The search for talent

The skills shortage in the industry is much discussed. O&G caught up with Arno Bracco Gartner from specialist recruitment experts Brunel Energy to discuss his perspective on meeting this challenge.

O&G. What is Brunel’s view on the current skill shortages. Is it a regional problem or a global one, and what can we do about it?
ABG. Brunel’s last internal survey completed in September 2006 once again confirmed the global aspect but with significant regional variations.

At Brunel we believe that the existence of these regional variations can be seen as opportunities. Investment of time and funds is clearly required to overcome associated challenges, such as cultural differences, familiarization with local legislation and standards, immigration and in some cases language adjustments.

From the challenges listed, the immigration aspect is always a concern as it is intangible and globally underdeveloped. The products of our industry form an essential part of any country’s development and the opportunities are of interest to all corporations involved. On that basis, wouldn’t there be grounds for discussions between the industry leaders and governments of countries rich in petroleum resources and/or human resources, to optimize their immigration regulations to the benefit of all?

Simultaneously, besides physically moving knowledge around the world, opportunities have to be explored that improve teamwork/performance regardless of time zones and frontiers.

O&G. Is the international aspect of the industry a blessing or a curse in the recruitment process?
ABG. There are two parts to this. The industry is becoming more global and while this is generally accepted, few people realize what kind of strain this puts on the people working in it. Since 2004 Brunel has annually reviewed demographic statistics of its contracted personnel. Initially we noted that 51 percent of our professionals were performing duties outside their country of origin. Through 2005 and 2006 we saw this further grow to 54 percent. This high level of mobility is largely related to the type of services we render so equally high percentages will not be found within major operating companies or EPC contractors. However, the trend does tell us to continuously open our mind to the world and constantly improve where possible our logistical support to individuals and families involved.

It is interesting to take a closer look at the motivation of industry specialists. A 2006 survey among Brunel contracted personnel showed that adventure opportunities, better remuneration, more interesting work, and the globalization of projects wer some of the reasons for operating outside their country of origin. Equally, reasons for not working internationally were given as a lack of opportunity, immigration related problems, security worries, and family issues such as the other partner working, or children at school.

From this one can conclude that several deciding factors are elements in such a decision. One can also highlight that not all points of view are factual/static and that improved communication/attention can positively influence assumptions and perceptions.

O&G. For the next five years the gap between new graduates and experts leaving the industry is estimated at almost 500,000. What are your thoughts on how to bridge this gap?
ABG. The situation stated in the question is unfortunately both factual and irreversible. In 2006 The CEO of Schlumberger, Andrew Gould, described it like this: ‘In my opinion the only serious constraint to a smooth, steady increase in new supply is in the availability of people with proper experience and sufficient technical education. Unfortunately, a shortage exists at almost all levels of our industry. This is the result of the under-investment in new talent, and the discouragement of existing talent, over the last twenty years.’

A possible solution if properly applied lays in the vulnerability of social security systems in countries with a traditionally high oil and gas participation. In several parts of the world governments are discussing plans to increase the retirement age, which aids both skill shortages and the dependence on the social security reserves.

We believe the industry can benefit even more from this trend if annuitants are not simply asked to extend covering their current liabilities but simultaneously are integrated in a parallel project.

When looking at the industry’s underlying basic technology, except perhaps for geosciences, a lot of drilling, sub-sea, pipeline and facilities technology is not significantly different from either process technology, power, chemistry, F&B, machinery production and other heavy industries. Cross-training of these talents with one to two years classroom training is too expensive. However when classroom training is replaced by mentoring via an annuitant, productivity even in the early stages, would soon reach commercial levels and full independence (responsibility) can be obtained on a track-record basis rather than by a written exam. Brunel is open to discuss our added value in the various ways companies can implement this approach.

O&G. With record levels of activity and a restricted global talent pool, the best talent can pick and choose where they work. How can companies ensure they attract and (more importantly) retain the right calibre of both staff and contractor personnel?
ABG. Tailored ‘total reward’ packages will invariably attract high calibre recruits (staff or contractor) – holding onto them is the real challenge.
To do this successfully in the contractor environment, some fundamental assumptions about the nature of contractor personnel have to be challenged. For example, an accepted opinion is that staff and contractor personnel are looking for different ‘returns’ from the company they work for – contractors often being criticized for simply ‘chasing money’.

This is a gross over-generalisation and concentrating solely on monetary rewards is the reason many companies fail to retain their best contractor personnel – in short, there will always be another company willing to pay more.

Highly skilled knowledge workers are usually motivated by more than money and thus, in order to differentiate themselves, successful companies must identify and nurture their key contractor resources by being able to offer:

• Flexible working arrangements, reasonable working hours.
• Highly (technically) challenging work.
• Longer term career development and stability.
• Positions of real authority and decision-making autonomy.

When trying to retain the best contractors every effort must be made to dismantle any ‘them and us’ mentality – emphasising the differences between staff and contractors can be extremely destructive.
This does not automatically mean offering contractors the full ‘staff package’, however they must be engaged with the company to the same degree as staff personnel.

O&G. Recruitment companies are dependant on personnel transitions to secure long-term sustainable growth. What can the industry under these circumstances expect from this type of service specialists, to secure long-term sustainable growth of the industry?
ABG. Looking at our industry from a distance you can see an increasing level of outsourcing in all aspects of the business in exploration, drilling and construction. There is also an increase in outsourcing related to professional resources – in time when this sector of the industry has made a step towards increased professionalism.

At the same time, it appears that the shortage of professional resources has presented itself before the shortage in hydrocarbon resources. Therefore, we trust that the question above does not imply that the sector is complacent about the problem. On the contrary; this trend inevitably requires the leading service companies to further professionalize and anticipate during a trend that potentially limits long-term sustainable growth.

With 32 offices in 28 countries and a contracted volume over 3000 professionals, Brunel Energy is recognized as one of these leading service companies for both recruitment and contracting services. Therefore we do not step away from our responsibilities. Together with the implementation of a sound global communication system, the investment in an office network second to none, enables us to fully understand local legislation and its applications as well as the quality of the local resources pools.

We at Brunel believe that there is significant added value in the role of third party facilitator; specialized ground breaking recruitment; catalyst in career development and safe haven for employees/employers in new frontiers.

Arno Bracco Gartner is General Manager of Brunel Energy. He joined Brunel in 1996 as a Petroleum Engineer, and has held a variety of management positions in technical and commercial operations in several countries, including Regional Account Management for Brunel South East Asia in Singapore and General Management for Brunel Energy Europe in the Netherlands. He assumed his current position earlier this year. Bracco Gartner holds a Master of Science degree in Petroleum Engineering from Delft University of Technology, the Netherlands.