Leadership and talent attraction and retention – an existential risk to our industry

Abstract

Political, social, shareholder – and increasingly talent – pressure is driving a seismic shift as oil and gas operators are required to transform into diversified energy companies. Attracting and retaining the required leadership and talent to drive this transformation is an existential risk to our industry. 10.5% of the total workforce left the industry during the 2019/2020 oil price crash. Since 2020 the experienced oil and gas industry workforce has aged and will take critical skills and experience with them into retirement. 40% of Australian oil and gas recruiters believe retaining this knowledge and replacing these skills are the industry’s biggest challenges. In parallel, events in August 2023 in Western Australia have demonstrated the immediate market impact workforce unrest can have. Concurrently, it is becoming harder to attract talent to the industry. The competition for adaptive leaders and high-skilled workers has been accentuated as the oil and gas sector continues to evolve and now competes for these skills sets with other industries. Environmental, Social and Governance (ESG) performance is increasingly becoming an important factor in the industry’s ability to attract and retain talent. In a recent global talent index report, 85% of respondents stated ESG is a factor in whether they will stay or leave an oil and gas organisation. Interestingly, 55% of those open to switching sectors would be interested in switching to renewables. In this paper, I provide oil and gas companies with pragmatic guidance on how to quantify the impact of these challenges, adapt the industry narrative, and re-position as an employer of choice.