Foreign Oil Companies To Help Ease Labour Shortages...
Foreign national oil companies (NOCs) will likely increase their presence in Canada’s oil sands, with one or two non-Chinese deals likely be struck in the next year, Deloitte predicted in a new report.
Their role could help the sector overcome labour shortages by drawing talent from their home base, according to the report that highlights major trends in the oil sands prepared by the firm’s Canadian energy and resources practice.
But the growing presence of state-controlled oil companies won’t come without challenges, including difficulties by NOCs in understanding Canadian law and its culture of transparency; understanding regulatory, tax and public oversight; and finding and retaining top workers. They will continue to play an evolving and sometimes unpredictable role, the report predicts.
Released Tuesday, the report, Gaining Ground in the Sands 2012, warns skills shortages will persist and worsen, making Alberta an “employee-driven market” through 2020 as baby boomers retire and as a result of few established plans to retain talent and institutional memory.
Meanwhile, turnover will be expensive, with separation and replacement costs for talent ranging from 25% to 200% of the position’s annual compensation.
“Companies will be challenged to create cultures where incoming Gen Y feels accepted and valued, as well as happy to collaborate with and learn from older employees,” the firm says.
Deloitte also expects negative public perceptions of the sector to continue unless companies reconsider some of their communications practices, which includes criticizing opponents for not knowing all the facts.
“In the game of public perception, the puck stops with industry and like hockey, swaying public perception is often a game of inches and success is the outcome of hard work, deep and tailored communication and synergies between all players.”
Foreign national oil companies (NOCs) will likely increase their presence in Canada’s oil sands, with one or two non-Chinese deals likely be struck in the next year, Deloitte predicted in a new report.
Their role could help the sector overcome labour shortages by drawing talent from their home base, according to the report that highlights major trends in the oil sands prepared by the firm’s Canadian energy and resources practice.
But the growing presence of state-controlled oil companies won’t come without challenges, including difficulties by NOCs in understanding Canadian law and its culture of transparency; understanding regulatory, tax and public oversight; and finding and retaining top workers. They will continue to play an evolving and sometimes unpredictable role, the report predicts.
Released Tuesday, the report, Gaining Ground in the Sands 2012, warns skills shortages will persist and worsen, making Alberta an “employee-driven market” through 2020 as baby boomers retire and as a result of few established plans to retain talent and institutional memory.
Meanwhile, turnover will be expensive, with separation and replacement costs for talent ranging from 25% to 200% of the position’s annual compensation.
“Companies will be challenged to create cultures where incoming Gen Y feels accepted and valued, as well as happy to collaborate with and learn from older employees,” the firm says.
Deloitte also expects negative public perceptions of the sector to continue unless companies reconsider some of their communications practices, which includes criticizing opponents for not knowing all the facts.
“In the game of public perception, the puck stops with industry and like hockey, swaying public perception is often a game of inches and success is the outcome of hard work, deep and tailored communication and synergies between all players.”
