The prime oil & gas employment trends for hiring managers to watch
According to our latest annual Global Energy Talent Index (GETI) report, 51% of of oil and gas employees consider remuneration as having the most positive impact on job satisfaction.
What’s more,49% of respondents would choose the renewables sector if they were to change roles within energy.
These factors are shaping the current landscape of the oil and gas workforce
S&P Global Platts Analytics estimate that oil production will rebound by more than 6 billion barrels per day. However, consumption is still expected to be more than 2 million b/d below 2019’s 101.9 million b/d.
With this in mind, we explore what GETI has to say about the complexities of 2023’s oil and gas workforce changes.
Traditionally, oil and gas workers have enjoyed impressive salaries, but in the last few years, this has ultimately depended on oil prices.
The global pandemic has also created an obstacle in terms of salary increases.
However, the current surge in energy prices and substantial profits have resulted in a significant increase in salaries, surpassing not only last year's 31% rise but also the 42% hike before the pandemic, bringing them back to pre-pandemic levels.
Almost 25% of oil and gas employees experienced a salary increase of more than 5%, while only 9% faced a pay cut, marking a substantial decrease from the 21% recorded in 2021.
This is backed up by GETI survey responses from hiring managers:
36% of whom said that salaries had increased by more than 5%.
22% agreeing that salaries increased by 0-5%.
As the oil and gas industry experiences a current boom that is projected to last until 2030, professionals are becoming increasingly optimistic about their pay.
In fact, a staggering 66% of industry experts anticipate a rise in salaries next year, compared to 54% who held the same expectation last year.
Employee willingness to relocate
The oil and gas industry is known for being globally mobile, with professionals in the industry used to moving to different areas to work on projects all over the world.
It’s therefore unsurprising that the majority of workers would consider moving to another region for work, with Europe and the Middle East topping the list of desired locations.
Europe continues to be the preferred choice for 27% of individuals seeking foreign transfers, thanks to the region's resurgence in fossil fuel investments to compensate for the shortfall caused by Russian gas imports.
The Middle East has now overtaken North America as the second most popular destination, with workers enticed by the allure of low taxes and the thriving infrastructure development in the Middle East. North America and Asia complete the top three choices for relocation.
“European destinations are still booming. We are also seeing growing interest in Dubai and Saudi Arabia. Both locations are investing in infrastructure in a bid to build green tech cities and become future technology, business and tourism hubs of the region.” Janette Marx, CEO of Airswift
The shift towards clean energy is crucial for employee retention
A significant number of oil and gas professionals (21%) express dissatisfaction with their employers' efforts in facilitating the transition to cleaner energy, which poses a potential challenge in attracting and retaining an increasingly environmentally conscious workforce.
However, it is encouraging to note that 48% of respondents report that their companies have taken steps to reduce operational emissions or divest from fossil fuel investments, while 27% claim that these efforts have been significantly successful.
O&G and the competition for talent
The oil and gas industry is facing a significant risk of talent leakage from all directions. This is due to the industry's multi-skilled and mobile workforce, which is highly sought after by other sectors such as renewables and technology. In fact, a staggering 80% of professionals in the sector have been approached for another job in the past year.
Among them, 40% reveal that over a quarter of these approaches came from industries outside of their expertise. Furthermore, 10% have been approached 16 or more times to apply for a position outside of their current company. This demonstrates the high demand and value placed on the skills and expertise of oil and gas professionals in various industries.
This highly sought-after workforce is also increasingly empowered to make career moves based on their personal interests, values, and the opportunities available to them.
A staggering 85% of professionals in the industry are considering switching to a different role, and while career progression remains the primary motivation, there is also a strong interest in joining sectors that are at the forefront of sustainability and innovation.
Renewable energy is the most popular sector, with 49% of professionals considering it, followed by technology at 27%, which is the most popular choice outside of the industry.
What factors contribute to job satisfaction?
The GETI survey asked oil and gas professionals about what has the most positive impact on their job satisfaction.
The top five identified were:
Relationship with colleagues
Now, let's take a look at the complete list, ranked in order of importance:
Download the full report
Would you like to know more about the trends expected to shape the oil and gas sector in 2023? You can get all the insights you need, plus information on trends across the rest of the energy industry, in the 2023 GETI report. Download it for free today.
This post was written by: Raphael Santos, Content Marketing Coordinator