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High Performance Team
Marathon seeks to create sustainable value through a high performance team culture, nurturing a collaborative, supportive environment in which individuals and teams can perform to their fullest professional potential. Marathon’s culture is to respect the individual, treat each person with dignity, and value the diverse ideas and backgrounds of its employees. Above all, Marathon is a company where talented people meet and exceed expectations for behavior and performance.
At year-end 2006, Marathon employed 28,195 people worldwide, the majority of whom are located in the U.S. During 2006 in a tight labor market, Marathon hired 1,826 employees in the U.S., excluding SSA (Retail) sales workers, and another 110 employees internationally. More than 500 interns, special helpers and co-op employees were employed during the year. No workforce reductions occurred in 2006.
In addition, Marathon’s 2006 U.S. turnover rate (excluding SSA employees) was 5.7 percent. This low rate resulted from efforts since 2004 to assist employees with work/life balance and career development, as well as to inform them about the value of a long-term career with Marathon. SSA’s (Retail) 2006 turnover rate was 163 percent, typical for a retail/convenience industry workforce. Employee retention remains a key Company goal in 2007.
Employment Practices
Non-discrimination and Equal Opportunity
Marathon’s objective is to ensure that all current and prospective employees have equal opportunities in all aspects of the employment relationship. The Company’s policy is to select, develop and promote employees based on individual ability and job performance, and to comply with all applicable laws and regulations that prohibit discrimination in employment based on a specified protected status. In 2006, Marathon Oil Corporation added sexual orientation to its written non-discrimination policy.
Employee Diversity Programs
Diversity and inclusion are critical to Marathon’s success as a global enterprise. Marathon’s diversity initiatives enable teams to perform at a higher level, be more productive, and meet customer and community needs effectively.
Marathon implements diversity programs to shape an inclusive culture, foster accountability, assist in building a representative workforce and support the Company’s business strategy. Diversity is embraced at the highest level, as demonstrated through the leadership and commitment of the Executive Diversity Officer’s Committee.
Marathon continues to expand its use of Diversity Councils, which are internal bodies comprising a representative cross-section of employees. Three U.S. and three European Diversity Councils involve employees working with the Corporate Development and Diversity office to facilitate an inclusive environment. Joint meetings allow Council representatives to share best practices and lessons learned.
Diversity Teams are part of the Diversity Council model. Teams have been established to address unique issues at individual locations and within specific business units. In 2006, IT established the first organizational Diversity Team to increase awareness and embrace diversity. In Catlettsburg, the Diversity Team held a leadership development event that reinforced every employee’s ability to be a leader and provided practical strategies for personal development.
Cultural awareness training is another extension of Marathon’s global diversity efforts. In 2006, Marathon offered enhanced cultural awareness training in Equatorial Guinea and within European Production Operations. Training in Equatorial Guinea includes national and expatriate employees and contractors. The majority of employees in Equatorial Guinea will have attended this training by year-end 2007. In 2007, the Company will continue to provide skills training in Equatorial Guinea to assist managers and supervisors in managing a diverse global workforce.
U.S.-based Corporate and Upstream employees attend Global Skills workshops to foster an understanding of the cultures and business practices in countries where Marathon operates. In addition, Downstream has a program to train employees in relating to customers from various cultural backgrounds.
Marathon supports higher education by partnering with institutions and organizations that provide opportunities to students pursuing degrees of interest to the Company. As part of this commitment and to diversify its workforce, Marathon established scholarship and internship programs with the United Negro College Fund and in 2006 launched a partnership with the Hispanic Scholarship Fund. These programs offer scholarships, internships and mentoring for minority students majoring in technical and business disciplines and are open to all minorities at colleges across the U.S.
Supplier Diversity Program
Marathon has an active Supplier Diversity Program to engage minority and women business enterprises (MWBE) in procurement. Marathon spent $168 million with minority and women suppliers in 2006, including $103 million in Corporate and Upstream spending and $65 million in Downstream. This surpassed the 2006 goal of $140 million.
In Houston, Marathon participates in a Greater Houston Partnership initiative to increase local corporate spending with minority business enterprise (MBE) professional services firms. Marathon pledged to increase its spending with these suppliers annually over a five-year period. The actual amount spent procuring professional services from Houston-based MBE companies for 2006 exceeded the Company’s goal by more than 150 percent.
The Company connects with U.S. vendors through the National Minority Supplier Development Council and the Women’s Business Enterprise National Council. As a corporate member of these organizations, Marathon participates in their local, regional and national conferences and opportunity fairs.
To give minority and women vendors the opportunity to bid on projects, the Supplier Diversity group invites them to project-specific forums, where applicable. After attending the forums, vendors with the proper capabilities are included in the bid process.
For 2007, the goal is to increase MWBE spending to $115 million for Corporate and Upstream and $75 million for Downstream, for a total Company goal of $190 million.
The Supplier Diversity group also set goals for new MWBE vendors and goals related to the Greater Houston Partnership’s MBE professional services initiative. To meet its goals, the group continues to seek out MWBEs with expertise in all functions of the Company.
Training and Development
Employees receive training and development throughout their Marathon careers to ensure they have the technical skills, professional knowledge and awareness of best practices to perform at high levels. Marathon offers face-to-face sessions with industry and content experts, as well as online courses through the Marathon University Intranet. Marathon’s Learning Management System tracks employee training in every category. In addition, Marathon’s tuition reimbursement program offers employees in the U.S., U.K. and Ireland financial assistance to complete or further their college training.
In 2006, Marathon’s Upstream Engineering and Geoscience and its Downstream Refining groups established dedicated personnel who focus intensively on the skill development of employees in these areas. The groups provide assessment and development opportunities.
Several hundred Marathon supervisors attended programs with in-house and external providers to improve their leadership capabilities. With guidance from external performance coaches, Company leaders also had the opportunity to review feedback from a variety of co-workers at all levels. Approximately 270 supervisors participated in this 360º feedback program in 2006 and more than 300 are scheduled for the program in 2007.
Non-retaliation and Grievance System
To support its high performance team culture, Marathon promotes open, honest communication in the workplace. Employees are encouraged to settle issues, disputes and conflicts directly with their supervisor or with assistance from the local Human Resources consultant, the ombudsman or other resources.
The Code of Business Conduct and corporate policies assure employees of their ability to come forward with concerns about their job or the Company without fear of retaliation. Marathon wants to know of any violations of the Code, Company policies, laws and regulations so it can stop them and prevent future violations. Employees have several avenues to express concerns anonymously and confidentially.
To discuss equal employment and workplace harassment concerns, employees can contact the Equal Employment Opportunity/Compliance Office using a toll-free telephone number. The Integrity Helpline is a resource for prompt, confidential answers to ethical questions and reporting concerns 24 hours a day, 365 days a year. Additional information about Integrity Helpline calls in 2006 is available in the Honesty and Integrity section of this Report.
Local Employment Opportunities
The Company strives to offer an inclusive and positive work environment, competitive pay and benefits, and advancement opportunities to attract and retain high performing employees.
Marathon recruited workers on 65 college campuses and at numerous job and career fairs worldwide in 2006. Job seekers can identify employment opportunities on the Company’s Web site.
The Company has a variety of paid internships worldwide that offer experience, mentorship, networking opportunities and potential full-time employment after graduation. For example, in 2006 approximately 40 students participated in the High Impact Rotational Experience (HIRE) co-op program sponsored by IT in Houston, Findlay and most refinery locations. In the past three years, more than 19 HIRE interns have accepted full-time IT positions with Marathon.
In Equatorial Guinea, approximately 70 percent of all Marathon personnel are Equatoguineans. Through its National Workforce Integration Plan, the Company is building a sustainable future by integrating, recruiting, training and advancing national employees into increasingly more material and responsible levels of management in Marathon’s Equatorial Guinea operations.
English language, technical, on-the-job and safety training are offered for Marathon’s Equatoguinean workforce in the National Workforce Integration Plan. Specialized training addresses operational, department and safety issues such as firefighting, medical and hygiene, forklift and crane operations, and inventory and purchasing. The goal is to equip national employees with the necessary skills to work safely and productively, with minimum supervision, to an internationally accepted standard.
One initiative within the workforce integration plan is training for 35 nationals who will work in Marathon and its partners’ Train 1 LNG Plant. Following English language instruction, the trainees attended a specialized program at a technical college in Texas to develop competencies. They returned to Equatorial Guinea and began on-the-job training in 2006.
To address long-term business needs, Marathon supports advanced academic study at Texas A&M University for select Equatoguineans and Gabonese. Students chosen by the university enroll in geosciences, engineering, business administration or information technology programs. In 2006, six students were enrolled in this program.
Labor Practices
Marathon supports the International Labor Organization Declaration on Fundamental Principles and Rights to Work. The Declaration asserts that four fundamental rights apply to all people in all states: freedom of association and the effective recognition of the right to collective bargaining; elimination of forced or compulsory labor; abolition of child labor; and elimination of discrimination in respect of employment and occupation.
Marathon does not employ individuals against their will, or children, and prohibits discrimination in employment. Marathon believes it is in the best interest of employees and the Company to operate without the presence of labor unions. No Upstream employees are union members, while approximately 19 percent of Downstream employees (excluding SSA) work under labor union contracts. The International Brotherhood of Teamsters represents Downstream employees at three facilities and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers Union represents employees at four facilities. The International Brotherhood of Teamsters also represents employees at one SSA facility.
At the St. Paul Park refinery, members of the International Brotherhood of Teamsters went on strike on July 19, 2006. They returned to work on September 5, 2006, when the Company and the union agreed on a new three-year contract.
Employee Satisfaction
Employee satisfaction is primarily influenced by the opportunity to work on meaningful projects, quality supervision and competitive pay and benefits. Marathon endeavors to meet all of these needs and measures its effectiveness in part through the Annual Employee Survey.
For the first time, in 2006 employees from Upstream, Downstream, Corporate and SSA (Retail) took the same survey. Approximately 6,800 employees worldwide participated. The highest scores were in the areas of engagement and commitment, heath and safety, ethics and integrity, customer focus, and respect and diversity. The survey pointed out process efficiency and management of poor performers as areas for improvement. Marathon measures its results in all areas against previous surveys and all-industry benchmarks where possible. Results are captured both at the Corporate and business unit level and shared with employees. The Company expects to launch the next survey in July 2007.
Teamwork Leads to Successful Rollout of
Ultra-low Sulfur Diesel
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