In light of the Oil and Gas industry’s skills shortage, familiarizing oneself with novel strategies is imperative.
Activities ranging from production and refining to distribution and exploration are all included in the oil and gas industry. Each of these call for a unique combination of abilities and knowledge. However, locating people with the required qualifications is harder and harder as the business gets more specialized and complex.
It’s crucial to first inquire why the energy industry, among the biggest and most prosperous of the last century, is having severe difficulties filling positions before turning our attention to potential remedies. Some of the generally accepted pathway causes are listed below.
The Magnificent Crew Swap
The phrase alludes to the problems of replacing the baby boomer generation’s expertise and experience in the oil and gas business as they approach retirement. As baby boomers approach retirement age, the sector is confronted with a phenomenon commonly known as a “skills gap” or “knowledge gap.”
The average age of oil and gas sector employees now paints a worrying image. Just 4% of sector workers are between the ages of 18 and 24, while a startling 20% are over 55, according to the GETI survey. This implies that a sizable fraction of the labor force is getting close to retirement age, creating a void that has to be filled by less experienced, younger workers.
As baby boomers retire, their many years of wisdom and expertise are hard to replace, making their retirement particularly difficult. Their knowledge is essential for guaranteeing decision-making, safety, and operational effectiveness. The disappearance of this knowledge may significantly impact the industry’s capacity to operate efficiently.
Fewer millennials are opting for petrol and oil.
A significant obstacle is the way younger employees’ priorities are evolving. In contrast to earlier generations, younger workers place greater importance on aspects like job advancement, chances for innovation, and work-life balance. Because the oil and gas sector has historically been associated with rigorous work schedules and a poor work-life balance, younger professionals who value personal and family time find it less tempting. Due to this change in priorities, the industry is finding it more and more challenging to draw in and keep young talent.
Restrictions on immigration and travel make the issue worse. Professionals in the oil and gas sector frequently have to work in far-off or foreign places. Nonetheless, prospective employees could be reluctant to choose occupations requiring a lot of travel or relocation in light of the tighter immigration and travel regulations.
Expanding the pool of candidates is also a difficulty in and of itself. Historically, the sector has depended on a limited number of experts possessing specialized technical abilities. The sector must evaluate applicants with transferrable abilities from other industries and broaden its selection criteria to attract new talent.
Hiring Managers: How Can They Close the Skills Gap?
Recruitment managers and other business decision-makers are challenged due to the skills gap in the oil and gas sector. Many of those who make hiring decisions are already in the trenches, leading teams to complete tasks on time and under budget. This may make it harder to find talent without incurring additional expenses or delays.
Numerous businesses in the sector have already recognized the issues surrounding the skills gap, and GETI data demonstrates the steps they are taking to address the issue. For non-hiring professionals, pay has increased since our last research; 44% of employees reported a pay increase from 31% the previous year.
However, the oil and gas business has realized that increasing pay is not the only solution to the skills gap and must implement other tactics.
Develop Your Staff
In addition to improving the capabilities of their personnel, organizations can close the talent gap caused by the retirement of skilled employees by offering extensive and focused training options.
The benefits of educating current personnel are numerous. First of all, it results in more productivity and better performance. Continuous training allows Employees to stay current on industry practices, legislation, and innovations. This gives them the information and abilities to carry out their tasks successfully and efficiently.
It is crucial to remember that practical and theoretical elements should be included in training programs. Practical experience is just as important as theoretical understanding in the oil and gas sector. Training programs ought to give personnel chances to utilize their recently acquired abilities in authentic situations, augmenting their comprehension and self-assurance.
Oil and Gas procedures are streamlined via tech automation.
Although there are many advantages to automating tech-savvy activities in the oil and gas sector, there are also certain disadvantages that should be considered.
Increased safety is one of automation’s main advantages. Repetitive and dangerous jobs can be automated to help businesses lower their risk of injuries and crashes. Human exposure to possible hazards can be reduced by using machines to do jobs like remote equipment monitoring in hazardous areas or pipeline inspections.
Automation improves the capabilities of data analytics as well. Machines can gather and analyze enormous quantities of data in real-time, yielding insightful information for operational optimization and decision-making. proactive upkeep and resource allocation are made possible by automated processes’ ability to recognize patterns, spot abnormalities, and forecast problems.
But there are disadvantages to take into account. Even though robots are capable of extreme accuracy and efficiency, they lack the creativity and human touch needed for many difficult data science projects. Machines could find it difficult to discern subtleties or develop complex conclusions from vague or insufficient data.
Extending Your Talent Search to Include Additional Sectors of the Economy
Given that 49% of professionals said they would consider switching to the oil and gas sector if asked, it is evident that expertise is leaving the industry for other sectors, especially renewables. Counterattacking is the most effective strategy, and Oil and Gas companies should look into other industries, such as technology, to discover expertise that fits with their business.
Hiring managers may offer new ideas and knowledge to the business by looking for people with practical experience in cutting-edge technologies like cloud computing, artificial intelligence (AI), digital twins, and the Internet of Things (IoT).
It’s crucial to remember, too, that experts from other fields could need some time to fully comprehend the unique subtleties of the oil and gas industry. They might need to become acquainted with industry rules, safety procedures, and operating guidelines. Companies should give these experts the necessary training and assistance to help them adjust to the particular demands and problems of the oil and gas industry to facilitate a seamless transition.
Project execution can be optimized by strategic outsourcing.
The oil and gas industry’s skills shortage may be strategically addressed through outsourcing jobs and projects. Companies can access a larger pool of specialized knowledge and abilities by forming partnerships with outside businesses to finish tasks and projects that require certain training or experience.
One of outsourcing’s main advantages is access to talent for short-term projects and tasks. Oil and gas firms can close the skills gap in their workforce by adding professionals with the requisite training and experience to complement their current personnel. Whether it’s particular knowledge, project management abilities, or technical proficiency in specialized fields, outsourcing offers a cost-effective way to meet short-term demands without committing to a long-term workforce.
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Takeaway:
Can outsourcing your global employment needs benefit your company?
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