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Academia-Industry Brainstorm Session
17th October, 2008
Dr.A.K.Balyan,
Director(HR), ONGC
Oil & Gas Sector:
Academia-Industry Interface
&
HR Policies
UNESCO- Ranking for India in Education Development Index
105 (out of 137 countries)
Completion of school education
10% ( against 85% in dev. Countries)
Access to higher education 6-7% ( against 50-80% in dev. Countries)
Labour participation Rate 62% ( China - 82%)
Labour Productivity $6,587….( China-$9,846)
Skill Base 50% of Indian population is below 25 years
Academician’s viewpoint Universities focus should be good educationEmployability is the secondary objective
Sector Trades shorts in supply
Professionalsshort in supply
OilITI diploma holders Mechanical ITI diploma holders Electrical ITI diploma holders Civil
☯Chemical engineers☯ Electrical engineers☯ Mechanical engineers☯ Civil engineers☯ Instrumentationengineers☯ Finance professionals (CAs/MBAs)
Source:-FICCI, in its 2007 Survey, has identified Oil Sector as one of the sectors, which deserve immediate attention in terms of promoting skill development and meeting industry requirement.
- We need to ensure a correct mix of ITI/Diploma/ Degree Education institutes based on feedback from the Industry- Presently a lot of emphasis seems to be given towards creating facilities for higher education- Focus on ITI/Diploma courses has to be given to tide over the shortage of technicians in key Industry sectors- Oil Sector requiring it the most
In developing countries, onus of development lies mainly with the Government
Govt. faces predicament of multiple demands and limited resources
Govt. alone thus cant meet objectives like interface
On other hand, industry has both resources and purpose to foster interface
However, to ensure a strategic focus, government/ nodal agency needs to set the agenda and monitor the interface
Way forwards from earlier meets..Way forwards from earlier meets..
RGIPT & GERMI set-up
Petrofed Study on Workforce Sustainability and Talent Management in Indian Oil and Gas Industry-2006
Curriculum developed by DGH in association with IIT, Mumbai , IIT Kharagpur, ISM, Dhanbad,etc…
Need for setting up a vibrant coordinating agency to promote interface for the oil sector on lines of NASSCOM for the IT Sector
Facilitated by Coordinating Agency
Promote capacity building within academic institutions
Help identify and develop learning opportunities for problem-solving across industries
Eliminate existing voids such as lack of clarity on mutual expectations, lack of trust etc.
Promote applied research
Trend HR Imperative Response :ONGC
Growth in Worldwide Investment in E&P Companies
Heightened demand for E&P professionals
Innovative Sourcing Program
Growth of Service SectorPreference to Service Sector Jobs- softer and more remunerative
Creating a strong Employer Brand for the Oil Sector Companies
Sustained Employer Branding Initiatives
Misperception of Oil Industry’s attractiveness.
Fewer New Engineers joining the Oil Sector ( Ernst and Young Report -2008)
Trend HR Imperative Response :ONGC
Heightened Exploration Activity through NELP
Demand for more fresh and experienced professionals
Supporting Academia to develop talent for the Oil Sector - Structured Development Initiatives for the existing employees
Entry of MNCs and New Domestic Companies
Collaboration and Competition
Designing Comprehensive HR Policies for the JV Companies
Net Outflow of Talent to Oil Sector Companies Worldwide
Launching Major Retention Initiatives
Innovative Retention Strategies
Trend HR Imperative Response :ONGC
Compensation Controls on Indian PSUs
Net Outflow to Private Sector/MNCs operating in India offering attractive remunerations( compensation identified as a major attrition factor)
Creating an Integrated Retention Strategy which has shown some Success
9 7 57 01 0 5 2
1 2 4 5
6 3 0
IT I ( 4 2 0 0 N o s . )
E n g i n e e r i n g D e g r e eL e v e l ( 1 4 6 0 N o s )
P o ly te c h n i c s ( 1 2 4 5 N o s )
M B A ( 1 0 5 2 N o s . )
M C A ( 9 7 5 N o s . )
P h a r m a c y ( 6 3 0 N o s )
A p p li e d A r ts &C r a f ts ( 5 3 5 N o s . )
A r c h i te c tu r e ( 1 2 0 N s . )
H o te l m g m t & C a te r i n gT e c h o n o lo g y
IIT ( 7 N o s . )
IIM ( 6 N o s )
The Quality Issue: State of our ITIsThe Quality Issue: State of our ITIs
About 35% of ITIs reported under utilization of seats Basic industrial trades offered by these ITIs had no market
demand Trades offered by participating ITIs varied between 2- 38 as
against 110 government approved trades 82% of ITIs had placement servicesInadequate supplies of raw material- only 6% of expenses allocatedShortage of staff- 89% ITIs had staff strength less than the sanctioned strength70% of ITIs did not have allocated budget for staff training & development28% of the ITIs reported no industry interface 32% ITIs reported lack of appropriate supervision
TIME for EXCLUSIVE ITI s for Oil Sector Trades
8
96
85 86 88
25
0
10
20
30
40
50
60
70
80
90
100
India Korea J apan Germany Canada Mexico
Vocational Skills in India Compares Unfavorably to
other countries.
India Receives only 8% formal Vocational Training
which is very less. %
Challenges For India
Source: Efficiency training Study Report by ILO
Technical Education in India : A Technical Education in India : A ComparisonComparison
Nodal Agency to:- Maintain & Analyze Data from Academia( Courses
Details being conducted in Academia) and Industry ( Requirement of Fresh Talent –Discipline wise and Competencies required)
Coordinate with national/ global faculty and industry domain experts regarding inputs for upgradation in curricula
Collect and Analyze Data from World Energy Outlook Report/Indian Plan Data/ Hydrocarbon Vision about the long term/ short term projections for the sector
Based on Interpretation from above, prepare annual report on requirement of additional capacities from acacdemia
Coordinate with Industry and obtain requirements for collaborative research projects .Identify academic institutions best suited for taking up such research projects.
Collect , analyse and synchronise requirements from academia and industry for exchange programmes
Conduct coursewise rating assessment of courses being conducted at various academic institutions
Assess/Moderate requirements from Academia for financial support / opening up new centres for petroleum engineering/ geosciences. Forward such requirement to relevant players in the sector( upstream/ midstream/ downstream)
Facilitate student- industry interface by facilitating in identifying
The coordinating agency wou can facilitate a more planned ,structured and meaningful academic interface for the entire petroleum industry of India rather than the piecemeal initiatives taken up individual Corporates
– Historically, 70% of industry investment has been targeted at the upstream
– However, both upstream and downstream projects draw personnel from the same talent pool
Source: 2006 IEA 2006 World Energy Outlook
Courses From 2012 2017
Reservoir Engineering 250 350
Drilling 50 150
Geophysics* 150 200
Geologist** 150 150
Total (For India Demand) 600 850
Additional to Tap Global Opportunity
100 100
Total 700 950
*Geophysics – 150 per annum required from 2009
**Geologist – 100 per annum required from 2009 -2011
Source:- PwC Study for Petrofed -2006
Projected Requirement every year
• Aggressive Recruitment up 50% over the previous year
• Job Fairs for specific disciplines- Two held at the sidelines of the SPG Conference in 2006 and 2008
• Re-employment for executives and Engagement of experienced superannuated professionals as Advisors/Consultants
• Tenure Base Recruitment for Executives and Staff- Getting the buy-in of the stakeholders that even for a PSU, tenure employment is the need of the hour for E&P Companies
Sustained Internal and External Communications highlighted through success stories, have helped in creating a perception of ONGC as :-
• A major player in country’s economy in an important sector
• An ‘Integrated Major’ with a global presence with interests in sectors like Refining, Power, Alternate Energy.
• Preferred Employer amongst Corporates
Creating a Strong Employer Creating a Strong Employer BrandBrand
Not high tech or creative
Running out of oil & gas
No industry growth or advancement opportunity
Not enough jobs for graduates
PE is a narrow discipline
E&P industry has a hire & fire mentality
E&P industry is environmentally unfriendly & unpopular
Stable jobs for the future Jobs are high tech & exciting Fossil fuels will continue to play a central role
in our energy future PE is a core engineering discipline that can
handle a broad array of subsurface problems Fiscally & environmentally responsible use of
fossil fuels is our best energy option
We need to get the message out
Dick Chaney (past Halliburton CEO): “As a former member of Congress, I’m probably the only person whose image was improved by coming to the oil industry.” OTC Panel Discussion
R.D. Blue (ExxonMobil): “Our industry has an image problem that comes from lack of getting the message out.” NY TIMES, July 1, 2001
Area awarded (in Sq. Km)
Year of
award
Onland Deepwater Shallow Off
Total Cumulative (till year)
% of sedimentary basinal areas opened for exploration
Pre NELP 56624 14904 3831 75359 75359 2%
1998 NELP 1 27562 54770 86008 168340 243699 8%
2000 NELP 2 18074 118258 53171 189503 433202 14%
2001 NELP 3 22922 146405 35343 204670 637872 20%
2002 NELP 4 31155 161555 0 192710 830582 26%
2004 NELP 5 32868 103948 8364 145180 975762 31%
2006 NELP 6 56866 273291 22034 352191 1327953 42%
Re-employment of Former employees Tenure-EngagementHiring Specialists as Advisors and Consultants
World Class Training / e-learningWork associations with Global OperatorsStretch Assignments and Global exposureDual Career Ladders
Best Social Security, Retiral and Medical BenefitsGenerous welfare measuresComprehensive Education Support to wardsWork-Life Balance Avenues
Country Pay Making Decisions
ChinaPSEs have some freedom within overall guidelines
France Pay determination is decentralised
Italy Centralised Pay determination
MalaysiaPSEs have the flexibility to determine
Middle East PSEs can determine
Singapore PSEs can determine pay
United Kingdom Pay determination is decentralisedUnited States of America
PSEs can determine pay
Source: Mercer Consulting
Country Ratio of Entry Level to CEO Salary
China 1: 4
Malaysia 1: 7
Middle East 1: 10
Singapore 1: 10
United Kingdom 1: 10
United States of America 1: 7
India – Public Sector 1: 4
India – Private Sector 1: 20
Source: Mercer Consulting
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
E0 E1 E2 E3 E4 E5 E6 E7 E8 E9
Thou
sand
s
Guaranteed Salary Total Remuneration PSE Guaranteed Salary PSE Total Remuneration
Source: Mercer TRS Surveys
Bar graph – Private Sector salaries
Line graph – PSE salaries
Setting up RGIPT in association with other oil PSUs
Assisting in Govt Initiative of upgradation of ITIs by adopting few ITIs
Full Assistance in Setting up Centres of Excellence in Petroleum Studies in Andhra University ,Dibrugarh University, ETC.
Summer Trainings >1000/year
ONGCians on Academic Councils In institutes offering courses on E&P, on request
ONGC Chairs at Institutes Institutionalization and Support
R&D Projects With leading academic institutions in the country/ abroad on core E&P Themes
Industrial Tours At worksites/ Plants / Institutes/Museum
Faculty Visits & Training Material Domain Experts as visiting facultyShare information on foreign faculty
Scholarships 75 Scholarships each year to students pursuing courses in Geosciences/Pet. Engg
Compensation-5TH Biggest factor affecting attrition in 2000
Insufficient career advancement opportunitiesBetter wealth-creation opportunity elsewhereDon’t feel valued by my companyInsufficient reward or recognition
Higher salary and benefits elsewhereInsufficient development and learningInteresting, exciting people elsewhereWork not interesting or challenging enoughUnable to meet personal/family needsDon’t like the company cultureInsufficient feedback and coachingCompany’s future uncertain or threatenedChange in my career goalsLittle support for my initiativesMy supervisor is a low performerCompany has too many low performersJob causes too much stress
6967656564575755554744443838363434
(Source-Mckinsey Study-2000 of 35 Top Companies Worldwide)
Rank
Reasons for attrition Weightage
1External inequity of compensation
22%
2Limited growth opportunities
21%
3 Role stagnation 15%4 Under utilization of skills 9%5 Lack of recognition 8%6 Work life balance 6%7 Performance assessment 6%8 People Managers 5%
9Internal inequity of compensation
5%
10 Business instability 3%Source: Hewitt Study-2007