The oil and gas industry faces unique challenges in the changing global landscape, especially when looking to successfully plan for talent planning, talent acquisition, talent management, and compliance. While there are several concepts to keep in mind for the oil and gas industry, there are three major trends that the industry needs to look to if they are to be successful in planning, acquiring, and optimizing their workforce.
The oil and gas industry is experiencing an aging and changing workforce. Organizations are experiencing a gap in workers aged 30 to 50 and expecting over 50 percent of the workforce to retire in the next five to seven years. This is resulting in significant challenges in how organizations plan for and acquire new workers in the upcoming years. Oil and gas organizations have to allow workers more flexibility, including which workers they work with and the kind of employee contract they engage with. In general, employees in the oil and gas industry are gaining more control over the type of employment contract and work they engage in. Contracting is an especially popular form of work for older workers as they retire but still want to use their skills in the workplace. This is a major challenge for oil and gas companies in that they cannot rely on worker loyalty anymore but need to rely on different measures.
When many people think about the technological revolution, they focus on the innovations of the IT industry – smart phones, tablets, cloud computing, etc. However, new technologies have also impacted the oil and gas industry. This includes innovations in oil and gas technology, including fracking. Fracking has allowed upstream organizations to target many of the same locations and thus brings about challenge with lack of talent and labor in these locations. So, organizations who can acquire talent within them will win in the future.
Oil and gas is one of the most highly regulated industries around the world, making compliance a major priority. Due to the geopolitical risk and regulations on oil and gas companies, oil and gas companies who want to win are implementing systems to allow them to have flexibility while remaining compliant.
Due to macroeconomic and geopolitical forces that are changing the oil and gas industry, organizations who want to win are implementing efficient and innovative workforce acquisition and management strategies allowing for scalability, cost efficiency, and compliance. Those organizations that plan for the future will prevail as leaders in the industry.
Bill Peters, Managing Director of Strategic Client Solutions for TAPFIN, discusses the increased utilization of MSP programs to manage contingent workforce in the oil and gas industry.