Oil and gas industry employers are facing significant skills shortages according to the Oil & Gas Global Salary Guide, produced by recruiting experts Hays Oil & Gas and leading jobsite Oil and Gas Job Search.

The Salary Guide, which is based on data from 24,000 respondents, revealed 60 per cent (63.1%) of employers plan to increase headcount in 2014, exacerbating the already skill-short market and adding pressure to increase salaries to attract candidates.

Eighty-one per cent of employers predict an upturn in salaries in the coming year as hiring managers vie for top talent, at the same time as further emphasis is put on benefits. The number of employees receiving benefits in Brazil is high with over 77 per cent of respondents receiving some sort of additional benefits, indicating that employers are bolstering compensation packages with benefits such as incentivised bonuses. Respondents indicated, 31 per cent bonuses plans and 31 per cent have meal allowances included in their total compensation package. 

In Brazil, the results from the Guide shows a slight decline in salaries in 2013, however, employer’s confidence in the market is high as 64.5 per cent of hiring managers have a positive or very positive outlook on the Oil and Gas industry. 

Gary Ward, Director Hays Oil and Gas comments: “The lack of new exploration areas released on the Brazil market in the past few years means some oilfield services and engineering companies were forced to resize their teams, releasing highly skilled professionals into the market and restricting salaries from rising.” 

Ward continues: “However, a successful round of licensing for the pre-salt in 2013 has led to renewed optimism for 2014.” 

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.”