Recruiting and Retention

1. Recruiting and Retention Managing the Human Capital

2. Team Members • Steve Cutrufello - ExxonMobil • Matthew Czuba – WorleyParsons • Santanu Das - Bentley • Ron Dailey – Eastman • Bruce Lower – Pathfinder Inc. • Adnan Siddiqui – Dow Chemical

3. Panelist CV • Matt Czuba • Matt’s petrochemical experience includes both contractor and owner experience. As an owner, he has held positions ranging from development engineer in polymers to applications/ development manager to pilot plants manager. As a contractor, Matt has executed both upstream and downstream projects, both at home and abroad, functioning as a project engineer, project manager, and currently as Alliance Manager for the EPC capital projects alliance between WorleyParsons and ExxonMobil for all of ExxonMobil’s Beaumont, Texas facilities. Matt resides in the Lumberton, Texas with his wife Pamela and their family.

4. Panelist CV • Ron Dailey • Ron Dailey currently serves as a capital project manager for Eastman Chemical Company's Polymer Business Group.  In his 12 years with Eastman, Ron has served in various roles including solids handling designer, group leader for the Mechanical, Materials & Utilities process design group, and indirect procurement manager with supervisory responsibilities for capital and Latin America.  Ron has been involved in many high school and collegiate recruiting efforts for both Eastman and engineering in general. Ron received his B.M.E. from Georgia Tech in 1994 and is professionally licensed in TN, VA, PA and SC.  He and his wife Carrington reside in Johnson City, TN with their daughter Kensington.

5. Panelist CV • Adnan Siddiqui • Adnan Siddiqui is a Senior Project Engineer on major capital projects with The Dow Chemical Company. Adnan previous roles have been: plant project engineer and construction manager. Adnan has worked on projects in North America and China. Adnan has a Bachelor’s and Master’s degree in Civil Engineering from The University of Texas at Austin. Adnan lives in Houston, TX.

6. Why the Focus on Recruiting and Retention • Estimates for this decade (2000-2010) for engineers indicate • Employment rate expected to increase three times faster than the rate for all occupations • Employment opportunities expected to increase by about 47 % (2.2 million jobs) • Demographics of the existing engineering workforce changing rapidly • U.S. engineering labor force is aging • Engineers reaching traditional retirement age are expected to triple

7. Why the Focus on Recruiting and Retention • Jobs requiring engineering skills (U.S.) are growing almost 5% per year • Balance of the labour force growing at just over 1% • Average age of the engineering workforce is rising • The “Boomers” will retire in the near future • Unemployment is relatively low • National average approximately 4.5% • Engineering average under 3%

8. Recruiting and Retention Aspects • Attracting freshmen to engineering • Attracting engineers to E & C careers • Retaining employees in E & C careers

9. Attracting freshman to engineering (before and after) • High School “interest” support • Engineering Week participation • Mentoring from local engineering businesses • Sponsorships of school programs/challenges • “A day in the life of an engineer” at the E & C office

10. Attracting engineers to E & C careers • On campus presence • Career fairs, presentations to student organizations, on-campus job interviews, etc. • Co-op programs • Recurring program • Longer term commitment • Generally seen as most effective • Aggressive internship programs • Allows the employer and intern to take a short "test drive" • Often highly effective

11. Attracting engineers to E & C careers • Social program of activities for co-ops/interns • Tuition reimbursement • Last year (or two) of undergraduate studies • Advanced degree after hiring on full-time • Use of “twenty-somethings” (<5 years experience) • Campus recruiters • Hosts during interview visits • Working with the university curricula • Blend in “real world problems” or “case studies” • Sponsor/assist design classes

12. Attracting engineers to E & C careers • Extremely competitive salary and benefits package • Must be based on real-time market research • Educational initiatives • Involvement with math & science programs in the local schools • Share what is going on at the company • Idealistic

13. Attracting engineers to E & C careers • Proactive campus recruiting strategy is critical • Timeline equally important • Career fairs and presentations to engineering departments in early fall semester • Campus interviews follow (September / October) • Site interviews follow campus interviews within two weeks • Spot offers made during the site interviews • Continual and regular follow-up • Should include contact from senior management

14. Attracting engineers to E & C careers • Mastering the hiring process is crucial • Continuously sell the company and the opportunity • Focus areas for engineers • Technical complexity of the position or challenge • Stability of the company • Growth opportunity • In today’s aggressive market, even small mistakes hurt • Dwelling on the potential negatives without highlighting the positives • Poor communication • Slow Process • A slow hiring process can be especially hard to overcome

15. Retaining employees in E&C careers SOURCE: Chemical Processing 2006 Salary Survey

16. Retaining employees in E&C careers

17. Retaining employees in E & C careers • What matters most? • Out of 736 respondents1, almost 60 percent claim it’s what the job entails • Only 19 percent were most concerned with pay 1Survey by EPCglobal, an international recruitment and staffing-solutions firm focused solely on the engineering and construction industries

18. Retaining employees in E & C careers • Other concerns • Company culture/livelihood • Benefits, such as health insurance, company car, etc. • Travel • Location • Supervisor • The opportunity to do what they do best • Stability • Challenge • Potential to gain work experience • The right fit

19. Retaining employees in E & C careers

20. Retaining employees in E & C careers

21. Retaining employees in E&C careers

22. Two-Edged Swords • High-Potential Development Programs • Minority Cultural Networks • Education reimbursement • Flex Time

23. Recruiting and Retention of Women Engineers • Flexibility is important (this is true for all employees) • Schedule / job-sharing • Leverage latest communication technology • Provide job satisfaction and challenge. • Provide effective career development opportunities. • Assume that women are equally capable and eliminate the “prove yourself” challenges • Treat women engineers as professional and not as relatives • Accept the tension between family and work for employees instead of insisting that one is always more important! • Improve listening skills of colleagues as well as managers • Use inclusive terms (craftspeople vs. craftsmen)

24. Recruiting and Retention of Women Engineers • Out-of-the-Box Ideas • Encourage society’s acceptance of stay-at-home dad’s so the engineering spouses can focus more on the career. • Have ECC spouse programs that appeal to men (fishing / running)

25. Diversity Employees Recruiting and Retention • Diversity networks work well if implemented properly as a source of coaching, support, and learning. • In addition to diversity networks, provide access to a network of experts and mentors across the board. • People skills of direct supervisor are very important.

26. Breakthrough Ideas • Provide scholarships tied to internships -- Improve company name recognition while building relationships with a quality candidate • Develop on-line "day-in-the-life" interactive tours for students to see what different roles in the EPC world do

27. Breakthrough Ideas • Allow employees to manage their risk/reward profile by defining their preferences formally with HR.  • Are you a "have bags, will travel" type, a "will travel over being laid-off" type or a "no travel, no way" type?  • Do you value developing your technical skills over developing managerial skills? • Do you value continuing education as a way to improve marketability in the event of a lay-off?

28. Breakthrough Ideas: • Undo “Re-engineering” to create more opportunities for younger workers • Benchmark practices from other industries on recruiting and retaining e.g. nursing. • The ECC industry needs to explore work place flexibility if we are truly committed to retaining generation Y and beyond employees.

29. Acknowledgements • Additional feedback and content for this presentation was obtained from E&C employees at: • Shaw Group • BP • Dow Chemical • Eastman • ExxonMobil • Bentley Systems • KBR

30. Conclusion • Money is important but so is: ! • Company culture • Quality of middle management and leaders • Challenging assignments • Are you offering a job or a career?

31. Thank You