The battle for conventional tech expertise is becoming less intense, while new skill kinds are heating up. We see three future HR themes in oil and gas, each with consequences for HR strategy and operating style.
Table of Contents
- 1 Disruptions that are altering the role of human resources
- 2 Abundance of resources
- 3 Struggle for new talent
- 4 Mindsets and habits; are required to prosper
- 5 What Does the Future of Human Resources in Oil and Gas Look Like?
- 6 Corporations Will Place a Greater Emphasis on Continuous Training
- 7 New Generations, New Expectations
Disruptions that are altering the role of human resources
During the recent decade, the oil and gas industry faced resource depletion, which resulted in high oil prices for the majority of the time. When mixed with globalization, this resulted in large – scale “battle for expertise” and the establishment of centralized technological services capable of deploying limited talent around the world.
The heightened emphasis on risk and compliance caused by the Texas City and Macondo events hastened the march toward centralization. Transformation in a centralized decision-making system necessitates explicit mandates from the top, generally via governance change programs.
Nevertheless, these fundamental shifts are causing havoc in the oil and gas business, with serious consequences for industry participants:
Abundance of resources
The abundance of resources and the need to be prepared for a sustained period of reduced oil prices, as well as an emphasis on cost, efficiency, and speed Traditional talent is no longer rare, ccexploratory competence is less of a differentiator, megaprojects are not the only route to grow, and market potential may only be economically feasible for the basin’s first movers.
Significant technological advancements are upsetting traditional working methods and offering significant productivity increases. Workers (particularly knowledge workers) are being replaced on a wide scale by automation, and the positions that remain demand more human-machine interaction. Data generation continues to increase quickly as more gadgets connect to the cloud. This data boom, paired with modern analytics and machine-learning capabilities, allows businesses to reinvent how and where work is done completely.
Struggle for new talent
The struggle for conventional engineering knowledge has cooled, but the struggle for new abilities and talents has heated up. Companies, in particular, want digital business expertise, particularly employees with industry, leadership, and digital capabilities which can function as “translators” between business needs and digital solution providers.
Mindsets and habits; are required to prosper
Like new skills and competencies, mindsets and habits are required to prosper in any oil job in Canada. Day-to-day leadership competencies, for example, must continue to evolve as the oil and gas industry becomes more like other industrial industries, with an emphasis on efficiency and continual improvement.
This necessitates a cultural and organizational transition toward more independent frontline leaders and teams while not jeopardizing safety.
These modifications will result in a flatter structure in which the right talents for the work at hand become increasingly significant relative to the person’s rank in the hierarchy. Simultaneously, technology alters the way we communicate and access information across corporate boundaries.
People at lower levels of an organization can make increasingly informed decisions with fast access to information and knowledge. Exploring these options carefully will not only help to achieve direct commercial results but will also help to meet the next Generation of talent’s demand for more meaningful employment
What Does the Future of Human Resources in Oil and Gas Look Like?
The Future of Oil and Gas:
The oil and gas sector relies on the people who work in it. If there are clever and skilled people in the profession, the energy business will continue expanding and thriving. Human resources are the source of this skill and education. A corporation will be in turmoil if it lacks a strong HR team.
The oil and gas business will evolve in the next years, as will the function of HR representatives in the field. Let’s look at the future of human resources in the energy industry.
AI Simplifies the Hiring Process
HR is one of the most promising applications of artificial intelligence. AI tools can help you enhance the wording of your adverts, search through heaps of applications to identify specific requirements, and even eliminate prejudice throughout the recruiting and recruitment process. These jobs are frequently completed faster by AI tools than most human resource departments, allowing you to streamline your operations.
Many HR departments utilize AI tools to augment, rather than replace, their function. The robot is not replacing you but rather making your job easier. We’ve previously seen how the oil and gas business suffers from a skills gap. HR managers should not allow outstanding talent to slip through the cracks because they overlooked a resume or became bogged down in minor responsibilities.
The Energy Sector Will Diversify
A recent EY poll investigates the significance of gender diversity in the oil and gas industry. Even though 94 percent of individuals believe diversity is vital in navigating upheaval in the industry, only 11 percent of top oil and gas executives are women. This figure is set to change, with 98 percent of respondents thinking the oil and gas business would see massive changes in the coming years.
The energy sector’s diversity challenges are not limited to gender. Oil and gas are becoming a more global industry, and the best candidates for your position may come from a different country. Your organization will almost certainly work with people who speak different languages, follow different cultural conventions, and have different expectations of their employers. Human resources departments that value and celebrate diversity will have an easier time in the coming years.
Corporations Will Place a Greater Emphasis on Continuous Training
Over the last decade, companies have raised the average time and expenditure allotted for training per employee. Employee training develops the staff and makes internal promotion easier for your firm. You control what your staff knows and how frequently they are updated.
For instance, in June of last year, Safety+Health magazine released its annual training study.
More than half of employers (56%) spent the same amount on safety training year after year, while 34% increased their annual investment. Thirty-nine percent of the latter group indicated an increase in training spending to broaden the scope of the instruction. This assessment solely focuses on safety training, but the oil and gas business is spending on hundreds of additional training topics.
New Generations, New Expectations
Like that of most sectors, the future of oil and gas is becoming more intergenerational. Some baby boomers remain in the labor force, working alongside their younger millennial peers. Today’s Generation is about to enter the labor sector in the coming years.
Unlike millennials, Today’s Youth has its workplace ideals and beliefs. In reality, some Gen Z employees may exhibit habits similar to those of older workers. According to JWN, 85 percent of Young workers desire to stay at a company for a long period, rejecting the gig economy and company hopping like other new workers.
On the other hand, employers must invest in their employees if they want invested workers. Focusing on employee growth potential, as well as building a healthy culture and work-life balance for employees, may help your company stand out among Millenials just starting in their careers.
Some employees may be concerned about the future of oil and gas and human resources, but several interesting trends are driving the oil and gas business ahead. Human resource experts who keep up with current trends can help their companies succeed.