Collarini Energy Staffing Inc.December 2006 It’s Not Always About the Money: On What Do Today’s Employees Place Value? Presented to December 7, 2006

Collarini Energy Staffing Inc.December 2006 Fair compensation is a fundamental expectation Okay, it really is first about the money

Collarini Energy Staffing Inc.December 2006  Base salary  Sign-on bonus  Performance bonus  Technical training  Tuition assistance  Overriding royalty  Stock purchase plan  Stock options or company participation  Disability insurance  Life insurance  Medical insurance  Dental insurance  Vision insurance  Vacation and holidays  Savings [401(k)] plan  Pension plan Elements of compensation

Collarini Energy Staffing Inc.December 2006  Paid medical insurance is worth as much as $18,000 per year  An escalating-contribution-percentage savings plan $100,000 per year salary $100,000 per year salary 30 years 30 years $800,000 TODAY $800,000 TODAY  An escalating-contribution pension plan $700,000 TODAY $700,000 TODAY Valuing non-salary compensation

Collarini Energy Staffing Inc.December 2006  Valuing all elements of the compensation package Make it easy for new employees to understand Make it easy for new employees to understand Provide a periodic refresher for all employees Provide a periodic refresher for all employees Perhaps make it part of their annual personal report Perhaps make it part of their annual personal report Communicating compensation value

Collarini Energy Staffing Inc.December 2006 Today's employees look for more than compensation and benefits…...they want to work where they are recognized and rewarded for performance, where there is good communication, and where they are part of the success of the company. But it is more than just the money……

Collarini Energy Staffing Inc.December 2006 “Let’s survey our own employees!”

Collarini Energy Staffing Inc.December 2006  Categories addressed career, work environment, and personal issues  36 non-monetary factors addressed in those 3 categories  Respondents rated each factor 1 to 5, 1 being a must-have Collarini survey of oil industry employees

Collarini Energy Staffing Inc.December 2006 "Please name one area where our company can improve."  More formal performance evaluation process  Formal acknowledgement of good work with some type of award  More team building events Collarini pilot program

Collarini Energy Staffing Inc.December 2006  Personal plea to get higher response rate  Five minutes to respond  Completely anonymous  1,026 people responded  Double the expected response Collarini survey of oil industry employees

Collarini Energy Staffing Inc.December 2006 Respondents by years of experience  0 – 10 years 116  10 – 20 years 171  20 – 30 years 447  30 + years 289 Years of Experience Number of Respondents

Collarini Energy Staffing Inc.December 2006 Corporate reputation636 = 62% Challenging work 572 = 56% My team 458 = 45% New ideas welcome 445 = 43% My supervisor 433 = 42% Influence on decision making 373 = 36% Commute time 368 = 36% Corporate leadership 382 = 37% Flexible work hours 357 = 35% Technology up to date 328 = 32% Corporate vision 317 = 31% Available tech. or prof. career paths 300 = 29% Corporate reputation636 = 62% Challenging work 572 = 56% My team 458 = 45% New ideas welcome 445 = 43% My supervisor 433 = 42% Influence on decision making 373 = 36% Commute time 368 = 36% Corporate leadership 382 = 37% Flexible work hours 357 = 35% Technology up to date 328 = 32% Corporate vision 317 = 31% Available tech. or prof. career paths 300 = 29% Respondents rating issues #1 in importance

Collarini Energy Staffing Inc.December 2006 My supervisor 1.82 My supervisor 1.82 Challenging work 1.87 Challenging work 1.87 My team 1.90 My team 1.90 New ideas welcome 1.90 New ideas welcome 1.90 Flexible work hours 1.95 Flexible work hours 1.95 Commute time 1.98 Commute time 1.98 Corporate reputation 1.98 Corporate reputation 1.98 Least important: variety of office locations and child, elder care support Challenging work 1.78 Challenging work 1.78 My team 1.88 My team 1.88 New ideas welcome 1.89 New ideas welcome 1.89 My supervisor 1.93 My supervisor 1.93 Corporate reputation 1.98 Corporate reputation 1.98 Least important: child, elder care support Women (176) highest AVERAGE Men (840) highest AVERAGE Most important issues by gender

Collarini Energy Staffing Inc.December 2006 Managers  Challenging work 1.60  Team 1.76  Influence on decision making 1.83  Corporate reputation 1.83  Supervisor 1.88  Welcome new ideas 1.91  Corporate leadership 1.99 ◆ Challenging work 1.70 ◆ Welcome new ideas 1.77 ◆ Supervisor 1.85 ◆ Technology up to date 1.85 ◆ Team 1.85 ◆ Influence on decision making 1.89 ◆ Level of technology 1.91 Geologists Most important issues by position

Collarini Energy Staffing Inc.December 2006 Engineers  Challenging work 1.90  Team 2.00  Welcome new ideas 2.03  Supervisor 2.11  Commute time 2.12  Corporate reputation 2.13  Flexible work hours 2.17  Welcome new ideas 1.48  Supervisor 1.56  Corporate reputation 1.67  Team 1.68  Challenging work 1.73  Corporate leadership 1.74  Commute time 1.74  Corporate vision 1.77  Technology up to date 1.86  Personal and professional networking 1.91  Influence on decision making 1.93 Other professionals (sales, financial, business, etc.) Most important issues by position

Collarini Energy Staffing Inc.December 2006 Support personnel  Supervisor 1.87  Corporate leadership 1.92  Commute time 1.92  Welcome new ideas 1.97  Flexible work hours 2.0  Corporate reputation 1.56  Team 1.69  Supervisor 1.74  Challenging work 1.77  Corporate leadership 1.77  Welcome new ideas 1.82  Corporate vision 1.87  Influence on decision making 1.92 Landmen Most important issues by position

Collarini Energy Staffing Inc.December 2006 Human resources personnel  Corporate reputation 2.07  Corporate leadership 2.07  Security of premises 2.07  Work hours at home 2.14  Challenging work 2.14  Child/elder assistance 2.14 Most important issues by position

Collarini Energy Staffing Inc.December 2006 Least important issues Provision of child and elder care Provision of child and elder care Variety of office locations Variety of office locations Office amenities Office amenities

Collarini Energy Staffing Inc.December 2006 Technical/professional training Non-technical training Flexible work hours Office amenities Other issues of interest

Collarini Energy Staffing Inc.December 2006 Commute time Child or elder care Networking opportunities Other issues of interest

Collarini Energy Staffing Inc.December 2006 Every individual has needs, desires, and challenges unique to him or her…..

Collarini Energy Staffing Inc.December 2006 “I used to be in it for the sex, but that got old. Now I am in it for the money.” “My new position pays a little less, my title is less…but I get to go to parent teacher conferences and see my daughter every night. I think this is one of the best jobs I have ever had!” “It’s about treating people well, and you don’t have to throw a lot of money around to do that.” “Career development, values alignment, work-life balance are very key.” Comments from respondents

Collarini Energy Staffing Inc.December 2006 “Career advancement and professional training opportunities are the most important issues for me.” “A clear, stable and trusting leader is the most important factor for me.” “Cannot stand being made to work in a "common area" with no privacy, no walls, no place to put my 'things', I have turned down a full-time position because of this.” “Important factors to me: Challenging work, knowing you contribute, sharing your success with the community and enjoying the company of people you spend over 40+ hours a week with.” “It doesn't feel like work when you work with a great group of people and they respect you and your work.” “Main reason I want to leave my job now is that it isn't challenging. A monkey could do my job. The hours I'm working now is not very good for a single male who wants a social life.” “Main reason I want to leave my job now is that it isn't challenging. A monkey could do my job. The hours I'm working now is not very good for a single male who wants a social life.” “Able to make a significant contribution and be recognized appropriately.” Comments from respondents

Collarini Energy Staffing Inc.December 2006 “Its not the technology - its ALWAYS the people” “Many are mentioned, but I wanted to emphasize - Recognition, Rewards for exceptional performance, Opportunities for advancement are the main issues. Money is important, but not always at the top of the list.” “Work should be fun. If it's not, why are we doing it?” “Reasonable amount of time off to pursue individual interests is VERY important as I get older. It's NOT all about work, work, work!” Comments from respondents

Collarini Energy Staffing Inc.December 2006 How can we address individual needs? Culture of supervisory awareness, respect, and care Culture of supervisory awareness, respect, and care Train supervisors and managers Train supervisors and managers Offer flexibility in meeting individual needs Offer flexibility in meeting individual needs

Collarini Energy Staffing Inc.December 2006 Meeting the challenge “God, please give us one more boom. We promise not to screw it up this time. “ “Many companies are simply misreading what makes people happy at work. Beyond a certain minimum level, it isn't pay or benefits. It's strong relationships and a supportive boss.” Thanks for your attention!