BP 2011 Annual Report Download - page 75

Business review: BP in more depth
BP Annual Report and Form 20-F 2011 73
Business review
resources such as drinking water and public health improvements. We
work with local authorities, community groups and specialists to deliver
these community programmes.
We use our technical knowledge and global reach where relevant to
support national and regional governments in their efforts to develop their
economies sustainably and provide public resources such as education
and health. As well as country-specific projects, we support more general
initiatives, including the Oxford Centre for the Analysis of Resource-Rich
Economies, which studies how countries that are rich in natural resources
such as oil and gas can use their resources for successful development
rather than falling prey to mismanagement, corruption or other pitfalls.
Our direct spending on community programmes in 2011 was
$103.7 million, which included contributions of $37.5 million in the US,
$27.0 million in the UK (including $7.2 million to UK charities, of which
$2.5 million for arts and culture, $2.8 million for enterprise development,
$1.6 million for education), $2.6 million in other European countries and
$36.6 million in the rest of the world. These reported amounts exclude
social bonuses paid by BP to governments as part of licence acquisition
costs and which have been capitalised as intangible assets on the group
balance sheet. In such cases the group has no direct oversight of the
expenditure. Contributions relating to economic recovery following the
Deepwater Horizon oil spill are also excluded, see page 77 for details of
these contributions.
Employees
Number of employees at 31 December US Non-US Total
2011
Exploration and Production 8,900 13,300 22,200
Refining and Marketinga12,000 39,000 51,000
Other business and corporate 1,900 8,200 10,100
Gulf Coast Restoration Organization 100 –100
22,900 60,500 83,400
2010
Exploration and Production 7,900 13,200 21,100
Refining and Marketinga12,400 39,900 52,300
Other business and corporate 1,700 4,500 6,200
Gulf Coast Restoration Organization 100 –100
22,100 57,600 79,700
2009
Exploration and Production 8,000 13,500 21,500
Refining and Marketinga12,700 38,900 51,600
Other business and corporate 2,100 5,100 7,200
22,800 57,500 80,300
a Includes 14,600 (2010 15,200 and 2009 13,900) service station staff, all of whom are non-US.
To be sustainable as a business, BP needs employees who have the
right skills for their roles and who understand the values and expected
behaviours that guide everything we do as a group.
We have reviewed the way we express BP’s values and required
behaviours with the goal of ensuring they support our aspirations for
the future, align explicitly with our code of conduct and translate into
responsible actions in the work we do every day. We conducted a
programme in 2011 to renew employee awareness of our values and the
behaviours as we work to reset our priorities as a company. See bp.com/
values for more information.
We had approximately 83,400 employees at 31 December 2011,
compared with approximately 79,700 a year ago. During 2011, our
headcount has been most significantly affected by both external hiring in
order to build capability and acquisition and divestment activity as part of
the strategy to re-shape the business.
The group people committee, chaired by the group chief executive,
continues to take overall responsibility for key policy decisions relating to
employees. In 2011, some of the key subjects discussed were longer-term
people priorities; the design and implementation of a new reward model;
our ambition on diversity and inclusion and a review of the governance of
our learning programmes.
Our priorities for managing our people focus on ensuring the safety
of our employees, strengthening capability, developing the potential of our
own people, increasing diversity and inclusion and retaining the best people
by motivating and engaging them.
Strengthening capability
The increasing demand for energy products and the complexity of our
projects means that attracting and retaining skilled and talented people is
vital to BP’s delivery of its strategy and plans.
In support of this, the group chief executive and each member
of the executive team hold regular review meetings to ensure that
appropriate plans to build capability are in place and that a rigorous and
consistent succession process is followed for all group leadership roles.
To supplement our existing internal capability, we also target
experienced and skilled professionals in the external market and are
continuing to increase our intake of graduates to create a strong internal
talent pipeline for the future.
We conduct external assessments for all new hires into BP at
senior levels and for internal promotions to senior level and group leader
level roles. These assessments ensure rigour and objectivity in our
hiring and talent processes. They give an in-depth analysis of leadership
behaviours, intellectual capacity and the required experience and skills for
the role in question.
Our ongoing three-year graduate development programme
continued in 2011. It currently has about 1,600 participants from all over
the world.
Developing our people
We provide development opportunities for all our employees, including
external and on-the-job training, international assignments, mentoring,
team development days, workshops, seminars and online learning. We
encourage all employees to take at least five training days per year.
We continue to work to embed appropriate leadership behaviours
throughout our organization. In 2011, we delivered a new group leader
development programme, designed to help our most senior leaders apply
BP’s required leadership behaviours in their work. The first phase of the
programme has now been completed with about half the group leader
population having undertaken eight days of intensive training. We are
refreshing the content and will start the next phase in 2012.
Our group-wide suite of management development programmes,
Managing Essentials, has now run in 41 countries, with around 32,400
participants.
Meeting the expectations of our people
We have reviewed our reward strategy, including how the group
incentivizes business performance, with the aim of encouraging excellence
in safety, compliance and operational risk management. Our revised
performance management framework was implemented in 2011.
We encourage employee share ownership. For example, through
the ShareMatch plan run in around 50 countries, we match BP shares
purchased by our employees.
We aim to treat employees affected by mergers, acquisitions
and joint ventures fairly and with respect, through open and regular
communication. As part of the divestment programme following the Gulf
of Mexico oil spill, BP has been seeking the same or comparable pay and
benefits for employees transferring to other companies.
Diversity and inclusion
We are a global company and aim for a workforce that is representative of
the societies in which we operate. We work to attract, motivate, develop
and retain the best talent from the diversity the world offers – our ability
to be competitive and to thrive globally depends on it. We believe success
comes from the energy of our people.
Through living our values of safety, respect, excellence, courage
and one team, we create an inclusive working environment where
everyone can make a difference and give their best. Our work on diversity
and inclusion is overseen by the group people committee who review