Salary Guide

A new salary guide produced by recruiting firm Hays Oil & Gas and jobsite Oil and Gas Job Search has revealed that for 2014, the primary challenge facing two-thirds of UK employers in the oil and gas industry is skills scarcity.

The latest ‘Oil and Gas Global Salary Guide’ stated that 68.1% of employers in the oil and gas industry plan to increase headcount in 2014.

Based on data collected from 24,000 respondents, the increase in headcount is expected to add pressure to increase salaries in order to attract candidates.

For 2015, an upturn in salaries is expected as predicted by 83% of employers, as hiring managers vie for top talent and focus on benefits.

Over the last 12 months, the number of employees receiving benefits grew by more than 7% as employers look to bolster compensation packages with incentivised bonuses or attractive pension plans.

Respondents in the UK indicated that as part of their remuneration package 27% of employees are offered bonuses, 25% pension plans and 19% have private health plans.

In 2013, salaries flattened for the first time in three years, but the confidence of employers in the market is high, with 72% of hiring managers indicating a positive outlook on the industry.

Hays Oil & Gas director Ed Allnutt said: "Salaries in the UK have held up well in a tough climate but with such an improvement in employers’ outlook and more positive sentiment, we are expecting 2014 to provide plenty of opportunities for professionals.

"Respondents in the UK indicated that as part of their remuneration package 27% of employees are offered bonuses, 25% pension plans and 19% have private health plans."

"Professionals with very niche skills and experience can command high salaries and are highly sought after and this will become more widespread over the coming months."

Skills shortages, which continue to plague the oil and gas industry, are said to be a concern for employers, and measures are underway to tackle them.

The guide reveals that local average salaries in the UK for 2014 have increased by 0.85%, whereas salaries for imported talent declined by 1.4% against 2013.

The global oil and gas industry has seen a fall of 1% in salary levels from 2013, which can be attributed to a market correction after a particularly buoyant two-year period of increases within the industry.

Oil and Gas Job Search managing director Duncan Freer said: "Whilst the overall level of increase in pay in the UK has slowed, the government has taken steps to welcome further business and investment in the UK by announcing a new tax allowance aimed at boosting the development of shale gas resources in the UK."


Image: Increase of headcount in the oil and gas industry is expected to add pressure to increase salaries to attract candidates. Photo: courtesy of nongpimmy/FreeDigitalPhotos.net.

Energy