Human Resource Management
Importance and Mission
Guided by moral principles, PTTEP asserts equal treatment for all employees. All are entitled to a good work environment and capability building. PTTEP also inspires and encourages employees to demonstrate their best capabilities. Following the adoption of our new vision to become the "Energy Partner of Choice" which creates shared values for all stakeholders, PTTEP sees the need to exercise EP SPIRIT corporate values to their full extent because cooperation from employees at all levels is essential in materializing the new vision.
Employees are also stakeholders who are vital in pushing the organization towards its goals. PTTEP is thus committed to supporting smart and good employees' aspirations to reach their maximum potential, to advance in their careers and to demonstrate their engagement, on realization that their concerted efforts will lead the organizations towards its goals.
Under the Energy Partner of Choice vision, PTTEP's human resource management approaches are designed to support employees who are smart, good and responsible to society as they are a vital resource in our business operations and a key mechanism in propelling organizational transformation.
Throughout 2020, PTTEP put great efforts into human resource management, especially in terms of succession planning, competency development, and rotation. The year's Key Performance Indicators (KPIs) were set by executives to ensure effective succession in key executive posts in cases of resignation or retirement. This will support business expansion and ensure suitable and sufficient competency in carrying out the Company's assignments. During 2021-2022, to efficiently achieve corporate goals, the focus will be on competency building in support of new businesses, to grow personnel competency in commercial, business and organizational transformation, digital technology, and new ways in our working areas.
New Ways of Working
In 2020, PTTEP set up a New Way of Working Taskforce consisting of representatives from various functions. The taskforce was tasked to study, analyze, and design a new way of working that corresponded with changes resulting from the COVID-19 pandemic, under the goal to achieve operational continuity, flexibility and maximum efficiency. During the trial period in 2020, continuous communications with employees were established in various activities including CEO Live Talks and online live streaming to communicate this project and other important issues to encourage employees' and management's One Team One Goal.
Work-life integration defines PTTEP's New Way of Working, to ensure employees' good health and workplace environment. Work patterns have been modified, taking into consideration assignments, requirements of office equipment and tools, data security, necessity of communications and the ratio of office-based and home-based employees. The Company also adjusted its training and capability building activities, to replace classroom-based activities with more online training or digital learning.
This New Way of Working has increased office space management efficiency and lowered rents on office and parking space, allowing PTTEP to accommodate more employees. This project has also improved employee's work-life balance, reduce CO2 emissions borne by employees' travel and especially reduce the spread of COVID-19 and infection probability for employees and their families.
Human Capital Development Policy
To enhance the capability of the organization as well as its Thai and foreign staff in preparation for expansion in Thailand and abroad, PTTEP has improved its development systems and processes by fully exercising the competency-based training and development approach under the 70:20:10 development model (70% on-the-job training, 20% coaching and mentoring, 10% formal training). These strengthened approaches are aimed at speeding up their efficiency. Development programs are as follows:
- In-House and External Training: The Company provides online and classroom training for employees and executives at all levels. Employees and executives are also given opportunities to attend the training and seminars organized by domestic and international institutions to equip them with more knowledge in technical and functional areas; and Safety, Security, Health and Environment (SSHE). They also receive training on necessary skills like digital skills and skills in foreign languages, business administration and leadership development.
- Long-term Training and Development Programs: Long-term training and development programs aim to prepare personnel for their assignments at E&P projects. The on-the-job training programs, running for 1-3 years, are in line with the Individual Development Plans (IDPs). The selected staff will be trained at the Company's sites, support joint venture companies or services companies which are based in Thailand and abroad.
- Master's Degree Scholarship Program for employees: The Company provides scholarships to employees pursuing studies at leading Thai and overseas universities in the following fields:
- Petroleum Geosciences
- Petroleum Engineering
- Drilling and Well Engineering
- Digital and Information Technology
- Business Administration
Master's degree scholarships are also extended to Thai university students, without legal binding, who study in the following fields:
- Petroleum Geosciences (International Program), Chulalongkorn University
- Petroleum Geophysics (International Program), Chiang Mai University
Executive Capacity Development
PTTEP has outlined succession plans to fill positions vacated by retirement and new positions to be created in the next 5 years under the Company's expansion plans in Thailand and abroad. The Career Review Board (CRB) Committee selects successors from each function (asset management, business development, technical support and business support) in accordance with the PTTEP Management Success Profile, which contains their competencies, personal attributes, organizational knowledge, experience, and Currently Estimated Potential. Upon receiving the list of successors, the Company designs individual short-term and long-term development plans, emphasizing the improvement of their functional knowledge, managerial skills, personality, and behavior for teamwork as guided by our corporate values and organizational culture. This is to ensure that the successors are qualified for the target positions on time of requirement. The executive capacity building programs are as follows:
1. Strong Leadership to Sustainable Organization
PTTEP has laid out plans for succession and preparation of talented personnel for executive positions. For business continuity, the current succession plan states that for the managerial positions and higher, 2 successors will be selected for each position. The successor list is reviewed on an annual basis, to prevent possible impacts following executives' retirement or resignation. The successors will then attend a Talent Management Program. In 2020, key activities were as follows:
1.1. EP-LEAD Leadership Development Program aims to equip a new generation of leaders with business management skills, foster leadership, establish executive networking, and incentivize talents in those who pursue career advancement. In 2020, 33 employees enrolled in the EP-LEAD I program ahead of their appointment as section managers. The course outline, training programs and related activities were designed to reflect the current situation.
2. Continuous Executive Competency Development for New Business Contexts
PTTEP has continuously organized training programs every year, to ensure that executives have the right knowledge and capabilities in driving the Company's vision, mission and corporate values as expected and in helping the Company's transformation. The activities organized in 2020 were as follows:
Adaptive Leadership Competency involves 15 aspects of vital skills for new generation executives, covering four main areas, namely Navigate, Empathize, Self-Correct, and Win-Win. In 2019, executives were informed about the need for these competencies and training courses were designed to achieve their goas. The first courses are related to 'Empathize', focusing on the development of leadership in management and team management. Training courses organized in 2020 are listed below:
- Situational Leadership focuses on developing participants' understanding in situational management methods and appropriate handling of subordinates within circumstances. The course provides personnel with opportunities to increase their management competency by exploring individual leadership styles and methods to instill confidence within the team. In 2020, a total of 21 executives enrolled in this course.
- Storytelling for Leaders focuses on developing executive's advanced communication skills, to stimulate, allure and inspire through telling stories. With stories, they are supposed to persuade listeners to change their behaviors and act in line with organizational expectations. In 2020, a total of 21 executives enrolled in this course.
Moreover, PTTEP added digital and technology training courses to enhance the executive's competency amid the changes of technology.
- PTTEP Digital Booster, a new course introduced within the context of changing technology, focuses on comprehension of the role technology plays in business strategy planning amid rapid technological changes. PTTEP expects to overcome digital disruptions and achieve business continuity and stability. Key topics in the course cover digital transformation for the E&P business, data analysis, machine learning and AI, etc. The course was first organized in November 2019 and resumed in August 2020 after the unwinding of the Covid-19 pandemic. In 2019 and 2020, a total of 60 executives enrolled in this course.
- Columbus Mindset: How to Reemerge from Crisis Faster, Stronger and Better is aimed at preparing executives for changes and adopting the mindset that there are opportunities in any crisis. The executives are expected to be ready in stimulating and supporting their teams towards organizational transformation. The course was organized in a virtual classroom setting to reflect transformation of the digital age and respond to the New Way of Working. In 2020, a total of 25 executives enrolled in this course.
In 2020, an online assessment was applied with leadership evaluation. The in-depth assessment investigated individual character, behavioral patterns, aptitude, and individual preferences through various tools and methods including role plays, interviews by specialists, and personality tests. The test results were used in the development of individual development plans for further use in the designing of each executive's training and in the assignment process.
2.2. PTT Group Leadership Development Program (GLDP) selects executives for leadership training programs organized by PTT Group and government agencies' programs to establish networking. GLDP postponed its courses due to the Covid-19 pandemic. Some government agencies' programs resumed in September when the situation improved. In 2020, a total of 7 executives joined these programs organized by the following institutions:
- Ministry of Energy: The Executive Program in Energy Literacy for a Sustainable Future (TEA), Executive Energy Management
- Thailand National Defense College: National Defense Course (NDC)
- Royal Thai Navy: Naval College Course (RTN)
- National Institute of Development Administration: Advanced Master of Management (AMM)
- Thailand Digital Government Academy: e-Government Executive Program (e-GEP)
- Thailand Digital Government Academy: Digital Transformation Program (DTP)
Employee Competency Development
1. Competency Development to Support Business Growth
In 2020, PTTEP proceeded with competency improvement in petroleum exploration and production, to prepare for increased competition and business expansion. In order to become the Energy Partner of Choice, PTTEP emphasized 'Exploration Success' to boost competency in petroleum exploration and 'Joint Venture Management'. The acquisition of Murphy Oil Corporation in Malaysia gave an opportunity to include capabilities in deep-water operations, as the only deep-water operation for such a program is at the MD-7 project in Myanmar. Meanwhile, the Company has continued searching for qualified persons to work in the fields in which it lacks expertise.
2. Capability Development and Competency Review amid Transformation
PTTEP initiated its Transformation Project in 2018 to prepare the organization for rapid changes. The Company is fully aware that employees' attitudes are one of the most vital factors in propelling the organization towards change and sustainability. Warp Camp was launched as a campaign to promote positive thinking and positive attitudes towards changes. It also aimed to promote understanding and acceptance of others' differences, in order to ensure efficient teamwork. The Digital Academy was launched during the year, to develop digital skills and digital literacy for a new work environment. This followed the requirement that employees needed to possess new soft skills, and needed to be able to apply new technology in their work as well as to collaborate efficiently with other employees or outsiders. Two of the launched courses were Design Thinking Workshop and Agile Ways of Working. Meanwhile, Delighting Me and Growth Mindset were the courses that aimed to reshape employees' thinking and behaviors in line with corporate culture, for sustainable transformation. In 2020, a total of 213 employees participated in the courses.
Amid the Covid-19 pandemic, the Company continually implemented employee competency development. Courses were reformatted to fit the situation, making use of digital tools like podcasting and virtual classroom instead of traditional classrooms. Emphasis was placed on the monitoring and evaluation of each course on a regular basis to ensure successful competency improvement as planned.
Organizational Capability Development
PTTEP has carried out online Key Performance Indicators (KPIs) assessment or Performance Development Appraisals (PDAs) on an annual basis. All employees and executives are evaluated based on the schedules and methods set by the Company. Since 2010, the annual evaluation on employee skills has been exercised through the Company's Intelligent Competency Management System (iCMS), a web-based system. The skill evaluation varies according to each employee's Job Competency Profile (JCP), to determine if they have the right skills for their assignments. Results are used in improving Individual Competency Development Plans (ICDPs) which are based on the 70:20:10 development model. To address the organization's needs, development plans will be guided chiefly by the Company's business strategies.
The 360-degree evaluation system is also exercised to be used to evaluate employee behaviors in response to the EP SPIRIT corporate values (Explorer, Passion, Synergy, Performance Excellence, Innovation, Responsibility for Society, Integrity and Ethics, Trust and Respect). This evaluation allows the evaluated a comprehensive view on themselves and where self-improvement should start. The evaluation criteria and content has been reviewed for clarity and to reflect the current level of EP SPIRIT and behaviors that will drive organizational change.
Local Employment Policy
PTTEP promotes the hiring of local workers wherever it operates, to create jobs, increase the locals' revenue and improve their quality of life. Aside from job opportunities, PTTEP provides competency development and transfers knowledge to local workers, so that they possess sufficient skills, knowledge and capability for their current jobs and enjoy capability building before replacing expatriates in the future. This policy paves way for PTTEP's sustainable growth and concurrently supports economic and social development in the respective countries where PTTEP operates.
Talent Attraction and Retention
Out of recognition of the increasing proportion of Generation Y and Generation Z population in the labor market, PTTEP created its Digital Center of Excellence (DCoE) to propel PTTEP into the digital age. The human resource management strategy has also been reshaped to better correspond to the new generations' way of life. In 2019, the Company adopted "WeConnect", an application developed on the SAP-SuccessFactors platform that facilitates HR management services. Employees can access the Company's information and activities via mobile gadgets no matter whether they are in Thailand or abroad. (The proportion of employees in different age groups appears in Human Resource Performance Data.)
In order to attract new generations who will promote the organization's image in the Digital Age, our recruitment approach has been adjusted. Social media platforms have been used as job announcement channels aside from the Company's website, to reach out to new generations. Open positions are now announced on Facebook's PTTEP Career Page, for instance. The Company also developed an online game to feed corporate information to the interested as well as test the compatibility of applicants'' skills and behaviours with corporate culture before they submit job applications.
PTTEP emphasizes digital technology applications, work processes and its corporate culture, to stay competitive in light of abrupt and constant changes. Under the New Way of Working Policy, work environments have been changed to suit the lifestyle of young generations, working remotely or office-based, and fit their job descriptions. Information technology has been used to improve work efficiency and interactions, allowing employees to work from anywhere. Flexible hours have been exercised, while casual dress is allowed on Casual Fridays. The co-working space concept has been adopted: employees enjoy comforts in a creative and modern central areas that stimulate experience exchanges and innovative thinking.
SuccessFactors systems in the Cloud have been used to serve human resource management. Data is pulled to one place, thus facilitating analysis and activities designed upon the data. Employees can access the information through web browsers, without the need to connect with the Company's network.
PTTEP has additionally organized activities to increase employee engagement and incorporate the EP SPIRIT corporate values into daily work life. The definition of desirable behaviors according to EP SPIRIT were improved, to align with digital transition and the New Way of Working Policy. A total of 240 employees from 52 departments have been selected as EP SPIRIT Transformers, to promote EP SPIRIT through communications and activities. These activities have received full support from executives at all levels and create a positive working environment. The activities include top executives' talks through channels on the importance of human resources and a training camp on EP SPIRIT for executives and employees to ensure streamlined practices throughout the organization. The instilling of EP SPIRIT in staff at overseas offices is also highlighted. For example, the EP SPIRIT instilling plan is being replicated at acquired companies overseas, like the one in Malaysia. In Myanmar, PTTEP is proceeding with instilling the Company's EP SPIRIT, to further promote desirable behaviors.
PTTEP conducts its Employee Engagement Survey every 2 years, to secure time for the consideration of policies and various improvements to be consistent with the survey results. In the 2020 survey, employee engagement showed a significant increase from the previous survey. (Employee engagement information appears in Human Resource Performance Data.)
1. Executive and employee Remuneration
The CEO and President's remuneration is appropriately set under clear and transparent criteria. The Nominating and Remuneration Committee is tasked to determine the CEO's remuneration, short and long term, before seeking the Board's approval. The remuneration is based on the CEO's performance, the Company's financial results, the sum offered by listed companies of the same size and in the same industry, duties and responsibilities and the overall economic situation.
- The ratio of CEO and President's remuneration to top executives' average remuneration is approximately 1.6:1
- The ratio of CEO and President's remuneration to employees' average remuneration is approximately 11.42:1
- The ratio of executives' remuneration to employees' average remuneration is approximately 7.7:1
PTTEP adopts a variable bonus payment set in consistency with the Company's performance and individual executive performance, as executive-level employees play a key role in achieving the organization's business objectives and accomplishing the specified KPIs. More information on executives' remunerations and annual bonus payments appear in Human Resource Performance Data.
PTTEP offers competitive pay levels and benefits compared to those of leading organizations in the countries where the Company operates. PTTEP also promotes equitable compensations. To prevent discrimination based on sex, race, or nationality, PTTEP has put in place a single salary structure whereby male and female employees at the same job level enjoy similar salaries. However, their pay levels may differ based on their education, work experience and performance. There are 3 criteria in setting remunerations.
- Internal equality: taking into account the similarities in individual performance, responsibility, and job conditions.
- Inter-organizational equality: taking into account comparative remunerations offered by other leading energy companies in the countries where the Company operates, when setting the remunerations for employees in those countries.
- Incentive provision: remunerations are based on individual performance and paid through annual salary adjustments and annual bonuses (if any).
PTTEP also provides benefits and other assistance to employees, including medical expenses, loans at a special interest rate, partial contributions to cover employees' monthly mortgages, scholarships for employees' children and a retirement preparation program.
PTTEP believes that human resources are one of the keys to success. Efforts have thus been made to systemize human resource management, ensure equitable treatment, and promote the improvement of all employees' competency through its Competency Management System (CMS) and Performance Management System (PMS). PTTEP supports a work-life balance. And to promote employee engagement, PTTEP focuses on a two-way communication to hear employees' opinions and use them in continuously improving work processes, work environment, and welfare.
PTTEP operates with respect to human rights in every country it has established a presence. As a participant of the United Nations Global Compact (UNGC), PTTEP discloses its practices, human rights promotion and impacts on stakeholders. PTTEP supports the Universal Declaration of Human Rights (UNUDHR) and the International Labor Organization's Declaration on Fundamental Principles and Rights at Work. Following these guidelines, PTTEP ensures equitable treatment of employees, without discrimination on the basis of ethnicity, race, sex, age, skin color, religion, disability, or others factors not related to work. Employees enjoy fair employment and fair career advancement. They are protected against threats or privacy violations by executives, colleagues, or others. PTTEP ensures strict compliance with the labor laws enforced by every country in which we operate. In Thailand, a Welfare Committee was established, comprising 8 executive representatives and 22 employee representatives from work sites which represented 93% of total employees. The committee convenes every 2 months, to discuss labor-related issues that cover compensation, welfare, human resource management and labor rights. In 2020, the Welfare Committee convened 6 meetings where 48 issues were discussed, including those concerning compensation, welfare, benefits, and opportunities for career advancement.
Additional information on human rights is on our Human Rights website. Human Rights website.