BP Annual Report and Form 20-F 2011 - Company Reporting

Business reviewresources such as drinking water and public health improvements. Wework with local authorities, community groups and specialists to deliverthese community programmes.We use our technical knowledge and global reach where relevant tosupport national and regional governments in their efforts to develop theireconomies sustainably and provide public resources such as educationand health. As well as country-specific projects, we support more generalinitiatives, including the Oxford Centre for the Analysis of Resource-RichEconomies, which studies how countries that are rich in natural resourcessuch as oil and gas can use their resources for successful developmentrather than falling prey to mismanagement, corruption or other pitfalls.Our direct spending on community programmes in 2011 was$103.7 million, which included contributions of $37.5 million in the US,$27.0 million in the UK (including $7.2 million to UK charities, of which$2.5 million for arts and culture, $2.8 million for enterprise development,$1.6 million for education), $2.6 million in other European countries and$36.6 million in the rest of the world. These reported amounts excludesocial bonuses paid by BP to governments as part of licence acquisitioncosts and which have been capitalised as intangible assets on the groupbalance sheet. In such cases the group has no direct oversight of theexpenditure. Contributions relating to economic recovery following theDeepwater Horizon oil spill are also excluded, see page 77 for details ofthese contributions.EmployeesNumber of employees at 31 December US Non-US Total2011Exploration and Production 8,900 13,300 22,200Refining and Marketing a 12,000 39,000 51,000Other business and corporate 1,900 8,200 10,100Gulf Coast Restoration Organization 100 – 10022,900 60,500 83,4002010Exploration and Production 7,900 13,200 21,100Refining and Marketing a 12,400 39,900 52,300Other business and corporate 1,700 4,500 6,200Gulf Coast Restoration Organization 100 – 10022,100 57,600 79,7002009Exploration and Production 8,000 13,500 21,500Refining and Marketing a 12,700 38,900 51,600Other business and corporate 2,100 5,100 7,20022,800 57,500 80,300a Includes 14,600 (2010 15,200 and 2009 13,900) service station staff, all of whom are non-US.To be sustainable as a business, BP needs employees who have theright skills for their roles and who understand the values and expectedbehaviours that guide everything we do as a group.We have reviewed the way we express BP’s values and requiredbehaviours with the goal of ensuring they support our aspirations forthe future, align explicitly with our code of conduct and translate intoresponsible actions in the work we do every day. We conducted aprogramme in 2011 to renew employee awareness of our values and thebehaviours as we work to reset our priorities as a company. See bp.com/values for more information.We had approximately 83,400 employees at 31 December 2011,compared with approximately 79,700 a year ago. During 2011, ourheadcount has been most significantly affected by both external hiring inorder to build capability and acquisition and divestment activity as part ofthe strategy to re-shape the business.The group people committee, chaired by the group chief executive,continues to take overall responsibility for key policy decisions relating toemployees. In 2011, some of the key subjects discussed were longer-termpeople priorities; the design and implementation of a new reward model;our ambition on diversity and inclusion and a review of the governance ofour learning programmes.Our priorities for managing our people focus on ensuring the safetyof our employees, strengthening capability, developing the potential of ourown people, increasing diversity and inclusion and retaining the best peopleby motivating and engaging them.Strengthening capabilityThe increasing demand for energy products and the complexity of ourprojects means that attracting and retaining skilled and talented people isvital to BP’s delivery of its strategy and plans.In support of this, the group chief executive and each memberof the executive team hold regular review meetings to ensure thatappropriate plans to build capability are in place and that a rigorous andconsistent succession process is followed for all group leadership roles.To supplement our existing internal capability, we also targetexperienced and skilled professionals in the external market and arecontinuing to increase our intake of graduates to create a strong internaltalent pipeline for the future.We conduct external assessments for all new hires into BP atsenior levels and for internal promotions to senior level and group leaderlevel roles. These assessments ensure rigour and objectivity in ourhiring and talent processes. They give an in-depth analysis of leadershipbehaviours, intellectual capacity and the required experience and skills forthe role in question.Our ongoing three-year graduate development programmecontinued in 2011. It currently has about 1,600 participants from all overthe world.Developing our peopleWe provide development opportunities for all our employees, includingexternal and on-the-job training, international assignments, mentoring,team development days, workshops, seminars and online learning. Weencourage all employees to take at least five training days per year.We continue to work to embed appropriate leadership behavioursthroughout our organization. In 2011, we delivered a new group leaderdevelopment programme, designed to help our most senior leaders applyBP’s required leadership behaviours in their work. The first phase of theprogramme has now been completed with about half the group leaderpopulation having undertaken eight days of intensive training. We arerefreshing the content and will start the next phase in 2012.Our group-wide suite of management development programmes,Managing Essentials, has now run in 41 countries, with around 32,400participants.Meeting the expectations of our peopleWe have reviewed our reward strategy, including how the groupincentivizes business performance, with the aim of encouraging excellencein safety, compliance and operational risk management. Our revisedperformance management framework was implemented in 2011.We encourage employee share ownership. For example, throughthe ShareMatch plan run in around 50 countries, we match BP sharespurchased by our employees.We aim to treat employees affected by mergers, acquisitionsand joint ventures fairly and with respect, through open and regularcommunication. As part of the divestment programme following the Gulfof Mexico oil spill, BP has been seeking the same or comparable pay andbenefits for employees transferring to other companies.Diversity and inclusionWe are a global company and aim for a workforce that is representative ofthe societies in which we operate. We work to attract, motivate, developand retain the best talent from the diversity the world offers – our abilityto be competitive and to thrive globally depends on it. We believe successcomes from the energy of our people.Through living our values of safety, respect, excellence, courageand one team, we create an inclusive working environment whereeveryone can make a difference and give their best. Our work on diversityand inclusion is overseen by the group people committee who reviewBusiness review: BP in more depthBP Annual Report and Form 20-F 2011 73