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PREP - Workforce Related Project Risks


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Find out how people-related issues are having a major impact on project schedules and cost overruns in a ground-breaking report, brought to you by Air Energi and Queensland University of Technology.

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PREP - Workforce Related Project Risks

  1. 1. 1 Authors: Karen Becker & Michelle Smidt | Date: 31 January 2014 Workforce Related Project Risks Findings Report
  2. 2. Contents Introduction 1 Background 2 A Growing Industry 2 Why People are Critical to the Industry and Projects 4 Skills Shortages 4 An Ageing Workforce 6 Why the Research was Undertaken 7 How the Research was Undertaken 7 Overview of the Report 7 Project Appeal 8 Recruitment 9 Induction and Onboarding 10 Retention 11 Reassignment and Demobilisation 12 Compliance 13 Workforce Risk Management 14 Conclusion and Recommendations 16
  3. 3. 1 Introduction Air Energi is proud to have partnered with Queensland University of Technology to research potential workforce risks as they relate to Oil and Gas projects particularly involving a contract workforce. This report presents the key findings of the research which has enabled the development of a framework to comprehensively assess the workforce related risks involved in specific industry projects. With the exception of Workforce Health and Safety, risk management frameworks and processes have yet to be consistently and systematically applied to the area of people related or workforce risks. This may be due to the difficulty in calculating and estimating such risks and their potential financial impact on overall business results. However, workforce related risks will greatly influence the extent to which projects can be completed on time and within budget. The ageing of the workforce is one current challenge which could have a major impact on whether projects come undone. As such, the retention of critical knowledge especially on Oil and Gas projects is a primarily challenge which, to be effectively addressed, requires a combination of both retention and attraction strategies. Although this report has an Australian focus, with contributors ranging from operational managers, HR managers, project managers, advisory personnel, and contractors, the experts consulted have extensive global experience dealing with contract workers and projects in the Oil and Gas industry. Therefore, the findings in this report will be equally applicable to other regions undertaking Oil and Gas projects. Furthermore, although the focus of the research was risks relating to projects with a contract workforce, a number of the results are likely to be equally relevant to permanent personnel. Air Energi and QUT thank all the participants who took the time to share their knowledge and contribute to this research. We are pleased to present the findings in this report to our industry partners globally to utilise in their future decision making and planning. Matthew Smith – Air Energi Dr Karen Becker - QUT Authors: Karen Becker & Michelle Smidt Date: February 2014
  4. 4. 2 Background A Growing Industry According to the International Energy Agency (IEA)1 the demand for Oil and Gas is predicted to increase steadily in the coming years. This is illustrated in the graph below from the IEA.2 As shown in the graph, based on the New Policies Scenario3 , both Oil and Gas consumption is predicted to increase through to 2035. If this prediction comes to fruition, the number of Oil and Gas projects can be expected to increase in order to meet consumption particularly as older facilities require replacing. The extent to which operators will be able to deliver this supply will depend largely on the manpower and skills available to execute the necessary Oil and Gas projects. The data from the Australian Workforce and Productivity Agency (AWPA)4 demonstrates the surge currently occurring in resource project construction before progressing through the lifecycle to oil and gas operations in Australia. With an increase in the number of projects globally whether it is deep water offshore or onshore shale plays, the demand for skilled workers is expected to follow a similar trend in project locations. 1 International Energy Agency, 2013, Medium-Term Gas Market Report 2013 -- Market Trends and Projections to 2018, OECD/IEA 2 International Energy Agency, 2013, Key World Energy Statistics 3 New Policies Scenario: A scenario in the World Energy Outlook that takes account of broad policy commitments and plans that have been announced by countries, including national pledges to reduce greenhouse-gas emissions and plans to phase out fossil-energy subsidies, even if the measures to implement these commitments have yet to be identified or announced. This broadly serves as the IEA baseline scenario. 4 Deloitte Access Economics, 2013, Modelling employment demand and supply in the Resources Sector, report commissioned by the Australian Workforce and Productivity Agency, Total Primary Energy Consumption (TPES) by Fuel Source: IEA, 2013, Key World Energy Statistics, 20132 1990 2011 NPS 450S NPS 450S NPS 450S NPS 450S 2020 2025 2030 2035 16000 14000 12000 10000 8000 6000 4000 2000 0 18000 NPS: New Policies Scenario (based on policies under consideration) 450S: 450 Scenario*** (based on policies needed to limit global average temperature increase to 2°C) Coal/Peat Oil* Natural Gas Nuclear Hydro Other**
  5. 5. 3 As shown in the graph, Oil and Gas operations are predicted to experience the highest levels of growth in the three areas of the Resources sector in Australia which reflects the lifecycle progression of the current LNG boom through till 2018. Although some skills may be transferred from other sectors as their labour demand slows, it is uncertain whether this will be enough to meet the future labour needs of Oil and Gas operations. Although the graph above shows Australian data, it is expected that the global skill and labour requirements for Oil and Gas projects internationally will also increase and place substantial demands on an already tight labour market. These figures suggest that the global situation and future of the Oil and Gas industry in relation to attracting and retaining a skilled workforce is a key imperative. 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 450,000 2013 85,819 236,690 38,943 361,452 2014 118,825 238,537 44,087 401,449 2015 107,710 243,525 49,908 401,143 2016 70,903 249,111 55,349 375,363 2017 49,325 252,456 58,666 360,448 2018 28,857 254,260 61,212 344,328 Projected Employment Level by Resources Industry Sector, Base Case, 2013–18 Source: DAE, 2013, Modelling employment demand and supply in the Resources Sector5 5 Deloitte Access Economics, 2013, Modelling employment demand and supply in the Resources Sector, report commissioned by the Australian Workforce and Productivity Agency, EmploymentLevel Mining OperationsResources Project Construction TotalOil & Gas Operations
  6. 6. 4 Occupation 2014 2015 2016 2017 2018 1331 Construction Managers -19 -20 -20 -15 -14 1332 Engineering Managers -61 -69 -67 -49 -44 1335 Production Managers -127 -146 -142 -104 -93 2322 Cartographers and Surveyors -18 -21 -20 -13 -11 2332 Civil Engineering Professionals -48 -58 -55 -33 -24 2333 Electrical Engineers -22 -27 -26 -14 -9 2513 Occupational and Environmental Health Professionals -45 -54 -52 -31 -24 Subtotal -371 -433 -418 -279 -233 6 Australian Mining, Mar. 2013, and Queensland Government, Nov. 2013, 7 The Australian Workforce and Productivity Agency, Dec. 2013, Resources sector skills needs 2013 Source: AWPA, Dec. 2013, Resources sector skills needs 2013 7 Why People are Critical to the Industry and Projects Despite the growing demand, the future of growth for the industry remains uncertain. Past projects have encountered their share of challenges; cost overruns, workforce issues, and fierce competition for resources have triggered numerous project delays and even cancellations. From the research, the underlying causes of many of the issues encountered in the course of Oil and Gas projects seem to be workforce related. The industry’s relatively atypical project-based structure draws on a largely contract workforce that creates unique challenges; the solutions to which cannot be directly transferred from other industries. There are concerns that not being able to get the right people at the right time for the right cost could inevitably threaten the overall delivery of projects on time and within budget. Ultimately, this could prevent the industry from living up to high expectations and predictions of growth. There are a number of critical workforce issues facing the industry at present. Two key challenges include a key skills shortage and an ageing workforce; both of which present significant risk to the industry. Skill Shortages An acute skills shortage means a lack of domestic talent6 forcing companies to consider international avenues for recruitment. However this is not always a viable solution, with employers struggling to find the right people, even overseas, and mobilise them quickly and compliantly to meet needs. In a project-based environment this inability to secure appropriate workers to meet needs can have major impacts on schedules and subsequently drive up costs. The extent of skills shortages is illustrated in the table below from AWPA, which shows that shortages are expected for the majority of professional and managerial roles in Australia alone, with the greatest shortage forecasted to occur in 2015 and 2016.7 Projected supply–demand balance for selected Resources Sector occupations, Oil and Gas Operations, 2014–18
  7. 7. 5 8 ABS, Sep. 2013, Reported occupation shortages by industry, ~Skills?OpenDocument. In this report to standard ABS category Mining have been labelled “Resources”. 9 Air Energi, 2013, LNG Talent Pool data, Levels of Experience Additionally, the graph below illustrates the occupation shortages for different industries. As shown, the main shortages experienced in the Resources sector are in the areas of transport & logistics, operations, trades and engineering. Needless to say these roles are critical to the Oil and Gas industry and the ability to successfully execute projects. The need to address skills shortages is further supported by data provided by Air Energi (see graph right) which shows that the majority (over 50%) of the global contract workforce hold 31 years of experience or more whereas only 3% have 0-10 years of experience in their field.9 This indicates a difficulty finding new candidates with the necessary skills and experience, however this graph also hints at another issue facing the industry; the ageing of this workforce. Source: ABS, Reported occupation shortages by industry, Sep. 2013.8 Manufacturing 16% 14% 12% 10% 8% 6% 4% 2% 0% 18% Construction Resources Manufacturing Scientific & Research IT Professionals IT Support Technicians Trades Transport, Plant & Machinery Operation Marketing Project Management Business Management Financial Expert (31+) Principal (21-30) Senior (11-20) Junior (0-10) 3% 19% 27% 51% Source: Air Energi 2013.9
  8. 8. 6 10 ABS, Nov. 2013, An Ageing Australia: Preparing for the Future - Commission research paper (Word/ZIP - 2662 Kb) 11 Australian Government, Aug. 2012, It should be noted that the statistics for the LNG industry in the graph below were added to the ABS statistics. This data was provided by Air Energi and includes a total of 989 workers in the LNG workforce globally as of 2013. As such it provides a good representation of the trend for the LNG industry however the sample size is not as extensive as the ones for the Resources industry and all other industries provided by the ABS. An Ageing Workforce Although many industries have been aware of the ageing of the workforce for some time, it still remains one of the key obstacles to obtaining and retaining the skills required for projects. According to the Australian Bureau of Statistics (ABS) “the population aged 75 or more years is expected to rise by 4 million from 2012 to 2060, increasing from about 6.4 to 14.4 per cent of the population”.10 This will not only decrease the talent pool from which companies can hire but also increase the number of people retiring; often taking critical skills, knowledge and experience with them. The graph below illustrates the age distribution of the contract LNG industry and the Resources sector compared to other industries11 , and clearly shows that the LNG industry workforce alone does have an overwhelming percentage of workers aged 45 and above when compared to the rest of the Resources sector and all other industries. This confirms the concern that the required skills and experience may be lost once the current workforce retires. In addressing this, the challenges relate to retaining the vital skills and extensive expertise of the mature workforce and sharing their knowledge with the younger workforce. Source: Australian Government, Aug. 2012, and international data from Air Energi.10 15-19 35 30 25 20 15 10 5 0 Mining All Industries Oil & Gas (Air Energi data) 20-24 25-34 35-44 45-54 55-64 65+
  9. 9. 7 Why the Research was Undertaken The skills shortage combined with the ageing of the workforce present serious concerns for companies when initiating, executing, and completing Oil and Gas projects. Because of the significance and potential impact of the workforce issues, Air Energi Group partnered with Queensland University of Technology (QUT) to develop a comprehensive method of identifying and reducing workforce risks as they relate to Oil and Gas projects involving a contract workforce. The research involved identifying different risks connected with a contract workforce during the exploration, execution and demobilisation phases of a major project. These risks are broadly categorised into six core areas: project appeal, recruitment, onboarding and induction, retention, demobilisation, and compliance. How the Research was Undertaken The research undertaken consisted of interviews with a panel of industry experts and was granted ethics approval by the QUT Human Ethics Committee (QUT approval number: 1300000676) in line with standard ethical guidelines and the National Statement on Ethical Conduct in Human Research (Australian Government, 2007). The interviews were designed to collect data from a cross-section of experts ranging from operational managers, HR managers, advisory personnel, and contractors with extensive global experience in dealing with contractors on Oil and Gas projects. In-depth semi-structured interviews were used to determine the critical workforce related risks in projects involving a contract workforce. All interviews were transcribed verbatim and then analysed using QSR NVivo® 10 software to identify and explore the key themes emerging from the data. This allowed for a thorough analysis of the main workforce related risks. The results are outlined in the following report. Overview of the Report The purpose of this report is to document the key findings of the research undertaken to identify the critical challenges and risks on projects that employ contract workers. Each section of this report highlights a core area of risk identified in the research, which is then broken down further to specific key issues. The risks relating to each area are then identified. It should be noted that for all the areas, the major overarching risk is being unable to deliver the project on time and within budget.
  10. 10. 8 Project Appeal Attracting the right talent (skills, experience and temperament) at the right time is important to any organisation. However the issue of attracting and securing that talent becomes even more critical when managing projects. Because projects operate to achieve a particular goal on a planned timeline, being able to attract the right skills at the right time is crucial if the project is to be delivered on time and within budget. The attraction of candidates will depend on the attractiveness of the project itself. This includes factors such as duration of project, remuneration and benefits, location, employer brand of operating company, roster, and the phase of the project. Summarised below are the key factors to consider when attracting talent. Key Issue What It Means Location The appeal of the project location will depend on whether the location is considered safe, if taxation arrangements are favourable, and whether there is a high number of competing projects in the same location. Company image Having a positive company brand and being known as an attractive employer. Incentives The ability to offer long contracts, appealing rosters, substantial benefits, competitive rates, and an exciting phase in the project life cycle. Work environment Having an appealing mix of contractors and staff on the project, offering a positive work environment as well as unique and stimulating opportunities and tasks. Key Risks Failing to consider the project appeal issues identified presents the following key risks: • Failure or difficulty attracting the needed skills, experience and temperaments • Inability to get the best people available • Lack of required skills to meet project requirements • Project delays • Greater number of errors and reduced quality of outputs I guess the challenge is us, as a company, having the right level of opportunities that will attract that person’s interests. “ ” The challenges are the timing element… getting the best people available at that time that are interested in working at that location; and that can be easy or remarkably hard, depending on market conditions. “ ”
  11. 11. 9 Key Risks Failing to address the recruitment issues identified presents the following key risks: • Failure to acquire needed skills and experience for critical/general roles • Higher likelihood of not being able to attract and secure talent • Increased chance of losing candidates prior to project commencement • Hiring candidates with questionable credentials and lack of experience Recruitment The ability to access and secure the required talent in a timely and systemised fashion is another critical factor in ensuring successful project completion. Being effective will depend on the level of formalised systems and procedures and clarity of responsibilities to ensure that the right people are hired for the project. Below are the key recruitment issues. Quite often, the people who come in are not given the correct image of what we are actually asking. “ ”Key Issue What It Means Clarity of needs The degree to which there is clarity of the technical and soft skills needed for the project and individual roles. Necessary processes and procedures Whether necessary processes and procedures are in place to attract candidates in a smooth and errorfree way. Skills shortage Whether skills are available to meet demand. The need to compete with other projects hiring from the same limited pool of talent can mean a shortage of critical skills. Filling critical roles The ability to identify and fill key roles with the right skills and attitudes in a timely manner. Quality of local talent The degree to which local talent with required level of skills exists and is available. Time to fill The time it takes from when talent is identified to when the role is filled. References checks The extent to which reference checking is a formal and thorough process. Managing expectations The ability to set and manage expectations of contractors to avoid misunderstanding, conflict and disruptions. Internal client policies/ requirements The level of compliance required from prescribed internal policies and guidelines regardless of location or project. Expanding the talent pool Avoiding reliance on a limited number of people to allow for the introduction of new talent. Securing acceptance Securing acceptance of role/offer and getting candidates signed on in a timely manner. National culture awareness Awareness of national culture and the potential impact on working relationships is required at all levels as projects operate in various locations and often employ multiple nationalities, ethnicities and religions. Lead-in time has been much longer than I would have envisaged. “ ”
  12. 12. 10 Induction & Onboarding The induction and onboarding process to make new employees productive has long been a common feature of hiring permanent staff. The induction process can include everything from general orientation and introductions to transmission of the company culture and “the way we do things”. However, the induction and onboarding of contractors often does not receive the same attention and dedication as that of permanent staff. This is perhaps not surprising as the induction and onboarding of temporary staff comes with unique challenges, especially with project-based work. Summarised below are some of the key issues in relation to induction and onboarding as identified by the expert panel through this research. The first challenge with on-boarding is that it’s not there. “ ” Key Issue What It Means Use of formal induction process Whether formal and standard induction processes are in place to help contractors settle in to a new country/location and/or become familiar with organisational policies and procedures. Organisational cultural alignment Achieving cultural alignment between the company values and the values and behaviours of the contractor. Introducing softer skills and attitudes expected to be portrayed in the role, and in the organisation. Time requirement Recognising the amount of time required to take the contractors through induction before they become productive. Upskilling/training Allowing time for upskilling or training for contractors without the necessary experience or knowledge, or for contractors who have been promoted to a higher level position. Industry experience Addressing any cynicism of experienced contractors when conveying the company values and culture. Key Risks Failing to address the induction and onboarding issues identified presents the following key risks: • A higher likelihood of health and safety or general organisational policy breaches due to lack of awareness and understanding • Lack of fit with company culture and expectations • Damage to company image and reputation • Lack of required skills to meet project requirements Certainly with contract workers, there’s a lot about motivation, having to understand what the project is about, what the company is about, and making them support that and become aligned with that. That’s important; that’s quite a big challenge. “ ”
  13. 13. 11 Key Risks Failing to address the retention issues identified presents the following key risks: • Higher risk of losing talent to competitors’ projects before the end of their contract • Losing critical project knowledge • Higher degree of dissatisfaction and disengagement • Higher turnover rate • Delays to project deadlines • Reduced quality of outputs and damage to company brand Retention Once contractors have been selected and hired, being able to retain them becomes the next challenge. Being able to retain employees is important for many reasons such as justifying training expenses, preserving knowledge, and building expertise. As such, the retention of talent was identified as another important factor for project success. This becomes somewhat more difficult to attain on projects with contract workers. There are multiple challenges that can affect the ability to retain talent. These have been listed below. You are always at risk that that person could leave, if someone came headhunting and had a better offer tomorrow. “ ”Key Issue What It Means Loyalty Achieving loyalty and commitment from contractors to company and project goals. Management support and style Recognising the impact of management style and support for retaining contractors. Career development opportunities Whether attractive roles, opportunities and training are offered as a way to retain contractors. Poaching Competitors targeting contractors with offers of higher wages, bigger projects, or better conditions. Knowledge management/ retention Retaining critical knowledge when people leave during projects. Alignment with company culture Achieving coherence and fit between individual and organisational culture and values. Equity Avoiding inconsistency in remuneration and benefits for people in the same or similar roles. Staff vs contractor benefits Managing the difference between the benefits offered to staff versus contractors. Personal circumstances Allowing for the fact that contractors may leave for personal reasons, e.g. illness, family commitments, desire to travel. Taxation Considering local taxation level and requirements in comparisons to other locations. It’s always a risk that as different people leave, you are going to have that corporate knowledge go out the door… “ ”
  14. 14. 12 Key Risks Failing to address the reassignment and demobilisation issues identified presents the following key risks: • A higher likelihood of losing critical knowledge before project completion • Leaking of sensitive project information to competitors • Damage to company image and reputation • Higher risk of sabotage to equipment and information • Loss of critical knowledge and talent required for future projects Reassignment & Demobilisation Each stage of a project presents its own unique challenges. The stage that received the most attention and poses the most challenges is the demobilisation stage. This may be attributed to the fact that it presents the highest risk in terms of resources and time invested. However, it also seemed to be the most fragile stage due to reliance on contract workers to effectively complete the project. The greatest risk to a project is losing people in the final throes. “ ”Key Issue What It Means Project completion Retaining people with the skills and knowledge and ensuring their engagement and commitment until the end of the project. Continuity Being able to keep contractors between projects who possess the skills and experience needed for future projects. Client/labour hire agency relationship The nature of the relationship between the organisation and labour hire agency. Ensuring the labour hire agency understands client requirements. Identifying skills and capabilities for future use Ability to identify skills and capabilities of contractors to be able to place them in future roles and projects. Succession planning The extent to which succession planning procedures include contractors. Reputation control Limiting and preventing damage to company reputation as a result of discontent contractors. Confidentiality Attaining confidentiality of sensitive information when contractors leave projects. Sabotage Preventing and managing sabotage by dissatisfied contractors. I think that’s always going to be a high-risk period of time (the end)… making sure that when you are downsizing, which has to occur, that you are able to keep the right people with the right mix of skills to close down all the documentation and do whatever needs to be done. “ ”
  15. 15. 13 Compliance In any workplace there are always legal and organisational requirements that create a need for compliance. This is no different on projects, however the makeup of projects often create more layers and factors to consider especially when using contractors. Such factors include complying with the legal requirements of the location and country but also internal organisational policies. For a project to be successful in all aspects it needs to be run and managed correctly to ensure legal compliance. To do so requires attention to a range of issues outlined below. Key Issue What It Means Clarity of responsibilities Clarifying the distribution of responsibilities between the organisation and the labour hire agency. Country requirements Ensuring compliance with legal requirements of the country/location such as Visa and work permits, local hire policies, insurances, tax, superannuation, leave etc. Organisational policies Enforcing organisational policies such as anti-bribery, corruption, fitness of work, health and safety, internal hiring policies and performance management. Contracts of employments Ensuring that contracts are correct and in place for contractors before they commence work. Insurance Clarifying insurance cover for contractors: organisation or labour hire agency responsibility. Key Risks Failing to address the compliance issues identified presents the following key risks: • A higher likelihood of non-compliance with legal requirements • Greater risk of general organisational policy breaches • Risk of legal actions • Risk of being denied future access to location and country • Loss of future business • Damage to company brand and image • Not meeting project deadlines That’s another area where we have to ensure that we are compliant, predominantly with our own policies; although some locations and some work sites will have particular policies that we will need to comply with as well. “ ” Complying with immigration and right to work requirements is probably number one. Second to that, we often have a lot of challenges around our fitness for work issues and that could be things from alcohol- related policies through to actual physical fitness, to be working on site. “ ”
  16. 16. 14 Workforce Risk Management The findings of this research have enabled the development of a comprehensive tool to identify and analyse the potential workforce related risks for Oil and Gas projects particularly involving a contract workforce. This tool can be used at any stage of a project from the planning phase through to completion. It can also be used several times for the same project in order to benchmark current and previous results and evaluate risk management efforts. By means of a multi-entry online survey (consisting of over 90 questions) an overall Workforce Risk profile can be developed for a particular project. Through the survey, different people with insight into a particular project can provide their assessment and rating of the various workforce-related risks. Individuals likely to complete the survey include: HR managers, project managers, team supervisors, quality managers, construction managers, operations managers, engineers and other individuals with critical/unique project knowledge. The combined responses from several individuals allow for a more accurate and balanced identification of the current and potential workforce-related risks. The overall Workforce Risk profile for a project is based on the ratings provided for each of the key workforce related risk areas: Project Appeal, Recruitment, Induction & Onboarding, Retention, Mobilisation and Compliance. Below is a sample of the questions used to identify the workforce related risks on a project. Refer to page 14 for an illustration of results.
  17. 17. 15 Induction & Onboarding Using weighted responses, workforce related risks are rated on two scales; risk and uncertainty. • The risk ranking of a project is based on the actual ratings provided by the respondents completing the survey. • The uncertainty ranking is determined by calculating the variations in the responses received by the various individuals who completed the survey. By including the uncertainty element, any significant differences in risk ratings can be highlighted and steps can then be taken to clarify and address these. Using these two rankings combined allows for each risk area to be plotted onto a graph creating the risk profile. In the example shown below, the combined risk level for each of these areas results in the overall rating of low for the key risk area of Project Appeal. Risk areas positioned anywhere in the lower left quadrant would be considered low risk. Risk areas positioned in the lower right quadrant are areas which have consistently been rated as high risk. Any areas falling into this quadrant require organisational attention and development of appropriate strategies to mitigate these risks. In addition, any risk areas positioned in the two upper quadrants would indicate a level of disagreement in the perceptions of the workforce risks facing the project. This would highlight a need for further analysis to determine the actual risks and as well as strategies to address these. For further information about the research or the tool, please contact Air Energi. Project Appeal Recruitment UncertaintyRanking Risk Ranking High Uncertainty Low Risk High Uncertainty High Risk High Risk Low Uncertainty Low Risk Low Uncertainty Project Appeal Location Company Image Incentives Work Environment 1.5 1.5 1.3 1.6 3.8 1.7 3.8 1.7 2.2 1.6 RiskRating SurveyUncertaintyRanking RiskRating SurveyUncertaintyRanking Retention Demobilisation Compliance
  18. 18. 16 Conclusions and Recommendations Risk management is by no means a new field; however existing risk management frameworks and processes have yet to be consistently and systematically applied to the area of people related or workforce risks. As such, the aim of this research was to initiate the development of a framework to comprehensively assess the workforce related risks involved globally in Oil and Gas projects involving a contract workforce. However, many of the outcomes of this research would be equally applicable to permanent personnel. The results indicated that the major risks exist within the following six core areas: • Project Appeal • Recruitment • Onboarding and Induction • Retention • Reassignment & Demobilisation • Compliance Addressing each of these will entail examining the elements which make up each individual risk area to effectively minimise this risk. However the first step in this process is to identity the current level of risk posed by each of the major areas. This is essentially what the tool will enable organisations to do, taking into account the assessment of several people working on the same project to get the most balanced overview of the current and future risks. Through the identification of workforce risks, decisions can then be made as to whether to Treat, Tolerate, Transfer or Terminate these, similar to the management of other types of project risks. We hope the findings of our research and this report will assist organisations to successfully identify and address risks as they relate to the use of contract workers on projects.
  19. 19. 17 With more than 30 years’ experience, Air Energi is the trusted people services partner of choice for clients, consultants and candidates engaged in the global oil and gas industry. It provides contract, project and permanent hire personnel and expertise to oil and gas projects and clients worldwide. Headquartered in Manchester, UK, Air Energi has offices in 35 locations and serves more than 50 markets worldwide. It has regional hubs in Doha, Qatar; Houston, US; Brisbane, Australia; and Singapore. For more information, please go to: Air Consulting Australia Pty Ltd Level 8, Riverquarter Building, 46 Edward Street, Brisbane, QLD, 4000 Australia Phone: +61 7 3056 0900
  20. 20. 18 Trusted Expertise to the Oil & Gas Industry