In 1971, a fresh-faced David Bowie warned his elders to “Turn and face the strange changes.”
Forty years later, the world is still changing: politically, environmentally, technologically, and generationally.In the oil and gas industry, we have gone from a “peak oil” mindset to embracing the possibility of US energy independence in a matter of years.
The industry is preparing for another change, one that is as daunting as it is exciting: a great “crew change” as older industry leaders retire and new leaders take their place.But where will the new talent come from?A recent survey by Hays Oil & Gas found that 43% of industry employers in the US cited skills shortages as a significant issue, with 66% anticipating increased hiring.
Furthermore, fewer young Americans are entering the oil and gas industry, and a dismal worker replacement ratio projects that there is only one young American worker for every four approaching retirement.The generation gap seems more like a crevasse.
But there is hope in the Millennials, a generally well-educated, largely purpose-driven (and yes, sometimes David Bowie-quoting) generation of young professionals born between the early '80s and the first years of the 21st century.In October, 1,400 delegates, including young professionals, students and industry executives from around the world, convened in Calgary for the fourth World Petroleum Council Youth Forum to discuss changes needed in the industry and changes already taking place.
“The generation that's being targeted at this forum is exactly who [the industry] wants.They're young, ambitious engineers and finance people and tradespeople who will help fill that gap going forward,” Robin Greschner, investor relations and communications advisor at Lightstream Resources Ltd. in Calgary, told Oil and Gas Investor before the forum.“I think the industry also recognizes that it might need to shift in order to attract and retain that talent.”
But how to shift?And how to retain Millennials?The age group is arguably the most educated, most connected and most traveled generation yet, making it an attractive hiring pool for any employer, let alone an oil and gas company seeking a petroleum-engineer-cum-MBA.
But, according to , Millennials will spend a median of two years with an employer, compared to five years for Generation X, seven years for Baby Boomers and 10 years for the Silent Generation.
“We no longer work for money, but for purpose,” said Kali Taylor, executive director of Student Energy, a nonprofit that seeks to shape the new generation of energy leaders.“And job security and job loyalty don't exist for us.We want diversity in our careers.”
That desire for purpose and diversity sometimes catches older folks off-guard and might seem to be an attitude of entitlement.
“There is a perception of a 'Me Generation,'” said Van Zorbas, managing partner at Deloitte Canada.He said that Millennials generally don't want to sit in a hierarchy or wait 15 years to make partner in order to advance their careers.“We explain to our clients, it's not about this generation wanting to work less, it's about this generation wanting to work when they want to work...This generation has got a huge amount of eagerness and energy to drive forward… and that eagerness sometimes translates as 'I don't want to wait.'”
Greschner added: “One characteristic of the Millennial Generation is an increased consciousness, I think, of environmental and ethical principles.” So what's the cool factor in working for an industry best known in mainstream media for the Macondo blowout or the Exxon Valdez oil spill?
Technological innovation, which appeals to the tech-savvy generation, is a start.“The technology we use is light years ahead of what other companies and other industries are using, but people don't see that,” Birlie Bourgeois, manager of strategy and planning at Chevron Canada, said.
Green and community programs also help.Pipeline company Enbridge Inc.'s Neutral Footprint program has instilled a sense of pride in both employees and customers, said Laura Eyford, the company's corporate social responsibility strategist.
Indeed, there was an excited buzz around the topic of renewable energy, which stood out among the more standard conference fare of Arctic drilling, shale exploration and midstream infrastructure.The segment is expected to make up a larger share of the energy mix in the future.
“The carbon bear is growling,” Tom Rand, managing director at MaRS Clean-tech Fund in Toronto, said.“The climate bear is waking up.And the cleantech bulls are coming out to play.” So look out, you rock 'n rollers.
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