FOR IMMEDIATE RELEASE:
Overall Oil, Gas Wages Flat, but Specialty Positions Still Command Top Pay: Rigzone Report with Chris Melillo of Kaye/Bassman International
Dallas, Texas, 4/26/2013:
Source: Rigzone Report – written by Karen Boman
Overall compensation for global oil and gas industry workers have been flat since 2010, according to data gathered from over 75,000 oil and gas professionals from January 2010 to December 2012 to measure trends in oil and gas worker earnings worldwide. However, compensation levels seen in the industry remain strong, particularly for workers with specialized skills, as global exploration and production is forecast to rise in 2013 and global oil prices to remain strong.
The mean compensation level seen for industry workers in Africa, Australia/Oceania, Asia, Europe, Middle East, North America and South America was $98,023 in 2010. The average compensation level rose slightly in 2011 to $98,862, but slipped to $98,079 last year.
Out of the seven regions, workers in the Australia/Oceania region earned the largest average compensation levels over the past two years with $123,161. Meanwhile, compensation levels of Middle East and North America oil and gas workers average the lowest compensation levels of $94,309 and $94,722 respectively.
In terms of change in average compensation from 2011 to 2012, workers in Africa, Europe and the Middle East saw a significant increase, while oil and gas workers in Asia and North America saw a significant decrease in their average salaries.
Workers with Specialized Skills Still Command Higher Compensation
In the North American oil and gas market, onshore and offshore specialists who are either in high demand or few qualified candidates who may fit the bill for certain positions could see an 18 percent to 21 percent increase in total compensation, said Chris Melillo, managing partner and practice leader with Dallas-based executive search firm Kaye/Bassman International Corp.’s energy practice.
Companies are drastically increasing total compensation levels due to companies’ very finite qualifications for offshore workers. While there may be several people who feel they could perform in the role, Melillo’s clients want “10 out of 10” on the checklist of experience, which has resulted in companies directly recruiting candidates from each other. The number of candidates who are actually qualified for open positions and at least in employed-but-looking mode for a job change is two to seven.
The surge in compensation for specialty roles has been balanced out somewhat by the drastic slowdown for onshore geology positions and a surplus of candidates in that specific area, Melillo commented. This slowdown is occurring as some companies switch their focus from exploration to production. The retirement of older workers who earned higher salaries – leaving behind younger workers making less – may also be behind the flattening of compensation.
To help with overall retention efforts, companies may be employing bumps in compensation of slightly higher than 4 percent. The long-term incentives plans are really the main financial drivers for retention-focused compensation efforts. Melillo notes that candidates on average are seeing a 12 percent to 15 percent increase in salary/compensation to make a lateral move. If it is also a job grade/title jump for that candidate, that number can move to a 22 percent to 25 percent jump.
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Founded in 1981, Kaye/Bassman has grown to become the largest single-site executive search and recruitment firm in the United States with the simple mission of impacting companies and enhancing careers by providing the finest in professional, executive, technical and scientific search. Kaye/Bassman provides strategic recruiting and executive search solutions in over 20 industry practice areas including construction recruiting, healthcare recruiting, banking executive search, energy recruitment and many more. Next Level Recruiting Training, a recruiting training organization, Next Level Exchange, a recruiting training best practices information exchange, and Next Level Marketing Communications are also Kaye/Bassman companies.
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