5.2.4Human Resources Reporting

The Company’s Human Resources data covers the global workforce and is broken down by region (continents), employment type, gender and age. The performance indicators report on the workforce status at year-end December 31, 2018.They include all staff assigned on unlimited or fixed-term contracts, employee new hires and departures, total number of locally-employed staff from agencies, and all crew working on board the offshore operations units and shore bases.

Headcount, Turnover & Nationalization

Human Resources considers:

  • ‘Direct Hire’ employees as a staff member holding a labor contract for either an unlimited or a defined period (or an offer letter for an unlimited period in the USA). Direct hires are recorded on the payroll, directly paid by one entity of the SBM Offshore Group.
  • ‘Contractors’ as an individual performing work for or on behalf of SBM Offshore, but not recognized as an employee under national law or practice (not part of SBM Offshore companies payroll, they issue invoices for services rendered).
  • ‘Subcontractors’ are not considered as staff in the HR headcount breakdown structure. This population is managed as temporary service and are not covered by HR processes policies.

For reporting purposes certain performance indicators report on construction yard employees separately. Construction yard employees for Human Resources reporting purposes consist of employees for yards located in Brazil and Angola. These constitute a non-traditional type of SBM Offshore workforce who work in construction yards which SBM Offshore owns and/or operates via a joint venture and could be allocated to non-SBM Offshore projects. SBM Offshore includes the BRASA Yard in Brazil and the PAENAL Yard in Angola in its reporting scope based on partial ownership and operational control including human resource activities and social responsibility for the employees.

In principle, reporting on headcount, turnover, training and collective bargaining covers all SBM Offshore, including construction yards. For the reporting on Appraisals and absenteeism, construction yard employees are not included, due to the limits on influence and impact that SBM Offshore has on JV partners in the PAENAL and BRASA yards.

SBM Offshore reports its Human Resources data in all the regions (Africa, Asia, Europe, North America, South America, Other) it is located. Starting from this year, we decided to no longer report per entity, but per location, for both sustainability reasons and due to the recent reorgnanization of SBM Offshore.

Certain differences may potentially arise between the headcount numbers reported by Finance, HSSE and HR. This is due to the difference in the reporting structure of the two departments. Turnover has been calculated as such; number of employees who have left the Company in 2018 (between January 1 and the December 31, 2018) compared with the headcount on January 1, 2018 and the number of newcomers in 2018.

For fleet operations, engagement and development of the local workforce is the main indicator for successful local content development. In this perspective, SBM Offshore monitors the percentage of local workforce − % of nationalization per vessel − and invests in training to increase or maintain the targeted level. For example, specific programs in both below countries focus on education and training of nationals to facilitate them entering the workforce with the required level of qualifications and knowledge.

  • 88% of Brazilian direct hire workforce consists of Brazilian nationals
  • 82% of Angolan direct hire workforce consists of Angolan nationals

Absenteeism

SBM Offshore considers absenteeism as the number of work days lost due to unplanned absence. This does not include permitted absences such as maternity/paternity leave, national holidays, vacation, or compassionate leave.

The absenteeism rate is calculated as follows: The total amount of sick days on Full Time Equivalent (FTE) basis divided by the total amount of scheduled work days on FTE basis.

Absenteeism has been monitored internally at a local level by SBM Offshore and in 2017 the Company started to report externally on a consolidated level. The Company started reports on the absenteeism rates per Region (Locations) and disclose absenteeism rates by Gender (Male/Female) and Age (less than 30 years old/between 30 and 50 years old/more than 50 years old). The scope for this indicator includes all office-based Direct Hire SBM Offshore employees. The reporting for this metric excludes all offshore and construction yard employees. Due to a change in the GRI reporting standard, the Company is most likely not reporting on absenteeism next year unless the topic becomes material as a seperate topic in the materiality analysis.

Performance Management

In order to ensure personal development and optimal management of performance within the Company, SBM Offshore conducts annual performance reviews for all employees. Globally, the Company uses a common system to grade and evaluate all employees.

Talent Management

A talent management and succession planning program is in place to discuss the strengths, development needs and potential future career paths of SBM Offshore employees, taking into account certain criteria and identifies those who have the potential to take on greater leadership roles today and tomorrow.

Training

The training indicator is reported within SBM Offshore as the number of hours in total and per employee, breakdown per gender. SBM Offshore has also chosen to disclose training information in the employee categories onshore/offshore as a relevant breakdown method for the Company’s stakeholders, as these are two very different types of populations with different training needs.

The Anti-corruption policies and procedure been communicated to all governance body members. All governance body members, situated in Amsterdam, have been trained accordingly.

Collective Bargaining

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers’ compensation and rights for workers. Within SBM Offshore, it is considered as collective bargaining: all the employees of which the interests are commonly represented by external or internal representatives of a trade union to which the employees belong.