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the<strong>HR</strong>DIRECTOR<br />

THE ONLY INDEPENDENT <strong>HR</strong> STRATEGIC PUBLICATION IN THE UK DECEMBER 07 ISSUE 42<br />

the<br />

<strong>HR</strong>DIRECTOR INTERVIEW:<br />

David Smith – People director, ASDA<br />

FORUM:<br />

ORGANISATIONAL CHANGE<br />

Br<strong>in</strong>g<strong>in</strong>g everyone with you<br />

RISK MANAGEMENT<br />

Personal safety and company survival<br />

C<strong>HR</strong>ISTMAS<br />

EMPLOYMENT ISSUES<br />

Avoid<strong>in</strong>g festive conflict<br />

H&S: ACCIDENTS AT WORK<br />

Creat<strong>in</strong>g a safety culture<br />

EMPLOYMENT TRIBUNALS<br />

Prevent<strong>in</strong>g costly claims<br />

CASE STUDIES THIS MONTH<br />

Mandy Rutter - Cl<strong>in</strong>ical manager, ICAS<br />

Richard Ward – CEO, Lloyd’s<br />

Tom White – CEO, Siemens UK<br />

BAA<br />

Baillie Gifford<br />

Birm<strong>in</strong>gham City Council<br />

Caparo Merchant Bar<br />

National Grid Wireless<br />

Production Services Network<br />

PLEASE NOTE:<br />

WE DO NOT<br />

ACCEPT ANY PAID<br />

FOR OR SPONSORED<br />

EDITORIAL<br />

Pictured: David Smith - People director, ASDA<br />

DON’T MISS NEXT MONTH’S ISSUE WHERE WE LOOK AT: FORUM – RECRUITMENT; QUALIFICATIONS;<br />

INCENTIVES & MOTIVATION; SOCIAL NETWORKING SITES …AND A SPECIAL FOCUS ON OUR EDITORIAL<br />

ADVISORY PANEL


RISK MANAGEMENT PSN CASE STUDY<br />

www.thehrdirector.com<br />

CASE STUDY<br />

<strong>HR</strong> FACES<br />

COMPLEX<br />

CHALLENGES<br />

IN HIGH-RISK<br />

ENVIRONMENT<br />

ABERDEEN-BASED PRODUCTION SERVICES NETWORK (PSN) HAS PUT TOGETHER AN <strong>HR</strong> PROGRAMME WHICH RESPONDS TO SPECIFIC<br />

CHALLENGES BY ASSESSING THE RISK TO EMPLOYEES IN ANY GIVEN SITUATION, IN CONJUNCTION WITH AN EMERGENCY PLAN TO COPE<br />

WITH EVERY EVENTUALITY, FROM WORKPLACE ACCIDENTS TO NATURAL DISASTERS.<br />

There can be few more <strong>complex</strong> <strong>challenges</strong> for the modern <strong>HR</strong><br />

executive, than those posed by ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g a constantly mov<strong>in</strong>g<br />

workforce <strong>in</strong> the <strong>high</strong>-<strong>risk</strong> environment of the oil and gas<br />

<strong>in</strong>dustry. As well as the <strong>risk</strong>s <strong>in</strong>herent <strong>in</strong> the production of <strong>high</strong>ly<br />

flammable materials, employers work<strong>in</strong>g <strong>in</strong> this sector must also<br />

negotiate the pitfalls of send<strong>in</strong>g workers <strong>in</strong>to unfamiliar and<br />

often politically sensitive, even dangerous, areas.<br />

This, comb<strong>in</strong>ed with the enactment of the UK’s new<br />

corporate manslaughter legislation, has <strong>in</strong>creased the pressures<br />

on those responsible for the safety and wellbe<strong>in</strong>g of employees.<br />

PSN, an <strong>in</strong>dependent <strong>in</strong>ternational service contractor to<br />

oil and gas production companies, is one of the top ten<br />

privately owned bus<strong>in</strong>esses <strong>in</strong> Scotland and has a global<br />

workforce of around 8,000 employees <strong>in</strong> 23 different<br />

countries. Of them, around 3,500 will, at any time, be <strong>in</strong> a<br />

situation which demands careful <strong>risk</strong> assessment and<br />

emergency plann<strong>in</strong>g.<br />

“an effective track<strong>in</strong>g system”<br />

For <strong>HR</strong> director Dean Hunter, that means ensur<strong>in</strong>g the<br />

workforce is prepared for work<strong>in</strong>g environments as diverse as<br />

Kazakhstan, sub-Saharan Africa, Vietnam and the USA.<br />

"What we have found is that it is important not<br />

only to do all the plann<strong>in</strong>g and <strong>risk</strong> assessments<br />

before the staff go to a country, but also to have an<br />

effective track<strong>in</strong>g system <strong>in</strong> place so you know where<br />

all of your people are at any given time," he says.<br />

"Once we have people <strong>in</strong> the country, we check<br />

proactively every day so we know what is happen<strong>in</strong>g,<br />

whether there are new and specific <strong>risk</strong>s and, if so, what<br />

they are.<br />

"If someth<strong>in</strong>g is flagged up to us, we can work with our<br />

clients to ensure they are always kept safe."<br />

In striv<strong>in</strong>g to ma<strong>in</strong>ta<strong>in</strong> that aspect of control and stay<br />

ahead of any potential <strong>risk</strong>s, PSN uses <strong>International</strong> <strong>SOS</strong>, the<br />

world’s lead<strong>in</strong>g provider of medical assistance, <strong>in</strong>ternational<br />

healthcare and security services.<br />

Hunter cont<strong>in</strong>ues: "We tend to work hand <strong>in</strong> hand with<br />

companies like <strong>International</strong> <strong>SOS</strong>, and use their people on<br />

the ground who know the area. That knowledge cannot be<br />

underestimated.<br />

"We have seven core values, and numbers one and two<br />

on the list are safety and people. But we also put a <strong>high</strong><br />

value on localisation.<br />

"If you are go<strong>in</strong>g to manage <strong>risk</strong> then you must have a<br />

local approach. And we avoid th<strong>in</strong>k<strong>in</strong>g that we have all the<br />

solutions for all locations, just because we have worked <strong>in</strong><br />

the North Sea for 30 years."<br />

Under the new legislation, employers will also need to<br />

have taken every reasonable and practicable step to ensure<br />

their employees’ wellbe<strong>in</strong>g and nurture a safety culture <strong>in</strong><br />

the workplace.<br />

And, accord<strong>in</strong>g to Dr Neil Nerwich, medical director<br />

of <strong>International</strong> <strong>SOS</strong>, that makes it even more important<br />

that companies like PSN have all their systems <strong>in</strong> place<br />

with all the relevant data on security and medical<br />

implications; <strong>in</strong> some cases this has to happen before an<br />

employee even takes up a role, or jo<strong>in</strong>s the company.<br />

"Before you send someone to work, or live and<br />

work, <strong>in</strong> any environment, you have to ensure that certa<strong>in</strong> key<br />

questions have been asked and answered," says Dr Nerwich.<br />

"It’s important to have a look at the site where they are<br />

work<strong>in</strong>g, the closest medical facilities and access to your<br />

32<br />

the<br />

<strong>HR</strong>DIRECTOR – DECEMBER 07


www.thehrdirector.com<br />

RISK MANAGEMENT PSN CASE STUDY<br />

own medical people on site. You also have to identify any<br />

potential difficulties and plan for them.<br />

"You have to know how you would get people out of the area<br />

if necessary, either for medical treatment or <strong>in</strong> an emergency."<br />

For all companies, there will also be different sorts of <strong>risk</strong>s to<br />

evaluate: "If, for example, you only have staff travell<strong>in</strong>g between<br />

European cities, a very different assessment is required than if you<br />

have people travell<strong>in</strong>g from Asia to West Africa and Eastern<br />

Europe," Nerwich expla<strong>in</strong>s.<br />

And, <strong>in</strong> all of these cases, the <strong>risk</strong> of staff be<strong>in</strong>g hit by crimes<br />

or acts of terrorism, or the likelihood of a natural disaster, also has<br />

to be taken <strong>in</strong>to account.<br />

One example serves as a rem<strong>in</strong>der of the importance of these<br />

constant checks and an awareness of the area, not only <strong>in</strong> terms<br />

of medical facilities but also of political and economic stability.<br />

"We have people <strong>in</strong> Chad and try<strong>in</strong>g to get someone out of<br />

there <strong>in</strong> a medical emergency is much more difficult than tak<strong>in</strong>g<br />

someone off a platform <strong>in</strong> the North Sea, for example," says Hunter.<br />

"We recently had a guy who sadly died of natural causes <strong>in</strong><br />

sub-Saharan Africa on Christmas Eve. Try<strong>in</strong>g to work out what to<br />

do <strong>in</strong> a situation like that if you did not have a process <strong>in</strong> place<br />

would be extremely difficult.<br />

"I th<strong>in</strong>k the key is not only to have an emergency response<br />

prepared, but to have one for every s<strong>in</strong>gle region. Even with<strong>in</strong> Africa,<br />

different regions can have different facilities and different <strong>risk</strong>s."<br />

One problem, of which there is perhaps greater awareness<br />

than <strong>in</strong> the past, is the <strong>risk</strong> of either random or targeted acts<br />

of terrorism.<br />

Some areas, such as the Niger Delta of Nigeria, have been<br />

targeted by kidnappers who aim to hold western workers for<br />

ransom. As a result, many companies, <strong>in</strong>clud<strong>in</strong>g PSN, have opted<br />

not to work <strong>in</strong> that region.<br />

However, terrorism <strong>in</strong> all forms is a <strong>risk</strong> which companies have<br />

to take <strong>in</strong>to account and put <strong>in</strong> place medical plans to cope with.<br />

Hunter expla<strong>in</strong>s: "From a medical po<strong>in</strong>t of view we have, this<br />

year, done a lot of work with different groups, to look at how we<br />

protect our workforce across the globe. We treat every <strong>risk</strong> as a<br />

serious one, and don’t assume, for example, terrorism is the same<br />

as other security <strong>risk</strong>s."<br />

That is a sentiment echoed by <strong>International</strong> <strong>SOS</strong>. It says the <strong>risk</strong> of<br />

a terrorist attack is someth<strong>in</strong>g which should be assessed automatically,<br />

<strong>in</strong> the same way as the <strong>risk</strong> of be<strong>in</strong>g the victim of a crime.<br />

While some regions might be classified as <strong>high</strong> <strong>risk</strong> for<br />

earthquakes, hurricanes or tsunamis, the possibility of an unforeseen<br />

phenomenon cannot be overlooked, whatever the location.<br />

"Natural disasters <strong>in</strong> Aberdeen are every bit as likely as<br />

anywhere, and you must have an emergency response <strong>in</strong><br />

place for that sort of th<strong>in</strong>g wherever you are work<strong>in</strong>g,"<br />

comments Dean Hunter. The strategy at his company is to<br />

treat every situation on its own merits.<br />

<strong>International</strong> <strong>SOS</strong> often f<strong>in</strong>ds itself called <strong>in</strong> to evacuate<br />

personnel from client companies who f<strong>in</strong>d themselves<br />

caught up <strong>in</strong> unexpected natural disasters. At the time of<br />

the Asian tsunami, for example, that also <strong>in</strong>volved a large<br />

number of company executives who were on holiday.<br />

The key <strong>in</strong> those situations is, accord<strong>in</strong>g to Dr Nerwich, for<br />

the company to know where its staff are, and for those staff to<br />

know that there is an emergency plan and what they have to do.<br />

"Aga<strong>in</strong> that comes back to assess<strong>in</strong>g every eventuality,<br />

putt<strong>in</strong>g plans <strong>in</strong> place and mak<strong>in</strong>g sure your staff have been<br />

tra<strong>in</strong>ed <strong>in</strong> current procedures," he says.<br />

In practice, that means <strong>HR</strong> professionals have to look at<br />

every detail of a country, its political stability, the <strong>risk</strong>s of certa<strong>in</strong><br />

diseases, even the <strong>in</strong>digenous plants and creatures which could<br />

prove hazardous.<br />

Only by do<strong>in</strong>g that can they be sure they have taken every<br />

reasonable and practicable step to ensure employee safety.<br />

“there will always be an element<br />

of complete unpredictability”<br />

However, there are circumstances where specialist reports are<br />

necessary, depend<strong>in</strong>g on where <strong>in</strong> the world people are travell<strong>in</strong>g.<br />

"What you should do is look at where people are go<strong>in</strong>g and use<br />

the best available <strong>in</strong>formation analysis to decide what measures need<br />

to be taken for the employee to go there as safely as possible," says<br />

Dr Nerwich. "Ask ‘What do I need to do to mitigate these <strong>risk</strong>s?’<br />

"The brief you give to the employee will then be based on that.<br />

For example, anyone go<strong>in</strong>g to Moscow would be briefed about<br />

crime and where not to go <strong>in</strong> the city. For other parts of the world,<br />

you might need to brief people on plann<strong>in</strong>g for an evacuation."<br />

There is one area, however, where there will always be an element<br />

of complete unpredictability <strong>in</strong> <strong>risk</strong> assessment: natural disasters.<br />

For further <strong>in</strong>formation:<br />

www.<strong>in</strong>ternationalsos.com<br />

www.psnworld.com<br />

the<br />

<strong>HR</strong>DIRECTOR – DECEMBER 07 33

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