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In a statement sent to Rigzone this week, O.C. Tanner revealed that its latest research shows “only 57 percent of oil and gas leaders take their employees into account when deciding to enact business-wide changes”.
The company also outlined in the statement that its 2024 Global Culture Report found that just under two thirds (65 percent) seek employee opinions as changes are rolled-out and that 58 percent of oil and gas employees believe that the organizational changes they have experienced were well-managed. It found that 13 percent felt they were poorly managed and that the remaining 29 percent were indifferent to how change was enacted, the statement revealed.
The statement noted that the report suggests that traditional change management practices are no longer fit for our evolving work environments. They also fail to involve employees in the planning, thereby underestimating and under-prioritizing the organization’s people, it added.
O.C. Tanner said in the statement that the report recommends that effective change management must first start with nurturing a culture where employees have high trust and feel appreciated and valued. Decentralizing the change management process so managers at all levels can be involved is also important, together with ensuring regular, transparent communications and that all employees have a voice, the company noted.
When employees have a voice in organizational changes, they are eight times more likely to have feelings of trust, are five times’ more likely to have a sense of community, and thriving at work is three times’ more likely, according to O.C. Tanner.
“Organizational changes can have far-reaching impacts on the workforce” Robert Ordever, the European Managing Director (MD) of O.C. Tanner, said in the statement.
“Regardless of whether these changes are strategic, structural, technological or people-centric, by not considering employees and seeking their feedback before rolling-out change, this is a recipe for disaster, potentially leading to widespread frustration, cynicism, and disengagement,” the MD added in the statement.
“It’s crucial that an organization’s people are the center of change strategies. This approach will not only remove friction from change management processes but will increase employee wellbeing and strengthen workplace culture,” Ordever continued.
“The truth is that no organizational change is going to be effective or lasting without the buy-in of employees. And the sooner leaders recognize this and ensure the organization’s people are always considered, the more successful any changes will be,” the O.C. Tanner MD went on to state.
Rigzone asked UK industry body Offshore Energies UK (OEUK), U.S. industry body the American Petroleum Institute (API), and the International Association of Oil & Gas Producers (IOGP) for comment on O.C. Tanner’s findings.
“This is a global survey encompassing many diverse business cultures, some of which may be less consultative than in Europe, where there is legislation in place regarding consultation of staff regarding certain organisational changes,” an OEUK spokesperson told Rigzone.
At the time of writing, Rigzone has not yet received a comment on the findings from the API or IOGP.
O.C. Tanner’s report gathered data and insights from more than 42,000 employees, leaders, HR practitioners, and executives from 27 countries worldwide, including 241 from the oil and gas sector, O.C. Tanner highlighted in its statement.
The company, which describes itself as the global leader in software and services that improve workplace culture through meaningful employee experiences, pointed out in the statement that its research, analytics, and education team used multiple research methods to support the Global Culture report, including interviews, focus groups, cross-sectional surveys, and a longitudinal survey.
To contact the author, email andreas.exarheas@rigzone.com
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