Oil and gas industry employers are facing significant skills shortages according to the Oil & Gas Global Salary Guide, produced by recruiting firms Hays Oil & Gas, and Oil and Gas Job Search.
The Salary Guide, which is based on data from 24,000 respondents, revealed 68 per cent of employers plan to increase headcount in 2014, exacerbating the already skill-short market and adding pressure to increase salaries to attract candidates.
Seventy-nine per cent of employers predict an upturn in salaries in the coming year as hiring managers vie for top talent. In the Middle East, over the last 12 months employers bolstered compensation packages with incentivised bonuses or attractive pension plans. Respondents indicated 37 per cent of employees are offered bonuses, and 30 per cent receive support towards housing.
In 2013, salaries in the UAE remained strong; along with employer’s confidence in the market as 77 per cent of hiring managers have a positive or very positive outlook on the oil and gas industry. Local average salaries have increased significantly, as much as 18 per cent in some areas, whereas salaries for imported talent have remained steady, resulting in overall uplift in average salaries of 0.8 per cent.
Gary Ward, Director Hays Oil and Gas comments: “We have seen strong business activity in 2013, and as planned projects come on-line, we expect the Middle East to be a hive of recruitment activity over the next year.”
For comparison, the industry globally has seen a decline of 1 per cent in salary levels from 2013. The slight reduction in growth of salaries can also be attributed to a market correction after a particularly buoyant two year period of increases within the industry. This is probably a necessary correction after two consecutive years of growth in salaries that have started to threaten the financial performance of some companies.
John Faraguna, Managing Director of Hays Oil & Gas comments: “Global salaries may have dropped slightly last year in line with the industry but what is important to note is that we are finding that confidence is steady to the industry and that demand for skilled workers continues to rise. However, one of the main issues threatening to upset confidence is the lack of skilled workers available to employers.
John continues: “More women and young people made up the respondents of the survey compared to last year, which is an indicator of the make-up the industry, a very positive sign. With these younger people entering the industry it’s important that employers tackle the skill shortages by training the younger workers and put in place succession plans before the older workers exit the industry along with their years of experience.”
Duncan Freer, Managing Director of Oil and Gas Job Search adds: “The long-term view is strong. Seventy per cent of employers globally plan to increase their headcount in 2014 and over 70 per cent of employers are positive to very positive about the outlook of the oil and gas industry.”
