversity Best Practices
Impact on internal systemsand processes
OperationsBusiness Case
97
-
MERCER
Copyright © 2010 Hewitt Associates LLC©2011 Diversity Best Practices
Impact on internal systemsand processes
OperationsBusiness Case
98
-
MERCER
Copyright © 2010 Hewitt Associates LLC
What happens to Mama if you’re not in this picture?©2011 Diversity Best Practices
Impact on internal systemsand processes
OperationsBusiness Case
99
-
MERCER
Different Money Worldviews
100
Impact on Participant’s Savings
-
MERCER
• Define Diversity
• Define Inclusion
• What does Cross-CulturalCompetence mean to you? Write your definitions here
101
Foundational Definitions
-
MERCER
cul·ture / lCH r/
What is Culture?
Does everyone have a culture?
102
-
MERCER
Definition of Culture, Values, and Symbols
SymbolsSymbols
CultureCultureBehavioral interpretation of how acommunity lives out its values in order tosurvive and thrive
ValueValue Personal and group beliefs of what is rightand wrong
Things that remind people of those culturalelements that bind them together
103
-
MERCER
Worldview Demonstration Video
104
-
MERCER
Worldview Demonstration Video
What did you see?
105
-
MERCER
DIN Model
First describe the behaviors and actions you see. Be careful not to let yourpersonal judgments influence what you observe. The behaviors and actionsthat you see.
• In a cross-cultural situation, be aware of culturally influencedinterpretations of the behaviors that take place in another culture. Try tointerpret the behaviors and actions from two perspectives:
• From your perspective, based on your cultural background and values.• From the perspective on the culture you are observing. You can do this
by finding out more about the other culture and what motivates theirbehavior.
Once you feel you have a pretty good understanding of the behaviors andactions you just observed, begin to think through ways to navigate thesituation effectively!
106
-
MERCER
The ability to discern and take into account one’s own and others’ worldviews to be able to seize opportunities, make decisions, and resolveconflicts in ways that optimize cultural differences for better, longer lasting,and more creative solutions.
FromTolerance and
Sensitivity
107
The Path to Cross-Cultural Competence
-
MERCER
Cultural Competence is a Core Competency for Leaders and IndividualContributors
“Research tells us that what makes agroup truly intelligent and innovative isthe combination of different ages, skills,disciplines, and working and thinkingstyles that members bring to the table.
… Successful employees within thesediverse teams need to be able to identifyand communicate points of connection(shared goals, priorities, values) thattranscend their differences and enablethem to build relationships and to worktogether effectively.”
108
Cross Cultural Competencynamed one of the top 10 work
skills needed for the future.
-
MERCER
Values Demonstration
What are 4 things that you value the most, that aremost important to you?
1 2 3 4
109
-
MERCER
Unconscious, Conscious and Collective Bias
Traditional thinking has generallyassumed that patterns ofdiscriminatory behavior inorganizations are conscious.
Unconscious bias works behindthe scenes, subversively
undermining equality efforts.
The collective phenomena listedabove can make the group takesome control on individual mindsand limit their independence of
decisions and actions.
110
-
MERCER
Unconscious, Conscience and Collective Bias
As one person looks through theirshopping bag (left), another jumps
through a broken window, whileleaving a convenience store on the 1-10 service line South in Metaire, LA.
“A young man walks through chestdeep flood water after looting agrocery store in New Orleans…”
“Tworesidents
wade throughchest-deepwaters afterfinding bread
and soda froma local grocery
store afterHurricane
Katrina camethrough theare in NewOrleans.”
111
-
MERCER
Intercultural Development Inventory Overview
• Developmental Model of Intercultural Sensitivity (DMIS) firstpublished by Dr. Milton J. Bennett in 1986
• The model is theory-based
People “develop” through stages of intercultural sensitivity
Based on clinical, empirical observations
Uses worldview philosophy
• The Intercultural Development Inventory (or IDI) is the tool thatmeasures an individual’s or group’s level of interculturalcompetence and their placement along the InterculturalDevelopment continuum
112
-
MERCER
Intercultural Development Inventory Model
113
-
MERCER
Monocultural MindsetMonocultural Mindset Global MindsetGlobal Mindset
MinimizationPolarizationDenial Acceptance Adaptation
“THERE IS ONLYONE
CULTURE.”
DEFENSE:“MY CULTUREIS THE ‘TRUE’
CULTURE.”REVERSAL:
“YOURCULTURE IS
BETTER THANMY CULTURE.”
“DIFFERENCESEXIST BUT
OURSIMILARITIES
ARE MOREIMPORTANT.”
“OURDIFFERENCES
AREIMPORTANT,
AND SHOULDBE
RESPECTEDAND VALUED.”
“I ROUTINELYSHIFT MY
THINKING ANDBEHAVIOR TOINCORPORATE
DIFFERENTCULTURAL
PERSPECTIVES.”
Collectively, where do you think we are?
Intercultural Development Inventory Explanation
114
-
MERCER
IDI Group Results (21 participants)
14.3%
61.9%
19.1%
Collective/Organizational Implication of Minimization• Overestimation of sensitivity to diversity (tolerance)
• Strong emphasis on conformity to organizational culture may discourage creativity based on cultural diversity;imposition of the “insider” style
Global Benchmark:Approximately 60% in
Minimization
Monocultural Mindset Global Mindset
MinimizationPolarizationDenial Acceptance Adaptation
4.8%0%
115
-
MERCER
Group Profile Results
The gap shows our perceived level of intercultural sensitivity is higher than our actual level.(This is common). The goal is to close that gap by increasing our cultural navigation skills.
116
-
MERCER
Cultural Disengagement
Cultural disengagement is a sense ofdisconnection or detachment fromone’s cultural group.Scores of less than 4.00 indicate thegroup is not “resolved” and isexperiencing to some degree alack of involvement in core aspects ofbeing a member of a culturalcommunity.
117
-
MERCER
Learning Strategy for D&I Sustainability
• In order to be competitive in this rapidly growing global economy, we all must learn how to successfullyintegrate diversity and inclusion into our culture and our organization’s DNA.
• Organization’s leaders must have a share understanding of what it means to build and sustain a morecross-culturally competent organization, as well as understand the types of actions that can help betterdevelop employees and peers toward diversity and inclusion goals.
• Developing organizational cross-cultural competence is key for dealing with a more globally diverse, andtherefore, complex workforce.
Ownership
Create organizationalownership where leaders
and managers ownachieving the Diversity and
Inclusion outcomes.
Awareness &Capability
At an individual level leaders,managers, and employees
understand their ownculture and the importanceof cultural competence to
ensure that diversity is not justtolerated but we become
stronger because of it; andthat inclusion becomes a
way of life at Mercer.
Integration
Diversity and Inclusion isnot a separate work effortthat you need to focus on.Diversity and Inclusionare integral to how wethink about, design, and
deliver programs andpractices to Mercer.
Transformation
True transformation startsfrom within and requiresthe adoption of cultures.Transformation requires
diverse culture of thoughtand workforce that
embraces diversity as anorganic and global business
imperative.
Communications
Monitoring/Measuring
Professionally- and Organizationally-Specific Skills / Enhancements
118
-
2013 MTCS RESULTS MEETINGWRAP-UP
119
-
MERCER
MTCS for the Energy SectorMercer PayMonitor®
PayMonitor ®2013 results delivered throughPayMonitor, Mercer’s online tool
Sept 26, 11am MT: PayMonitor Training
Topics Covered
Link in your invitation emailRegister on:
http://www.imercer.com/content/canadaevents.aspx
Accessing published resultsCreating custom templatesCreating custom peer groups
120120
-
MERCER
MTCS for the Energy SectorFall Update
121
Updated salary increase budgets, bonus pools, and other compensationplanning elements for end-of-year reporting.
Online questionnaire availableOctober 2nd
Participation deadlineOctober 25th
Results availableNovember 29th
-
MERCER
MTCS for the Energy SectorLooking Forward to 2014
122
2014 will be a Benefits yearIncumbent, Policy and Benefits
submissions required for participation
2014 participation materials will beavailable at the end of February
MTCS 2013 Submission MeetingDetails and timing to follow
-
MERCER
MTCS for the Energy SectorContact Us
123
Phone 1 800 333 3070E-mail [email protected] http://www.imercer.ca
Client Service
CAROLYN KILDAREIS Western CA Market Rep
403 476 [email protected]
HELEN LEEEnergy Analyst, IS North America
213 346 [email protected]
JOANNA STACKEEnergy Team Manager, IS North America
612 516 [email protected]
KENNETH YUNGIndustry Compensation Advisor
403 476 [email protected]
GRANT ASHLEYIndustry Compensation Advisor
403 476 [email protected]
GRAHAM DODDPrincipal Consultant
604 609 [email protected]
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MERCER
MTCS for the Energy SectorContact Us
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Phone 1 800 333 3070E-mail [email protected] http://www.imercer.ca
Client Service
CAROLYN KILDAREIS Western CA Market Rep
403 476 [email protected]
HELEN LEEEnergy Analyst, IS North America
213 346 [email protected]
JOANNA STACKEEnergy Team Manager, IS North America
612 516 [email protected]
KENNETH YUNGIndustry Compensation Advisor
403 476 [email protected]
GRANT ASHLEYIndustry Compensation Advisor
403 476 [email protected]
GRAHAM DODDPrincipal Consultant
604 609 [email protected]
CO
NTA
CT
US
MER
CER
CO
NTA
CTS
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QUESTIONS & ANSWERSTHANK YOU!
September 23, 2013 125
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Mercer (Canada) Limited
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