HOUSTON, June 20, 2017 /PRNewswire/ -- While more than half of adults (51%) would be happy if their child chose a career in oil and gas, only 26% of Generation Z and 45% of millennials without a set career path find industry jobs appealing, according to EY's US Oil and Gas Perception poll. A majority from the younger generation also perceive oil and gas jobs as blue-collar, dangerous and physically demanding.
"Oil and gas companies need smart, capable employees now and for as long as the industry exists," said Deborah Byers, US Energy Leader, Ernst & Young LLP. "But younger generations' perceptions of oil and gas are leading them elsewhere. There are a couple of contributing factors to these views: a disconnect between what oil and gas executives think young people want from a career and what they actually want, a lack of awareness about the industry and the careers that power it, and a substantial gender gap. Young women's views on jobs in oil and gas are particularly concerning."
In fact, the industry's lack of job appeal among young people is largely driven by the degree to which young women find oil and gas jobs unappealing. According to the US Oil and Gas Perception survey, only 24% of women between 16 and 35 find industry jobs appealing while 54% of men in the same age range find them appealing.
Disconnect between executives and younger generations
Interestingly, younger generations actually hold fairly traditional career priorities. When asked which three considerations are the most important in selecting a future career, both Millennials and Generation Z, as whole, prioritized salary (56%), good work-life balance (49%), job stability (37%) and on-the-job happiness (37%).
In contrast, oil and gas executives expected the leading careers drivers for young people to be salary (72%), technology (43%), good work-life balance (38%), and the opportunity to try new roles (28%). They overestimated the allure of technology for young people while undervaluing work-life balance and stability.
Further, executives do not seem convinced of the industry's ability to deliver on some of the leading factors that attract young people to a career. While 92% of executives agreed salary is a strength of the industry, 37% said good work-life balance is an industry weakness and 61% said job stability is an industry weakness.
"There are a number of changes companies can make to improve their ability to recruit and retain quality employees, but overcoming this perception challenge will require much more substantial transformation," said Rachel Everaard, US Oil & Gas People Advisory Services Principal, Ernst & Young LLP. "Companies need to embrace the workforce of the future and evolve to better serve current and prospective employees."
Using technology to address workforce issues
Technology will play a crucial role in revolutionizing the industry's workforce – impacting both the number and type of employees needed.
For example, companies can implement digital automation to do a range of repetitive tasks that currently require staff time. In turn, they can quickly and inexpensively adjust to a smaller hiring pool by focusing their recruiting efforts on qualified individuals for key roles.
Oil and gas executives are already adapting to this mindset. Eighty-one percent of executives surveyed said the industry will need to develop an educated, highly skilled workforce over the next ten years, in contrast to a mass pool of employees.
"Each company's workforce and their strategy to efficiently deploy that workforce is a differentiator," Byers said. "At a time when energy abundance threatens a permanent oversupply and low prices, the oil and gas industry has a call to action to solve this perception problem for the sake of their future workforce and their success."
About the survey
To better understand the differences between reality and perception around oil and gas, EY conducted a nationwide poll of more than 1,200 consumers and 100 industry executives in the US in the first quarter of 2017. A total of 1,204 American consumers aged 16 and older were interviewed online nationwide, including: 1,004 Americans aged 19 and older and 200 Americans aged 16 to 18. A total of 109 oil and gas executives based in North America were interviewed online.
In the survey, net responses were calculated by subtracting the percentage of negative responses from the percentage of positive responses.
Study findings and illustrations can be found at ey.com/oilandgas/perceptions/talent. Additional analysis is forthcoming on the topics of climate change, regulation and tax reform.
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.
This news release has been issued by Ernst & Young LLP, a member firm of EY serving clients in the US.
About EY's Global Oil & Gas Sector
The oil and gas sector is constantly changing. Increasingly uncertain energy policies, geopolitical complexities, cost management and climate change all present significant challenges. EY's Global Oil & Gas Sector supports a global network of more than 10,000 oil and gas professionals with extensive experience in providing assurance, tax, transaction and advisory services across the upstream, midstream, downstream and oil field subsectors. The Sector team works to anticipate market trends, execute the mobility of our global resources and articulate points of view on relevant sector issues. With our deep sector focus, we can help your organization drive down costs and compete more effectively.
For more information, please visit ey.com/oilandgas.
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