Hiring and Retention: Everyone’s Challenge

While hiring and talent acquisition and retention have long been issues across all sectors of the American economy, perhaps nowhere do those issues pose such unique challenges as are found in the Permian Basin. And yet these are challenges that have been answered with innovation and energy. Considerable effort has been made over the years to coalesce a qualified, diverse workforce, summoned and developed within the Basin and from outside it as well. While there will never be a slackening of the need for talented, willing individuals to work one of the most challenging and rewarding jobs and careers one can have, these times pose what might be a peak interval not just for those seeking work but for those offering it.

As we move into 2025, the oil and gas industry in the Permian Basin continues to face a dynamic labor market. Hiring and retention remain critical areas for employers, as the region sees a shift in the workforce and an increasing demand for skilled workers. To maintain productivity and competitiveness, companies must adapt to changing trends, address persistent challenges, and leverage innovative solutions. We will explore how hiring and retention in the Permian Basin oil and gas industry will evolve in the coming year and beyond, focusing on key factors impacting the workforce landscape.

 

The Talent Gap and Rising Costs

One of the most pressing challenges for Permian Basin employers is addressing the persistent talent gap, which has widened in recent years. Mel Mosier, HR/HSE Manager at BP Supply, Inc., and incoming President of PBSHRM (Permian Basin Society for Human Resource Management) for 2025, has observed that the region continues to experience an influx of underqualified candidates applying for specialized roles. Meanwhile, overqualified candidates are hesitant to apply due to perceived misalignments in work and compensation. This challenge has intensified in 2024, even as rising housing and living costs in Midland and Odessa deter potential candidates from relocating to the area.

The Texas labor market has remained robust, with the state’s civilian labor force reaching a new record high of 15.5 million in November 2024, according to the Texas Workforce Commission. Meanwhile, Midland County continues to have the lowest unemployment rate in the state, at just 2.8 percent, a mark that underscores the region’s strong labor market. The competition for talent is fierce, and companies must find innovative ways to attract and retain skilled workers.

The Need for Skilled Workers

In the Permian Basin, skilled positions, especially in the oil and gas sector, remain in high demand. According to Willie Taylor, CEO of Workforce Solutions Permian Basin, there are over 16,000 employers in the oil and gas services sector alone. Many of these employers face a shortage of technical expertise in fields such as petroleum, electrical, and mechanical engineering. Taylor also notes that while the Permian Basin has a pool of “homegrown” talent, the region is not producing skilled workers fast enough to meet demand.

In response to this, some companies are shifting their focus toward upskilling local talent. Mel Mosier highlights how HR leaders in the region are working with educational institutions to provide training and development programs that help fill skill gaps. This approach not only addresses the immediate workforce shortage but also ensures that local workers are equipped with the skills necessary for long-term success.

Alyssa Harding, Senior Manager at OmniForce Solutions, a workforce solutions leader in the Permian Basin, emphasizes the need for creating clear pathways for both entry-level and skilled workers. She believes that focusing on developing and promoting within the workforce will be key to solving the ongoing labor shortage. Harding adds that creating training programs that align with the evolving needs of the energy sector is vital for preparing employees for the future of energy production.

 

Addressing Housing and Cost-of-Living Challenges

As employers struggle to fill roles, one of the major obstacles to recruitment and retention remains the high cost of living in the Permian Basin. Average rent in Midland has reached $1,600, while in Odessa, the average is $1,500, compared to $675 in Lubbock. These skyrocketing housing costs, combined with inflation, make it increasingly difficult for employees to afford living in the area, leading many to seek opportunities elsewhere.

This challenge has prompted employers to rethink their strategies. One solution that has gained traction is the use of “man camps,” temporary housing units in areas like Reeves and Pecos counties. While this provides immediate relief, it is a short-term solution to a much larger issue. Companies, along with local stakeholders, are beginning to explore ways to address the housing shortage by investing in infrastructure and working with local governments to ensure affordable housing development.

Ben Hardesty, an oilfield veteran and now West Texas Territory Manager of Southwest Sales, sees the promise of change. “My intel and intuition is that West Texas is poised to grow significantly over the next few years given the unbelievably slow last two years in new residential construction. I suspect we will see explosive growth in single family home construction that centers around the Permian as well as a surge in multifamily and hotel projects.” As Southwest Sales is a leader in the new residential construction industry, the future looks very promising.

For those who can’t or haven’t made their way to the Permian yet, Alyssa Harding also points out that offering relocation incentives and remote work opportunities for roles that don’t require physical presence in the field may help alleviate some of the strain. While oil and gas companies in the Permian Basin continue to focus on local talent, these alternative solutions could provide relief for key roles where talent is scarce.

Innovations and Strategies for Retention

In 2025, retention strategies will shift toward focusing on long-term career development and work-life balance. With many workers leaving the Permian Basin for industries offering more stability and higher wages, companies must go beyond simply offering competitive salaries to retain talent. Mosier explains that companies are increasingly investing in structured onboarding programs, mentorship, and leadership development to improve employee engagement and job satisfaction. As she explains: “Retention rates in the Permian Basin remain volatile, especially in entry-level and mid-level positions. If people can leave for a higher paying role they will, regardless of if they truly love the company they work for. They will leave quicker if the management team is less than stellar as well. But if it’s a dollar more in pay, they will leave due to the cost of living.” There will always be an economic pull to one’s decisions, but the future reward and payoff are worth it to the ones that do stay.

Internal mobility, which is expected to dominate hiring strategies in 2025, will play a critical role in retention. According to an article from Inc. magazine, internal promotions reduce turnover by offering employees opportunities for growth within their current organization. Companies that prioritize internal mobility can foster loyalty and build stronger leadership pipelines. For example, employees who are given opportunities to move into new roles are 40 percent more likely to stay with their employer for at least three years. This approach can help oil and gas companies in the Permian Basin retain skilled workers while providing them with opportunities to expand their expertise and advance in their careers.

Harding notes that fostering diversity and inclusion in retention efforts can also improve employee engagement. By promoting an inclusive culture where employees feel valued and respected, companies can increase retention rates in 2025. Everything is being done to refine the methods for desired outcomes. As she notes, “At OmniForce, we share this philosophy and emphasize the importance of understanding the reasons behind hiring outcomes. We track rejection reasons at every stage of the recruiting process—whether at the initial connection, internal interview, client interview, offer stage, or onboarding. By analyzing this data, we continually refine our processes, improve the talent search, and enhance retention strategies.”

It is obvious that employers are getting smarter [about] the long-term value proposition of hiring and retention more at the beginning phase of the process. “Retention has always been a challenge, but the approach to addressing it has evolved significantly. Companies are recognizing that retention starts long before an employee’s first day—it begins with strategic hiring decisions and continues through effective onboarding and training programs. These efforts help new employees feel supported, equipped to succeed, and aligned with the company’s goals, leading to lower turnover and higher productivity.” observes Alyssa Harding.

The Role of Technology and AI

The integration of technology, particularly artificial intelligence (AI), is also transforming recruitment efforts in the Permian Basin. Mosier notes that AI-driven platforms are being used to match candidates more effectively with the right roles, improving both the speed and quality of hiring. Additionally, advancements in technologies like LNG and carbon capture are opening up new opportunities for employees in the energy sector, creating pathways for growth in emerging industries.

A growing number of roles can also be handled remotely due to high-speed internet facilitating the opportunity for “oilfield jobs” away from the Permian. Streamline Innovations operates carbon capture units for a growing number of customers in the Basin and maintains a yard and a field operations crew in West Texas and eastern New Mexico. The Operations Control Room, however, is in San Antonio. As seasoned control room operator Daniel Corral states plainly, “I don’t wear steel toes anymore, but I still have an oilfield job.” While there will always be a need for a lease operator and a sand hauler truck driver, this prospect highlights the opportunities that evolving technology offers the “oilfield worker of the future.”

As the workforce evolves, it is clear that companies must embrace technological solutions to remain competitive not just with other oil and gas companies, but with every enterprise that is leveraging technology. In other words: everyone else. To stay competitive, companies may need to use predictive analytics to forecast hiring needs and incorporate new technologies into recruitment processes. By doing so, oil and gas companies in the Permian Basin can reduce hiring costs and ensure they are attracting the right talent for the right roles.

Looking Ahead: The 2025 Workforce Landscape

As we move deeper into 2025, the Permian Basin oil and gas industry will continue to adapt to the challenges and opportunities that lie ahead. While the region’s talent shortage and high cost of living remain significant hurdles, companies are increasingly turning to innovative solutions like AI, remote work, internal mobility, and upskilling programs to address these issues. By prioritizing retention, investing in local talent, and embracing new technologies, employers can create a sustainable and resilient workforce ready to meet the demands of the future. This year will continue to be a year of refinement of strategies, but forces are at work for an even better 2026.

For HR and recruitment leaders like Mel Mosier and Alyssa Harding and organizations such as Workforce Solutions Permian Basin, with leaders such as Willie Taylor, the focus will be on developing strategies that support employee growth, foster loyalty, and create a more stable and sustainable workforce in the long term. The key to success will be a commitment by Permian Basin employers to adaptability, innovation, and building a workforce that is prepared for both today’s challenges and tomorrow’s opportunities.

 

Christian Lombardini, who works in the oilfield, is also an author, father, and entrepreneur. He’s founder and host of the Oil Field Leader Podcast. Christian shares insights and content on LinkedIn.