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May 10, 2016
Evolution or revolution: The new era of oil and gas HR
By: Susy Tamminga

HR organizations that can adapt and tap into the energy industry’s future can gain agility, resilience, and the ultimate business objective—competitive advantage.

Today’s HR organization, while it has progressed over time, remains firmly grounded in the industrial-age. According to Accenture research1, 75 percent of HR executives interviewed say that it is major challenge to ensure their operating models provide a competitive advantage, yet, only 22 percent say their organizations are able to shift resources very easily to help address emerging or critical needs.

To compete in this highly volatile economy, oil and gas companies must evolve traditional HR models to become more agile, digitally-enabled organizations that are poised to help drive growth and business value. This requires:

  • A fundamental shift in mindset for how talent is managed to include the new extended workforce of contingent, outsourced and nontraditional labor and vendors. Energy leaders of the future should proactively manage their full end-to-end talent supply chain to have the ability to navigate ongoing disruptions.

  • A strong focus on talent analytics and insight, e.g. integrated talent spend, and the skills and decision authority to action labor spend improvements opportunities.

  • HR to focus more heavily on helping improve workforce performance across the integrated workforce through mobility, social media, and application of learnings from new analytics capabilities.

  • HR professionals to have a focus on business outcomes, deep analytical skills, connection to digital and emerging talent management systems and tools, and the ability to span breadth and depth of HR and business function acumen.

According to IDC’s FutureScape: Worldwide Oil and Gas 2016 Predictions2, By 2017, 40% of oil and gas companies globally will have made progress towards digital, collaboration, social, and cognitive capabilities to improve integrated talent management.

Empowering the next evolution of the HR organization is quickly becoming a top priority for those that service and partner with energy leaders. Strategic partners, vendors, outsourcing partners, and enabling technologies are beginning to invest heavily in HR solutions and services to help support integrated talent insight and management. SAP’s acquisition of cloud-based vendor management system firm Fieldglass, is one clear sign that technology vendors are moving in this direction.

Today’s HR leader has more access to cost effective and fit for purpose talent management services, tools, and technology than ever before. Leaders who can capitalize on this, and who are able to quickly shift away from traditional mindsets, will forge a new path to shaping the operating model for tomorrow’s leading businesses.

1 Accenture Global Volatility and Agility Survey, 2014.
2IDC FutureScape: Worldwide Oil and Gas 2016 Predictions, DOC# 259787”, Nov 2015.

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