HR Strategies for the Mexican Oil and Gas Industry

Mexico's oil industry benefits from a robust workforce shaped by the sector's specialized nature, and significant progress has been made in cultivating a highly skilled local talent pool. Nonetheless, challenges remain in addressing generational, technological, and gender disparities. HR professionals are essential in navigating these challenges and ensuring the industry’s long-term success and sustainability.

HR professionals must prioritize building sustainable talent pipelines to attract and retain workers. However, challenges remain in Mexico, such as limited capital, the absence of labor laws specific to the oil industry, and the sector's traditional nature, which calls for more innovative thinking.  “We need to make the industry more appealing. At WTS Energy, we have partnered with schools to gauge their interest, shift our company culture, and better understand employee motivations,” says Lennart Rietveld, Regional Director for the Americas, WTS Energy. Rebeca Rodríguez, President, ARHIP, echoes concerns about the lack of tailored regulations. “Our association is working with a firm to conduct an analysis and present a legislative proposal to regulate the sector within the Federal Labor Law,” expressing her hope that this issue will soon be addressed.

Lennart added that another key challenge in retaining talent is the cyclical nature of oil projects, where workers are often hired on a temporary basis, making it easy for them to be drawn to other projects or industries. Emilse Barragán, Human Capital and Strategic Planning Director, Jaguar E&P, emphasizes that to retain talent despite these challenges, a strong value proposition is essential. 'It is not just about compensation; values and opportunities also play a crucial role.”

Experts say that investing in continuous professional development for existing employees is crucial, especially as technology has widened the generational gap. By offering training and certification programs, companies can help their workforce acquire new skills and stay updated with the latest industry trends. Rodríguez notes that there is now a trend of reverse training, where young talent teaches older generations how to improve efficiency and address the new priorities of today’s workforce. 

Barragán also emphasizes the importance of HR strategies today in empowering women in an industry that has traditionally been male-dominated. She explains that the shortage of women in the field is partly due to their hesitation to apply for jobs if they do not meet all the qualifications. Additionally, even when hired, women often face challenges in seeking and seizing opportunities. “At Jaguar, 29% of our workforce is female. We strive to ensure that at least one woman is included in our selection processes to encourage their role within the company. We want to provide opportunities that go beyond administrative roles, allowing them to engage in fieldwork as well. However, it is quite challenging,” she says. Rodríguez agreed that promoting women across all areas is challenging, as it was previously believed that fieldwork could not accommodate them. However, this perception has shifted, with projects now operating with 100% female crews. “It can be done with effort and awareness,” she states.

Another key aspect for the industry is the need to balance national and international talent, which requires a strategic approach. Rietveld explains that there are misconceptions about Mexico and its workforce, and it is the responsibility of large companies to destigmatize these issues. He notes that it was once believed that international individuals possessed greater expertise and leadership. “However, this is not the case, as there is a wealth of strong local talent. We need to promote local talent, which can be supported by international expertise, but should not be overshadowed by it,” he says.

Barragán explains that Jaguar serves as an interesting example of promoting the local workforce. Although it is 100% Mexican, the company initially had a significant number of foreign executives due to the limited experience available in Mexico. However, today, 90% of the team is national, with only 10% being international. "The future of our industry is rooted in this country, and it is our duty to nurture it by creating opportunities for local talent, women, and all generations. As the world evolves, it is our responsibility to adapt and lead the way."