As the economy sputters toward recovery, job opportunities are beginning to tick upward in several sectors. Innovative companies that keep in touch with their alumni find former employees return value as they refer candidates and are themselves potential recruits. The oil and gas industry is one area that continues to need technical and skilled employees due to a number of factors, including retiring Baby Boomers and climbing global energy demand.
Energy demand on the rise
The International Energy Agency expects global oil demand to hit a record high in 2010. In its “Oil Market Report,” the agency predicts world oil demand will reach an average of 86.60 MMbbl/d this year – up from 84.93 MMbbl/d.
At an energy conference in Houston, ConocoPhillips CEO James Mulva commented that the world will be depending on fossil fuels for decades to come and that experienced and new entrants to the industry see bright skies ahead. Clearly, oil and gas companies cannot afford to wait for economists’ “all clear” to begin hiring.
‘Big Crew Change’ looms
As worldwide energy demand climbs, the industry is faced with the prospect of thousands of Baby Boomers reaching retirement age.
Houston-based HR management consultant Tom DeScioli said it continues to be a tight market for quality technical talent in the industry. According to the Society for Human Resource Management, although most economists predict high unemployment levels to continue, indicators show hiring rates increasing for temporary and contract workers and in-demand skilled workers like engineers, which rank at the top of the list.
In addition to the energy industry offering opportunities for both new entrants and experienced professionals, there is the lure of high levels of job satisfaction.
In a recent Alumni Web Services’ (AWS) survey of its online networking and alumni communities in the oil and gas industry, members were asked how their job satisfaction compared to the 2007 Society of Petroleum Engineers survey where 73% of respondents were satisfied. AWS members’ responses showed they enjoy working in the industry-43% report they are equally satisfied, and a surprising 31% report a higher level of job satisfaction than before the economic downturn. This is good news compared with a recent Conference Board survey of job satisfaction levels in the US. According to the nationwide survey, only 45% of Americans were satisfied with their work – the lowest level recorded in 22 years of the survey.
Why is there higher job satisfaction in the oil and gas industry? One reason AWS members shared is their appreciation for being employed during one of the worst economic downturns in history. Others are finding new challenges and opportunities as a result of reorganizations or improved technology with which they work to find future energy solutions.
Businesses are offering incentives to stay in oil- and gas-related companies, including flexibility with work/life issues, long-term incentive plans like stock or other equity-type programs, and cash-retention programs.
In a recent AWS survey of its online networking and alumni communities in the oil and gas industry, responses showed 43% were equally satisfied in their jobs and 31% reported a higher level of job satisfaction than before the economic downturn.
Continued demand for experienced workers
While there have been layoffs in the industry, many companies are hiring again. The skill sets required may change, and the regions where these skills are needed may shift, but demand is still there.
Many employers are opting to bring back experienced former employees. Since the recession began, the number of workers 55 years and older has increased by 9%, or 2.5 million people.
Reportedly, some of the 55-and-up crowd are returning to work due to spousal job losses, financial problems of other family members, or to recoup losses in retirement savings.
Employing former employees allows companies to gain the advantage of experience and expertise while allowing those reentering the work force to work part time or on a project basis.
Experienced hires return with years of technical talent and knowledge of the industry and immediately begin adding value to short- and long-term projects. These experienced professionals are equally valuable in fast-tracking the training process for young recruits.
People are one of a company’s few assets that grow in value over time, yet many companies have no formal process for keeping in touch. Just as a company’s needs change over time, former employees change as well. Many former employees find themselves willing to come back to work at a later time. To tap into this pool of experienced workers, many companies have discovered the value of online alumni networks.
AWS works with a number of Fortune 500 companies to develop online alumni communities. Companies use these sites as a strategic recruiting tool for attracting former employees for training, mentoring, and long- and short-term assignments around the globe.
Companies also find that former employees are valuable in referring potential job candidates. A former employee is in a position to find a well-suited hire since they understand the culture and priorities of their former company.
Companies keep in touch with former employees by keeping them updated on the company and its worldwide opportunities. Online alumni networks keep individuals connected, driving home the message that although they left the company, former employees are a valuable part of the talent pool.
Online networks allow companies to track a former employee’s career growth and changing aspirations and priorities over time. An employer can use the online network to find experienced talent by searching key criteria like technical discipline, years of experience, and mobility preferences. Unlike general searches on Monster.com, LinkedIn, and other online networks, which are populated mostly by entry-level talent, corporate alumni communities target experienced talent – an advantage in an industry facing a work force shortage.
Rising global energy demand is compelling the oil and gas industry to use a variety of innovative methods to recruit and hire much-needed talent. The good news is that energy companies are willing to commit to new talent and also embrace former employees in this pursuit.
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