Financial rewards are the traditional way of keeping the workforce happy. However other incentives can be just as effective
First came “crew change” - the effect of skilled workers reaching retirement age simultaneously in the Gulf. Then it was immigration reforms tightening the labour market in the North Sea. HR administrators in West Africa's own offshore zones always seem to have something to worry about despite the positive effects of Local Content legislation.
Retaining existing employees is just as important as recruiting top quality in the first place. So Incentive Management has moved up the agenda as the $100 barrier for Bonny Light has been once again passed.
Incentives vs rewards
Back in the days when $75 was an OPEC objective – just two years ago – recession gave energy bosses a good reason to forget about employee incentives like flexible working hours, a better accommodation package and more annual leave. HR professionals distinguish 'incentives' to perform better from 'rewards' that are triggered by actual output, such as meeting drilling targets. Incentives drive better performance in the future. They reward discretionary effort which affects the business's bottom line, minimising physical and financial risks, keeping budgets under control and building team spirit. Nowhere is this more important than on a rig where it's the weakest link in the chain, even the time and temperature at which dinner is served, that sets the pace.
Such 'recognition incentives' are effectively self-funding with the organisation getting something back immediately on delivery, unlike the traditional bonuses which can be so long in the offing that recipients forget what they were awarded for in the first place.
Conversely cancelling any details of an established incentives plan can have an immediately negative effect on output, completely out of proportion to the theoretical savings made. This is especially true in an active oil province like the Gulf of Guinea where many employees have experienced conditions around the globe. And aren't hesitant about talking about them.
Milestone approach
An obvious action area is the 'milestone' approach, in which employees are acknowledged without fail when they reach significant stages in their length of service, pass grading levels both internally and externally recognised, perform some exceptional action (especially if it's health-and-safety or training related), make a helpful suggestion – or even celebrate the birth of a child.
Time after time recruitment professionals have noticed that it is acknowledgement of these personal achievements in an appropriate way that is just as important as something extra in the pay packet. So an excellent idea is initiating an 'employee of the month' programme, with details being circulated on the company's intranet. The actual financial cost on the wages bill can easily be kept below 2 per cent of basic pay; time and attention account for far more.
Memorable rewards
Part of the reasoning for this comes from HR fieldwork overseas where what successful employees actually did with their bonuses – the traditional form of reward – has been laboriously tracked. Most spend the extra cash on household bills like mains power or credit on the cellphone. A few weeks later one in five can't remember what they did with it. Only about one in ten or so actually go out and treat themselves or loved ones to something memorable. This is why voucher schemes and gift cards are so popular in the industrialised countries.
Only in SA is this very sophisticated industry with its various types of 'loops' (prescribing how coupons can be exchanged) well established, although with the growing popularity of net-based mail order and the ready availability of call time and handset upgrades it could easily take root elsewhere.
Team incentives
There's another plus to be unearthed. Research has shown that incentives awarded on a team basis have even more effect than individual rewards, because employees are encouraged to keep an eye on what their colleagues are doing, and either step in informally when they spot something amiss, or share the experience confidentially in a weekly bulletin report or similar.
This is already established practice in the public sector where acceptable ways of eliminating the stigma of 'grassing' have been devised. Useful observations can be immediately rewarded, whether they come from shift leader or storekeeper.
The mishaps that the energy industries are prone to, whether it's blow-outs or shut-ins, illegal bunkering or petty theft, make this a difficult business for the HR professionals to make their mark in. So the industry continues to have difficulty attracting the skilled workforce it needs, and needs to replace in line with fast-moving national legislation.
Companies operating in all Africa's oil and gas basins need abundant highly skilled workers to meet coming challenges, so devising a realistic incentive scheme that is adapted to the special problems of this activity is an excellent way of keeping talent away from the drain.
