The oil and gas industry is a dynamic and ever-evolving sector that has seen a lot of changes in recent years. One of the critical functions of this industry is recruitment, which plays a vital role in maintaining operational efficiency and competitiveness. However, the recruitment landscape is rapidly changing, and companies need to stay up-to-date with the latest trends and challenges to remain competitive in the industry.
This article will discuss the key trends and challenges in oil and gas recruitment in 2023, including statistics to back up the claims.
Sector Trends
Digitization of Recruitment Process
Traditionally, the oil and gas industry’s recruitment process has been manual and time-consuming. However, the use of technology is transforming oil and gas recruiting. In 2023, the use of artificial intelligence and machine learning in the recruitment process is expected to increase, making it easier for recruiters to identify and attract top talent.
According to a report by MarketsandMarkets, the global artificial intelligence in the oil and gas market size is expected to grow from $1.5 billion in 2020 to $3.1 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 15.3% during the forecast period.
Focus on Diversity and Inclusion
The oil and gas industry has been historically male-dominated, but there is now a greater emphasis on diversity and inclusion in recruitment. In 2023, companies will actively seek to attract and retain more women and minority groups.
A report by the National Association of Colleges and Employers shows that diversity and inclusion are among the top factors that Gen Z job seekers consider when evaluating job opportunities. Companies that prioritize diversity and inclusion in their recruitment efforts are likely to have a competitive advantage in the industry.
Increased Focus on Soft Skills
In addition to technical skills, the oil and gas industry is increasingly focusing on soft skills in recruitment. In 2023, employers will be looking for candidates who possess excellent communication skills, leadership abilities, and adaptability. These skills are becoming increasingly important as the industry becomes more complex and dynamic.
According to LinkedIn’s Global Talent Trends 2021 report, 91% of talent professionals say that soft skills are either very or extremely important to the future of recruiting and HR. Moreover, the report highlights that communication, adaptability, and collaboration are among the top 5 most in-demand soft skills globally.
Rise of Remote Work
The COVID-19 pandemic has accelerated the trend towards remote work in the oil and gas industry. In 2023, remote work is expected to become even more prevalent, with companies adopting a hybrid model that combines both remote and in-person work. This trend is expected to make it easier for companies to attract and retain talent, particularly those who prioritize work-life balance.
According to a study by Boston Consulting Group, 60% of oil and gas executives surveyed said that they expect remote work to become more common in their industry post-pandemic. Moreover, 30% of the executives said that they expect more than half of their employees to work remotely at least part of the time.
Sector Challenges
Shortage of Skilled Workers
The oil and gas industry is facing a shortage of skilled workers, particularly in technical roles. This shortage is expected to continue in 2023, making it challenging for companies to find the right talent. To address this challenge, organizations will need to invest in training and development programs to upskill their existing employees.
According to a report by Deloitte, 70% of oil and gas executives surveyed said that their companies are facing a skills shortage, with engineering and technical roles being the most challenging to fill.
Changing Workforce Demographics
The oil and gas industry is facing a significant challenge in attracting and retaining younger workers, as many experienced workers are approaching retirement age. According to a report by the International Energy Agency, the oil and gas industry is facing a shortage of skilled workers, with an estimated 20% of the workforce set to retire by 2025. This demographic shift is expected to continue in 2023, making it critical for companies to find ways to attract and retain younger workers to ensure a skilled workforce for the future.
One way companies can address this challenge is by developing attractive recruitment strategies that appeal to younger workers. This could include offering flexible work arrangements, opportunities for career advancement, and competitive compensation packages. According to a study by Deloitte, younger workers are looking for employers that offer meaningful work and opportunities for career growth, as well as a positive work-life balance.
Another strategy is to invest in training and development programs that upskill existing employees and prepare them for future leadership roles. This can help companies retain valuable institutional knowledge while also ensuring a pipeline of skilled workers for the future.
Environmental and Social Responsibility
The oil and gas industry is under increasing pressure to be more environmentally and socially responsible, particularly in recruitment. Candidates are becoming more concerned about the impact of their work on the environment and society, and they are more likely to seek out employers that share their values.
According to a survey by Universum, 76% of Gen Z and millennial candidates said they would take a pay cut to work for a company that aligns with their values. Furthermore, 65% of candidates said they would not work for a company that does not have a strong corporate social responsibility program.
To attract top talent, companies will need to demonstrate a commitment to sustainability and social responsibility. This could include investing in renewable energy, reducing carbon emissions, and supporting community initiatives. Companies can also prioritize diversity and inclusion, which is not only socially responsible but also linked to improved business performance.
The oil and gas industry is facing significant challenges in recruitment in 2023, including changing workforce demographics and increasing pressure to be more environmentally and socially responsible. To address these challenges, companies will need to develop attractive recruitment strategies that appeal to younger workers, invest in training and development programs, and demonstrate a commitment to sustainability and social responsibility. By doing so, companies can attract top talent and remain competitive in the industry.
Conclusion
In conclusion, the oil and gas industry is facing significant changes in recruitment in 2023. Companies will need to adapt to stay competitive by embracing digital recruitment processes, focusing on diversity and inclusion, prioritizing soft skills, and accommodating remote work. At the same time, they will need to address challenges, including the shortage of skilled workers, changing workforce demographics, and increased focus on environmental and social responsibility. By investing in training and development programs, developing attractive recruitment strategies, and demonstrating a commitment to sustainability, companies can overcome these challenges and attract and retain top talent, ensuring a skilled workforce for the future. Ultimately, the ability of oil and gas companies to stay ahead of the curve in recruitment will play a critical role in their long-term success.