82% of oil and gas workers consider changing industries + it has never been a better time to switch jobs = Good luck.
It’s certainly no secret that service has suffered despite wages going up.
However, it’s not just your favorite local restaurant that is struggling with new hires who lack industry experience.
I recently had a conversation with one of our clients who uses our e-learning as an onboarding solution for new hires with no industry experience.
He informed me that it is not uncommon to show up to wellsites and have almost everyone there be new to the industry.
Fascinating, and a bit scary to be honest.
As companies across the globe emerge from the pandemic, they have collectively been met with workforce challenges from ‘the great resignation’ to ‘quiet quitting’.
Even if people do show up to work, and indeed want to work, data shows that there hasn’t been a better time to switch jobs to increase your paycheck in 20 years.
Two Reports Highlight Both Challenge & Opportunity of the Energy Transition
These reports were both released in 2022 and reflect data as of the end of 2021. Obviously a lot has changed, but the challenges remain.
You can view the full reports here:
Here are some general statistics provided by two sources, the DOE Energy and Employment Report and the GETI Global Energy Talent Index Report.
Industry Employment Overview (DOE)
- Energy sector employed more than 7.8 million Americans in 2021
- Energy employment rose by 4%, faster than US workforce overall at 2.8% despite declines in the fossil fuel sector
- Jobs in net-zero emissions aligned areas made up approx 40% of all energy jobs
Oil and Gas Challenge (GETI)
- 82 per cent of respondents in oil and gas sector would consider switching to another energy sector in the next three years
- As a destination, renewables is the most popular, selected by more than half of potential leavers (54 per cent). Nearly a quarter (24 per cent) would move to petrochemicals and 16 per cent to power.
- 67% of respondents say the best way to get the necessary skills to handle the challenges of a changing energy landscape is to improve in-house learning and development
Energy Transition – The Challenge and the Opportunity
The energy industry, particularly oil and gas, has always had a challenge recruiting. The so-called ‘skills gap’ has been a topic for decades.
In fact, I dug up this blog post I wrote on the topic 10 years ago!
Despite the high pay, the volatility of the industry as companies rapidly grow and contract with oil prices turns off people looking for more secure work. Add to that a desire in younger segments of the workforce to work in tech or at least clean energy.
The last two years have been a perfect example. While all the talk currently is about the energy crisis and high prices, just two years ago oil prices went negative.
Think about that… Negative.
When prices dip, production shuts down and layoffs occur. When layoffs occur, some of those people don’t come back.
As much as the public and politicians may want, you can’t just turn production back on like a tap.
Renewables Jobs Viewed as More Secure
Jobs in renewable energy, as opposed to oil and gas, are seen as more secure. While the average pay may be lower, factoring in the boom and bust cycles of oil and gas may take away the edge.
It doesn’t take long being unemployed to make you forget the averages.
Regardless on where you stand on the current debate in ESG investing, ESG considerations rank highly in job and career decisions in the younger segments of potential hires.
Meanwhile, the renewable energy sector has recruitment problems of its own and has oil and gas sector workers squarely in its sights.
+Petroleum workers journey into the world of renewable energy – CorporateKnights
If you work in oil and gas, 8 out of 10 people around you would consider switching to a new industry. Most of those people would like to go somewhere in renewable energy or power. And the time is right to make the move.
The reality is that oil and gas operators are going to have to make better use of what they have.
Upskilling existing employees into new roles is key. Shortening new hire ‘time to productivity’ is also critical.
Onboarding With a Flipped Classroom
What is a flipped classroom?
The concept of the flipped classroom first came around in 2007. It is the idea that learners read and watch lectures ahead of time and work on more functional cases and problem-solving during the live training sessions.
+What is the definition of a flipped classroom – Teach Thought
This ‘pre-learning’ drives engagement in the classroom, and is especially effective for older learners and professionals.
Whether you are recruiting for a business development team, an IT function, or an operator on a wellsite, the first hurdle is that your new hire is likely to have zero energy industry experience.
This is even the case when recruiting across industry segments, from upstream to downstream or oil and gas to renewables.
Our clients use our Energy 101 e-learning courses to flip the classroom.
Their new hires have taken an online course, developed by industry experts, explaining how the industry works before they even arrive on Day 1.