Oil & Gas Salary Guide | 23

INDUSTRY EMPLOYMENT
Diversity and Movement of Workforce
33.2% 66.8%
22.7% 77.3%
34.7% 65.3%
31.4% 68.6% Australasia
49.6% 50.4% Asia
27.5% 72.5% Africa
48.5% 51.5% Europe
38.0% 62.0% Russia and CIS
Middle East
North America
South America
Working overseas Working in home country
WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY
86.5% 13.5%
26.5% 73.5%
26.0% 74.0%
47.4% 52.6% Australasia
23.0% 77.0% Asia
28.4% 71.6% Africa
30.5% 69.5% Europe
50.8% 49.2% Russia and CIS
Middle East
North America
South America
Imported labour Local labour
IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE
MOVEMENT OF THE WORKFORCE
AGE DEMOGRAPHICS
WORKING AT HOME OR ABROAD
62%
Home
38%
Abroad
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Middle East dominated
by expatriates
Europe and Asia remain the
primary export of talent
24 | Oil & Gas Salary Guide
INDUSTRY EMPLOYMENT
Experience and Tenure
This year has seen a significant increase in the number of workers new
to the industry as companies are hiring more college graduates as well
as experienced workers to join their business from other industries.
However, years of experience of professionals within their current roles
have largely stayed the same with previous years.
With the baby boomer generation nearing retirement we could see an
exodus of professionals leaving the industry with vast knowledge and
skill sets. Employers can address this impending issue with appropriate
training and succession planning.
YEARS OF EXPERIENCE IN THE OIL AND GAS INDUSTRY
TIME IN CURRENT ROLE
YEARS OF EXPERIENCE FOR SPECIFIC DISCIPLINE AREAS
20+ years 10-19 years 5-9 years 0-4 years
Construction/
Installation
Project
Controls
Geoscience
Subsea/
Pipelines
36.0%
26.5%
23.0%
22.4%
26.4%
24.7%
30.1%
21.4%
16.2%
24.7%
19.0%
29.8%
21.4%
24.1%
27.9%
26.5%
35.6%
0-4 years
23.1%
5-9 years
21.7%
10-19 years
19.5%
20+ years
0%
20%
40%
60%
80%
100%
2011 2012 2013
26.0%
25.0%
28.7%
12.0%
8.3%
24.6%
29.2%
24.7%
13.7%
7.7%
23.4%
26.6%
24.9%
15.6%
9.5%
6 - 10 years
1-2 years
10+ years
3-5 years
Less than 1 year
Oil & Gas Salary Guide | 25
INCREASE IN HAYS JOB SEEKER MOBILE TRAFFIC 2012 VS 2013
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100%
150%
200%
250%
Job seeker mobile trafc usage
INDUSTRY EMPLOYMENT
Recruiting in the Digital Space
The following chart indicates the top three ways in which oil and gas
professionals find new jobs. Recruiting in the digital age means employers
need to cover all basis, having their jobs posted on multiple channels, so
that job seekers can easily navigate the job market.
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
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
only 5 per cent permit applying via mobile capabilities. A Simply Hired
survey found that mobile users click on 60 per cent more jobs and spend
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.
THE RISE OF ONLINE JOB BOARDS FOR JOB SEEKERS
MOBILE RECRUITING
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65 per cent of Hays countries
have experienced between
100 and 200 per cent+
increase in mobile trafc
compared to last year
85%
75%
69%
Online search Traditional networking Job board
Source: Study by Oil and Gas Jobsearch
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26 | Oil & Gas Salary Guide
INDUSTRY EMPLOYMENT
Employment Mix
Permanent hiring is at an all-time high compared to the results of our
past four salary guides. Areas where we are seeing the highest spike in
permanent staff levels are Global Super Majors and Operators. Both of
which are up by approximately 10 per cent compared to 2012.
Of note, Equipment Manufacturer & Suppliers were the only company
type to experience flat or declining percentages of permanent workers.
However, their permanent workforce percentage remains the highest out
of all company types.
EMPLOYMENT MIX BY COMPANY TYPE
Contractors
Consultancy
51.9%
50.6%
2.8%
3.3%
25.2%
27.3%
20.0%
18.8%
Oil Field Services
66.2% 3.4% 18.0% 12.4%
Equipment Manufacturer
& Supplier
EPCM
79.7%
62.2%
3.2%
1.4%
10.2%
21.7%
6.9%
14.8%
Operators
Global Super Major
69.0%
63.1%
2.2%
1.5%
12.4%
11.4%
16.4%
24.0%
Permanent Permanent/
part-time
Contracted
direct
Contracted
through
agency
Permanent hiring
on the rise
Fewer contractors
were engaged
with agencies
Oil & Gas Salary Guide | 27
INDUSTRY EMPLOYMENT
Employment Mix
PERCENTAGE CHANGE OF EMPLOYMENT TYPE FROM 2012 to 2013
-7.7%
-0.1%
-2.7%
10.5%
GLOBAL SUPER MAJOR
-0.1%
-0.3%
-2.9%
9.1%
EPCM
-3.0%
-0.1%
-2.3%
5.4%
OIL FIELD SERVICES
-3.9%
0.3%
-1.2%
4.8%
CONTRACTORS
-7.8%
0.8%
-2.5%
9.4%
OPERATORS
-0.1%
1.2%
-0.1%
-1.0%
EQUIPMENT MANUFACTURER & SUPPLIER
-7.6%
0.0%
-0.1%
7.6%
CONSULTANCY
Permanent Permanent/part-time Contracted direct Contracted through agency
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SECTION FIVE
INDUSTRY OUTLOOK
Long-term view is relatively strong, particularly for high potential
areas such as Brazil, the Gulf of Mexico, West Africa and the Arctic
28 | Oil & Gas Salary Guide
Skill shortages continue to be the main
concern for employers worldwide
Oil & Gas Salary Guide | 29
EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET
23.1%
33.8%
9.2%
7.9%
14.5%
9.4%
2.1%
Safety regulations
Economic instability
Security/safety
caused by social unrest
Immigration/
overseas visa program
Other
Environmental concerns
Skills shortages
30 | Oil & Gas Salary Guide
INDUSTRY OUTLOOK
Condence and Concerns
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
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
employers are concerned with economic instability and in North America,
40 per cent are concerned with skill shortages. In Africa economic
instability is equally as concerning as the potential of environmental
issues. Safety regulations remain an important concern here as well.
Skill shortages worldwide still plague the industry, however immigration
and overseas visa programs are less concerning to employers. Expect
competition on a global level for top talent as business activity gains
strength throughout 2014.
EMPLOYERS CONFIDENCE IN THE OIL & GAS INDUSTRY
EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET
South America
Australasia
Asia
Africa
All regions 33.8%
23.4%
31.5%
40.0%
25.8%
23.1%
19.6%
25.1%
27.7%
30.3%
14.5%
19.0%
13.3%
13.9%
21.0%
9.4%
9.3%
8.8%
6.4%
9.2%
9.2%
11.1%
12.4%
4.6%
3.9%
7.9%
16.1%
7.4%
3.3%
7.4%
2.1%
1.6%
1.6%
4.2%
Russia and CIS 29.2% 26.8% 13.5% 10.8% 6.3% 10.4%
3.0%
Middle East
North America
Europe 47.6%
30.2%
39.5%
21.4%
21.0%
23.8%
10.8%
13.9%
16.8%
4.1%
10.7%
6.9%
6.6%
11.5%
5.4%
6.8%
11.4%
4.5%
2.6%
1.3%
3.0%
2.3%
Skills
shortages
Economic
instability
Environmental
concerns
Safety
regulations
Immigration/
overseas visa
program
Security/safety
caused by
social unrest
Other
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 2013
43.6%
6.5%
34.1%
15.8%
11.8%
45.1%
33.4%
9.7%
26.7%
46.8%
20.8%
26%
47.8%
20.7%
26.1%
46.2%
21.5%
5.7% 5.5% 6.2%
Very positive
Neutral
Positive
Negative
Condence levels in next
years industry growth remain
high but have declined
slightly from last year,
reecting the caution that
has crept into the industry.
John Faraguna, Managing Director, Hays Oil & Gas
Oil & Gas Salary Guide | 31
INDUSTRY OUTLOOK
Focus for 2014
EMPLOYERS GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS, OUTSIDE THEIR OWN REGIONAL AREA
10.9%
11.6%
7.7%
8.7%
7.8%
9.6%
9.7%
21.2%
12.7%
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EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS
0%
20%
40%
60%
80%
100%
28%
26%
23%
19%
21.9%
28.1%
25.3%
21.6%
15.7%
20.9%
30%
32.4%
17.6%
24%
29.8%
27.4%
17%
24.2%
29.4%
27.6%
2009 2010 2011 2012 2013
Remain static
Increase between 5-10%
Decrease
Increase up to 5%
Increase more than 10%
Australia
With portions of the market remaining
at over 2013, employers are looking to
exhaust local resources before they will
consider sponsorship. Key technical areas
and skillsets specic to new technology
like FLNG and dynamic positioning
are new to Australia however, and as
such, employers are looking to overseas
markets for resources.
Paula Kirwan, Director, Hays Oil & Gas
North America
Hiring levels for both
permanent and temporary
professionals are predicted to
increase in 2014 as new projects
are approved. Although many
candidates will come from
the local market in Canada,
initiatives such as the new LNG
pipeline will require employers
to reach out internationally to
obtain all the skills needed.
Jim Fearon, Vice President,
Hays Oil & Gas
North Sea
Geoscience and subsurface professionals are in high
demand due to an emergence of projects over the last
12 months. These candidates with North Sea specic
development experience are in particular short supply
as they are typically recruited for projects overseas.
Employers in 2014 should plan ahead their recruitment
plans in order be prepared for this shortage.
Ed Allnutt, Director, Hays Oil & Gas
Asia
With a consistently high level of job ow
through-out the year, candidates are high
in demand causing wage pressures. In
an efort to keep costs from escalating
employers are utilising bonuses to keep
base salaries in check. We anticipate
much of the same for 2014.
Mike Wilkshire, Director, Hays Oil & Gas
Middle East
We have seen strong business activity
in 2013, and as planned projects come
on-line, we expect the Middle East to be
a hive of recruitment of activity over the
next year. The labour market is forecast
to remain stable for local candidates
but increase for imported talent, as
employers look to overseas to source the
skills needed to support major projects
planned for 2014.
Gary Ward, Director, Hays Oil & Gas