The worldwide problem of attracting and retaining talent in the energy industry isn't any less acute in Canada, and in particular, Alberta. In fact, Sean McBurney thinks it is worse.
McBurney is senior client partner member of the global energy & industrial markets practice of Korn/Ferry International, the worldwide executive search firm. He's based in Calgary.
Speaking at the Tight Oil conference produced by The Canadian Institute in Calgary Wednesday, McBurney talked about some of the particular burdens that Calgary faces in trying to attract and retain talent. (Full disclosure: I chaired the conference.)
Among the issues unique to Calgary, McBurney noted a few:
--The cost of living in Calgary is more expensive than other energy towns that might be a source of recruits. "The cost is a huge barrier to getting them to come," he said. "They look at the real estate sections, and they need CPR."
--While this next trend does not impact overall employment, the proximity of everybody in the Calgary energy business to each other makes retaining a steady staff hard. "Calgary is a highly centralized corporate community, with everybody located within four blocks," McBurney said of the downtown, where it seems every other building has an oil company name on it. "You can move from one site to another without a major disruption in your life. It's pretty easy."
--More damaging is what McBurney said is the growing trend of E&P companies poaching from service companies. "At the end of the day, it doesn't benefit anybody, because it just drives up costs," he said.
--Alberta is experiencing a boom in all the extractive industries, McBurney said. So energy companies are competing against fertilizer, potash and mining firms.
--The human resources segments at Canadian companies came in for stinging criticism. "They are not equipped to deal with these problems that are here, and they are growing in scope," McBurney said. The HR divisions just haven't adjusted to the new realities of the job market in these industries. For example, they need to react more quickly in obtaining talent. A job candidate might have three to four offers from other places, and companies need to strike quickly.
Beyond those specific observations, McBurney listed many of the same laments you get when anybody in the oil business talks about the personnel crunch. He was echoed by Martin McDonald, academic chair of the SAIT rig technicial apprentice program at Calgary's McPhail School of Energy.
The industry is getting old; McBurney said upward of 30% of all employees in Canada's resource industries are 50 or older. There was no rebuke of "these kids today," but McBurney and McDonald both spoke of the desires of Generation Y, defined as anybody born between 1982 and 1993. McBurney said they balance such things as flexibility, work/life balance, "respect, feedback, and they question authority," and companies need to respect these desires.
One thing members of that generation don't desire is to go in the field, according to McBurney and McDonald. It's an urban generation, and it would prefer to stick around town. But field work is absolutely vital for a company's operation, and it's vital for a young energy industry employee to develop needed skills.
The list of suggestions to deal with the squeeze--which is not just looming in the future, it's here now--was a long one. Let older workers stay around for awhile but give them benefits like eight weeks vacation. Make sure your company has an identifiable positive culture; McBurney cited Canada's WestJet airline as an example. When tough times hit, don't resort to mass layoffs; keep your developed work force around and plan for the future. (That will be a challenge for a company producing dry North American gas at less than $2.50/Mcf with no end in sight.) And so on.
One sobering thought expressed by McDonald: it could be worse. The stock market downturn of 2008-2009 kept some people working who might otherwise have retired.
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