TORONTO, ONTARIO, Aug 29, 2006 -- CCNMatthews

 

Canada's energy and resources sector is in a labour "pinch" that is expected to deepen in the coming years, reveals a Deloitte survey released today. According to the survey findings, a vast majority of respondents (80%) confirmed that talent shortage has limited the productivity and efficiency of their organizations, and more than half (55%) acknowledged the lack of skilled workers has impacted production requirements and customer demand. The 2006 Energy and Resources Talent Pulse Survey conducted by Deloitte, with the support of the Energy Counsel of Canada included 55 respondents from Canadian oil and gas, utilities and mining companies.

Attracting specific types of labour (67%), followed by attracting new talent (60%) and the departure of baby-boomers (49%), were recognized by respondents as the top three most critical people-issues organizations face. Survey respondents also confirmed the labour shortage impacts all segments of their workforce, but particularly with hourly/blue collar employees. Nearly half (47%) of companies are experiencing a high-level shortage of blue collar workers and a similar number of respondents also anticipate the serious shortage to continue over the next three to five years. An additional 42% of respondents confirmed their companies are facing a moderate blue collar workforce crunch that will continue over the coming years.

"The survey findings serve as a reality check that Canada's talent crisis has already hit home. The impact will vary widely from one industry to the next - but the energy and resources sector will be one of the hardest hit." says Dick Cooper, partner, National Energy & Resources practice, Deloitte. "To effectively prepare for and manage the talent crisis, organizations must first identify the critical skill sets that will help them grow their business and then deploy the appropriate strategies to attract, retain and develop a workforce that possess these appropriate capabilities."

While the talent crisis in the energy and resources sector is a reality for the majority of the survey respondents, only 18% of them confirmed they have strategies in place and are ready to face the challenge, while three-quarters (73%) are only now getting ready and beginning to develop appropriate strategies. Additionally, a breakdown of responses by sub-sectors reveals a great divergence between utilities and oil & gas companies in the level of preparedness. Eighty-three per cent of survey participants from the utilities sub-sector confirmed they have taken the first step in defining a list of critical skills required for future growth, compared to less than 40% of companies within the oil & gas sub-sector.

However, while the majority of survey participants are only at the infancy stage in defining and implementing strategies to deal with the talent crisis, they are moving forward in the right direction. Among the leading strategies to attract talent, as identified by respondents, were 'increasing career growth options' (63%), 'offering more training and development options' (55%) and 'collaborating with colleges/universities and professional associations' (43%). Talent attraction strategies based on financial incentives such as 'higher salaries' (22%), 'incentive pay' (20%) and 'improved benefits plans' (18%) ranked lower.

"Clearly the energy sector has realized that compensation-based strategies to manage talent and acquire talent are no longer a means to an end in an environment of demographic change and severe labour shortage," says Stephen Diotte, partner, Human Capital practice, Deloitte. "Talent programs need to move beyond costly 'band-aid' remedies and evolve into long-term solutions that take into account developing, deploying and connecting employees. In a labour market where there isn't enough talent to go around, the best approach is to 'grow your own'."

With employees placing greater importance on opportunities for growth, development and communications rather than on pay alone, Deloitte has used its insight to develop a unique model for talent management known as Develop-Deploy-Connect. The new model is designed to optimize the employee experience and to grow talent internally. The first part of the strategy - Develop - focuses on employee's personal and professional growth. Deploy - refers to challenging and engaging employees in assignments which are interesting and 'stretching' their skills. Connect - revolves around connecting employees with each other through social networks, with resources to share knowledge and with the purpose of building a career path.

About the survey

The 2006 Energy and Resources Talent Pulse Survey was conducted by Deloitte with the support of the Energy Council of Canada between March and April of this year. Fifty-five respondents from Canadian oil and gas, utilities and mining companies participated in the survey, which examines specific HR shortages including current and future critical talent issues and organizations' current and future plans to face Canada's impending labour shortage crisis. For a complimentary copy of the full report or to receive further information, please visit www.deloitte.ca.

About Deloitte

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, financial advisory and enterprise risk services to a wide range of Canadian and international clients. Deloitte is the Canadian member firm of the Deloitte Touche Tohmatsu Verein, which is an association of firms operating in almost 150 countries. Together, DTT member firms have almost 135,000 employees around the world. In Quebec, Deloitte operates as Samson Belair/Deloitte & Touche.

SOURCE: Deloitte & Touche

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