We’ve recently explored macro and micro trends impacting oil and gas jobs in Australia and how organisations are adapting their talent-sourcing strategies to support growth. Building on insights gathered from our industry research – available here – we’ve uncovered valuable perspectives on employee retention.
As our survey highlighted, for employers, the focus has expanded beyond recruitment to include retention in the face of an ongoing skills shortage. Organisations are recognising more than ever that their workforce is critical for business sustainability and profitability. For companies hiring for oil and gas jobs in Australia, a multifaceted strategy is necessary for managing the dual pressures of recruitment and retention.
Retaining Senior Engineers
The more experienced segments of your workforce – those who are middle-aged and above – represent key company assets in terms of skills and knowledge. With the rate of new graduates entering the industry still weak, retaining these employees is becoming increasingly critical. Here are two factors to consider:
Offer More Flexibility to Experienced Workers
Research by the Australian Human Rights Commission (AHRC) highlights that the most common reasons experienced workers leave their jobs include retirement, illness or injury, and caring responsibilities. Other factors such as demanding hours, poor leadership, relocation, voluntary redundancy, and toxic workplace cultures also play a significant role.
However, many experienced workers want to continue contributing to the workforce, provided they can balance their roles with the demands of their life stage. Flexibility is critical to retaining this talent, whether through flexible hours, remote work, job sharing, or phased retirement plans for eligible employees.
The AHRC reports that over 59% of experienced worker departures result in a loss of key skills and institutional knowledge—an outcome that organisations should strategically work to avoid. Investing in long-term planning and fostering workplace flexibility can mitigate this loss and retain invaluable expertise.
Development Opportunities Matter for Experienced Workers
All employees crave new challenges to stay engaged, and experienced workers are no exception. Offering learning and development opportunities can re-energise seasoned professionals and deepen their commitment to your organisation.
In fields like oil and gas, for instance, professionals often cite intellectual stimulation as a key motivator—79% of respondents in one survey rated technical challenges as a major factor in their job satisfaction. Addressing this need by providing opportunities for growth and skill development helps reduce turnover driven by stagnation and boredom.
Intergenerational Knowledge-Sharing
Intergenerational learning is an important piece of the puzzle for developing the oil and gas industry professionals of tomorrow.
Strategic learning and development programs that actively engage all age groups can help organisations build and sustain a robust skills base. The key is to ensure that valuable expertise isn’t lost in your organisation as experienced workers retire. For example, retaining technical professionals nearing retirement as part-time employees or consultants allows them to mentor and train junior staff.
Mentoring equips younger employees with practical knowledge, but it has other benefits, too. It also helps build a culture of collaboration and respect across generations within a business, which is increasingly important as the broader workforce ages.
Address Priorities for Younger Employees
What makes more experienced workers want to stay in their jobs is broadly resonant with what younger workers value as well. Skills development opportunities, a clear path for career progression and job flexibility are all strongly desired by workers in younger age brackets.
Consider career progression and flexibility as two pillars of recruitment and retention. Not every candidate or employee will rank these as their top priority when deciding to join or leave a company, but it helps to give people these options as part of a broader workforce strategy.
Competitive Pay
Competitive salaries remain a baseline tool for employee retention. The reality on the ground is too complicated to make simple prescriptions like ‘Give everyone a pay rise’. Yet there is no denying the fundamental importance of salary in retaining talent. For 38% of oil and gas professionals we surveyed, pay remained the same throughout 2023, whilst pay actually decreased for 6% of employees. When asked about their primary reasons for considering leaving the oil and gas industry, a notable 28% pointed to reduced pay as the key factor.
The cost-of-living crisis, coupled with ongoing skills shortages, should give organisations food for thought regarding pay reviews. At the very least, remuneration that accounts for performance and skills value would be a valuable component in an employee retention strategy.
Final Thoughts
The coming years will be critical for many oil and gas businesses that are juggling the challenges of the market with a limited talent pool. Plainly speaking, the work to build a sustainable long-term workforce begins now. Understanding and accommodating the needs of various age demographics within your workforce can guide you towards practices that will help you retain critical talent and recruit more effectively.
More Oil and Gas Recruitment Expertise & Insights
At Patch Personnel, we work closely with a range of oil and gas companies and have dedicated expertise in consulting with businesses about their talent strategies and approaches. Whether you’re looking to attract fresh talent or retain key players, we’re here to help you build a workforce that’s ready for the future.
For more insights and data on oil and gas jobs and hiring trends, access your free copy of our Subsurface Oil & Gas Employment Insights Report here. For tailored advice and consultation on hiring for your team, please contact one of our recruitment specialists.