Attracting and Keeping Talent
Serving the Marcellus and Utica Shale Plays
Zanesville Area Chamber of Commerce
May 16, 2012
Agenda
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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?
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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…..
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•
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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
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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
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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
Zane State College
Natural Gas Engineering Technology Program
The oil and gas industry is experiencing tremendous growth in the Appalachian
region. New geological targets like the Marcellus and Utica Shales present new,
major career opportunities. The Natural Gas Engineering Technology (NGT)
program includes classroom, laboratory, and field experiences in natural gas
exploration, drilling, well completion, production, processing, and distribution.
The NGT program prepares you for careers with:
• Major and independent oil and gas companies
• Field equipment companies
• Well service companies
• Consulting firms
• State and federal agencies
Local Support Resources
They will also be scaling up the following programs:
• Natural Gas Distribution and Compression
• Petroleum Geology
• Oil and Gas Reservoirs
• Formation Evaluation
• Industrial Mechanics
• Drilling Methods/Operations
• Field Services
• Natural Gas Production
• Mineral Rights and Leases
• World Regional Geography
• Physics
• Introduction to Mechanical Modeling
• General Chemistry
Local Support Resources
Additional programs:
Alternative Energy Technology (AET)
• Explore a field that gives you the flexibility to enter a variety of
alternative energy careers.
Electrical/Electronics Engineering Technology (EET)
• Explore a field that positions you as a high-demand, well-paid
employee in the energy industry.
Environmental, Science, Safety and Health (ENV)
• Explore a field that positions you for success in the environmental
industry.
Natural Gas Engineering Technology (NGT)
• Explore a field that puts you on track to enter an energy sector that
has abundant job prospects.
Local Support Resources
Safeland Training
This one-day course is the accepted standard for safety orientation for
the U.S. upstream oil and gas industry.
EPIC Oil & Gas Exploration Certification Training
This three-week Oil & Gas Exploration Certification training
program prepares you to succeed in a career in the petroleum industry.
The course provides students with an overall foundation and
understanding of oil and gas field work, proper safety procedures, and
the practical understanding of drilling operations.
Maintenance Technician Energy Efficiency Certificate Program
The five month Industrial Maintenance Technician Energy Efficiency
Certificate program results in 18 credit hours for students that
complete the course. It prepares you to use the “best practices” skills
as required for industrial energy efficiency according to the U.S.
Department of Energy, and includes training in such areas as basic
electrical, motor controls, PLCs, Hydraulics & Pneumatics, and
Mechanical Systems.
Local Support Resources
Mid-East Career and Technology Centers
Level 1 – Shale Core Training
• Safeland USA or OSHA 10
• NCCER Core Certification
• Natural Gas Industry Terminology and Fundamentals
• CPR & First Aid Certification
• Rigging
• Hydrogen Sulfide Awareness
• Employability Skills
Level 2 – CDL – Commercial Drivers License
Level 3 – Specialty Training (Welding, etc.)
Local Support Resources
Mid-East Career and Technology Centers
Safeland USA Rig Pass To Go
ST01 Course Number
All classes 8 am - 5 pm
Enroll TODAY in one of these classes:
May 3, 2012
May 19, 2012
May 24, 2012
June 28, 2012
July 12, 2012
July 26, 2012
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