Major Challenges that HR Faces in the Oil and Gas Industry

Thursday, February 25, 2016      
  • Guest post by Hasibuddin Ahmed

It is a true fact for many organisations that the best asset they have is the people working for them. Thus, the function of the HR department is a very vital one in an organisation. The oil and gas industry is a volatile one and faces a lot of problems like talent shortage and talent attraction. With the growing number of projects, the oil and gas companies have created a plethora of new job opportunities but face shortage of experienced professionals.

The HR is the core of any company nowadays. Earlier it used to have lower importance in the value chain; but with the expansion of operations and coming of the new generation of employees, it has emerged to be a sine qua non part for the successful functioning of any organisation. Now with the growing importance of the HR department in the oil and gas companies, it has become a daunting task for HR to manage the issues in a constantly changing environment.

There are a lot of issues that the HR managers face while implementing their ideas and making of decisions in any oil and gas company. Some of these major issues are mentioned in the following points:

Constantly changing business strategies

Changes in the business strategies and functioning of an organisation make the working of the HR a big challenge. The oil and gas sector is a constantly changing one and it is very much difficult for the HR managers to keep up with the business imperative. They do not have time to chalk out their own strategies and have to modify with the changes in requirements. This proves to be one of the biggest challenges to the HR in any oil and gas company.

Lack of skilled workforce

It is not easy to hire quality professionals and when there is a lack of skilled workforce in the industry, it becomes more difficult. This has become a challenge for the HR of oil and gas companies to hire the right kind of talent that will be a good fit. Oil and gas industry require very skilled professionals and so new professionals have to undergo a lot of training. Global Energy Talent, which provides skills and expertise for the oil & gas sector, has reported that there will be a 38% shortage in the influx of talented engineers.

Average age of the workforce is near to retirement number

This is one of the biggest problems that the HR is facing. Most of the current workforce who is highly skilled is nearing retirement age. So there will be a huge pressure on the HR managers to replace these ageing professionals who had been the backbone of most companies. In the next five years there would be a significantly reduced experienced talent in the sector due to these retirements and making it a terrifying thing for the HR.

Attraction of new talent or current talent to new destinations

With the expansion of global oil and gas industry, companies set up establishments in new countries and regions. So, sometimes it is difficult to attract the current talent to the new destination. This is a huge challenge faced by the HR as they cannot force and lose quality talent in the process. Also the boom IT and other related industry has led to the lack of creation in the interest among the younger generations to take up jobs in the oil and gas sector. The younger generation usually prefers the easy way out.

Challenges due to new location

Expansion to a new location proves a lot of challenge for the HR to develop new talent and to manage the local capacity. It takes time to build up the requisite talent workforce and train them up to the standards of their operation.

It is a very challenging job for HR managers working in the oil and gas sector as the results do not come quickly and it needs a lot of patience to accommodate to the dynamic nature of the industry.

Hasib is a professional writer working with one of the top job website in India - and often writes articles related to career. He is an avid reader and lives for two things - football and food. If he is not involved in any of those, you can find him contemplating existential issues.


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This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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