At the executive level, oil and gas industry leaders have accumulated talents far beyond technology, having managed their organizations through booms, busts, and a long period of limited growth to the conditions in the industry today. They worked through the ranks, and now they are looking forward to retirement — or so it is assumed.

Albert Hurtado, managing director of Source People Inc. in Houston and a specialist in executive search for the oil and gas industry for more than 25 years, believes many technical/engineering leaders and executives do NOT want full retirement.

“I’m getting calls from retired executives who no longer want to be in full retirement,” Hurtado said. “They’re looking for a way to contribute that doesn’t demand a full-time commitment. I see this as a very real solution to the current shortage of executives and technical leaders in the oil and gas industry.”

A changing perspective

Executives and technology/engineering leaders in the petroleum industry may be the most qualified to create a new business hiring mindset. Many energy companies are seeking top-level guidance more than full-time, hands-on leadership. If the need is for an advisor, contracting an expert to give advice as needed could be the best, most cost-effective solution.

Baby Boomers changed the world with their career pursuits, and they likely will continue to mold business practices beyond the typical retirement age. A “semi-retirement” could be attractive to individuals who want to contribute, but who also want to avoid full-time commitment. But are operators and service companies willing to change their hiring policies to capture their expertise? Hurtado thinks the answer is yes, and a big reason is cost.

“Hiring the wrong executive for a top position is an expensive mistake,” Hurtado said, “and failing to fill key leadership roles carries substantial costs, both in strain on existing organizations and in missed opportunities. Some companies have even experienced declining stock values when the wrong executive hire makes news headlines.”

As risks increase, high-level executives are more willing to engage search professionals as strategic partners, working together with their consultant to solve executive and management staffing problems.

“That’s a different working relationship than the traditional commission to the firm that provides the winning candidate,” Hurtado explained. “It allows the executive search specialist to bring more value to the company. By working together to define needs and understand the mindset to solve an executive hiring problem, both parties contribute to the success.”

Global winds of change

Increased use of search consultants is just one sign of oil and gas companies’ willingness to change their hiring methods. As the world economy’s leading petroleum providers become the driving forces behind alternative energy industries, these firms face substantial technical and managerial hiring needs that are worldwide. Increasingly, their talent search is global in scope, demanding changes in hiring practices.

Hurtado believes the old executive search model of “knowing Houston and the energy industry” is not enough for today’s global economy. His company is an example of a search organization that recognizes the worldwide scope required to find the right person. The firm has embarked on a distributed, global business model, establishing offices in every prime activity area for both the conventional and emerging energy sectors.

“We live in a global world, especially when specializing in the oil and gas industry and the renewable energy sector,” explained David Priestley, international director of Source People. “How can one not be present in each of the most active regions and yet have access to the individuals these companies and industries need?”

The energy industry has led the way in worldwide work force development for decades. In the late 1960s, the oil industry pioneered cross-cultural technical teams to solve production obstacles. Energy companies established “technical campuses” long before computer company “campuses” were recognized as a “best practice.” But the industry faces new challenges to stay ahead of its manpower requirements.

Now that the personnel shortage has reached critical levels, however, there is reason to believe the energy industry will continue to lead in innovative hiring strategies.

“The energy industry has a reputation for solving complex technical situations,” Hurtado said. “I firmly believe energy companies will change their hiring mindset to embrace ‘phased retirement’ and flexible work systems, allowing their most skilled talents to continue making contributions and molding the new generation of executives entering the industry.”