Oil & Gas UK Next Generation Task Group Report to Industry, September 2009

‘09Next Generation Conference

 

Acknowledgements Oil & Gas UK would like to thank the sponsor of the Next Generation conference and the Offshore Europe breakfast briefing, Maersk Oil. It is very grateful to the members of the Next Generation Task Group who contributed their time and effort to the production of this document. The Task Group members are: Niall Armstrong Petrofac Offshore Engineering and Operations Kelly Brown Chevron Upstream Europe Jessica Burton Oil & Gas UK Sarah Butcher Oil & Gas UK Emma Cheyne Wood Group Engineering (North Sea) Ltd Haakon Dahle Smith Chevron Upstream Europe Sally Fraser Oil & Gas UK Sam Howard OPITO – The Oil & Gas Academy Ryan McPherson Industry Technology Facilitator (ITF) Clarke Shepherd Venture Production plc Jeremy Watt Aberdeen University / Core Laboratories (U.K.) Ltd

1

 

Table of Contents

Executive Summary…………………………………………………………………………………...3

Introduction……………………………………………………………………………………………..5

Who are the Next Generation?......................................................................................5

The UK oil and gas industry’s Next Generation…………………………………..............5

Validity of Next Generation’s perspectives…………………………………………………6

Current attraction, development and retention strategies: Next Generation feedback..7

Proposal 1: Increasing the size of the talent pool………………………………………………...10

Proposal 2: Harnessing the potential of the Next Generation…………………………………..15

Appendix A……………………………………………………………………………………………19

Appendix B……………………………………………………………………………………………20

Appendix C……………………………………………………………………………………………21

Appendix D……………………………………………………………………………………………23

Reference Articles……………………………………………………………………………………26

2

 

Executive Summary

Up to 25 billion barrels or 40% of the nation’s oil and gas still remain to be extracted from the UK continental shelf (UKCS). Maximising the recovery of these natural resources and bolstering the UK’s impressive oil and gas supply chain in its position as a world leader will require the industry to: Overcome technological challenges;

Increase operational and capital efficiency;

Attract new investment;

Maintain a quality workforce.

As with any industry, it is the Next Generation - its current young professionals and those joining the industry in the years to come - who will ultimately be faced with these challenges. Regardless of the economic situation, building organisational sustainability within businesses will be key to the industry’s future success. This report addresses issues highlighted at, and further development work arising from, Oil & Gas UK's Next Generation Conference, held in Aberdeen earlier this year. At this conference, the perspectives of the industry’s Next Generation on the current strategy to attract, develop and retain young professionals were gathered. The Next Generation Task Group has analysed that feedback and puts forward two proposals which could be implemented in order to better foster the required organisational sustainability.

Proposal 1: Increasing the size of the talent pool

 

Without a constant stream of young, enthusiastic and innovative recruits, any industry will struggle to maintain organisational sustainability. The first proposal addresses delegates’ concern surrounding the sustainability of the current, indigenous, talent pool. Delegates feared that the pool of young professionals from which the industry could recruit in the years to come may be restricted because the sector does not market itself and the exciting opportunities on offer to a wide enough audience. The proposal highlights the need for companies to collaborate to promote a unified ‘brand’ image of the industry. Promotion would: Involve the development of a recognisable brand suitable for the market in question;

Aim to change – through education – the negative image of the industry amongst school leavers considering their career options, thereby increasing the talent pool from which the industry can recruit;

Require materials (developed further in proposal) to support the brand operation;

Necessitate buy-in from industry to work together through OPITO – The Oil & Gas Academy to achieve these goals.

3

 

Proposal 2: Harnessing the potential of the Next Generation

 

The Task Group proposes that a Next Generation Code of Practice is launched in order to raise the industry’s awareness of the ways in which young professionals’ productivity can be harnessed, at the same time maximising their current and future contributions to organisations. Although these mechanisms have been identified by the Next Generation, they could be applied to the workforce as a whole. The key areas of the Code of Practice were developed directly from feedback from conference delegates and fall under the following categories: Development planning;

Performance reviews;

Effective mentoring;

Visible and approachable managers;

Flexible working opportunities.

An annual survey of senior managers and young professionals would be used to assess companies’ implementation of the Code of Practice and awards would be given based on compliance. Given that the Code would signify commitment to working with the Next Generation to harness their productivity, the awards could be used to attract potential employees.

Moving ahead

Oil & Gas UK and the Next Generation Task Group hope you find the report valuable and the proposals thought-provoking. The content was presented at Oil & Gas UK’s Offshore Europe breakfast briefing in September 2009 for consideration by industry leaders. As an Oil & Gas UK member, your company has the opportunity to voice its support and further debate the proposals through engagement with OPITO – The Oil & Gas Academy, the industry’s focal point for skills, learning and workforce development, at the skills forum. To find out who represents your company at the skills forum, please email kfulcher@oilandgasuk.co.uk

4

 

Introduction

Who are the Next Generation?

Each generation has its own distinct set of values, view of authority, loyalty, expectations of their leaders and work environment in which productivity is maximised. A review of research (see page 26 for references) offers definitions of the four generations present in the UK workforce today (see Appendix A). Today’s Next Generation – current young professionals and those who are now considering their career options - includes elements of Generation Y and Z. Generation Y were born between 1979 and 1991, are currently aged between 18 and 30 years and account for 27% of the workforce. They grew up during the ‘decade of the child’, enjoying unprecedented levels of parental support, supervision and involvement. Academics purport this generation to be ambitious, bored by routine, connected 24/7, entrepreneurial, expert in multi-tasking, goal-oriented, individuals rather than team players, optimistic, self confident and self reliant. A full explanation of the work environment that inspires high productivity and loyalty in Generation Y can be found in Appendix B. Generation Z, who were born after 1991, are also considered part of today’s Next Generation. They are likely to enter employment within the next six years.

The UK oil and gas industry’s Next Generation

An analysis of the UK oil and gas industry’s Next Generation, as represented by conference delegates, reinforces the academic perception of Generation Y. When asked to define their ‘ideal company’, delegates at the conference considered it to be a flexible and forward thinking organisation responsive to new ideas and change. Delegates stated that one of the most important aspects of a company is the career development plan provided. A clear and structured path that allows them to progress is desired. Striving for recognition, the Next Generation wants its performance to be valued and as part of this, high quality, constructive feedback is essential. Overall, the Next Generation would like a dynamic, challenging work environment that allows them to learn and develop as quickly as possible. A full account of feedback collected at the conference under the headings leadership style, learning and development, welfare conditions, communication style and performance management system can be found in Appendix C.

 

 

5

 

Validity of the Next Generation’s perspectives

A summary of the four schools of thought which question the validity of the Next Generation's perspective on the industry’s attraction, development and retention strategy follows. This is based on a review of research, a list of which can be found on page 26. 1. Generational similarities The first school of thought is that the Next Generation's idea of an industry or company in which it can excel is very similar to that of previous generations; the value of studying why young professionals might be attracted to or deterred from joining a particular industry or company is questioned. However, there is significant research which supports the proposition that we and the ways in which we work are a product of our upbringing and surroundings so it follows that to harness the productivity of a generation, working styles must change with the workers. 2. Market-driven job selection The second school of thought is that the competitive job market will function to place individuals in their ideal working environment, whether the individual’s priority is work-life balance, salary or company philosophy. This may be the case in the latter stages of a career but does not apply to the attraction stage where recent graduates’ life experience and upbringing will affect their career choice strongly. 3. Money driven The third school of thought is that the Next Generation is often primarily concerned with higher pay and more time off as it has grown up during prosperous times, been placed on a pedestal by doting Baby Boomer parents and given unprecedented levels of support, supervision and involvement. This view ignores the positive attributes that stem from that parental support and disregards the impact that productive individuals can have on a company’s bottom line. 4. Recession One might also ask the question: why should the industry consider the Next Generation’s perspectives at a time when the recession is wearing on and the outlook for growth and recruitment in some companies is uncertain? The industry will eventually emerge from this period of economic difficulty; previous generations will retire and the companies which continue to strategically develop their workforces even in the midst of the current downturn will be best positioned to take advantage of the next period of economic growth. As Deloitte in particular points out, the Next Generation is ‘a hidden powerhouse of employee potential, critical for global business in tough times’. There are many indications that certain oil and gas companies are offering the types of job opportunities and career paths desired by the Next Generation. For example, Deloitte’s survey of the Next Generation (Generation Y) in the United States showed that young professionals in the oil and gas industry were much more satisfied with their jobs and more likely to stay with a current employer than in other industries. It is important to continue down the path and retain and improve the efforts made by the industry to date.

6

 

Current attraction, development and retention strategies: Next Generation conference feedback

In order to identify areas in which the UK oil and gas industry’s strategy to attract, develop and retain young professionals (henceforth referred to as ‘strategy’) can be improved, delegates explored:

What initially attracted them to the industry;

Aspects of the industry’s strategy they feel have proved successful so far;

What might have deterred their peers from joining the industry ;

Areas in which the industry is lacking in its strategy.

What attracts the Next Generation to the UK oil and gas industry? In rank order (1 occurred most often in feedback): 1. Challenging and varied roles Thrill of getting involved at the ‘sharp end’ with the application of technologies/

science to make money Wide range of placements in different countries Early responsibility Utilising existing skills and opportunities to apply academic knowledge High performance expected Hands-on as well as office based work

2. Specific characteristics of the industry The opportunity for travel Inspiring to work in bringing energy to society Being part of an innovative industry that produces something tangible which will be

needed for decades to come Operates on an enormous scale, is challenging and fast-moving

3. Benefits and welfare Good starting salaries and opportunity to be well rewarded throughout career Potential for good work-life balance

4. Education and training Positive experience during work placement Development and training opportunities with excellent graduate training programmes

5. Diversity in work environment Multicultural working environment Experience of different cultures and work ethics

7

 

Through what measures has the UK oil and gas industry succeeded in attracting, developing and retaining the Next Generation? In rank order (1 occurred most often in feedback): 1. Education Offering industry placements to university students Funding, supporting and linking into education Study break supported by companies

2. Mentoring and development Evidence of comprehensive, development programmes (though not throughout

industry) Offering mentoring programme within certain companies Formal professional development programmes On the job training and learning Adherence to reviews and goal-setting

3. Career progression Offering challenging, interesting internal movements to give wider experience Promotion and progression based on ability, not age

4. Welfare Flexible working (in terms of hours, compressed working week and rotation patterns,

working from home) Competitive salaries including good relocation packages

5. Diversity Recognition that industry is taking steps to give more ‘voice’ to younger people

8

 

What can deter the Next Generation from joining the UK oil and gas industry? In rank order (1 occurred most often in feedback): 1. Perception that companies are Too large and soulless, giving rise to feeling of ‘little fish in a big pond’ Male orientated Old fashioned, closed

2. Perception that industry is Declining, with no future Very cyclical so provides unstable career prospects ‘Unsafe’ A ‘big polluter’ and lacking responsibility to the environment

3. Lack of information about the range of opportunities on offer and how to enter the

recruitment process

4. Perception that only technical jobs are available rather than commercial

5. Perception that location too confined to Aberdeen

In what aspects has the UK oil and gas industry failed in attracting, developing and retaining the Next Generation?

1. Attraction of Generation Y Not enough is known about the industry as a whole due to little education of school

leavers outside of north-east Scotland; There is a lack of marketing of the sector as a nationwide industry; many individuals

believe it is present in north-east Scotland alone; The industry focuses on marketing the engineering aspect of the sector rather than

the wide range of careers on offer; The industry has not addressed the perception that the UK oil and gas sector is a

declining industry and is therefore not worth considering as a career option.

2. Development and Retention of Generation Y Some companies do not live up to the promises of training and development made

at the recruitment stage; Some companies do not offer tailored development planning and performance

reviews; Some companies do not fully recognise the role of management in the development

of young professionals; manager do not have adequate training to effectively aid the career development of young professionals;

Effective mentoring programmes to foster balanced career progression are not always offered.

9

 

Proposal 1: Increasing the Size of the Talent Pool

Introduction

To attract the brightest and best new graduates, the Next Generation conference delegates believe the UK oil and gas industry would benefit from a larger talent pool from which to recruit. The key obstacles in encouraging a larger number of people to consider the industry as a viable career option were identified from feedback as:

1. Little education of school leavers outside north-east Scotland: a survey of Oil & Gas UK members conducted by the Next Generation Task Group over the summer of 2009 revealed that 76% of companies work with schools only in and around Aberdeen, with only 14% of companies working throughout the UK; this means that the sector is missing out on marketing the industry to 11-18 year olds in more than 4,000 state secondary schools alone;

2. There is a lack of marketing of the sector as a nationwide industry;

3. The industry currently appears to focus almost exclusively on raising awareness of the engineering aspect of the sector; it needs to widen that effort to market the range of careers on offer;

4. The industry is not addressing the perception among those now considering their career

options that the UK oil and gas sector is a declining industry and is therefore not worth considering as a career option.

To address these issues and to promote the oil and gas sector to those considering their career options, there is scope to collectively create a positive brand for the industry.

The promotion of the industry will help potential employees find out more about the industry itself, the opportunities available and the areas of the country in which they are on offer. This interest in the oil and gas industry will hopefully increase the size and overall quality of the talent pool and in turn, reduce costs during times of high demand for skilled young professionals.

Promotion activities

As noted in the Executive Summary, promotion activities should include:

The development of a recognisable brand, suitable for the market in question; Aim to improve – through education – the image of the industry amongst those

considering their career options, in terms of type, importance, longevity and nationwide nature of jobs available, thereby increasing the talent pool interested in joining this industry.

In order to facilitate these activities the resources required would take the form of:

Supporting materials for the promotion operation; Buy-in from industry to work together to achieve these goals.

10

 

Developing a recognisable brand

Conference delegates identified several reasons (see page 9) why those considering their career options often discount the oil and gas sector. A fresh look at the effectiveness of communication with this group is required and one way to raise awareness is to brand the industry as an attractive career option.

Branding is a powerful tool used by companies to sell products to the masses. Brands invoke an emotional response to a relevant product ensuring that individuals want to be a part of it. What we want to do is ensure that the Next Generation understands that the oil and gas industry is relevant to them and to invoke an emotional response from them.

Oil and gas touches everybody’s life on a day to day basis; it is something that everybody is already a part of, but may not be aware of. A brand slogan has been identified: ‘You Are Part Of It’. This phrase highlights the fact that oil and gas is already part of every individual’s life, appealing to the socially aware Next Generation. It also helps to give the Next Generation ownership as they are required to follow a ‘signpost’ to find out exactly what they are a part of and how they could become more involved.

Supporting elements

Along with a branding exercise, the Task Group considered three supporting elements through which the following key messages can be conveyed:

Oil and gas plays a central role in the UK’s energy and economy;

It is a nationwide industry;

It offers a huge range of careers;

The industry and its technologies will remain important in the UK for decades to come.

1. Brand hub website The Next Generation are the first to resist reading and keep the television off, but are connected to the internet 24/7 so this is the ideal medium on which to place information. An existing website which contains some careers information, www.oilandgas4u.com, provides the ideal platform from which to develop a comprehensive tool for those wishing to find out more about the opportunities on offer. By working with OPITO – The Oil & Gas Academy to develop content and navigation, companies can ensure this website becomes a well-used resource for those considering their career options, with all other promotional material directing users to it.

The website would help to connect with the Next Generation on an emotional level, through a section on the relevance of the oil and gas industry to their lives and why it is considered to be an important industry. It would highlight the wide variety of opportunities on offer and

11

 

where jobs are located. The Next Generation feel they have a unique and active lifestyle; this section would show them how a career in oil and gas can empower this lifestyle.

The website would contain case studies on the company, life and activities of Next Generation individuals working in the sector. The Next Generation are highly perceptive to brands recommended to them by their peers. Highlighting the effect the industry has had on young professionals already working in the industry will help uptake of the brand and in turn, recruitment efforts.

Building up the website content would require the commitment and input of companies, for example in providing case studies, through OPITO – The Oil & Gas Academy. Only with this commitment could the website become a comprehensive and useful resource for those wishing to find out more about working in the industry.

2. Brand awareness DVD and promotional material The Next Generation is brand-savvy and treats new ideas with scepticism; to ensure that this brand is accepted, an awareness DVD, illustrating the four key messages above, would be played to capture their imagination. It would appeal to the technology-savvy, adrenaline-fuelled Next Generation by being visually stimulating and conveying a technologically advanced, exciting industry. This visual tool, reinforced by a presentation and brochure, would entice viewers to find out more by visiting the website.

An overview ‘You Are Part Of It’ presentation would help to connect with the Next Generation on an emotional level. Reflecting the website content, it could cover the relevance of the oil and gas industry to their lives, career opportunities on offer and a case study on the company, life and activities of a Next Generation individual working in the sector.

Further to this, a careers brochure (which OPITO – The Oil & Gas Academy already produces) could provide a tangible reminder of the brand and the opportunities on offer, to be kept and reviewed as and when the individual wants. Giving the Next Generation something to take away with them would appeal to their desire to discover something new, oil and gas, for themselves.

3a. Engaging with the target audience: wider application To address the fact that the vast majority of companies’ work with schools is currently confined to the Aberdeen area, it is proposed that the brand is taken UK-wide; this will guarantee that as many 11-18 year olds know about the oil and gas sector as possible.

An education pack, containing a copy of the DVD, presentation slides and brochure, would be developed and sent to all secondary school heads and careers advisors with a personalised covering letter explaining the brand, its intentions and how the industry supports employment in the region in which the school is located. It would also ask for the school to contact OPITO – The Oil & Gas Academy if it would like to request a visit from an industry Next Generation representative.

The school contact list would be created from a web directory; this directory, for a small fee, gives contact details for all the schools across the UK. The service also allows one e-shot per month to be sent to schools. This e-shot will be used to aid the ‘You Are Part Of It’ campaign as well as informing schools of the existing oil and gas education activities on offer to them.

If the school requests a visit from an industry representative, a Next Generation individual working in the industry would go to the school under the ‘You Are Part Of It’ brand, showing

12

 

the DVD, giving the presentation and handing out leaflets. To ensure the correct messages are conveyed to 11-18 year olds, each presenter will be sent a USB stick containing the presentation slides and a training video of a ‘You Are Part Of It’ presentation being given.

To ensure this element of the campaign is effective, background research and a pilot study in a particular region should be undertaken to gain a better understanding of the likely uptake of visits by schools, companies’ willingness to release young professionals from their duties as well as the resources of OPITO – The Oil & Gas Academy and other organisations that could be utilised.

For this initiative to succeed, senior management must endorse it. There is a requirement to allow young professionals the time and budget to go and visit schools across the UK. This will not only help to develop the young workforce already in the industry but it should help increase the talent pool for recruitment in the future.

3b. Engaging with the target audience: brand promotion though existing channels Companies are already working with schools across north-east Scotland, promoting the industry through different activities such as ‘ROV MATE,’ ‘STEM in the pipeline’ and offering 12 week placements for final year students. The Next Generation Task Group survey revealed that 22 companies are directly linked to 90 schools across north-east Scotland, with another 8 companies involved in school projects through sponsorship and education programs. Consolidating these efforts under the brand umbrella would add to their credibility.

Some of these projects with schools are led by Next Generation individuals already working in the industry; in some cases, their perception is that while these projects do generate enthusiasm for particular subjects, often the message about application of the activity to the oil and gas industry fails to be recognised. The Task Group believes that if companies embrace the brand when participating in these educational activities, the industry and the opportunities it has to offer will be understood by a much wider audience.

It is proposed that companies ‘top and tail’ their existing education events with the promotion of the brand. The education pack, as described in 3a, would be distributed to the Education Focal Points within companies to aid this. Time at the start of the day could be taken to show the awareness DVD and present the overview slides, helping to provide context for the given activity. ‘You Are Part Of It’ brochures, which would act as a ‘signpost’ to the website, would be handed out at the end of the event as a reminder of the day and the careers on offer in the industry.

For this brand to be as effective as possible and to increase the number of young people who are aware of the industry and the possibilities it holds, companies must provide input into it and importantly, endorse its incorporation into education and recruitment campaigns.

13

 

Cost and evaluation

This campaign would cost industry approximately £83,000 in the first year and £38,000 per annum thereafter:

Set up costs £25,000 Production of awareness DVD £20,000 Overhaul of website Annual costs £15,000 Printing and distribution of DVD, presentation and brochure x 4000 schools £1,000 Schools contact list £2,000 Production of training USB sticks for presenters x 500 £10,000 Updating and maintenance of website £10,000 Organisation of presentation scheme To measure the exposure of 11-18 year olds to the brand and the industry, which should ultimately increase the size of the talent pool available from which to recruit, progress in three areas will be monitored:

1. Use of the brand by industry: an annual survey could be sent out to the members of Oil & Gas UK’s skills forum to find out if the brand is being included in their education activities;

2. Uptake of the brand by schools: a log of school visits by industry would be held by the

organiser and reviewed regularly;

3. Use of the website: the number of hits that www.oilandgas4u.co.uk receives would be monitored to ascertain if the initiative has boosted interest.

Summary

This proposal presents the development of a positive brand for the industry as a career option and possible elements which could help support the promotion exercise. In order to move this proposal from the concept to development and execution stage, the following steps could be followed:

Confirming cross industry buy-in to the concept of leveraging the brand, as part of and in addition to existing recruitment campaigns;

Committing to providing resources to support the development of this promotional activity;

Following the existing process for developing and implementing skills initiatives via Oil & Gas UK’s skills forum and OPITO – The Oil & Gas Academy.

14

 

Proposal 2: Harnessing the Potential of the Next Generation

Introduction

There is much research supporting the claim that the work environment in which different generations flourish varies, depending on the influences under which the group has grown up and the challenges they have faced (see list of research reviewed on page 26). In order for businesses in the UK oil and gas industry to harness the potential of their young professionals, there is a need for them to understand the motivations behind the generation and to put in place measures which will allow them to contribute fully to the organisation’s goals. In this way, productivity will be maximised whilst promoting organisational sustainability. This proposal aims to raise awareness within companies of the ways in which the productivity of these employees can be maximised with the launch of a Next Generation Code of Practice. The Code would signify commitment to working with employees to harness their productivity and could therefore be used to attract potential employees.

 

Next Generation Code of Practice

A survey conducted by the Next Generation Task Group was completed by conference delegates. The results indicated that, in their opinion, the five most important factors in harnessing their potential were:

Development planning: realistic, relevant and tailored;

Performance reviews: frequent, constructive and transparent;

Effective mentoring;

Visible and approachable managers;

Flexible working opportunities.

Drawing on conference feedback and the Task Group’s research, an explanation of each of the five points, including the costs and benefits to companies, follows. Evidence and supporting examples can be found in Appendix D.

Development planning

The most popular response was a realistic, relevant and tailored development/training plan, emphasising the importance of providing a clear structure for training and development within a company. This helps to provide an atmosphere where an employee feels they are treated individually and not just as one of the masses. Next Generation employees are likely to be very target and goal driven and like to see how the targets and goals they are set relate to their own personal development strategy.

15

 

More knowledgeable employees who relish working for a company which values them will become stronger contributors, enjoy being challenged, become highly motivated and more satisfied. This leads to stronger retention and will allow the employer to maximise the productivity of its workforce. It is not only large companies with HR departments that can develop an effective training/development plan. Time and commitment at management level is more important than financial cost. Indeed, there is evidence (see Appendix D) throughout the oil and gas industry to show that even the smaller companies can provide a robust and effective training/development plan. The key is to be innovative and find out what your employees want from a particular programme; this makes them feel engaged and ensures the plan is realistic, relevant and tailored to the employee.

Performance reviews

Many individuals have performance plans in place but these should be reviewed regularly with constructive, positive and negative feedback given to allow opportunities for improvement. It was found that the ideal frequency for formal performance review is bi-annual and that this process should be very open. Feedback does not necessarily need to be formal. Recognition can be through email or other appropriate channels. The Next Generation is used to having everything at their fingertips, i.e. internet enabled mobile phones, and an instant response is often more effective. This should be given by someone relevant who works closely with the individual such as a line manager. Implementing this measure can result in improved morale and a greater willingness to contribute and learn. If time has been taken to ensure individuals’ goals are aligned with company goals, overall productivity should increase. Regular reviews also promote a feel-good factor in the workplace by ensuring that any issues that arise for the employee or manager are resolved quickly. The costs involved in offering frequent, constructive and transparent performance reviews are minimal as it mainly requires the time and effort from the appraiser, and overseeing by the line manager and HR department.

Effective mentoring

Next Generation delegates indicated that they strongly value learning from individuals in the workplace with more experience and knowledge than themselves. Given that individuals will eventually retire, it is important for businesses that knowledge transfer to younger generations is facilitated. There is the misconception that companies have to be large to have an effective mentoring scheme but this is not the case. Mentors can, in fact, go outside the company to interact with schools and universities and mentees can contact other businesses to propose a relationship. However, in order for mentoring to be effective, it is important to have a strong relationship between the mentor and the mentee; the key to successful mentoring is securing people’s time.

16

 

Mentoring activities can lead to the creation of a supportive environment within organisations, resulting in a very low turnover of staff. This is beneficial for employees as it encourages them to consistently deliver excellent performance. Through support, mentoring and development, Next Generation employees are enabled to take on bigger challenges, allowing them to build on the experience and success of the older generation within organisations.

Visible and approachable managers

Next Generation employees typically flourish under a slightly different management style than has been typical in many organisations. It is important to develop a personal connection with these individuals in your organisation, as is providing honest and frequent feedback, on-the-job coaching and career-planning advice. Indeed, the Next Generation values informal conversations about these topics. Doing so promotes a culture where employees have the confidence to offer challenge alternative points of view. On the surface, this aspect may appear easy to change; however achieving managers that are visible and approachable requires adjustments to culture and behaviour which can be challenging. Cultures are often deeply engrained in an organisation, thus leading by example is central to success; it is essential that policies put in place are followed through. Getting the balance right is clearly key as it is not productive to spend all day meeting employees; however, it is important that channels exist so that ideas and opinions can be shared without intimidation. A continuous open door policy is not necessary (as we appreciate that day to day business needs to be taken care of) but creating regular opportunities for communication is vital. The benefits of implementing this measure include an open culture and a proactive workforce in which employees feel empowered to suggest alternative viewpoints. The measure also facilitates innovation and creativity. In comparison to the benefits, the cost involved in managers taking the time to approach and interact with colleagues is low.

Flexible working opportunities

The Next Generation, like previous generations, are used to working hard; they would just prefer to do it on their own terms. This might mean working late into the night but doing it while ‘plugged in’ from home. Creating a flexible and innovative working environment can improve performance and productivity. According to a report in the Harvard Business Review, achieving balance with flexible and remote working conditions was listed by 89% of Generation Y as an important consideration; Next Generation conference delegates agreed. The key issues highlighted in pursuit of an increased work life balance were flexible working hours, compressed working week, flexibility in rotation patterns and the opportunity to work from home. This measure results in employees becoming more relaxed, willing to contribute effectively, motivated and fresh when in the office and reduces absenteeism. While it does require a sensible approach and trust should be established, employees are more inclined to complete tasks because they are not constrained by the hours they work. In terms of employing the technology to allow flexible working, there is a financial cost to this measure. However, creating opportunities for a work life balance is likely to be less costly than increased salaries and bonuses.

17

 

Cost and evaluation The cost to industry of supporting this proposal can be seen in terms of commitment and change in managerial attitudes rather than budgetary contributions. It is proposed that the five point Code of Practice is managed by OPITO – The Oil & Gas Academy. A key requirement of signing up to the Code would be participation in an online survey in which companies would be asked to explain how each point is being addressed. The survey could be sent to senior signatories but vitally, to a selection of Next Generation employees. Anonymity of these employees would be essential to ensure an open and honest response. From the survey results, the organisers could judge company compliance. A suggestion for grading is to divide companies’ results into quartiles allowing different levels of awards.

Summary

This proposal highlights five key areas where employers can work with their Next Generation employees to ensure their productivity is harnessed. The findings provide a useful guide in their own right but there is scope to develop these into a Code of Practice, adherence to which could help companies market themselves as an attractive firm to work for and retain employees. This proposal is at the conceptual stage but further discussion and implementation could be executed through engagement with OPITO – The Oil & Gas Academy at the skills forum.

18

 

Appendix A

Definitions of the four generations present in the UK workforce today

1. Veterans Born before 1947, this group experienced the Second World War in their childhood and currently accounts for 11% of the workforce. They are experienced, as industrial service and knowledge workers, and have lived through extensive change in the work environment. Movement up the corporate ladder has been through invitation as recognition of their work.

2. Baby Boomers Born between 1948 and 1963, this is a large generation that accounts for 30% of the workforce. Workers grew up in relative prosperity and safety. Their opinions were developed during the sixties and seventies and are oriented towards growth, changes and expansion. They seek promotion by working long hours and demonstrating loyalty. In general, they believe anything is possible and therefore strive for the corner office, top title and highest salary.

3. Generation X Born between 1964 and 1978, this group accounts for 32% of the workforce. These workers’ formative years were characterised by Thatcher’s commercialism and large scale redundancies; with both parents working full time, they have lived through a blurring of traditional boundaries, with a lack of clarity at home, work and in the world. The notion of a ‘job for life’ became history with this generation; workers are often loyal to their profession but not necessarily their employer.

4. Generation Y Born between 1979 and 1991, members of this generation are currently aged between 18 and 30 years and account for 27% of the workforce. They grew up during the ‘decade of the child’, enjoying unprecedented levels of parental support, supervision and involvement. Academics purport this generation to be ambitious, bored by routine, connected 24/7, entrepreneurial, expert in multi-tasking, goal-oriented, individuals rather than team players, optimistic, self confident and self reliant. A full explanation of the work environment that inspires high productivity and loyalty in Generation Y can be found in Appendix A.

19

 

Appendix B

Environment which inspires high productivity and loyalty in Generation Y (according to a review of research listed in Reference Articles on page 26) Leadership style Motivational Foster strong relationships and inspire sense of balance, purpose and meaning Allow Generation Y immediate responsibility and the opportunity to be engaged and

respected early on in career Provide continuing challenging projects to prevent boredom Set goals with tight deadlines so that Generation Y can build ownership of tasks Offer opportunities to excel and importantly, provide regular feedback Allow autonomous thinking Learning and Development Expectation of access to and strong reliance on mentors and company champions:

Generation Y views colleagues as a vast resource from whom to gain knowledge and interpret mentorship as the management’s commitment to their success

Immediate feedback on work is seen by Generation Y as positive reinforcement and central to development

Perception that education is very valuable: Generation Y expects to be educated appropriately before a job is taken and that essential on-the-job training will be provided to ensure success

E-learning is not the most effective method of training and development, face-to-face training is best

Welfare conditions Maintaining work-life balance is a more important motivator for Generation Y than

money so flexibility and balance in day-to-day life is imperative 9am-5pm work hours don’t work, Generation Y functions best in a fluid world Allowing the blending of home and personal lives will improve productivity Flexibility in career pattern: the opportunity to take multiple ‘mini retirements’ or career

breaks instead of stopping work entirely at 60 Communication style Application of advanced technologies that Generation Y has grown up with and is

familiar with to communication among the workforce. Efficiency is the name of the game – meetings and presentations should be kept as

brief as possible Learning and development through the use of technology (podcasts, iPods) although e-

learning is not as effective as face to face Use of open social networks that embrace open, honest communication Performance management style Require fair and direct managers, highly engaged in Generation Y’s development Generation Y expects constant and immediate feedback on work. Semi-annual or

annual performance reviews do not suffice; continual recognition and affirmation required

Promotion based on emotional intelligence and results, not seniority or hours worked

20

 

Appendix C

Feedback on the ‘ideal company’ of the UK oil and gas industry’s Generation Y Leadership style Generation Y values a company with a clearly defined strategic direction and a realistic vision for both the company itself and the individual; this means expectations from both sides can then be understood and managed. Feedback and praise is a very important feature of the ideal company with communication and ‘being listened to’ highly regarded by this generation. Generation Y values a visible and approachable management structure. Motivation, encouragement and support are highly valued in the workplace by Generation Y, as is leadership by example, as opposed to leadership by control. Some of the feedback on leadership style had a distinct CSR flavour. Generation Y valued a company that exhibited environmental awareness and responsibility and an interest in investing in the communities which are affected by their activities. Other points to note were a favouring of leaders that treated staff and contractors on the same job equally. Learning and development Mentoring and coaching are seen as key tools for development, and are looked upon favourably by Generation Y. Feedback suggests that having a mentor who is willing to teach and who can be respected is very important but so is the chance to change mentors if a relationship is not effective. Generation Y expects both in-house and accredited formal development opportunities. They appreciate the finance and time that companies contribute. Generation Y values a company which is open about the limit and range of training on offer realistically in times of recession. Generation Y also value being give time to undertake on the job training. They value experiential learning through temporary assignments rather than just ‘information dumping’. Tailored and relevant development plans are important to Generation Y. They do not ‘fall for’ box ticking and believe learning happens at different paces for different employees. Generation Y particularly points to the requirement that assurances that there will be learning and development opportunities by companies trying to attract graduates are followed up on. Generation Y regard having access to all areas of the business and networking as effective training as it allows knowledge sharing. This can be achieved by promoting communication between graduates and between different business areas. Welfare conditions Generation Y feels very strongly about work-life balance and places a high value on flexible working opportunities. This may be flexible working hours, nine-day fortnights or the ability to work from different locations out with the office.

21

 

Health awareness is important to Generation Y and a focus on healthy eating and stress management in the work place is seen as important to these individuals. A good working environment is sought by Generation Y, including correct lighting and a comfortable workspace. Health benefits, subsidised dental care and sports facilities would all be features of Generation Y’s ideal company, with gym membership and sports/social activities proving popular. Fair and non-prejudicial maternity and paternity benefits are also important to Generation Y. Trust and fairness are characteristics that Generation Y would look for in their ideal company environment, and schemes such as buddying new starts, support systems and social events would be favoured. Communication style As Generation Y workers have grown with the rapid development of technology, it is no surprise that they favour the use of different tools like MSN and social networking to communicate effectively. Having easy instant access to networks and peers is also important. This enables Generation Y employees to ‘help each other out’ and allows them to access and learn from the expertise of more experienced people. Generation Y believe they work more effectively if their managers make themselves available and approachable for two-way, face to face communication. They also favour a company that is open and honest about where it is headed and offers open and informal channels for Generation Y to raise issue honestly. Performance management style The most important aspect of the management of Generation Y’s performance is the review process. Generation Y places extremely high importance on regular, constructive appraisals throughout the year where they can obtain formative and informative feedback from managers. They expect praise when it’s due and believe success should be celebrated as a matter of course. Generation Y also prioritises an open performance review process in which clear, realistic aims, objectives and goals, which they know and understand, are set. The group believes that it should be performance that drives salary, rather than age or working level. What does the UK oil and gas industry’s Generation Y believe the industry requires of them? Loyalty to the company: not just ‘following the money’, dedication and putting in extra

effort where needed Flexibility – the ability to work both as a team player and independently Show initiative (thinking outside the box) and be able to voice innovative ideas Good representative for the company: adopt company values and culture Competence: getting the job done well and on time, providing value for money Realistic: being patient when needed and recognising that change doesn’t happen

overnight when moving forward with new suggestions.

22

 

Appendix D

Evidence and supporting examples of the five most important factors in harnessing the potential of the UK oil and gas industry’s Generation Y Realistic, relevant and tailored development/training plan Generation Y prefer goods and services tailored to their particular needs rather than ‘off the shelf’ products and this is beginning to transfer into the work environment. A recent paper in The Journal of Petroleum Technology makes reference to the fact that ‘the industry needs people who can start making non-standard original technical decisions after 2 years and managerial decisions at 4 years’. This requires the employer to invest in the employee by providing a realistic, relevant and tailored development/training plan. The Next Generation want a challenging work environment that aligns with their skills and interests. Various programmes can inspire these workers to do their best while improving loyalty and retention. Some of the data collected at the Next Generation Conference showed that when delegates talked about this particular point, they listed aspects such as creating structured, individual training plans tailored to current and future roles which are not a set of empty promises or a box-ticking exercise. They also commented that if the point can be addressed by the employer, the development, challenge, progression and variety of roles offered by the industry would continue to help retention. Chevron’s Global Horizons programme was originally developed with the aim of addressing the skills shortage of an ageing workforce within the oil and gas industry, developing current employees to fill gaps when senior managers/employees retire. It consists of 3 varied assignments each lasting 18-24 months, to include structured technical and soft skills training. Once employees have graduated from the programme, development continues with the Pathways programme. At Sainsbury’s, talent management and succession planning are key strategic areas for business. Graduates are included in the Annual Talent Reviews which take into account individual performance and potential, enabling Sainsbury’s to identify the career development opportunities that match that particular employee’s skills and attributes. Frequent, constructive, transparent performance reviews Centrica offers an Employee Performance Management Scheme which ensures that ‘as well as informal discussions and regular reviews with your manager, you’ll have an annual performance review designed to help you set clear goals and identify the skills and support you need to achieve them’.

Centrica also has a programme for assisting in employee career progression by providing avenues for developing skills. Their culture is that ‘personal development will always be a

23

 

possibility, because we strongly believe in giving people the scope to set and realise their own goals. If you want to make the most of your career, we'll encourage you all the way.’

However, the process does not have to be formal; many companies employ a system of ‘having a coffee’ every couple of months, but whatever the procedure, it must provide an opportunity for employees to raise issues and feedback given must be honest. Visible and approachable managers Generation Y believes it works more effectively if their managers make themselves available and approachable for two-way, face-to-face communication. They also favour a company that is open and honest about where it is headed and offers open and informal channels for Generation Y to raise issues honestly. At Venture Production, a monthly ‘lunch and learn’ session is arranged. The CEO hosts a lunch for an open Q&A session where no question regarding the business is out of bounds. Flexible working opportunities (time and location) Researchers found flexible working arrangements promoted a higher degree of job satisfaction in two-thirds of the European firms surveyed and lower levels of absenteeism were reported in just over a quarter of them. Financial services companies have become innovative over the years at offering a flexible work life balance in the work place. Citigroup, for example, has started to offer employees the Alternative Work Solutions programme, which allows employees to work where and how they want. To allow this type of program to run successfully there needs to be a high degree of trust between the employer and employee. Another company that has proved this can work is the electronics retailer, Best Buy. It managed to implement its Results-Only Work Environment for staff based at its headquarters in 2006. This programme held people accountable for results and not how many hours they work. Effective mentoring The Industry Technology Facilitator (ITF), is an internationally recognised champion for technology innovation within the oil and gas industry. Despite having a relatively small number of employees, ITF recognises the benefit of having an external mentor scheme and openly encourages staff to find an industry champion to mentor them in their role. A set procedure is established based on the personal development of the employee. An innovative new type of mentoring is intergenerational mentoring and this has been tried and proved successful by Cisco systems, the US maker of communications equipment, which has managed to connect its ‘legacy leaders network’ for pre-retirement boomers with its ‘new hire network’ to encourage a transfer of knowledge. Cisco has reported that this new type of mentoring has created a widespread interest within the company and has help with the attraction of Generation Y.

24

 

PSN’s mentoring network is a cost-effective tool, which complements other training and development mechanisms. For minimal outlay, the rewards can be huge. Greater employee satisfaction means staff are more motivated and want to stay with the company. Bob Keiller, PSN’s chief executive, said: “Mentees get invaluable and confidential career-enhancing advice from someone whose opinion they respect. They receive essential encouragement and support to generate creative thinking and innovation, something they might not be confident to do without their mentor’s support”.

25

 

Reference Articles

Crystal Ball: 10 Ways Generation Y Will Change the Workplace Ryan Healy on http://www.brazencareerist.com/2008/05/23/crystal-ball-10-ways-generation-y-will-change-the-workplace, May 2008 Gen Up - How the Four Generations Work Chartered Institute of Professional Development (CIPD) and Penna, September 2008 Gen Y in the Workforce Tamara Erickson, Harvard Business Review, February 2009 Generation Y in the Workplace Cara Spino, Defense AT&L, November/December 2006 Generation Y: A Highly Productive Resource for Oil and Gas Companies Deloitte Center for Energy Solutions on http://www.deloitte.com/dtt/article/0,1002,sid%253D26551%2526cid%253D254425,00.html, 2009 Generation Y: Powerhouse of the Global Economy Deloitte on http://www.deloitte.com/dtt/article/0%2C1002%2Ccid%25253D242641%2C00.html, 2009 Generation Y: Unlocking the Talent of Young Managers Chartered Management Institute in association with Ordnance Survey, June 2008 Inspiring the Next Generation Tony Meggs, Group Vice President, Technology, BP on http://www.spe.org/spe-app/spe/tt/vol1/no2/exec_perspective.htm, 2007 Six Steps for Guaranteeing Generation Y Productivity Julius Steiner on http://www.allbusiness.com/human-resources/employee-development/4511048-1.html, July 2007 Survey of 21,000 Organisations, The European Foundation for the Improvement of Living and Working Conditions http://news.bbc.co.uk/1/hi/uk/4875494.stm, 2006 Survey Report: Innovation in the Workplace: How are Organisations Responding to Generation Y Employees and Web 2.0 Technologies? Chartered Institute of Professional Development (CIPD), September 2008 Understanding Generation Y http://blog.musicrowsearch.com/main/2008/10/understanding-generation-y.html, October 2008

26

 

27