Attracting and Keeping Talent
Serving the Marcellus and Utica Shale Plays
Canton Area Chamber of Commerce October 9, 2012
Agenda • • • •
Introductions General US and PA Employment Trends O&G Job Growth Difficulties You May Face in Finding and Keeping Your Key Talent • Some Good News • Where You Can Find Help • Q&A
Six member firms made up of over 50 seasoned professionals, with offices located throughout the Appalachian Basin Akron, Columbus, Medina, Steubenville and Warren in Ohio Cranberry, Johnstown, Pittsburgh, Southpointe and State College in PA Bridgeport, Charleston, Morgantown, Parkersburg and Wheeling in WV Raleigh, NC — Sewell, NJ — Elmira, NY — Dallas and Houston, TX
Deep Experience In Serving the Entire Oil & Gas Supply Chain
The Single Complete Source for Talent and Organization Solutions
Acquiring
Optimizing
Managing
Do you have the talent you need to grow and succeed?
The Single Complete Source for Talent and Organization Solutions
Getting Your Talent
Managing Your Talent
Optimizing Your Talent
• Finding Them • Attracting Them • Screening Them • Training Interviewers • Reference Checks • Pre-hire Tests & Assessments • Orientation & On-boarding • Employment Contracts
• Wage & Salary • Incentive Plans • Policy Manuals • Employee Handbooks • Performance Reviews • Performance Coaching • Exit Management • Severance Packages & Agreements • HR/Legal Compliance • Back Office Admin
• Employee Engagement • Key Talent Retention • Talent & Capability Reviews • Management Training • Employee Training • Succession Plans • Organization Plans • Growth Plans • Culture & Change Management
Hiring and Retention Are Mission-Critical For Them! The Industry’s Talent Barbell 70’s – 80’s Steady Hiring
These Hires Are Now In Their 50’s
1985 – 1995 Minimal Hiring
20 Year Experience Gap
Late 90’s Rebound Hiring
These Hires Are Now In Their 30’s
And That Makes Hiring and Retention Mission-Critical For You! Recently Announced Investments
Assumed Minimum Payroll
$2B
25 %
Minimum Average Wage
Assumed Benefits Factor
$ 40,000
30 %
Projected Payroll Investment
Average Compensation Per Employee
$ 500 M
Projected Payroll Investment
$ 52,000
Average Compensation Per Employee
~ 9,600
Employees Needed to Staff the Investment
What Happened When O&G Came To Town (from a PA perspective)
U.S. Unemployment Rate November 2010 9.3%
December 2011 8.2%
Pennsylvania Unemployment Rates November 2010
November 2011
Net Change
Pennsylvania
8.2
7.4
-0.8
Allegheny County, PA
7.3
6.4
-0.9
Beaver County, PA
7.4
6.9
-0.5
Butler County, PA
6.6
6.0
-0.6
Fayette County, PA
9.5
8.2
-1.3
Greene County, PA
6.9
6.3
-0.6
Indiana County, PA
7.4
6.5
-0.9
Lawrence County, PA
8.8
7.7
-1.1
Washington County, PA
7.5
6.5
-1.0
Westmoreland County, PA
7.6
6.8
-0.8
Area
Job Growth In the Shale Gas Industry 2010
2015
2020
2025
2030
2035
Direct
148,143
197,999
248,721
241,726
278,381
360,335
Indirect
193,710
283,190
369,882
368,431
418,265
547,107
Induced
59,494
388,495
504,738
512,220
576,196
752,648
601,348
869,684
1,123,341
1,122,377
1,272,841
1,660,090
Total
Direct Oil & Gas Jobs In Demand Occupation
2010 Jobs
2011 Jobs
Change
% Change
Service unit operators, oil, gas, and mining
42,110
46,766
4,656
11%
Derrick operators, oil and gas
23,323
25,747
2,424
10%
Rotary drill operators, oil and gas
28,116
30,981
2,865
10%
Roustabouts, oil and gas
75,636
82,678
7,042
9%
Helpers, extraction workers
44,303
47,247
2,944
7%
Petroleum engineers
29,063
30,917
1,854
6%
Biomedical engineers
16,065
17,061
996
6%
Wellhead pumpers
24,186
25,616
1,430
6%
Extraction workers, all other
23,423
24,784
1,361
6%
Geological and petroleum technicians
35,304
37,205
1,901
5%
Top Ten Jobs in the U.S. 1. 2. 3. 4. 5.
Skilled Trades Sales Representatives Engineers Drivers Accounting & Finance
6. IT Staff 7. Management/Executives 8. Teachers 9. Secretaries, PAs, Admins 10. Machinist/Machine Operator
Facts of Life The U.S. is still wrestling with high unemployment, but‌
52% of employers report difficulty filling open positions.
Facts Behind the U.S. Unemployment Rate • 17% - No High School Diploma • 14% - With a High School Diploma • 5% - With Some College • U.S. High School Drop Out Rate 30% • Metro Area Drop Out Rate 50%
Why Are Employers Having Difficulty? • • • • • • •
Applicants looking for more pay than offered Lack of "hard" job skills or technical skills Lack of industry or related work experience Lack of sufficient applicants / no applicants Applicants don't have the right values and/or mindset Lack of business knowledge or academic disciplines Lack of "soft" skills or interpersonal / communication skills
What It Boiled Down To In The PA Shale Play….. • • • • •
Drug Testing Work Ethic/Culture Unfamiliarity with the business (Dad didn’t do it!) Lack of safety training and other related certifications Lack of skills training
At first, it was a mad scramble with everyone trying to get on board to find out what O&G companies were here, where they were, what they needed‌.no one had the answers or knew where to find them!
The Good News from PA….. • It’s all started to come together • The O&G companies are better at letting people know where they are and what their needs are • The local education/training infrastructure has been gearing up to address industry-specific needs • Local suppliers are learning how to serve O&G
Solutions – Short Term • • • • • • • •
Know what differentiates you in applicants’ eyes Be clear about what you expect of them And what they can expect of you Determine which skills you should build vs. buy Realize that recruiting is not a one-size-fits-all process Ensure your selection process is “effective” Recruit for talent, not for vacancies Use every action as a way to build your brand
Solutions – Longer Term • • • • • • •
Use an effective on-boarding process Ensure you are paying for performance Identify and retain your high performers Train your managers to manage effectively Effectively manage your marginal performers Don’t organize your staff – staff your organization Communicate, communicate, communicate
Local Support Resources • Your Local Chambers of Commerce • Online resources (e.g., ShaleDirectories.com, Ohio Shale Coalition, etc.) • OOGA, IOGAWV, PIOGA, etc. • Marcellus Resource Group and other providers
Local Support Resources Stark State will soon be offering ShaleNET programs which may include the following: • Roustabout • Floor Hand (combination of Derrick Operator and Rotary Drill Operator) • Production Technician • CDL • Welder’s Helper
Local Support Resources They will also be scaling up the following programs: • •
• •
Welding Safely – to include SafeLand, First Aid/CPR/AED, OSHA 10 and 40, First Responder, & others Petroleum Basic Industrial Maintenance Industrial Hydraulics and Pneumatics for Exploration and Production Mechanical Drive Systems for Exploration and Production Drilling Location and Positioning Rigging Basic Environmental, Environmental Technician and Environmental Supervisor Geo-Environmental Wastewater and Water Treatment
• •
1-year OBR Certificate in Oil & Gas Exploration & Production Technology A.A.S. Degree in Oil & Gas Exploration & Production Technology
• • • • • •
Q&A
To further discuss how we can help your company grow and succeed – just contact: Bill Thomas at 866.302.9099 bill@marcellusresourcegroup.com Jeff Dressler at 724.562.3197 jdressler@marcellusresourcegroup.com