Introduction
Superior Energy Services is a company that offers specialized oilfield services and equipments. The company provides drilling services, production-related services, and well enhancement services. The company is segmented, and each segment offers a different service.
Superior Energy Services operates in a competitive sector of oilfield services industry. The industry’s products and services keep changing, and hence, Superior Energy Services is required to continuously improve on quality of its goods and services (Superior Energy Services Inc., 2013). In addition, the company operates in an industry that is vulnerable to operational risks.
Superior Energy Services Inc alleges, “Failure or loss of our equipment could result in property damage, personal injury, environmental pollution, and other damages for which we could be liable” (2013, p. 14). Therefore, for Superior Energy Services to remain profitable and competitive, it should target workers with specialized proficiency and experience.
Future changes
It is hard to predict changes in forces of competition in oilfield services industry. However, it is evident that safety and quality are some of the factors that influence competition in the industry. Oil companies go for service providers that guarantee quality and safety (Smith, 2009).
Even though Superior Energy Services is renowned for safety and quality, it should enhance its services to remain competitive in future. Thus, the company should invest in services differentiation to mitigate competition and improve quality. There is a likelihood of new market entrants in oilfield services industry.
The new entrants may pose a significant threat to Superior Energy Services, especially if they introduce new products and services, or alter prices (Smith, 2009). Hence, Superior Energy Services should ensure that it offers quality services and products at competitive prices. In addition, the company should come up with new products that provide superior performance. It can achieve this by investing in its workforce.
Required workers
For Superior Energy Services to remain competitive in the oilfield services industry, it requires skilled and dedicated employees (Smith, 2009). The company should have a self-driven workforce, which is willing to come up with innovative ideas. Future competition in oilfield services industry will depend on the manufacture of new and superior products and services.
Hence, the company will require personnel with experience in the production of drilling products. Superior Energy Services should have “Staff with skills in manufacture of specialized tools and equipments for use in workover activities and well drilling” (Superior Energy Services Inc., 2013, p. 5). The company should target workers experienced in the manufacture of stabilizers, drill pipes, specialty tabular products, and hole openers.
Superior Energy Services can overcome competition by offering individualized services. The company should target workers that are capable of providing customized goods and services based on the needs of individual clients. For example, the corporation should target employees who can offer customized mechanical and subsea solutions.
Some processes in oil drilling and refining require specialized planning, manufacturing, and engineering services. Thus, Superior Energy Services should target workers who can offer these customized services. Additionally, the company should target workers with knowledge of how to “Maintain and extend oil and gas production during the life of the well” (Smith, 2009, p. 148). The workers should have knowledge of how to operate pressure control equipments and offer slickline services.
Compensation system
Superior Energy Services has a superior compensation system. Workers are paid based on the nature of their work and skills. Personnel working in high-risk areas receive higher salaries and wages than those working in low-risk areas (Kennedy, 2007). Apart from the basic salary, the company pays for extra hours worked.
Employees receive overtime compensation that is computed in harmony with state wage and time restrictions. All workers are supposed to seek approval from their administrators before doing any overtime job. Workers who have been in the business for over 90 days are accorded paid holidays. Besides, all employees have the right to paid leave.
Kennedy alleges, “Superior Energy Services maintains a defined contribution profit sharing plan for employees who have satisfied minimum service requirements” (2007, p. 85). Employees are allowed to make a payment of up to 75% of their salary. The contributed amount is invested, and members share the profit made from the investment.
Besides, Superior Energy Services has a compensation scheme that allows certain workers to postpone up to 75% of their basic salary and up to 100% of their dividends. Contributors get a return on their postponed compensation, which is computed based on theoretical investment in particular joint funds.
Superior Energy Services is dedicated to offering superior benefits to its workers (Kennedy, 2007). One of the most critical reparations the company offers is medical coverage. The company helps its workers to access quality medical services through a medical plan.
Besides, the company covers its employees against life and inadvertent death and dismemberment. As mentioned earlier, Superior Energy Services operates in an industry that is susceptible to numerous physical and environmental hazards. Consequently, the company covers its employees against these dangers.
Superior Energy Services has a retirement compensation plan that caters for designated key workers and the company’s executive officers. Under the compensation plan, the company makes yearly payment to a retirement account, which depends on age and years the employee has worked (Superior Energy Services Inc., 2013).
The compensation plan aims at ensuring that employees have a better life after retirement. Superior Energy Services’ payment system is reflective of the market’s conditions. The company relies on its high-ranking executives and employees with specialized skills.
As a result, the company has established the compensation system as a way to motivate its key workers. The retirement and profit sharing plans not only motivate key employees, but help the company to retain its key personnel (Klein, Crawford & Alchian, 2006). Without the compensation system, Superior Energy Services would lose its staff to competitors and new entrants.
Conclusion
Superior Energy Services operates in oilfield services industry, which is highly competitive. The company is split into numerous segments, and each segment offers a different service. For the company to cope with future strategic challenges, it should target workers with specialized proficiency and experience.
The company should hire employees with skills on how to manage and maintain wells. In addition, the company should hire employees who can help it to develop novel products and services. Besides, it should target workers who can offer specialized services based on customer needs.
Superior Energy Services has a compensation system, which reflects the market’s condition. The company has a compensation system that seeks to motivate and retain its skilled personnel. For instance, the company has established a retirement compensation plan for executive staff and other selected employees.
Apart from a pension scheme, the company offers competitive salaries, wages and medical programs aimed at motivating and attracting skilled personnel. All employees are entitled to holiday and paid leave. Additionally Superior Energy Services’ overtime remunerations are in agreement with national wage and time restrictions.
References
Kennedy, M. (2007). An economic model of the world oil market. The Bell Journal of Economics and Management, 5(2), 79-93.
Klein, B., Crawford, R., & Alchian, A. (2006). Vertical integration, appropriable rents, and the competitive contracting process. Journal of Law and Economics, 21(2), 297-313.
Smith, J. (2009). World oil: market or mayhem? Journal of Economic Perspectives, 23(3), 145-164.
Superior Energy Services Inc. (2013). 2013 Annual Report. Web.