As the entire energy spectrum experiences labor woes, the oil and gas industry is on the hunt for a solution to its ongoing talent shortage. While businesses typically resort to quick fixes, they are just a temporary bandage and not the true answer – a consistent, dependable workforce candidate pool that meets standards and the amount of work ahead.
While recruitment challenges have occurred in the industry for decades, the major downturn between 2015 and 2017 curtailed hiring, followed by the industry’s recovery in 2020 being abruptly halted as a result of the COVID-19 pandemic, also impacting the development of future workforces. Additionally, the industry’s public image has been cast in an unfavorable light due to concerns over carbon emissions and their long-term impact on global health, deterring new talent as clean energy continues to be a topic of discussion for countries around the globe. However, despite this truth, many are drawn back to the sector by the attractive compensation packages, which offer a 20% return, compared to the 8% seen in the renewable energy sector. But this alone is not enough for a solution.
The industry is also facing competition brought on by the shift towards remote work in the post-COVID era, with base salaries ranging from $50,000 to $60,000 without the need to commute or handle heavy machinery. This shift has resulted in approximately 35% of the job market showing reluctance towards fieldwork, in exchange for positions available from the comfort of their homes. Even more, the rise of the gig economy has further fragmented the candidate pool, as more individuals opt for multiple online engagements over traditional full-time or contract employment.
As the oil and gas industry grapples with a persistent labor shortage set off by this competition, the impacts are felt across all levels of operation, from reduced productivity to delayed projects. Despite these hurdles, there are strategic solutions that can help bridge the talent gap and ensure the industry remains robust with skilled workers. By addressing these challenges head-on with innovative and forward-thinking approaches, companies can both survive and thrive in this demanding environment.
Leveraging Transferrable Skills from Related Industries
To mitigate the talent shortage, it’s crucial to identify candidates with transferrable skills from related fields. While the oil and gas industry has technical requirements specific to its verticals, many skills—such as project management, problem-solving, and safety protocols—are applicable across various sectors. By actively seeking candidates from industries like manufacturing, construction, maritime or engineering, companies can tap into a broader talent pool that has a solid foundation to build on. From there, these individuals can then undergo targeted training to adapt their skills to the specific needs of their oil and gas position. Finding talent outside of one’s industry often requires the help of a professional staffing firm with an existing network of candidates in a variety of industries. The right firm is in the unique position of connecting candidates with roles and companies they’d be a good fit for but unsure how to connect – and vice versa.
Offering Competitive Compensation
While up against challenges and competition like remote working, oil and gas companies need to prioritize competitive benefits packages more than ever before. From salaries and wages to healthcare benefits and retirement plans, candidates weighing options need to feel confident in their return.
Supporting Education and Training
Whether providing on-site training and education or partnering with universities, community colleges and high schools, oil and gas companies have options when it comes to the channel, but not when it comes to if they support educating the next generation. Preparing for the future means training millennials and Generation Z to fill the roles being left open by retiring longtime employees.
Implementing Innovative Recruitment Approaches
Companies must think beyond traditional recruitment methods. Instead of relying solely on job postings, they should collaborate with specialized recruitment agencies and personnel providers. These agencies have extensive networks and can proactively identify potential candidates.
Additionally, leveraging technology is crucial. By partnering with these agencies, businesses gain access to tools that help cast a wider net outside their networks, allowing them to reap the benefits of proprietary technology (robust applicant tracking systems, strategic personnel search, analytics, etc.) often developed to find qualified individuals more efficiently, even in today’s challenging labor market.
Addressing the labor shortage requires a multifaceted approach that combines strategic thinking, external collaboration, and technological advancements. By implementing these solutions, the oil and gas industry can build a resilient workforce for the future.
Company Founder and CEO Matt Fuhrman has always believed in serving others. Fuhrman's experience in the United States Merchant Marine Academy and as a US Navy Reserves Officer instilled a strong sense of responsibility and dedication to his friends, family, and fellow servicemen and women around him. After many years working as a merchant marine, Fuhrman's experience inspired him to take his passion for helping people to the next level and start his own company.
In 2012, Fuhrman established Core Group Resources to connect people to their destinies by providing employment solutions that match their passions in life. The company's vision, a world with no unemployment, emphasizes doing business in a way that upholds certain core principles, namely being God-centered, conducting business with honesty and integrity, promoting positivity, encouraging self-motivation, prioritizing results, committing to growth, and providing service above oneself.
With Fuhrman at the helm, Core Group Resources lives out its core values in business and within the surrounding community through its many charitable contributions, outreach missions, and organizations like Core Group Cares.
