Journey to Recruiting Excellence

Barb Sheedlo Manager, Recruiting & StaffingConocoPhillips

About ConocoPhillips

• An international, integrated energy company

• Headquartered in Houston, Texas, ConocoPhillips operates in more than 30 countries

• Third-largest integrated energy company in the United States and fourth largest refiner worldwide

• Approximately 30,000 employees worldwide and assets of $155 billion

As of Dec 31st, 2009 2

Our SPIRIT Values

• Our Purpose: Use our pioneering spirit to responsibly deliver energy to the world.

• Our Values:

Safety

People

Integrity

Responsibility

Innovation

Teamwork

3

People Strategies Play a Key Role in Business Results

People People ImplicationsImplications

People People ImplicationsImplications

Business Business ResultsResults

Business Business ResultsResultsBusiness Business

StrategyStrategyBusiness Business StrategyStrategy

Changing Changing Business Business

EnvironmentEnvironment

Changing Changing Business Business

EnvironmentEnvironment

Industry TrendsIndustry TrendsIndustry TrendsIndustry Trends

InternalInternal

TrendsTrends

InternalInternal

TrendsTrends

People People StrategiesStrategies

People People StrategiesStrategies

“We firmly believe that people are the key enabler

to implementing business strategies successfully”

“We firmly believe that people are the key enabler

to implementing business strategies successfully”

Global Workforce Planning

Global Workforce Planning

Succession Planning

Succession Planning

Employee & Leadership

Development

Employee & Leadership

Development

Compensation & Benefits

Compensation & Benefits

Recruiting & Staffing

Recruiting & Staffing

Performance ManagementPerformance Management

Talent Management ProcessesTalent Management Processes

4

Business Value: Talent Management Process Enables…

Right person

Right skills

Right assignment

Right time & cost

Recruiting at ConocoPhillips

Technology

Taleo with SAP

integration

Recruiting Services

Recruiting Center of

Excellence

Recruiting Operations

(in house recruiters)

•Global Processes

•Best Practices

•Training

•Consulting

•Metrics & Reporting

•Background checks

•Medical

•Drug screens

•Onboarding

•Experienced Hire Recruiting

•University Recruiting

•Executive Recruiting

•Talent Pipelining

•Sourcing

•Hiring Mgr Interface

2008 2009

# Applicants 88,000 57,000

# Positions Filled 4217 1908

Time to Fill 66 days 61 days

Search agency usage

< 10% < 10%

6

COP Total Hiring

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008 2009

Hrly/Techs/AdminExp ProfessionalsUniversity Fulltime

WhiteBlack/ Afr American

Hispanic

Asian

Not Provided

Other

58

28

59

36

95

83

39

18

48

65

55

27

0 10 20 30 40 50 60 70 80 90 100

Admin

Finance

Govt Affairs

Legal

Eng & Ops

Technology

Average Time: Posted to OfferAcceptedAverage Time: Posted to Hired

ConocoPhillips Recruiting Analytics ConocoPhillips Recruiting Analytics

Time to Fill 2009Time to Fill 2009

US Applicant US Applicant

Diversity 2009Diversity 2009

Employee Referral

Our Website

Agency

Other: Job Fairs, Prof Assocs

Job Boards

Newspapers

Sources- Sources- External Hires External Hires 20092009

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Journey to Recruiting Excellence: 2005-2010

How to achieve process improvements within this dynamic environment?

0

50

100

150

200

250

300

350

400

2004 2005 2006 2007

Un

iver

sity

Hir

es

0

500

1000

1500

2000

2500

3000

3500

4000

To

tal

Glo

bal

Hir

es

University Hires Total Global Hires

COP Hiring ActivityCOP Hiring ActivityState of Recruiting in COP in Fall 2005Mission set to…”Attract and hire the right people, with the right skills, at the right time, and the right value”

BUT MAJOR CHALLENGES EXISTED…•Hiring numbers growing rapidly•Inconsistent staffing processes globally•New U.S. compliance standards (OFCCP)•No internal technology to support hiring•Lack of metrics to measure results•Few dedicated recruiters and staffing personnel•Huge reliance on costly search firms

8

Development of COP Recruiting Program

Improving Business

Efficiency and Effectiveness

Building Recruiter Competencies in Organization

Building Recruiter Competencies in Organization

Growing Talent Pools & Managing Candidate

Relationships

Growing Talent Pools & Managing Candidate

Relationships

Recruiting AnalyticsRecruiting Analytics

Employment Branding & Sourcing Strategy

Employment Branding & Sourcing Strategy

Taleo Technology PlatformTaleo Technology Platform

Global Recruiting ProcessGlobal Recruiting Process

Foundation for Success

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Recruiting Analytics Drive Investments

Strong global markets drive significant growth

in external hiring

Strong global markets drive significant growth

in external hiring

Global Recruiting Process Mapping

Global Recruiting Process Mapping

Globalize processes and technology

Globalize processes and technology

Taleo UK & Norway

Taleo UK & Norway

2008200820082008 2009200920092009 2011+2011+2011+2011+2006-20072006-20072006-20072006-2007

Taleo US & Canada

Taleo US & Canada

Staffing Process Metrics in Operation

Staffing Process Metrics in Operation

Refining Process Metrics

Refining Process Metrics

EnvironmentEnvironment

Focus AreaFocus AreaFocus AreaFocus Area

Processes & MetricsProcesses & Metrics

TechnologyTechnology

Sourcing TalentSourcing Talent

Contingent Staffing Project

Contingent Staffing Project

2010201020102010

Careers WebsiteLaunch

Careers WebsiteLaunch

Pilot leveraged recruiting team for Corporate Staffs

Pilot leveraged recruiting team for Corporate Staffs

Recruiting decentralized across BU’s

Recruiting decentralized across BU’s

Taleo Rest of World

Taleo Rest of World

Launch Leveraged Recruiting Model-

US & Canada

Launch Leveraged Recruiting Model-

US & Canada

Intl Staffing Process Implementation

Intl Staffing Process Implementation

Recruiter Recruiter OrganizationOrganization

Internet Postings to Major Job Boards

Internet Postings to Major Job Boards

Market decline – position recruiting processes for

future return to hiring

Market decline – position recruiting processes for

future return to hiring

Forecast economic recovery, return to

normal hiring levels

Forecast economic recovery, return to

normal hiring levels

Talent PipelinesTalent Pipelines

Launch Leveraged Recruiting Model- Europe & APAC

Launch Leveraged Recruiting Model- Europe & APAC

Diversity Sourcing: Career Fairs, Univs

Diversity Sourcing: Career Fairs, Univs

Employee Referral Analysis

Employee Referral Analysis

Case Study #1

Case Study #2

Case Study #3

ConocoPhillips Recruiting HistoryConocoPhillips Recruiting History

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Project Success Measures

Why Measure? Project Benchmarks

2007 Results 2008 Results 2 Year Savings

Time to Fill Lost productivity costs; loss of highest quality candidates

Reduce by 5 days

Reduced by 10 days

Reduced additional 6 days

$2.1 MM savings in reduced vacancy costs

% Search Agency Usage

High placement fees drive staffing costs up

Reduce usage 10%

Reduced from 16% to 5 %

Reduced from 5% to 3%

$2.7 MM savings in reduced fees

Candidate Screening Metric

Too many candidates burdens managers

Increase resumes screened by 20%

Benchmark year – managers reviewed 50,000 resumes in 2007

Improved by 30%

$50,000 savings in manager productivity

Hiring Manager Satisfaction

Recruiter service delivery

4.2 out of 5 NA 4.3

Recruiting Analytics #1 – Taleo Implementation

COP Taleo Implementation in North America significantly exceeded project benchmarks, resulting in ~ $ 5 MM in improvements over first two years

11

Recruiting Analytics #2 – Employee Referral

• Businesses requested the Recruiting COE to develop a paid employee referral program in early 2007

• Employee referral programs are considered a key tool in the toolkit for successful hiring

• Recruiting COE researched best practice programs and made recommendation to implement for Taleo deployed countries

– Assumed existing referral rates were low <15% since no program in place– Assumed referral rates would grow to 25% and achieve cost savings of

$450,000– Final decision pending results of Q1 and Q2 metrics from Taleo

DATA SURPRISE

• Sourcing Metrics showed Employee Referral Rate was already 49%!

• Business case no longer existed for new program• Path forward to monitor metrics and consider an

alternative program to educate employees on how to market our opportunities

12

Recruiting Analytics # 3 – Shift to Centralized Recruiting

Gaps in Decentralized Recruiting Model

• 93 “Recruiters”* filled 2863 positions (average 31/year)

• Data integrity issues due to inconsistent processes

• Inability to build talent pools, share candidates across businesses and engage in proactive strategies

• Diversity opportunities not leveraged across business

Engineering – 336 Hires47 Recruiters / 7 hires per year

Best Practice - 3 recruiters / 112 hires per year

Upstream

Refining

Corporate

51 hires7 recruiters

203 hires20 recruiters

82 hires20 recruiters

State of Recruiting in 2008

• Taleo technology fully implemented in U.S.

• Decentralized recruiting organization

• Limited # full time recruiters; mostly HR generalists with part time staffing roles

• Staffing is still large burden for hiring managers

• Analytics indicated plateau in efficiencies

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Director, Business RecruitingDirector, Technical Recruiting

Corporate Staff Functions

• 3 Recruiters

• 1 Coordinator

COE Staff : Consulting & Program Management

Manager, Recruiting & Staffing

Manager HR Services Canada

Engineering , Projects & Operations

• 8 Recruiters

• 3 Coordinators

• University & Experienced

Engineering, Ops & Business:

• 3 Recruiters

•1 Coordinator

Recruiting Analytics # 3 – Shift to Centralized Recruiting

Cost Savings Improved Service

High-grade Hire Quality

-Time to Fill reduced 5 days over 2008

-Candidate Screening metric improved to < 25%

-Hiring Mgr Satisfaction metric > 4.4 out of 5

-Talent pipelines built for key jobs

-Silver medalist hiring

-Leverage top candidates and diversity across businesses

14

Q4 2009 Implementation in U.S.

• Full life cycle recruiting services

• Dedicated, full time corporate recruiters

• Hiring for experienced and entry level professional, administrative, and operations positions

Project KPI’sProject KPI’s

New Operations Teams are on target to deliver Project KPI’s, filling ~1100 positions by year end.

Feedback from hiring managers has been very positive!

State of Recruiting in COP in 2010Mission set to…”Attract and hire the right people, with the right skills, at the right time, and the right value”

Accomplishments to date:Consistent global staffing processes supported by technologyCentralized Recruiting Model successful in US, Canada & NorwayAchieving global KPIs for efficiency and effectiveness Analytics routinely used for investment decisionsRecruiters building talent pipelines ahead of needBroad coverage of our positions in global internet marketingInternal expertise in niche and diversity sourcing, social media strategies

Remaining journey:Recruiters service both permanent and contingent staff needsCompletion of Taleo technology/ metrics to remaining global business unitsGlobal recruiter competency model and career maps

Journey to Recruiting Excellence: 2005-2010+

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Thank You! Questions ?

TomorrowTomorrowbeginsbeginstodaytoday

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