Challenge Ahead: Developing a Sustainable Workforce

At a topical luncheon sponsored by DNV, Abe Palaz with Halliburton discussed the need within the energy industry to establish a sustainable workforce. In order to meet the needs of the industry head on, Palaz stressed increased recruiting, retention and investment to a packed group of oil and gas professionals.

"Right now, demand for talent globally is at an all-time high," said Abe Palaz with Halliburton.

Along with oil prices, demand for quality employees has risen and is sure to rise in the next 20 years. Palaz revealed that Halliburton alone has hired more than 36,000 employees in the last three years. Despite a 90% localized workforce and decreasing voluntary turnover at present, "the past is not a guarantee for the future."

Palaz warned that companies must increase the intensity of their recruiting efforts into the future, noting that the immergence of unconventional oil and gas brings with it the need for a much larger workforce.

With national oil company's changing role in the industry, increased nationalization and mega-project start-ups, demand for talent in the Eastern Hemisphere alone is expected to increase by more than 50%. In fact, there are a number of projects that are currently being "delayed because of a lack of sufficient skills."

Additionally, outsourcing is becoming less and less of an option because countries require that companies hire and train a local workforce. Whether it's a number thing or a quality issue, an international transfer of information is the only solution, where the same opportunities are available globally.

A Good Look in the Mirror
The energy industry is aging, and potential future talent is being tainted by a negative image of the industry. Many see oil and gas as a "sunset industry," one that won't be around for a long-term career. Furthermore, fewer students are studying math and science, and there is even a deficit in petroleum professors at the college level.

Palaz stressed that through college scholarships, internships, hands-on education, collaborative efforts and research sponsorships, oil and gas companies can start to change the industry's image.

"If we don't educate our youth about the energy industry, someone else will," he warned. "It's an opportunity to brand yourself and promote your company."

In the Eastern hemisphere specifically, the industry needs to target both students and faculty -- and showcase technology by donating equipment, labs, software and hardware to learning institutions. By sponsoring English-language programs, companies can give students the tools to learn and more easily function within the oil and gas industry.

Mind the Gap
By acknowledging the imminent generation gap with the retirement of the industry's Baby Boomers, companies can face the employment crisis head on.

One of the key ways companies can overcome this -- once their workforce is hired -- is by aggressively accelerating development of employees. By placing new employees side-by-side with experienced workers in real-time environments, companies can more quickly transfer knowledge to future generations of oil and gas professionals.

Most importantly, effective retention is essential to tackling the world's energy needs of the future. Companies must clearly define career paths, maintain competitive compensation, develop strong succession management and establish front-line supervisory training.

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