By Stephen Preng, Director, Energy Careers
As the energy industry invests capital/cash flow derived from higher oil and gas prices to meet the increasing global thirst for oil, companies are working feverously to secure the talent they need. This extraordinary period in our industry has created many job openings that should entice candidates interested in professional growth and increased financial compensation.
Employment, always subject to shifts and changes, has experienced several turns in the last two decades. Prior to energy employment’s current ascent, many within the industry felt the trend of downsizing and market pinch. However, hiring in the present climate is still challenging.
In searching for the best employees, many energy companies hire consulting firms that focus exclusively on the energy industry and utilize innovative “matching” technology. This technology is especially important in mid-level energy placements. However, resume credentials are only one part of the placement process. Today, companies look for employees who will thrive within their specific organizational structures as well as fit within the corporate cultures.
These factors permeate all types of placements at all levels of energy companies, but hands-on experience is still a must-have for technical workers seeking new positions midway through their careers. However, companies today are not as focused on specific education credentials as they have been in the past. Moreover, some companies are now willing to provide training for technical workers who may not have the background desired. For example, many employers now hire chemical engineering graduates and then train them to be petroleum engineers.
Additionally, in today’s market, a long-term employment history with one company is greatly favored by employers looking to hire people not just for today, but also with an eye to the future. This can be daunting for field experts who have developed a portfolio of project-based consulting jobs, but lack long-term corporate histories.
The shortage of talent in the applicant pool generally bodes well for newly emerging graduates entering the job market and technical and support workers looking for new opportunities throughout the sector. Not only are energy companies trying to fill more positions, but concerns about long-term growth and leadership succession have also led to more incentive-based offers in hopes of retaining top talent well into the future.
In the last few years, ENERGY CAREERS has placed more candidates in better-paid positions, and even entry-level employees are enjoying the good fortune of the industry. It is common for an individual to earn $75,000 - $80,000 straight out of undergraduate programs; this is a significant step up from starting salaries of approximately $55,000 five to ten years ago.
Financial compensation throughout the energy industry continues to rise. And, while stock options and other long-term incentives are often offered as part of compensation packages, some companies focus on salary over non-liquid incentives to recruit the best and brightest to their firms. This has been particularly successful in bringing younger employees to the table, as immediate cash flow has more perceived value than long-term investments for this demographic.
Many companies throughout the industry are reputed for their generous pay scales, though others are just now becoming more competitive to recruit and retain the most qualified employees from the relatively small talent pool. There are two schools of thought on financial incentives for talent; while some companies opt to lure new employees with large salaries, others offer technical bonuses based on performance to reward successful endeavors.
With the globalization of the energy industry, candidates and companies have opportunities to find the right job or employee anywhere in the world. While there are increased opportunities in the United States, more and more work is available abroad, most notably in the Former Soviet Union (FSU). American companies continue to be attracted by this resource-rich area and are in need of not only technical workers from the local workforce, but also middle and upper management from the United States and Europe. While overseas opportunities are usually attractive to only a handful of ExPats and younger candidates, inflated compensation is luring additional talent to the FSU and other foreign oil and gas strongholds.
As the industry continues on a plateau of prosperity, employer-desired skill sets, education and experience continue to evolve. And, while headway is being made in better preparing both new graduates and old hands for the challenges of today and tomorrow, the shortage of talent throughout the industry will remain an ongoing problem. Oil companies, partnering with educational institutions, are attempting to address these challenges for the long-term, but candidates have unprecedented opportunities for higher compensation and professional development today.
