The document discusses several factors that will have lasting effects on the long-term workforce strategies of the oil and gas energy industry. These "game changers" include the fracking/shale revolution, regulation changes, an aging workforce, new technologies, and increased exportation of natural gas and liquefied natural gas. Up to 50% of the energy industry's workforce will retire in the next 5 to 10 years, according to the U.S. Department of Labor, which will lead to shortages in various engineering and infrastructure jobs. However, 70% of companies currently have no workforce plan to address these changes and future talent needs. The document advocates for strategic workforce planning, development, and value propositions tailored to different generations
2. THE GAME CHANGERS
What is happening right now that willhave lasting effects on
the energy industry’s long-term workforce strategies?
Brett Haugh Principal and EVP, Ascende
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5. GAME CHANGERS
“Game Changers” are critical to understand the energy industry:
Fracking/shale revolution
Regulation and policy changes
Aging workforce
New technology
Grid modernization
Exportation of NGLs
Power generation – mix and carbon management
Infrastructure/new build
Exportation of LNG
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6. THE FACTS
Since 2010, the energy
industry has been hiring at a
rate that outpaces the general
economy
0%
25%
50%
Private Sector Oil & Gas
7%
25%
Since 2006, hourly wages
have outpaced general
industry
0.0%
10.0%
20.0%
30.0%
General Industry Oil & Gas
17.8%
23.7%
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7. THE FACTS
Up to 50% of energy industry will retire in 5 to 10 years – U.S. Department of Labor
Shortage gaps
Engineering – mechanical, electrical, civil, petroleum, logistics, etc.
Infrastructure – welders, truck drivers, electricians, pipefitters, mechanics, etc.
Global demand for energy will increase by 1/3 through 2023
The significance of game changers are not being factored into HR strategy to fill gaps due
to employees:
Retiring
General attrition
Projected growth expansion
The industry is stealing from each other and driving up costs
Controlling fixed costs, including wages and benefits, will be the key priority
Greg Ebel, Chairman, President and CEO of Spectrum Energy summarized the workforce
challenge like this:
“The limiting factor in the energy industry is not access to capital and not access to
hydrocarbons to produce. The limiting factor is people.”
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8. WORKFORCE PLANNING
8
External Drivers
Fracking/Shale
Crew Changes
Millennials
New Technology
Infrastructure Build
Exportation
70% of all companies have NO plan!
Analyze
External Drivers
Business Needs
Internal Workforce
Talent Pipeline
Labor
Demand
Supply
Result
Value
Proposition
9. WORKFORCE DEVELOPMENT
Community/region
Executive team
Students
Parents
Educators
Build competency
model
Basic
Job-specific
Employment
opportunities
Advancement
Balance supply/
demand
Identify gaps
Game changers
Efficiency
Applicant tracker
Talent supply
Work together
City
Region
Nation
Trade organization
Forum discussions
Compensation
Benefits
Culture
Advancement
Marketing/
engagement
Attraction and
retention
Workforce
Development
Process
Career
Awareness
Education
Workforce
Planning
Structure
and Support
Employee
Value
Proposition
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10. VALUE PROPOSITION (SEGMENTED)
10
Boomers Millennials
Attract Retain Motivate Attract Retain Motivate
Base Pay High Medium Low High Low Low
Bonus Low High Medium Medium Medium Medium
Incentives High Medium High Low Medium Low
Benefits High High Low Low Low Low
T&D Low Medium Medium High High High
Culture Low Low Low High High High
Environment Medium Low Low High High High
Secret is the mix of programs and method of communication. What’s important to
Boomers is not important to Millennials.
Additional segmentation by field vs. office personnel.
11. VALUE PROPOSITION (BASIC CONCEPT)
11
Value Proposition
Pay Benefits Performance Advancement Environment
Base
Bonus
STI
LTI
Medical
Retirement
Life
Accident
Disability
Perquisites
Feedback
Behaviors
Opportunities
Training
Personal Development
Professional Development
Growth Potential
Leadership
Culture
Management
Physical Space
Safety
Security
Diversity
Business Objectives
(3 to 5 years)
Human Resources Objectives
(3 to 5 years)
3 year shelf life maximum
12. TALENT MANAGEMENT,
DEVELOPMENT AND
ACQUISITION STRATEGIES IN
ENERGY SUMMIT
Tuesday, Sept 30th, 2014 | Omni Houston Hotel at Westside
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