With the launch of the first Global Energy Talent Index, Sam Cross, senior vice president North America at Airswift, the global workforce solutions provider for the energy, process and infrastructure sectors, argues that to capitalise on the Trump administration’s energy ambitions, North American firms need to better understand the talent they want to recruit.
President Trump has set out his vision. He wants to make America energy independent and create millions of new jobs in the process. With this in mind, he plans to make it easier for pipeline projects, such as Keystone XL, to move forward.
This is a real opportunity for energy workers and businesses alike. So it’s perhaps unsurprising that a number of those in the energy sector are hoping to see a significant increase in pay in 2017. And it is indeed true that the North American energy industry will need to recruit a lot of talent in order to develop new projects – particularly in the drilling and completion of onshore oil and gas ventures. Indeed, we’re already beginning to see this with an increase in contractor hires, principally onshore – with the Permian basin proving a particular hotspot.
But while there are strong indications that the downturn is coming to an end, this doesn’t necessarily mean that there will be a huge and immediate upswing for the energy industry as a whole. And although our research for the Global Energy Talent Index (GETI) tells us that an overwhelming majority of North American energy workers are anticipating a pay rise in the next 12 months, there’s no guarantee that one will be forthcoming.
Because to stay afloat, energy firms have had to learn how to operate with much lower cost bases in recent years. Just because a number of new projects come online doesn’t mean we’re likely to see a return to old economic conditions (and many argue that we shouldn’t).
Of course much depends on the oil price. If it stays below $70 per barrel, we can expect firms to keep salaries at their current level as there simply won’t be enough new profit coming in to share out. But if it rises more dramatically, then North American energy firms will face increased competition for talent from producers all over the world – leading to a widening of the already-pronounced skills gap.
In both cases, it’s imperative that hiring managers understand the expectations of energy professionals and work to provide compelling opportunities that align with their needs. But GETI tells us that there is a significant gap between the expectations of energy professionals and those looking to hire them.
For instance, the report shows that while half of North American oil and gas workers expect salaries to rise over the next 12 months, only one in five hiring managers feel the same way. And while professionals view salary banding as the most important factor in choosing a company, hiring managers have yet to take note – believing instead that corporate culture is their biggest selling point.
North American energy firms have been presented with a real opportunity. Trump’s vision, combined with the recent stabilisation of the oil price, is encouraging new and exciting projects that make a real difference both to their bottom line and to the lives of American people.
But if they want to deliver on Trump’s vision, they need to win the war for talent. And they won’t be able to do this unless they’re in tune with the wants and needs of those they’re trying to hire. They have to bridge the expectations gap. Or else fall in it.
To read the report, click here.
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