To bang on a well-beaten drum, the shortage of skilled personnel in the oil and gas industry remains a big challenge.
A recent report released by DNV GL highlights some worrying statistics, as nearly half of those polled cite skills shortages and the ageing workforce as major concerns.
Indeed, these are identified as the industry’s top-most concerns as barriers to growth for Europe and North America, so this is a drum which most definitely needs to be heard.
The convergence of key factors specific to the industry further emphasises the need to think carefully and act strategically in relation to the recruitment and retention of key staff. The shift in geographic centres of production changes the demand for where people are physically required and can trigger the need for different expertise, as the industry pushes into more challenging environments.
Industry-wide concern is arising from uncertainty over future oil and gas price levels, coupled with increased competition between employers for staff and the consequent rising head-count costs. This means that employers may come to expect even more from those prized employees possessed of the key skills and attributes required to help achieve success in an increasingly demanding industry.
According to the Oil & Gas UK Offshore Workforce Demographics report, the greatest growth in the UK’s offshore workforce from 2012-2013 has been in young and middle-aged personnel. This goes some way to dispel the “ageing workforce” challenge, at least in the offshore arena.
Whilst this is encouraging news, it does not mean that employers can become complacent. The global competition for skills, both on and offshore, is undeniably persistent and therefore should remain a topic for serious consideration at the highest level within organisations, industry bodies and government, particularly given the ever-constant scarcity of engineering skills.
The skills shortage is often exacerbated by companies being close-minded when it comes to recruiting people from other industries. Due to rapid growth at Meta, we’ve consciously chosen to think outside the box and not just focus on hiring from within the oil and gas industry. We’ve employed from secondary and higher education, the mining and motor industries, as well as the armed forces and the emergency services.
When only recruiting from the same small talent pool, sometimes companies can get stuck in their ways. Recruiting from other industries can add a fresh perspective to your organisation and challenge the company in a positive way.
It’s imperative to realise too that whilst recruitment is a significant challenge, retention should arguably be of even greater concern. It’s one thing hiring the best people but holding on to them is another thing entirely. The village reality particular to the north-east of Scotland means “everybody knows everybody” and leads to frequent poaching. Companies in the industry now have to offer more innovative packages, engaging development, and a compelling work culture to retain their valuable employees.
Further afield, it was estimated by the US Energy Information Administration that at the end of 2013, the US would be the world’s top producer of petroleum and natural gas hydrocarbons, surpassing Russia and Saudi Arabia.
It’s reasonable to speculate that as the world economy strengthens, increased energy production and demand will perpetuate a continued need for key skills and sustain fierce global competition for these. To ensure the talent pipeline supplying our industry provides a continuous and adequate flow, businesses need to think long-term.
Educating the young about the industry and what it offers, building relationships with universities, providing engaging apprenticeships and placements, recruiting from other sectors to enable highly knowledgeable personnel to transfer their skills and ensuring retention is treated as high priority, are just some of the steps we can take to ensure our industry can continue to grow and remain an exciting and prosperous place to work. Can you hear the drums?