4 Ways Operational Excellence Helps Attract and Retain Employees

While the COVID-19 pandemic caused many workers to re-evaluate how they spend their time, the oil and gas industry has been particularly hard hit by a convergence of long-standing trends: retiring baby boomers, a societal and industry-wide shift towards sustainability, and the digital transformation of work.

In a recent EY survey of young Americans, over 62% responded that they consider a career in oil and gas “unappealing,” and 39% responded that they consider it “very unappealing.” Many young people believe that the oil and gas industry is a dangerous and dirty industry that contributes to climate change.

“A seismic cultural shift is under way that will make it increasingly difficult for oil and gas companies to attract and retain knowledgeable, highly skilled workers — undermining the industry’s ability to succeed in a rapidly changing world,” write the E&Y authors.

Over half of workers in the oil and gas industry have said that they expect to work in a different industry in the next five years, according to a recent survey by recruitment firm Brunel and Oilandgasjobsearch.com.

READ: Think it’s Bad Now? Talent Crunch in Oil and Gas Expected to Get Worse

Renewable energy firms are hoovering up the talent with 56% oil and gas workers saying that they would seek employment in renewables. That’s up from 38% the last time the survey was conducted.

Renewable energy may be garnering much of the attention, but the fact remains that fossil fuels will play a critical role in our industrial and economic systems for many years head.

Overcoming these changes and generational attitudes will take more than just improved processes, of course. But operationally excellent oil and gas companies will have an edge on of their competition when it comes to the high stakes of attracting and retaining top talent in the years ahead.

Here are four ways that operational excellence can help with talent shortages:

#1: Improves public perception

Increasing operational efficiency, by definition, also decreases carbon emissions. As young people move away from industries that they perceive to be causing harm to the environment, operational excellence offers an easy way to rapidly deliver operational improvements that benefit the environment and the bottom line.

The bonus is that operational improvements also tend to have financial benefits making operational excellence a win-win approach to tackling the challenge of decarbonization and attracting young people to the industry.

READ: Four Workforce Management Trends in Oil and Gas

#2: Makes life at work safer

Nobody wants to go to work to get killed or suffer life changing injuries. The oil and gas industry has made enormous strides over the past few decades but still remains a riskier than average place to work. According to the latest information from the American Bureau for Labor Statistics latest, 44 workers were killed in the industry in 2020 (7 in oil and gas extraction, 9 in drilling, and 28 in supporting activities).

Operational excellence can help improve the safety record of a company by ensuring that critical processes have appropriate fail safes in place to ensure that all workers make it home at the end of the day.  

#3: Reduces frustration

Your processes are how your workers experience with your company. Improving access to information and reducing friction in processes can make the day-to-day experience of workers smoother and more rewarding. A workplace with fewer maddening process quirks

Everybody wants to be part of a winning team, and operational excellence helps to create the environment where workers feel that the company is committed to excellence throughout the whole operation.

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#4: Technology Transforms and Automates Work

Technological innovation has helped oil and gas producers drive down unit costs for production volume and achieve more with less. For instance, multiple wells can be drilled on a single pad, which helps to reduce the drilling and completion process.

Similarly, as routine and repetitive tasks are automated, workers are freed up for more mentally stimulating and interesting work.

These technology-driven advancements help to take the pressure off oil and gas producers where labor is scarce and offers a more attractive, and mentally stimulating environment for the workers that remain.

Interested in Learning More?

The Operational Excellence in Oil & Gas Summit is the most inspiring showcase of oil and gas industry innovation in North America. Now in its 13th year, the summit brings together over 300 senior level executives to share use cases and showcase trailblazing technologies that will transform your operations. Join Oil and Gas IQ, November 1-3, 2023. Download the agenda for more information.