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Oil & Gas Sector: Academia-Industry Interface & HR Policies. Academia-Industry Brainstorm Session 17 th October, 2008. Dr.A.K.Balyan, Director(HR), ONGC. Presentation Sequence. Macro Indian Education & Employability Scenario. Oil & Gas Sector : Industry Academia Interface Concerns.

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slide1

Oil & Gas Sector:

Academia-Industry Interface

&

HR Policies

Academia-Industry Brainstorm Session

17th October, 2008

Dr.A.K.Balyan,

Director(HR), ONGC

oil gas sector industry academia interface concerns
Oil & Gas Sector : Industry Academia Interface Concerns
  • Skill Shortages
  • Skill Mismatch
  • Quality and Focus in Education
  • Absence of a structured interface
sector with major skill shortages
Sector with Major Skill Shortages

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.

skill mismatch oil gas sector academic qualifications vs oil industry requirements

Petroleum Engineering

  • Chemical Engineering
  • Civil Engineering
  • Mechanical Engineering
  • Electrical Engineering
  • Electronics Engineering
  • Instrumentation Engg.

Production Engineer

Drilling Engineer

Cementing Engineer

Well Engineer

Maintenance Engg.

Engineering

  • MSc(Geology)
  • MSc(Geophysics)
  • MSc(Physics+Elex.)
  • MSc(Botany+Geology)
  • MSc(Chemistry)
  • MSc(Mathematics)
  • Petroleum Engineering
  • Chemical Engineering

Geoscientist

Petrophysicist

Reservoir Engineer

Geo Chemist

Field Chemist

Geosciences

Skill Mismatch : Oil & Gas SectorAcademic Qualifications Vs. Oil Industry Requirements
the focus issue balance the pyramid
The Focus Issue-Balance the Pyramid
  • - 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
rationale for interface
Rationale for Interface
  • 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
slide9

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…
oil sector academia industry structured interface model
Oil Sector Academia-Industry Structured Interface Model

Facilitated by Coordinating Agency

Need for setting up a vibrant coordinating agency to promote interface for the oil sector on lines of NASSCOM for the IT Sector

mutual benefits of structured interface
Mutual Benefits of Structured Interface
  • 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
critical talent trends shaping hr practices oil gassector
Critical Talent Trends Shaping HR Practices :Oil & GasSector
  • Global Trends
  • Indian Oil and Gas Sector Trends
  • Challenges for NoCs
slide19

The 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 services
  • Inadequate supplies of raw material- only 6% of expenses allocated
  • Shortage of staff- 89% ITIs had staff strength less than the sanctioned strength
  • 70% of ITIs did not have allocated budget for staff training & development
  • 28% of the ITIs reported no industry interface
  • 32% ITIs reported lack of appropriate supervision
  • TIME for EXCLUSIVE ITI s for Oil Sector Trades
slide20

Technical Education in India : A Comparison

  • Challenges For India

Vocational Skills in India Compares Unfavorably to other countries.

India Receives only 8% formal Vocational Training which is very less.

%

Source: Efficiency training Study Report by ILO

the oil sector structured interface roadmap
The Oil Sector Structured Interface Roadmap

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
the oil sector structured interface roadmap1
The Oil Sector Structured Interface Roadmap
  • 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

oil industry worldwide investment
Oil Industry :Worldwide Investment

250

  • 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

entry level talent india
Entry Level Talent : India

Projected Requirement every year

*Geophysics – 150 per annum required from 2009

**Geologist – 100 per annum required from 2009 -2011

Source:- PwC Study for Petrofed -2006

innovative sourcing
Innovative Sourcing
  • 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
slide26

Creating a Strong Employer Brand

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
oil industry misperceptions
Oil Industry-Misperceptions
  • 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
reality
Reality
  • 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

image problem
Image Problem
  • 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
functional excellence and business leadership
Functional Excellence and Business Leadership

Super Unnati Prayas

Multi-skilling ITI Certification Courses

successful retention strategies
Successful Retention Strategies
  • World Class Training /
  • e-learning
  • Work associations with Global Operators
  • Stretch Assignments and Global exposure
  • Dual Career Ladders
  • Re-employment of Former employees
  • Tenure-Engagement
  • Hiring Specialists as Advisors and Consultants
  • Best Social Security, Retiral and Medical Benefits
  • Generous welfare measures
  • Comprehensive Education Support to wards
  • Work-Life Balance Avenues
competitiveness of pse salaries oil and gas sector
Competitiveness of PSE salariesOil and Gas Sector

Bar graph – Private Sector salaries

Line graph – PSE salaries

Source: Mercer TRS Surveys

slide37

Compensation-5TH Biggest factor affecting

attrition in 2000

Insufficient career advancement opportunities

Better wealth-creation opportunity elsewhere

Don’t feel valued by my company

Insufficient reward or recognition

Higher salary and benefits elsewhere

Insufficient development and learning

Interesting, exciting people elsewhere

Work not interesting or challenging enough

Unable to meet personal/family needs

Don’t like the company culture

Insufficient feedback and coaching

Company’s future uncertain or threatened

Change in my career goals

Little support for my initiatives

My supervisor is a low performer

Company has too many low performers

Job causes too much stress

69

67

65

65

64

57

57

55

55

47

44

44

38

38

36

34

34

(Source-Mckinsey Study-2000 of 35 Top Companies Worldwide)