Rob Veersma

Dear Reader,This is the first International HR Bulletin we are providing for our HR colleagues and it contains some interesting articles we collected, varying from People Analytics to Virtual Reality Training. I like to draw special attention to 10 books every hr professional needs to read in 2017, as it provides a nice insight in the current HR trends. The next International HR Bulletin will be dedicated to The future of Work, for which we are collecting articles on the Oil and Gas organisation of the future. Enjoy the reading,

Rob Veersma, director Training

Gazprom International Training.

This Bulletin is issued quarterly by Gazprom International training B.V.Editorial: Victorya Moyiseyeva (v.moyiseyeva@gazprom-international.com)

INTERNATIONAL HR - BULLETIN

The aspirations of a new wave of employees are impacting HR strategies and pushing organisations to clarify and redefine their purpose. Companies are expected to demonstrate their values, which are ever more visible and subject to scrutiny, due to increasing digitalisation.

A new wave of resourceful employees Generation Z are self-motivated and entrepreneurial in spirit. They have been confronted with uncertainties, more even than the millennials, the generation that preceded them. As a result, they seek a job that is meaningful: salary isn’t the bottom line. Furthermore, they have seen their parents’ and older siblings’ loyalty go unrewarded by employers, so for them loyalty has to be a two-way street.

They are digital natives who have grown up in the online world. They are progressive and have had access to more resources than ever. They tend to be great networkers, which significantly improves their chances of succeeding at whatever they put their mind to. Reflecting on purpose is important to Generation Z. Companies need to revise what they stand for, particularly as it is expected that the

workforce will include at least 50% of Generation Z by 2020. As Generation Z pushes the boundaries of traditional work-models, HR departments will need to review their talent retention strategies.

The real challenge for HR is retaining Generation Z, making it clear what the business is working towards and creating an attractive proposition for them. Leaders must consistently demonstrate why their employees have made the right decision in choosing to work for them. Leaders must consistently demonstrate why their employees have made the right decision in choosing to work for them. Increasing digitalisation means social media now plays a huge role in forming opinions. Employer review sites such as GlassDoor and Great-Place-To-Work are often the first port of call for candidates wishing to vet a prospective employer, so leaders will need to look at the perceptions they are creating in the online world as well as on the shop-floor.

Key takeaways

• HR leaders need to take into account employees’ expectations around meaningful work and flexible working

• Leaders are highly influential in defining what their company stands for and communicating it in an authentic way

HOW GENERATION Z IS REDEFINING THE ROLE OF THE HR LEADER

MATURING OF PEOPLE ANALYTICS

The Bersin by Deloitte Talent Analytics Framework describes all of the elements of talent analytics.

Oil and gas companies have increasingly relied on complex data to delve into the Earth’s geology and energy resources thousands of feet below the surface. They have turned to numbers when analysing prospective acquisitions, capital expenditures, and other investments. Yet, when it comes to managing their workforces, oil and gas companies have not yet adopted the quantitative rigor that they use so effectively across their businesses. At a time when technological innovation and globalization are ushering in a new era of industry growth, large segments of the workforce are reaching retirement age, and with potential recruits from educational institutions remaining scarce, the competition for talent can now be as significant as the focus on new resources. Leading human resources (HR) organizations

within the oil and gas industry are starting to effectively use data analytics to help identify, recruit, retain, and develop skilled talent. By blending internally available data with external statistics and information related to the labour supply, these HR leaders within the industry are positioning themselves to effectively manage changes brought forth by this volatile operating environment.Organizations have millions of data elements about people—demographic data, performance data, job history, compensation, mobility, assessment, training, and more. This data can be correlated and matched to many different types of business data to help companies to understand profiles and behaviors which create high performance.

2

M-learning, or Mobile Learning – tech-savvy employees relate to digital learning; it fits with their lifestyle. As more jobs move away from the traditional office-based ‘nine-to-five,’ mobile learning, or ’m-learning’ is gaining ground. With people working flexible hours across a number of locations, working from home or spending a lot of time on the move, the availability of learning programmes on mobile devices means they can do their training at a time and place that suits them.This approach also helps L&D departments implement campaigns across geographical locations. Digital learning programmes that synchronise content, providing access to the full functionality via whichever device is being used, are particularly versatile.

Benefits:

1. Flexibility to learners. At the top of the benefits list is the flexibility m-Learning offers. This includes:• Flexibility and choice of device to access learning “anytime-anywhere”.• Flexibility of learning with more varied formats (videos, podcasts, and so on).

2. Better completion rates and higher retention. The bite-sized or micro-learning approach makes it easier for learners to initiate, complete, and retain learning better.

3. Collaborative learning.It is a great way to engage with peers to share learning experiences and be part of communities of specific practices.

4. Higher engagement.The experiences are more immersive and statistics reveal that more learners complete the courses through m-Learning than traditional e-Learning.

5. Multi-device support.The same course is available on varied devices ranging from PCs, laptops, tablets, and smartphones.

6. Performance Support.m-Learning is becoming the preferred approach to provide Performance Support intervention as mobile devices are an intrinsic part of the learners’ work-flow. This facilitates an easy access to information while at work and increases the probability of usage and retrieval.

7. Learning path.Mobile devices can also be used to update learners on their “learning path” thereby facilitating “learning as a continuum». With more people depending on phone-based organizers, integrating links in organizers to commence/resume the courses saves time for learners.

M-LEARNING, OR MOBILE LEARNING

3

Some challenges of Oil and Gas training is facing:• How to deliver specific skill areas to the operations on a safe and efficient way?• How to include new technologies into the content of the training course?

Virtual Reality Training is identified as a pragmatic and achievable solution.

Virtual Reality has been used for training and education for many years by the military, law enforcement, research labs and even NASA. Only now has the technology become available for the average consumer as mobile phone technology has driven the price of a headset down from many thousands of dollars to a couple of hundred dollars while enhancing the experience. Virtual Reality and immersive 3D applications have become increasingly utilized within all phases of the oil and gas industry.

The vast majority of the virtual reality solutions consist of expensive specially designed applications. These applications make use of modelled (computer drawings) environments. In which all kinds of simulations can be created, e.g. fires, valves breaks, spills, and thunder- and sand-storms. Often there are avatars as the interactive positioning of the student.

Nowadays we can use a new technology which is faster developed, less expensive, and which is very flexible to use. We are using the phone with an application, on which 360o filmed locations and situations, choices and actions, and virtual elements (e.g. fire, smoke, spill, etc.) are creating a dynamic learning environment.

This application would be of great benefit for learning applications for e,g. HSSE implementation. In the environment where HSSE is highly important, we can introduce Virtual Reality Training as it will provide:• Real life situations (Accurate and realistic simulations), but strictly safe and no operational disturbance• Very effective learning, as the student experience is pivotal and feedback is direct

Virtual Reality Training can be used in many training scenarios as it confers a wide range of benefits for the industry alike.

Other benefits• Cater for large numbers of students over various locations• Highly visual approach which aids with learning• Peer review, feedback and ongoing assessment• Cost effective

Virtual Reality Training is crucial in safety / security situations in the oil and gas industry. Training in unsafe situations is a huge challenge: often too costly, too much time consuming, and too dangerous.

VIRTUAL REALITY TRAINING

4

Given the large amount of unconventional oil and gas reserves around the world, experts predict that talent demand for unconventional plays will increase globally. Balancing Short-Term Needs with Long-Term Planning

Although there is a need for HR to address current market realities, the forward-thinking HR leader will put forth a balanced strategy-taking necessary short-term actions while building capability and enhancing organizational performance for the long haul. This view is essential, because oil price is fundamentally based on supply and demand. Even if oil prices do not return over USD100 per barrel levels, as investment cuts take their toll, demand will eventually outpace supply, and organizations will be in growth mode again.

To stay ahead of the game, industry employers need to protect forward, with reliable data, ensuring that valued employees stay and future talent is available.

TALENT DEMAND

In our 21st Century’s business environment, it’s essential that L&D delivers to the pace & direction of the business. As the global environment and business are rapidly changing, it is important to shape a learning strategy that aligns with organizational goals and delivers learning that boosts employee performance while improving business results. This learning strategy is the blueprint for assessing the requirements of an organization’s learning framework and how this framework can drive organizational performance.

The result of this process is a Corporate Learning Strategy (CLS) with 6 clusters that are key component of a healthy learning organization. Each component contains 5 concrete guidelines to review, embrace and implement to further professionalize your corporate learning strategy in relation to your specific organizational context.

The 6 corporate learning strategy components are:

1. Corporate learning Mission & Plan. A component that relates to the mission, strategy, learning plans & policies in your organization.

2. L&D Governance & Finance. A cluster with a focus on your learning governance and which funding models you have in place.

3. Learning Technology. A component to assess whether learning technologies are aligned, integrated and accessible

4. Learning offer; design & delivery. A component with a focus on design & delivery strategies and management of existing L&D portfolio.

5. L&D sourcing & vendor management. A cluster that relates to sourcing strategy, and how vendors are managed.

6. L&D measurement & processes. A component that relates to needs analysis and which processes are in place that turn business stakes into L&D KPIs.

CORPORATE LEARNING STRATEGY: TIME FOR YOUR HEALTH-CHECK?

5

Jan Rijken - Director of Crossknowledge Learning Institute

10 BOOKS EVERY HR PROFESSIONAL NEEDS TO READ IN 2017

A sideways look can provide a whole new way of solving problems…..Take the case of Russian businessman, who walked into a Swiss bank in Geneva and asked for a $100 loan, offering his luxury Mercedes as collateral. A year later, he came back, repaid the loan and the 10% interest and prepared to collect his car.The puzzled bank manager asked: “Excuse me, but did you really need that $100 so badly? In order to get it, you left your Mercedes here for a whole year!” The Russian replied, “that’s simple – think outside the box: where else in Geneva could I find such a great parking place for just $ 10 a year?”Not all of us are troubled by the need to garage a luxury Mercedes. But, from time to time, we can all do with a “curve ball” view on our work.

GET THE LATERAL VIEW

6

1. First, Break All The Rules: What the World’s Greatest Managers Do Differently —  Marcus Buckingham, Curt Coffman A study of exceptional managers across industries shows one common denominator: great managers break conventional wisdom and apply innovative methods to shape productive teams.

2. Good to Great: Why Some Companies Make the Leap…And Others Don’t — Jim Collins The author poses question of ‘what makes a good organization great’ and uncovers some truths about those organizations. A great source for those looking to take their team to the next level.

3. Why Employees Don’t Do What They’re Supposed To Do And What You Can Do About It — Ferdinand Fournies The author shows how to handle uncomfortable situations where employees’ focus strays. Offering insight into multiple situations, Fournies also offers applicable solutions in dealing with these negative incidents.

4. The HR Answer Book: An Indispensable Guide for Managers and Human Resources Professionals — Shawn Smith and Rebecca Mazin The HR Answer Book offers insight and guidance into everything for the modern HR professional — from recruiting, to onboarding, to employee exiting.

5. Love’em or Lose’em: Getting Good People to Stay — Beverly Kaye and Sharon Jordan-Evans Retention is key in today’s workplace, where replacing a worker is more expensive than attempting to keep one.

6. Smart Staffing: How to Hire, Reward and Keep Top Employees for Your Growing Company — Wayne Outlaw Retaining today’s top talent is one of the top challenges of modern HR managers.

7. 1501 Ways To Reward Employees — Bob Nelson, Ph.D. Revised and reprinted in 2012, book offers up methods to help keep employees happy and nurtured.

8. Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead — Laszlo Bock Quantitatively focused, this book exemplifies how technically minded the human resources space has become.

9. 100 Ways to Motivate Others: How Great Leaders Can Produce Insane Results Without Driving People Crazy — Steve Chandler By the author helps professionals seek a more productive workplace culture by upholding accountability and emphasizing focus on people’s strengths — not their weaknesses. A must-read for those looking to shift the cultural paradigm.

10. Lean In: Women, Work and the Will to Lead — Sheryl SandbergAuthored by one of Time’s 100 Most Influential People in the World, Lean In explores a professional’s path through today’s workplace — from achievements, to failures, to maintaining a healthy and productive balance.

7

People tend to trust human judgment over algorithms. Even when an algorithm consistently beats human judgment, people prefer to go with their gut. In 2014 Dietvorst, Simmons and Massey published an interesting article with the title: “Algorithm aversion: people erroneously avoid algorithms after seeing them err“. Through several studies they show that people are not as tolerant for algorithms as they are for people. If an algorithm makes a mistake, the confidence in the algorithm quickly goes down. You can see the mechanism at work when there is an accident with a Tesla; than the newspaper report how unreliable the automatic steering software is. Dietvorst et. al. state: “The aversion to algorithms is costly (-) for society at large. Many decisions require a forecast, and algorithms are almost always better forecasters than humans”. Algorithm aversion is “enormously problematic, as it is a barrier to adopting superior approaches to a wide range of important tasks”.

WHAT IS ALGORITHM AVERSION?

In a world where cars can drive themselves, hospitals can perform surgeries with robots and computers can negotiate corporate mergers with one another, do you really need humans to get work done? It’s a legitimate question. Since the 1980s the share of the U.S. economy devoted to labor has fallen precipitously, a trend seen across the world, particularly in developed nations. Much of that decline can be attributed to businesses’ substituting workers with computers or other technological replacements. But as it turns out, there’s a strong and emerging case that the future of work is going to involve humans. In fact, the evidence suggests we’re indispensable. It’s human talent, not capital or technology or anything else, that is the key factor linking innovation, competitiveness and growth in the 21st century, says Klaus Schwab, founder and executive chairman of the World Economic Forum. Work, he says, shouldn’t be a race between humans and machines, but a part of life that helps people recognize their full potential.

NOT MAN VS. MACHINE BUT MAN AND MACHINE

This is just one of the findings from LinkedIn’s recently released 2017 Global Staffing Trends report. Additionally, 79% expect to see an increase in the volume of candidates placed in 2017. Some of the top challenges leaders say their teams are faced with include: competition for talent (58%); business development (38%); limited budget (30%); small recruiting team (25%); and poor communication with hiring managers (20%).Staffing budgets: 53% expect their budgets to increase in 2017.

2017 GLOBAL STAFFING TRENDS

Why do corporations save on safety, what happens to the market of educational services in the oil and gas sector and whether we should wait for new state of emergency in production, says industry expert, owner and director of the Dutch training center Delta Safety Training (DST), Peter Carpay. In recent decades, the demand for supplementary training services in all sort of disciplines has increased worldwide. But we need to see this from two different angles, Upstream and Downstream Oil & Gas. Upstream is still very much focused on ‘Emergency response’ so training like BOSIET/Fire Fighting, where Downstream is more focused on preventive safety training, like ‘confined spaces, forklift-truck, hoisting and lifting’, etc. Overall we do see that the aim to have 0 accidents drive the demand for more

«Where it used to be common sense to keep the security certificate is valid for all Operational brigade in the upper parts we see that now this is done only if/when employees should go to projects where these certificates are required».Oil-field service companies had to undergo a considerable corporate restructuring in order to shape up for the current market conditions, such as decreasing workforce, cutting down on expenses and reducing service fees. An example of this, is the projected reduction of the OPITO BOSIET course from 3 days to 1 ½ day, Carpay says. In his opinion, OPITO is under pressure from the major companies to allow all theoretical subjects to be covered by e-learning. The training provider than has to assess if a course attendant has completed and mastered all the theory, before entering the practical part of the course. This

INDUSTRIAL SAFETYInterview Peter Carpay

safety training. In countries where safety was less ‘top of mind’ in earlier years, we see a growth in demand for safety training. We see that at least safety becomes more global than it used to be. The market of educational services of oil and gas sector has changed, says the head of DST. There is even more pressure to cut courses and save on the cost of service and related services (hotels etc.) attendants, of course. Companies also try to cut corners’, trying to combine training and certification to save on the cost of training. This is happening more in Offshore than Onshore, while the market onshore is much better in Europe than at sea. Sub-contractors are pressured to lower prices, they in return put pressure on their training providers to lower the cost of training. It is a chain, everything is connected.

will have a negative impact on the effect of the training, because it is difficult to sure that everyone really understands WHY and HOW procedures are designed. «We like to train in a dialogue in which we can double-check if the subjects understand. Test-based computer does not have the same effect as face-to-face contact». By the way, DST head believes that changes driven by the companies to the market will largely depend on where the training institution is based and on which markets they are acting. In General, there will be less investments made in new training developments and the pressure to certify crew that have received less training will be forced on training institutes. «It’s good that there are monitoring

Peter Carpay

8

9

standards as OPITO, but sad to see that they too are succumbing to market pressures. Change and modernisation is good, but the quality and training standards for safety must not suffer on the cost pressure». According to Carpay, today’s economic risks may highly affect ship building and ship decommissioning. Shipyards’ work has a high risk profile. If majors will seek the cheapest option for new construction and repair, the industry might expect for new accidents, Carpay says. “And: it will be always the poorest and less educated crew members that suffer ‘the blow’. The crane does not lose its load above the office”.Governments and international organizations are continuously strengthening the legislation with regard to the oil and gas industry, in particular concerning the HSE requirements. The reasons for this are obvious, for example, a number of large-scale accidents on some industry sites all over the world. The role the governments plays, varies in different countries. For example in the EC the government moves back and leaves HSE to the industry itself. Unfortunately, every major accident gives a temporary boost to safety and safety training, but when everything goes smoothly for a long time, the pressure on HSE usually fades away. Carpay refers to few examples the last few years. “The Costa Concordia was a wakeup call as was Deep Water Horizon and Fukushima (nuclear). Accident investigations usually state clearly that the accident itself and/or much of the negative effects could have been less severe if/when different procedures were followed and people would have been better prepared for, etc. Why do people on a nuclear plant choose not to use seawater to cool an installation, because

of potential damage by the salt? The result now being that all was destroyed. Why are lifeboats on a cruise vessel so difficult to board (quickly) for older people? Why was there time pressure in the drilling of a ‘wild cat’ in the Gulf of Mexico with all the risks involved? The change, if any to be expected, has to come from the asset-owners, the major companies like Gazprom, Shell, BP, Exxon, etc. They are in the end in control in what they demand on their installations”. According to him, when any of them really want to change they have to accept that this will initially increase costs, but will prevent the potential costs and negative effects of a disaster. «An example: We have operated for a number of years an assessment scheme under DNV certification for scaffolders in the Netherlands and Belgium. All of them where screened on behavioural safety and skills and monitored in their day to day safety records. The results were very positive (2 times 1 million incident free scaffolding working hours) but the project stopped after a few years, because the asset owners refused to contribute to the costs of the program». Actually it is a ‘money driven’ decision. For this last reason experts predict that until the next big accident happens the focus in safety will not grow over the coming period. Peter Carpay points out that there was a good example from the past: the ‘VCA’ (equivalent to ‘mist’-UK or Nebosh) where SHELL made it obligatory in 1994 that ALL PERSONNEL entering the gates of one of their refineries in the Netherlands should pass a 2 day course plus exam on general petrochemical safety. Even the gardeners and the coffee-ladies had to pass the exam. At first: everyone was against, now it is a certificate which every school facilitates to its pupils. It works, he says. «Things can and will change if the decision makers want them to change. Difficult to predict what the market will do the coming period…I hope we do not have to wait for a big accident before further improvements are made. The decisions are made higher up the ‘food-chain’ than we as training provider are positioned».

Peter Carpay believes in a few global trends:

a) Safety will become more ‘Global’, also countries where the care for safety used to be less than in the economic hot spots, will eventually join. Prospective areas for training are: India, Middle East, South America’s, Vietnam, Bangladesh, parts of Africa.

Interview Peter Carpay

b) Upstream Oil will have to make a move to more preventive safety courses. More skills and certified knowledge to prevent high risk situations.

c) Practical, practical, practical. Theory will be more and more done in serious gaming, e-learning etc. Training providers should focus on realistic and high value practical training and assessments. Virtual reality is nice, but still fake.

d) With the travelling international workforce we have, the need for the central registration of competitive crew and project history per client including validation of training, medicals and certification becomes vital. We have solutions for this, which we implement for our clients. Also with the growing risk of terrorism, you want to know who is who on your projects…

e) The drive for ‘local content’ in new Oil & Gas countries will grow. This will create the need for Asset owners to join forces with training organisations. We can transfer non-educated inexperienced local people into industrial/maritime maintenance crew who will work safely.

f) New courses for higher levels of personnel will be mainly on behavioural safety, specifically for the middle management on site. That is the management level where the most ‘wins’ can be produced.g) The courses for ‘blue collar’ most in demand – as we expect- will be on working at heights and with/under cranes as well as confined spaces and gas monitoring. The lack of operational safety knowledge is sometime staggering. The growth in the (Offshore) Wind industry will drive up the need for related (GWO) courses, worldwide.h) Globally there will be a problem to replace the older engineers from the ‘50’s and ‘60’s with new engineers. This will increase the need for more technical colleges and vocational training.

Interview Peter Carpay

Safety is a familiar concept to us all. We read safety reports before we buy a car, instruct our children to wear bicycle helmets, and buckle our seat belts in the car. We are surrounded by safety labels on everything from plastic bags to hair dryers. But how often do we talk about safety in our workplace, where we spend one-third of our adult lives?

The answer to this question is probably not often enough. Data show that each year an average of 3 million people in private industry face some kind of injury as a result of their jobs. In many industries, injury costs can exceed profit in a given year.

At its core, workplace health and safety has four essential parts:1. Culture: the values, assumptions, norms, and everyday behaviors of an organization’s people,2. Compliance: meeting mandated regulatory standards,3. Risk Management: processes to better identify risk and to control exposures, and4. Governance: establishing controls by which an organization can validate and ensure compliance standards and policies.

To truly create lasting change, organizations must create an environment in which safety is more than just a box to be checked, but is an attitude that makes up the very foundation of the company and is upheld by everyone from front line workers to senior management.

MAKING A CULTURE OF SAFETY THE FOUNDATION

Key figures for Great Britain (2015/16)

• 1.3 million working people suffering from a work-related illness • 2,515 mesothelioma deaths due to past asbestos exposures (2014)• 144 workers killed at work• 72,702 other injuries to employees reported under RIDDOR • 621,000 injuries occurred at work according to the Labour Force Survey• 30.4 million working days lost due to work-related illness and workplace injury • £14.1 billion estimated cost of injuries and ill health from current working conditions (2014/15)

HEALTH AND SAFETY STATISTICS

10

GAZPROM INTERNATIONAL TRAINING