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Competency Development – a paradigm shift | Alastair Shakeshaft, Director, BusinessPort Ltd
1. Technical Session # 2A
Topic : Competency development – a paradigm shift
Competency Development
– a paradigm shift
Alastair Shakeshaft
Director, BusinessPort Ltd
2. Technical Session # 2A
Topic : Competency development – a paradigm shift
Introduction
Demand for oil continues to increase, especially from developing nations. Yet this demand is set against a backdrop of
50% of the current skilled workforce due to leave the industry over the next ten years. The absence of sufficiently skilled
professionals will introduce talent as a new currency in the industry.
3. Technical Session # 2A
Topic : Competency development – a paradigm shift
Indicative size of the Problem
“The UK industry will need to recruit and train 125,000 new staff over the next 10 years”
Oil & Gas UK Survey
“the US will see 22,000 experienced geoscientists and engineers retire by 2015”
Schlumberger
“half of the (Indian) sector’s hands-on technical workforce will need to be replaced in the next decade”
Booz & Co
“US will create 15% more roles in the Oil & Gas sector within 20 years”
Wood McKenzie
4. Technical Session # 2A
Topic : Competency development – a paradigm shift
Migration of Talent
Majors
Large
Corporations
SMEs
LeaversNew Entrants
• Academia
• Military
• Industry
• Retiring
• Industry
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Topic : Competency development – a paradigm shift
Competency in the Oil & Gas Sector
Competence is more than just training – it’s about each of us demonstrating that we have the knowledge, skills
and behaviour to do our jobs consistently, efficiently and safely.
Courtesy of Atlas Knowledge
6. Technical Session # 2A
Topic : Competency development – a paradigm shift
Generation Gap – “teaching new dogs old tricks?”
The next generation of skilled workers don’t work, learn or behave as our predecessors did. We need to
recognise this NOW – building strategies that engage with them. To fail, will prolong the Great Crew Change.
7. Technical Session # 2A
Topic : Competency development – a paradigm shift
Are we ready to embrace Generation Y?
8. Technical Session # 2A
Topic : Competency development – a paradigm shift
X Generation
• Independent, resourceful, self-sufficient
• In workplace, they value freedom and responsibility
• Dislike micro-managing, structured hours and have a distain for authority
• Technologically adept, but less committed to same employer
• Gen X is ambitious, eager to learn but on their own terms
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Topic : Competency development – a paradigm shift
Y Generation
• Continually connected
• Influenced by Peers
• Seek immediate recognition
• Skim text
• Easily Board
• Sceptical of Authority
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Topic : Competency development – a paradigm shift
Adopting Technology
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Topic : Competency development – a paradigm shift
A case in point - Macondo
A federal government investigation revealed that in addition to systemic cost and safety
issues, the accident’s severity was largely attributable to human error.
12. Technical Session # 2A
Topic : Competency development – a paradigm shift
Imperatives to survive the Great Crew Change
Develop a Compelling Employment Value Proposition
13. Technical Session # 2A
Topic : Competency development – a paradigm shift
Imperatives to survive the Great Crew Change
Develop a Compelling Employment Value Proposition
Build your Talent Pipeline
14. Technical Session # 2A
Topic : Competency development – a paradigm shift
Imperatives to survive the Great Crew Change
Develop a Compelling Employment Value Proposition
Build your Talent Pipeline
Constantly Innovate and Improve Employee Retention
Notas do Editor
According to politicians and industry leaders in the developed and developing nations, there will be an increasing demand in consumption of hydrocarbon based products leading to a continued expansion of the Oil & Gas Sector. As such, we will be challenged to make smart and ever smarter decisions to keep pace with this demand. Whereas much publicity goes on emerging technologies to exploit existing and new fields, I believe that a critical challenge facing our industry today is one that is not new, is one that has been talked about for the last 20 years and one that in our recent past has shown the consequences of paying lip service to the people who work in our industry -The Great Crew Change. But the challenge of losing so many experienced professionals, estimated to be as much as 50% of the entire workforce over the next few years will undermine our efficiency, effectiveness and above all our safety. The Great Crew Change is here, but what are we doing about it?
We can trace the emergence of the Great Crew Change back to the 1980s when roughly 25% of engineers and geologists left the industry. At the time the price of oil plunged to $10 a barrel, resulting in massive layoffs throughout the industry and ultimately in one of the largest downsizings of highly capitalised, labour intensive industries ever known. As a consequence, we started to see the significant decrease in students entering degree course directly related to the petroleum sector. The next generation of industry leaders and pioneers should have been developed during this time. This period created this perfect storm that has resulted in the talent gap we’re seeing today and will continue to see for decades to come. Rolling this forward to present day and to give some perspective on this:“The UK industry will need to recruit and train 125,000 new staff over the next 10 years” – Oil & Gas UK Survey, or equivalent to the entire working population of the city of Aberdeen“According to a Schlumberger study, the US will see 22,000 experienced geoscientists and engineers will retire by 2015“half of the (Indian) sector’s hands-on technical workforce will need to be replaced in the next decade” Booz & Co“Research by Wood Mckenzie suggests that the US will create 15% more roles within 20 years”
The Global Market for Oil & Gas TalentBy way of an example to emphasise the point; if I take the company I work for, BusinessPort employs approximately 50 staff and in the last 18 months have lost staff to the likes of Petrofac and Chevron. To a small company, this has a monumental impact on our business. The cost of recruitment, training and the short and medium term impact on service delivery is difficult to overcome. The irony is that the very same companies demand we reduce our costs and improve delivery.Now let’s expand this across the sector. There will be a natural gravitation of the best talent towards the super majors. They can and will pay the most, provide the most challenging roles, best career training and development. So, against a backdrop of an expanding sector and a void in available talent, where will these staff come from? The Major corporations will continue to search for talent from their local and increasingly, international market. It is interesting that many of the NOCs from the emerging nations are not only acquiring assets but also acquiring companies. Are they doing this to as much to gain access to latest technology, latest thinking and above all, an assured supply of talent?
This session will not talk about the design of Competency Frameworks; this has already been touched upon. However, for the purpose of this presentation, I will use the definition of competence is more than just training – it’s about each of us demonstrating that we have the knowledge, skills and behaviour to do our jobs safely. My journey today is about how the departure of many industry veterans will give way to a new generation; a generation who think and act differently. And thus how we engage with them is as important as what we tell them.
A Lesson from our near PastOn the 20th April 2010, the Deepwater Horizon disaster, or Macondo as its usually referred to saw 11 people lose their life and the release of 4.9 million barrels of oil into the Gulf of Mexico; the largest oil spill in history. A government investigation revealed that in addition to systemic cost and safety issues, the accident’s severity was largely attributable to human error. The lack of adequately skilled and experienced staff was a contributory factor to the disaster. A reorganisation of staff shortly before the 20th April had led to none of the crew being in the job for more than six months. Just six months! In real terms, it takes decades to build the necessary skills to run complex assets. So imagine this, against a backdrop of a significant loss of experienced staff and an increasing E&P demand, are we in a position that a Macondo incident is more likely or less likely to happen? I’ll leave you to think about that for a moment?
Does your organisation have a compelling answer to the question, “Why should I work here?” The popular “you should be grateful to have a job in this economy” response is not only banal, it will never work with your best people. Talented employees with in-demand skillsets will almost always have a choice about where they work. If they don’t have a reason to work for you, you’re in trouble.Employment Value Propositions (EVPs) can include elements related to rewards and compensation, career development, challenging work, people, or organizational prestige. EVPs need not be complicated, but they must be honest and genuinely reflective of what working for your organization is really like.Executives can leverage their organisation’s EVP to attract and retain top talent through marketing, Best Companies to Work For lists, job fairs, word of mouth, and university recruiting. In general, organisations with strong EVPs are more likely to attract passive candidates not currently searching for a job. And according to the Corporate Leadership Council, companies with strong EVPs see 30-40% more employee commitment versus those with weak EVPs.
Just as oil and gas companies maintain capital equipment to ensure performance, they must invest in their people. Research on this is clear: talent practices like leadership development, career development, training, mentoring and succession planning increase shareholder returns and help organisations compete for the future. How can executives ensure their workforce possesses the right skills to meet current and future business needs? At a minimum, I recommend an annual talent review to identify your company’s critical positions and top talent.Identifying critical positions: All jobs aren’t created equal. Executives must prioritise time and resources to grow and maintain talent in their most important positions. Critical positions typically possess two characteristics: they play a disproportionately significant role in business success and are difficult to hire/replace. For example, most companies employ a staff with specialized, scarce skills as experts in their Environmental Health and Safety group. Losing these employees might have a more direct effect on the business than losing an employee somewhere else.Grow top talent: Knowing critical positions isn’t enough. You must also identify your best people and create meaningful strategies to ensure their development. Carefully and thoroughly evaluate talent in critical roles, including your senior leadership team (typically SVP/VP and above). With a particular focus on “talent sharing” across operating units, identify (at a minimum) one to two high-potential successors for each critical position. Make sure that you identify the skills needed for these critical positions and create a proactive plan to build those skills in successors. Meaningful development plans require focus (1-2 development activities at a time), support (a supervisor who helps drive development) and resources (internal or external development and learning programs).
It is all-too-common in this industry to hear tales of promising hires who were lured away by competitors. This happens most with talented employees, and often leaves managers feeling helpless. What should executives do? Companies will reap huge benefits from “back to basics” practices like appreciation and recognition, competitive compensation, career development, and flexibility. There are examples of Energy companies that provide 100% of employee health insurance; another offers on-site day care. Summary – a Cautionary TaleThe strategies organisations use to attract, develop and retain their talent will be a critical to facilitating industry’s continued growth. The Deepwater Horizon accident is a cautionary tale about skills and talent practices needed in all oil and gas companies. Don’t ignore these imperatives. Don’t let this mistake happen to you.So what are we doing to capture this lost knowledge? How do we mentor the next generation when knowledge on its own is not enough? And how do we engage with the Y Generation, the new people emerging in our industry who are technically savvy, and are great consumers of sound bites of information using visual metaphors delivered via mobile and undoubtedly wearable technology all in a collaborative way? The Great Crew Change is not solely about replacing people and replacing what they know. It’s about the industry reinventing the way it engages with the workforce. Hopefully the above information is not earth shattering. However, there is one secret to employee retention that often makes leaders wide-eyed: if you are worried about losing your key employees….talk to them! I suggest regular “stay interviews” with key employees—ideally, monthly, quarterly at minimum. Begin the conversation with a genuine appreciation for the employee’s contribution. Then dive in. Some sample questions: What are the frustrations you are currently facing? How can I help manage or remove them? Is there anything you need to be effective and happy in your role? What would help you contribute to your fullest?