The economic events of the past 18 months have forced the oil and gas industry to make hard yet necessary decisions, including a reduction in workforce. Now, as conditions appear to be improving, the industry must take care to make strategic investments in the development of new and existing talent. Companies that follow this mindset will arise stronger and be better positioned when the market recovers.

For better or worse, the industry has traditionally responded to downturns with a sharp shift in people strategy. This time around the greatest benefit might lie in looking at recruitment and retention through a more progressive lens. One key tactic of this approach is implementing a more strategic recruiting and career development program that cultivates a new generation of leaders who will help companies—and the industry— remain strong in any market.

Communicating the need to recruit now

As the energy sector prepares for recovery, organizations face a number of hurdles to find talent with the right skills and qualifications while also allaying the anxieties of existing employees.

Workforce reductions are an unfortunate but inevitable response to market declines and help ensure that a company is well-positioned to serve the industry as it rebounds. The best way to handle headcount reductions, however, is not through across-the-board cuts in manpower but through strategic balance. In fact, hiring during lean times—if done strategically—can place an organization in an advantageous position when the market turns around. Leadership must find an appropriate way to communicate this message to current and future employees based on the specific culture of the organization.

Another common challenge facing human resources leadership centers on the investment required to hire and train new employees. There might be mixed perceptions around the resources used to train new employees while other areas of the business have to scale back their programs. However, right now the supply of graduates in the fields most relevant to oil and gas exceeds the demand. Companies therefore are in an advantageous position to recruit high-potential graduates and fast track their development in preparation for leadership roles.

Finally, there is the challenge of convincing the young men and women entering the workforce that the oil and gas industry offers attractive long-term opportunities. Given the current volatility, not every promising candidate who is offered a position will accept it. New graduates with engineering degrees have career options in other industries.

One way organizations might reassure current and recently graduated students is to have them speak with emerging professionals who have one to two years of experience in the company. These professionals can share their enthusiasm for the industry, describe their day-to-day work activities and answer questions, which will ideally clear up some misperceptions and make students more enthusiastic about entering the industry.

Early career professionals aren’t the only ones who can inspire prospective employees. Providing prospective candidates the opportunity to interact with senior leadership who have witnessed and managed through challenging industry cycles might reassure them that the market will recover and that long-term opportunities are available. Ideally, selected candidates will be with the company for many years to come. Having higher level professionals participate in recruiting events also demonstrates that senior company leadership is active in developing and mentoring the next generation.

Looking beyond technical skills

The main challenge for recruiting above entry level is finding experienced and talented individuals to fill specific gaps in technical leadership. Now more than ever companies need leaders who are skilled in both hard science and business acumen. This combination will ideally enable them to understand how their business unit can best maximize profits and minimize spending. Many engineers never get the necessary exposure to finance while attending a university, so on-the-job training is critical to cultivating and nurturing these skills.

Sales management is another important role that requires so-called soft skills. During or following a downturn, an effective salesperson must not only find new and creative avenues to generate revenue but also maintain relationships with clients who might not be buying right now. Proactive relationship management is always important and becomes especially critical during slower cycles.

An equally important type of relationship is the one between managers and their direct reports. Effective managers in any area must keep the lines of communication open. Tensions run high during uncertain times, but anxiety can be eased by providing employees with transparent and consistent communication as well as reminders that their hard work is appreciated by management. A positive atmosphere will produce a more satisfied workforce and help to create a culture of success.

Five-year rotational program

Even before the market decline, Weatherford management recognized the need for a sophisticated and innovative recruitment program to develop the next generation of leaders. These leaders come from the growing pool of newly minted graduates in engineering as well as the company’s current employees that show high potential in a variety of areas.

This year Weatherford officially launched its NextGen program, which provides a reliable, repeatable and consistent framework and infrastructure for identifying and developing the company’s future leaders. Through a structured five-year rotational program, participants learn management skills that complement their technical background and travel to job sites around the world. Soft skills such as finance, supply chain, people management and communication are specifically addressed. This combination of training and hands-on experience, both in the field and in the office, will position NextGen participants to be more effective leaders in variety of business areas.

Ongoing process

NextGen is not simply a series of classes or steps that result in a predetermined leadership position. The program includes periodic individual reviews to assess each participant’s progress and level of satisfaction in their development. A continued dialogue keeps the employees engaged, makes them feel valued and enables the company to guide them on the right career path.

As the industry anticipates the end to the current downcycle, companies must remember that the business is cyclical in nature and might be faced with a similar landscape in the future. It is incredibly important for companies to continue cultivating leaders with the proper skills and management mindset for the industry to remain strong in any business climate. A recruitment philosophy that focuses on enhancing core competencies and training future leaders in a variety of soft and technical skills will help guide the industry into its next period of growth and beyond.

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