Company Background
Chevron Corporation is a multinational oil and gas company based in San Ramon, California. It is the United States’ second-most diversified energy firm. Chevron produces and distributes a variety of high-quality refined commodities through its affiliates and subsidiaries, including diesel, gasoline, marine and aviation fuels, premium base oil, finished lubricants, and petroleum-based additives. Given its size, the company employs a large staff spread across the diverse areas in which it operates, both locally and internationally.
Workforce Analytics
Chevron generates a vast amount of human resources (HR) data, which is collected and stored in a repository. The company viewed this as an advantage and decided to use the data to change the way it recruited new hires from both within and outside the organization. Chevron had several complex and redundant systems; it required a new method of identifying suitable personnel. Chevron used Eightfold.ai’s artificial intelligence (AI) capabilities in conjunction with its Workday Human Capital Management (HCM) solution to create an interactive and leading performance culture in managing its employees (Albinus, 2021a). This was motivated by the need to attract, develop, and utilize the appropriate talent in the most suitable place and at the proper moment, which also required the corporation to align its digital solutions with its overall goal.
Initially, the company faced hurdles due to the complexity of the technology required to gather and extract information from data. Chevron sought to lay the groundwork before implementing critical technologies such as a talent intelligence platform, which would allow it to get to know the skills of its personnel. It has been able to use the data to source and recruit talent internally much more quickly and efficiently.
Chevron’s recruitment staff can use AI to examine an applicant’s resume and determine whether they satisfy the exact job requirements and are the perfect fit for the role (Albinus, 2021b). This is accomplished by comparing the job applicant’s skill sets with the position’s desired skill sets. At the same time, employees can have a better grasp of how their abilities fit certain occupations.
If I had been in charge of the company’s human resources and workforce management, I would have taken the same approach. Chevron’s strategy has been successful, as it transformed the traditional hiring managers into career consultants thanks to the power of cutting-edge AI, eliminating the need to invest as much time ensuring that candidates are suitable. It has access to a range of algorithms that offer correlations, deductions, and connections to help pair the right applicant with the appropriate position (Albinus, 2021a). The algorithm may, for example, propose that the applicant with Java and Python programming skills learn a new programming language.
Furthermore, it would be captivating to use the data to examine the problem of employee turnover, specifically why employees leave the company and how it might adjust to meet their demands. Companies in the oil and gas sector are currently dealing with a high quit and turnover rate, as more people are departing while open positions remain. The organization’s data can be analyzed to identify employees who are about to quit or are not engaged in their roles and may be better suited to other roles within the company. Improved data analysis, combined with HR systems, can also have a significant impact on the company’s workforce, particularly in terms of diversity, equity, and inclusion (DEI) (Albinus, 2021b). The data could help address DEI problems by providing a more transparent method of delivering diverse opportunities in which people are evaluated.
Impact of Technology
Chevron has used technology to enhance its operations and continues to invest in advanced technologies by seeking out new business solutions and unconventional approaches. For instance, in 2018, Chevron deployed over 20 new technologies. CraneTagz, a unique digital safeguard for crane operations, is one example of a successful technology developed by Chevron in collaboration with Accenture. The technology received the 2019 Environmental Health and Safety (EHS) Most Innovative Award in Oil & Gas at the annual EHS Innovation Awards (Chevron, 2023c). The technology raises employees’ consciousness regarding heavy equipment, such as cranes and forklift operations, by sending visual and audible alarms to operators and staff who come too near to potential hazards.
CraneTagz uses ultra-wideband tracking (UWB) technology to pinpoint the position of somebody wearing a specific tag and is accurate within six inches. Telemetry sensors help to identify the position of crane loads, ensuring safe working distances. CraneTagz demonstrates the company’s efforts to increase workplace safety by combining innovative technologies that had not been used in the industry before.
Another example of technology is a low-code technique created by Shing, a Chevron chemical engineer with no coding skills. The solution initially uses AI to automate the time-consuming process of extracting, categorizing, and recording data, followed by an app that allows users to quickly review the data and rectify any concerns. It has saved significant time and made the organization’s processes much more sustainable.
Historically, automation focused on labor-intensive jobs performed with large equipment and required a considerable capital investment and a long return on investment. However, process automation now complements human expertise by enabling better and faster judgments. Initially, Chevron’s technical team required significant human effort for verification processes due to the high risks involved and the need to avoid failure (Chevron, 2023c). With automation, the teams can now validate their basic requirements in advance, allowing them to devote more of their limited time to more sophisticated or fringe situations requiring innovation, compassion, and distinctive human capabilities.
Given the accomplishments, I would implement technology and automation throughout Chevron’s workforce in a similar manner. However, I would make every effort to manage the risks that come with leadership. While stakeholders see the intrinsic value of automation, it is often met with opposition from management and employees, which risks its implementation.
Leaders must motivate their teams by showing how automation will provide outputs, which people will review to identify areas for development and enhancement (Nunez & Axelrod, 2023). As Chevron strives to automate many of its workflow systems, such as quality assurances, the workforce finds it difficult to abandon traditional working practices. The employees need to embrace the opportunities technology offers and not see it as a threat to their jobs.
Today, technology and automation aim to augment job performance and move people closer to a world of abundant opportunities by restructuring processes and cutting the need for certain manual tasks. The developments create new opportunities and demand for expertise in particular fields, such as data analysis, robotics, and artificial intelligence (AI). As a result, the total staff number may not diminish, but rather experience a metamorphosis characterized by a shift in the sorts of responsibilities and expertise required (Nunez & Axelrod, 2023). Workers in the oil and gas business may need to evolve and enhance their skills to remain relevant in an increasingly technologically driven workplace, as they monitor other pertinent concerns.
Business Continuity/Disaster Planning
Chevron has prioritized the health and well-being of its global labor force, particularly in times of crisis. The company made an effort to shield its employees by connecting them with essential resources. It aggressively addressed emerging challenges and provided support in line with procedures established by the World Health Organization (WHO), the Centers for Disease Control and Prevention (CDC), and local public health agencies. COVID-19 was characterized by stigma directed at specific races, demographics, and countries, as well as people from those countries.
There was also a lot of misinformation, which spread as swiftly as the infection, which Chevron identified promptly and developed learning resources to combat the stigma and discrimination (Chevron, 2023a). Chevron aspired to give its employees timely and accurate information by directing them to reliable sources. As the issue was being managed, a plan was devised for its employees to return to work in stages, which entailed distributing masks and gloves and conducting pre-entry medical and thermal examinations. The working environment was modified to enable physical distancing, it provided soap, water, sanitized wipes and gel, and conducted regular and thorough disinfection of all facilities.
There was no wrong or correct method to handle the pandemic as it was the company’s first experience in battling sickness on such a massive scale. There was fresh research and lessons learned almost every day, and management had to synthesize and manage the development of educational and awareness materials for the workforce. It also sought to ensure that the material was adaptable since, as an example, people in Africa perceived the pandemic differently than those in Asia (Chevron, 2023a).
However, I would have favored an alternative method of providing the material to minimize contact between people. The corporation elected to employ town hall meetings, which entailed individuals gathering together, and this may have raised the chances of contracting the deadly virus. It would have been preferable to send such material using electronic means, such as emails, video conferencing, or through traditional media, such as television to reduce contact between people.
The advent of a new variety, which may be more widespread and dangerous, would not pose a significant risk to the company. When COVID-19 hit, no country or business had a plan for how to respond. However, Chevron was prepared for such a disaster based on its experiences and lessons learned during the acquired immune deficiency syndrome (AIDS) pandemic about four decades ago.
The disease was prevalent in the California Bay Area, which houses the company’s headquarters. Chevron felt compelled to take action when some of its employees, their families, and colleagues perished due to the sickness. Since then, the corporation has created policies, programs, and collaborations to increase access to health care in the areas where it operates and is ready to activate a corporate pandemic response team.
Chevron has already discovered that if the population is decimated by an infectious sickness, everything crumbles. It is well-prepared to work hard and quickly to ensure that another crisis is handled properly and that its people and operations survive. The corporation recognizes that its success is closely linked to the health and well-being of the communities in which it operates. Chevron’s inventiveness, creativity, and leadership enable it to endure any crisis and build a brighter future. The company is continuing to take steps to protect its financial basis and long-term value, such as leveraging AI technologies and data analytics to optimize logistics, boost efficiencies, and reduce costs.
Embracing HR Trends
Oil and gas companies operate in an uncertain, high-risk environment. One of the main problems facing the sector has been a consistent drop in the available personnel, especially over the last decade. The current workforce is aging, and economic changes, combined with harsh working conditions in remote areas, have pushed some workers to quit the industry and pursue more stable professions elsewhere.
The situation is exacerbated by rising global demand for crude oil. Despite the high level of profitability and annual earnings, the global exploration and extraction of oil and gas industry is struggling to attract new and younger people. Recognizing the energy industry’s changing landscape, Chevron seeks many people to help it meet future global energy needs. In this regard, the corporation has invested in technology and workplace automation.
The approach has been a game-changer in terms of potential since it reduces bias in recruitment by prioritizing individuals’ talents and competence over their names or origins. It contributes to the development of a more diversified and robust talent pool from which to select. It helps eliminate routine errors, allowing workers to concentrate on areas where they can contribute uniquely (Albinus, 2021a). This shows how the employees can add value, and represents a form of engineering happiness that entails moving to a preferred state.
Chevron is likewise devoted to skill-based hiring and is constantly seeking innovative ways to recruit. In recognition of its efforts, the company has been named one of the top 50 best places to work for people without college degrees. In the United States, 75% of new job openings require a bachelor’s degree, yet only 40% of eligible applicants hold one (Chevron, 2023b). As a result, workers from nontraditional backgrounds who did not attend or complete college face an invisible hurdle or paper ceiling at every turn.
There is a lot of expertise all around the place from people across all backgrounds, and the organization has offered possibilities to train them. Chevron works with Opportunity@Work to identify and recruit potential candidates through Skilled Through Alternative Routes (STARS) (Chevron, 2023b). The individuals are sourced from community colleges, and through certifications, workforce apprenticeships, military service, on-the-job training, and other unconventional means. Chevron has teamed up with the American Petroleum Institute (API) and the Greater Houston Partnership to launch a skills-based campaign to attract new, diverse entry-level recruits. It also participates in the Business Roundtable Multiple Pathways Initiative to help improve its hiring and talent management procedures by emphasizing the value of abilities over credentials.
To address this challenge, oil and gas businesses must focus on attracting and retaining the next wave of workers through a mix of new techniques. They may need to create effective onboarding and retention initiatives, such as intensive mentoring and training programs that promote performance and safety. Workers from other professions can apply their expertise to the oil and gas business through systematic on-the-job training.
It is vital to note that employees with 12 months or less of experience are at higher risk of injury (Albinus, 2021b). Safety rules should limit workplace dangers, and employers should be held liable for hazardous working conditions. Strategies for increasing marginalized groups’ participation in the transition to renewable energy must also be undertaken to promote equitable access and justice.
References
Albinus, P. (2021a). How data is driving the exploding internal talent marketplace. HR Executive.
Albinus, P. (2021b). How Chevron drilled into its HR data to tap new talent. HR Executive.
‌‌Chevron (2023a). HIV Response yielded lessons for COVID-19.
Chevron (2023b). No degree? No problem. Here’s how we’re fueling a stronger talent pipeline.
Chevron (2023c). Low-code drives high output for chevron’s citizen developers.
Nunez, C.B. & Axelrod, J. (2023). Moving from uncertainty to opportunity for oil and gas workers. www.nrdc.org.