We usually hear and read about drilling plans, new discoveries and valuable tenders being signed by oil and gas companies. However, the most valuable investments that a company can make is to train its own employees.
Training employees in chemical, construction and oil- and gas-related skills will help corporations not only to build goodwill among communities, but also boost their future prospects of increased revenue and profits. Attrition, lack of skilled employees and lack of enthusiasm among businesses have often been blamed for many companies’ woes. Exxon Mobil Corporation (NYSE:XOM) certainly seems to know that, and is investing a whopping $500,000 in training its future workforce.
Training investment details
Exxon Mobil Corporation (NYSE:XOM) has signed partnership deals with multiple Houston-based community colleges. If that weren’t enough, ExxonMobil is funding a $1 million endowment to the University of Houston. The endowment is going to benefit the university’s teachHOUSTON program, which will help science and math teachers.
For its part, the $500,000 investment will help train 50,000 students and teachers in the coming five years. Trainees will have access to certification and degree programs that include but are not limited to welding, machinist, manufacturing and instrumentation programs. Molly Ryan with Houston Business Journal wrote that ExxonMobil will closely work with Lee College, Lone Star College, Houston Community College, and others.
ExxonMobil to help reduce unemployment levels in Texas
Exxon Mobil Corporation (NYSE:XOM) is in the midst of pursuing a multi-billion dollar expansion of its chemical plant in Baytown, Texas. It is expected to create 10,000 new construction jobs that will help offset the increasing rates of unemployment in the area. On top of that, the company is also looking to create 350 permanent jobs. Many of these jobs maybe filled with graduates from its own training programs conducted in partnership with Houston community colleges.
Young adults in the U.S. face an unemployment level of 16.1%, which is more than two times the national average. On top of that, unemployment levels among youth are twice the state average as well. Just 62% of youngsters in Texas who are working have full time jobs and only 54% have any jobs at all. ExxonMobil’s training program will help a considerable part of this unemployed youth to be trained with skills that will prepare them for high-paying jobs.
The $500,000 investment in training and education will help ExxonMobil in impressive ways. I see this move as a valuable decision to tap into a workforce that has often been plagued by low salaries, unemployment and frustration. Hiring local students who are trained and educated by Exxon Mobil Corporation (NYSE:XOM)’s partnering institutions will ensure high levels of technical skills, something that is very important in the field of oil and gas.
Two competitors that have invested much in employee training
Anadarko Petroleum Corporation (NYSE:APC) has at various points in time donated money for training potential employees. It donated $15,000 to Penn College in 2010 to train students to work in the natural-gas industry. Chris Doyle, Anadarko’s general manager for the Appalachia Basin, had once said that the natural-gas industry requires talented local men and women. He had underlined the importance of hiring locals in Pennsylvania who would help the company to meet its transporting and producing challenges.
Anadarko Petroleum Corporation (NYSE:APC) has also made it a policy to train Mozambican employees with skills that are often not available in that country. This has helped Anadarko to be on top of its form when it comes to drilling and exploring in the waters of Mozambique. Anadarko Petroleum Corporation (NYSE:APC) has some of the highest employee satisfaction rates among oil and gas companies. It ranks high on scales of job work/life balance and culture at work. It also has very favorable reviews for job security and advancement, compensation and benefits.