Workforce Housing in Oil, Gas as a Recruitment, Retention Strategy

The gap will grow regardless of industry growth rate, according to a study by the Petroleum Human Resources Council of Canada. The report cited several factors that will drive demand for workers in Canada over the next decade; while industry activity growth will create between 18,300 and 38,700 jobs, with age-related attrition resulting in 44,200 to 45,300 open jobs as 23 percent of the workforce becomes eligible to retire.

“In the end, the need to attract workers to workforce accommodation is by addressing the other 12 hours during which they are not working."

Intense competition for talent within and outside the oil and gas industries, the paper noted, will create even more demand: a 3 percent non-retirement turnover rate will add 62,600 to 65,800 job openings between 2013 and 2022.

Combined, more than 125,000 to 150,000 new hires will be needed by 2022, the report predicts.

“There’s no relief in sight as oil and gas operations will experience a tight labor market in all sectors: oil and gas services (highest, with turnover up to 50 percent), conventional exploration and production oil sands and pipelines,” Chandler commented.

This trend has already started with rapid growth in Canada’s Bakken oil play, increasing total employment by 25,100 jobs, but the top challenge reported by employers is attracting and retaining workers – with half reporting retention and employee turnover problems, the report added.

Respondents also indicated fierce competition for experienced technical staff, with the top workforce issue being attracting and retaining workers in remote locations, found in another survey of 41 companies from seven petroleum industry sectors.

But housing isn’t readily available in certain regions with newcomers driving up home prices and apartment rent. Intensifying the problem is the turnover in oil, gas, mining and construction operations because of remote site working.

Turnover costs can be considerable, explained Chandler. It is estimated that the cost to replace one fly-in, fly-out worker can range in the $9,000 to $45,000 range, according to the report.