You are on page 1of 16

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

About Deloitte Research Studies Deloitte Research studies deliver ideas, fact driven insights and innovations designed to improve organizational performance. Through the contributions of research and practice professionals from the member firms of Deloitte Touche Tohmatsu, and the contributions of academic and industry contributors, Deloitte Research reports and articles bring ideas that matter to executives, boards and leading business journals. To access the latest research, please visit www.deloitte.com/research or contact Ajit Kambil, Director of Research, Deloitte Services LP at +1.617.437.3636 or akambil@deloitte.com.

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 whitecollar 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:

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 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.

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 whitecollar 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. 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.

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
Exhibit 1. Workforce Age Distribution
Oil and Gas Distribution
65+ 60-64 55-69 50-54 45-49 40-44 35-39 30-34 25-29 20-24 0% 5% 10% 15% 20% 25%

Typical Technology-Focused Company
65+ 60-64 55-69 50-54 45-49 40-44 35-39 30-34 25-29 20-24 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 8 Cumulative New Graduates 6 1,000 Employees 4 Projected Workforce

2

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 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 DevelopDeploy-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. 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 twopronged 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:

Deloitte Research – The Talent Crisis in Upstream Oil & Gas

4

Fundamental Workplace Element
Flexibility

Gen-Y Needs/Wants Included in This Category
• long-term career development • access to mentors and leaders • work/life flexibility • long-term career development • sense of purpose and meaning in work • long-term career development • sense of purpose and meaning in work • access to mentors and leaders • tech-savvy work environment • work/life flexibility • tech-savvy work environment • sense of purpose and meaning in work • access to mentors and leaders • tech-savvy work environment • open social networks • access to mentors and leaders • work/life flexibility • work/life flexibility • open social networks • open social networks • open social networks • open social networks

Balance Respect Access to people and knowledge Access to technology Opportunities for constant evaluation

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 geoscience degrees in an effort to encourage the pipeline at its earliest stages of development. These relationships can often involve scholarships, mentoring opportunities, joint program
Exhibit 3. What is the Develop-Deploy-Connect Model?

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.

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, 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 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. 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 design and conditions that help them to perform. 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.

Develop

Capability

Commitment

Performance

Deploy
Alignment

Connect

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 Needs/Wants Long-term career development and multiple experiences within a single organization Implications for Employers • Create personal development plans (PDPs) • Align PDPs with organizational roles and goals • 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 • Enable individuals to find what is meaningful 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 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)

Sense of purpose and meaning in the work

• 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 opportunities (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 accommodate 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/responsibilities (Develop) – Learn about new job/project opportunities (Deploy) – Foster relationships to help them succeed (Connect)

Availability and access to mentors and other company champions

• Offer formal and informal mentoring approaches that are aligned with strategic 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 environment

• Employ online recruiting tools • Offer multiple communication platform options • Offer gaming simulations as a learning tool

Open social networks that embrace open/honest communication

• Balance hierarchy and organizational agility • Communicate corporate goals clearly and 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

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 reexamine 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 GenY 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.

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.

7

Deloitte Research – The Talent Crisis in Upstream Oil & Gas

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.

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.

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 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 GenYers 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.

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 crossdivisional/generational teams, Gen-Yers will likely develop a deeper sense of purpose and meaning in their work.

Deloitte Research – The Talent Crisis in Upstream Oil & Gas

8

Exhibit 5. Strategies for Communicating to Generation Y Mechanism Brand and Heritage Brand + Heritage = Corporate Identity Brand is built from top down since it can require changes to corporate strategy Strategies to Modify 1. Conduct a survey of company image, internally and externally. 2. Assemble a leadership team that represents employees across generations/functions to develop a cohesive corporate message that combines brand and the methods by which such 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. 1. Identify “heritage ambassadors” who are wellrespected and represent an experienced workforce (it might not be connected to a specific generation). 2. Train these “heritage ambassadors” on knowledge-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). 1. Create a multi-divisional/generational leadership team that will allow for all the levels/generations within a company’s workforce to collaborate on critical large-scale projects. Rotate potential leaders to increase their exposure to the largest number of people, and to corporatelevel 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 relationships between employees at all levels. How This Targets Gen-Yers • 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 marketplace. • Mentors: Gen-Y workers will increase their exposure to the company leadership, enabling them to find mentors. • 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.

Heritage is documentation and dissemination of companyspecific and culturally-unique knowledge that can be described as “the way things are done here”. Heritage is an outgrowth of our traditions and values.

Organization Roles (Workforce Planning)

• 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. • Long-term career development: Learning and development opportunities 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.

Rewards Programs

1. Implement learning and development programs. 2. Create flexible supplementary rewards programs, 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.

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 selfassess 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
Jim Sowers Deloitte Consulting LLP Human Capital Advisory Services Tel: +1.713.982.4687 Email: jsowers@deloitte.com Chris Nicholson Deloitte & Touche LLP Global Energy & Resources Leader +1.703.251.3455 Email: cnicholson@deloitte.com Greg Aliff Deloitte & Touche USA LLP U.S. Energy & Resources Leader Tel: +1.703.251.4380 Email: galiff@deloitte.com

About the Authors
Rekha Sampath Deloitte Services LP Deloitte Research Tel: +1.617.437.3140 Email: rsampath@deloitte.com Rekha Sampath is a manager in Deloitte Research. She has an MBA in Finance from the Wharton School of Business and a Bachelor of Applied Science in Computer Engineering from the University of Toronto. Prior to joining Deloitte Research, Rekha worked at Morgan Stanley, Goldman Sachs, and IBM. Mark Robinson Deloitte Touche Tohmatsu Tel: +1.703.251.4057 Email: mlrobinson@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

Disclaimer This publication contains general information only and Deloitte Services LP is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte Services LP, its affiliates and related entities shall not be responsible for any loss sustained by any person who relies on this publication.

11 11

Deloitte Research – The Talent Crisis in Upstream Oil & Gas

About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, Deloitte delivers services in four professional areas, audit, tax, consulting and financial advisory services, and serves more than one-half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fastgrowing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte”, “Deloitte & Touche”, “Deloitte Touche Tohmatsu” or other related names. In the US, Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the US member firm are among the nation's leading professional services firms, providing audit, tax, consulting and financial advisory services through nearly 30,000 people in more than 80 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the US member firm’s web site at www.deloitte.com/us. © 2005 Deloitte Development LLC. All rights reserved. Member of Deloitte Touche Tohmatsu