WORKFORCE ACQUISITION & MANAGEMENT

STRATEGIES IN OIL & GAS

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THE GAME CHANGERS What is happening right now that will have lasting effects on the energy industry’s long-term workforce strategies?

Brett Haugh Principal and EVP, Ascende

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ASCENDE ENERGY ACUMEN

THE ENERGY WORKFORCE Brett Haugh

GAME CHANGERS

“Game Changers” are critical to understand the energy industry: Fracking/shale revolution

Regulation and policy changes

Aging workforce

New technology

Grid modernization

Exportation of NGLs

Power generation – mix and carbon management

Infrastructure/new build

Exportation of LNG

5

THE FACTS

Since 2010, the energy industry has been hiring at a rate that outpaces the general economy

0%

25%

50%

Private Sector Oil & Gas

7%

25%

Since 2006, hourly wages have outpaced general industry

0.0%

10.0%

20.0%

30.0%

General Industry Oil & Gas

17.8%

23.7%

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THE FACTS Up to 50% of energy industry will retire in 5 to 10 years – U.S. Department of Labor

Shortage gaps Engineering – mechanical, electrical, civil, petroleum, logistics, etc. Infrastructure – welders, truck drivers, electricians, pipefitters, mechanics, etc.

Global demand for energy will increase by 1/3 through 2023 The significance of game changers are not being factored into HR strategy to fill gaps due to employees:

Retiring General attrition Projected growth expansion

The industry is stealing from each other and driving up costs Controlling fixed costs, including wages and benefits, will be the key priority Greg Ebel, Chairman, President and CEO of Spectrum Energy summarized the workforce challenge like this:

“The limiting factor in the energy industry is not access to capital and not access to hydrocarbons to produce. The limiting factor is people.”

7

WORKFORCE PLANNING

8

External Drivers

Fracking/Shale Crew Changes

Millennials New Technology

Infrastructure Build Exportation

70% of all companies have NO plan!

Analyze

External Drivers Business Needs

Internal Workforce Talent Pipeline

Labor

Demand

Supply

Result

Value Proposition

WORKFORCE DEVELOPMENT

Community/region Executive team Students Parents Educators

Build competency model

Basic Job-specific

Employment opportunities Advancement

Balance supply/ demand Identify gaps Game changers Efficiency

Applicant tracker Talent supply

Work together City Region Nation

Trade organization Forum discussions

Compensation Benefits Culture Advancement Marketing/ engagement Attraction and retention

Workforce Development

Process

Career Awareness Education Workforce

Planning Structure

and Support Employee

Value Proposition

9

VALUE PROPOSITION (SEGMENTED)

10

Boomers Millennials Attract Retain Motivate Attract Retain Motivate

Base Pay High Medium Low High Low Low

Bonus Low High Medium Medium Medium Medium

Incentives High Medium High Low Medium Low

Benefits High High Low Low Low Low

T&D Low Medium Medium High High High

Culture Low Low Low High High High

Environment Medium Low Low High High High

Secret is the mix of programs and method of communication. What’s important to Boomers is not important to Millennials.

Additional segmentation by field vs. office personnel.

VALUE PROPOSITION (BASIC CONCEPT)

11

Value Proposition

Pay Benefits Performance Advancement Environment

Base

Bonus

STI

LTI

Medical

Retirement

Life

Accident

Disability

Perquisites

Feedback

Behaviors

Opportunities

Training

Personal Development

Professional Development

Growth Potential

Leadership

Culture

Management

Physical Space

Safety

Security

Diversity

Business Objectives (3 to 5 years)

Human Resources Objectives (3 to 5 years)

3 year shelf life maximum

TALENT MANAGEMENT, DEVELOPMENT AND ACQUISITION STRATEGIES IN ENERGY SUMMIT Tuesday, Sept 30th, 2014 | Omni Houston Hotel at Westside

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