Welcome…

An UPSTARTLIVE breakfast forum

Sponsored by
Congratulations on your important and dynamic role.
The market you serve may not always appreciate all
that you do, but we...
News & Upcoming Events:

A 2-Day Conference right here in Houston, Texas.

FEBRUARY 25-26, 2014

Hot of the digital press:...
Thank you to our sponsors…
An UPSTARTLIVE breakfast forum

Speakers
David Lee
Vice President Americas
Rigzone

Tina Kutach
Global HRIS Manager
Wood G...
Recruiting Challenges,
Trends & Outlook from the
Front Lines of the Global
War for Oil & Gas Talent
Who is this guy?

David Lee

VP, Americas
Rigzone

•

~1 mm professionals visit Rigzone monthly, up 30% year/year

•

~1.1...
Today’s Agenda

 Oil and Gas Employment Situation
 Changing Workforce
 Retention and Recruitment
Strong Hiring in Oil & Gas

Change in U.S. Oil and Gas Employment

70,000
50,000
30,000
10,000
-10,000
-30,000

2013 YTD

...
Significant Industry Employment Growth

U.S. Workforce

Support Activities for
Oil and Gas Operations
300,500

December 20...
Management Growth Outstrips Production

U.S. Workforce

Production & Non
Supervisory Employees

94%
July 2013

December 20...
Growth in Female Colleagues, but at a Slower Pace

Women in the Workforce
December 2004
48,500

July 2013
83,600

19%

17%...
Unprecedented Recovery

Change in Oil and Gas Workforce Employment
Economic Recoveries Index
1991 Recovery

2001 Recovery
...
Competition for Industry Talent

% of U.S.-based Oil and Gas Professionals
Receiving at least One Call from a Recruiter
(i...
Today’s Agenda

 Oil and Gas Employment Situation
 Changing Workforce
 Recruitment and Retention
Engineering Talent Gap

Degreed U.S. Engineers By Age

30%

25%
20%

15%
10%

5%
0%
20-24

25-29

30-34

35-39

Source: So...
Changing Workforce

Largest deficit concentrated in mid-career population

Many companies cannot find experienced professi...
Changing Workforce = Wisdom Gap?

1,200

Bachelors Degrees Awarded
Petroleum Engineering
(U.S. Universities)

• "The opera...
Retaining Gen X & Navigating Gen Y

Gen X oil workers are in danger of “burning out”

Gen X employees are seeking better w...
Today’s Agenda

 Oil and Gas Employment Situation
 Changing Workforce
 Retention and Recruitment
Retention Strategies

What would most persuade you to stay?
Increased salary

46%

More interesting or challenging assignm...
Industry Trends

Companies Promoting Faster

Companies are Flexible (Parental leaves, flex plans, childcare options, partt...
Aug-13

Jul-13

Jun-13

May-13

Apr-13

Mar-13

Feb-13

Jan-13

Dec-12

Nov-12

Oct-12

Sep-12

Recruiting Everywhere

Mob...
Recruiting Everywhere Efficiently – Open Web Coming

Note: Name and picture have been changed for public presentation purp...
Q&A
David Lee
VP, Americas
vv

26
27
Our Business:
People Oriented…Project Driven

Offshore

Process
Plants

1987: 3 Founders

2013: 4700 US + 3200
Internation...
Where We Started:
A Transactional System
23 Forms for
Every New Hire

Poor New Hire
Experience

x

Faxing to & from
Offsit...
Where we Needed Help
Meeting Unique Business Needs

Growth and Acquisitions

Pipeline & Field
Services Model

30
Our Need:
An Innovative Solutions Consultant
Mustang needed a hands-on and face-to-face
approach to software implementatio...
Our Tasks
Strategic and Transactional Activities
RC
Training:
3,996

Phone Change:
6,821

Terminations:

Dept.
Change:
1,9...
Our Team:
HRIS Staff Providing Global Engagement

Learning
Mgmt

Red Carpet
Onboarding

33

Support
Electronic
File Room

...
Strategic Onboarding:
Why Red Carpet?
Integrations
& Mergers

Onboarding
Experience

Globalization

Culture &
Values

Dire...
Dedicated Administrator:
A Truly Unique Partnership
• The great partnership between Mustang and our reps with
Red Carpet e...
Where we are Today:
A Strategic System
Stage is set for
Great New
Hire
Experiences

7 Forms for
Every New
Hire

x

Staff M...
Current and Future Improvements

NOW: E-Mail
Blast Initiative

37

Extend &
Standardize the
Onboarding
Experience

FUTURE:...
An Important Strategic Lesson Learned:
Building Forms
• Integrations/Interfaces

1. Data feed to HR database is a
powerful...
Q&A
vv

39
Workforce 2020 – HR’s Y2K
October 17, 2013

© 2013 Appirio, Inc. - Confidential
Our Approach

CUSTOMERS

41

TEAM

© 2013 Appirio, Inc. - Confidential

FUN
Buckeye Partners, L.P.

42

© 2013 Appirio, Inc. - Confidential
What do you mean Workforce 2020?

43

© 2013 Appirio, Inc. - Confidential
Thank you…
To find out more about UPSTART news and upcoming
events, please visit our website www.upstart360.com

General I...
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Recruiting & Workforce Strategies in the Oilfield

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UpstartLIVE hosted an ​innovative ​Oil ​& ​Gas ​Breakfast ​Forum ​focused ​exclusively ​on ​workforce ​management, ​HR, ​and ​recruiting ​strategies ​& ​solutions ​from ​Oil ​& ​Gas ​industry ​experts. From ​Recruiting ​to ​Retention, ​Training ​& ​Development, ​to ​Knowledge ​Transfer ​and ​Workforce ​Management, ​the ​challenges ​and ​solutions ​are ​numerous ​and ​growing ​each ​day. The forum provided real ​insight ​on ​how ​these ​issues ​are ​being ​conquered ​in ​a ​real-world ​setting ​with ​sharing ​of ​actual ​results, ​savings, ​and ​efficiencies.

Speakers & Topics:

"Recruiting Challenges, Trends and Outlook from the Front Lines of the Global War for Oil & Gas Talent" - David Lee, Rigzone

"Creating HR & Workforce Management Harmony" - Tina Kutach, Wood Group Mustang

"The Path to Workforce 2020" - Georgia Karabatsos, Buckeye Partners

This ​Forum ​was ​presented ​by ​UPSTART ​360 ​– ​the ​leading ​media ​resource ​exclusively ​for ​the ​Oil ​& ​Gas ​Recruiting, ​HR ​& ​Workforce ​community. ​ ​Unbiased, ​highly ​focused, ​and ​vital ​news ​& ​information ​are ​provided ​to ​you ​by ​our ​team ​of ​editors ​each ​day ​in ​our ​newsletters, ​websites ​and ​live ​events.

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  • If pace continues, it will be 27,700 jobs added this year – that’s slightly down from last year’s 30K+ jobs
  • In August – it’s now more than 500,000 visitors per month to Rigzone – and that’s before the mobile apps launched.
  • These values drive all our decisions. People is at the center because we are People Oriented Project Driven First 72 hours (young employees)Red Carpet enables us to immerse new hires into our culture BEFORE day 1 and beyond
  • Quick story of Mustang. Maybe tell the fun size snicker bar story, early proposal for Metro included the slogan Mustang will satisify you and brought full size and fun size for the pregnant member of the client team and to show their needs and be on the same side of the negotiating table. The rest is history is our company candy.Today our business units with Oil Sands being our 6th and newest.
  • How many times each guy had to “write his name”Internal running joke about paper paperpaper and copies of copies of copiesNew Hire Orientation took half a day (45 minutes just for paper– waste of BILLABLE TIME)
  • Tell the story about field services and pipeline new hires/rehires 30 - 50 people in a walmart parking lot – we have to accommodate what the business dictates and needs
  • We are a company of “Exceptions to the rule” Project Driven = Support Groups like HR need to stay flexible, requested on site visit with RC project team to connect and form partnership.Team in conference for 3 days, mapped out all onboarding processes and a result of this was 23 forms totally 86 pieces of paper went to 7 electronic smart forms.
  • As part of our decisions to implement any new systems we started looking at the day to day transactions that were going thru my team.In excess of 86k transactions
  • My team consists of 13 that crosses the prior slide of 86k transacations as well as supports the HRIS systems and initiatives.
  • RC’s culture & values “fit” with Mustang’s culture & values, especially around the partner. A lot of systems out there offering the same projects, you need to find the right one for you and your teams.Enhance our on boarding experioendDirect connection to HRIS and Electronic file roomPrepared for Glboalization and Integrations & mergers ! Stop and take a second to talk through how RC helps you with merger/acquistions to mass onboarding.
  • Took 1st year to settle into new system and allow team to transition into their new role of paper pusher to watching dashboards and interfaces.Then partnered with a dedicated adminstrator to help support the remainder intiatives of Global roll out workflows etcetc
  • Data feed to HR database is a powerful toolInvest up front in identifying fields that will feedBuild forms based on the HR database fields up front
  • Recruiting & Workforce Strategies in the Oilfield

    1. 1. Welcome… An UPSTARTLIVE breakfast forum Sponsored by
    2. 2. Congratulations on your important and dynamic role. The market you serve may not always appreciate all that you do, but we are aware of the great effort that you make for the benefit of your company and your employees in the oil and gas industry. We hope you are pleased to have your own brand and resource. We look forward to serving you!
    3. 3. News & Upcoming Events: A 2-Day Conference right here in Houston, Texas. FEBRUARY 25-26, 2014 Hot of the digital press: UPSTARTNOW Issue No.10 | Thursday, Nov. 7, 2013
    4. 4. Thank you to our sponsors…
    5. 5. An UPSTARTLIVE breakfast forum Speakers David Lee Vice President Americas Rigzone Tina Kutach Global HRIS Manager Wood Group Mustang Georgia Karabatsos Manager HRIS Buckeye Partners
    6. 6. Recruiting Challenges, Trends & Outlook from the Front Lines of the Global War for Oil & Gas Talent
    7. 7. Who is this guy? David Lee VP, Americas Rigzone • ~1 mm professionals visit Rigzone monthly, up 30% year/year • ~1.1 mm resumes globally • ~12 mm page views monthly • News & Content, Recruiting, Data and Advertising solutions
    8. 8. Today’s Agenda  Oil and Gas Employment Situation  Changing Workforce  Retention and Recruitment
    9. 9. Strong Hiring in Oil & Gas Change in U.S. Oil and Gas Employment 70,000 50,000 30,000 10,000 -10,000 -30,000 2013 YTD 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 -50,000 Source: Bureau of Labor Statistics: combined categories of oil and gas extraction and support activities for oil and gas operations (seasonally adjusted).
    10. 10. Significant Industry Employment Growth U.S. Workforce Support Activities for Oil and Gas Operations 300,500 December 2004 Oil and Gas Extraction 196,300 December 2004 20,000 professionals Source: Bureau of Labor Statistics; seasonally adjusted July 2013 data and December 2004 data
    11. 11. Management Growth Outstrips Production U.S. Workforce Production & Non Supervisory Employees 94% July 2013 December 2004 July 2013 December 2004 89% Management 25,000 professionals Source: Bureau of Labor Statistics; seasonally adjusted July 2013 data and December 2004 data combined categories of support activities for oil and gas operations and oil and gas extraction.
    12. 12. Growth in Female Colleagues, but at a Slower Pace Women in the Workforce December 2004 48,500 July 2013 83,600 19% 17% 15,000 professionals Source: Bureau of Labor Statistics; combined categories support services for oil and gas operations and oil and gas extraction.
    13. 13. Unprecedented Recovery Change in Oil and Gas Workforce Employment Economic Recoveries Index 1991 Recovery 2001 Recovery 2009 Recovery 150 125 100 75 Source: Bureau of Labor Statistics: combined categories of oil and gas extraction and support activities for oil and gas operations (seasonally adjusted) as indexed at 100 from NBER recession end March 1991, November 2001 and June 2009 respectively. 49 MO 47 MO 45 MO 43 MO 41 MO 39 MO 37 MO 35 MO 33 MO 31 MO 29 MO 27 MO 25 MO 23 MO 21 MO 19 MO 17 MO 15 MO 13 MO 11 MO 9 MO 7 MO 5 MO 3 MO 1 MO 50
    14. 14. Competition for Industry Talent % of U.S.-based Oil and Gas Professionals Receiving at least One Call from a Recruiter (in 2H 2012) Production 49% Maritime 50% Trades 51% Health, safety and environment (HSE) 51% Specialty services 52% Drilling 53% Engineering - general 57% Fabrication 63% Engineering - maintenance 63% Geosciences 67% Management/support 69% Engineering - petroleum 71% Well Completion 72% Engineering - design and construction 86% Source: Rigzone 2013 Retention Survey
    15. 15. Today’s Agenda  Oil and Gas Employment Situation  Changing Workforce  Recruitment and Retention
    16. 16. Engineering Talent Gap Degreed U.S. Engineers By Age 30% 25% 20% 15% 10% 5% 0% 20-24 25-29 30-34 35-39 Source: Society of Petroleum Engineers, January 2010 40-44 45-49 50-54 55-59 60-64 65+
    17. 17. Changing Workforce Largest deficit concentrated in mid-career population Many companies cannot find experienced professionals in their home countries (60% unfilled positions) 70% of national oil companies (NOCs), 60% of major international oil companies (IOCs), and 45% of independent companies acknowledged project delays due to staffing difficulties Recruiting of graduates recovering, but still deficit in North America and Middle East/Africa for new grads Source: Schlumberger Business Consulting Releases 2011 Oil & Gas HR Benchmark Survey.
    18. 18. Changing Workforce = Wisdom Gap? 1,200 Bachelors Degrees Awarded Petroleum Engineering (U.S. Universities) • "The operational side needs attention, rather than just always focusing on these engineering /college graduate positions," said Eric Roth, a drilling consultant. 800 • "The oilfield keeps building rigs without the right personnel to put on them, which causes performance to go down," said Keith Strickland, a rig worker from Merryfield, Louisiana. 400 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0 SOURCE: U.S. Department of Education, National Center for Education Statistics, Higher Education General Information Survey (HEGIS); comments from Rigzone.com Great Crew Change Series http://tinyurl.com/7538wdu
    19. 19. Retaining Gen X & Navigating Gen Y Gen X oil workers are in danger of “burning out” Gen X employees are seeking better work/life balance and roles mentoring younger workers Gen Y is work oriented, constantly searching for development opportunities and ar 3 times more likely to change jobs in a year than those aged 45-54 Gen Y’s decline in tenure is not a lack of loyalty or work ethic, but rather a response to the changing tinmes Source: Schlumberger Business Consulting Releases 2011 Oil & Gas HR Benchmark Survey.
    20. 20. Today’s Agenda  Oil and Gas Employment Situation  Changing Workforce  Retention and Recruitment
    21. 21. Retention Strategies What would most persuade you to stay? Increased salary 46% More interesting or challenging assignments 13% Opportunity to work overseas 10% Promotion or new title 10% Higher or guaranteed retention bonus 5% Flexible work hours 3% High-level recognition 3% Employee stock options, restricted stock, etc. 2% Reimbursable education or training programs 2% Increased staff to help reduce workload 1% Source: Rigzone 2013 Retention Survey; US-based respondents only 7% selected other which is excluded from the chart.
    22. 22. Industry Trends Companies Promoting Faster Companies are Flexible (Parental leaves, flex plans, childcare options, parttime alternatives) Increasing Trend towards Supply Chain Management Principles in Recruitment HR Organizations Focusing on Speed and Agility in Recruitment Source: Schlumberger Business Consulting Releases 2011 Oil & Gas HR Benchmark Survey.
    23. 23. Aug-13 Jul-13 Jun-13 May-13 Apr-13 Mar-13 Feb-13 Jan-13 Dec-12 Nov-12 Oct-12 Sep-12 Recruiting Everywhere Mobile Visitors to Rigzone 25% 20% 15% 10% 5% 0%
    24. 24. Recruiting Everywhere Efficiently – Open Web Coming Note: Name and picture have been changed for public presentation purposes.
    25. 25. Q&A David Lee VP, Americas
    26. 26. vv 26
    27. 27. 27
    28. 28. Our Business: People Oriented…Project Driven Offshore Process Plants 1987: 3 Founders 2013: 4700 US + 3200 International Mustangers Industrial 28 Oil Sands Pipeline Automation & Control
    29. 29. Where We Started: A Transactional System 23 Forms for Every New Hire Poor New Hire Experience x Faxing to & from Offsite Locations 29 Staff “Pushing Papers”
    30. 30. Where we Needed Help Meeting Unique Business Needs Growth and Acquisitions Pipeline & Field Services Model 30
    31. 31. Our Need: An Innovative Solutions Consultant Mustang needed a hands-on and face-to-face approach to software implementation 31
    32. 32. Our Tasks Strategic and Transactional Activities RC Training: 3,996 Phone Change: 6,821 Terminations: Dept. Change: 1,900 Goodie Bags 2,399 2,044 Merit Increase: 3,595 Citadon Scans: 57,361 Conversions: 617 499 Birth Announcement: 67 32 Rehires: Anniversary Gifts: 4,738 Address Change: 3,071 New Hires: Employment Verification: Condolences: 1,900 499 126 Contact Change: 3,969 Domestic Assignments 97 Assignment Changes: 192
    33. 33. Our Team: HRIS Staff Providing Global Engagement Learning Mgmt Red Carpet Onboarding 33 Support Electronic File Room HRIS Talent Mgmt Expat Mgmt
    34. 34. Strategic Onboarding: Why Red Carpet? Integrations & Mergers Onboarding Experience Globalization Culture & Values Direct Feed to HRIS Electronic File Room 34 Faster Billability
    35. 35. Dedicated Administrator: A Truly Unique Partnership • The great partnership between Mustang and our reps with Red Carpet enables us to make additions/changes in our systems in the most efficient way possible • On site sessions • Very quick response time 35
    36. 36. Where we are Today: A Strategic System Stage is set for Great New Hire Experiences 7 Forms for Every New Hire x Staff Monitors Workflows & Provides Personal Support No more fax machine! 36 Global Onboarding
    37. 37. Current and Future Improvements NOW: E-Mail Blast Initiative 37 Extend & Standardize the Onboarding Experience FUTURE: Unique onboarding workflows in global offices
    38. 38. An Important Strategic Lesson Learned: Building Forms • Integrations/Interfaces 1. Data feed to HR database is a powerful tool 2. Invest up front in identifying fields that will feed 3. Build forms based on the HR database fields up front 38
    39. 39. Q&A vv 39
    40. 40. Workforce 2020 – HR’s Y2K October 17, 2013 © 2013 Appirio, Inc. - Confidential
    41. 41. Our Approach CUSTOMERS 41 TEAM © 2013 Appirio, Inc. - Confidential FUN
    42. 42. Buckeye Partners, L.P. 42 © 2013 Appirio, Inc. - Confidential
    43. 43. What do you mean Workforce 2020? 43 © 2013 Appirio, Inc. - Confidential
    44. 44. Thank you… To find out more about UPSTART news and upcoming events, please visit our website www.upstart360.com General Inquiries: info@upstart360.com Partnership Opportunities: Joe Warring, joew@stonefortgroup.com
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