New projects and investment lead to increased hiring, while skills shortages still impact employers globally

New projects and investment lead to increased hiring, while skills shortages still impact employers globally

The Hays Oil & Gas Job Index for the first quarter of 2014 has shown hiring globally has increased, with key areas seeing significant jumps in job numbers. However, as new projects and business investment lead employers to increase headcount, skill shortages are still affecting recruitment plans.
The job index, which charts the number of jobs posted on nine oil and gas job portals across the world, rose to a high of 1.65 in the first quarter of 2014, a substantial increase from the end of last quarters index of 1.31 and on par with the year-on-year score of 1.68.
The Index was established in October 2010 when it was set at 1; all subsequent months have been compared to this benchmark. Many of the regions are facing an increase in hiring for 2014 and in order to attract top talent in competitive markets, are increasing salaries and benefit packages.
“The first quarter of 2014 has been a strong one globally, with Africa, CIS and North America seeing the biggest hikes in job numbers” said John Faraguna, Global Managing Director of Hays Oil & Gas. “Investment in businesses and new technologies to support enhanced oil recovery (EOR) is driving new projects. As a result, optimism is high and we expect to see further growth in 2014. However, as companies look to increase their headcount in specialist, niche areas, employers may struggle to find the talent needed and be forced to fight it out with other companies for these sought after profiles”
Trends by region
As well as a global perspective, the Hays Oil & Gas Global Job Index also provides a measure of month-to-month jobs posted by region. The figures from January to March 2014 (Q1) reveal:
AUSTRALASIA
Keeping costs low is a priority for many companies in the region, which has led to a demand for cost engineers and candidates who are able to analyse cost trends, as well as reporting. As the competition for these roles intensifies, wages will begin to rise as companies look to offer competitive salaries to attract their desired candidates.
ASIA
Asia is targeted for growth and is outpacing other regions as it expands. By the year 2035 the energy demand from South East Asia is predicted to grow by 80 per cent, moving the main focus of the oil and gas industry to the east. The strongest of these markets, Singapore, South Korea and China, continue to be the market leaders globally.
NORTH AMERICA
Canada has experienced a jump in the first quarter 2014 in the Upstream sector. Businesses are beginning to invest in highly technical personnel to boost production. Meanwhile in the US the forecasts for Q2 and Q3 look very strong, with businesses looking to relocate to larger premises to accommodate extra headcount.
EUROPE
The European region is experiencing its lowest number of recorded vacancies in the same period for three years. This followed a slight spike in vacancies in January succeeding a quiet December. A record number of decommissions are planned in the North Sea, which has signalled the need for experienced candidates with this background. Europe faces a brain drain as employees are attracted to other regions by lucrative salaries and expat packages.
SOUTH AMERICA
The South American region has recently been ranked as the fourth largest region for investment in the oil and gas industry. Planned investments and budget agreements set for 2014 are expected to give the region a major boost of activity after a slow 2013. The number of vacancies is expected to rise as a result, Companies are looking to increase salaries in order to attract the talent they need to the region.
AFRICA
One of the key challenges found in Africa is finding and retaining talent with like-for-like resource experience. There has been a push to source local talent ahead of foreign candidates, however, with a limited amount of local talent to choose from the region still has to rely heavily on European workers to fill those roles. Nationals from the region of Africa often seek rewarding careers elsewhere and may be unwilling to return to the region for employment.
COMMONWEALTH OF INDEPENDENT STATES (CIS)
As a result of several large projects surrounding pipeline construction the local job market has been given a boost. Demand for various profiles, including Drilling and Pipeline Supervisors, has been driven by the recent pick up in projects. The deal agreed recently between Gazprom and the China National Petroleum Corporate to supply gas to Chinese markets is expected to lead to further investment in the region.
MIDDLE EAST
Staffing levels are expected to increase in places such as Dubai, Abu Dhabi and Doha. The Middle East is another region that where bonuses and benefits may need to increase in order to attract and retain talent. The increase in hiring is necessary in order to keep up with the investment and flow of new jobs in the region.
About the Hays Oil & Gas Job Index
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 31 December 2013 the Group employed 7,979 staff operating from 240 offices in 33 countries across 20 specialisms. For the year ended 30 June 2013:
• the Group reported net fees of £719 million and operating profit (pre-exceptional items) of £125.5 million;
• the Group placed around 53,000 candidates into permanent jobs and around 182,000 people into temporary assignments;
• 29% of Group net fees were generated in Asia Pacific, 40% in Continental Europe & RoW (CERoW) and 31% 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
Source:
hays

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