4 Key HR Challenges in the Oil and Gas Industry


The energy sector is evolving and accepting best practices from other industries with an overall focus on efficiency and continuous improvements. The Human Resources Department plays a critical role in driving these internal activities as well as the growth and expansion of an organization.

Despite the intrinsic volatile nature of this industry, HR function has a deep implication to steer the overall productivity of the business. Overcoming the various challenges, ensuring sound HR practices and strategies can thus develop strong talent culture and a more resilient organization.

Recruitment: Attracting and retaining Talents in a unique sector

The energy industry is unlike any other. It is primarily a field-based industry, and it requires a mental attitude that cannot be compared to the practice of a regular desk job. The jobs demand a combination of mental skills and physical resilience that would sustain the employees even in most difficult working environments. In spite of fantastic financial incentives, the hostile work environment and the inherent risks of the job might prove to be the key roadblock for the HR team to promote job satisfaction.

One of the trickiest challenges for HR executives would be retaining their top talents and finding suitable replacements in case of attrition. The company makes a considerable investment to train and groom the recruits to become subject matter experts in due course of time. Thus the HR  team needs a long-term and sustainable approach towards managing the work-life balance of these employees, provide timely rewards & recognitions, and bring in the sense of empowerment by upskilling them.

Dynamic Industry Requirements

The energy industry is highly competitive and its working depends on many extraneous factors. Therefore, the industry has a dynamic approach inbuilt into its management practices.

The HR executives usually find it difficult to evolve a long-term framework because of the changes being effected in the management strategies of the industry. This not only greatly affects the delivery but also makes them apprehensive about following long-time HR policies.

Information technology has now become an integral part of the industry and has opened up many new job profiles, such as data analysts, automation engineers, software engineers etc. The HR strategy should dynamically change to support the technological advancement in each business groups and develop leaders who can translate business needs into digital solutions.

Diversity: Maintaining gender balance and multi-cultural workforce

Professionals from different corners of the world come to work in foreign countries, sometimes in remote and isolated locations. Working in these locations and away from family for long periods of time has an effect on the motivation levels. Adapting local culture, climate and food sometimes pose a challenge for these employees. Mid-career retirement is not a new thing for employees of both genders.

The HR has to drive interactive sessions, motivational work groups, and discussion forums to enable early detection of demotivation and prompt resolution.

Capacity building at new sites:

Any new oil and gas project is a huge commitment of capital and resources. Human resources managers are under huge pressure to make a project fully operational as the talent search for a new project is even more difficult than the established ones.

Apart from identifying suitable employees, the HR managers are also responsible for creating a suitable work environment for every employee recruited for the new project. This is an absolutely critical factor for the long-term growth and success of the new site.

The HR function is key to helping organizations in the dynamic oil and gas sector survive and even thrive amidst downturns. More importantly, they must ensure that the organizations are well positioned for the turnaround.

While the harsh on-site terrains of oil and gas industry set a huge challenge for the HR executives to keep the employee motivation level high, there are several rewarding experiences for an employee to be lured into this industry.

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


Human Resource ChallengesHR ChallengesOil And Gas HR Challenges

More items from easwaran

Q2, 2018 - Accelerated Profit Growth in the Oil & Gas Sector

  In a quarter where oil prices were at their strongest levels since early 2015, the oil industry largely reported a healthy bump in revenues and profits. Investors and institutions had anticipated this, expecting strong results, but although numbers were healthily in the black all around, not e ...

Easwaran Kanason

Posted 2 years agoOpinion > ProfitsQ2Oil Companies +6

BP’s US$10.5bn acquisition of shale oil asset re-confirms the importance of shale oil in the energy market

  Shale oil is the most significant development in the energy industry ever since coal was replaced by oil as the principal fuel. The noteworthy rise of shale oil extraction over the last few years has taken the market by surprise. The combination of drilling techniques together with developed h ...

Easwaran Kanason

Posted 2 years agoOpinion > Shale GasTight OilOil And Gas Industry Latest News +1

Oil Royalties in Post-Election Malaysia

Last Updated: August 1, 2018   136 views    Business Trends   Here is a brief background story of the growing debate about the allocation of oil royalties in select states in Malaysia.  The election that swept the former ruling coalition out of power in Malaysia three months ago was h ...

Easwaran Kanason

Posted 2 years agoOpinion > PETRONASMalaysiaPakatan Harapan +5

List of Upstream Operators in Malaysia (PSC Contractors)

  Petronas Carigali Conoco Philips Lundin Petroleum JX Nippon Mubadala Petroleum Ophir Energy HESS Kebabangan Petroleum Operating Company, KPOC TOTAL E&P RHP Mukah  Enquest Petroleum Sapura Energy Repsol Exxon Mobil Shell PEXCO N.V. Murphy Oil Ophir Production PCPP Operating C ...

Easwaran Kanason

Posted 2 years agoOpinion > MalaysiaupstreamOil Companies

5+ Do's and Don'ts, Dress code and Interview Aesthetics for the Perfect First Impression!

  An interview offers you a chance to make an impression on a prospective employer. Since it's often the first impression that matters most, what you wear to an interview becomes a powerful tool for projecting an image of skill, competence, and experience. Every industry has expectations when i ...

Easwaran Kanason

Posted 2 years agoOpinion > Interview Dos And Don'tsInterview Dress Code
All posts from easwaran