Friday, November 13, 2015

What Is Human Capital Management for Oil & Gas in the Downturn?

After announcing across-the-board layoffs, many oil and gas companies have turned their attention to pay cuts, instead of letting workers go because they know how important to have skilled employees when prices rise again. Read below to learn more about the human capital management of oil and gas companies during the downturn. 

You may also like:

What-Is-Human-Capital-Management-for-Oil-Gas-in-the-Downturn-1

Many oil and gas companies have realized the need to secure employees and have resorted to pay cuts and bonus caps during the prolonged downturn in oil prices. After announcing across-the-board layoffs, many oil and gas enterprises have turned their attention to pay cuts, instead of letting workers go because they know how important to have skilled employees when prices rise again. Read below to learn more about the human capital management of oil and gas companies. 

1. Resort to cost-cutting strategies

What-Is-Human-Capital-Management-for-Oil-Gas-in-the-Downturn-2

Most of oil and gas companies are reluctant to lay off more employees, and resort to cost-cutting strategies instead. Those strategies for preserving jobs include bonus capping and announcing wage cuts to handle the downward spiraling of oil prices. 

Those oil and gas firms want to avoid a shortage of skilled workers at the end of every downturn.

See also:

2. Give redeployment from upstream to downstream

What-Is-Human-Capital-Management-for-Oil-Gas-in-the-Downturn-3

Workers in oil and gas companies that are hired in the upstream sector are being redeployed to the downstream sector. That’s because oil and gas firms have halted further activities of oil and gas exploration owing to the low crude oil prices. Instead, refining and distributing oil and gas products continue to witness lots of demand and growth. Employees are expected to multi-task and shoulder more responsibilities because enterprises try to remain profitable. A pickup in recruiting activity in the upstream segment isn’t expected, seeing that crude oil prices are feeble. 

In short

The change in human capital management mirrors the stance of oil and gas companies when they struggle to remain profitable, despite the low oil prices. Instead of dismissing employees, they are cutting wages and capping bonuses as part of their cost-cutting strategies beside redeploying employees in the upstream sector to the downstream sector. 














3 comments:

  1. Hi! Thanks for the great information you havr provided! You have touched on crucuial points!
    sicurezza sul lavoro

    ReplyDelete
  2. eToro is the #1 forex broker for rookie and advanced traders.

    ReplyDelete
  3. Informative post! I really like and appreciate your work, thank you for sharing such a useful information about human capital management system strategies, keep updating the information, hear i prefer some more information about jobs for your career hr jobs in hyderabad .

    ReplyDelete