When Audrey Carlson’s dad turns into a “typical millennial hater,” she insists she does not wear yoga pants to work.
“All the previous generations complain about the next generation,” said Carlson, MarCom manager for Liberty Oilfield Services. “Actually, the world is getting better. Millennials are not lazy, but they are utilizing technology more efficiently than previous generations.”
In the old days of oil and gas, attractive salaries and benefits kept job applications rolling in. But today’s industry confronts a two-fold dilemma.
Like many other sectors, oil and gas must understand, attract and retain younger generations, including millennials and their successors. Plus, oil and gas specifically needs to correct misperceptions concerning the industry’s impact and its openness to nontraditional workers. It’s important, say industry experts, for oil and gas to diversify its workforce and reach out to generations eager for meaningful work that creates solutions.
“We’ve been focused on engaging communities that we have not traditionally reached out to,” said Rebecca Winkel, economic advisor at the American Petroleum Institute. “Millennials and women and communities of color don’t realize the breadth and scope of career opportunities that exist in oil and gas, and just how much oil and gas matter in life every day.”
Baby boomers are phasing out. About a third of Generation Xers are eyeing their golden years. By 2035, 40 percent or more of current oil and gas workers are expected to retire, part of what will create 1.9 million new job opportunities, according to a 2016 study conducted by IHS for API.
Millennials, generally considered those born from 1981 to 2000, aren’t homogeneous, say researchers who have studied them in the workforce, but they do show unique characteristics as a group. Compared to their predecessors, they are:
In its 2018 report, “How do we regenerate this generation’s view of oil and gas?,” professional services organization EY found that 42 percent of millennials considered oil and gas careers unappealing. Among teenagers known as Generation Z, 62 percent found the idea of oil and gas careers unappealing, including 39 percent who dismissed the prospect as “very unappealing.” Many Gen Z teens felt the industry offers few opportunities for growth, and 2 out of 3 believed the industry causes problems rather than solves them. Millennials, too, tended to agree that oil and gas are not good for society.
“The perception of oil and gas has declined, particularly with the newer generations coming in,” said Rachel Everaard, EY principal, People Advisory Services. “The general nature of the newer generation and focus on environmentalism has led to a decrease in interest in industries like oil and gas.”
The key to attracting youth and diversity is starting with “a solid understanding of what and who we’re working with, and [using] that to develop our strategies,” said Winkel.
The EY report discovered a “want disconnect” between what executives believe will attract younger generations to oil and gas, and what young survey respondents truly want:
A chasm also separates the perceptions of the types of jobs available. While 87 percent of oil and gas executives apply the term “white collar” to the jobs they offer, 55 percent of consumers say “blue collar” comes to mind when they think of oil and gas.
Salaries will always remain important, but other elements that have priority for younger generations include professional development, international opportunities and workplace flexibility, said Everaard.
“You’re going to see a rise in office space that’s more collaborative and provides more benefits similar to those you would see at tech companies, like gyms and cafeterias and even dry cleaners and other services, in a campus-like environment,” she said. “We are seeing more flexible work arrangements, with people being able to work from home or do some of their work remotely, so there’s an accommodation when there’s a good business reason to do so.”
Millennials also embody the rising “co-operacy,” seeking cognitive inclusion and an atmosphere where their “opinions are respected and valued,” said Alexandra Levit, chair of the DeVry’s Career Advisory Board and consultant to oil and gas companies on workforce issues. “That ties to bottom-up goal setting. If somebody at the bottom has a great idea, they can push it through the right channels to the right influencers, and it can be implemented companywide.”
How to Start
A refreshed approach to inclusion attracts men and women of any age with a range of ideas, skills and perspectives. It starts with an internal assessment, said Ann Randazzo, executive director of the Center for Energy Workforce Development.
“Where are you now, and where do you want to be?” she said. “When talking about ‘diversity,’ how do you define it? When talking about ‘change,’ change to what? What are you trying to accomplish? How do you not only bring them in, but how do you keep them?”
Strategies to attract new workers require breaking down old boundaries and rethinking traditional approaches.
1. Outreach
Oil and gas might represent the pinnacle in science, technology, engineering and math jobs, but other industries share that mountaintop and are competing for the same talent.
A STEM-field degree nearly doubles a person’s likelihood of working for oil and gas, but women and students of color are less likely to graduate with those degrees and are less likely to transition into STEM careers than white men, said Winkel.
That makes the drive for inclusion “a long game” that starts with sponsoring and participating in educational programs targeting girls and communities of color as early as kindergarten and even Head Start, she said.
At the college level, on-campus recruiting strategies should target different schools and align the attractive elements of oil and gas with the recruiting pitch, said Everaard. That can include “the stability and the benefits, the international assignments and the global nature of oil and gas. Oil and gas can bring a lot of strengths to the table that are differentiators from other industries.”
2. Shine a light
It’s time for oil and gas companies to spotlight the career advantages that are attractive to younger generations:
3. Linking the pieces
Oil and gas companies, including utilities, “are amazing about volunteering and getting involved in the community and supporting education, but sometimes, one initiative isn’t connected to the next,” said Randazzo.
For instance, a company might support a high school robotics team for girls, but lasting impact demands introducing those team members to summer camps, internships and scholarships. The industry has a role in “making sure we have classrooms that are diverse.
“You have to get involved early on,” Randazzo added. “Make sure students know they are welcome and they have confidence they can do this work and will be accepted once they get there.”
4. Resources
Research from CEWD, API, EY and other resources can open the industry’s eyes to the realities of life among millennials.
Meanwhile, partnerships with community groups and experts in other fields can leverage industry resources. Working with afterschool programs adds educational expertise to STEM efforts, for instance. Relationships with local colleges to align curricula with needed workplace skills create a “direct pipeline to employment,” said Winkel.
“Work-life integration” is now replacing “work-life balance,” said Liberty Oilfield’s Carlson. If she’s answering emails at 10 p.m. because she spent her afternoon handing over the keys to her old house to the new buyer, she feels “no resentment. It allows people to be more flexible, but it allows that efficiency for the workplace. Actually, I think you’re seeing better results than if you made people sit from 8 a.m. to 5 p.m.”
Carlson started at “little, tiny Liberty” in 2012, right out of college. From 120 people then, the company has grown to employ 2,300, but through it all, Carlson and her coworkers—with backing from CEO Chris Wright—have tried to maintain a startup mentality. Millennials make up 55 percent of its employees, and they actually stay once they’re hired.
Along with perks such as beer and wine on tap and a pingpong table, Liberty’s policies show that a little ingenuity goes a long way:
“Flexibility doesn’t cost any money,” said Carlson. “I understand that not every company can put pingpong tables in their offices, but being flexible and treating employees like adults, not counting minutes, goes very far.”
Today, women comprise half of Liberty’s 160-person Denver office. To increase the number of female hires, Liberty shares its message of work-life integration at college campuses. Though the labor pool of qualified female candidates remains tight, Liberty’s female complement mirrors the 20 percent rate of women graduating from engineering programs.
Most oil and gas companies have mastered the step of hiring diverse employees, but millennials also demand mastery at retention, Levit said.
“Once you get in the door, you’re not just there to check a box, but you are valued for the unique perspective you bring,” she said. “We’re continually asking these people who bring different experiences, ‘Are you getting what you need from this organization, and if not, what can we do differently to make sure you feel valued?’”
A diverse leadership shows commitment to inclusion, noted Everaard. “BP and Shell have women U.S. presidents coming in. I think you will continue to see more women and minorities in leadership.”
Now is the time to prepare for filling tomorrow’s jobs with top talent, with many of those hires taking up duties that don’t fully exist yet. Levit uses social media as an example. Twenty years ago, the job of social media manager didn’t exist, “but it didn’t spring up overnight,” she said. Today’s organizations must “look at things starting to percolate,” including the coming need for “human-machine teams” managing everyday tasks.
Since CEWD’s founding in 2006, the oil and gas industry has shifted from managing “the problem of an aging workforce to an issue where we need to absolutely transform the industry in order to be able to move forward,” said Randazzo. “We need people who think differently and look different and come from different backgrounds, and everybody works together so we capture those ideas and can turn them into actions.”
Oil and gas jobs “are in many ways hidden,” said Ann Randazzo, executive director of the Center for Energy Workforce Development. “Many people don’t know who we are and what we do.”
CEWD, as it’s known, was created in 2006, when utilities and energy associations started discussing the workforce challenge of the day—the retirements of baby boomers.
Today, CEWD (cewd.org) convenes energy associations, including the American Gas Association, plus utilities, contractors and unions to build a workforce pipeline of skilled, diverse people to meet future industry needs.
For members, CEWD offers ready-to-use tools for workforce planning, career awareness, education, and structure and support to leverage national, state and individual company initiatives. On CEWD’s Get Into Energy site (getintoenergy.com), youth, engineers, transitioning workers, women, and military personnel and veterans can find information on energy careers.
The military-specific Troops to Energy Jobs site (troopstoenergyjobs.com) offers a road map to energy careers, helping military personnel translate their service skills to the private sector and register for a jobs database.
Energy companies also can adapt CEWD resources and initiatives to their own needs, getting straight to the task of building the workforce of today and tomorrow, said Randazzo.
“If we work together, if we collaborate, if everybody puts their resources in the middle of the table, we can accomplish something,” she said.