USA: Oil and Gas Industry The War for Talents in the Oil and Gas Business
In a study published by McKinsey&Company, the economics researchers identify three themes that are redefining the role of HR in oil and gas, with implications for HR strategy and operating model.
New York/USA — The first theme identified by the company is 'Resource abundance' and the need to be prepared for a sustained period of lower oil prices and a focus on cost, efficiency, and speed. Traditional talent is no longer scarce, exploration capability is less of a differentiator, megaprojects are not the only way to grow, and market opportunities may only be economical for the earliest movers in a basin. Meanwhile, conventional, deepwater, unconventional, and renewable assets each require a distinct operating model that cannot be delivered optimally from a single corporate center.
Second Theme: Profound Technological Advances
Automation is replacing workers (including knowledge workers) on a large scale, and the jobs that remain require increased human-machine interaction. As more devices connect to the cloud, data generation continues to grow exponentially. This explosion of data — combined with advanced analytics and machine-learning tools — lets companies fundamentally reimagine how and where work gets done.
Third Theme: Demographic Shifts
mean that employees are demanding changes in the working environment and expressing concerns about the role of oil and gas companies in society. Millennials will soon constitute the majority of the workforce in developed markets, and have already started their climb into management and executive roles. These digital natives bring their own expectations regarding technology, collaboration, pace, and accountability. At the same time, a well-educated, globally competitive talent base has grown rapidly in emerging markets.
The researchers argue that these changes would create a flatter organization where the relevant skills for the task at hand become increasingly important relative to the person’s level in the hierarchy. At the same time, technology is already changing the way we communicate and access information across organizational boundaries. With instant access to information and expertise, people at lower levels in an organization can make increasingly informed decisions. Carefully exploring these opportunities can not only help to deliver direct business results, but will also help to accommodate demands for more meaningful work from the next generation of talent.