RBG Group

International Human Resources

2

International Human Resources

Introduction

• Who am I and what is my background?

• What do successful organisations do well when managing a mobile workforce?

• What is the reality of doing business overseas / internationally in the Oil and Gas industry?

• What are the challenges facing RBG?

• What is my role in an International environment?

• What are the general challenges?

• Questions

3

Who am I?

Tracy Thomas

• BSc (Hons) Psychology 1991 followed by a

Postgraduate in PERSONNEL MANAGEMENT 1995 RGU• 1995-2004 – AMEC (up through the ranks from Training and Development Co-

ordinator to Deputy HR Manager and finally – International HR Manager in 2000)

• 2004-2005 – Taylor Woodrow – Regional HR Manager

• 2005-2009 – KCA DEUTAG – Group HR Manager (NBU)

• (responsible for HR across mainland Russia, Kazakhstan, Azerbaijan, Sakhalin, Angola, Norway, Germany, Netherlands and UK)

• 2009 – RBG! International HR Business Partner / Consultant

4

International HR in the Oil and Gas industry…and my experiences

…..has been a great career for me

I have regularly visited all of the following through my work:

• Azerbaijan

• Dubai

• Germany

• Kazakhstan

• Norway

• The Philippines

• Russia (Western Siberia)

• Sakhalin Island

• Singapore

• Indonesia

• USA

Highlights!

• 10 hour train journey through Siberia to visit 2 Land Rigs (Drilling)

• Visiting a children’s home in the Philippines sponsored by the Company

• Graduate recruitment

5

International HR practice

• Prepare an employing entity/ company in a tax free jurisdiction

(No requirement to pay employee taxes in the employing country – only in the country of assignment (host country) – thus making it a cheaper employment option)

• Successfully move personnel from location to location

• Succession Planning*

• Standardise “international” packages that are based upon competitive rates for the job role and experience rather than being driven from the Country from where the individual comes

• A global employment policy (and benefits)

• A “trouble shooter” goes into a new territory and scopes out issues such as visas, work permits and identifies an in-country “partner”, organises accommodation, roads etc.

What do successful global organisations do from an HR perspective?

6

What is the REALITY of doing business “overseas” within the Oil and Gas industry?

The reality is often different from best practice!

• Normally an organisation has its “roots” in a location e.g. the UK

• Normally an organisation is put together AFTER business has been acquired in a particular location

• Often there is no infrastructure in place for the business in question

• Often Operationally focused personnel are having to cover HR, Finance, Business Development and Law (they often have little or no experience)

• Expatriates are working in an environment / culture that is new to them

• Expatriates working alongside local personnel – they are normally there to train the locals

7

What are the challenges facing RBG?

International Operations Personnel have often been left to set up a new organisation in a new country! The individuals are pragmatic and have build successful business.

BUT

What this means can often mean that they “do their own thing”

e.g. without legal, financial, tax or HR support!

International Operations take great responsibility for their own personnel – they often recruit, mobilise and manage personnel from start to finish –and they do so very quickly.

The Challenge is:

• to know who has been mobilised

• Agree rates

• Get consistency of terms and conditions

• Ensure Employee records are centralised and consistent

8

What are the challenges (ctd)

• Keeping up to date with local legislation, home legislation, good practice - and litigation!

• Keeping up to date with Visa and work permit regulations (every country varies… and often changes from time to time)

• Making sure that we can deliver our client’s needs and expectations BUT still ensuring that our own processes are followed

• Culture – different countries have difference cultures, values and ways of doing business and these need to be understood

• The cost of employing expatriates, on average is 4 times the cost of a local (including travel, accommodation, taxes etc.) – so it is expensive

• Offering a package that is competitive but enough incentive!

9

What is my role in supporting International Operations (within RBG)?

International HR (based in “head office”) is responsible for:

• Focal point for all advice

• The International Human Resources Policy

• Group employee Tax policy

• Providing a global framework of “standards” from which to build local policies

• Standard expatriate contract templates /terms and conditions of employment

• Support and guidance to the International employing company – RBG Services International FZE (Dubai) – and HR advice to the local Manager

• Support to Internationally based Managers and HR teams in relation to use of and implementation of Group HR policies and procedures

• Support to Managers in dealing with all expatriate issues including but not limited to discipline, redundancy, promotion, pay increases

• To ensure that all personnel are accounted for at all times- through up to date records, POB registers and accurate database information for all personnel

• Development of Local HR Managers

10

How can HR help International Operations?

• Customer Focus – understanding the customer needs

• Offer neutral support and consistency

• Implement and improve processes to ensure successful resourcing and mobilisation of high quality personnel

• Centralising the issue of contracts and standardising terms and conditions

• Working towards a consistent HR policy

• Maintaining a commercial focus

And

• Providing opportunities for development in new locations

• Providing Management development opportunities

• Promoting better communication….!

11

Communication!

12

Summary

• Working internationally provides a lot challenges

• HR can bring a lot of positives to an international organisation if integrated fully as a “Business Partner”

• Understanding local legislation and promoting “best practice” is important

• HR is often the “glue” that brings the locations together

13

Questions

??