Natural Resources Human Capital Workforce Challenges

Growing tensions about the state of the world's naturalaround the world have to change the way they do
resources workforces have surfaced for a few starkbusiness with prospective recruits, current employees
reasons. These include the industry's increasedand their high performers in order to maximize the
appetite for skilled workers, the ongoing challenge ofeffectiveness of their workforces and drive
convincing enough university students to pursueconsistently high profitability. "They have to start
energy-related careers and the considerablethinking about being more innovative and creative in
demographic shift that is beginning to move the globalhow they look at acquiring talent," he says. They also
post-war generation into retirement.have to ensure that the talented professionals and
Russ Buckland, managing partner of TRANSEARCHmanagers they recruit into their organizations land
in Canada and global co-leader of the Resources,smoothly in their new roles, stay long enough to deliver
Energy and Inftrastructure practice fora return on the company's training investment and
TRANSEARCH International, says he sees somereach their full potential.
incredible challenges ahead for North American andBut creating a new approach to sourcing, attracting
global employers in the oil, gas and mining sectors inand building a natural resource company's human
the months and years ahead. These new pressurescapital will require a significant dosing of change from
are being driven, he says, by the acceleration of majortoday's status quo. "Executive search is generally a
merger and acquisition activity, a so-called commoditiesreactive business. I'm suggesting we need to turn the
market "super-cycle" that continues to drive the priceparadigm completely upside down. Companies and
of oil, base metals and gold, and a demographic shiftsearch firms alike have to start thinking more
that will put an equally high premium on talent.proactively about talent," Buckland asserts.
"The biggest issue facing the Natural ResourcesBy identifying potential professional and management
market is a shortage of talent in all positions and that'srecruits and building a relationship with them before you
being driven by Baby Boomer retirements and a lackmay wish to hire them, Buckland says, natural
of talent acquisition in the down times of the 1980s andresources companies can dramatically reduce
1990s, around the time when I presented a paper attime-to-hire and "cycle time for replacement." They
the CIM asking, 'Where Has All The Talent Gone,'"can also gather important market intelligence that can
Buckland says.inform not only recruitment strategy, but corporate
Buckland explains that there is a huge gap in thestrategy as well.
Natural Resources workforce globally and that theThe candidates with the best credentials are
shortage of talent is especially acute among workersincreasingly expecting to learn and know far more
ages 30 to 45. That's because of the business cycleabout prospective employers than ever before. Top
and how it has pushed companies to hire only in fitstalent will gravitate to natural resources companies that
and starts, because of consolidation and an overallare proactive about talent acquisition and develop a
"lack of feeding the talent pipeline previously."relationship with them to help educate them about their
"The war for talent between the companies is intensemarkets, competition and new opportunities.
and compensation is being driven upward," BucklandIn other words, talented people want to see
says. "People don't want to join losing companies, soprospective employers invest time with them, and
companies have to have a strong overall position tothat's so vital because they have an increasing number
attract the best talent," he contends. "Talent acquisitionof employment options to consider and the winners in
and retention has to become a strategic imperative forthe war for superior natural resources talent will be
natural resources companies. If they don't, thosethose that differentiate the recruiting process. "In the
companies won't attract the right people, they won'tpast, people needed companies. Today, companies
keep people and they won't compete for the best."need people, so the nexus of the relationship needs to
Buckland says that natural resources employerschange," Buckland says.