Workforce Survey h1 2014

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Transcript of Workforce Survey h1 2014

  • 2014 January - June

    W ORKFORCESURVEY

    TH

    E PR

    EMIE

    R G

    LOB

    AL O

    IL

    & GA

    S WORKFORCE SURVEY 2014

    Q1

  • Introduction 1

    Survey Findings 2

    Summary Overview 6

    Africa 7

    Americas 9

    Asia Pacific 11

    Australasia 13

    Europe 15

    Middle East 17

    Industry View 19

    Air Energi Overview 20

    OilCareers Overview 21

    Disclaimer: The Air Energi, OilCareers.com H1 Workforce Survey 2014 is representative of an added value service to clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey report is interpretive and indicative not conclusive. Therefore information should be used as a guideline only.

    Contents

  • Introduction

    www.airenergi.com 1 Air Energi 2013

    Introduction from Mark Guest

    At OilCareers.com, we are delighted to introduce the first new look Global Workforce Survey for 2014 in partnership with Air Energi. Before we get to the findings I would like to thank the industry professionals who took the time to participate.

    Looking forward, 2014 is set to be another year of high activity across all the main producing regions as global demand continues to increase.

    This will have a big impact on the industrys jobs market, presenting opportunity and challenge in equal measure for the sector in 2014.

    Of course the skills gap remains a major issue facing the industry in 2014, with retention, education and local content initiatives likely to be major areas of focus for companies looking to recruit.

    To echo the views of OPITO CEO David Doig, 2014 must be the year where we begin to collaborate in our efforts to curb the skills gap and make a conscious effort to retrieve the situation before it becomes too late. Something we can ill afford if we are to continue to meet the worlds energy demands.

    As the worlds largest online dedicated oil and gas jobs board, our objective is to provide our candidates with access to a variety of positions spanning the entire oil and gas supply chain. With more than 24,000 new candidate registrations per month and 930,000+ searchable CVs, we in turn help recruiters and organisations in their continued quest to source the best solutions.

    Introduction from Duncan Gregson

    With increased project activity anticipated in many regions of the world, 2014 is set to be another exciting year of growth and development for the oil and gas industry.

    Professionals from across the supply chain expect to see salaries and contractor rates rise as demand increases. At the same time, it is clear that the impact of people-related risk on projects is also on the rise.

    People-related risk is having a tangible impact in the form of budget and schedule overruns whether in the form of increasing labour costs or difficulties with retention, challenges with global mobility and compliance, or the shrinking pool of talent as cuts in training budgets and retirement rates begin to bite.

    Certainly, this is the overarching theme to emerge from the findings of the H1 2014 Global Workforce Survey, and is a primary consideration shaping Air Energis strategy for delivering a total personnel solution at any scale, at any point in the project lifecycle, and at any location.

    On behalf of Air Energi, I would like to take this opportunity to thank everybody that has participated in this survey for their valuable contributions, with special thanks going to David Doig, Group CEO at OPITO, for sharing his thoughts on the collective action needed to ensure our industry retains its position as the most dynamic in the world.

    www.airenergi.com - www.oilcareers.com1 Air Energi/OilCareers.com 2014

  • Welcome to the H1 2014 Global Workforce Survey, prepared by Air Energi and OilCareers.com. With more than 500 industry professionals participating and representing every region and type of organisation across the supply chain including EPC (engineering, procurement and construction) and project management contractor (PMC) firms, sub-contractors and energy companies the aims of the Global Workforce Survey are to:

    Highlight the people-focused issues oil and gas companies will face in 2014 Raise awareness of people-related risk in the oil and gas industry and its impact on projects Provide an overview of pay rates for contractors across the industry

    Key findings

    Half of respondents expect both permanent and contract hiring activity levels to increase in 2014, and more than half (58%) expect rates and salaries to rise Skills shortages were identified by 44% of respondents as the biggest threat to the oil and gas industry currently, followed by economic instability (28%), capital costs and visa / immigration issues (both 9%) Engineering was by far the most sought after discipline (58%), followed by project managerment (22%) and drilling (9%) An overwhelming majority of respondents (80%) felt that the skills shortage is real, based on their experience of filling roles in their organisation over the last 12 months

    Survey Findings

    www.airenergi.com - www.oilcareers.com2

    Hiring activity, rates and salaries

    The oil and gas industry is powered by highly mobile, career-oriented people. Experienced professionals are extremely sought after, highly remunerated, with excellent benefits packages and training programmes available to them. There has been no change in the way these professionals are treated by the major international oil companies (IOCs) throughout the years.

    Increased project activity is anticipated in many regions of the world, driven by shale oil and gas in the USA, oil and gas projects in the Middle East, and the gas

    projects in Australia. Many of the worlds leading drilling companies are looking to increase their fleets to meet global demand.

    According to the results of the Global Workforce Survey, engineers are highly sought after, with 58% of respondents identifying this as the professional role most in demand at their organisation. This was followed by Project Manager (22%), Drilling (9%), Contract Administrator

    (6%) and Geologist (5%).But with demand for talent continuing to outstrip supply in verticals such as subsea, shale, LNG, and downstream, hiring activity and pay rates are on the rise: 48% of survey participants expect their organisations hiring activity levels for both permanent and contract positions to increase in 2014. Only 12% anticipate a decrease in permanent hiring activity, while 11% expect a drop in contract hires. More than half of participants (58%) believe that rates and salaries will rise this year, with 36% expecting them to stay the same and just 6% anticipating a fall.

    The rise in rates and salaries means that retention is an issue. In the Middle East, increased competition in the EPC / PMC market from Asia in particular and the

    More than half of participants (58%) believe that rates and salaries will

    rise this year

    Air Energi/OilCareers.com 2014

  • tight margins for such work has presented an issue for companies both in terms of attracting new talent, and retaining existing talent. Although it is difficult to place a figure on the impact that attrition has on a project, this is perhaps becoming one of the key drivers in budgetary over-expenditure and project delays.

    Meanwhile, a growing number of experienced professionals are moving from IOCs and national oil companies (NOCs) to smaller, more agile players that have lower overheads and can therefore offer higher salaries. They are also relocating to other regions where better rates and salaries are available. For example, while Australasia is a key player in the global LNG market, there is the added pressure on companies to focus their retention strategies, with Australia being seen as a key talent pool of highly-skilled LNG professionals for future developments in North America and East Africa.

    Training and talent

    Retention is also becoming more challenging at organisations serving IOCs and NOCs. Mid-tier service companies and EPCs have traditionally found it difficult to attract professionals given that IOCs and NOCs are able to offer more attractive opportunities for training and career development. Although they too have training programmes in place, service companies and EPCs continue to see a natural migration of talent to IOCs and NOCs over time.

    Of the more than 550 industry professionals participating in the survey, the majority (75%) confirmed that their organisation offered internal training, although 29% said that there was not a full selection of training available. The other main challenges in employee training were identified as having a lack of quality candidates (28%), a lack of budget (24%), and a lack of skilled trainers (19%).

    Nevertheless, IOCs and NOCs expect their suppliers to maintain a certain level of service quality, placing the onus on service companies and EPCs to maintain their

    www.airenergi.com - www.oilcareers.com3

    levels of experienced resources and ensure a healthy flow of new talent. Although 59% of survey respondents felt that their companys training programme was capable of dealing with the anticipated increase in new recruits entering the industry, the majority (69%) said they do not believe the education system does enough to inform and advise young people on careers in oil and gas in their region and globally.

    According to OPITO, the oil and gas industry skills body, education is key to unpicking many of the problems faced. OPITOs David Doig warns that the industry has already gone beyond the skills shortage to a skills crisis and that more companies need to wake up to the fact that cooperation on training is bad