Engineering & Energy Talent Survey

Engineering & Energy TALENT OUTLOOK SURVEY 2014

Introduction •  The oil & gas industry is con3nuing to advance at an excitnig pace, new technological

developments are opening up significant opportuni3es to meet the constantly growing demand for worldwide energy.

•  As hydrocarbon-‐based energy demand con3nues to grow, extrac3ng oil & gas from unconven3onal sources becomes more important. The key to success in the technologically driven, fast-‐paced world of energy is the company’s supply of available experienced, highly-‐skilled talent.

•  Sourcing, cul3va3ng, and retaining these people is the one of the biggest challenges facing the oil & gas industry today.

“The increasing demand for workers is exacerbated by an underfed recruiting pipeline and the retirement of older, more experienced workers “

•  Many companies try to find solu3on in poaching exis3ng talent from compe3tors but this approach is impossible to sustain. It is also significat to remember that the Oil & Gas Industry is also in compe3ton for this talent with other industries.

“Addressing this lack of talent will require an industry-wide solution that starts with companies understanding the internal and external labor market issues. “

Sources: Mercer Oil&Gas Talent Outlook and Workforce prac9ces Survey, February 2014

Understanding the Oil & Gas Talent Market


Notes about the Survey: •  The study covers industry employers of more than one million employees •  Na3onal oil companies represent approximately 6% of the sample included in the analysis •  Most respondents serve in HR Roles

DISTRIBUTION OF SURVEY RESPONSES


31%

6%

14% 18%

25%

6%

Business Segment

Upstream

Midstream

Downstream

Integrated

Oil Services

Others

Region of Responsibility

Asia Pacific 78

Canada and US 76

La3n America 32

Europe 31

Sub-‐Saharan Africa 16

Middle East and North Africa 14

EXECUTIVE SUMMARY


•  Oil & Gas companies are facing a talent shortage across all cri3cal occupa3onal groups.

•  Though the intensity of concern has seemed to ease of the last six years, the experience gap is more profound. This gap is driven by a combina3on of emerging complex technologies, an aging workforce, and unconven3onal plays requiring new staffing models.

•  Companies are reliant on “buying” talent, rather than “building” talent.

•  All in, companies are spending a vast amount across a large spectrum of workforce ini3a3ves. At face value, this points to a need for companies to assess, quanify, and priori3ze their risks to develop a unique por_olio of ac3ons that will produce the greatest returns and expected outcomes.

•  Most respondents project that their company will realize significant returns if they can solve their talent challenges. This may come in the form of increased produc3vty, decreased aari3on, increased produc3on, and decreased opera3ng costs.

Percentage of Companies Anticipating a Talent Gap in the Specified Occupational Group and Experience Level* in the next 5 years Industry perception of pending talent gaps across occupational groups


Hot Jobs: Positions Facing the Most Critical Talent Gaps


INDUSTRY TRENDS AND CHALLENGES


TOP CHALLENGES AFFECTING OIL & GAS COMPANIES TODAY The Industry Reports: •  The Market Lacks an adequate supply of skilled

candidates. •  Qualified employees are increasingly difficult to attract and

retain. •  Demand for experienced talent continues to rise.

Regions in which participating Companies are currently facing their BIGGEST Talent Management Challenge Percentage of responses indicating region with biggest talent change


Challenges in Attracting and Managing Talent


Attracting and Managing Talent


Challenges being addressed by Current or Planned Initiatives 1


Skills Gap in Existing Workforce Percentage of respondents facing gap in skill set indentified


Expected Shortages in Qualified Employees Percentage of respondents indicating shortage in region, 5 – year time horizon



WORKFORCE STRATEGIES & PRACTICES


Strategies for filling Open, experienced Positions Percentage of open positions filled internally and externally across respondent companies


Current and Planned sourcing strategies Percentage of current outside hires from source, anticipated change and reliance 1


Attraction and Selection Strategies Percentage of companies in segment selecting strategy


Strategies used to Assess Talent and Increase the Supply of Skilled Workers


Addressing Talent Shortages Strategies Organizastions Will employ to address Regional Talent Shortages


Sources of Non-Local Hires (Industry Average) Percentage of respondents selecting region


Levers with Greatest Impact on Talent Management Challenges Allocation of incrememental $100 in budget to Talent management issues


Expected ROI if Talent Challenges are Properly Addressed


Workforce Planning Process Percentage of Companies using a Process


UNDERSTANDING THE LABOR MARKETS

OIL & GAS TALENT FORECAST EXPANDING ON THE SURVEY RESULTS

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Engineering & Energy Talent Survey

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Transcript of Engineering & Energy Talent Survey