Thursday, March 17, 2016

Oil and Gas Recruitment: Top 6 Challenges Facing HR Managers


For many organizations, people is the best asset. That’s why the role of HR department is very vital. The oil and gas industry is a volatile one and encounters lots of HR problems. Some of main challenges in oil and gas recruitment are mentioned below. 

HR is the core of any organization nowadays. Earlier, it used to have less importance in the value chain, but with the operation expansion and coming of new generation of employees, it has become an essential part for the successful business in any organization. Now with the growing importance of HR department in oil and gas companies, it has become a difficult task for HR to manage issues in this constantly changing environment. 

There are lots of challenges that oil HR managers face when implementing their ideas and making decisions. Some of these main challenges are mentioned as below:

1. Constant changes in business strategies


One of biggest challenges for HR is the changes in business strategies and functioning of an organization. Oil and gas industry is a constantly changing one, and it’s very difficult for HR managers to sketch up their own strategies and modify with the changes.  

2. Lack of skilled workforce


It isn’t easy to recruit qualified oil and gas professionals, and when there lacks skilled workforce in the industry, it becomes harder. This has become a challenge for oil & gas HR manager to hire the good fits. As reported by Global Energy Talent that provides skills and expertise for oil and gas industry, there will be a 38% shortage of influx of talented engineers. 

3. Most of current workforce approaching retirement age


This is one of biggest problems that HR is facing. Most of current workforce that is highly skilled is approaching their retirement age. So HR managers will be under pressure to find people who can fill in these ageing professionals’ shoes. In the next 5 years, there would be a significantly reduced number of experienced professionals in this sector due to these retirements and making it a difficult thing for HR managers.

4. Attraction of new or current talent to new destinations

Along with globalization in oil and gas industry, companies expand to new countries and regions. Sometimes it’s hard to attract the current talent to the new destination. This is a big challenge faced by HR managers because they can’t force and lost good employees in the process. Also, the perception about oil and gas sector as a dirty, tough one and attractions from other industries have led to the lack of interest among younger generations to take up jobs in the oil and gas industry.

5. Challenges due to new location

Expansion to new location proves another challenge for HR to develop new talent and manage the local capacity. It takes time to develop the required quality workforce and train them up to the standards of their operation. 

6. Finding and managing migrant workers


Mass migration has become a significant economic phenomenon related to the expansion of globalization and trade between countries. For centuries, it has shaped or reshaped the social and economic landscape in many continents, regions and countries of the world. Many industries have counted on the migrant workers to fill skills gap and adjust to their aging or declining populations. In the oil and gas industry, there have been a growing number of migrant workers employed. The difficulty is how to recruit a large number of foreign employees that satisfy job requirements and how to manage them well for ensured work performance and productivity. The cultural differences often make it hard for migrant workers to be well integrated into the working environment in the host country. To this point, the role of recruitment agencies is really important. And HR managers should consider pros and cons when it comes to choosing to partner with a manpower placement agency. 


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