HOUSTON—In between cost cuts and commodity price watching, experts are warning oil and gas companies not to leave talent management out of their overall business strategies.

Doing so could put them behind their competition when improved market conditions create a need to bring back some of the tens of thousands of workers let go due to slowdowns in drilling activity.

In previous downturns, some companies have cut too deep or cut the wrong type of skillsets, KPMG principal Angie Gildea said. For some, keeping talent may still be an afterthought. But other executives are looking for ways to be more strategic and innovative, even offering unique arrangements with stipends, when it comes to keeping a connection to employees they will need when the industry rebounds.

“I think companies that had a longer-term strategic plan in place are actually weathering the cuts better than the others,” Gildea said July 23 during a roundtable discussion.

While a bounty of supply has necessitated layoffs, having a talent management strategy will be key to future growth, experts said.

Nowhere is that as obvious as the oilfield services sector, which has been felled by a rapid drop in rig counts as well as proppant supply companies. The roundtable was held during a month filled with updates on earnings and operations by oilfield companies.

The largest service companies in the world have had to cut workers. During the first half of 2015, Baker Hughes Inc. (BHI) said it started workforce reductions that will eliminate about 13,000 positions worldwide. About 11,000 of those positions had been cut by the end of June, the company said in U.S. Securities and Exchange Commission filings.

“As a result of these workforce reductions, we recorded a charge for severance expense of $308 million, net of a related benefit plan curtailment gain of $9 million for the first six months of 2015,” Baker Hughes said. The company also terminated $83 million worth of contracts, mainly in North America, downsized pressure pumping fleets and consolidated and shut down some facilities.

It is not alone. Halliburton Co. (HAL), which has a merger pending with Baker Hughes, initiated a 16% companywide workforce reduction during the first half of 2015. Schlumberger reduced its headcount by about 11,000 employees in first-quarter 2015.

In late April, Ryan Lance, chairman and CEO of ConocoPhillips (COP), said the oil and gas industry had already lost more than 100,000 jobs because of the downturn. E&P companies have cut, too. Newfield Exploration Co. (NYSE: NFX) has cut at least 15% of employees in addition to closing satellite offices.

But not all companies are doing a “typical layoff,” Gildea said. She said that a few companies are developing programs around flex leave. Individuals may apply for a set amount of leave and receive a stipend in return for signing agreements that, for example, prohibit them from working for competitors. Many employees consider that to be a great time to return to school, travel or spend time with family, she said.

“The connection is still there with the employee,” Gildea said. “So the thought is when activity ramps up again they’ll be able to quickly flex their workforce back up.”

Companies are also being more selective about who they choose to keep on the payroll, pinpointing who will be difficult to replace when market conditions improve, added KPMG principal Regina Mayor.

“Companies that had strong talent management programs and strategies in place recovered better,” Mayor said after referring to a Hackett Group study. The three-year study, which followed the financial crisis, wasn’t specific to oil and gas but examined performance and benefits data of more than 60 companies. The results, released in December 2009, showed that companies with mature talent management capabilities had higher earnings.

Such talent management strategies should look toward the future, according to Gildea.

“When activity was high there was a lot of demand for the craft skills,” she said, such as welders, electricians, engineers and midlevel leaders with a push to get more women into the field. Now as companies have downsized, they are thinking about future growth, which skillsets they need in-house and for which areas third-parties will be needed, she said.

Realizing the industry can tread water at today’s prices for a while, or may be in a new normal, oil and gas executives also realize they must go beyond simple cost-cutting measures, KPMG principal Chris Click added. Cost control areas include how businesses are organized as well as how they interact with their suppliers. “Talent is another one that continues to come up and continues to be quite key.”

Velda Addison can be reached at vaddison@hartenergy.com or via Twitter @veldaaddison.