We may be down, but don’t let the seemingly constant barrage of poor economic indicators make you forget that some sectors are holding their own and even growing. That’s the message reverberating throughout the oil and gas industry.

Pemex, Petrobras, and CNOOC all recently announced hefty increases in their offshore budgets, despite low oil prices, according to the March 2009 OPC Newsletter. And according to Dow Jones Newswire, with nearly US $40 billion in its coffers, giant ExxonMobil is poised to change the landscape with what could be the biggest round of deal-making since a fertile period 10 years ago when oil sold for less than $10 a barrel. Simply put, oil companies are mindful of not repeating the errors of the ’90s when many companies reduced activity to such an extent that rebounding when prices rose was costly.

Retaining and ramping up

But what does that mean to hiring managers looking to staff? That there is still a need for experienced professionals — today and into the future. One recruiter said, “we have always had a culture which recognizes the value of our permanent hires. Our focus is to redistribute our talent from areas that are slowing down to growth assets. In addition, we cut contractors before our permanent hires and this ensures we are prepared when oil prices rebound.”

The current economic climate might improve recruiting and retention. Hiring managers have long feared the “big crew change,” in which baby boomers hang up their working hats to head off into retirement, but the current economic climate appears to have slowed that trend. One human resources executive estimates that the economic downturn has bought the industry another five to seven years.

But be wary. Companies should use the extra time to focus on retention of experienced talent. The big crew change will still happen, and when it does, the oil and gas industry could lose up to 60% of its technical workforce. Forward-thinking companies are offering their experienced talent flexible work opportunities. Employees take their retirement packages on time but are then open to return six months to a year later when tax laws enable them to work contract assignments.

“After 27 years in the industry, I took early retirement at BP when I turned 50, complete with benefits and a pension. But I still have a child in college and always intended to return to work,” said Charlie Bondy, who is now a full-time employee for Hess Corp.

Tapping into a pool of experienced hires

During these down economic times, everyone is looking for ways to protect their assets, and former employees are no exception. In fact, many “retirees” have turned into “returnees” as they reenter the workforce.

These experienced professionals are especially valuable in fast-tracking the training process for young recruits. Such industry veterans often have decades of experience and understand the inner-workings of the industry. Furthermore, leading industry human resources personnel relate that industry experience and knowledge stays valid for up to 10 years.

“I wasn’t quite ready to retire; I was just seeking greater flexibility,” said Stephen Ziman, a 31-year veteran of Chevron. Currently, Ziman not only consults on project work, but is a teacher in Chevron’s Horizons training program for new hires with zero to five years experience. “It’s exciting to see how new employees interact and to be able to share with them fundamental elements of our corporate culture, like the importance of credibility in everything we do.”

A recent poll by Alumni Web Services (AWS), the largest provider of online networking communities and management services to the oil and gas industry, found that 62% of its members plan to pursue flexible working opportunities after exiting the workplace. Of those members who have no plans to work after retirement, 13.2% will wait until age 60 to retire.

What that means is that companies have a greater opportunity to fill project needs and train new hires. AWS works with a number of major oil and gas companies to tap into this talent pool through online networking communities. The sites serve as a strategic recruiting tool for attracting former employees and retirees for training, mentoring and long- and short-term assignments around the globe.

Welcoming professionals back into the fold is an easy task since many have spent years garnering relationships with employees throughout the company. “We’ve got decades of experience and networks of colleagues and friends whom we worked with over the years to find solutions and solve problems. And, we are willing and able to help ramp up young hires and get the company positioned to handle the knowledge gap left by retiring baby boomers,” said Katherine Hoenke, who, like Ziman, wasn’t ready to fade out into the sunset after retirement.

With this level of enthusiasm and willingness to solve the problems of the future in flexible ways, the industry might indeed be better prepared than after the cut backs in the ’90s. The use of former employees — whether attracted back from retirement, family leave or another position — gives a company the opportunity to promote its brand, meet today’s project needs and stem the knowledge gap.