As the energy sector undergoes transition while facing uncertainty in a complex environment, it is critical for leaders to retain and reskill current workers while attracting new talent with varied backgrounds and capabilities.
Talent strategy is becoming an existential priority in the energy sector, which is the result of several pressures challenging the ability to find, hire and retain talent. These challenges include a wave of retiring professionals, demand for new roles to build out new businesses, and a talent drain from the energy sector to technology or renewables sector.
To address these gaps, companies are rethinking how and where to expand the funnel for potential new hires, while also innovating and experimenting with new strategies to retain and reskill the workforce that keeps their current businesses running.
Here are the top three strategies that oil and gas companies can adopt to find and retain talent:
Winning new talent with diverse perspectives
Energy companies need to attract employees with new skills and capabilities, often from more diverse demographics than the current workforce. Some of this talent will need to be pulled from the technology, finance or public sectors, and they’ll bring in new perspectives on solving complex operational challenges.
Similar to current employees, they want to feel included in the companies they work for, and they want to know they’re experiencing an equitable talent journey, no matter their role.
According to research by Bain & Co, many senior leaders may have a rosier picture of inclusivity in their companies than the new hires they’re hoping to hire from other sectors. Across several factors, senior executives rated their organizations as more inclusive compared to entry- and mid-level employees.
This challenge makes it harder for energy and natural resources companies to make their organizations more inclusive to a diverse pool of talent. They can make it hard to stem the “leaky bucket” effect, in which well-intentioned recruiting efforts bring in racially or gender-diverse employees—who then leave the organization because they don’t feel like they belong there.
Sustainability at the core
According to the 2022 Global Energy Talent Index report (GETI), more than half (54%) of oil and gas workers are considering moving to the Renewables sector, citing climate change concerns as the main reason behind this desire.
When climate change is placed at the heart of a company’s practices, it shows employees that their concerns are being valued. This can help engage and motivate workers who want to make a difference, according to international workforce solutions provider Airswift.
Only 42% of oil and gas workers said that their company has pivoted to clean energy so far. But of those, 82% feel positive about it. This means that there is significant opportunity in creating a strategy that will play a key role in preventing employees from moving toward other companies.
Oil and gas companies must set meaningful goals that resonate with their workforce. According to the GETI report, 85% of workers say that ESG concerns are now a factor in whether to join or leave a company. Organizations must therefore create a specific ESG strategy, complete with goals and buy-in from stakeholders.
According to experts, however, companies shouldn’t just focus on the ‘E’ of ESG.
On the governance side, oil and gas has always been tightly regulated and generally well-run. But the ‘S’ or social aspect deserves some attention. For instance, oil and companies must evaluate if they’re doing enough to promote diversity and inclusion.
Show me the money (and benefits)
21% of young workers cite low salary as a reason for leaving the energy industry, according to Brunel’s Energy Outlook 2022 that surveyed about 17,000 people worldwide across the energy sector. While one cannot expect to start their career on top dollars, adopting a structured salary scheme is a powerful way employers can inspire younger workers to stay on, allowing them to see a clear path of progression ahead global recruitment services firm Brunel.
Within the energy industry, higher salaries offered by renewables and mining are causing workers to migrate away from oil and gas – another reason for the traditional energy sectors to think outside the box when it comes to salaries. With the lack of good benefits cited as the third main reason to leave the energy industry, forward-thinking companies should focus on creating attractive benefits packages to support pay checks – incentives such as a health plan, bonus schemes, housing transport, and overtime compensation have all proven enticing to younger professionals in a competitive labor market.