Recruitment & Retention Horizon: Navigating Generation Y

Recruiters are facing many challenges in today's world of employment needs, placing them in a time of great change. The aging workforce is slowly retiring while members of Generation Y, or the millennial generation, are rapidly becoming the go-to candidate to fill the vacant spots in the oil and gas industry.

It is essential for business leaders to do more than just observe the changing times and demographics--they must understand them and be at the forefront of recruiting efforts in order to successfully attract and retain the next generation of oil and gas talent.

"Companies' commitments to employees and career expectations have evolved drastically," said John-Frederick van Zuylen, group manager of Power & Renewable Energy at Allen & York and president of the Dubai chapter for Young Professionals in Energy (YPE).

"Only well-established companies with long-term goals and stable business can afford to have a real recruitment and retention strategy. Other companies need to adapt more frequently and more quickly to changes in the market."

The oil and gas industry contributes significantly to the U.S. economy and is one of the nation's largest employers. Even though the country is still facing a struggling economy, the nation's energy companies provide well-paying jobs, revenue to governments and bountiful opportunities for Americans – totaling an economic contribution that continues to outpace other major industries in North America.

Specifically, the energy stimulus contributed $476 billion to the U.S. economy in 2010, equal to about 60 percent of the 2009 federal stimulus, according to the American Petroleum Institute (API).  And the energy industry currently employs about 9.2 million full-time and part-time jobs, accounting for 5.2 percent of the total employment in the country, according to research data analyzed by PricewaterhouseCoopers.

While America is going through a boom in U.S. oil production, the shortage of skilled, educated workers is hurting the industry's recruiting efforts. There are four big shifts that have radically redefined the workforce and corresponding recruitment, retention and training strategies, according to a white paper released by McCrindle Research in May 2009. These shifts are: an aging population; transitioning generations; increasing options/information; and a redefined work life.

In 2010, there were 40.3 million citizens aged 65 or older in the United States, accounting for 13 percent of the total population, making it the largest age group than in any other decennial census, according to the United States Census Bureau. This number is up from 31.2 million in 1990 and 35 million in 2000. Furthermore, this age group accounts for 57 percent of full-time workers and 42 percent working in management, professional and related occupations. In just 15 years, by 2028, the last of the baby boomers will be reaching retirement age and leaving the labor market. This aging workforce is even more evident in the oil and gas industry; the average age of an O&G worker is 49, considered among the oldest of any industry, according to API.

As veterans and baby-boomers retire, recruiters are forced to focus on the upcoming generation – Generation Y. This generation, which currently makes up about 10 percent of the U.S. workforce, was born between 1980 and 2000. Gen Y, the largest American generation at 92 million strong, compared with some 76 million baby boomers, will make up roughly three-quarters of the work force by 2028 and the oldest millennials will be entering leadership positions by that time, if not sooner.

With generations mixing in the workplace, the need to understand the younger group is ever crucial. Having a mix of generations in the workplace is not new but traditionally, juniors performed menial work while their senior coworkers held managerial positions – roles juniors would eventually fill as they moved up the ranks. This dynamic does not always ring true today. The new reality is that older leaders are managing teams consisting of several generations with diverse backgrounds or young graduates are managing older workers.

Members of "Gen Y will continue to transform the workplace to better suit their needs," stated Stefanie Hanz, a recruitment consultant. "This generation is work-oriented and consistently searching for development opportunities while making sweeping changes to the way organizations and their people work."

Generation Y's wants and needs can vary from those of older workforce generations, according to the whitepaper "The Talent Crisis in Upstream Oil & Gas,"  by Deloitte Research. Unfortunately, the newer generation grew up with some negative perceptions of the oil and gas industry, fed by events such as the 1989 Exxon Valdez oil spill in Alaska and suspected price manipulation in the aftermath of hurricanes Katrina, Rita (2005) and Ike (2008).

Furthermore, the millennials witnessed the layoffs of their parents during this period - people who stayed with the same employer for years, if not decades -so by understanding and engaging them, Gen Y will be better facilitated at connecting with older staff and customers.

"Gen Y [wants] clear expectations of work so that they can reach assigned goals but also older generations must allow for Gen Y to prove themselves so that they can exceed expectations instead of being micromanaged," said Hanz. "They want the ability to contribute as individuals and team members but they also want to have the opportunity to make a difference, learn and prove themselves."

This generation also expects feedback, consistently and regularly. Immediate, effective feedback allows millennials to produce better, quicker and more efficiently. The key is to provide constructive criticism in a timely manner.

"Regular feedback is very motivating and is something Gen Y yearns for," said Hanz. "The official 12-month performance review isn't typically enough, and if there is an opportunity for development, let them know in a timely manner. They aren't just looking for praise but are searching for constructive feedback in order to produce better work and grow as individuals."

It has been said that it has never been more difficult to attract, recruit and retain staff than now. But surprisingly, this generation is the most educated workforce ever, and has the ability to travel, work overseas or to retrain for yet another career.

Members of "Gen Y have so many resources at their fingertips that they feel everything should be given to them when wanted," said Matt Gelotti, vice president in Aon's client development group in Houston and YPE's Houston-chapter president.

"Gen Y has the education, and have access to a multitude of information, and they want the paycheck, the notoriety and to be in charge. But as a senior individual at a company, when looking at Gen Y on paper, they lack experience. So this Gen Y person has only mastered hypothetical theories versus real-life experience that molds and teaches an individual through trial and error experiences from the workplace. Overall, Gen Y lacks the patience."

Gen Y is looking for long-term career development but does not have long-term employment loyalty. Those aged 20-24 are three times more likely to change jobs in a year than those aged 45-54, according to Deloitte Research.  

"Moving around is just nature of the beast," said Hanz. "Gen Y is posed to now work on projects or be hired as contract employees [instead of being] hired full-time because employers are shifting away from the typical employment model. Yes, they are known for moving around quite a bit and they will leave if opportunity isn't present."

"The lack of loyalty in Gen Y is looked down upon by baby boomers," commented Gelotti. "Gen Y will easily jump from one employer to another for a dollar or two whereas previous generations wouldn't. They have to move, jump and relocate in order to get more compensation."

This decline in tenure can be viewed as a character flaw in Gen Y but the cause is not a lack of loyalty, nor a poor work ethic; it's merely a response to the changed times.

"So, for most players in the job market, many key functions have become more short-term," reiterated Frederick van Zuylen. "This may sound negative, but it is not necessarily so. The younger generation is more flexible for this new approach and most often welcomes change as an opportunity to experience and get involved in different projects or even different functions."

Employers can capitalize on this generational difference by "developing" Gen Y by providing opportunities to learn through experience; "deploy" them by designing effective organizational roles and environments; and "connect" them by creating seamless networking infrastructures, noted Deloitte Research's white paper.  

The organization created the develop-deploy-connect model that helps for organizations to generate capability, commitment, and alignment in key workforce segments, which in turn improve business performance. The organization says that when this model is implemented, the attraction and retention of skilled talent largely take care of themselves.

By "developing", one can provide real-life learning opportunities that employees need to master a job. Not traditional classroom or online education but by "trial-by-fire" experiences that stretch their capabilities and the lessons they learn from peers, mentors or others.

"Mentors are vital, [even] critical to Gen Y," stated Gelotti. "A mentor that can oversee their growth, watch over them, and lead them is a huge plus in a work environment. It shows that the company is invested in them and their overall professional development. So in the next five to 10 years, this generation can help grow the business."

To "deploy", Deloitte Research suggests working with key individuals to (a) identify their deep-rooted skills, interests, and knowledge, (b) find their best fit in the organization and (c) craft the job design and conditions that help them to perform.

"If companies can show Gen Y that they will have the opportunity to engage with senior management that is also a huge benefit," said Gelotti. "Being in meetings with senior management, their boss' boss, listening to ideas, witnessing how ideas are played out, giving them opportunities to see, hear, learn, to find their niche, are huge bonuses to this generation. They help them to better perform because they feel challenged and excited."

The third talent strategy Deloitte Research suggests is to "connect" by providing critical employees with the tools and guidance they need to (a) build networks that enhance individual and organizational performance, and (b) improve the quality of their interactions with others.

Typically, one would complete levels of traditional education or forgo them entirely, move into the workforce– maybe have a career change or two – and then head into retirement, all the while cautious about separating the work-life balance.

However, Gen Y is open to different roles, phases and careers. The education phase is extending well into adulthood and throughout the work life which in turn helps them form their long-term career goals. This generation needs work arrangements that align individual and organizational needs in flexible ways. Gen Y will experiment with different industries and may revamp their career multiple times, all while looking for opportunities that will take them to other states and countries.

"Relocation opportunities are considered a perk to Gen Y. They are looking to work overseas [and] explore the world while gaining operational experiences globally," said Gelotti.

This generation is work-oriented but requires the flexibility of having multiple employment perks, such as flexible work arrangements that accommodate personal circumstances and working styles. This generation searches for employers that allow for flexibility, opportunities to embrace their entrepreneurial ambitions and the opportunity to use social networks at work without strict corporate guidelines. Gen Y is used to working anywhere and everywhere at any time of day or night on their laptops, tablets and smartphones.

"Often times, people get over worked, burnt out and then have the urge to move on. Employers need to offer opportunities that blend professional and personal time," Gelotti said.

To help with the work-life balance, upstream oil and gas companies can adopt innovative rewards programs that build creativity and flexibility into their work environments, thereby attracting and motivating employees, according to Deloitte Research. Examples of these initiatives can be supplementary rewards programs, such as annual incentive plans, deferred compensation, profit-sharing, stock options, recruiting incentives, flexible work schedules and virtual work alternatives.

The organization also noted that one leading upstream oil and gas firm raised its retention rate to 30 percent above the annual industry norm by funding hands-on training for all drilling employees. These types of strategies target Gen Y and reward performance with flexibility while helping to develop the social infrastructure needed to collaborate effectively stated the organization.

While being criticized as fickle, self-focused, lazy and needing to be coddled, the reality is that Gen Y is just a reflection of its time. Economic cycles come and go, jobs aren't guaranteed and profits are seemingly preeminent--so it is not an inherent selfishness but a response to corporate realities, stated McCrindle Research.

"When companies can offer something unique and compelling that sets them apart from other industry competitors, whether compensation, access to ground-breaking technology, or flexible work arrangements, then employers will attract the best and brightest," said Hanz. "Loyalty and commitment from Gen Y can indeed be garnered."

"You have to hang on to your talent and to do so you have to know your talent," added Gelotti. "These are the people you are counting on to take over the reins 15-20 years down the road, so get to know them. If you invest in them early, the benefits will pay off in the long run."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

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Getting Serious about Ex-Military Recruitment

As many Western countries downsize their military forces in response to geopolitical trends and, more commonly, a reduction of military budgets, thousands of soldiers, sailors and airmen are facing tough times amid high levels of unemployment. But while the military in these countries is scaling down, the oil and gas industry is seeing an opportunity to fill gaps in their own workforces.

Now, it appears that governments are looking to take a more active role in channeling former servicemen and women with a variety of skills into the oil and gas industry. In the UK, for example, the Department of Business, Innovation and Skills last month announced a national program to retrain ex-military personnel for the oil and gas industry in a bid to help the sector find the additional 15,000 staff it will need over the next five years.

The initiative is still in its early days, as Rigzone found out when it contacted the Department of Business, Innovation and Skills. The department appeared to have little idea about how the national program will look. However, a key organization tasked with bringing about the program is trade body Oil & Gas UK, whose Employment and Skills Issues Manager Dr. Alix Thom filled in a few of the details for us.

First up, Thom pointed out that the UK oil and gas sector has for a long time recruited personnel from the ranks of the military.

"I did it myself 20 years ago when I worked at Wood Group," she said. "But that's a few big companies that can manage the process themselves and in relatively small numbers over time."

For example, one big company involved in the oil and gas sector that has formalized its approach to recruiting ex-military personnel is GE Oil & Gas, which holds career fairs aimed at the military and also has what it calls a Junior Officers Leadership Program designed to prepare young officers for life working within a corporation. Rod Christie, head of GE Oil & Gas' Subsea Systems business, explained this in more detail in an interview with Rigzone published in February.

But a comprehensive and nationwide approach to finding suitable ex-military people with the skills to work in the UK oil and gas sector would help both large and small companies fill gaps in their workforces.

"We [Oil and Gas UK] are now linked to the Ministry of Defence [MoD] at the highest level with its people who are responsible throughout the UK for finding employment for ex-services personnel. And one of the things we weren't aware of, until we made this connection, was that in any normal year there are between 18,000 and 20,000 armed services leavers. And that's without any spikes when there's a cut announced," Thom said.

"So, there's a huge potential resource there, but we're absolutely realistic. We're not going to find 15,000 people who are going to fit our industry. We're not going to find a lot of geologists or drilling engineers, or whatever, but there will be quite a number of people in the military who we think have skills and qualifications that are transferable to our industry."

Thom explained that with this support at national level we are able to then develop a suite of tools that the oil and gas industry can use to best select former members of the armed services.

"For example, there's an exercise being done at the moment to map the skills of oil and gas jobs, while people on the military side are doing the same for military jobs, so that we can prepare and understand the skills that, say, someone with a specific job title in the army has," she said.

"Because if you look at the CV, quite often there is a lot of language in there that recruiters won't understand. This is a bit of work being done at national level beforehand that will facilitate recruitment in greater numbers and identify the transferable skills more easily.

This will help Oil & Gas UK and in particular OPITO, the training body that Oil & Gas UK is working with, to develop specific transition training courses.

Last July, Rigzone reported that OPITO has already made forays into the activity of retraining former military personnel for oil and gas roles. For example, for a few years now OPITO has been piloting its "Transformation Training" concept – a 12-week program that takes a competence-based approach to upskilling workers who have gained knowledge and experience in other sectors. One of these OPITO courses was carried out at Aberdeen College, specifically focusing on training ex-Royal Air Force personnel who had been made redundant after the closure of Scottish RAF bases.

Oil & Gas UK is also working with the Career Transition Partnership (CTP) – the UK's official provider of resettlement of demobbed personnel from the country's armed services. Thom explained that the CTP is already involved on a localized level, particularly in Scotland, with channeling ex-military people into oil and gas jobs.

"But in other parts of the country that knowledge and connection doesn't exist. So now that we're at national level, we can access the whole UK network of careers consultants at the Careers Transitions Partnership," she added.

Thom pointed out that the armed services could be a source of technicians, such as mechanics and electricians from the RAF, Navy and the engineering regiments of HM Army. Meanwhile, she said that submariners are currently in demand for certain kinds of subsea work.

"And Logistics is an area where we expect to find quite rich pickings. So, there's a whole suite of roles," she said.

"But our key, and most difficult, area to fill is engineering. So that would be our prize."

It is still in its early days, but if the UK gets it right, the partnership between UK Oil & Gas, OPITO, the MoD and the CTP could provide a template for how other countries scaling down their armed forces might go about finding roles for ex-military personnel within their own oil and gas sectors.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

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Ex-Mil Recruitment Program Seeks Charity Status

An ex-army officer who works for oil and gas services provider Senergy Development Solutions is seeking charitable status for a program he launched in 2011 in Aberdeen, Scotland, that seeks to smooth the path for former military personnel looking to move into the energy industry.

Magnus Jeffrey, a former captain in the Royal Scots Borderers and who is now a project manager at Senergy, set up The Network Aberdeen in November 2011 to help other former service staff interested in following him into the energy sector. According to Jeffrey, in spite of lacking the technical experience for a career change to the energy industry, the nine years he spent operating in demanding conditions and environments for the army meant he had the right skills for taking on a role with Senergy.

“The hardest thing is definitely that initial step. A lot of people leave the services without relevant industry qualifications, but they often have the knowledge and skills needed, as well as broader experience garnered from operational military work,” Jeffrey said in a statement released Friday.

“The oil and gas industry is a dynamic and exciting industry in which to work, and is in many ways similar to the military. Critically, it has job opportunities so will naturally be a focus for service leavers.

“However, many of these individuals struggle to get past the initial application stage. Their applications often fall foul of the automated systems as it is difficult to relay their appropriate skills and expertise on paper. If the same individual is able to meet with someone and given the opportunity to explain what they can offer, the outcome can be very positive for both parties.”

Senergy itself has recently recruited another former infantryman, Andy Wilson, as well as an ex-Swedish naval officer, Erik Bergman.

The Network Aberdeen is now attempting to gain charitable status in the UK after having been successful in helping more than 10 people into work. The organization aims to be the focal point for service leavers in the North East of Scotland, while it is also now providing an increasing level of support to those people leaving other uniformed services, including the police and fire brigade.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ex-Mil Recruitment Program Seeks Charity Status

An ex-army officer who works for oil and gas services provider Senergy Development Solutions is seeking charitable status for a program he launched in 2011 in Aberdeen, Scotland, that seeks to smooth the path for former military personnel looking to move into the energy industry.

Magnus Jeffrey, a former captain in the Royal Scots Borderers and who is now a project manager at Senergy, set up The Network Aberdeen in November 2011 to help other former service staff interested in following him into the energy sector. According to Jeffrey, in spite of lacking the technical experience for a career change to the energy industry, the nine years he spent operating in demanding conditions and environments for the army meant he had the right skills for taking on a role with Senergy.

“The hardest thing is definitely that initial step. A lot of people leave the services without relevant industry qualifications, but they often have the knowledge and skills needed, as well as broader experience garnered from operational military work,” Jeffrey said in a statement released Friday.

“The oil and gas industry is a dynamic and exciting industry in which to work, and is in many ways similar to the military. Critically, it has job opportunities so will naturally be a focus for service leavers.

“However, many of these individuals struggle to get past the initial application stage. Their applications often fall foul of the automated systems as it is difficult to relay their appropriate skills and expertise on paper. If the same individual is able to meet with someone and given the opportunity to explain what they can offer, the outcome can be very positive for both parties.”

Senergy itself has recently recruited another former infantryman, Andy Wilson, as well as an ex-Swedish naval officer, Erik Bergman.

The Network Aberdeen is now attempting to gain charitable status in the UK after having been successful in helping more than 10 people into work. The organization aims to be the focal point for service leavers in the North East of Scotland, while it is also now providing an increasing level of support to those people leaving other uniformed services, including the police and fire brigade.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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Oil Consultants Ltd. Recognized for Recruitment Efforts

UK based specialist recruitment agency, Oil Consultants Ltd., has won its second Queen's Award for Enterprise in International Trade in four years. This award comes on the back of skills shortages in the global oil and gas industry.

The $26 million (GBP 17 million) company was formed in 1999 by oil industry workers who spotted an opportunity in the market. It now provides individuals and teams of technical personnel to clients in over 75 countries. In the past two years the company has implemented an ambitious growth plan that has seen it double staff numbers and turnover as well as establishing operations in Australia, China, Indonesia, Malaysia, Norway and Trinidad as well as the United Arab Emirates.

"We are absolutely thrilled to have been given this award for a second time in such a short period. The award for international trade is given to companies who have demonstrated substantial and sustained growth in international sales over the last three years," Chief Executive Helen Smith said.

"Our success is due largely to the levels of customer care we demonstrate along with the knowledge we have developed of the international oil and gas industry. This understanding of our client's business has enabled us to develop a rapid response service where we can place consultants globally at very short notice – our current record stands at less than four hours. We have also implemented procedures to ensure we supply only the highest quality personnel such as our in-house developed competency scheme and our technical expert panel.

The company now has in excess of 16,000 consultants registered and is continuing to implement its international growth plans during 2013, including establishing a more significant U.S. presence and further increasing the number of disciplines provided. 

"In most instances we require our consultants to have at least four years' experience in their discipline, so to have so many registered with us is a reflection of the level of service we provide to our consultants as well as our clients. With further growth planned over the next year this is a truly exciting time to be part of this company," Helen concluded.

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GE on Technical Recruitment Drive in Oil & Gas Sector

GE Oil & Gas plans to boost its technical offerings to energy sector customers during the next few years through significant investment and a recruitment drive, GE Oil & Gas CEO Daniel Heintzelman confirmed Monday in Florence, Italy.

At the GE Oil & Gas 2013 Annual Meeting, attended by Rigzone, Heintzelman said that GE Oil & Gas is "certainly looking for more talent on the technology side" and "not just in easy places to hire but in emerging markets".

Mindful that "50 percent of today's 10 million oil and gas workers are eligible to retire in 2015", Heintzelman said that the entire industry faces a “human resources challenge".

"There is a tremendous need for us to be proactive," when it comes to training and hiring the next generation of oil and gas industry workers, Heintzelman added.

GE Oil & Gas has already significantly grown its workforce in recent years. The business employs more than 37,000 people today compared with a total of just 12,000 in 2009, although much of this growth in personnel has boosted by acquisitions of other firms.

Heintzelman also pointed to GE's own contribution in adding to the training and education of oil and gas professionals through the firm’s Florence-based Oil & Gas University, where oil and gas professionals are taught by GE Oil & Gas experts, university professors and other professionals in a six-month program.

GE also plans to double its technology investment spend over the next three years, compared with the previous three years, Heintzelman confirmed.

Now a standalone segment within GE, GE Oil & Gas reported 4Q 2012 revenue of $4.5 billion and full-year 2012 revenue of $15.2 billion. The company announced a $500 million turbomachinery and services deal with Petrobras on January 15.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

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