Benchmarking Compensation in the Energy Industry
A critical component for the human resources (HR) function is to help management align the organization with the business process.
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About Training
A critical component for the human resources (HR) function is to help management align the organization with the business process. This means defining the size and shape of the organization, identifying jobs, job content, and the required number of positions for each job. Talent acquisition involves attracting people with the competencies necessary to do the various jobs. In order to fill the organization with the best possible workforce, the compensation function is critical for valuing each and every job/position for budget planning; for determining with management where the company wishes to position itself in the competitive market; for developing the total compensation package necessary to attract, motivate, and retain top talent; for linking additional pay to assessment of performance at the organizational, unit, and individual level.
This compensation workshop is designed at the intermediate level for human resources professionals. Attendees will actively participate in discussions pertaining to the organization philosophy, why compensation management is important to the organization and also to management of the workforce assigned to that organization. There will be special emphasis on benchmarking, i.e. identifying the competitive market and analyzing market data to establish the company’s competitive position. Additionally, the group will take a close look at the link between compensation and performance management.
This workshop is very much a series of working meetings both for attendees and the instructor. At the heart of these five days will be a case study which represents the process involved in developing a pay policy:
- Internal equity versus external competitiveness (benchmarking)
- Building a basic salary structure by applying market data (external competitiveness) and the job hierarchy (internal equity)
- Incorporate performance management with salary structure to develop a merit pay system
- Incorporate allowances and other benefits
- Connect annual bonuses to performance management
Training Objectives
- Align the company’s business processes and plan to the compensation program
- Design job evaluation methods relevant to different organizations
- Learn to design a basic salary structure
- Develop SMART objectives and identify performance factors
- Know how to design short and long-term incentive bonus programs
- Apply quantitative methods to compensation analysis and design
- Learn how to design a merit increase program
Audiences
- HR managers
- Total Rewards Managers
- Compensation Managers
- Compensation Specialists/Executives
- Benefits and Payroll Managers
- Business Unit heads with responsibility for Compensation & Benefits
- Human Resources Professionals involved in recruiting and human resources planning
Instructor
John Douglass
John has become known as a high-energy executive with many years of HR experience worldwide. In recent years he has been employed by Mideast organizations where he has contributed significantly to the development of domestic and international compensation and benefits programs, performance management, leadership and succession planning, and manpower analysis and planning. He complements this expertise with an understanding of the language, culture, and religions in the Mideast region and has consistently taken a big picture, strategic approach throughout his career. In all of his assignments he has mentored, coached, and trained less experienced HR professionals - local national talent in recent years - both one-on-one and in workshop settings.
While he has demonstrated strength in most HR areas, John has special expertise in compensation, performance, and rewards as follows:
• Organization analysis; span of control; career pathing; valuation
• Job analysis and evaluation; basic pay structure policy; Hay System Guide Charts
• Performance management; competencies as performance factors; goal-setting
• Incentive bonus plans
• Employee medical coverage plans; using underwriting techniques to project medical care costs; requesting and analyzing insurance proposals; proposing partial self-funding schemes with re-insurance
• Participating in and analyzing market surveys
• Using international transfer-costing to develop pay policy for expatriates
In recent years, while employed by the Tatweer Petroleum Company in Bahrain, he served as Head/Compensation & Benefits and partnered in the building of HR programs for this newly-formed joint venture. Prior to that he was employed by Saudi Basic Industries Corporation (SABIC) in Riyadh, Saudi Arabia, where he was an advisor and consultant to senior management at the corporate headquarters and also to the presidents of 17 affiliate companies. While assigned to SABIC’s corporate Performance & Rewards unit, he led a team of talented Saudis in the development of competency-based career ladders for engineers and R&D scientists. He has added to his impressive HR portfolio the competency development process and its application to compensation schemes, individual/ group development planning, and learning management systems. As Vice-President/Human Resources with the Arab Banking Corporation in New York City (ABC/NY) during the 1990s, he developed basic pay policy through use of his Hay System expertise, as well as performance management, incentive compensation, and healthcare management programs. He has have lived and worked in nine countries around the world and traveled to many others.
Daily Aims
- Designing an effective job description format for different job levels
- Writing brief, clear job descriptions that contain the required information
Market-based Job Evaluation Methods
Non-quantitative Job Evaluation Methods
Quantitative Job Evaluation Methods
Selection and Implementation Issues
Exercise: Establish job ranking using
non-quantitative method - attendees
will rank a sample set of Oil & Gas jobs
Exercise: Establish job ranking using
quantitative point factor method - another
larger set of jobs will be provided
DAY 2
Quantitative Methods
Percents and Related Issues
Time Value of Money
Organizing and Analyzing Data (Statistics)
Displaying Relationships between Data
Modeling and Regression Analysis
Developing a Salary Budget Recommendation
- Components of a market-based salary increase budget
- Calculating competitive position
- Issues consider with recommendation
- Three alternatives for determining increases based on a given budget
- Calculate payouts for alternatives
- Calculate payouts using two variations
> Varying time between increases
Benchmarking - Determining Current Market
Position versus the Competition
- Exercise: Build a basic salary structure, combining internal equity with external competitive through use of statistical methods
- What is “broadbanding” and is it relevant to your company?
Performance Management (PM)
- Definition
- Why PM is important for the organization?
- How PM counts
- PM at organizational, group and individual levels
- PM System Design
- Keys to PM Implementation Success
> Writing SMART objectives
> Identifying and Defining Performance Factors
> Analysis of Performance Ratings
- Principals of a sound merit pay programs
- Factors affecting individual pay decisions
- Requirements for an effective merit pay program
- Development and utilization of merit increase guideline charts
- What is included in compensation costs?
- Calculate base pay program cost
- Calculate cost of other compensation programs
Four-Stage Company Market Cycle Short-Term (Annual) Incentive Bonuses Long-Term (3-5 year) Incentive Bonuses Group Exercise: break up into groups and design (1) short-term and (2) long-term incentive bonus plans
Fiscal Year Compensation and Performance Planning
Design a pay for performance plan/timeline consistent with business plan and budget planning process Communication to Management and Staff
- Defining Communication
- The Communication Process
- Best Communication Practices
- Positive Influences of Effective Communication
- Special Issues and Emerging Trends
- Brief overview of the course
- information followed by multiple choice exam to assess participants grasp of material
- Q & A - raise issue of interest
- Participants’ evaluation of course
Training Schedule
No upcoming session is scheduled yet. Send a quick inquiry and we will let you know the next date.
Why Choose This Training
Credibility
Align with API/ASME standards. Trusted by major operators.
Expert Instructors
Led by industry veterans with real field experience.
Real Case Studies
Practical application of concepts through real world scenarios.
Practical Skills
Hands on calculations and decision making for FFS outcomes.
Trusted by Operators
Delivered to Aramco, ADNOC, SABIC, and other major operators.
Global Training Standard
Recognized across major industries by PetroSync's proven approach.
Professional Training Aligned with Industry Standards
Practical, industry ready training designed for real work environments
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