Gearing up for the employment wave, Part 2

Dominic Simpson, Rigzone, UK, reviews the developments in the UK oil and gas industry and the challenges ahead for the industry.

In the immediate term, it bodes well for those already working in the sector, Rigzone’s 2012 salary data indicating that compensation in Europe saw the largest year on year rise in the industry last year, up an effective 7% over 2011. Although as new entrants join the oil and gas sector, average compensation levels can fall as the results in North America witness.

However, it is equally clear from this data that the anticipated boom times are yet to touch the wider workforce. In March this year, survey findings were released that showed 51% of UK based respondents felt it would be hard to find a favourable new job in 2013. Likewise the annual end of year surge in calls from recruiters or surge in colleagues voluntarily quitting their positions were notable by their absence - head-hunter calls received in the second half of the year broadly mirroring the first. Whilst more than three in four (77%) of UK based oil and gas professionals had received at least one call from a recruiter in the previous six months, nearly half (47%) said the level of inquiries was the same as the previous six months. Similarly, 45% said there was no change in the voluntary departure levels in their department over same period, with seven per cent saying it was lower.

And interestingly for those contemplating a move in 2013, financial considerations were not the number one reason given for considering a switch – they were a distant fourth behind ‘better career opportunities elsewhere’, ‘the opportunity for a better work/life balance’, and ‘frustrated for lack of recognition for accomplishments.’ This poses a challenge for recruiters whose default tactic of choice typically has been simply to offer more money - improved salary/billing rates being the most often offered carrot by recruiters along with ‘better career opportunities’ according to the UK respondents of Rigzone’s 2013 retention survey in which some 6500 respondents took part from around the world.

Coupled with the above the image of decommissioning and the North Sea as an area of opportunity for the next generation of professionals coming into the industry. When some 8000 industry professionals were asked to name the location of choice in which to be based - neither Aberdeen nor any European location made it into the top 10. Perhaps not surprisingly, Dubai emerged as the most desired location, with North America’s Calgary and Denver coming in as the second and third most popular cities in which to work thanks to the work-life balances both provide. Each is able to offer easy access to mountain and modern-city lifestyles while being close to major conventional and unconventional oil and gas reserves with a broad mix of majors and independents located in each.

Positions four through 10 on the list were dominated by Asia with Singapore, Jakarta, Mumbai and Kuala Lumpur ranking fourth, fifth, eighth and ninth respectively. Western European employment hubs in the sector such as Aberdeen or Stavanger – or fast growing Eastern European centres such as Baku, Azerbaijan, failed to make it onto the list. Egypt’s Cairo grabbed the tenth spot.

In short, the North Sea and the operators within it are competing in a global market for both the current and next generation of top talent. As a result, companies will have to work hard on both retaining its existing teams that hold the relevant experience/skills whilst addressing the double agenda of recruiting for the anticipated uplift and dealing with the significant numbers of North Sea experienced professionals who grew up in the industry during the North Sea’s boom years and who are now coming to retirement.

It is perhaps no coincidence that a renewed emphasis is being put on graduate programmes by the majors in the UK. Likewise oil companies are beginning to use technology in a far more developed way to reach out to potential candidates globally through the use of virtual events to complement their existing activities. And the winners in the drive to recruit new talent into the sector will be those firms that are able to demonstrate to graduates that from an early stage they will be involved in complex problems and given real responsibility. Likewise, exploration firms have to be able to demonstrate they are good corporate citizens.

Part 3 of this article is available here.

Part 1 of this article is available here.

Adapted by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/exploration/15102013/gearing_up_for_the_employment_wave_part_2/