Eighty-three percent of oil and gas chief execs surveyed say their talent management strategies need to change, but most feel they don’t have the human resource data they need, PwC reported in its 14th Annual CEO Survey.
Oil and gas companies are increasingly shifting their human resources (HR) operations from a back office function to a key partner in corporate strategy, PwC noted in the report. An oil and gas company’s ability to gather comprehensive hard data in a central system has become increasingly critical as companies face a shortage of talent, complex workforce needs and a large number of Baby Boomers exiting the workforce.
The average cost of recruiting and training a new engineer can be between one and one half to twice that engineer’s annual salary, in addition to efforts to initially identify that worker resource.
“If organizations are not able to retain this talent long enough to make the investment worthwhile; in other words, if large numbers of employees voluntarily leave before approximately two years, the financial impact can be significant,” PwC noted.
Analytics that combine internal and external data can help identify whether higher salaries are driving turnover or managers that have a higher-than-average turnover of workers, PwC noted. Technology and analytics can also help a company speed up the time it takes for a new worker to become productive and autonomous by allowing the HR organization to see how different rotations within a company improves results, or experiment with training programs at different career stages or mentoring programs.
HR technology and analytics can also identify the right training for employees and leverage economies of scale such as regular regional training sessions or social media and informal video “how to” segments to reduce travel costs and address training needs on a near real time or just in time basis.
A number of human resource information systems (HRIS) platforms are available on the market that can aid oil and gas companies in HR planning. These systems go beyond payroll and employee information to include talent management, resource planning, succession management, recruiting, performance management, Cydney Aiken, advisory director in PwC’s People and Change practice, told Rigzone.
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