In the short run, developing the employee competencies that Schlumberger needs seems costly. For example, engineers must first compete three years of on-the job training and classroom education in the company before they can be sent to work in the oil fields. In the third year, they must demonstrate their competencies by completing and presenting a major project of their own. The education is not a cakewalk-abut 40% who start the process drop out before completing it . But those who do finish have the competencies Schlumberger needs and are grateful for the experience. Of the company’s top mangers today, 80% were recruited right out of school and have remained loyal employees throughout their entire careers.