The Talent Crisis in

Upstream Oil & Gas

Strategies to Attract and Engage Generation Y

A Deloitte Research Study

Table of Contents
Executive Summary ...................................................................... 1
The Talent Conundrum ................................................................. 2
Targeting Generation Y ................................................................ 4
Communicating to Generation Y ................................................. 7
Conclusions .................................................................................. 10

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 Executive Summary
Over the last few decades, the U.S. upstream oil and gas industry has shed an astounding 1.1
million jobs. Whether one believes these job losses are the result of normally occurring
competition, attrition, or restructuring, one theme permeates the current discussion around
human capital: how to develop, deploy, and connect employees through the industry’s boom and
bust cycles? This issue has become particularly critical of late, given the sector’s aging workforce,
combined with a diminishing pipeline of new and experienced talent. To guard against corporate
brain drain, companies need to formulate effective strategies to attract and engage the industry’s
newest resource: Generation Y.

It is estimated that Generation Y – also called Gen-Yers –
currently makes up only about 10 percent of the U.S.
workforce. Nevertheless, the Y generation will soon be called
upon to fill the employment gap brought about by the
retirement of veterans and baby-boomers. Generation Y is a
group of the population that currently ranges in age from
recent college graduates to middle-school students (birth
years 1982-1993). As a workforce generation, they value
flexibility, balance, respect, feedback, as well as access to
people, tools, and technologies. They balance idealism and
pragmatism and can be critical of their environments and
opportunities. More specifically, Gen-Yers tend to look for
long-term career development, variety of experiences, a sense
of purpose and meaning in their work, open social networks,
and work/life balance.
This report focuses on strategies for replenishing the white-
collar workforce within the upstream oil and gas sector.
Specifically, it examines the values of Gen-Yers, and suggests
corporate tactics to engage and sustain the interests of these
young people. In doing so, it builds upon Deloitte’s proprietary
Develop-Deploy-Connect Talent Management framework (see
Exhibit 3. What is the Develop-Deploy-Connect Model?).
Generally, employers can ‘develop’ their workers by providing
them with active learning opportunities, ‘deploy’ them by
designing effective organizational environments, and
‘connect’ them by creating infrastructure to foster
collaboration. The report also presents targeted approaches
for communicating corporate philosophies through branding,
roles, and rewards programs. While individual tactics may
provide quick fixes, to be enduring it is critical that companies
incorporate the underlying values into their organizational
culture.

1 Deloitte Research – The Talent Crisis in Upstream Oil & Gas

The Talent Conundrum
The looming labor shortage of oil and gas workers is the
result of a slow and evolving buildup of many factors that will
hinder future corporate recruitment efforts. Some of the most
concerning impediments follow:
Industry Consolidation
Since the early 1980s, the industry has witnessed a wave of
mergers and acquisitions that have resulted in not only a new
group of major oil companies, but also job layoffs. The
consolidation began with DuPont’s acquisition of Conoco
(1981) and was quickly followed by Occidental’s purchase of
Cities Service (1982). Similar size transactions took place a few
years later, in 1984, with Mobil’s acquisition of Superior Oil,
Texaco’s purchase of Getty, and California Standard’s (now
Chevron) acquisition of Gulf.
The oil industry mega-mergers starting in the 1990s produced
new categories of industry players, namely ‘supermajors’ and
independent oil companies, which further reduced the
employment pool. BP’s acquisition of Amoco (1998) and
ARCO (2000), together with Exxon’s purchase of Mobil
(1999), eliminated almost 24,000 jobs. The driving rationale
behind the mega-mergers was to position the oil supermajors
to compete effectively with the National Oil Companies
(NOCs). The deals also enabled the new majors to acquire
enough asset size and political clout to explore for and
produce oil from difficult regions around the globe.
Subsequent mergers involving Chevron and Texaco (2001) and
Conoco and Phillips Petroleum (2002) completed the
consolidation wave. All told, the industry lost approximately
one million jobs.
Negative Public Perception
Ever since John D. Rockefeller began operating Standard Oil in
the 1880s, the industry has been plagued by negative
publicity surrounding damage to the environment, anti-trust
practices, and unproven allegations of gasoline price gouging.
In particular, more recent events such as the Exxon Valdez oil
spill (1989, Alaska) and suspected price manipulation in the
aftermath of hurricanes Katrina and Rita (2005), have likely
discouraged the Gen-Y pipeline, which tends to prioritize
environmental-consciousness, ethics, and long-term viability.
Furthermore, this new workforce has witnessed the layoffs of
their parents, and may view the sector as low-tech and
outdated. For many Gen-Yers, employment in the oil and gas
industry, in its current state, is likely not acceptable in their
social networks.
Industry Cyclicality
The oil industry is one of the few market sectors whose
fortunes are tied to the prices of a few commodities, namely
petroleum and natural gas. As the laws of oil economics
typically dictate, when prices rise, firms are more willing to
invest in new and potentially risky exploration, drilling, and
production activities and, as a result, increase hiring of the
appropriate workers. Conversely, when supply outpaces
demand, prices fall and layoffs follow. Compounding such
cyclicality is the fact that recent improvements in technology
have enabled firms to increase productivity with fewer
workers.
Aging Workforce
According to a 2004 survey conducted by the American
Petroleum Institute (API), the average age in the oil and gas
industry is 49 and is among the oldest of any industry. This
trend is further illustrated in Exhibit 1, which contrasts the
workforce age distribution of the Society of Petroleum
Engineers (used as a proxy for the age distribution of white-
collar technical workers within an oil and gas company) with
that of other firms that employ technical professionals, namely
high-tech companies, conglomerates, and consultancies.
Deloitte Research – The Talent Crisis in Upstream Oil & Gas 2
 The API’s 2004 survey also indicates that by 2009, there will
be a 38 percent shortage of engineers and geoscientists and a
28 percent shortage of instrumentation and electrical workers.
In a similar vein, the National Petroleum Council projects a
personnel shortage of approximately 40 percent as a result of
workforce retirements over the next decade.
programs in 2006. This is more than a 90 percent drop since
1982. Reasons for the decline in enrollment in these programs
include perceptions that the industry offers: 1) short-term jobs
versus careers; 2) few attractive opportunities at junior levels;
3) tenure-based advancement versus meritocracy; and 4) little
work/life balance.

Diminishing Enrollment in
Petroleum Engineering and
Geosciences Programs
One of the more important predictors regarding the future
supply of potential employees in oil and gas are the number
of students obtaining university degrees in petroleum
engineering and geo-sciences. As exhibit 2 illustrates, fewer
than 1,000 U.S. students are projected to graduate from such
The time is now for those in the upstream oil and gas industry
to take proactive steps to ensure that their talent pipelines are
replenished and vital institutional knowledge is not lost. In
order to avert a damaging workforce shortage, company
leaders need to understand the unique values Gen-Y holds,
and then formulate and execute strategies to recruit, develop,
and engage this new resource (this potential improvement is
illustrated in Exhibit 2, after 2012). Moreover, by incorporating
such tactics into their organizational fabrics, such leaders
should be better able to connect all the workforce
generations.

Exhibit 1. Workforce Age Distribution

Oil and Gas Distribution Typical Technology-Focused Company
65+ 65+
60-64 60-64
55-69 55-69
50-54 50-54
45-49 45-49
40-44 40-44
35-39 35-39
30-34 30-34
25-29 25-29
20-24 20-24
0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25%
Source: Society of Petroleum Engineers, 2003

Exhibit 2. Oil & Gas Workforce Projections

U.S. Petroleum Engineering Workforce
10

Workforce in Place as of 2000

Cumulative New Graduates

6
1,000 Projected Workforce
Employees
4

0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Source: PetroStrategies Inc.

3 Deloitte Research – The Talent Crisis in Upstream Oil & Gas

Targeting Generation Y
So how can upstream oil and gas firms best avert labor
shortage? By attracting and engaging the new workforce:
Generation Y.
According to a 2004 study by Deloitte and the Institute of the
Future, Generation Y wants and needs can be very different
from that of existing workforce generations (Veterans, Baby
Boomers, and Generation X). Drawing from the study’s
findings, the Gen-Y needs most important to upstream oil and
gas leaders looking to replenish their talent pipeline may
include:
• Long-term career development and multiple experiences
within a single organization
• Sense of purpose and meaning in the work
• Availability and access to mentors and other company
champions
• Work/life flexibility
• Tech-savvy work environment (e.g., online problem solving
and learning tools)
• Open social networks that embrace open/honest
communication
The tactics presented vary in scope and complexity. Some,
such as online recruiting tools and formal training
opportunities, may take less time to implement, but address
only specific workplace needs. In fact, several Fortune 500 oil
and gas firms have already developed proprietary online
recruiting systems, enabling existing talent to be more easily
matched with current openings. Since they are internal, these
‘resumes’ – one firm even calls them ‘Career Networking
Profiles’ – can often be more creative and comprehensive,
including such information as career goals, family details, and
hobbies. Upstream oil and gas companies should take a two-
pronged approach: executing these simpler strategies at first,
while at the same time developing and deploying longer-term
shifts in organizational mindset. Specifically, leaders should
strive to incorporate the following fundamental workplace
elements, which permeate throughout the aforementioned
Gen-Y values:

Exhibit 4 (How to Attract and Engage Generation Y) discusses

the implications such workplace values can have on employers
in the industry, as well as the strategies needed to develop,
deploy, and connect these new entrants. The model builds
upon Deloitte’s proprietary Develop-Deploy-Connect Talent
Management framework (see Exhibit 3. What is the Develop-
Deploy-Connect Model?). In general terms, employers can
‘develop’ their workers by providing them with opportunities
to learn through experience, ‘deploy’ them by designing
effective organizational roles and environments, and ‘connect’
them by creating seamless networking infrastructures.

Deloitte Research – The Talent Crisis in Upstream Oil & Gas 4

 Fundamental Workplace Element Gen-Y Needs/Wants Included in This Category
Flexibility • long-term career development • tech-savvy work environment
• access to mentors and leaders • open social networks
• work/life flexibility
Balance • long-term career development • access to mentors and leaders
• sense of purpose and meaning in work • work/life flexibility
Respect • long-term career development • work/life flexibility
• sense of purpose and meaning in work • open social networks
Access to people and knowledge • access to mentors and leaders • open social networks
• tech-savvy work environment

Access to technology • work/life flexibility • open social networks

• tech-savvy work environment
Opportunities for constant evaluation • sense of purpose and meaning in work • open social networks
• access to mentors and leaders

While fundamental organizational change may seem
daunting, it is encouraging to note that many global energy
companies have begun to implement enduring strategies. For
example, some large organizations have formed partnerships
with universities that offer petroleum engineering and geo-
science degrees in an effort to encourage the pipeline at its
earliest stages of development. These relationships can often
involve scholarships, mentoring opportunities, joint program
design, and corporate donations of technology and other
equipment. As upstream oil and gas leaders forge bonds
across incoming channels for talent and existing workforce
generations, they will need to develop and implement their
tactics consistently. Further, they will need to communicate
their values through effective organizational branding, roles,
and rewards programs.

Exhibit 3. What is the Develop-Deploy-Connect Model?

The Develop-Deploy-Connect model should be at the core of an
organization’s talent strategy. By focusing on these three
elements, organizations can generate capability, commitment, Develop
and alignment in key workforce segments, which in turn
improve business performance. When this happens, the
attraction and retention of skilled talent largely take care of
themselves.
By “Develop,” we mean providing the real-life learning Capability Commitment
employees need to master a job. We don’t mean just traditional
classroom or online education. As importantly, we mean the
“trial-by-fire” experiences that stretch their capabilities and the
lessons they learn from peers, mentors, and others.
Performance
By “Deploy,” we mean working with key individuals to (a)
identify their deep-rooted skills, interests, and knowledge, (b)
find their best fit in the organization, and (c) craft the job
Deploy Connect
design and conditions that help them to perform. Alignment
By “Connect,” we mean providing critical employees with the
tools and guidance they need to (a) build networks that
enhance individual and organizational performance, and (b)
improve the quality of their interactions with others.

Source: Deloitte Research. For more details on this model, please refer to the 2004 Deloitte Research Study: “It’s 2008: Do You Know Where Your Talent Is?”

5 Deloitte Research – The Talent Crisis in Upstream Oil & Gas

Exhibit 4. How to Attract and Engage Generation Y
Generation Y Implications for Employers
Needs/Wants
Long-term career develop- • Create personal development plans (PDPs)
ment and multiple experi- • Align PDPs with organizational roles and
ences within a single goals
organization • Chart clear and transparent career paths
• Provide transparency around available
positions
• Invest in training and developing the
workforce
• Foster coaching and mentorship
• Enable career mobility to allow individuals
multiple experiences
• Cultivate strong social networks
Sense of purpose and • Enable individuals to find what is meaning-
meaning in the work ful to them
• Create an organization that allows
individuals to pursue these higher purpose
goals in an effective and productive way
• Define and communicate visions around
which people can rally
• Cultivate an environment of hope and
possibility
• Help people focus on their strengths
Availability and access to • Offer formal and informal mentoring
mentors and other approaches that are aligned with strategic
company champions aims
• Engage Y-ers during their education and
early in their careers
Work/life flexibility • Encourage Y-ers’ input
• Offer work arrangements that align
individual and organizational needs in
flexible ways
Tech-savvy work • Employ online recruiting tools
environment • Offer multiple communication platform
options
• Offer gaming simulations as a learning
tool
Open social networks that • Balance hierarchy and organizational agility
embrace open/honest • Communicate corporate goals clearly and
communication transparently (i.e., no corporate-speak)
• Institute channels for employee feedback
on corporate goals
• Design office space in a flexible way that
reflects how Y-ers work
• Develop social infrastructure to share ideas
• Reduce geographic barriers; develop
channels to communicate globally in a
seamless way
Develop-Deploy-Connect Talent
Management Framework
• Enable Gen-Y entrants to experiment and take risks as
they figure out their niche within the organization
(Develop).
• Tailor work “contracts” in ways that fulfill individuals’
unique needs while still affording them the flexibility
that they need to do their jobs well (Deploy)
• Enable Gen-Y to foster the networks that they need to
succeed and guide them on cultivating healthy/
productive relationships within those networks
(Connect)
• Ensure employees have the capabilities to fulfill their
responsibilities (Develop) by:
– Aligning organization roles and skills, while still
allowing for flexibility
– Providing access to the necessary tools and training
– Creating information/social networks to facilitate
knowledge transfer
• Align organization roles with employee interests/
passions (Deploy)
• Create feedback mechanisms that link employee
contributions to larger organizational goals (Connect)
• Create comprehensive mentoring programs that allow
Gen-Y entrants to:
– Learn technical and personal/relational capabilities
(Develop)
– Learn about their strengths and about new opportu-
nities (Deploy). Such an approach should help guide
employees toward their ideal career paths
– Foster commitment to the organization and their
roles within it (Connect)
• Design flexible balanced learning programs that
stretch employee capabilities (Develop)
• Create mechanisms to align organization roles with
employee needs and expectations in a productive way
(Deploy)
• Facilitate flexible work arrangements that accommo-
date employees’ personal circumstances and working
styles (Connect)
• Leverage the technology with which Gen-Y is so
comfortable by:
– Providing learning through gaming scenarios/
solutions, online interaction, etc. (Develop)
– Utilizing internal/external online recruiting (e.g.,
electronic job boards that provide transparency
around available opportunities) (Deploy)
– Leveraging electronic interaction technologies that
facilitate broad and rich conversations (Connect)
• Create social infrastructures that enable employees to
develop strategic and intentional networks. Such
structures should allow Gen-Yers the interaction to:
– Learn about their organizational roles/responsibili-
ties (Develop)
– Learn about new job/project opportunities (Deploy)
– Foster relationships to help them succeed (Connect)
Deloitte Research – The Talent Crisis in Upstream Oil & Gas 6
 Communicating to Generation Y
In order to derive maximum value from the aforementioned
strategies, upstream oil and gas corporations should re-
examine their mechanisms for communication with Gen-Y,
namely their:
• Branding and Identity
• Organization Roles
• Rewards Programs
To that end, such organizations will need to design unique
approaches for each of these elements, or adopt existing
successful practices from leaders within the upstream sector
and other areas of the industry. This section suggests specific
tactics for corporate branding, roles, and programs that
communicate the company’s commitment to each of the Gen-
Y workplace needs identified previously (long-term career
development, sense of purpose/meaning in work, mentors,
work/life flexibility, tech-savvy work environment, open social
networks), as well as to the values that underlie them:
flexibility, balance, respect, feedback, and access to people,
tools, and technologies. (See Exhibit 5. Strategies for
Communicating to Gen-Y). Underlying each mechanism is
Deloitte’s Develop-Deploy-Connect philosophy for talent
management.
7 Deloitte Research – The Talent Crisis in Upstream Oil & Gas
Branding and Identity
Developing and communicating a cohesive, consistent positive
image is critical to attracting and engaging new talent.
Industry leaders in upstream oil and gas, in particular, must
work to counter negative stereotypes by demonstrating
publicly that they believe in what their companies do.
Branding provides such opportunity. The key to developing
successful identity programs is to be candid about the
negative issues of the past, communicate a compelling future,
and provide employees across workforce generations and
functions a real role in creating it. In doing so, managements
can assemble cross-divisional teams that span all levels of
hierarchy, with a mission to evaluate, improve, and market
corporate branding and identity.
Several Fortune 500 oil and gas firms have already
implemented successful branding programs to enhance their
image across the Gen-Y age spectrum. For students, these
include university scholarship and mentoring programs,
partnerships with community/technical colleges to expand
courses in such areas as instrumentation and operations, as
well as support for various middle/high school math and
science programs. In fact, for some companies, internship
programs have served as a solid pipeline for new talent. More
broadly, some large oil and gas firms have instituted programs
to reduce environmental damage from emissions and worked
with their governments to design public relations campaigns
that emphasize the industry’s importance. By taking a
proactive approach to improving industry branding, and the
negative forces that have served to damage it, such
companies gain strategic advantage with this new workforce.
Moreover, such advantage extends to other workforce
generations, given the strong influence Gen-Yers have over
their parents.
How do these strategies target Gen-Yers?
By empowering multigenerational teams to develop and
communicate corporate brand and identity, companies
provide Gen-Yers the opportunity to expand their social
networks, in particular their exposure to senior leadership.
Through this interaction, Gen-Yers can develop meaningful
mentoring relationships. Moreover, by involving Gen-Y in such
efforts, management can provide these new workforce
entrants with a sense of purpose in their work and roles in the
larger organization. They can also ensure that their corporate
images embody those values important to this generation.
This is critical given the urgent need to encourage and hone
the younger Gen-Y pipeline.
Organizational Roles
Companies that balance hierarchy with flexibility will likely be
better able to attract and engage employees at all levels.
Upstream oil and gas managers can take several approaches
to realize such agility, including:
• forming cross-divisional/generational teams to collaborate
on critical large-scale projects;
• establishing leadership development rotational programs;
and
• creating developmental projects and plans for newer
employees.
For example, one leading oil and gas firm implemented an
“Executive Business Analyst” rotational program which
enabled the recruitment of experienced MBA students. This
mechanism helped the firm replenish its management pipeline
as its senior ranks retired. By institutionalizing flexibility in
employee roles and reporting structures, management can
connect the broader workforce, thereby developing and
deploying institutional knowledge.
How do these strategies target Gen-Yers?
These approaches for designing organizational roles will
provide Gen-Yers with the infrastructure needed to network
effectively and develop their long-term careers in a flexible
way. Furthermore, by setting ambitious goals for the cross-
divisional/generational teams, Gen-Yers will likely develop a
deeper sense of purpose and meaning in their work.
Rewards Programs
Through innovative rewards programs, upstream oil and gas
companies can further build creativity and flexibility into their
work environments, thereby attracting and motivating their
employees. Examples of such initiatives include:
• learning and development opportunities;
• supplementary rewards programs, such as annual incentive
plans, deferred compensation, profit-sharing, stock options,
recruiting incentives, etc.;
• customizable healthcare benefits programs; and
• flexible work structures, such as co-location, part-time
schedules, and virtual work alternatives.
It is instructive to note that one leading upstream oil and gas
firm raised its retention rate to 30 percent above the annual
industry norm by funding hands-on training for all drilling
employees.
How do these strategies target Gen-Yers?
These tactics reward performance with flexibility: training
programs increase employee marketability and personal
growth, accommodative environment and benefit structures
enable better work/life management, and adaptable work
structures reduce logistical/hierarchical barriers, helping Gen-
Yers to develop the social infrastructure needed to collaborate
effectively. Moreover, by employing appropriate technologies
to enable these initiatives, companies appeal to Gen-Yers
“tech-savvy” bent.
Organizational branding, roles, and rewards provide
opportunities for companies to communicate their visions and
values. Still, employing the aforementioned tactics will likely
only attract and engage employees in the short-term. To have
enduring effect, managements must create cultures of
flexibility, balance, respect, and collaboration. In this way,
companies will not only be better able to develop, deploy, and
connect Gen-Yers, but all the critical workforce generations.
Deloitte Research – The Talent Crisis in Upstream Oil & Gas 8
 Exhibit 5. Strategies for Communicating to Generation Y

Mechanism Strategies to Modify How This Targets Gen-Yers

Brand and Heritage 1. Conduct a survey of company image, internally
Brand + Heritage = and externally.
Corporate Identity 2. Assemble a leadership team that represents
employees across generations/functions to
Brand is built from top down develop a cohesive corporate message that
since it can require changes to combines brand and the methods by which such
corporate strategy message should be communicated externally.
3. Approach brand communication as a classic
marketing campaign with brand being a
product to advertise.
4. Customize branding to the target audience,
such as scholarship and mentoring programs for
college recruits, continuous training for
experienced hires, and image-enhancing
advertising for the industry.
• Open social networks: These strategies
present an opportunity for Gen-Y to
work in a team environment to learn/
contribute to corporate-wide practices
that shape the company’s future.
• Sense of purpose/meaning in work: By
having input into the company’s
branding and identity, Gen-Y will have
a chance to develop/shape the way the
company connects with the market-
place.
• Mentors: Gen-Y workers will increase
their exposure to the company
leadership, enabling them to find
mentors.

Heritage is documentation and
dissemination of company-
specific and culturally-unique
knowledge that can be
described as “the way things
are done here”. Heritage is an
outgrowth of our traditions and
values.
1. Identify “heritage ambassadors” who are well-
respected and represent an experienced
workforce (it might not be connected to a
specific generation).
2. Train these “heritage ambassadors” on knowl-
edge-management techniques and any skills
necessary to carry out the task of collecting the
data.
3. Create a community of interest by defining and
marketing this ‘heritage’ within the company.
4. Identify strategies to sustain and continue
heritage-building initiatives (e.g., training,
team-building events).
• Sense of purpose/meaning in work:
Heritage defines a work environment
for Gen-Y and helps them associate
with the company; this will likely give
the Yers a sense of ownership, thereby
increasing loyalty/retention.
• Tech-savvy work environment: These
strategies play strongly to Gen-Yers’
ability to use new technology by
challenging them to create new ways
to collect and disseminate tacit
knowledge.

Organization Roles 1. Create a multi-divisional/generational leadership
(Workforce Planning) team that will allow for all the levels/genera-
tions within a company’s workforce to collabo-
rate on critical large-scale projects. Rotate
potential leaders to increase their exposure to
the largest number of people, and to corporate-
level solutions.
2. Establish leadership development rotational
programs.
3. Create developmental projects and plans for
newer employees.
4. Provide mentoring opportunities across the
generations to establish meaningful relation-
ships between employees at all levels.
• Open social networks: Through these
strategies, Gen-Yers can develop their
teamwork skills and expand their
knowledge of the organization.
• Long-term career development/
mentors: Rotational leadership
programs, mentoring opportunities,
and developmental projects provide
Gen-Yers with the infrastructure for
flexible long-term career growth.
• Sense of purpose/meaning in work: By
setting ambitious and meaningful goals
for the cross-divisional/generational
leadership team, Gen-Y will likely feel
challenged and respected.

Rewards Programs 1. Implement learning and development programs.
2. Create flexible supplementary rewards pro-
grams, such as annual incentive plans, deferred
compensation, profit-sharing, stock options,
recruiting incentives, etc.
3. Launch flexible benefits programs (e.g.,
“develop your own benefits”) as part of a
consumer-driven healthcare initiative.
4. Build creativity and flexibility into the work
environment (e.g., a “create your own work
space” initiative where Yers can help design
their work environment). Such initiatives may
also include co-location and virtual work
options.
• Long-term career development:
Learning and development opportuni-
ties increase worker marketability
across their organizations.
• Work/life flexibility: Accommodative
work environment and benefit
structures enable better work/life
management.
• Open social networks: Flexible work
arrangements/environments reduce
geographic/hierarchical barriers and
help Gen-Yers develop the social
infrastructure to develop/share ideas.
• Tech-savvy work environment: These
strategies employ advanced
technologies.

9 Deloitte Research – The Talent Crisis in Upstream Oil & Gas

Conclusions
The impending talent shortage, and potential resulting loss of
institutional knowledge, has created an urgent need for
companies in the upstream oil and gas industry to evaluate
and update their approach to recruiting, developing,
deploying, and connecting their people. To replenish the
workforce pipeline, such organizations must work to
understand the values of the incoming generation, and then
carefully rethink their strategies for attracting and engaging
these young entrants. Furthermore, they must communicate
their organizational philosophies through effective branding,
role development, and rewards programs.
Following is a short survey, which serves as a guide to self-
assess employer readiness for Generation Y:
1. Are you familiar with the concept of corporate identity/
brand? What are the solutions you are currently working
on, or have already implemented, to evaluate, improve, and
market corporate identity/branding?
2. Do you think the performance review process that you are
currently using is effective? Do you offer formal
mechanisms for employees to create and modify their
career paths beyond yearly performance reviews?
3. Do you offer formal mentoring programs? Are you familiar
with the term “reversed mentoring?” If yes, would your
company be a good place to implement a reverse
mentoring program?
4. What are the opportunities your company offers to
employees to network across divisions and hierarchy?
5. Do you offer employees choice in their benefits, rewards
programs, and work structures? If not, why? If you are,
how is it done?
6. Do you leverage technology in recruiting and organizational
communication? Based on your knowledge, what do you
think is the most successful way to recruit new talent?
Deloitte Research – The Talent Crisis in Upstream Oil & Gas 10
 Contacts About the Authors
Jim Sowers Rekha Sampath
Deloitte Consulting LLP Deloitte Services LP
Human Capital Advisory Services Deloitte Research
Tel: +1.713.982.4687 Tel: +1.617.437.3140
Email: jsowers@deloitte.com Email: rsampath@deloitte.com

Chris Nicholson Rekha Sampath is a manager in Deloitte Research. She has an

Deloitte & Touche LLP MBA in Finance from the Wharton School of Business and a
Global Energy & Resources Leader Bachelor of Applied Science in Computer Engineering from
+1.703.251.3455 the University of Toronto. Prior to joining Deloitte Research,
Email: cnicholson@deloitte.com Rekha worked at Morgan Stanley, Goldman Sachs, and IBM.

Mark Robinson
Greg Aliff Deloitte Touche Tohmatsu
Deloitte & Touche USA LLP Tel: +1.703.251.4057
U.S. Energy & Resources Leader Email: mlrobinson@deloitte.com
Tel: +1.703.251.4380
Email: galiff@deloitte.com Mark Robinson is an energy analyst with Deloitte Touche
Tohmatsu in the Global Energy & Resources practice. Prior to
joining Deloitte, Mark worked in a similar role at ExxonMobil.
He has an MBA from Marymount University, Arlington,
Virginia.

Contributors
Sarah Wooddy
Deloitte Consulting LLP
Human Capital Advisory Services
Tel: +1.713.982.4122
Email: swooddy@deloitte.com

Robin Athey
Deloitte Services LP
Deloitte Research
Tel: +1.212.436.2547
Email: rathey@deloitte.com

Leah Reynolds
Deloitte Consulting LLP
Human Capital Advisory Services
Tel: +1.313.396.3107
Email: leahreynolds@deloitte.com

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This publication contains general information only and Deloitte Services
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on this publication.

11
11 Deloitte Research – The Talent Crisis in Upstream Oil & Gas
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