GLOBAL SOLUTIONS DELIVERED LOCALLY. Achieving the talent optimisation and cost management balancing act.

Transcription

1 GLOBAL SOLUTIONS DELIVERED LOCALLY Achieving the talent optimisation and cost management balancing act.

2 Fircroft Global Managed Solutions 898m revenue for years technical/engineering recruitment experience in the Oil & Gas industry 63 offices in 45 countries globally Robust global expansion programme contractors payrolled per period. Exclusively servicing natural resource & engineering sectors 425m p.a. client spend under management across 15 global MSP programmes Core Managed Service (MSP) solutions: Vendor neutral Master vendor Hybrid Fircroft Engage Operationally and financially viable for requirements of 75+ contractors Delivering (as a minimum) cost neutral MSP programmes

3 O&G EU & global talent challenges Fiscal uncertainty Oil price at a 6 year low. Source: Reuters 21 st Jan 2015 Uncertain future on $150b of projects in Source: Rigzone 5 th December 2014 Rising decommissioning costs - 4.5b on 40 platforms across 80 fields in UKCS over next 5 years. Source: O&G Financial journal 11 th April 2014

4 EU & global talent challenges Global demand for talent is still increasing: 120,000 new workers needed in the next decade to avoid further skills shortages. Source: PWC Northern Lights report Energy demand to increase by 41% by BP Energy Outlook % of HR O&G execs state talent shortages are a major issue. Source: Rice University/Ernst & Young

5 EU & global talent challenges Not enough new talent entering the industry: 50% of O&G workers reaching retirement age in next 5 years. Deloitte, Oil & Gas Reality Check, European O&G brain drain to emerging markets such as Middle East and Russia. Source Hay & Oil & Gas Job Search 2013 Of every 100,000 9 th grade students in 2013 only 8125 will graduate with an engineering degree. Career Crossroads quote TLC June 2014

6 Articulating what this meant in September 2014 If you can spell shale, you can get a job, Ryan Lance, CEO ConocoPhillips, Guest speaking at CERAWeek conference. Houston, June 2014

7 What does it mean today in the EU? Oil firm plans 300 North Sea job cuts BBC news 21 st January Fresh blow as more North Sea oil jobs axed The Scotsman 16 th January North Sea could lose 35,000 jobs in next 5 years Daily Record 10 th December 2014 Surely this would mean we don t have a talent shortage challenge?

8 Contractor Resourcing Challenges and Trends in Global Oil & Gas Market Increase scalability & flexibility Cost control Challenges Regulatory compliance Global visibility and control Ensure consistency & efficiency in the hiring process Proactivity not reactivity Improve candidate quality & the candidate experience Reduce time to fill Trends Cost management has become a priority Project uncertainties Shortage of skilled labour still exists Increased skills demand in global & emerging markets E & P innovations (shale gas, fracking) increasing viability of smaller or mothballed projects Cost pressures are everywhere

9 6 B s of talent strategy BUY BUILD BORROW BOUND BOOST BOUNCE

10 Common O&G talent strategy Varied by emphasis/reliance on 3 primary sourcing channels: BUY Using recruitment agency suppliers to source and engage permanent hires. BUILD Establishing a pipeline of directly sourced talent via an in-house team or an MSP/RPO partner. BORROW Using recruitment agency suppliers to source contingent labour. NOTE: Many CO s in our industry run separate sourcing channels with permanent hires managed by HR/Resourcing and temporary/contingent labour being managed by separately via HR or Purchasing

11 It is our opinion that: The EU O&G industry is often dependant on agency supplied contingent labour (the borrow resourcing channel). The O&G industry has a further opportunity to maximise value from the build resourcing channel. Many in our industry in the EU are too dependant on external agency PSL suppliers to enhance their build channel for permanent hires. It is too often the case that the buy, build and borrow resourcing is not delivered by a single cohesive resourcing infrastructure.

12 Cost management recommendation 1 take stock today Establish true baseline cost of talent today to identify immediate and sustainable cost savings capacity Can't read this properly? Helps CO s to assess the suitability of their existing recruitment strategy Identifying areas of risk, opportunity & existing best practise Recruitment Analytics Self Assessment The Oil & Gas, energy, automotive and engineering sectors are experiencing unprecedented talent challenges. Sector growth, globalisation and talent shortages are some of the factors combining to impact the effectiveness of your recruitment strategy. If like many talent leaders in our sectors you are striving to enhance the value and success of your recruitment function or perhaps have specific concerns such as talent shortages, supply chain performance, the impact of regulatory noncompliance, the burden of recruitment process administration or you are not certain of achieving best value for your organisation then this complimentary Recruitment Analytics Self Assessment tool is a valuable asset. The questionnaire typically takes no more than 10 minutes to complete and is treated with total confidentially. Within 48 hours of you will receive a bespoke report that delivers an analytical overview of your recruitment strategy which is benchmarked against sector standards and will also include practical recommendations of how you can improve results. Each recommendation is supported with evidence and defines the potential quantitative and/or qualitative output. Click here to complete the questionnaire. Provides a combination of management information, opinion and data to evidence findings Kind regards, Anthony Breen Solutions Director Mob: Italic specialises in the provision of global Recruitment Process Outsourcing (RPO) solutions.

13 Cost management recommendation 2 - reduce agency costs for nominated contractors Fircroft Engage cost effective management of nominated contractors Services include managed contractor transition, dedicated support, contractor on-boarding, logistics support and day-today management including payroll processing. 5 activities that will maximise supply chain value: 1. Dedicated contractor support 2. Fully co-ordinated on-boarding 3. Logistic support and contractor management 4. Full compliance risk mitigation 5. End to end payroll processing

14 Recommendation 3 Investigate benefits of Managed Services Fully retained decision making ownership The MSP co-ordinates all recruitment process administration on behalf of the client. Client user groups benefit from reduced admin burden, enhanced services and faster access to flexible labour MSP is primary supplier of labour and co-ordinates 2 nd tier supply chain for 100% service delivery Key suppliers retained

15 Vendor Neutral MSP/VMS Model Fully retained decision making ownership VENDOR NEUTRAL MANAGED SERVICE PROVIDER VMS technology enhances the tactical, operational and strategic benefits of MSP The MSP co-ordinates all contractor recruitment process administration on behalf of the client. Service outputs are specified and measured to address specific client objectives MSP retains key suppliers who benefit from streamlined process, equitable treatment and full transparency

16 MSP case studies Features contractors in London, Aberdeen & Norway Also support projects in Algeria and Russia HQ redeployment of 100 roles from Essen, Germany split between London and Norway VMS (Peoplefluent) integration Benefits Year-on-year cost savings Fully compliant international managed supply chain Single source service for contractors and permanent hires delivering 100% of EON s labour requirements Features Managed up to 300 contractors (currently less) Current locations supported UK, Libya and Norway Previously supported clients requirements in Dubai, Syria and Trinidad & Tobago Multiple labour categories VMS (Peoplefluent) integration Benefits Integrated on-site service delivery team Fully compliant international managed supply chain Consolidating invoicing reduced Suncor finance admin by 95% Fast new location service flexibility

17 Stakeholder Outputs HR Full visibility and compliance of global contractor population Bespoke management information to support resource planning 35% improvement in quality of CV s feedback from Hiring Managers 25% reduction in contractor hiring times 100% regulatory compliance Procurement 100% preferred supplier retention Standardised supplier terms 100% invoicing accuracy Immediate full return on investment within year 1 Client 1 on-going year on year savings of 8% Client 2 total contract savings of 9.8% Huge reduction in agency noise

18 Stakeholder Outputs Hiring Managers Average admin time reduction of 2 ¾ hour per contractor hire 100% preferred supplier retention 35% improvement in quality of CV s feedback Enhanced project cost forecasting and cost controls 10% reduction in unplanned contraction attrition 95% reduction in unauthorised recruitment Suppliers 50% reduction in supplier administration (est.) 40% reduction in invoicing payment times Service feedback evidenced via a balanced scorecard Contractor Simplified online timesheeting Ability to maintain established agency relationships Enhanced global mobility

19 In summary Our recommendations to achieve the talent optimisation and cost balancing act: 1. Take stock understand and evidence true costs today. 2. Explore and implement sustainable cost management strategies. 3. Investigate how manage services can support your talent strategy.

20 Thank you & questions For further information please contact: Anthony Breen - Solutions Director Fircroft Global Managed Solutions abreen@fircroft.com Tel: +44 (0)