1. ER/IR Competence GIRN, 20 th October 2011 1 HR Strategy & Internal Communications Andrea van Duijse VP HR Employee Engagement, ER/IR, Compliance

2. About Shell ER/IR Competence Building Governance, global standards & philosophies Tools & Materials Measurement Group Exercise Q&A 2 Agenda

3. 3 Challenges ER/IR is essentially ‘learning by doing’ – how to give/get the experience before it’s needed Deciding what’s global/generic from what’s local/specific Risk based – eg how to negotiate to a mandate, global union agenda Investment and focus over the long term

4. 4 Governance & Networks Global ER/IR Net EVP HR Strategy + VP HR Operations + Internal Comms + 2 businesses (all 5 business units are represented) Downstream ER/IR Net ER/IR Specialists in country + HRM in Business Country ER/IR Nets ER/IR Manager + ER/IR Specialists in a major country VP HR Operations (HR in Country) are accountable for ER/IR

5. Global Standards & Philosophies 5 Shell General Business Principles Code of Conduct People Standards ER Philosophy Articulates relationship with employees Delivers on work environment, learning & development, communications & involvement, and performance & reward Target audience: Supervisors, Senior leaders & HR IR Philosophy Employees have a safe work environment, are heard, grievances addressed, enjoy competitive terms & conditions Good employee relations are the basis Employee – line manager relationship is key Local solution to local issues Respect unions where present Target audience: Country HR Mgrs, ER/IR Managers, Country Chairs, Site Mgrs

6. Tools & materials available 1/2 6 HR Functional Excellence “4 Box Model” for the ER/IR Competence Onboarding of new HR colleagues E-learning Employee Engagement/ER/IR/Consultation Basics for supervisors & HR ER/IR Sharepoint Site ER & IR philosophies Practical Guide to IR Monthly external news items Country sections Good practices from around the world Community, connections Training Courses Professional Experiences Reference Materials On-the-Job + Coaching

7. Tools & materials available 2/2 7 Regional webcasts Building awareness in the HR leadership teams Senior Business Leader briefings ER/IR Peer Reviews for key countries Capability building on international ER/IR Regional webcasts, raising awareness of global union agenda ER/IR Peer Reviews, using country ER/IR managers to review a country in a different continent Unilever – CIPD accredited course on International ER/IR External networks as sources of learning

8. Measurement 8 Annual Shell People Survey Absence Internal Communications surveys Reputation tracker Nr and type of grievances Nr and type of disciplinary measures Attrition rates Use of contract labour Market surveys Manhours/business lost due to industrial action The power of combining all the data and making sense out of it.

9. 3 Groups: (vote with your feet) – 30mins 1. Governance, global standards & philosophies 2. Tools & Materials 3. Measurement Round Robin in your groups What do you have in place in your company? What works well? What does not? Short report-out of highlights from your discussion (5 mins each) 9 GROUP EXERCISE