By Janet Lane
In the Edmonton Journal and Calgary Herald

Dec. 10, 2015

Employers have been complaining for years that they cannot find the people they need, or that the people they do hire do not have all the required skills. Why is it, then, that they reduce training budgets, especially in hard times?

A recent survey released by Hays Specialist Recruitment states that “… 57 per cent of respondents believe the (oil and gas) industry suffers from a moderate to extreme skills shortage due to a lack of training and development. While employers consider this their responsibility, almost none (two per cent) plan to add professional development to their plans.”

The findings suggest that many companies see their employees as costs instead of investments, and training and development as a nice-to-have, and not a necessity. Given the proven benefits of training and development, inquiring minds wonder, “Why?”

Employers in Canada have been relatively stingy with training compared to those in other developed economies. And that’s in the good times. When times get tough, training budgets are among the first to be cut.

As training is cut, job performance pressure ramps up, the Hays survey found: “Almost three-quarters (73 per cent) of oil and gas employees (surveyed) experience moderate to extreme workplace pressure due to the lack of employees and skills present.”

Furthermore, despite this, half of oil and gas employers said they do not plan to hire, and close to the same number (42 per cent) said salary increases are not in the cards for 2016.

Studies such as this one make it clear that employees want professional development. What is more, if they feel valued through support for their learning, they feel loyalty to their employer.

Perhaps the problem lies in employers not knowing exactly what the training needs of their employees are, and where to best meet those needs. Some workplace training curricula, for example, may be too generic and programs at training institutions may need to be tweaked to provide maximum benefit. Even so, refusing to invest in training and development is counter-productive, even during downturns.

Customized training, either directly in the workplace, or through a training provider such as a community college or the continuing education department of a university, can have massive rates of return on the investment. One recent study in the hospitality sector showed increased customer satisfaction, increased sales, increased retention – and increased profits.

This study also proved that working with qualified workplace training specialists to determine what training is needed and how to provide it can greatly improve the quality and value of the training.

A common refrain during the current energy sector downturn is the need to do things differently when the market turns. Big companies are taking a hard look at their processes and uses of technology to see if they can be more productive, and therefore profitable, at lower priced oil.

If they succeed (and they must), fewer, more broadly competent workers will be doing jobs that have broader ranges of responsibilities. They will be using different skills than those they used in the past. Customized workplace training that helps people to develop the required competencies will become a necessity.

If cost is discouraging some employers from investing in training, the Canada Job Grant could help. The program is available in every province and territory and reimburses two-thirds of training costs, up to $10,000 per employee.

The latest job numbers show that layoffs in the oilpatch are far from over. This time is different. Most experts believe it will be a long time before we see $100 oil again.

It is not surprising, then, that some of the people who have lost their jobs will leave the sector, or even the province, permanently. This is skill loss we will regret. When things recover, even a little, we will need more highly skilled people again.

We can find a new way to treat people during the hard times of economic downturns. We can try, through professional development, to improve the lives and the work of those who still have jobs and are working harder than ever.

Janet Lane is director of human capital policy at the Canada West Foundation and co-author of Building Blocks, Modular Credentials for Canada’s Trades, which can be accessed here.