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Perspectives

An oil and gas perspective: Human capital trends

Fueling change in the utilities industry

Seismic changes are taking place in today’s workforce and workplace—and in the technologies used to do work. Our annual global human capital trends report showcases the profound shift that leaders are facing worldwide. This report takes a closer look at three trends that were of utmost importance to oil and gas (O&G) respondents.

Overview

This year's global survey delivers insights from more than 11,000 business and human resource leaders across 124 countries—our largest survey to date.

For O&G organizations, the key topics are:

  • The workforce ecosystem: Managing beyond the enterprise
  • New rewards: Personalized, agile, and holistic
  • The longevity dividend: Work in an era of 100-year lives

For more information on each trend, including specific examples of O&G organizations putting the trends into action, download the full report.

The workforce ecosystem: Managing beyond the enterprise

The O&G industry has been a longtime proponent of freelance work and contractor employment. However, O&G leaders have often taken a siloed view of talent pool management, with the supply chain function typically responsible for contractor procurement. Increasingly, O&G business leaders and chief human resources officers (CHROs) recognize the need to actively and strategically manage relationships with both traditional and alternative workers and to integrate effective management practices into every facet of the organization.

people connections

There are over 77 million1 formally identified freelancers in the United States, Europe, and India. Yet only 16 percent of O&G survey respondents said their organizations have a well-defined strategy and established policies for the hybrid workforce.

1 Ben Matthews, “Freelance statistics: The freelance economy in numbers.” www.benmatthews.com, January 8, 2017.

New rewards: Personalized, agile, and holistic

Historically, O&G companies have been known for rich rewards programs that value and benefit long-tenured or senior employees. While this approach has worked in the past, the newest generation of employees are demanding that organizations expand their offerings to include a wide range of programs for physical, mental, financial, and spiritual health. Expanding reward programs to accommodate for these preference shifts is becoming important to attracting and retaining top talent.

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Only 5 percent of O&G survey respondents described their organization’s rewards as innovative and flexible in regard to type and frequency, personalized to employee preferences, and aligned to incent specific behaviors.

The longevity dividend: Work in an era of 100-year lives

O&G companies are bracing for the anticipated retirements of many highly skilled, long-term employees. However, forward-looking organizations see this "retirement cliff" as an opportunity; a longevity dividend that can help them address a looming societal issue and leverage a proven, committed, and diverse set of workers.

But doing so involves innovative practices and policies to support extended careers, as well as collaboration between business leaders and workers, to enable the transition of critical experiential knowledge to the next generation.

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Only 17 percent of oil and gas survey respondents indicated that age is viewed as a disadvantage in their organization. The remaining respondents indicated that age doesn’t have an impact on ability or is viewed as an advantage.

Leveraging core strengths to prepare for the future

The collective impact of these three human capital trends demand that C-suite executives and HR employees stay on top of their people strategies and continuously align them with business goals and objectives. In an era where human capital is inextricably tied to social capital, O&G companies can leverage core strengths to account for the 2018 trends—and how they prepare for the human capital challenges of the future.

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Global Human Capital Trends 2019

The Global Human Capital Trends 2019 survey should only take 15 minutes of your time to complete. It provides a list of topics identified by our global Human Capital group and asks you about the relevance of each of these topics to your organization, and your readiness to deal with them.

Let's talk

Jonathan Moore
Managing director | Deloitte Consulting LLP
 
Ron  Harman
Principal | Deloitte Consulting LLP
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