GENE ZAINO
MBO PARTNERS
IN THE LAST FIVE YEARS, the independent workforce has grown more than five times faster than traditional means of employment – across all industries – contributing $1.15 trillion annually to the economy. Within the oil and gas industry, the rise in independent workers is no different. Accenture estimates that in the oil and gas industry, as much as 77% of the workforce resides outside the core organization.
Call them freelancers, independent contractors, or consultants, these workers are Americans of all skill, education, and income levels who look regularly to independent work for income, opportunity, and satisfaction. According to MBO Partners' workforce survey, there are over 40 million independent workers, which includes 16.9 million in full-time positions. By 2021, that number is expected to grow to 48.9 million.
But efficient and compliant engagement of this fast-growing talent pool is not without unique challenges for the oil and gas industry. Executives should consider the following four key topics to engage with and retain top independent talent.
ADAPT TO CHANGING WORKFORCE DEMOGRAPHICS
Many industries are seeing a changing of the guard as older workers seek retirement and Millennials become the largest percentage of the workforce. The oil and gas industry is no exception. Richard D. Slack, president and CEO of Oildex, calls it a "talent crisis," stating, "We know that Millennials are the most promising group of workers to take the reins in our industry, but we are challenged by needing to provide them with the experience and training to take our industry – one that competes globally – into the future."
For companies looking to engage independent workers, this shift is a multi-step process. First, it means adapting workforce practices and engagement models to keep pace with changing workforce demographics. This may mean updating systems to become more technologically friendly for digital native Millennials or providing necessary training to get younger workers up to speed. This may also mean creating new independent and part-time opportunities for Baby Boomer workers who offer valuable knowledge and skills, but no longer have the desire to work full-time.
This is not an easy task, and requires creating a nuanced and compliant contingent workforce program to properly classify and engage this new talent. It also means keeping pace with regulatory changes as well as remaining a nimble organization for the talent itself.
SPECIALIZATION IS KEY
In the oil and gas industry, many roles require specific specializations and certifications. Finding contractors with the right set of skills and experiences is challenging, but not impossible. On the whole, independents tend to be more experienced and specialized than their traditionally employed counterparts. Sixty percent of independent workers offer a specialized skill that requires certification, special training, or education, and the average tenure for those working full-time is more than double the average of traditional employees, making this cohort a great resource for oil and gas executives looking to update their HR and staffing models.
LEVERAGE TECHNOLOGY TO ENGAGE AND RE-ENGAGE WORKERS EFFECTIVELY
Today, many oil and gas companies rely on word-of-mouth, referral, and even phone calls to friends to find top talent. However, systems like MBO Partners' own MBO Connect™allow companies to develop private talent pools to easily find, engage, and re-engage top independent talent. These programs allow companies to reduce costs associated with time to fill, recruitment, and even training, as workers placed in the talent pool are already known to your organization and its policies. MBO's proprietary worker engagement and classification models also ensure compliant engagement and streamlined management of independent talent, meaning fewer burdens on HR and legal departments, ultimately leading to cost savings.
BECOME A CLIENT OF CHOICE
Oil and gas executives must understand how best to utilize these independent workers. Using a service such as MBO Partners ensures that talent is not only engaged compliantly, but that workers are provided with the tools they need to spend time focused on the tasks that matter to your company's bottom line – not worrying about things like invoicing, payment, and where their next gig is coming from.
Independent workers choose independence because they can control their own schedules and have more flexibility in their work. Sixty-five percent are satisfied with their chosen profession, suggesting that independence will continue to grow. By making it easy for both the worker and the client, savvy oil and gas companies can become a client of choice for top independents in the industry.
In 2017, it will be increasingly important for companies to make it easier for top independent talent to work with their organizations and to make it cost-effective and streamlined for the company itself to do business with independent talent.
Gene Zaino is CEO of MBO Partners. An expert in the contract workforce market, he has appeared in various publications, including Forbes, Harvard Business Review, and The Wall Street Journal. He has also appeared on CNN and CNBC. Zaino holds a BSE degree (cum laude) from the University of Pennsylvania's Wharton School of Business.
