The Great Compression

Finding top talent in the oil and gas (O&G) industry has always been a challenge. And filling critical key roles is harder than ever due to our modern-day version of “The Great Compression.” In many industries, we are seeing a continued increase in demand for specialized talent, and a decrease of that talent pool.

5 Major Factors impacting Talent Scarcity

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SME Retirements Since 2020, top level leaders and SMEs are retiring with their knowledge and expertise leaving with them. This tenured crew comprises 50% of the industry’s personnel and most are retiring within the next five to seven years.

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Knowledge Gap In the 1980s, due to a downturn in the economy, companies managed the crisis with a hiring freeze that lasted 8 years. Today that leaves us with a current gap of leaders 55-65 years old who are needed to replace the retiring leadership talent.

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New Hire Scarcity The younger talent pool is declining, due in part to a negative perception of the O&G industry. Evidence shows that there has been a significant 20% decline in industry-specific university level courses since 2017.

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Job Insecurity Up until now, employment in the O&G industry has been highly valued and sought after. But today studies show that 53% of oil and gas employees are insecure about their long-term future in this industry. As a result, companies are more vulnerable to leaders being recruited or changing industries.

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Old School Recruiting Practices Traditional methods of finding talent are NOT working. And yet the industry has been slow to evolve. In the past 5 years tracked (2015-2019), there has been no major change in hiring strategy or job postings of O&G companies.

Historical Fact The Great Compression originally described the
dramatic narrowing of the nation’s wage structure during the 1940s.

Extract Talent GIF - 50%

of the industry's tenured
crew are expected to
retire in the next 5-7 years.

Extract Talent GIF - 20%

decline in industry-
specific university level
courses since 2017.

Extract Talent GIF - 53%

of O&G employees are
insecure about their
long-term future in this