Given the recent plunge in the price of oil, a Mercer study finds energy companies in Canada, the United States and Mexico are making changes to their HR strategies.
The Mercer Changing Energy Industry Dynamics Survey finds 32% plan to decrease “buying” talent from outside their organization, 18% plan to freeze or cut compensation, 18% will consider how to enhance cost-effectiveness of HR delivery, and 16% may reduce staff.
Read: Canadian salary increases led by energy sector
These results are clear indicators of how quickly market conditions can disrupt employer strategies, says Mercer. For example, in a previous survey released in early 2014, 66% of respondents identified “buying” talent as their top talent management strategy.
Given these findings and current market realities, Mercer believes the forward-thinking HR leader will put forth a balanced strategy—taking necessary short-term actions while building capability and enhancing organizational performance for the long haul.
The company says this approach is essential because, as history has proven, the price of oil is fundamentally based on supply and demand—as production cuts take their toll, demand will eventually outpace supply and organizations will be in growth mode again.
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