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.
Chevron Corporation (NYSE:CVX) spent a huge amount of money to send its Angolan workers to Louisiana to train them for offshore jobs. The idea was to help Angolan workers understand how natural-gas turbines work, a facility that is best available in the U.S. Though Chevron makes a lot of money in Angola, it still needs to train Angolan workers in the U.S.
Chevron Corporation (NYSE:CVX) places a lot of importance on training its employees. Apart from its on-the-job-training, it also has a Performance Management Process (PMP) in place, which helps employees to reach their professional goals. On-the-job education and career pathways have helped Chevron employees to learn new languages like Arabic and French, which are very important in areas where Chevron employees work.
Chevron Corporation (NYSE:CVX) was ranked one of the 50 Best Places to Work by the Glassdoor for the second consecutive year this year. With one of the company’s punch lines reading “We invest in people”, Chevron surely knows the importance of investing time, money and resources in training its employees.
Which of these three stocks is the best to invest?
Training employees in the U.S., whether American or foreign, has helped ExxonMobil, Anadarko Petroleum Corporation (NYSE:APC) and Chevron Corporation (NYSE:CVX) to boost productivity, skills and employee satisfaction. All these factors are directly and positively correlated with increased revenue. While oil and gas companies are thought of as the pinnacle of capitalist institutions, they are surprisingly more concerned about employee welfare and education than other sectors.
Exxon Mobil Corporation (NYSE:XOM) has ensured that its productivity will be increased thanks to highly qualified local employees who can travel around the world with North American-standard education and training. Training employees will help companies like ExxonMobil, Anadarko Petroleum Corporation (NYSE:APC) and Chevron Corporation (NYSE:CVX) to retain employees and avoid attrition, which is very common.
Other than that, each company has its own way of drilling and exploring, and conducting its oil and gas business. When any of these oil companies trains its employees, it is basically ensuring uniform product quality across locations, no matter where the oil and gas is being drilled and produced.
Exxon Mobil, Anadarko Petroleum Corporation (NYSE:APC) and Chevron Corporation (NYSE:CVX) form the cream of oil and gas stocks. All three companies have invested heavily in employee training and education, which ensures that they do not have to experience problems related to attrition, employee dissatisfaction, strikes and lack of productivity.
Investing in any of these three will likely be a safe and secure investment that will bring returns in the long term. At a recent price of $91.12, Exxon Mobil Corporation (NYSE:XOM) is affordable when compared with Chevron, which costs almost $123 based on recent prices. However, Chevron Corporation (NYSE:CVX) is one of the most lucrative oil and gas stocks to invest in at the moment. Anadarko Petroleum Corporation (NYSE:APC) trades at about $88 and is also one of the most stable oil and gas stocks at the moment.
Jaiyant Cavale has no position in any stocks mentioned. The Motley Fool recommends Chevron Corporation (NYSE:CVX).
The article ExxonMobil Secures Its Future With a Cool Half Mil originally appeared on Fool.com.
Jaiyant is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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