There was significant emphasis on nurturing the next generation of energy specialists at Offshore Europe 2009 last month. One of the highlights was a breakfast at which members of Oil & Gas UK’s Next Generation Task Group presented two proposals to business leaders and the industry at the Dragons’ Den-style breakfast briefing.
Energy invited the two key presenters to summarise their propositions, the first of which was given a resounding thumbs-up while the second clearly worried the dragons, with only one offering genuine encouragement.
“Dragons” for the morning were Bob Keiller, CEO of Production Services Network (PSN); Oil & Gas UK co-chairwoman Deirdre Michie, of Shell, and Offshore Europe 2009 chairman Thomas Thune Andersen.
Proposition one: hit schools UK-wide with a systematic campaign, by Sarah Butcher, of Oil & Gas UK:
“We want to brand recruitment and education activities with 11 to 18-year-olds and would like to ask the industry for £83,000 in return for raising awareness of the UK oil&gas industry among school-leavers, increasing the size of the talent pool from which to recruit and helping to avoid the high labour costs associated with the boom-bust cycle.
“Why is this important? Cast your mind back to 2006, 2007 and early-2008, when our industry was booming and we couldn’t get oil&gas out of the ground fast enough. A major problem companies encountered was recruiting enough talented individuals to carry out all potential projects.
“The global economic climate has changed dramatically since the boom, and the effective price of oil&gas is nowhere near what it was. But the global recession will end, commodity prices will rebound – and baby boomers will retire. To ensure companies can take advantage of all the opportunities that may arise in the future, we must engage the next generation now – even in the downturn.
“The next generation identified key obstacles to young people considering the industry as a career option. They perceive that there is little education of school-leavers outside of north-east Scotland about the industry and that it is not marketed as offering jobs nationwide.
“They also believe that the industry’s current recruitment efforts focus on careers in engineering and that it would benefit from widening that effort to market the range of opportunities on offer.
“Importantly, the next generation identified that the industry is not addressing the strong perception that the sector is in decline and is therefore not worth considering as a career option.
“The task group proposes that by collaborating under a brand slogan, “You are part of it”, companies could help overcome these obstacles.
“Key messages conveyed would be that oil&gas:
Plays a central role in the UK’s energy and economy.
Is a nationwide industry.
Offers a huge range of careers.
Along with its technologies, will remain important in the UK for decades to come.
“These important points would be incorporated in four tools – a website, an awareness DVD, a presentation and a brochure. oilandgas4u.com already contains careers information and, through companies’ engagement with OPITO – The Oil & Gas Academy, can be developed into a comprehensive tool for those wishing to find out more about the opportunities on offer. The other three tools would all act as signposts to this information zone.
“So how will these tools be used collaboratively to increase the size of the talent pool?
“Firstly, to extend education of school-leavers to areas of the UK not so closely associated with the industry, an education pack containing a copy of the DVD and brochures would be sent to all secondary-school heads and careers advisers.
“It would also ask for the school to contact OPITO – The Oil & Gas Academy if it would like a visit from an industry Next Generation representative.
“Secondly, by integrating the brand with existing work in schools. Companies are already working with schools across the north-east of Scotland, promoting the industry through different activities, such as ‘ROV MATE, ‘STEM in the pipeline’ and offering 12-week placements for final-year students. Consolidating these efforts under the brand umbrella would add to their credibility.
“For this initiative to succeed, the industry must own it and senior management must endorse it. We are asking companies to:
Offer input to OPITO – The Oil & Gas Academy on the materials used for recruitment and education activities.
Endorse and incorporate the brand into their recruitment activities.
Allow young professionals the time and budget to visit schools across the UK.
“This will not only help to develop the young workforce already in the industry but, most importantly, it will increase the talent pool from which our industry can recruit in the future.”
Proposition two – a people’s charter for the offshore industry, by task group member Ryan McPherson – Industry Technology Facilitator (ITF):
“Currently, within the industry, we are hearing a great deal about cost-cutting, reduction of outgoings, greater efficiency savings and restructuring. Let me throw another phrase into the equation: the aggregation of marginal gains – trying to extract an additional 1% from everything you do.
“The effect of that 1% can be huge – at today’s oil prices, an extra 1% in field recovery rate for one field alone could be worth in excess of $2billion. So what could an additional 1% in productivity and retention be worth to you?
“A recent survey from the Chartered Institute of Personnel and Development (CIPD) found that the average cost of just one employee leaving is £9,000. As this figure represents industry as a whole, I would anticipate that in a high-cost industry like ours the cost would be considerably higher. I am here on behalf of the next generation to offer you a simple, cost-effective way to save your company potentially millions in lost revenue due to low productivity and poor staff retention by adopting a code of practice that revolves around five key points. We ask this in exchange for your time and commitment.
“The five points companies signing up to the code of practice would adhere to are: a realistic, relevant and tailored development and training plan; frequent, constructive, transparent performance reviews; effective mentoring; visible and approachable managers, and flexible working opportunities.
“The next generation believes that implementing these measures should improve skills retention and increase the productivity of the workforce.
“How would the code of practice work? An online survey relating to the company’s implementation of these measures would be sent to a range of employees at all levels. Anonymity would be essential to ensure an open and honest response.
“The code of practice will be easy to use and refrain from being too prescriptive, working for both large and small companies as they sign up and work towards accreditation. Ideally, we want to see accreditation akin to that of Corgi registration – hence questions will be asked if you are not displaying the logo.
“Companies signed up to the code of practice would get increased marketing on various websites, helping to reinforce their image as an employer of choice, and recognition of the consistent good performance of companies who are already carrying this out. Continuous assessment will ensure the long-term buy-in from organisations. Management of the scheme would, in turn, be worked between Oil & Gas UK and OPITO – The Oil & Gas Academy.
“In taking this forward we would seek approval to bring this to the attention of Oil & Gas UK’s Skills Forum and OPITO – The Oil & Gas Academy, who are an appropriate body of experts within the industry to develop and ultimately implement this practice. I cannot stress this point enough that you don’t have to be a huge company with a large HR or training department to develop the aforementioned points. In making this code of practice a success, your time and commitment at management level is far more important.”