At an earlier point in history, a career in oil and gas had a compelling employee value proposition (EVP) – solid pay, job security and perks like travelling the world. Whilst those perks remain, it’s become significantly harder to demonstrate them to younger generations. For older workers, priorities are also changing, and many top engineers need more reasons to change jobs than salary alone.
In short, an EVP-focused mindset is now essential for the success of oil and gas recruitment efforts. The key for organisations is to identify and promote an EVP that will appeal to key talent in more than one demographic, one that isn’t solely focused on salary.
Why EVP Matters More Than Ever
With oil prices in a period of stability and LNG demand soaring, demand for workers will remain consistent (if not grow) until at least 2035, by McKinsey’s estimate, but there is less new blood entering the industry to meet that demand.
It’s widely known in the oil and gas industry that employers are facing a looming talent ‘cliff’, particularly for frontline workers. With a significant cohort of the workforce aged above 40, a talent crunch is, to some degree, inevitable. But it is also one that companies can prepare for and mitigate against with a strong employee value proposition.
There are also challenges related to how organisations communicate their EVP to potential hires. A Gartner survey found 41% of Australian jobseekers declined an offer that did not match their expectations, whilst 67% bowed out of the hiring process ‘due to at least one mismatch in employee value proposition (EVP) preferences’.
Defining EVP in Oil and Gas Industries
An Employee Value Proposition (EVP) is the unique combination of benefits, culture, and opportunities companies offer to their employees, in exchange for their skills and commitment.
A well-defined EVP helps employers attract, engage and retain top talent, by clearly communicating what makes their company an appealing place to work. While EVP sounds straightforward as a concept, bringing it all together in practice requires strategic thinking.
Research provides clues to employers about which aspects of their EVP they could pay more attention to. For example, McKinsey found that, for those working upstream, factors like career opportunities, corporate culture, and perceptions of senior management were viewed as less than satisfactory.
Challenges in Attracting Younger Talent
If we could highlight just one reason why EVP is so critical, it would be the industry’s struggle to attract younger workers. Breaking this down further, we see that many younger people perceive limited career viability in the sector. Climate change concerns have led to a shift in career aspirations, with young professionals preferring industries that tick certain credibility boxes for sustainability.
Meanwhile, more career paths in renewable energy are emerging and competing with the oil and gas industry for fresh talent. Many university students and recent graduates see jobs connected to the energy transition as future-proof relative to oil and gas.
Another challenge in attracting younger talent is that the next generation of workers expects greater flexibility and work-life balance, wherever they happen to work. Traditional oil and gas work structures, which often involve rotational shifts, remote job sites, and long hours, may be a harder sell to younger jobseekers.
What Should Go Into an EVP?
An effective employee value proposition isn’t a fungible checklist that all employers can use; it must be bespoke to an organisation. With that said, there are common elements that are likely to appeal to both jobseekers and employees, which make them worth addressing in an EVP.
Career Growth and Development
Younger employees want to see clear career roadmaps that outline potential career paths from entry-level to senior leadership. More experienced professionals want opportunities for continual learning and intellectual stimulation. Offering a career development program addressing all these motivations can be a powerful driver for a strong EVP.
Some ways to bolster career development include mentorships, which have benefits for both junior and senior talent; leadership development initiatives; and training in emerging technologies like AI, automation, and digitalisation in subsurface roles.
Work-Life Balance and Flexibility
There are practical limitations on flexible and hybrid working in oil and gas companies. However, more subsurface professionals have indicated that working from home arrangements are more important to them than in previous years, as our research suggests.
While oil and gas jobs often involve on-site work, companies still can:
- Introduce hybrid work models where possible (e.g., remote work for certain roles).
- Offer more flexible rotation schedules to improve work-life balance.
- Provide mental health and well-being support to address workplace stress and isolation.
Sustainability and Ethical Practices
Large oil and gas companies have devoted ample resources to demonstrating their sustainability efforts, and smaller organisations would benefit from a similar approach. Carbon reduction initiatives, investments in renewable technologies and environmental responsibility are all factors that younger jobseekers will consider when deciding whether to work for an energy company. Emphasising CSR, such as community impact projects and ethical business practices, can help improve the industry’s image among young job seekers.
Summary
Attracting and retaining top talent in the oil and gas industry requires more than just competitive salaries. It demands a modern, flexible, and purpose-driven EVP. Accounting for changing employee values and embracing flexibility can help companies position themselves as employers of choice, for both experienced professionals and the next generation of energy talent. The future of the industry depends on it.
Discover More Oil and Gas Recruitment Insights
For more insights on trends impacting oil and gas recruitment and employment, access a free copy of Patch Personnel’s salary guide here, or please contact one of our recruitment specialists.