As industries look ahead, select priorities require urgent attention before opportunities can be pursued and sustainable future potential to be realized. For oil and gas players, among the most pressing is ensuring a gender parity culture is synonymous with their organization. While the necessary platforms have been provided for men to pursue career development aspirations for generations, the same cannot be said for women, and their far-reaching capabilities being undeniable. Now, though, the tide has rightfully turned. Women empowerment and gender inclusion are universally acknowledged as imperative, yet specific frameworks are required to break long-standing equality barriers.
Despite various diversity and inclusion initiatives being introduced, women accounted for only 22 percent of the workforce as recently as 2019[1], underscoring that the oil and gas sector remains predominantly male-driven. GCC nations are, however, making gender parity progress in their respective markets, with gender parity foundations already in place for oil and gas companies to ascend from rear-end progression.
In 2018, for example, the UAE passed a labor law mandating equal pay for men and women performing work of equal value, while female participation in the national workforce reached 53 percent the following year, up 24 percent from 1990. Similarly, Saudi Arabia aims to achieve women’s workforce participation of 30 percent in line with Vision 2030. Again, levels from 1990 have improved, increasing from 16 percent to 23 percent as of 2019. These efforts only further reinforce that gender parity realities in the oil and gas industry are attainable, with advantages sure to transpire when successful.
Opportunities Await in Oil And Gas
As the industry navigates terrain in which uncertainties prevail, a diverse and inclusive workforce is essential. This viewpoint has been substantiated by BCG research, which sheds light on opportunistic avenues ahead – providing female participation is increased. Firms can be enthused that those with a diverse workforce derive 36 percent more revenue from innovation and are 35 percent more likely to beat the industry. Furthermore, 10 percent of most inclusive large companies have attained 2.3 times greater cash flow, and firms in the top quartile for female board members outperform laggards by 66 percent in return on investment capital (ROIC).
A select number of regional firms are already witnessing the above benefits coming to fruition, garnering acknowledgment for implementing female workforce participation best practices in oil and gas globally – approximately 30-50 percent. However, further progression is now required. The general range of the female workforce currently stands between 5-10 percent, and obstacles must be overcome before long-term progress can be maintained.
Opportunities and Challenges Create a Call for Action
While aspiring to drive diversity and inclusion strategies, industry players cannot overlook clear opportunities and hurdles.
The two most significant opportunities lie with the growth of new functions and the rise of flexible working models. Energy transition and increasing digitalization are making the oil and gas industry increasingly attractive to diverse, high-quality candidates. These growing functions offer the opportunity to hire women at all levels of seniority laterally into the region’s oil and gas sector. Furthermore, COVID 19 has shifted how we work and will continue to drive material changes. Flexible working models are being adopted at various levels. This addresses an important retention initiative for women, especially those in traditionally more on-site roles.
Companies must address specific challenges. First and foremost, inadequate laws and regulations persist. Regulations that safeguard women’s entitlements or improve private sector employment attractiveness are few and far between; an issue made complex by limited supportive policy enforcement. Social pressures also endure, limiting female labor force participation.
In addition, unaligned skills and qualifications are a lingering pain point, as is the insufficient number of career path models. Concerning the former, a lack of information is a key instigator behind skillsets and academic certifications not measuring up to labor market requirements, while certain higher education institutions only onboard male applicants, increasing the capability gap between genders. Regarding career path models, few use cases are there to inspire women and promote available opportunities, and more organizations are required to proactively visualize career development for female staff. Barriers to work complete the equal opportunities conundrum, with a limited female presence at sites and the additional facilities needed to support working mothers particular issues requiring eradication.
As such, a collective effort on the industry’s part is essential for overcoming these challenges, increasing female participation and opportunities, and ultimately achieving complete gender balance in the workplace. This requires a holistic framework, one that implicates every career stage:
- Entry-level: The industry and its incumbents can encourage female involvement in STEM programs. In doing so, the talent pool will gradually become replenished, and oil and gas sector attractiveness will be enhanced as more women take up flexible positions with a view to professional progression.
- Mid-career level: Actions that ensure women have the same opportunities as men should be multiplied. These efforts can be boosted by personnel with the competencies needed to offer guidance and internal policies that mandate work-life balance equality for all.
- Executive level: By ensuring that promotion requirements are applied fairly, progression will be measured at every level and the route to senior leadership positions clearer.
With decisive action that drives reform, the oil and gas industry can overcome long-standing gender equality barriers, positioning women to realize the professional potential men have been accustomed to for decades. In doing so, females will have an even playing field to fulfill their ambitions as per national sustainability roadmaps, subsequently giving rise to newfound organizational performance and workplace prosperity.
[1] https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Gender_perspective_2019.pdf