Overall salaries have decreased by 1.4 per cent, as a result of redundancies and a reduction in the use of often high-cost expat workers
In an effort to secure work or retain their current role, oil and gas workers are being flexible on salaries with 51 per cent of employee respondents saying they would consider a cut in salary to retain their current job
Forty-one per cent of oil and gas professionals said a company's reputation is the number one factor when evaluating a job, ranking above compensation (34%), career progression (15%) and benefits (10%).
Oil and gas employers predict modest growth in headcount during 2016, however, skills shortages and recruitment issues are looming due to the number of workers having left the industry during the downturn, according to the seventh annual Oil & Gas Global Salary Guide, produced by recruiting experts Hays Oil & Gas.
Compiled in November 2015, the Oil & Gas Global Salary Guide illustrates how the fall in oil prices has impacted the industry's workforce. Thirty-two per cent of survey respondents said they had been laid off or made redundant and 93 per cent of employers said they had made some level of headcount reductions over the past 12 months.
Seventy-two per cent of those surveyed, and who have been laid off or made redundant in the past year, are considering looking for a role outside of the industry. If workers begin to leave the industry this could cause a brain-drain of talent within the sector, potentially creating future talent pipeline challenges.
Twenty-two per cent feel that skills shortages will be the growing concern and if the market begins to improve during 2016, the increase in hiring could then place job seekers in a buying position, driving up salaries in turn as companies compete for sought after talent. This will make skills shortages among the industry's major concerns in the future, should the oil price start to rise again.
John Faraguna, Managing Director, Hays Oil & Gas, says, "The fall in oil prices is causing more challenges than initially meets the eye - it's not just about the fall in profitability and the reduction in the industry's workforce. Headcount losses and the resulting potential brain drain to the industry, coupled with the inevitable halt in hiring fresh talent, could lead to more acute future skills shortage."
For the majority of businesses effected by the downturn, the focus has been keeping headcount costs low in order to remain profitable. However, employers must consider how employer reputation can effect an organisation's ability to attract and retain top professionals in the industry. Forty-one per cent of oil and gas professionals said a company's reputation is the number one factor when evaluating a job, both for an internal move or a role with a new employer. Sixty per cent of respondents who have been laid off or made redundant said they did not receive any assistance from their previous employer in helping them secure a new role. Businesses that do assist recently laid off or redundant workers in seeking new employment, such as providing time off for interviews or being introduced to a recruiting firm, can improve their reputation.
"Supporting workers throughout the full work lifecycle, including exiting the business, will help preserve a good reputation, as well as help ensure that when market conditions improve, the employer brand is still attractive" says John Faraguna, Managing Director, Hays Oil & Gas. "With hiring plans low on the agenda for the foreseeable future, there is a storm gathering within the industry. A pause in hiring today could create an even greater skills shortage than that caused by the downturn of the mid-to-late 1980's. Employers should be looking at their training offering and implementing succession plans to retain current staff and build a reputation as a top employer to help attract candidates in the future".
Key findings in the United Arab Emirates
Thirty-eight per cent of employee respondents in the UAE say they would consider a cut in salary to retain their current job
Forty-three per cent of oil and gas professionals in the UAE said a company's reputation is the number one factor when evaluating a job, ranking above compensation (31%), career progression (15%) and benefits (11%).
Currently, 55 per cent of employers in the UAE said the main issue facing the industry is economic instability, however, 72 percent of employers feel confident about the oil and gas industry in 2016.
The number of employees in the UAE receiving benefits dropped by 4 per cent to 78 per cent in the UAE
The top four benefits received in the Middle East: Bonuses (37%), Health plan (36%), Home leave allowance/flights (35%), Car/transport/petrol (32%)
Year-on-year there are 9 per cent fewer expat workers in the UAE, a likely example of companies looking to reduce expat staffing costs.
Professional development is the third most important factor for employees when evaluating their role. Employers are responding to this need, as 22 per cent of employers invested in or upgraded training plans in the past 12 months and 24 per cent are using training as a way to upskill their current workforce.
Survey Summary
Disciplines covered - 28
Countries represented - 178
Respondents to the survey - 28,000
Respondents who are employers in the industry - 4,000
Download a free copy of the guide at www.oilandgasjobsearch.com/salary or request your copy at www.hays.com/oil-and-gas/SalaryGuide/index.htm
About Hays
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2015 the Group employed 9,023 staff operating from 240 offices in 33 countries across 20 specialisms. For the year ended 30 June 2015:
- the Group reported net fees of £764.2 million and operating profit (pre-exceptional items) of £164.1 million;
- the Group placed around 63,000 candidates into permanent jobs and around 200,000 people into temporary assignments;
- 23% of Group net fees were generated in Asia Pacific, 41% in Continental Europe & RoW (CERoW) and 36% in the United Kingdom & Ireland;
- the temporary placement business represented 58% of net fees and the permanent placement business represented 42% of net fees;
- Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
- the Group reported net fees of £724.9 million and operating profit (pre-exceptional items) of £140.3 million;
- the Group placed around 57,000 candidates into permanent jobs and around 212,000 people into temporary assignments;
- 24% of Group net fees were generated in Asia Pacific, 42% in Continental Europe & RoW (CERoW) and 34% in the United Kingdom & Ireland;
- the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
- Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA.
For further information about the survey, please contact:
Jonathan Beasley,
Group Communications Executive at Hays on +44 (0)20 7383 2266 or Jonathan.Beasley@hays.com
© Press Release 2016
