Why Labor Shortage Remains A Major Challenge For The Oil And Gas Industry In 2022

Why Labor Shortage Remains A Major Challenge For The Oil And Gas Industry In 2022

Along with many industries in the United States, oil and gas companies are having a hard time hiring and keeping workers. These industries are hiring recruiters in an effort to get enough employees on the job to produce the energy that this country demands. There are a few reasons for this problem. Issues drawing employees away from these jobs and into other fields must be addressed.

Do hiring Recruiters Help With Employee Shortages?

Hiring an oil and gas recruiter denver can help employers find the key employees they need. Using a recruiter can save the HR department and other management personnel time and frustration. A recruiter’s whole focus and training are geared to finding and recruiting employees for the companies they work for. They know how to locate the correct people and how to appeal to them when filling job openings for their clients.

When competition for a limited number of applicants is so stringent, employers need all the help they can get.

What Drives This Labor Shortage?

A labor shortage aggravates supply chain problems, inflation, and more. Some factors to consider include the following.

  • Labor shortages in the oil and gas industries hurt their efforts to recover from the problems caused by COVID.
  • There are former employees of the oil and gas industry who have moved to the renewable energy companies or joined better paying and more stable fields like tech or manufacturing. They are also opting for better workplace safety.
  • There are actions that can work to mitigate these problems, such as increasing automation, developing a renewable business, and integrating a better environmental and government plan. And, horrors of horrors, increasing worker pay scales.
  • Energy demand is increasing due to several factors, making it even more important to attract more workers. The economy is booming and unemployment is low, which means workers are free to choose from a wider range of jobs and look for better compensation and safer working conditions.
  • Job security is a driving factor for job seekers, and the oil and gas industry has a poor job security record.
  • Younger workers are more in tune with the environment and human-caused climate change. Since fossil fuel companies share in the responsibility for pollution causing climate change, these workers might want to choose other fields that are more environmentally friendly.

How Can Oil and Gas Companies Attract More Workers?

Worker shortages are a problem nationwide, and the solutions are not working well so far. Companies must hire experienced recruiters to attract employees. But, they also must change their business models to keep those employees in a tight labor market. Some ideas might include:

  • Putting pressure on Congress to pass meaningful, practical immigration laws to let good workers into the country with work visas and have a chance to earn citizenship.
  • Increasing the worker compensation packages with higher wages, better job security, and safer work conditions.
  • Working harder at cleaning up their production models to be more environmentally friendly.
  • Offering on-the-job training opportunities for young workers, and making it a policy to retain older, experienced workers as long as possible.
  • Communicating with existing workers to find out what is important to them to remain in the industry.

With a lot of policy changes and research, the oil and gas industry can turn the employee shortage around.

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