As the world’s appetite for energy has grown, so has the deficit in human resources and skills. As a result, HR departments have become more vital than ever in the oil and gas industry. This is also true in the mining industry, which faces a shortage of qualified talent to meet production needs. EPAY Systems offers a unified human capital management system to help HR recruit, staff, pay, and manage employees in the oil, gas, and mining industries.
Oil & Gas HR Challenges
Human capital requires skillful management in any industry; however, in the oil and gas industry, company HR departments are facing several unique challenges:
- Changing business strategies: In the oil and gas sector, business strategies are constantly changing, making it difficult for HR managers to keep up. The need to continuously modify strategies to meet changing requirements ranks among the greatest HR challenges in the oil and gas industry.
- Shortage of skilled workers: After hundreds of thousands of energy job layoffs, job seekers have turned to other related industries offering greater stability. In Texas, for example, some workers formerly in oil and gas have found work in the solar industry, which offers stable employment. Competition is becoming increasingly stiff, with more challenges involved in recruiting and retaining the best and the brightest oil and gas technicians, geologists, rig workers, and engineers.
- Aging workforce: As in certain other industries, the average age of the highly skilled oil and gas worker is nearing retirement age. These skilled and experienced workers have been the backbone of many oil and gas companies, and HR will face significant challenges replacing them.
- Expansion to new locations: Expanding oil and gas operations present challenges for HR. It takes time to accumulate the right talent in sufficient numbers in a new location and train them to the standards of the operation.
- Time tracking difficulties: In the oil, gas and mining industries, workers are spread out across very remote locations—miles away from an office, which makes time tracking difficult. Often times, these workers are tracking their work time manually, which leaves companies open to manual processing errors and time rounding. Having flexible time tracking methods, such as mobile time tracking, takes away the manual data entry associated with pen and paper time tracking, easing the burden on both the employee and HR.
HR Challenges in Mining
The greatest challenge HR faces in the mining industry is a shortage of qualified workers. Every year, the number of workers that leave the mining employment sector is greater than the number of workers entering it. Factors affecting this trend include:
- General image of the industry
- Turnover and retirement draining talent
- Declining numbers of graduates from mining programs
Currently, more than 50% of mining industry employees are over the age of 40. This age distribution is due in part to the boom in the 1970’s, when a large pool of twenty-something workers were hired. Significantly reduced numbers entered the industry in the 1980s and 1990s due to restructuring, downsizing and layoffs. With a large percentage of mining employees planning to retire within the next decade, recruiting and retaining qualified talent is more crucial than ever.
Human Capital Management for Oil, Gas and Mining
HR is a vital part of any organization in the oil, gas, and mining sectors. EPAY Systems provides human capital management for the oil, gas and mining industries, which makes it possible to manage every aspect of HR more effectively, with less time, effort and cost – including recruiting and applicant tracking, onboarding, benefits administration, HR management, performance management, time and attendance, payroll and taxes, and compliance and reporting.
Contact us today to learn how our HCM solutions can ease your HR burden in the oil, gas, and mining industries. Get a live demonstration»