If you build it, will your workforce come? Workforce supply and demand issues in the 21st century for the oil & gas, mining and specialized technologies sector.

1. IF YOU BUILD IT, WILL YOUR
WORKFORCE COME?
Workforce mobility in the 21st century – a supply
chain perspective
J. Manning - 2015

2. A CHANGE IN DEMAND FOR
WORKFORCE OCCURS
 Starting a major project
 Expanding existing operations
 Adding a new service/product which requires skill sets not available
regionally at present
 Overall increase in regional marketplace or industry-wide demand
occurs
This exceeds available regional qualified (or readily qualifiable) labor
sources.
J. Manning - 2015

3. SOLUTIONS TO REGIONAL WORKFORCE
DEFICITS – INCREASING SUPPLY
Sourcing option Time
investment by
company
Cost Risks
1. Attract more local
labour(increased wages and
benefits)
Short Medium - High Increases overall regional wages and
workforce supply remains a long term
issue.
2. Import labour Short-Medium High Uncertainty of supply should imported
labour’s place of origin’s economy
improve. Fly-in/out or sponsoring
individuals to migrate.
3. Train (collaboration with
educational institutions, hiring
apprentices and upgrading
professionals in new skill sets or
educational upgrades)
Medium - Long Low-Medium Trained labor will leave for other
opportunities unless other benefits
offered (good work environment,
advancement opportunities etc.) Lower
productivity in the beginning.
4. Outsource service/good to other
region
Long Low - High Sometimes but not always a viable
option owing to nature of good or
service. Company needs to invest
corporate and/or technical knowledge
and resources to gain quality
products/services from outsourced party
that meet required specifications.
J. Manning - 2015

4. SO WHY IS THERE AN ISSUE IN GETTING
LABOR TO MIGRATE?
 Qualification equivalency between regions (e.g. an engineer from Pakistan cannot directly
transfer qualifications to Canada, a millwright is not a recognized red seal trade in the United
States)
 Language and cultural barriers (e.g. if you speak French you will have a better chance of
gaining employment in France)
 Cost of living differences between regions (e.g. $200K 4 bedroom house in Nebraska, USA vs.
$200K 600 square foot apartment in New York, USA)
 Childcare and caregiving (elderly or disabled persons) responsibilities; formal or informal
support resources are not readily available if child or the person with the impairment was
moved.
 Availability of housing and other amenities (e.g. finding a house in London, UK or Hong Kong,
China, proximity to medical centres)
 Personal security (e.g. the risks of working in a country with high crime rates, civil war or at war
with other nations)
 Visas or equivalent documentation requirements for movement of labor between nations
 Social factors including social justice (corruption etc.), discrimination or preferential hiring
practices (ex: women are not permitted to drive in certain parts of the world as of 2015 so
becoming a taxi driver or heavy equipment operator would not be a viable profession in
those regions).
J. Manning - 2015

5. WHAT’S THE SOLUTION?
• Depends on the individual employer and industry
• Generally consists of a multi-pronged approach
• Short, medium and long term approaches allow for employer to
adjust to changes in the economy and demand for their
product/service
• Short term solutions perpetuate high wages and lack of qualified
available workforce
J. Manning - 2015

6. ABOUT THE AUTHOR
• An experienced supply chain professional who has worked in oil
and gas, mining and manufacturing for over 16 years
• Previous contributing author to a United Nations study on
sustainability
• Supporter of supply chain professionals in their career journey
J. Manning - 2015