2016 petrotech conferencepetrotech.in/uploadfiles/speakerprofiles/1. aon_joshua rossppt.pdf · 2016...
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2016 Petrotech ConferenceNovember 2016
Prepared by Aon HewittTalent, Rewards & Performance
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 1
Global Oil & Gas Industry Trends
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 2
The Value Proposition to Power Tomorrow’s Growth
Four Bulls of Energy
• Accessible
• Stable
• Affordable
• Sustainable
Build an inclusive
employee value
proposition that
emboldens your
employees to action
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 3
Abundance of Global Change Requires the Right Talent to Navigate
DemographicCommodity
Prices
Regulatory Legislative
Capital Markets
Operating Costs
Economic Growth
How will this impact
my business
strategy?
How will this impact
my talent strategy?
Do I have the
right talent?
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 4
Oil & Gas Organizations are Making Adjustments to Be More Nimble
Lower, Volatile Commodity
Prices
Long-Range Business Planning
Capital Investments
People Investments
Efficiency
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 5
Adjustments to People Strategy Investments Has Varied
Feeling the Impact Hit Harder Treading Water
People Investments Focused On:
Redundancies / Limited Hiring
Hone annual incremental spend
Bonus pools redistributed
Facility consolidations
Optimize Spend on Retirement /
Benefit Programs
Optimize Communications and
Talent Programs
Reduce Corporate Allocation
Reduce Field Operations
Hone Annual Incremental Spend
Preservation of Key Talent
Reduce Bonus Pools
Assess Use of Equity Grants
Optimize Spend on All Rewards
Programs
Severance Review
Equity Availability
Leadership Preservation
Payroll Costs
Elimination of Benefits
Pay Freeze/ Reductions
Bonus Pools Eliminated
Significant Layoffs
Balance Sheet and Access to CapitalStrong Weak
Asset PortfolioDiversified Limited
Proprietary TechnologyDiversified Limited
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 6
Focus on Talent and Efficiency at Center of HR Organizations Adjustments
2 out of 5 oil and gas organizations
Reorganized corporate resources to better serve internal customers
1 out of 3 oil and gas organizations
Altered talent acquisition processes to reduce costs and streamline
1 out of 4 oil and gas organizations
Altered talent management processes to more accurately identify high performers and invested in leadership training to build vs. buy leaders internally
1 out of 5 oil and gas organizations
Increased investment in technology to increase efficiency
January 2016: Aon Hewitt Compensation Planning Update for the Oil & Gas Industry
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 7
Changes in Expected Staffing Is Expected to Stabilize
A. How do you expect to staff in 2017?
Plan to keep current staffing levels 45%
Began or plan to add headcount 31%
Plans for additional cuts 14%
Unsure 10%
October 2016: Grant Thornton Positioning for Recovery
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 8
However, do not expect activity to ramp up dramatically upon uptick ….
A. How would your organization react to a market recovery?
Ready to move quickly when market recovers 17%
Likely maintain current level of activity 52%
Deploy additional rigs 15%
Add drilled but uncompleted wells 1%
October 2016: Grant Thornton Positioning for Recovery
Aon Hewitt | Talent, Rewards & Performance
Proprietary & Confidential 9
Looking Ahead
Craft your story – develop a story that will empower the talent you need to achieve results
Know your talent – Identify, communicate, and reward
Be nimble – challenge resource allocation and ability to drive business outcomes
Refine and remove – Be opportunistic about obsolete or inefficient programs