Approach issue of personnel planning under such conditions

Assignment Help Operation Management

Reference no: EM132273315

Hiring for an Oil Boom

A couple of years ago North Dakota was experiencing an oil boom as drilling companies applied fracking technology and horizontal drilling to the Bakken shale formation in the state’s western region. The state has surpassed Alaska as the second largest oil producer behind only Texas. Its unemployment rate was under 3%, and in the town of Williston — the fastest-growing small U.S. city — it was below 1%. North Dakota officials were claiming that 25,000 jobs remained unfilled.

Those vacancies were at the more than 150 oil and gas operators operating in North Dakota, the hundreds of subcontractors providing them with labor, and the services businesses growing to meet demand. The state forecasted a peak of about 60,000 drilling jobs, which by 2025 would fall to 50,000 positions needed for longer-term oil production. Another 20,000 jobs were indirectly related to drilling—for example, the restaurant, retail, and health care jobs needed for a growing community.

Given that just about everyone who wanted a job was already working, employers were struggling to fill vacancies. One solution was to lure talent from other states, but many workers were leery of North Dakota’s harsh climate, and even those who came discovered that housing was scarce and expensive. Furthermore, employees may not stay with a company long. Turnover was high as workers jumped from job to job, improving their earnings with each move.

In this environment, employers used a variety of tactics. To limit turnover, they studied résumés for signs that employees were not job-hopping. Some companies relaxed their job specifications. One company, for example, recruited a receptionist to be an HR worker, though she had no experience in the field. Others promoted workers to management positions without training them for the responsibility. In contrast, for the high-paying jobs at gas and oil companies, employers screened out inexperienced applicants and selected those who have worked in the field, often with subcontractors.

Truck drivers, another high-growth occupation, must hold a commercial license. Mechanics servicing wells need clean driving records and technical skills.

Employers had to weigh the need to meet qualifications against the need to convince even marginally qualified workers to take (and keep) the job. While job candidates need to sell themselves to employers, companies need to sell themselves to the workers. Unfortunately, attracting pay-focused employees means company workers are likely to be attracted to slightly higher wages somewhere else, once they gain a little job experience.

Questions

1. How should oil and gas companies and companies from indirectly related industries (health care, education) approach the issue of personnel planning under such conditions?

2. Using Table 1, review the options for avoiding a labor shortage, and discuss how well the options besides new hires could have worked for oil and gas companies to reach their goals for growth. As you do so, consider qualities of oil and gas industry that might be relevant.

Reference no: EM132273315

Questions Cloud

What leadership traits are needed for each focus : Does your organization tend to focus more on being adaptable or on controlling costs, errors and efficiencies? What Leadership traits are needed for each focus?

What approaches exist to improve government productivity : What approaches exist to improve government productivity? What problems exist in this endeavor?

Concepts of environmental and organizational pressure : Compare and contrast the concepts of environmental and organizational pressure. How do these pressures affect an organization?

Disasters in the news that required large incident response : Over the past decade or two, there have been numerous large disasters in the news that required a large incident response.

Approach issue of personnel planning under such conditions : How should oil-gas companies, companies from indirectly related industries (health care,education) approach issue of personnel planning under such conditions?

Consumers participating in extreme and not-so extreme sports : These were originally designed to appeal to consumers participating in extreme and not-so extreme sports and recreational activities.

When trying to promote yourself for job opportunity : Give and example on how to conduct and elevator speech. What or key point to use when trying to promote yourself for a job Opportunity.

Certified hotel administrator designation for professionals : The American Hotel and Lodging Institute (AHLEI) offers the Certified Hotel Administrator (CHA) designation for professionals

Many people dream of starting their own business : Many people dream of starting their own business and becoming an entrepreneur, yet many people don't ever "take the plunge."

User Account

All Pages