High Performance Team

Our Value: 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.

 

 

High Performance Team Strategy

Marathon is committed to attracting and retaining employees, developing individual and team capabilities, and accelerating organizational success. To support a high performance team culture, the Company offers numerous resources and opportunities, a collaborative environment and competitive benefits and compensation.

 

Workforce Statistics

Marathon employed 30,360 people at year-end, primarily in the U.S. This includes 19,794 SSA personnel, most of whom worked at the Company's retail marketing outlets. The non-retail workforce included 1,232 newly hired full-time employees.

Marathon's employee turnover rate in the U.S. in 2008 (excluding SSA employees) was approximately 6 percent, compared to 7 percent in 2007. Outside the U.S., the turnover rate was approximately 6 percent, compared to approximately 3 percent in 2007. Marathon experienced 620 retirements, resignations and terminations globally during the year. This includes approximately 6 percent fewer retirements than in 2007.

Turnover among all SSA employees was approximately 121 percent, compared to 145 percent in 2007.

 

Local Employment Opportunities

A competitive compensation and benefits package and many options for work-life balance help Marathon attract and retain qualified, talented people in its communities. To increase diversity and build relationships with communities where it operates, Marathon employed a number of strategies in 2008.

 

Supporting Workforce Development

The Detroit refinery heavy oil upgrade project (DHOUP) will require contractors to hire an average of 600 building trades workers per day during construction. The Company is working with community organizations and local and state employment services to overcome challenges to hiring local residents, such as low membership in the building trades unions in the City of Detroit. As part of its effort, Marathon hosted an event with Detroit Workforce Development and the Michigan Building and Construction Trades Council where approximately 1,500 people learned about apprenticeship programs and job requirements. Marathon also led development of the region's first process technology program at two local community colleges and is offering 100 program scholarships over the next 10 years to Detroit residents interested in process technology careers.

 

Facilitating Training in EG

The government of Equatorial Guinea is developing a National Institute of Hydrocarbon Technology (ITNHGE) to train operators and technicians and expand educational capacity throughout EG. Marathon led an industry working group in 2008 that developed a program which allows training to proceed while the government is working on the design and structure of a purpose-built ITNHGE facility.

The 24-month comprehensive training program will be delivered at separate facilities to two classes of 50 students. English language instruction will be conducted at a Punta Europa facility provided by Marathon, while technical training will occur at another company's facilities. Acting on a working group suggestion, the government of EG signed a memorandum of understanding with an educational institution to explore development of a strategic partnership for ITNHGE.

 

Facilitating Training in EG

Paid internships for college students and co-op programs for students attending technical and professional colleges help build an internal talent pipeline. Program participants gain meaningful work experience, mentoring and networking opportunities. The Company employed more than 510 students in the U.S. in 2008. More than 80 percent of interns and co-ops who received offers for full-time employment in 2008 joined Marathon.

The Company recruited on 60 university campuses in the U.S. and at seven universities outside the U.S., as well as at job and career fairs. Recruiting primarily focused on hiring engineering, geosciences, marketing, accounting, information technology, procurement, human resources and HES&S disciplines. One hundred seventy-six college recruits accepted full-time employment offers.

Employee recruitment is a primary means of diversifying the Marathon workforce. Through partnerships with the United Negro College Fund (UNCF) and the Hispanic Scholarship Fund (HSF), the Company offers scholarships, internships and mentoring for eligible students majoring in technical and business disciplines at colleges across the U.S. Marathon employed 21 UNCF and HSF interns in 2008. A total of 96 UNCF/HSF students have worked as interns at Marathon since 2005, some for two or three internships. Marathon has hired 15 UNCF/HSF student interns as full-time employees. In 2008, Marathon expanded its U.S. recruiting efforts at Historically Black Colleges and Universities and Hispanic Serving Institutions. The Company also partnered with many other universities to expand the pool of potential candidates.

 

Non-discrimination and Equal Opportunity

Marathon's objective is to ensure that 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 the individual's ability and job performance, and to comply with all applicable laws and regulations prohibiting employment discrimination. To ensure the work environment is fair and equitable, the Company offers a wide array of benefits for employees and their dependents, or for their eligible domestic partners and qualifying children of domestic partners.

New supervisor training in the U.S. covers federal employment laws. Outside the U.S., Marathon observes the rule of law in locations where it operates and applies Company policies and practices as long as they are consistent and compliant with local laws and regulations.

Marathon informs all of its employees that they can discuss equal employment and workplace harassment matters with their supervisor, a Human Resources consultant or the ombudsman, or make anonymous reports to the Integrity Helpline. In addition, Marathon's Equal Employment Opportunity coordinator is available via e-mail and telephone, including a toll-free hotline in the U.S. All reports are investigated internally, and by external investigators if needed.

Promoting diversity and inclusion in the workforce is consistent with Marathon's commitment to treat employees with dignity, respect and fairness. To raise awareness of diversity and inclusion issues, Marathon provides programs to its employees related to understanding culture and values and developing communications skills. As the Company continues to expand globally, diversity of people and ideas allows it to compete more successfully.

 

Training and Development

Marathon's organizational development goals are to build employee skills and technical competencies, deepen knowledge and expertise, promote best practices and facilitate knowledge transfer. Employees work with their supervisors and experts in their fields to design and follow an individualized training and development plan, including temporary assignments and projects. This engagement helps employees contribute as members of Marathon's high performance team while preparing for career advancement.

Employees have access to functional training activities, physical and virtual libraries, interactive CBT, on-site and off-site programs and, in most locations, a career development Web site. In 2008, approximately 1 million hours of employee training were tracked through Marathon's Learning Management System. An educational reimbursement plan provides financial assistance to U.S., Canadian and U.K. employees to complete or further their education.

Organizations and locations implement training programs to meet their specific needs. In some operations outside of the U.S., training programs, especially for national employees, may be required and approved by host governments.

 

Revamping SSA Employment Practices

After experiencing significant employee turnover and losses and low customer service metrics in 2006, SSA set out to improve the quality and skill set of its store employees. The gasoline and convenience store operator centralized recruiting for approximately 1,000 stores to improve consistency in hiring, and initiated pre- and post-employment screenings to ensure the accuracy of job candidates' employment histories. Recognizing that training reduces turnover, SSA made CBT mandatory for all newly hired store associates before they take on key responsibilities. SSA shifted from training employees in procedures to educating them about the reasons for policies and procedures.

As a result of the changes, in 2008 store employee turnover declined approximately 32 percent year-over-year, losses and customer complaints declined significantly, customer compliments increased and safety performance was SSA's best ever. In addition, customers, suppliers and employees donated $3 million to Children's Miracle Network (CMN) in 2008, a 100 percent increase over 2007. SSA believes store performance improvements contributed to increased giving to CMN, its philanthropic focus. SSA is expanding centralized recruiting and pre-employment screening and improving its job interview guide to enhance hiring decisions.

 

Educating Technical and Environmental Professionals

The Company created a technical education solution known as PATH to address the need for knowledge transfer from retiring refinery employees and internal transfers. The program helps engineers hired after January 2005 develop technical competency and understand business needs.

Refining is introducing a PATH to Environmental Excellence curriculum in 2009 to communicate Marathon's best practices and environmental compliance and fundamentals to junior environmental professionals in refining.

 

Labor Practices

Marathon respects the rights of individuals and supports the United Nations International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work. The ILO Declaration asserts that all people in all states have four fundamental rights: 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.

Approximately 13 percent of Marathon employees in the U.S. are represented by a labor union. Two Marathon facilities are represented by the International Brotherhood of Teamsters. Three facilities are represented by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers Union (USW), and one is represented by the Service Employees International Union (SEIU).

In 2008, the maleic anhydride chemical plant in Neal, West Virginia, negotiated a new collective bargaining agreement with the USW that will expire on September 30, 2011. The two union locals at the Catlettsburg, Kentucky, refinery agreed to merge and adopted one collective bargaining agreement that extended their existing agreements to January 31, 2012. The St. Paul, Minnesota, refinery agreed to an extension of the existing contract to May 31, 2012. In addition, new labor contracts were ratified at the Canton and Texas City, Texas, refineries that will expire on January 31, 2012, and March 31, 2012, respectively. The contract with the SEIU will expire on January 31, 2010.

 

Non-retaliation and Grievance System

Marathon employees have a variety of options for reporting and settling issues, disputes or conflicts without fear of reprisal. The Company promotes open, honest communication in the workplace and encourages employees to first work directly with their supervisor to resolve issues. Local Human Resources consultants and other resources also are available.

The Integrity Helpline is available for confidential, anonymous reporting of suspected or actual violations of the Code of Business Conduct, Company policies, laws or regulations.

For confidential assistance, employees may contact Marathon's ombudsman for conflict and dispute resolution. The ombudsman can refer employees to other resources or channels as needed. In 2008, 85 employees sought assistance from the ombudsman. Major categories of issues were administration of policies, procedures and practices; performance management; and worker morale and job satisfaction.

 

Employee Satisfaction

Marathon conducts employee surveys to identify organizational trends, strengths and areas for improvement. Survey questions measure the key dimensions of alignment, capabilities and engagement. Questions cover innovation/entrepreneurship, performance management, strategic direction, teamwork and other subjects. Individual organizations are addressing issues that surfaced during the most recent employee survey, conducted in 2007. A global survey of all full-time and part-time employees (except SSA store-level employees) is planned in 2009.