Oil and Gas Companies: Talent Shortage is a Major Concern

September 16th, 2011

It is a general concern across the entire oil industry that talent shortages will continue to plague companies over the coming years. According to a recent survey conducted by a joint effort of Rice University and Ernst & Young LLP, almost 90% of all senior HR managers at 22 top international oil and gas companies call this issue one of the top 5 business concerns facing their industry. A whopping 88% believe that personnel shortages will result in poor growth and financial performance for all energy companies, a problem for an already challenged industry.

The in-depth survey included several areas, including a rating scale of 1 to 10, in which the HR leaders were asked to indicate how serious these staffing issues are. Here are just a handful of the top issues pertaining to staffing shortages:

  • Corporate Growth as a Result of Inadequate Staffing = 7
  • Financial Performance Due to Rising Costs = 6
  • Development and Innovation Inhibitors = 6
  • Operations/Safety Problems = 6
  • Corporate Reputation in the Energy Industry = 5

It appears that the findings show that the greatest problem oil and gas recruiters face is competition from other staffing agencies whose primary focus is on this growing and very lucrative industry. Of the 22 HR executives surveyed, almost all ranked this issue an 8 out of 10. Another major concern: the increased need for higher compensation to attract the best candidates to fill assignments at all levels.

Dina Pyron, a Human Capital leader within Ernst & Young’s global oil and gas center stated openly that, “It is clear that the talent void in the oil and gas industry has transformed from an organizational challenge into a critical business issue,” further adding that, “The lack of key talent could potentially impact corporate growth, financial performance, safety and reputation. This should raise a red flag to leadership that immediate and innovative solutions are necessary.”

The Ernst & Young and Rice University survey clearly indicates that to improve recruiting efforts, HR departments and staffing agencies must work together to accomplish higher wages for candidates, recruiting in bulk, focusing on the next generation of workers, and customizing hiring practices for offshore efforts. Other solutions to this dilemma include offering new hires creative benefit and retirement packages.

For more information about opportunities in the oil and gas industries, or for support with your recruiting efforts, visit Stark Talent today!