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Workforce planning at British Gas

Curriculum Topics
Human resources
Training
Workforce planning
Selection

Introduction This case study explores how British Gas manages the recruitment
and selection of new employees.
British Gas is part of the Centrica Group. It is the countrys best
recognised energy brand. Centrica is a multinational company, The role of human resource management
with businesses in many countries. Centrica was formed in 1997
and consists of eight separate energy-related businesses, ranging Managing a successful large business involves acquiring,
from the supply of gas and electricity to consumers and developing and maintaining a wide range of resources. These
organisations in the UK and Europe, to storage of gas for other resources include materials, buildings, land, equipment,
providers, and drain and pipe work maintenance. technology and, crucially, people. Any organisation needs good
employees who have the right skills to achieve the companys
The UK energy market is highly dynamic. Customers look for the aims and objectives. Human resource management (HRM) is
best deals and are increasingly prepared to switch suppliers. In the business function that focuses on the people aspects of an
2007, 900,000 customers switched energy providers. An energy organisation. It ensures the efficient management of people in the
company needs to show it is not just competitive on price, but business. It is responsible for ensuring that an organisation has
that it can also provide the right levels of customer service to the right people to deliver its overall business plan.
attract and retain customers.

Centrica, the parent corporation of British Gas, has to deliver long-


British Gas does not only supply gas but also deals with the
term profitability. Its shareholders expect the business to show a
installation and maintenance of domestic central heating and
return on their investment by making profits, now and in the
appliances. It provides a maintenance and breakdown service for
future. British Gas needs to contribute to these profits. This means
electrical white goods and home wiring. Through the Dyno brand,
British Gas also offers drain clearing services, plumbing and home consistently meeting the needs of its customers with competitively
security services. priced products and services that give good returns to the
company. Residential consumers across the country are the core
To deliver these services, British Gas needs high calibre staff. It customer base of British Gas. These customers expect top-class
employs more than 9,000 trained gas engineers to install and service at keen prices. If British Gas does not meet this standard,
maintain central heating and gas appliances. the company may lose business to competitors.
GLOSSARY

Aims: The general end purposes Human resource management Shareholders: Persons owning or Customer base: The main basis of
towards which an organisation focuses (HRM): The management of employees holding a share or shares of stock; a customers for a business.
its activities. within an organisation. stockholder. Competitors: Other producers
Objectives: The desired outcomes for supplying similar goods or services.
individuals, groups or organisations.

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British Gas runs an intensive apprenticeship programme. This


is delivered in training centres. Trainees should expect to qualify
by year five. All domestic gas engineers become fully
acquainted with the latest computer-aided diagnostic
technology.
There are also traineeships, which provide a way for new
recruits to learn about the gas industry and gain relevant skills
and qualifications.
British Gas provides technical training for all its engineers
throughout their careers. This ensures that its employees are
kept up-to-date with new information and technologies to
To ensure customer satisfaction, British Gas engineers must have enable them to provide the best service possible.
the technical skills to undertake work to the required standard and
the people skills to deliver good customer service. Through its Training does not simply focus on technical skills and knowledge.
engineer recruitment team, the British Gas Academy must Most employees have direct contact with customers, so it is
therefore ensure that the company attracts and retains the best important that they have good people skills. Awareness training is
engineers. This involves several complementary tasks. It requires provided for employees across British Gas through an online
planning to assess the future needs for skilled employees at learning package. Another programme is improving staffs cultural
British Gas. It requires a recruitment and selection programme to awareness, particularly to support the growing international
bring new people into the business. It requires a training operation operations at British Gas.
to equip new recruits and existing employees with the right skills.
Workforce planning
Importantly, British Gas must also ensure that it retains its best
people. It is much more cost effective to retain trained and highly Workforce planning is the process of assessing a companys
skilled staff than recruit and train up new people. British Gas seeks current and future labour needs. The British Gas Academies must
to retain people by offering a mix of financial and non-financial consider not just overall employee numbers but also the skills that
benefits. As well as good pay and a pension scheme, the company will be required within the business. Workforce planning also
provides employees with the opportunity to buy shares in Centrica involves managing any training and recruitment process to ensure
and it offers a great place to work and high-class training. the organisation has the right staff in place.

Training
As an expanding business, British Gas needed to increase its
workforce to meet customer demand. At the end of 2002,
British Gas established the British Gas Academy. The Academy
has helped to develop and refocus training facilities to handle the
extra training requirement in recruiting an additional 5,000
employees into the engineering workforce.

There are several training routes:

Apprenticeships Traineeships Technical training


GLOSSARY

Workforce planning: Looking ahead at


factors inside and outside of the

1
business to plan HR needs.

2
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Managers at British Gas conduct a programme of forecasting to Recruitment


predict how much the UK market for domestic gas engineering
services will grow. This helps the company decide how many As part of its workforce planning, British Gas implements a
additional engineers it will need in the future. British Gas makes diversity and inclusion strategy using tailored action plans. This
detailed forecasts of its demand for engineering personnel for one means it actively seeks new recruits from a wide range of
year in advance and makes more general estimates for a further backgrounds.
two years into the future.
The need to recruit a diverse engineering workforce is seen as
At British Gas, workforce requirements are driven by two different critical by British Gas. It plans recruitment to ensure it has a
demands. First, there are contract customers that have service socially inclusive workforce. This is important as it will enable
agreements with the company. Second, there are customers who British Gas to reflect the diversity of its customer base. For
call for one-off assistance if they have a specific problem. example, it is useful to have employees from different nationalities
Demand for both these services has grown. In the last three or and backgrounds to communicate with customers that do not
four years, the need for engineers has expanded accordingly. This speak English as a first language. Recruiting more women
has meant that it has had to recruit more staff. engineers may help to attract female customers.

There are several other factors that influence workforce planning To dispel the myth that only men can be good engineers,
for British Gas. Engineering skills need to be constantly updated. British Gas runs a Georgina and the Dragon campaign. This has
Health and safety issues are also critically important in the gas had some success. The British Gas Academy has won an award
industry. Health and safety regulations are changing all the time from Women into Science and Engineering as well as a national
and EU regulations must also be considered. Apart from regular award from the Council for Registered Gas Installers (CORGI) for
formal training to close skills gaps to ensure engineers stay up to its efforts to encourage and attract women into the engineering
date with technical matters, British Gas can alert engineers about workforce and into plumbing and associated trades. In May 2008
technical changes via field radio or text messaging. the recruitment team at British Gas was recognised by Opportunity
Now, winning the prestigious award for Inspiring the workforce of
Engineers can work all their careers in the field until they retire. the future.
Qualified engineers may spend up to 10 years gaining their skills,
qualifications and experience. They have valued practical skills that British Gas tries to appeal to a varied and diverse audience when
are needed to deal with equipment and customers. However, promoting its apprenticeships. To advertise opportunities widely,
British Gas also needs suitable people for promotion to higher roles, British Gas uses specialist Sky channels like Parliamentary
such as management jobs. It needs managers to plan, organise Projects TV, which focuses on careers, and Passion TV, which is
and co-ordinate the teams of engineers. It therefore needs to aimed at the black community. In print media, it uses womens
attract and recruit a wide range of people into the organisation. magazines, publications targeted at ethnic minorities such as The
Muslim Weekly as well as other careers directories for the same
reason. Other channels include radio, newspapers, British Gas
website (www.britishgasacademy.co.uk) and a DVD for schools.

Recruiting gas engineers of the right level is important.


Candidates for a British Gas apprenticeship must be at least 17
years old, have a minimum of four GCSEs at grade C or above or
equivalent (e.g. NVQs) and hold at least a provisional driving
licence. However, they need more than academic qualifications,
they must be able to show some aptitude for customer service,
such as being able to listen to customers and understand their
requirements.
GLOSSARY

Diversity: Workforce that contains Recruitment: The process of attracting Socially inclusive workforce:
people from a wide range of people to apply for jobs. Ensuring through recruitment that a
backgrounds, races and sexes. company does not exclude any
particular group in society from its staff.

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British Gas uses an online application form. To help British Gas The total scores from the three-part assessment help British Gas
decide an applicants suitability, this includes a value-based to decide who receives a job offer. Candidates are notified of the
questionnaire. This requires responses to a series of statements outcome within 14 days. All candidates can receive feedback.
about attitudes to work. There are 90 statements in all, and an
applicants overall responses are rated either green, amber or red. For those candidates offered a job, British Gas provides the usual
The colour reflects the attitudes the applicant has about work and job benefits including a van from the outset and a competitive
people. This helps to show which roles a person is best suited to. starting salary. The new recruits then go on to benefit from the
British Gas does not take applicants with red ratings further as comprehensive programme of training through its Academy. This
they may not show a fit with the company requirements. ensures that they are given the best start in their new careers. It
However after an initial screening, green and amber applicants also builds employee motivation and commitment to the company.
are invited to an interview and assessment centre for the final Recruiting and selecting staff is an expensive process. By following
selection process. Here, candidates must show evidence of a robust selection programme in this way, British Gas is able to
qualifications, ID and driving licence. ensure it gets the right people with the right skills. It also means it

The Times Newspaper Limited and MBA Publishing Ltd 2010. Whilst every effort has been made to ensure accuracy of information, neither the publisher nor the client can be held responsible for errors of omission or commission.
maximises the benefit from its investment.
Selection
Conclusion
At the British Gas assessment centre the emphasis is very much
upon core competencies and life skills. Life skills are personal Recruitment and selection at British Gas is driven by the need to
skills that are likely to affect the customer experience when maintain the competitive position of the company within the
someone is working in the field. British Gas engineers needs to energy market. Domestic gas customers demand the very highest
show courtesy and politeness, for example. These are personal standards of service. They can be assured that British Gas
qualities that have a direct impact upon customer perception. engineers have high-level skills and expertise through its careful
Core competencies involve team working, interpersonal skills specification of entry qualifications followed by top quality training.
(such as dealing with people), motivation and responding to British Gas also assesses the personal attributes of staff through
change. These are crucial skills that can affect the way an role play and questionnaires as these influence customers
individual fits in and works within an organisation. perceptions of the service and the company.

Great care is taken in determining the organisations future staffing


Candidates attend the centre for a half-day assessment. This has
needs. This drives the recruitment and selection process to
three elements:
ensure British Gas is seen as offering dynamic and exciting career
paths for people of all backgrounds. By developing and nurturing
its people, British Gas ensures that new recruits have the right
An interview is based around questions

1 relating to the completed online value based


questionnaire. These responses are scored.
qualities to help the business to compete.

1. What is the main purpose of workforce planning at


British Gas?
Then, candidates are required to

2 demonstrate customer service skills in


2. To what extent is workforce planning important in
QUESTIONS

scored roll play situations.


helping British Gas achieve its aims?
3. What benefits do British Gas application, recruitment
and selection processes give to both applicants and
Finally, there is a manual dexterity test the company?

3 involving a wiring exercise. Has the


candidate got the ability to handle delicate
small components?
4. It could be said that recruitment is the most important
function within British Gas. What arguments would
you use to support this view?
GLOSSARY

Screening: Initial checks to see that Life skills: Social, communication, Core competencies: Strengths and
applicants meet the basic requirements decision making, goal achievement, and abilities of an organisation that enable it
for employment. problem solving skills. to provide goods or services that
customers want more than those of
close competitors.

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