What Is Human Capital Management for Oil & Gas in Downturn

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What Is Human Capital Management for Oil & Gas in Downturn

Postby vnmanpower » 20 Nov 2015, 08:02

After announcing across-the-board layoffs, many oil and gas companies have turned their attention to pay cuts, instead of letting workers go because they know how important to have skilled employees when prices rise again. Read below to learn more about the human capital management of oil and gas companies during the downturn.

Many oil and gas companies have realized the need to secure employees and have resorted to pay cuts and bonus caps during the prolonged downturn in oil prices. After announcing across-the-board layoffs, many oil and gas enterprises have turned their attention to pay cuts, instead of letting workers go because they know how important to have skilled employees when prices rise again. Read below to learn more about the human capital management of oil and gas companies.

1. Resort to cost-cutting strategies

Most of oil and gas companies are reluctant to lay off more employees, and resort to cost-cutting strategies instead. Those strategies for preserving jobs include bonus capping and announcing wage cuts to handle the downward spiraling of oil prices.

Those oil and gas firms want to avoid a shortage of skilled workers at the end of every downturn.

2. Give redeployment from upstream to downstream

Workers in oil and gas companies that are hired in the upstream sector are being redeployed to the downstream sector. That’s because oil and gas firms have halted further activities of oil and gas exploration owing to the low crude oil prices. Instead, refining and distributing oil and gas products continue to witness lots of demand and growth. Employees are expected to multi-task and shoulder more responsibilities because enterprises try to remain profitable. A pickup in recruiting activity in the upstream segment isn’t expected, seeing that crude oil prices are feeble.

In short

The change in human capital management mirrors the stance of oil and gas companies when they struggle to remain profitable, despite the low oil prices. Instead of dismissing employees, they are cutting wages and capping bonuses as part of their cost-cutting strategies beside redeploying employees in the upstream sector to the downstream sector.

Source: [url=vietnamlabor.wordpress.com/2015/11/12/economic-structure-in-saudi-arabia/]What Is Human Capital Management for Oil & Gas in the Downturn[/url]
Ms. Lana | General Director- Vietnam Manpower Service and Trading JSC
lana@vnmanpower.com | +84949594116 | http://vnmanpower.com
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