PowerPoint Presentation

ACADEMY18/5/2013

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Team..

Santhosh PrasadIndianElectrical EngineerClaire Torelli FrenchFinanceEruchalu IjeNigerianEconomics

Sean Peter HuberAustrianIndustrial Design

Emre YararbasTurkishChinese BusinessManikandan SivasankarIndianConsultant & Entrepreneur2

Agenda12343

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Company background4

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18000 employees operating in 27 countries for the past 32 yearsLeading player in the oil & gas service industryAnnual revenue of $6.32 bn with a projected growth rate of 16.80 %Two divisions:ECOM-75 % of petrofacs revenueIESAim to be the worlds most admired oilfield service companyCurrent strategy:1.Geographical expansion 2.Offshore expansion 3.IES implementation

Company sets to increase its employee base to 21,000 by 2015 to cater the future opportunities in the brownfield and greenfield sector.

Petrofac5Source: http://finance.yahoo.com/q?s=PFC.L

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Source:http://www.petrofac.com/index.asp?pageid=118

Oil and gas equipment & services industry has a market capital of $3895 Bn providing a net profit margin of 7.50 % with projected growth rate of 15.84 %.Oil and Gas Industry Analysis6Source: http://www.ibisworld.com/industry/global/global-oil-gas-exploration-production.htmlSource: http://www.world-petroleum.org/docs/docs/speeches/wpc%20Presentation%20the%20Aging%20Workforce%202.swf

8/5/2013It contributes to producing 60 % of worlds energy.Job opportunity in the oil and gas industry is expected to grow at the rate of 17 % by 2020.Average age in E & P is 50 years40 -60 % of the aging employees will retire within next 5 -10 years30-40 % of the employees are in the average age of 30 years

Major players :

With a growth rate of 15.84%, the industry is expected to experience a boom in its recruitment of required skills.

Industry Analysis7

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8 Source: http://www.fitchlearning.com/ae/industry-resources/white-papers/graduate-challengesSource: http://www.trainingindustry.com/professional-education/articles/rescuing-and-redefining-diversity-as-a-recruitment-and-training-goal.aspx

8/5/2013HR IndustryGlobal recruitment market industry is expected to be worth $369 Billion by 2014 with an average annual growth of 5.4 %

RecruitmentThe global market for training services is expected to be worth of $292 Billion by 2013 with an average annual growth rate of 2 %Training involved classroom lectures, Practice exams, Practical training51% of companies deliver at least one training session via eLearning to over 50% of their employees, compared to 39%

Training66.5 % of people prefer the blended learning method

Gen Y learning Preferences

On average O& G services industry has a retention rate of 95-96 % as of 2012Based on a survey it was found that Work environment and individual growth accounts to 60 % of turnover.But still the attrition rate is very minimum compared to other industries due to the compensations51 % of the employees tend to leave the organization citing increased compensation31 % to pursue greater advanced opportunitiesRetaining9Source: Survey Monkey(http://www.surveymonkey.com/s/8SY583C)

8/5/2013Graduates PerceptionEmployees reason for leaving

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Current strategy of Petrofac HR department Situational AnalysisOpportunitiesWe recommend the Renaissance Program ,to make use of the existing weaknesses as an opportunity to gain a sustainable competitive advantage in the current market

Renaissance Program:Leverage on the social media to increase the brand awareness Having a structured academy & a blended training program (Formal & informal,Gamification simulation, mentorship)Focusing on the employer satisfaction in depth (work environment,timings,mentorship)

Weaknesses are our opportunitiesCan Petrofac have the best training academy to be the thought leader in the industry?Yes, Petrofac can be the thought leader in the industry by having the best training academy program..!!

..selected candidates were asked to write a purely technical exam, which secured hiring technical talent....within the first few days the programme felt like any other university course, the readings and text book material could have been more interactive....Mentors are a great way to see ones self through the eyes of others....It is our opinion that the graduate program could be structured more around achieving status..Name: Omar AkerGraduate Program Period:2010-2012Location: SharjahDepartment : Process engineeringMode of interview : Group interviewNo of participants:7Location : Starbucks, MOEDate of interview : 28th July 2013

Trends118/5/2013

Common Trends in Recruitment & trainingThe following have been found as the trends followed in the recruitment and training industryRecruitment:Internal Recruiting (e.g. Promotion)Employee referralsOutsourcingUniversity RecruitingEmploying specialized recruitersOnline job portalsSocial media (twisumes, Video resumes)

Training:Classroom lecturesTheoretical trainingTraining institutesE-learningPLE(Personal Learning Environment)

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These H.I.Ts can be leveraged upon by Petrofac as 37 % of the companies use social networks to research the potential job candidates.

Deloitte was awarded the best user of social platform for recruitment in 2012.49% of companies have benefitted by applying the talent pool techniqueHigh Impacting Trends (H.I.Ts): Leveraging on the Social Media for Recruitment138/5/2013Consumerization of technology and usage of market techniques in the recruitment process increases the efficiency of the firms recruitment by 35 %40 % of the total smartphone users in the age group of 20-35 years.Usage of ipad for learning purpose has witnessed a Y-o-Y growth of 37 %

Recommendations

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Academy Structure Proposal

ManagementConsultants (retired professionals, University professors, Industry experts)Trainers (Senior & Assistant)GraduatesStrategic decision MakingSyllabus formationSeminarsConferenceTraining executionMentoring

On-Job-trainingE-LearningSimulations

8/5/201315Renaissance Structure will assist Petrofacs academy to perform efficiently and with economies of scaleReason:To have a centralized decision making system for efficiencyTo have a formal planning of budget for economies of scale

Recommendation:Management at the top level of the structure Leverage on the expertise of the retired professionals, university professors, Industry experts,Mid-level managers in forming the syllabusLeveraging on the skills of Petrofac training services to train the graduates

Implication:Increase in efficiency to centralized decision makingThought leader in the industry

* source: http://www.mindtools.com/pages/article/newSTR_54.htm

* Current Brand Awareness 25 %Providing options to the Graduates to Master the core competencies fasterDirect Stakeholder:Students,universities,Employees & Business Division, GovernmentIndirect Stakeholders:Competitors,Recruitment & training agencies, Government

8/5/201316Renaissance ProgramRenaissance program allows the graduate employees to rediscover themselves and helps Petrofac in increasing its retention level gaining a competitive advantageReason:To increase the brand awareness among the graduatesTo have a unique retention strategy for having a sustainable competitive advantage

Recommendation:Leverage on social media and Petrofac challengeFocus on practical training, mentorshipRetention strategy targeting the professional and personal recognition

Implication:Increase in the brand awareness by 30 % in 3 monthsDecrease in the time to autonomy of the graduates

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Renaissance Program-RecruitingOnline Hiring Tools Are Changing Recruiting Techniques

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* Sustainability-Maintain Sustainable Competitive advantage over its competitors* Strategy DurationShort term (1 year)

Mid Term(6 months)Strategy Duration *Sustainability *HighLong Term(1 year)Low

Short Term(