2. Team..
Santhosh Prasad
Indian
Electrical Engineer
Claire Torelli
French
Finance
Eruchalu Ije
Nigerian
Economics
Sean Peter Huber
Austrian
Industrial Design
Emre Yararbas
Turkish
Chinese Business
Manikandan Sivasankar
Indian
Consultant & Entrepreneur
2
5. 18000 employees operating in 27 countries for the past 32 years
• Leading player in the oil & gas service industry
• Annual revenue of $6.32 bn with a projected growth rate of 16.80 %
• Two divisions:
• ECOM-75 % of petrofacs revenue
• IES
• “Aim to be the world’s most admired oilfield service company”
• Current 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.
Petrofac
5
Source: http://finance.yahoo.com/q?s=PFC.L
6/26/2016
Source:http://www.petrofac.com/index.asp?pageid=118
6. 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 Analysis
6
Source: http://www.ibisworld.com/industry/global/global-oil-gas-exploration-production.html
Source: http://www.world-petroleum.org/docs/docs/speeches/wpc%20Presentation%20the%20Aging%20Workforce%202.swf
6/26/2016
• It 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 years
• 40 -60 % of the aging employees will retire within next 5 -10 years
• 30-40 % 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.
9. 37%
26%
2%
32%
3%
Workplace support
Individual variability
Compensations
job quality
Job demands
On average O& G services industry has a retention rate of 95-96 % as of 2012
• Based 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 compensations
0%
20%
40%
60%
compensation
growth
new skills
• 51 % of the employees tend to leave the organization citing increased compensation
• 31 % to pursue greater advanced opportunities
Retaining
9
Source: Survey Monkey(http://www.surveymonkey.com/s/8SY583C)
6/26/2016
Graduates Perception Employees reason for leaving
10. 6/26/2016 10
• Current strategy of Petrofac HR department
Situational Analysis
• Opportunities
We 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 opportunities
Can 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 Aker
Graduate Program Period:2010-2012
Location: Sharjah
Department : Process engineering
Mode of interview : Group interview
No of participants:7
Location : Starbucks, MOE
Date of interview : 28th July 2013
12. Common Trends in Recruitment & training
The following have been found as the trends followed in the recruitment and
training industry
Recruitment:
• Internal Recruiting (e.g. Promotion)
• Employee referrals
• Outsourcing
• University Recruiting
• Employing specialized recruiters
• Online job portals
• Social media (twisumes, Video resumes)
Training:
• Classroom lectures
• Theoretical training
• Training institutes
• E-learning
• PLE(Personal Learning Environment)
126/26/2016
13. 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 technique
High Impacting Trends (H.I.Ts):
Leveraging on the Social Media for Recruitment
136/26/2016
Consumerization 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 %
15. Academy Structure Proposal
Management
Consultants (retired professionals, University
professors, Industry experts)
Trainers (Senior & Assistant)
Graduates
Strategic decision Making
• Syllabus formation
• Seminars
• Conference
• Training execution
• Mentoring
• On-Job-training
• E-Learning
• Simulations
6/26/2016 15
Renaissance Structure will assist Petrofac’s academy to perform efficiently and with
economies of scale
Reason:
• To have a centralized decision making system for efficiency
• To 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 syllabus
• Leveraging on the skills of Petrofac training services to train the graduates
Implication:
• Increase in efficiency to centralized decision making
• Thought leader in the industry
* source: http://www.mindtools.com/pages/article/newSTR_54.htm
16. * Current Brand Awareness 25 %
• Providing options to the Graduates to Master the core competencies faster
• Direct Stakeholder:Students,universities,Employees & Business Division, Government
• Indirect Stakeholders:Competitors,Recruitment & training agencies, Government
6/26/2016 16
Renaissance Program
Renaissance program allows the graduate employees to rediscover themselves and helps
Petrofac in increasing its retention level gaining a competitive advantage
Reason:
• To increase the brand awareness among the graduates
• To have a unique retention strategy for having a sustainable competitive advantage
Recommendation:
• Leverage on social media and Petrofac challenge
• Focus on practical training, mentorship
• Retention strategy targeting the professional and personal recognition
Implication:
• Increase in the brand awareness by 30 % in 3 months
• Decrease in the time to autonomy of the graduates
18. Renaissance Program-Recruiting
“Online Hiring Tools Are Changing Recruiting Techniques”
6/26/2016 18
Renaissance
Program
Recruiting
1.Social media
2.Petrofac Challenge
3.University
Scholarship
Training
Blended training
structure
Retention
Revamping the
recognition and
environment to retain
the talent
* Sustainability-Maintain Sustainable Competitive advantage over its competitors
* Strategy Duration
• Short term (<6months)
• Mid term (6 months)
• Long term (>1 year)
Mid Term
(6 months)
Strategy Duration *
Sustainability*
High
Long Term
(1 year)
Low
Short Term
(<6 months)
Reason:
• To increase the brand awareness to 35 %
• To increase in the quality of the graduate intake
Recommendation:
• Leverage on social media to increase the brand awareness
• Introduce Petrofac challenge platform for recruiting
• Introduce the scholarship scheme into Petrofacs recruitment
strategy to have a candidate lock in
Implication:
• Increase in the brand awareness to 35 % in 3 months
• Quality of graduate recruit increases by the challenge
19. Social Media
• Hire a Social Media
Executive
• Ask questions to the students
• Reward the student who
answers the question with a
freebie
• Post Graduate interviews
• Post details about the GDP
• Increase the content about the
company
• Update the information
frequently
• Increase the popularity of the
page among Petrofac employees
• Place banners, fliers of petrofac
In the universities(Guerilla
marketing)
Social Media plays can be leveraged upon by Petrofac to increase its brand
awareness by 34 % in 3 months
• More than 1 Billion registered users
• 901 Million active users/month
• 60 % of students are active on Facebook daily
6/26/2016 19
21. Petrofac Challenge
Petrofac Challenge can be effectively used as a medium to source the graduates as
well as to establish the brand presence among the students
6/26/2016 20
Petrofac
Challenge
What ?
Design
Simulation
Challenge
(University level)
When?
January to
June(5 Step
Process)Every
year
Why ?
To increase the
Brand
awareness
Source of
recruitment
Who?
Challenge Core
Team:Petroc
Engineers,
Academy
Participants:
University
Graduates
Petrofac Challenge Proposed Schedule
Two days in Aberdeen, 3 days in London
S/n
1 Flight Ticket: Return
(British Airways)
Dubai –
Aberdeen
Aberdeen -
London
3000 X 5
845 X 5
15,000AED
4,225
2 Hotel Accommodation Accommodation
+ breakfast
3000 X 5 15,000AED
3 Feeding 900 X 5 4,500AED
4 Tourism package 300/person:
1,500
7,500AED
TOTAL 46,225AED
• The top 3 teams will be winners and the runner ups.
• Prize allocation:
• 1st Team - Acceptance to GDP+ Travel package
• 2nd Team - Acceptance to GDP
• 3rd Team - Offer for an internship
22. University partnerships & Scholarships
University Partnership:
• Aim is to Inculcate Petrofac brand among the students
• Leverage on the existing partnership with the universities to increase the brand
awareness
• Promote Petrofac’s social media page via fliers, banners (Guerilla Marketing)
• Provide internships, Summer Project options to the partnered university
candidates
Reality Check:
University of
Washington(Bothell)-
Cooperative Education system
Scholarships:
• Aim is to have a lock in of the candidate
• Target :Technical training institutes
• Sponsor the candidates 2 year engineering course in the partnered universities
• Time to autonomy will be 2-3 years.
• Consistent supply and lock in of the Graduates; which is legal in the GCC*
Reality Check:
US Airforce,Buildingcareers.org
(Building and construction authority of
Singapore
6/26/2016 21
Source: Networkers Incorporation
23. 6/26/2016 22
Renaissance
Program
Recruiting
1.Social media
2.Petrofac Challenge
3.University
Scholarship
Training
1.Training and
mentoring proposal
1.Proposed Academy
Structure
2.Proposed Calendar
Retention
Revamping the
recognition and
environment to retain
the talent
Renaissance program - Training
24. Training and Mentoring Proposal
6/26/2016 23
66.5 %* of the graduates prefer to join a company that has blended learning and
mentorship techniques
Blended Learning:
• Integrating oilennium (from Petrofac training services) with the Graduate development program
for an effective blended learning
• Mentoring – “sustained relationship between an employee and a trusted advisor”
Mentor Selection Criteria
• Based on HR Feedback
• Based on Peer and junior
employees feedback
• Based on Project
Experience
* www.spe.com/training/researchresult2012
25. Training-Academy Schedule
Course/month
Process Eng and HSE Design T B
Civil & structural T B
Mechanical & Metallurgy T B Key
Piping,layout & Pipelines T B Training Week
Electrical T B Business week
Control instruments & telecomms T B Visit
Construction/Constructability T B Vacation
Business Rotation
Site rotation (50 graduates)
Engineering Rotation (50 Graduates) Rotation
OctJun
Rotation
Apr May July Aug SepOct Nov Dec Jan Feb Mar
• 101 Module training will be provided to the graduates as e-learning (Virtual classrooms-optional).
• An Assessment will be held on the first week of October on the e-learning
• The Training is designed to have 2 Training weeks and 2 Business weeks (Exercise and business task)
for each month
• 2 bi-weekly simulation assessment /month(Gamification Simulation from Petrofac Training services)
• Graduates are provided with option to return to the academy as assistant trainers after their rotational
period
6/26/2016 24
Hands on training and Classroom lectures blended together increases the efficiency of
the graduates by 48 %*
101 Module training converted
to e-learning format
Access provided to students
as soon as they are recruited
26. Renaissance program -RETENTION
6/26/2016 25
• Reasons:
• To retain the talent within the organization
• 54 %* of the people would like to have a flexible work environment and good career
growth path
• Recommendations:
• “Better retention starts with better recruitment and training”
• Retention through Professional Advancement Opportunities(Peer mentoring, Career
growth, Compensation)
• Feedback documentation appraisal by HR department for Line Managers on graduate
trainee performance
• Retention through Personal Recognition(Flexibility in work schedule, retention reward
programs, employee recreational benefits)
• Team recognition with: incentives such as team getaway packages
Impact:
• Productivity level of a satisfied employee is 30 % more higher
* 97% of graduates hired since 2010 are still working for Petrofac
Source:http://www.petrofac.com/index.asp?pageid=97
Renaissance
Program
Recruiting
1.Social media
2.Petrofac Challenge
3.University
Scholarship
Training
1.Proposed academy
structure
2.Revised
Retention
1.Flexible work
environment
2.Professional &
personal recognition
27. 6/26/2016 27
Timeline and Cost Resources
MOVE RESOURCE COST
Recruitment
Social Media
Current Petrofac
Staff Nil
Challenge
Current Petrofac
Staff 47,000aed
Scholarships Universities 30,000aed X 5persons = 150,000
Internships Universities 2,000 X 5 = 10,000
Summer Projects Universities Nil
Marketing Materials Internal N/A
Mentoring & Training
Structure Management Nil
Selection Management Nil
E-learning Oilennium Nil
Retired Professionals
Honorariums per
visitation: flight
tickets, pocket
money,
accommodation
University Professors
Industrial Experts
Retention
Time Flexibility Management Nil
Team Packages Management 1,200/team/quarter
Retention Reward
Programs Management Point Accumulation technique
Total 161,200 AED
Activities
Social Media
Challenge
University Partnership
Scholarships
Move 2
Training
Graduate Program
Flexibility
Benefits
Move 3
Retention
Year 1 Year 2
Move 1
Recruitment
29. Summary
6/26/2016 26
Recruitment: Using social
media to attract the necessary
candidates
Training: Using
eLearning, Simulations,
mentorship, site trainings
Retention: Using
unique employee
packages
32. Very Similar Very Different
Very Different
Very Similar
Type of Offering
Type of Market
1
1 5
5
Competitor Map
32
33. Survey Results
Survey Details
Targeted Sample 150-200
Attended 100
Target Market Fresh Graduates,
Engineering students
Survey Based on • Location
• Discipline
• GDP selection criteria
• GDP duration
• Type of training
• Brand Awareness
Survey conducted on: Survey monkey
Link to survey: http://www.surveymonkey.com/s/NHJ3VBV
33
34. 0 1 1 2 2 3 3 4 4 5
Compensation benefits
Career growth
Training programs
Programme duration
Brand Awareness
Graduate Development Program Selection criteria
Survey conducted on: Survey monkey
Link to survey: http://www.surveymonkey.com/s/NHJ3VBV
34
35. Survey Results
Asia 49%
Africa 41%
Europe 5%
Middle East
5%
Mechanical
22%
Civil 11%
Chemical 14%
Petroleum 8%
Others
(electrical,archit
eture,computer
eng,ECM) 44%
6-12
months
67%
1-2 yrs
31%
2-3 yrs
3%
0%
10%
20%
30%
40%
50% 44%
22% 25%
6%
3%
Program Duration
DisciplineLocation
Brand Awareness
35
36. Survey Results
37%
26%
2%
32%
3% Workplace support
Individual
variability
Compensations
job quality
0%
20%
40%
60%
compensation
growth
new skills
Employee Preference
Employee attractiveness
Source :www.surveymonkey.com
Survey Details
Targeted Sample 150-200
Attended 100
Target Market Employees, Fresh
Graduates
Survey Based on Retention and
Attractiveness
36
37.
38.
39. Oil and gas equipment & services industry has a market capital of $3.89 trillion
providing a net profit margin of 7.50 % with projected growth rate of 15.84 %.
• O & G service sector contributes to producing 60 % of worlds energy
• Major players – Schlumberger,Petrofac,Shell,BP,Technip,Saipem
• Job opportunity expected to grow at the rate of 17 % by 2020.
Recruitment
•30 % projected
growth in
recruitment.
•HR department
strengthen to lock
in capabilities
•Trends: Internal
recruiting,
University
Recruiting,
employee
referals,GDP
Training
•Avg annual growth
rate of 2 %
•Shifting towards
PLE
•51 % companies
deliver training via
e-learning for 50 %
of the employees
•Trends: Classroom
lectures(Training
1.0),E-learning ,
PLE(Training 2.0)
Retention
•Avg retention rate
of 95-96 % in O & g
service industry
•Work environment
and individual
growth accounts 60
% of turnover
•Attrition rate
minimum due to
compensation
•30-35 % prefers job
quality for staying
Industry Analysis
39
40. Training industry:
• Industry develops into Personal learning environment
• learners have the ability to take control of his or her own learning experience.
• 61% of Mandatory or Compliance Training is delivered online
• 51% of companies deliver at least one training session via eLearning to over
50% of their employees, compared to 39% .
• 70 % of companies expected to gamify their learning process( gamification
process)
41. Analysis
• Maria Tecnimont SpA is an International publicly registered group with segments in: Engineering
& Construction E&C, Technology & Licensing, Energy & Ventures
• With the Engineering & Construction being the highest source of revenue generation with
€1,810M in 2012.
• Market Capital: € 206.19M, Revenue: € 2.0B, EBIT: € 18.7, and projects in our 21 subsidiary
locations spanning across 7 continents of the world.
• Located in Rome, Italy, with presence in approximately 30 countries, with about 4,997employees
worldwide. The company has grown over the years by reason of acquisition.
41
42. Tecnimont Analysis
1810
177
199
Maria Tecnimont Revenue by
Business Segment
Oil & Gas &
Petrochemicals
Power
Infrastructure &
Civil Engineering
58%18%
3%
7%
11% 3%
Maria Tecnimont Employees by
Business Segment
Engineering
Oil & Gas &
Petrochemicals
Power
Infrastructure
Other Technical
Area
Sales
With the oil & gas & petrochemical segment being the bulk source of revenue, it
also constitutes the major field for recruitment. For skills in: chemical, civil,
petrochemical engineers, and geophysics.
42
43. Compa
ny
Busine
ss
Segme
nt &
USP
Category
of
Competiti
on
Mode of
recruitment
Emplo
yee
base
Engineering
department skills
Graduate
Prog
Retenti
on Rate
(%)
Time
frame
for
prog.
Recruitment
Process
Remuneration
Oil & Gas
Saudi
Aramco
Oil &
Gas,
Renewab
le energy
Client
Competitor
Online
application,
College
continuation
Program
52,000 Electrical, Mechanical,
Petroleum, Physics,
Marine, Refinery, Project
Mgt
No 99.75 3years Application,
Psychometric & aptitude
tests, orientation, offer
22,000
Health benefits,
Education, travel
& leisure
Gazprom Oil &
Gas,
LNG,
Transpor
t
Indirect Online, University
partnership, Fairs
393,000 Every Department Yes 99.9 Online application and
testing, phone
interview,assessment
day, Final assessmnt,
Offer
Health insurance,
accident
insurance,
bonuses, salary
BP Oil &
Gas,
LNG,
Marine
Indirect Online, University
fairs,
partnerships
87,500 Geoscientists, petro
physicists, mechanical
technicians, Business
enterprise
Yes 95 2-3
years
Salaries, bonuses,
pension, health
insurance, paid
travel, CSR
Oilfield Services
Schlumb
erger
Seismic,
Dilling,
Prod.
Direct Online,
Partnerships with
universities, job
fairs
120,000
+
Military Mechanics &
technicians, Geoscientists,
Engineering researchers
Yes 3years Online, testing, phone
interview
34,000, health
benefits,
retirement plan
Flour Oil &
Gas,
Biofuels,
Infrastr.
Project
mgt
Direct Online,
Partnerships,
Funds/scholarshi
p, fairs
41,000 Any engineering Yes 4years Online Health services,
Dental coverage,
life & accident
coverage,
Retirement plan
Academies
Rolls
Royce
Civil and
defence
aerospac
e,marine
,energy
Indirect Online,career
fairs,referal
50,000
(group
base)
Yes 98 % 1-2 years University
interviews,career
fairs,personal
interviews
Avg salary -
$70,000
Volkswa
gen
Automot
ive
Indirect Online,career
fairs,referal
501,956 Yes 96 % 1-2 years University,personal
interview,refereal
44. Tecnimont Value Chain
Recruitment
• Online, Institute partnerships
• 70 graduates yearly
• University/High school Graduates with skills in: Engineering, Economics,
Geology, Agrarian studies
Training
• 3 weeks, 120 class hours
• Mix of theory and practice modules.
• 30% of course participants will be employed on active construction sites
• The training is run in partnership with ASSOIL
• Courses on: Project Management, Economy & Finance, Specialized
Technical courses, Languages, Inserting
Retention • Remuneration/Bonuses
www.mariatecnimont.com
44
45. Tecnimont - SWOT
STRENGTH
Growing presence in the middle east
Strong referral network in Europe
Strong Subsidiary presence across continents
WEAKNESS
Small number of university partnerships
Improper graduate trainee structure
Lack of compensation derivatives for employees
Inadequate training syllabus compilation
OPPORTUNITY
Increasing university partnerships in key
locations
High school partnerships in Europe and Middle
East
Development of the curricula with training
institutes
Development of a structured e-learning platform
across all Tecnimont locations
THREAT
Growing competition for skill set by competitors
Poaching of trained personnel by competitors
Loss of graduate applicants to the company
leading to vacuum in the company
With the growing presence in the middle east, Tecnimont can increase its university partnerships, using
field-trips to also catch the interest of high school students in the industry.
45
46. • British Petroleum is a multinational oil and gas company headquartered in London,
England, United Kingdom. Operating in areas such as: exploration & production,
refining, distribution and marketing, petrochemicals, power generation, trading and
renewable energy.
• Having a global presence in approximately 80 countries, with about 85,900
employees worldwide.
• Market Capital: $135,555.70, Revenue: $107,214M, EBIT: € 18.7.
BP Analysis
46
47. BP Analysis - Value Chain
Recruitment: Online, University partnerships,
Internships, Facebook. 1000 graduates by 2014.
Graduates of Engineering with 2.1 degrees. Online
assessment, face-to-face technical interview, team
assessment
Training/Development: 2 - 4 year Graduate
Challenge. Training based on business segment
deployment. Specific Discipline training with 25 – 30
days of training each year, on both internal and
external courses. Personal development plan with
mentor, annual assessment. On-the-job training with
e-learning blend of scenario and simulation based
approaches, based on real BP sites.
Retention: Pension Scheme, Career development
into either Technical or Management roles. Employee
assistance, Flexible working hours, Holidays,
vacations and career breaks, Discounts, Share pay
scheme.
www.bpcareers.com 47
48. BP Analysis - SWOT
• Demand for target market by
other companies in the sector
• Oil prices which affect
recruitment demand
• University partnerships
in Russia due to shale
oil exploration buy in
• Length of the programme
• Lack of options to choose from,
very streamlined
• Inadequate university
partnerships
• Master’s degree holder
applicants only
• Interaction with graduate
candidates using social
media: Facebook
• Consumer brand
awareness: Gas stations
• Discipline based training +
OTJT
• Option for technical or
management role upon
graduation. Share Scheme
Strengths Weaknesses
ThreatsOpportunities
49. Ansoff Matrix – Move 1
Recruitment
strategy: Fluor targets
specific kind of skills in
graduates coming from
specific partner
universities
Move explanation:
Fluor should target
new partnerships with
universities, especially
in countries like
Kazakhstan where the
company is already
doing business
50. Ansoff Matrix – Move 2
Training strategy:
Fluor has traditional
training methods
Move explanation:
Fluor should develop
its training techniques
to make its program
more attractive for
graduates
50
51. Ansoff Matrix – Move 3
Retention strategy:
Fluor has a substantial
benefits plan for its
employees but
apparently it is still not
enough to retain its
graduates
Move explanation:
Fluor should offer new
and original benefits to
its employees to
differentiate from the
competitors (career
growth, work
environment, social
benefits)
51
