The truth is there are skills gaps and talent risks in the energy workforce, and they are only going to get worse unless talent is realized as critical to business performance. As the prices of oil rebound and profits rise once again, energy companies are forgetting the impending talent crisis that is approaching faster than ever. It is predicted that the majority of the energy workforce is approaching retirement age and with them they will take decades of knowledge and experience without which the business will suffer. Just planning to increase head count to compensate does not balance this out and drastically increasing headcount is a talent risk, just as high turnover.
The misconception is that talent is not a stagnant business process which can just be optimized and then left alone to be efficient. Talent is integral to the business, as a company is only as good as its people. Talent issues cannot be addressed through band aid-like fixes since it is a holistic process that needs to align with business strategy to be truly effective.
The bottom line is that CEOs seem to be confused about talent, and HR needs a bigger seat at the table. Whether organizations plan to mature through organic or inorganic growth, HR needs to be consulted to ensure strategic talent requirements are being met for long term sustainability. HR also needs be empowered to leverage more data, as this will help better refine the language of talent within the organization and educate senior leadership on the links between talent and business performance. Only by aligning the people strategy with business objectives will energy CEOs be able to see the crisis on the horizon and prepare for the oncoming storm.
The majority of energy CEOs do not think their skills gap will worsen in the future.
Ninety-eight percent of CEO are confident they have the right talent in place to drive success.
Organizational headcount will increase over the next 3 years.
Companies have a high performance culture based on 96 percent of CEOs.