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YOU SAY YOU WANT A REVOLUTION
How is HR Evolving in Today’s Energy
Marketplace to Manage Competing Priorities?
Moderator: Cliff Caldwell COO, Ascende
Thomas Smouse VP of Administration/HR, Newfield Exploration
Elisabeth K. Evans Vice President, Human Resources, Tetra Technologies
James Tastard Vice President, Human Resources, Freeport LNG
ENERGY HR EVOLUTION
Managing Competing Priorities & Planning for the Future
TETRA Technologies, Inc.
October 29, 2015
CONFIDENTIAL – TETRA Technologies, Inc.
 TETRA Technologies at a glance
 Perspectives on Talent
 HR aligned with the business
 2015 Key Accomplishments
 Priority Initiatives
 Summary Points
For Discussion
3
CONFIDENTIAL – TETRA Technologies, Inc.
TETRA / CSI Compressco
4
Headquartered in The
Woodlands, Texas
Founded in 1981
NASDAQ: TTRA 1990
NYSE: TTI 1997
NASDAQ: CCLP
3,600 employees
worldwide
Global company with
employees and
operations on six (6)
continents
PRODUCTION
TESTING
The largest North
America production
testing company
FLUIDS SERVICES
Only vertically
integrated completion
fluids based company
for the oil & gas
market
CSI COMPRESSCO
Full service compression:
well head, gathering,
midstream, processing
and transportation
OFFSHORE
SERVICES
A leading provider of
decommissioning and
well abandonment
services in Gulf of
Mexico
CONFIDENTIAL – TETRA Technologies, Inc.
Perspective on Talent – Internal & External Challenges
5
Challenge Priority Response
Retain key talent during challenged
industry conditions, downsizing
High value employees identified globally – PDPs,
compensation considerations, broader role
scope;98% retention
Lower overall compensation costs and
create organizational efficiencies
Collapse leadership level & consolidate roles,
shared services for corporate staff functions
Newer leadership teams in most segments
and re-aligned staff functions create
uncertainty
High level of HR involvement as necessary,
enhanced corporate communications, quarterly
Town Hall business updates
Functions strained as fewer employees do
the work – burnout driving high turnover
in some areas
Process & systems improvements;
standardization and centralized support; high
grade talent when possible
Need to upgrade key functional
capabilities
Invest in targeted hires to ensure core
capabilities; some activities outsourced;
cultivate internal talent through leadership
development and broader/stretch roles
Historically, a disconnect between pay and
performance impacted our ability to
effectively incent desired behaviors
Performance goals in place for all employees.
Incentive programs overhauled with realistic
performance measures and performance culture
focus. Special achievement bonuses granted
CONFIDENTIAL – TETRA Technologies, Inc.
 High Value Employee Program
 Professional Development Plans completed, HR coaches assigned,
manager involvement
 Favorable compensation consideration & broader roles
 Leadership role consolidations
 91% of departing Sr. Leader roles either consolidated or eliminated
 CORE Employee of the Year Awards
 Rewards & Recognition Program
 Online Employee Recognition Program launched with ‘points’ rewards
 Learning Management System (LMS)
 Online library with >600 courses & custom online content
 Tracks course completions w/real time reporting
 customer certifications
 regulatory compliance
 Global Quarterly Town Hall meetings
 Update employees on business matters and serve as platform to launch
of new programs
 Talent Management System launched
 Online performance reviews and goal setting
 Recruiting and onboarding modules
2015 Accomplishments
6
CONFIDENTIAL – TETRA Technologies, Inc.
2016 Priority Initiatives
7
HR Initiatives
• Opportunistic hiring to build talent bench
• Business unit/functional capabilities
• Optimize value of recent & future acquisitions
• Focus on C-Suite & Sr. Leader coaching & development
• Online Succession Planning & Compensation Management tools launch
• Enable global talent mobility at all levels of organization
• Support planning, optimize budget and maintain compliance
• Leave administration outsourced to one vendor
• Free-up limited HR resources for business critical tasks & cost savings
• All pre-employment screening and testing consolidated under one vendor
• Compliance with customer requirements, consistency & lower expenses
CONFIDENTIAL – TETRA Technologies, Inc.
 Compared to prior period, current 12-month trailing average
turn-over has increased slightly driven largely by lay-offs
 Retention of employees designated as ‘high value’ is strong
 Role consolidations reduce headcount & create stretch
opportunities
 Sr. Leadership teams across business are relatively new
introducing employee uncertainty & rapid change
 Recent acquisition integration & efficiencies not fully achieved
 Staff function centralization appears to be producing benefits
 Functional collaboration, efficiencies, broader career paths
 Talent bench perilously shallow in parts of the business
 Selective key outside hires may be needed
 Continue improvement of internal talent development capabilities
Summary Points
8

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You Say you Want a Revolution - How is HR Evolving in Today's Energy Marketplace to Manage Competing Priorities?

  • 1. YOU SAY YOU WANT A REVOLUTION How is HR Evolving in Today’s Energy Marketplace to Manage Competing Priorities? Moderator: Cliff Caldwell COO, Ascende Thomas Smouse VP of Administration/HR, Newfield Exploration Elisabeth K. Evans Vice President, Human Resources, Tetra Technologies James Tastard Vice President, Human Resources, Freeport LNG ENERGY HR EVOLUTION Managing Competing Priorities & Planning for the Future
  • 3. CONFIDENTIAL – TETRA Technologies, Inc.  TETRA Technologies at a glance  Perspectives on Talent  HR aligned with the business  2015 Key Accomplishments  Priority Initiatives  Summary Points For Discussion 3
  • 4. CONFIDENTIAL – TETRA Technologies, Inc. TETRA / CSI Compressco 4 Headquartered in The Woodlands, Texas Founded in 1981 NASDAQ: TTRA 1990 NYSE: TTI 1997 NASDAQ: CCLP 3,600 employees worldwide Global company with employees and operations on six (6) continents PRODUCTION TESTING The largest North America production testing company FLUIDS SERVICES Only vertically integrated completion fluids based company for the oil & gas market CSI COMPRESSCO Full service compression: well head, gathering, midstream, processing and transportation OFFSHORE SERVICES A leading provider of decommissioning and well abandonment services in Gulf of Mexico
  • 5. CONFIDENTIAL – TETRA Technologies, Inc. Perspective on Talent – Internal & External Challenges 5 Challenge Priority Response Retain key talent during challenged industry conditions, downsizing High value employees identified globally – PDPs, compensation considerations, broader role scope;98% retention Lower overall compensation costs and create organizational efficiencies Collapse leadership level & consolidate roles, shared services for corporate staff functions Newer leadership teams in most segments and re-aligned staff functions create uncertainty High level of HR involvement as necessary, enhanced corporate communications, quarterly Town Hall business updates Functions strained as fewer employees do the work – burnout driving high turnover in some areas Process & systems improvements; standardization and centralized support; high grade talent when possible Need to upgrade key functional capabilities Invest in targeted hires to ensure core capabilities; some activities outsourced; cultivate internal talent through leadership development and broader/stretch roles Historically, a disconnect between pay and performance impacted our ability to effectively incent desired behaviors Performance goals in place for all employees. Incentive programs overhauled with realistic performance measures and performance culture focus. Special achievement bonuses granted
  • 6. CONFIDENTIAL – TETRA Technologies, Inc.  High Value Employee Program  Professional Development Plans completed, HR coaches assigned, manager involvement  Favorable compensation consideration & broader roles  Leadership role consolidations  91% of departing Sr. Leader roles either consolidated or eliminated  CORE Employee of the Year Awards  Rewards & Recognition Program  Online Employee Recognition Program launched with ‘points’ rewards  Learning Management System (LMS)  Online library with >600 courses & custom online content  Tracks course completions w/real time reporting  customer certifications  regulatory compliance  Global Quarterly Town Hall meetings  Update employees on business matters and serve as platform to launch of new programs  Talent Management System launched  Online performance reviews and goal setting  Recruiting and onboarding modules 2015 Accomplishments 6
  • 7. CONFIDENTIAL – TETRA Technologies, Inc. 2016 Priority Initiatives 7 HR Initiatives • Opportunistic hiring to build talent bench • Business unit/functional capabilities • Optimize value of recent & future acquisitions • Focus on C-Suite & Sr. Leader coaching & development • Online Succession Planning & Compensation Management tools launch • Enable global talent mobility at all levels of organization • Support planning, optimize budget and maintain compliance • Leave administration outsourced to one vendor • Free-up limited HR resources for business critical tasks & cost savings • All pre-employment screening and testing consolidated under one vendor • Compliance with customer requirements, consistency & lower expenses
  • 8. CONFIDENTIAL – TETRA Technologies, Inc.  Compared to prior period, current 12-month trailing average turn-over has increased slightly driven largely by lay-offs  Retention of employees designated as ‘high value’ is strong  Role consolidations reduce headcount & create stretch opportunities  Sr. Leadership teams across business are relatively new introducing employee uncertainty & rapid change  Recent acquisition integration & efficiencies not fully achieved  Staff function centralization appears to be producing benefits  Functional collaboration, efficiencies, broader career paths  Talent bench perilously shallow in parts of the business  Selective key outside hires may be needed  Continue improvement of internal talent development capabilities Summary Points 8