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‘key jobs need key people’Copyright 2005: Worldwideworker Copyright 2005: Worldwideworker
Recruitment trendsRecruitment trends
TanjaTanja OldenzielOldenziel Dubai, May 25Dubai, May 25thth, 2005, 2005
Good evening ladies and gentlemen.
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Copyright 2005: Worldwideworker Copyright 2005: Worldwideworker ‘key jobs need key people’
OverviewOverview
IntroductionIntroduction
Salary trendsSalary trends
Discipline shortageDiscipline shortage
SummarySummary
In the next 20 minutes I will tell you about recruitment trend in the oil and gas
industry. I will show salary data and discuss the discipline shortage. We all know
and hear about this shortage. I will put some facts and figures to it. I will concludewith the status of the industry from a recruitment perspective. I first give you an
introduction on Worldwideworker and myself.
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Copyright 2005: Worldwideworker Copyright 2005: Worldwideworker ‘key jobs need key people’
Worldwideworker Worldwideworker
Recruitment for oil/gas industryRecruitment for oil/gas industry
Active job website Active job website
300300 oil&gasoil&gas jobs/month jobs/month
6000 hits/day6000 hits/day
130.000 oil/gas professionals130.000 oil/gas professionals
Dutch companyDutch company
Worldwideworker is the recruitment company in the oil and gas industry. Most of
our recruitment is online via our active job website and database. We place
around 300 oil and gas jobs every month, and we get around 6000 hits everyday,from companies and candidates. In our database there are close to 130.000 oil
and gas professionals; some directly looking for a job, some waiting for the ideal
opportunity. We are a Dutch company. Not that it really matters, we have an
international presence. For us, it does not matter if we source a German
company building a factory in Pakistan, or find a very skilled professional in the
Philipines for Shell to complement their team in South America. Worldwidewokrer
is there for companies to help them find the right people, and Worldwideworker is
there for the candidates to help them find jobs.
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TanjaTanja OldenzielOldenziel
Worldwideworker Worldwideworker
Upstream manpower (TEAM) & recruitmentUpstream manpower (TEAM) & recruitment
GeoscientistGeoscientist
“Time“Time--lapse seismic within reservoirlapse seismic within reservoir
engineering”engineering”
What do I do within Worldwideworker? I am in charge of upstream manpower,
called TEAM. With a very dedicated approach we place individual consultants or
a team of consultants. Before joining Worldwideworker, I used to work as ageoscientist on multi-disciplinary projects, mainly in reservoir characterization. I
have my MSc degree in Petroleum Engineering and did my PhD in “Time-lapse
seismic within reservoir engineering”.
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Copyright 2005: Worldwideworker Copyright 2005: Worldwideworker ‘key jobs need key people’
OverviewOverview
IntroductionIntroduction
Salary trendsSalary trends
Discipline shortageDiscipline shortage
SummarySummary
Let’s have a look at the salary data. This is what all of you are interested in, what
am I earning compared to my colleague, is my salary industry standard. And for
the students among us, you can have in idea what you will be earning in thefuture. Before I continue, please be aware that I show average numbers and we
are talking about the base salary. It does not mention whether people also get a
housing allowance, a company car, or if school fees are paid.
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Regional SalaryRegional Salary
In this slide you see the average salary in the Middle East for few job titles. These
salaries are for people with more than 15 years of experience
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Regional SalaryRegional Salary
In this slide, the average salary for 15 years plus experience is given for different
regions compared to the Middle East: North America, Europe, Asia and North
Africa. People in North America and Europe are more expensive, while people in Asia and North Africa are willing to work for a lower salary. This is what you see
reflected in the industry. Companies with a very tight budget go looking for Asian
and people from the Middle East. While the companies who can afford to spend a
bit more, are willing to hire Americans and Europeans.
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Reservoir engineer Reservoir engineer
globally
UAE
Let’s look at what a reservoir is earning. You see a breakdown for the years of
experience. On average, they earn 6300 USD/month. The same overview is
given for the UAE as well. Just have a look at the numbers and see where youstand.
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Drilling engineer Drilling engineer
globally
UAE
A drilling engineer is earning the same 6300 USD/month on average.
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GeologistGeologist
globally
UAE
The geologist is earning a 5600 USD/month. I can continue to show these types
of slides for all the 900 job titles in our database. I will not bore you with that. I
know you rather digest food than numbers. When you register atWorldwideworker, which is free of charge, you can get these numbers yourself
via the salary checker, which is also free-of-charge. If you worried about your
details being out there, you can register confidentially. None of your details will
ever be revealed to any company unless you do so yourself.
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Salary increaseSalary increase
Do you get an increase in 2004?
Last February we did a survey among the candidates in the database. Some
5500 candidates replied. We asked them dozens of questions. One of which was
if they received a pay raise last year. About 70% received up to 5%. Of which40% did not receive any raise. So, count your blessings if you received more than
that. Or be one of the many.
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Salary increase cont’dSalary increase cont’d
Do you expect an increase in 2005?
We asked the same group if they expect a pay raise next year. I plotted the data
such, that it is sorted according to the raise they got last year. 70% of the people
that did not get a raise, do not expect one either next year. Same goes for themajority of the people receiving up to 5%, they expect the same this year. So
does the group up to 10% increase.
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OverviewOverview
IntroductionIntroduction
Salary trendsSalary trends
Discipline shortageDiscipline shortage
SummarySummary
So far the salary data. We all know there will be a discipline shortage in the oil
industry. We have read about it in the newspaper, and technical magazines. In
the oil industry, the workforce is 10 years older on average, with not enoughyoung people getting in, and the activity is increasing. I will put some fact and
figures to the upcoming shortage.
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Demand Oil industryDemand Oil industry
globally
First I show you an overview of the jobs we have put on our website in the last
years. It is sorted per disciplines in the oil industry. The majority of the jobs are in
either Exploration and Production or Engineering and Construction. In the nextslides, I will focus on Exploration and Production, as this is what we are all
working in.
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Demand per job titleDemand per job title
globally
Let’s have a look at the breakdown per job title. I have chosen typical job titles in
the upstream part if the industry. Again you see a slow 2003, and from there in
increase in demand for most job titles. This is a global overview.
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Demand per job title in MEDemand per job title in ME
Middle East
Also for the Middle East, the demand is increasing for most job titles. Although for
some it is going down.
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Registration (global)Registration (global)
globally
Drilling Engineer 3300
Geologist 4300
Geophysicist 2800
Geoscientist 3500
Petroleum Engineer 5600
Petrophysicist 1300
Production Engineer 5100
Reservoir engineer 3500
On one hand Worldwideworker has an insight into the company demand. On the
other hand, we have our database of professionals. Over the last years we see
that the new registrations are decreasing. This graph shows the new registrationsglobally per year for the same job titles as shown previously in the demand
graphs. For most of the job titles you see that we are not getting as many new
candidates. This means we have to fill the increasing demand from the same pool
of people which is only growing slowly. It does not mean the amount of
candidates is decreasing. On average we have about 3000 to 4000 professionals
per job title.
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Registration (USA)Registration (USA)
USA
If we look at the new registrations for the USA, you see the amount of new
registrations is decreasing dramatically. In the US the discipline shortage is
already being felt greatly. And that also amount for the trend. These days,professionals are directly headhunted and do not need sites like Worldwideworker
so much anymore. In 2002 with the low oil price that was a different story. Many
were not secure of their job and wanted to make sure that were aware of other
job opportunities.
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Average age in oil industryAverage age in oil industry
SPE & all US Engineersage demographics
0
5
10
15
20
25
30
35
40
20-29 30-39 40-49 50-64 65+
Age range
%
SPE 1997
SPE 2002
US ENG 1999
Retirement wave in 5-10 years!
The average age in the industry is roughly 10 years higher than in other
engineering industries. This will cause a retirement wave. When asking the
candidates in the survey “When would you like to retire?”, it turns out that 50%will retire more than 10 years from now. In other words, 50% will retire within the
next 10 years!!! If people work about 40 years in their career, you only expect
25% retirement every 10 years.
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Discipline shortageDiscipline shortage
Company demand increasesCompany demand increases
Registration decreasesRegistration decreases
Retirement wave in 5Retirement wave in 5--10 years10 years
“Delegates were more concerned with finding“Delegates were more concerned with finding
people and supplies than in finding business”people and supplies than in finding business”
Eldon Ball (Editor, Offshore)Eldon Ball (Editor, Offshore)
So, there is increased activity in the industry which is reflected in an increased
demand. On the other hand, we see a decrease in new candidates registering on
our website. And 5-10 years a retirement wave will hit the industry. These days,every company seems to recruit and it is often easier to find business than to find
people to staff them.
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Talent poolTalent pool
Short termShort term
Global sourcingGlobal sourcing
SPE Membership regional split
0%
20%
40%
60%
80%
100%
20-29 30-39 40-49 50-64 65+
Age ran ge
Developing Regions
N-America & Europe
How can we increase the talent pool? On the short term, we need to benefit from
global sourcing. In Asia, Middle East and South America there a lot new people
joining the industry, and willing to work internationally. We should help thesepeople find a job. If you look at the breakdown of the SPE members in Europe/US
and developing region, you see that the younger generation sees a higher
representation from the developing regions.
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Talent poolTalent pool
Short termShort term
Global sourcingGlobal sourcing
RetireesRetirees
Second we need to employ the people that have and soon will retire. When we
ask the candidates, are you willing to work in the industry after you have retired,
80% says yes! If they would work only 3-4 months a year, we increase our talentpool considerably. And why wouldn’t they be working? These days, you can
easily work from home for most jobs.
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After retirementAfter retirement
Do you plan to work as consultant?
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Talent poolTalent pool
Short termShort term
Global sourceGlobal source
RetireesRetirees
ConsultantsConsultants
. Thirdly, we need to use the consultant’s workforce more efficiently. At the
moment, they often have slow periods of a few months in between jobs. If we can
get them to start a new project faster, we will again increase the talent pool.
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Talent poolTalent pool
Short termShort term
Global sourcingGlobal sourcing
RetireesRetirees
ConsultantsConsultants
Long termLong term
Attract people to oil industry Attract people to oil industry
Develop young talentDevelop young talent
Employees are a valuable resourceEmployees are a valuable resource
In the long run, we have to attract people to the industry, develop young talent
and start treating our employees as valuable resource.
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OverviewOverview
IntroductionIntroduction
Salary trendsSalary trends
Discipline shortageDiscipline shortage
SummarySummary
This brings me to reflect on the current situation in the oil industry from a
recruitment perspective.
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Past 20 yearsPast 20 years
Industry has matured.Industry has matured.
Industry has consolidated.Industry has consolidated.
People force has shrunk.People force has shrunk.
The last twenty years the oil industry has matured and consolidated. We now
have the super majors, ExxonMobil, BPAmoco, TotalFineElf, and the huge
service companies Schlumberger, Halliburton, Baker Hughes. The workforce hasbeen reduced to half its size 20 years ago. A lot have people have been laid off in
different cycles. This has not done any good to the loyalty of employees. Either
they have been laid off themselves or they know about friends and colleagues
who have been. These days employees are looking for more in a company than
high salary, they look for trust, appreciation.
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Reason to change companyReason to change company
28% 27%
In the survey we asked what the reason would be to change jobs/companies.
Only 28% is motivated by a higher salary. People are concerned about job
security, are fed up with mismanagement of the current company, or want a moreinteresting job.
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Best Company to work for Best Company to work for
Retain peopleRetain people
Attract people Attract people
EthicsEthics
Companies are trying to retain their employees and attract new people. They
should be aware of what drives the people. A company is not an entity. It is made
up of the employees. A company does not fire somebody, a person does. Acompany does not spill oil, a company does. A company does not screw up the
books, a person does. If an employee is proud of his company, feels appreciated,
part of a family and is secure about his job, he or she is less likely to make these
type of missteps. Hence, business ethics directly affect the bottom line!
And it will be a major advantage in the war for talent.
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Best Company to work for Best Company to work for
WegmansWegmans Food MarketFood Market
(30,000 employees, 3 billion revenue)(30,000 employees, 3 billion revenue)
WHAT MAKES IT SO GREAT?WHAT MAKES IT SO GREAT?
The unusual motto of this privatelyThe unusual motto of this privately
held grocery chain is "Employees first,held grocery chain is "Employees first,
customers second."customers second."
TheThe WegmanWegman family's rationale: Whenfamily's rationale: Whenemployees are happy, customers will be too.employees are happy, customers will be too.
Fortune Magazine 2005
Let’s have a look at what the best company is to work for. According to Fortune
Magazine, the best company to work for is Wegmans Food market. Why. They
have a simple motto: employees first, customers second. They reason that if theemployees are happy, customers will be too.
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Best Company to work for Best Company to work for
Only one energy co. in US top 100Only one energy co. in US top 100
Valero Energy (16,000 employees)Valero Energy (16,000 employees)
WHAT MAKES IT SO GREAT?WHAT MAKES IT SO GREAT?
This 25This 25--year year --old oil refiner and gas retailerold oil refiner and gas retailer
has never laid off an employee. And when ithas never laid off an employee. And when it
comes to bonuses, the lower levels aren'tcomes to bonuses, the lower levels aren't
forgotten: Executives receive theirs only ifforgotten: Executives receive theirs only if
everyone else in the organization does.everyone else in the organization does.
Fortune Magazine 2005
In the US top100 there is only one energy company. It is not Shell, BP, Exxon, or
any of the independents. It is not Schlumberger, Baker or Halliburton. It is Valero
Energy. Ever heard of them? They never laid of one employee in the last 25years and when it comes to bonuses, they first give to their employees and then
to the managers, if any is left.
Both companies follow a different approach. This type of approach will probably
become rule rather than exception as people are the most difficult to find
resource in the years to come.
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Oil & Gas appealOil & Gas appeal
Few will switch industry
Many like Oil & Gas!
Before I conclude, I want to share with you that as an industry we are not doing
bad. When asked, 40% finds working in the industry fantastic and another 40-
50% good. Few will switch industries.
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ConclusionConclusion
Oil industry is used to downsizing, firingOil industry is used to downsizing, firing
people and having enough peoplepeople and having enough people
At the moment, oil industry is At the moment, oil industry is
fundamentally understaffedfundamentally understaffed
Talent is difficult to findTalent is difficult to find
Salaries are going upSalaries are going up Industry mindset will changeIndustry mindset will change
This brings me to my conclusion. In this lecture I have painted a picture of the
industry from a recruitment perspective. The oil industry has been used to
downsizing, firing and having enough people. At the moment, however, theindustry is fundamentally understaffed. Professionals are difficult to find and will
become even more so. We see salaries going up. But his will not be enough. The
mindset of the industry will change. Companies are changing or will be changing
soon in the way they treat their (future) employees. And that is good news to all of
us, isn’t it?
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The War for Talent has started!The War for Talent has started!
Leave me to say: The war for talent has started.
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Worldwideworker Worldwideworker thanks youthanks you
for your time andfor your time and attentionattention
Thanks for your time and attention.
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