Professional Documents
Culture Documents
GLOBAL
SALARY GUIDE
Review of 2013, outlook for 2014.
SURVEY SUMMARY
DISCIPLINE
AREAS COVERED
24
COUNTRIES WORLDWIDE
REPRESENTED
53
7,200+
RESPONDENTS ARE
EMPLOYERS IN THE
INDUSTRY
PEOPLE RESPONDED
TO THE SURVEY
24,000
THANK YOU
We would like to thank all of you who took the time to participate in our survey.
Wed especially like to thank the teams from Oil and Gas Job Search and from Hays for all of their hard work conducting the survey,
analysing the results and producing an excellent document.
Last year we had over 150,000 copies of the Guide downloaded and an additional 20,000 distributed in person and at various
conferences, and we hope to surpass these levels this year.
We believe that our growing number of readers is a strong indication of the value and quality of our document, but we are always
interested in receiving feedback from you on how to improve and make our study more useful for you.
We hope you enjoy the read and, more importantly, find it useful in your job.
Disclaimer: The Oil & Gas Global Salary Guide is representative of a value added service to our clients and candidates. While every care is taken in the collection and
compilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced in
total or by section without written permission from Hays.
MANAGING DIRECTORS WELCOME CONTENTS
We are delighted to share with you our Global Oil and Gas Salary Guide for 2014.
Our goal is to provide the industry with an informed view of global and regional 1 Managing Directors Welcome
trends in compensation and benefits and to identify some of the key industry
factors and events that have contributed to these trends. 1 Summary of Findings
This is the fifth year that we have conducted our survey and produced this
document, and we are proud to say that each year weve seen the level of interest
rise and the quality of our document and underlying analysis improve. SECTION ONE - INDUSTRY PERSPECTIVE
This year, approximately 24,000 participants from 53 countries across 24
disciplines responded to our survey. 3 Global Perspective
Once our survey was completed, the data were compiled and cleansed to eliminate 4 Regional View
spurious samples and outliers.
Next, our regional recruitment consultants, whose daily job is to work with
companies to attract and retain permanent and temporary workers, reviewed the
SECTION TWO - SALARY INFORMATION
data to ensure they reflected the realities of the local labour markets.
We then analysed the findings to identify trends and the reasons behind the 10 Salary Overview
results.
11 Salaries by Discipline
We believe that by blending the surveys quantitative data with our recruitment
consultants localised expertise, we produce the best and most representative view 11 Contractor Day Rates
of remuneration in the industry.
12 Salaries by Company Type
As always with surveys, statistical errors due to sample size and respondent errors
limit the accuracy of any particular figure. In addition, since the people who
respond to our survey vary from year to year, changes to the demographics of
respondents (e.g., their experience level, location and discipline) will have an SECTION THREE - INDUSTRY BENEFITS
impact on our figures that might not represent actual changes in labour markets.
For instance, in this years survey, we had considerably more respondents in lower 16 Overview of Industry Benefits
salary brackets than last year, which has yielded lower average salaries than
observed by our recruitment consultants. 17 Company Benefits
In addition, respondents report their salaries to us converted to $US from their
local currencies, so fluctuations in the relative value of currencies versus the $US
18 Regional Benefits
will also impact our results. This year, the $US gained value against most
currencies, over 15 per cent against the Australian dollar and Brazilian real, for
instance. This has also yielded lower salaries than weve observed in the markets in SECTION FOUR - INDUSTRY EMPLOYMENT
$US terms.
This year, we have taken into consideration some of these biases to present a 21 Staffing Levels
like-for-like global average salary alongside the average salary computed from the
unadjusted raw data. We have not adjusted the other figures. Nonetheless, we 22 Diversity and Movement of Workforce
believe that by looking at the results as a whole, and particularly at trends, there is
considerable value in this research. 24 Experience and Tenure
GLOBAL PERSPECTIVE
North America
The US is projected to become the largest The US workforce has grown by over 40 per
global producer of oil and gas in the world, cent since the recession, and energy companies
driven by a surge in production from shale are forecasting a need for many thousands of
reserves. Imports of gas and oil have dropped engineers by the decades end.
by 32 per cent and 15 per cent in the past five
Due to an aging workforce and difficult
years, creating a shifting and uncertain
immigration restrictions, there is a need to
geopolitical environment for major oil
attract more Science, Technology, Engineering
producing countries.
and Mathematics (STEM)-skilled workers from
Many believe that by the end of the decade the schools as well as from other sources, such as
unconventional bubble will burst and the the military.
importance of imports, particularly from the
Increasingly, professionals with unconventional
Middle East, will again rise.
expertise are being sought for international
Due to surging unconventional gas production, assignments.
natural gas prices have remained low,
In Canada, transportation bottlenecks and a
decreasing the attractiveness of drilling for dry
glut of oil and gas in the US have led to a
gas and opening the opportunity to export
general softening of the market and a push to
LNG to higher priced markets such as Asia.
build infrastructure for LNG export.
The US is poised to become the worlds largest
exporter of LNG. In the meantime, low gas The government has been enhancing policies
prices have greatly benefitted the chemicals to encourage foreign investment and to further
and manufacturing industries, which have develop the required infrastructure to export to
announced new investments of as much as $110 Asia and other markets, thus reducing the
billion. reliance on exports to the US.
Offshore activity has completely rebounded Some companies have announced significant
since the Macondo incident of 2009. reductions in workforce and others have
Deepwater and ultra deepwater activity is reduced profit forecasts because of delayed
expected to continue to rise, with active rigs projects. However, other companies are hiring
increasing from 37 currently to 60 by 2015. and are even struggling to find adequate skills.
Production is expected to increase by 10 per Significantly, the end of 2013 saw a number of
cent next year. Onshore drilling is focused on large projects get Final Investment Decision
oil and liquids. (FID) and move into detailed engineering and
The shale drilling boom has attracted new construction phases. This activity is likely to
competition to the service market, which now reinvigorate the competition for talent in this
looks like it might need to consolidate. space and we expect to see renewed upwards
pressure on salaries and day rates through
2014.
South America
Mexico has passed legislation to open its While 2013 was a relatively quiet year in terms
energy industry to outside investment in order of activity and hiring in both Brazil and
to reverse steeply declining production, which Colombia, recruiting efforts are starting to
has dropped 20 per cent since 2002. The shift into gear particularly in the geoscience
changes would allow international companies and subsea engineering disciplines,
to enter into globally competitive contracts to predominantly for operations and project
explore for and produce hydrocarbons and to managers.
take ownership of the oil above ground, after
Both countries are trying to reduce their
paying royalties and taxes. It also permits
dependence on international workers by
international companies to open retail gas
attracting nationals who are currently working
stations. If the law is implemented successfully,
abroad.
this could create significant activity on the
Mexican side of the Gulf of Mexico, an area that In Brazil, the government estimates it will
has been only lightly explored compared to the need an additional 250,000 new professionals
highly productive US areas to the north. this decade and has initiated a programme to
attract and develop 200,000 new workers to
In Brazil, Petrobras is having difficulties
the industry, but despite a swelling youthful
financing its five year investment plan, which,
population it is unclear whether there will be
at over $200 billion, is the worlds largest
sufficiently trained workers to fulfill their
corporate spending programme. This has
needs. It is likely that there will continue to be
delayed deepwater projects and has led to
an influx of as many as 5,000-10,000
sales of some of its international assets.
international workers per year.
However, successful licensing rounds for the
pre-salt in 2013 has led to renewed optimism In Argentina, the government has recently
for 2014 activity levels. relaxed regulations enabling agreements to be
put in place to develop the vast Vaca Muerta
Colombia also had a successful licensing
shale reserves, one of the worlds most
round, but at a more subdued level than
promising shale formations.
Brazil. Exploration is a priority to boost
diminishing reserves of crude oil, which stood Argentina is hopeful that shale production will
at around 2.4 billion barrels in 2013. help recover energy self-sufficiency it lost earlier
this century.
Akacias is one of the biggest exploration
successes in recent years in Colombia, and
clearly shows the potential of heavy crudes in
the Llanos area. Plans are being made to
spend as much as $75 billion by 2020 to
increase oil and gas production to 1.3 million
barrels.
4 | Oil & Gas Salary Guide
INDUSTRY PERSPECTIVE
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
businesses exploring in the North Sea and the rest assignments are often more lucrative and are
of the world. Over the last 12 months there has perceived to offer exposure to more diverse
been a marked increase in smaller businesses environments compared with the North Sea.
securing finance to exploit recently acquired
Subsea engineers are in short supply; particularly
licenses.
those working in controls and pipelines, however
The UK has announced a new tax allowance this isnt new to 2013/2014. Geoscience and
aimed at boosting the development of shale subsurface professionals, specifically with
gas resources in the country. If other development experience in the North Sea, are in
European countries, such as Poland, follow high demand driven by a number of new
suit and overcome geological, political, developments over the last 12 months coupled
environmental and other hurdles related to with competition from international opportunities.
shale production, the global oil and gas
In order to find scarce skills and combat salary
industry would face a major rebalancing.
inflation, some companies are looking to other
Norway expects to continue record level industries for talent with transferable skills, such as
spending, primarily offshore, although the ex-military personnel for operations, logistics and
service sector is experiencing a slowdown as maintenance roles or other engineering sectors
companies have become more focused on such as automotive, defense and aerospace.
Aging North Sea fields, whose average size is increasing cash flow, perhaps foreshadowing a
shrinking quickly, are increasingly relying on In general, Continental Europe tends to have a
future slowdown in activity.
National Oil Companies (NOC), small operators surplus of well trained and educated oil and gas
and service companies to keep production and In the UK, the debate continues regarding the professionals and acts as an exporter of these
tax revenues flowing. benefit of the influx of migrant workers, professionals worldwide. This past year did not
primarily Norwegian, Dutch and Americans, who see significant changes in activity and so the
Emerging technologies to better visualise the make up nearly 20 per cent of the offshore supply and demand of labour was largely in
subsurface in order to enhance ultimate recovery industry. equilibrium. An exception to this was Poland,
will also play an important role in maintaining where disappointing results in shale exploration
production levels. has led to a weakening demand for these skills.
Ukrainian projects.
Russia, which relies on oil and gas related
Perhaps consequently, Ukraine has entered
duties and taxes, is being threatened by the
into shale gas production agreements with
re-balancing of the global energy market.
International Oil Companies (IOCs) to reduce
Exports have dropped due to European
its dependence on Russian imports and
economic problems and increased competition
possibly achieve energy self-sufficiency.
from cheaper alternatives. Therefore, Russias
attention, and gas exports, might shift However, shale efforts in neighboring Poland,
eastward to gas-hungry China. Lithuania and Romania have had limited
success due to a combination of geology,
Many believe that Russia must invest in
contractual terms and environmental concerns.
unconventional resources like the Arctic and
shale in order to maintain long-term Further south in the Caspian area, activity
production. This would likely require a continues to remain high as do investments in
significant inflow of technology and as much transportation infrastructure.
Middle East
2013 was a relatively steady year for the Growing interest in the Middle East in
Middle East, but given the number of unconventional resources underlines the
infrastructure and field development projects general view that the days of easy oil are over.
that are now underway, the expectation for These skills will largely be imported
2014 is for much greater activity. internationally.
While the Middle East will rely on imported Iran in particular has not had access to
workers for the foreseeable future, there have modern technologies, so there is great
been government and company efforts to potential for increased production if local
increase the local labour content of the complexities can be overcome.
workforce.
OPEC has seen its exports decrease due to
These efforts have had some positive impact, slow growth of global demand coupled with
supported by the demographic youth bulge in surging production from the US.
the local population, but the increased blue-
Given the expected return of production from
and white-collar workforce requirements
places like Iran, Iraq and Libya, OPEC may
expected in the next few years will most
continue to see declines in the short-term.
certainly be met by workers from other
regions. In the long-term, global oil demand is
expected to grow from 90mmbpd to
Some of the NOCs have launched worldwide
115mmbpd by 2040 due to population growth
recruitment campaigns for the thousands of
and increased per capita energy consumption
engineers they expect to require in the near
in developing countries, in the Middle East
future.
production will once again regain its
dominance.
Africa
Africa currently supplies approximately 12 per Historically, E&P focus has been in the west,
cent of the worlds oil and is estimated to hold mainly in offshore and deep water, but that
as much as eight per cent of the worlds focus is shifting somewhat to the east,
recoverable oil reserves and seven per cent of particularly in gas exploration, as expectations
its gas. About 80 per cent of its oil production have not been completely met in western
currently comes from Nigeria, Libya, Algeria, investments. Recently, there have been
Egypt and Angola. Given its vast size and significant gas finds in Mozambique and
potentially untapped resource wealth, Africa is Tanzania, and growing interest in oil exploration
one of the last oil and gas frontiers. in Uganda and Kenya.
Challenges, however, remain in almost all Deep water skills are still in demand in the
respects. Security remains a concern, and west, mostly reservoir and drilling engineering,
candidates are increasingly considering their but increasingly candidates with gas
safety and how potential employers are experience, particularly in the feasibility, design
managing security at their facilities before they and exploration areas, are being recruited in
accept offers. Political uncertainty, fraud and the east.
corruption, stringent regulations and
Some of these skill requirements will be met by
restrictions, and a lack of infrastructure and
workers moving from west to east. A majority
local skills all play a role in inhibiting investment.
of skilled workers will continue to be expats
Nevertheless, capital investment in East and into the foreseeable future.
West Africa should continue as huge potential
outweighs concerns about fiscal stability,
security and infrastructure.
Asia
Investment has been inhibited by challenging bonuses and are reducing their reliance on
legal and ownership issues, raising capital, expats where possible.
territorial disputes, infrastructure and technical
The drive to invest in and develop local talent
issues. The region must reduce regulatory
in Malaysia continues. This strategy has had a
uncertainties and offer financial investment
significant positive impact on the talent
frameworks that compensate for risks in order
available, particularly at the senior level.
to attract more international investment.
In the geoscience area many senior roles have
With Singapores first LNG terminal coming on
been historically occupied by expats. However,
line, we can expect an increase in demand for
companies, such as operators, are now vying
candidates with LNG experience. Design and
for talented local professionals. In response to
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
construction of offshore structures (rigs,
high demand and short supply, suitable
FPSO, FSO and topsides) remains an
Malaysian candidates at this level can
expanding market.
negotiate large salary increases when moving
There is a shortage of Senior Project Managers, from one company to another. Given the focus
particularly those with a subsea or SURF on employing local staff, expat salaries are
background and mega project experience. The under pressure.
market is also tight for Asian national Reservoir
Agreements are starting to be put into place in
Engineers, Senior Geophysicists and Geologists.
China to attract international capital and talent to
The manufacturing industry in Asia has develop shale reserves. China is believed to hold
continued its drive forward and the Original the worlds largest technically recoverable shale
Equipment Manufacturer (OEM) sector has gas resource, but exploration is at an early stage.
Energy demand is expected to grow by 80 per been an engine for growth for a number of
cent by 2035 in Southeast Asia, further shifting In the upstream market, EPC and other oil field
years. With issues of quality and reliability
the global centre of gravity of the industry service companies have seen a relatively flat
high on the end users agenda, Asia has made
eastward. Singapore has become one of Asias market for their services, and so their hiring has
giant strides in improving quality and the
main energy and petrochemicals hubs and one remained stable. In contrast, the downstream
results are increased orders and a wider range
of the worlds top-three oil trading and refining market, particularly the production of bitumen
of products being produced. We expect to see
centers. Asia Pacific continues to be a region and lubricants, is booming and sales and
continued demand for sales & business
targeted by global IOCs to achieve growth. marketing professionals are in demand.
development specialists and operations/plant
Oil production has peaked, and the region has managers well versed in maximizing Experienced and skilled engineering
become a net oil importer in the mid-1990s. productivity and improving quality processes. professionals specialising in geology and
Indonesia, Malaysia and Brunei have been reservoir engineering and with both onshore
There has been pressure on salary levels
significant exporters of gas historically, but are and offshore knowledge are in short supply in
increasing for Asian nationals. To manage
now slowly becoming importers or net neutral. the domestic market.
costs, companies are offering increased
Australasia
In the marine support sector, wages and The outlook for 2014 is quite promising with
expenses have risen significantly (40 per cent) multiple packages of the major projects
since 2007, only partially offset by rises in ramping up in close succession, re-engaging
revenue (8 per cent), raising concerns about the candidates in areas of the market that have
ongoing health and competitiveness of the been stagnant over the last six months, as well
offshore industry. as planned expansion and maintenance works
at various on- and offshore operations. Key
In Western Australia and in the Northern
disciplines that will see a resurgence include
Territories the focus has come off of the
HSE, QA/QC, specialist trades and labour, with
Gorgon and Wheatstone projects and now
subsea, installation, project controls and
attention lies with Inpex and other new
operations and maintenance remaining stable.
developments, expansion of existing
operations with mid-tier operators and, finally, With portions of the market remaining flat
efficiency measures in existing assets. over 2013, employers are looking to exhaust
Offshore-specific disciplines like marine local resources before they will consider
installation and subsea engineering remain in sponsorship. Key technical areas and skillsets
high demand falling in line with the stages of specific to new technology like FLNG and
major projects. dynamic positioning are new to Australia and
therefore employers are looking to overseas
The four LNG projects in Queensland (QLD)
markets for resources.
are all at differing stages with QCLNG coming
in first. As infrastructure comes into completion,
companies are preparing for operations. With the
APLNG and GLNG have another year of
SECTION FIVE: INDUSTRY OUTLOOK
This represents perhaps a well needed correction after two prior years of Algeria 39,600 96,700
significant salary increases. Angola 51,300 110,600
While the headline decline is significant, the individual country figures Argentina 75,800 106,900
portray the numerous forces shaping remuneration in the industry.
Australia 163,700 164,000
Whether they are successes or issues stemming from geology, politics,
the environment, the economy or in some cases armed conflict, each Azerbaijan 54,800 133,800
regions salary tells a story: Bahrain 34,000 69,300
Australia saw flat to slightly declining average salaries after a number of Brazil 90,600 125,800
years of unsustainable growth in wages had started to threaten the
financial viability of some projects. Brunei 99,300 119,400
Southeast Asia saw declines in China, Indonesia and Malaysia due to Canada 130,000 119,200
downward pressure on expat salaries, while Singapore remained China 62,900 125,600
relatively strong. Colombia 100,300 137,000
The Middle East was flat to slightly declining except for Qatar due to its Denmark 98,800 115,200
increased upstream and downstream activity.
Egypt 37,500 105,200
Russia and CIS were flat to lower due to less reliance on expats as was
most of Africa. France 101,200 103,300
Continental Europe was flat to declining as supply and demand of Ghana 26,800 128,500
workers was largely in equilibrium, but in places like Poland there was a India 37,700 63,700
reduced need for expats. UK and North Sea salaries were also flat to
Indonesia 41,900 129,600
slightly declining year-over-year.
Iran 39,800 83,700
Brazil had a second consecutive decline after several years of upwardly
spiraling salaries, as further delays in activity reduced the demand for Iraq 49,100 114,500
workers. Argentina and Venezuela also saw salaries decline, whereas Italy 66,100 86,100
Colombia a bright spot.
Kazakhstan 38,900 117,000
Canada saw relatively flat salaries as transportation bottlenecks to the US
caused jitters in prices and shook investor confidence. US salaries decreased Kuwait 79,600 84,600
to 2010 levels as low natural gas prices depressed onshore drilling. Libya 36,000 68,700
Malaysia 47,900 115,400
Looking forward Mexico 79,600 132,700
At the time of writing the price of oil remained comfortably above $90/ Netherlands 111,000 101,500
bbl and natural gas in the US has rebounded to well over $4/mcf. There
is some doubt creeping into the market driven by the possibility of falling New Zealand 100,800 127,700
prices due to tepid global demand and the impact of increased Nigeria 48,500 129,800
production from countries such as the US, Iran, Iraq and Libya. If so, it
Norway 179,200 110,400
will be interesting to see whether OPEC takes steps to prop up prices to
their desired benchmark by curtailing their production. Oman 87,800 90,000
However, the consensus view is that the US will continue to experience Pakistan 32,200 93,500
good economic growth and the economies of the UK and other parts of Papua New Guinea 52,900 99,800
Europe are poised to have improved years. Australia may also have hit
its bottom as Chinas manufacturing output and therefore demand for Philippines 30,000 120,100
coal and metals rebounds. In this scenario, energy prices should continue Poland 36,400 58,200
to remain within a relatively narrow band between $90-110/bbl, perhaps
Portugal 75,400 106,000
with upside, which would drive increased spending in 2014, perhaps on
the order of five per cent over 2013 levels. Qatar 47,200 84,000
Assuming this happens in 2014, we would expect salaries to rise in the Romania 33,800 103,900
five per cent range, but with a wide variation between disciplines and Russia 68,300 127,000
countries.
Saudi Arabia 58,400 76,600
Manager Vice
ANNUAL SALARIES Operator/ Lead/ President/
BY DISCIPLINE AREA Technician Graduate Intermediate Senior Principal Director
Business Development/Commercial 53,600 36,000 41,800 59,700 101,100 168,100
Construction/Installation 61,000 37,000 54,500 76,800 105,700 188,000
Downstream Operations Management 55,000 42,000 50,000 83,700 92,000 163,400
Drilling 65,200 37,000 67,900 86,900 125,800 199,900
Electrical 61,200 38,100 48,500 70,100 87,200 N/A
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
Estimator/Cost Engineer 35,000 30,000 46,700 74,000 102,000 N/A
Geoscience 60,000 45,000 56,000 95,400 137,100 222,300
Health, Safety and Environment (HSE) 42,500 34,500 55,800 71,800 94,500 182,300
Logistics 55,900 31,300 35,000 65,000 85,000 116,900
Marine/Naval 72,000 32,900 67,600 80,300 98,200 175,000
Mechanical 50,000 38,000 42,600 69,200 87,100 102,000
Piping 47,000 34,000 43,000 59,900 86,900 N/A
Process (chemical) 49,400 38,900 46,200 73,700 113,000 125,400
Production Management 55,800 32,400 52,100 79,600 109,700 242,200
Project Controls 55,000 40,000 50,600 72,600 111,200 156,500
Quality Assurance/Quality Control (QA/QC) 49,300 36,500 53,700 60,000 92,900 134,000
Reservoir/Petroleum Engineering 45,900 44,800 67,800 105,700 131,900 262,800
Structural 57,700 36,000 41,800 73,000 93,000 204,100
Subsea/Pipelines 54,200 41,400 62,400 89,100 134,500 199,000
Supply Chain/Procurement 45,600 31,900 53,800 72,100 86,600 186,800
Technical Safety 61,300 35,000 60,700 74,300 115,200 185,000
Breaking down the data into disciplines and comparing against last years
figures highlights the effects of the factors discussed in Section One. Most disciplines realised flat
In general, high demand skills like reservoir/petroleum engineering and
subsea engineering continued to see an increase in salary. So did skills in
or single digit declines in
unconventional exploration and production.
Conversely, most other disciplines realized flat or single digit declines in
their salaries
their salaries.
Salary declines occurred more or less uniformly across all levels of seniority.
Manager Vice
ANNUAL SALARIES Operator/ Lead/ President/
BY COMPANY TYPE Technician Graduate Intermediate Senior Principal Director
Consultancy 51,000 41,200 46,600 80,000 111,200 155,300
Contractor 67,600 40,600 55,600 67,700 98,300 167,000
EPCM 57,000 43,500 49,000 78,300 117,800 172,400
Equipment Manufacture and Supply 47,700 37,000 45,300 60,300 75,800 140,000
Global Super Major 75,900 63,000 76,600 101,600 124,300 210,000
Oil Field Services 53,000 39,300 54,500 65,000 86,700 166,000
Operator 58,500 43,500 65,000 101,300 145,500 234,500
All company types experienced single digit declines in average salary from
last year, and salaries are broadly back to 2011 levels. In terms of the magnitude of
base salary by company type,
Global Super Majors and other
Operators continue to lead the
pack, as expected
$120,000 2010
2011
$100,000
2012
$80,000 2013
$60,000
$40,000
$20,000
$0
Consultancy Contractor EPCM Equipment Global Oil Field Operator
Manufacture Super Major Services
and Supply
This chart presents the raw survey data only.
Once again the number of people receiving benefits has increased. OVERVIEW OF INDUSTRY BENEFITS
Compared to 2012, we have seen a two per cent increase in the number
of people receiving benefits.
Percentage Average
As candidate shortages continue to rise, it is evident that employers are
utilising benefits such as bonuses as a mechanism for attracting top
that receive percentage of their
talent. Despite this increase, there is a still a significant portion of oil and the benefit total package
gas professionals not receiving benefits (33 per cent) worldwide.
Employers who utilise their benefits as a key selling feature may be able
to more effectively target this candidate pool in their recruitment plans. 42.8%
Bonuses
Bonuses once again rank as the number one benefit offered by 15.9%
employers, staying steady with 2013 at 42.8 per cent. Bonuses,
particularly those directly relating to performance can be a strong
motivator.
8.9%
Commission
What is most notable about this years results is the increase in health 10.2%
plans. Health plans have consistently been ranked second next to bonuses.
However, for the first time health plans rank first in North America.
11.4%
Tax Assistance
13.1%
20.8%
Pension
11.6%
33.2%
More people are receiving Health Plan
14.5%
benefits than in the past
24%
five years Car/Transport/
Petrol 11.7%
22.8%
Housing
18.8%
Hardship 10.2%
allowance 16.0%
Hazardous 8.4%
danger pay 16.5%
18%
Meal allowance
13.0%
7.9%
Share scheme
13.2%
10.6%
Schooling
17.0%
14.7%
Training
15.1%
18.6%
Overtime
Background: The bar chart shows two figures related to benefits that 18.6%
employees in the oil and gas industry receive. The first figure represents the
percentage of respondents that receive that particular benefit, i.e. 42.8 per No Benefits 33.28%
cent of respondents receive some sort of bonus. The second figure
represents the value of that benefit stated as a percentage of their overall
package for those that receive it, which in the case of bonuses is 15.9 per
cent.
16 | Oil & Gas Salary Guide
INDUSTRY BENEFITS
Bonuses top the list as the highest ranked benefit across all company
types, staying consistent with 2012. Global Super Majors and Equipment Despite bonuses being the
Manufacturer & Supplier companies offer pension plans more so than
other company types. On the other hand, EPCM and Oilfield Services
offer more overtime pay.
highest ranked benefit across
As candidates move within sectors employers should be mindful of the all company types, health
benefits professionals are used to receiving and be flexible with their
offerings in order to attract their desired talent. plans realised the highest
increase of five per cent
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
TOP BENEFITS BY COMPANY TYPE
Bonuses are the most popular benefit offered to employees for all
regions bar North and South America. In North America in the last Middle East, Asia and South
year, health plans have taken over the number one spot for most
prevalent benefit offered. This could be in response to the recent
US Obama Care implementation.
America are the regions
In South America, health plans are again the most popular benefit. with the fewest number of
South America also has the lowest number of employees who are not
receiving benefits. oil and gas professionals
Australasia, although experiencing a small decline in the number of
people receiving benefits, is still above its lowest number in 2010. without benefits
The Middle East has seen the highest percentage increase in the number
of people receiving benefits, as benefits are offered to >10 per cent
more people than in 2013. The number of people receiving benefits in
the Middle East currently surpasses the previous high in 2010.
80%
2010
70% 2011
60% 2012
2013
50%
40%
30%
20%
10%
0%
Africa Asia Australasia CIS Europe Middle East North South
America America
AFRICA ASIA
37% Bonuses 48% Bonuses
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
25% Housing 25% Housing
AUSTRALASIA EUROPE
30% Bonuses 33% Bonuses
Projected headcount growth remains on par with the previous two The industry continues to rely heavily on contract workers and
years. We have seen three years of consistently optimistic expectations companies expect this to continue and perhaps increase in the future.
of headcount growth, indicative of the relevant confidence in the
industry.
In 2013 there was a slight dip in the number of employers planning to
increase their headcount by more than 10 per cent, reaffirming that
employers are setting realistic expectations for increases in the headcount.
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
AREAS IN WHICH CONTRACTORS
ARE EMPLOYED IN OIL AND GAS
12.0% Up to 5% 21.8% Up to 5%
41.6% 40.5%
Increase Remain the same
17.9%
Decrease
43.8% 48.7%
Increase Remain the same
7.6%
Decrease
DIVERSITY OF STAFF
Male Female
Male Female
91.6%
Africa 4.5%
8.4% 24 and under
6.6%
92.7%
Asia 13.7%
7.3% 25-29
19.1%
89.3%
Australasia 17.6%
10.7% 30-34
22.7%
89.2%
Europe 14.4%
10.8% 35-39
15.5%
95.8%
Middle East 13.7%
4.2% 40-44
11.5%
81.6%
North America 11.4%
18.4% 45-49
8.5%
86.8%
Russia and CIS 10.1%
13.2% 50-54
8.6%
88.7%
South America 7.8%
11.3% 55-59
4.9%
4.7%
60-64
Women and younger workers 2.1%
62% 38%
Home Abroad
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
Middle East dominated
by expatriates
MOVEMENT OF THE WORKFORCE
This year has seen a significant increase in the number of workers new With the baby boomer generation nearing retirement we could see an
to the industry as companies are hiring more college graduates as well exodus of professionals leaving the industry with vast knowledge and
as experienced workers to join their business from other industries. skill sets. Employers can address this impending issue with appropriate
However, years of experience of professionals within their current roles training and succession planning.
have largely stayed the same with previous years.
100%
Less than 1 year
26.0% 24.6% 23.4%
80% 1-2 years
25.0% 26.6%
60% 29.2% 3-5 years
35.6% 23.1%
0-4 years 5-9 years
21.7%
10-19 years
19.5%
20+ years
Construction/
16.2% 26.4% 36.0% 21.4%
Installation
Project
19.0% 30.1% 23.0% 27.9%
Controls
Subsea/
29.8% 21.4% 22.4% 26.5%
Pipelines
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
85% 75% 69%
MOBILE RECRUITING
Social media is obviously an important space to be in when targeting job
seekers. In addition to this however, recruiting in the digital space means 65 per cent of Hays countries
reaching your audiences when and where they are available and there may
be no better direct route then mobile technology. In a recent iMomentous
report, 36 per cent of Fortune 500 companies have a mobile website, yet
have experienced between
only five per cent permit applying via mobile capabilities. A Simply Hired
survey found that mobile users click on 60 per cent more jobs and spend
100 and 200 per cent+
27 per cent more time looking at jobs. By not having your jobs in a mobile
environment could result in employers missing out on active candidates.
increase in job seeker mobile
traffic compared to last year
% INCREASE IN HAYS JOB SEEKER MOBILE TRAFFIC 2012 VS 2013
250%
200%
150%
100%
50%
0%
SECTION FIVE: INDUSTRY OUTLOOK
Brazil
Russia
Poland
Portugal
Canada
Spain
France
Hungary
Italy
UAE
USA
Australia
China
Japan
New Zealand
Singapore
UK
New
Fewer contractors
were engaged
with agencies
CONSULTANCY CONTRACTORS
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
7.6% 4.8%
0.0% 0.3%
-0.1% -1.2%
-7.6% -3.9%
9.1% -1.0%
-0.3% 1.2%
-2.9% -0.1%
-0.1% -0.1%
10.5% 9.4%
-0.1% 0.8%
-2.7% -2.5%
-7.7% -7.8%
5.4%
-0.1%
-2.3%
-3.0%
Economic instability
9.2% 2.1%
33.8% Environmental concerns
Safety regulations
9.4% Security/safety
caused by social unrest
Immigration/
overseas visa program
14.5% Other
23.1%
For the past three years employers have had a consistently positive
outlook on the industry. Over 70 per cent of employers have a positive to Confidence levels in next
very positive outlook moving into 2014. Despite this positivity there are
still many factors that could impede on employers plans for growth. For
example, in South America and Australasia, approximately a third of
years industry growth remain
employers are concerned with economic instability and in North America,
40 per cent are concerned with skill shortages. In Africa economic
high but have declined
instability is equally as concerning as the potential of environmental
issues. Safety regulations remain an important concern here as well.
slightly from last year,
Skill shortages worldwide still plague the industry, however immigration
and overseas visa programs are less concerning to employers. Expect
reflecting the caution that
competition on a global level for top talent as business activity gains
strength throughout 2014.
has crept into the industry.
EMPLOYERS CONFIDENCE IN THE OIL & GAS INDUSTRY John Faraguna, Managing Director, Hays Oil & Gas
2.1%
All regions 33.8% 23.1% 14.5% 9.4% 9.2% 7.9%
1.6%
Africa 23.4% 19.6% 19.0% 9.3% 11.1% 16.1%
1.6%
Asia 31.5% 25.1% 13.3% 8.8% 12.4% 7.4%
4.6% 3.3% 4.2%
Australasia 40.0% 27.7% 13.9% 6.4%
4.1% 2.6%
Europe 47.6% 21.4% 10.8% 6.6% 6.8%
1.3%
Middle East 30.2% 21.0% 13.9% 10.7% 11.5% 11.4%
4.5% 3.0%
North America 39.5% 23.8% 16.8% 6.9% 5.4%
3.0%
Russia and CIS 29.2% 26.8% 13.5% 10.8% 6.3% 10.4%
3.9% 2.3%
South America 25.8% 30.3% 21.0% 9.2% 7.4%
EMPLOYERS GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS, OUTSIDE THEIR OWN REGIONAL AREA
Middle East
North Sea We have seen strong business activity
Geoscience and subsurface professionals are in high in 2013, and as planned projects come
demand due to an emergence of projects over the last on-line, we expect the Middle East to be
12 months. These candidates with North Sea specific a hive of recruitment of activity over the
development experience are in particular short supply next year. The labour market is forecast
as they are typically recruited for projects overseas. to remain stable for local candidates
SECTION FOUR: INDUSTRY EMPLOYMENT SECTION THREE: INDUSTRY BENEFITS SECTION TWO: SALARY INFORMATION
Employers in 2014 should plan ahead their recruitment but increase for imported talent, as
plans in order be prepared for this shortage. employers look to overseas to source the
Ed Allnutt, Director, Hays Oil & Gas skills needed to support major projects
planned for 2014.
Gary Ward, Director, Hays Oil & Gas
9.6%
7.7% 10.9%
8.7%
100%
19% Increase more than 10%
21.6% 27.6%
32.4% 27.4%
80%
Increase between 5-10%
23% 25.3%
60% 29.8% 29.4% Increase up to 5%
30%
26%
40% 28.1% Remain static
24% 24.2%
20.9%
20% 28% Decrease
21.9% 17%
15.7% 17.6%
0%
2009 2010 2011 2012 2013
COUNTRIES WORLDWIDE
33
offices worldwide
239
staff WORLDWIDE
7,840
PERMANENT CANDIDATES
PLACED LAST YEAR
53,000
182,000
PEOPLE PLACED INTO
TEMPORARY ASSIGNMENTS
LAST YEAR
Hays Oil & Gas specialise in the recruitment of professionals within the oil and gas sector across the following regions: Africa, Asia,
Australasia, Commonwealth of Independent States, Europe, Middle East, North America and South America.
Hays specialises in the following 20 functional areas and industry sectors globally:
To register your vacancy or to find your next job, please visit hays-oilgas.com
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