Tech Firms Eye Oil’s Talent
Derek Sankey, Financial Post

Calgary, Alberta (October 31, 2007) -The oil and gas industry's bane could be a boon for another industry, at least on the job front. For years, Calgary's fledgling technology sector has fought an uphill battle against the dominant oil and gas companies for top talent. If the royalty hikes announced by the Alberta government last week translate into cutbacks and layoffs in the energy industry as predicted, Calgary's technology companies appear ready and more than willing to step in and scoop up top performers.

"[Technology companies] are very ready to start that conversation tomorrow if there is fallout," says Claudia Moore, president of Calgary technology consulting firm Material Insight. "If you're in oil and gas software, they're probably the first in line to benefit from any fallout."

The often overlooked, yet rapidly growing tech sector in Calgary has been refining creative perks and incentives to compete for top talent in the face of labour shortages and tough competition with large, multinational oil companies with deep pockets. This could just be the knock at the door the tech sector has been waiting for.

"When things start to squeeze in other markets, it's a great opportunity for us because it's precisely those top 10% or 20% of talent who are not going to be excited by being in a status quo maintenance environment," says Alice Reimer, vice-president of marketing for project management software developer Evoco Inc. in Calgary.

"We offer that upside that maybe the oil and gas industry can no longer offer the top tier," she adds.

Calgary tech companies have never been able to easily go head to head with energy giants on salary or even benefits, but the sector has worked hard to differentiate itself in other ways.

Mike Lake, executive vice-president at Entero Inc., an oil and gas software development firm, says a large portion of the company's 80 employees come from the energy industry. Yet the small company offers flexibility and strategic influence that is hard to match in the oilpatch.

"We've had people from oil and gas companies come work for us, then want to go back home to Newfoundland, and as [software] developers they can do that and still work for us," Mr. Lake says.

Flexible work arrangements and hours are just one of the sector's differentiators. "We tend to be growth companies and growth is related to an individual's ability to have a great impact on the organization," he says. "There is definitely an opportunity for talented people to float their boat a little bit faster within the company."

While Entero depends on energy companies for the majority of its business, he says there is potential to capture employees if there are layoffs.

Demand for Entero's products may even spike, since its software is aimed at cutting costs and improving productivity.

"Who knows if this is lay-off time or not, but I think there's a lot of slack that needs to be pulled up in terms of empty positions within oil and gas companies to begin with," Mr. Lake says.

Other industries that have been clamouring for workers may also be quietly watching on the sidelines, ready to pounce if talent becomes available. The full impact from the Alberta government's decision to boost royalty rates, is not yet clear as energy companies crunch the numbers.

Either way, the tech community in Calgary, pictured, is watching anxiously. "It's pretty hard to poach someone out of an oil company," says Denise Richards, a technology recruiter and partner at Meritas Recruiting. "But if they're laid off, fair game."

Tech companies stand out because of their unique structure. Material Insight surveyed 30 technology firms in Calgary and found 50% provide stock options or share purchase plans, while 60% distribute personal bonuses and 35% give corporate bonuses.

It's the day-to-day effect your work has that really sets the industry apart as employers, Ms. Moore says.

"Tech is very often less about nine-to-five and more about being accountable for a contribution to a product or to penetrating a market. And you have the freedom to make it happen," she says.

It is precisely this uniqueness that Evoco's Ms. Reimer says could prove highly attractive to laid-off oilpatch talent.

"You could go be a mid-level person in a really large machine or you could come here and be a pretty big wheel and have a tremendous opportunity.

"That is really attractive for a lot of people."

Looking for a creative and team-oriented working environment? Click here for current job opportunities at Entero.

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