BP 2009 Annual Report Download - page 52

BP Annual Report and Accounts 2009
Business review
Employees
Number of employees at 31 December US Non-US Total
2009
Exploration and Production 8,000 13,500 21,500
Refining and Marketinga12,700 38,900 51,600
Other businesses and corporate 2,100 5,100 7,200
22,800 57,500 80,300
2008
Exploration and Production 7,700 13,700 21,400
Refining and Marketinga19,000 42,500 61,500
Other businesses and corporate 2,600 6,500 9,100
29,300 62,700 92,000
2007
Exploration and Production 7,800 14,000 21,800
Refining and Marketinga22,700 44,500 67,200
Other businesses and corporate 2,500 6,600 9,100
33,000 65,100 98,100
aIncludes 13,900 (2008 21,200 and 2007 24,500) service station staff.
50
People and their capabilities are fundamental to our sustainability as a
business. To build an enduring business in an increasingly complex and
competitive industry, we need people with world-class capabilities,
ranging from deepwater drilling and operating refineries to negotiating
with governments and planning wind farms.
We had approximately 80,300 employees at 31 December 2009,
compared with approximately 92,000 at 31 December 2008. This
reduction principally reflects the transfer of our convenience retail sites
to a franchise model and the progress we have made in making BP a
simpler, more efficient organization.
Our focus in 2009 has been on ensuring we have the right people
in the right roles including renewal of the group leader population. We are
seeking to promote continuous improvement by embedding the BP
leadership framework throughout the organization. This framework sets
out how BP leaders are expected to behave in delivering our strategy and
achieving sustained high performance. We are striving for deeper skills
development and continuing to align reward frameworks to promote
our desired behaviours and outcomes. Diversity and inclusion (D&I) is
an important part of all our people processes in BP and involves
acknowledging, valuing and leveraging our similarities and differences
for business success.
We have made significant progress in changing the culture of the
group to one with a stronger performance focus and which places more
value on deep specialist skills and expertise. Creating this culture has
required us to enhance our approach to performance management
at the business, team and individual level and to align performance and
reward outcomes.
We have completed the second cycle of our redesigned
performance management and reward process to ensure that there is a
direct link between performance and incentive reward. Throughout the
organization we have also achieved greater differentiation of
performance ratings and, as a result, in incentive compensation spend.
We believe this will continue to improve the performance focus of
businesses and individuals.
In managing our people, we seek to attract, develop and retain
highly talented individuals in order to maintain BP’s capability to deliver
our strategy and plans. Our three-year graduate development programme
currently has 1,400 participants from all over the world.
We are focusing on the need for deep specialist skills.
Accordingly, we have increased external hiring in infrastructure and
technical areas. The energy industry faces a shortage of professionals
such as petroleum engineers. The number of experienced workers
retiring is expected to exceed that of new graduate hires. To help address
this issue we are developing more robust resourcing plans supported by
initiatives aimed at increasing the numbers of recruits and diversifying
the sources from which we recruit. The external hiring initiatives are
supported by plans for accelerated discipline development, prioritized
deployment and retention schemes.
The continuous improvement we are making to performance
management and reward will help ensure that BP meets the
expectations of these new recruits who are highly mobile and whose
skills are in high demand.
We aim to ensure equal opportunity in recruitment, career
development, promotion, training and reward for all employees,
including those with disabilities. Where existing employees become
disabled, our policy is to provide continuing employment and training
wherever practicable.
We have revitalized our approach to D&I. In 2009, the focus
has been to re-establish D&I as a corporate priority. There is now
clear ownership by the business of D&I plans which are the direct
responsibility of the relevant SPU or function. Each SPU and function has
a D&I plan against which progress is measured. In addition the group
chief executive chairs the global D&I council. This council is supported by
a North American regional council and segment councils. We are creating
momentum which we expect will lead to sustainable progress on D&I.
The group people committee, formed in 2007, continues to take
overall responsibility for policy decisions relating to employees. In 2009,
this included senior level talent review and succession planning,
embedding of D&I plans in the businesses and the structure of long-term
incentive plans.
We continue to increase the number of local leaders and
employees in our operations so that they reflect the communities in
which we operate. For example, in Colombia, national employees now
make up 98% of BP’s team, while in Azerbaijan, the proportion is around
85%. By 2020, more than half our operations are expected to be in
non-OECD countries and we see this as an opportunity to develop
a new generation of experts and skilled employees.
At the end of 2009, 14% of our top 492 group leaders were
female and 21% came from countries other than the UK and the US.
When we started tracking the composition of our group leadership in
2000, these percentages were 9% and 14% respectively. We continue to
raise our senior leaders’ awareness of D&I, and further training is planned
in 2010.
We aim to develop our leaders internally, although we recruit
outside the group when we do not have specialist skills in-house or
when exceptional people are available. In 2009, we appointed 40 people
to positions in the group leadership population. Of these, 20 were
internal candidates.