2019 HR Overview within the Oil and Gas Industry

In many organisations human resources is regarded as an essential department in ensuring success through the effective management of their people to gain a competitive advantage. They are used to help maximise the performance of employees, aligned with the organisation’s strategic objectives.

Human resources also play a crucial role in the recruitment and selection process of every organisation within the oil and gas sector.

Some companies are increasing the size of their workforce within the oil and gas industry as they start to show signs of recovery since the downturn. Based on the latest projections of industry expenditure in 2019, the UK upstream oil and gas sector is projected to support around 260,000 jobs in the UK. This would represent the first increase in total industry employment since 2014.

Diversity is regarded as essential to many HR functions within organisations across different industries, however the oil and gas industry is struggling with this area. According to the president of the Energy Institute, Steve Holliday, he described oil and gas as the “worst sector” for diversity. He said “The rate of progress, when you look at it over the last five to 10 years, it is what I would describe as glacial. I think the stat is, globally, it’s only eight percent female. It’s quite unbelievable.”

It is believed that improving diversity within the oil and gas industry will help address the industry’s skill shortages. According to a survey of more than 17,000 industry professionals, 40% of respondents felt that a crisis had already hit the industry, with a further 28% expecting it to take hold in the next five years. This can have consequential effects on companies operating within this sector as it could lead to poor production, longevity and overall company performance.

To solve these skill shortages, some companies have invested in technology and boast a wealth a highly competent inspectors and technicians. They have implemented a novel recruitment approach, where all NDT and ANDT technicians and inspectors must pass rigorous competency checks and undertake continuous assessment and development.

Having these thorough competency-based assessments can be beneficial for HR executives during the recruitment process to identify each candidates’ knowledge, skills, and behaviours required to successfully perform within the organisation.

Undertaking continuous development of employees once they join is also crucial to increase job satisfaction. Assessing competencies can help motivate and engage the employees, as it’s a great way to recognise the skills and knowledge they possess and empower them to take control of their career development. Over the last 12 months, 45.51% of oil and gas company’s workforce remained stable, 14.17% increased by 0-100, 11.02% increased by 100-500, 10.39% increased by 500-1000, and 8.82% increased by 1000 or more. The more competencies employees obtain, the greater value they will be to the business. This will lead to increased job satisfaction and a higher retention rate for companies operating within the oil and gas industry.

-Written by Researcher Cameron Robertson who recently completed BA(Hons) in HR

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