UK Oil and Gas Salary Survey What are you worth?

Transcription

1 UK Oil and Gas Salary Survey 2015 What are you worth?

2

3 Introduction Welcome to the 2015 edition of the Nigel Wright Energy UK Oil and Gas Salary Survey. As a company that is at the core of recruitment in the oil and gas sector, it is essential that we acknowledge market movements and understand the effects these changes have on employment and the overall business environment. Due to the effect that these fluctuations will ultimately have on any company s recruitment strategy, we want to provide our clients with the most up-todate information available. The impact of the falling oil price (currently at $43 per barrel as we go to print) has undoubtedly had a huge impact on the industry, with energy companies slashing capital expenditure and, unsurprisingly, making other cost savings through large scale redundancies. It s a rude awakening, but some argue it s a much needed readjustment in the industry. Businesses seeking to succeed in this environment will need to be increasingly agile and look for opportunities to diversify while they wait for demand to return to the market. While salaries increased on average by 5% last year in our survey, this year salary increases have plummeted to an average of 2.3%, with many roles and levels experiencing declines. Similarly, the number of respondents receiving personal and company performance related bonuses has also fallen, with those that did receive bonuses last year generally assuming that they either wouldn t receive one in their next review, or that the percentage of their bonus next time round would likely decline. This was apparent at all levels. Market conditions certainly seem to have affected those at non-management level the most, with over half of respondents working at that level indicating they are dissatisfied with their current role; that s an increase of over 30% compared to last year, with overall job dissatisfaction rising by 17% overall. Clearly, there is increased pressure being put on employees to deliver more for less and those lucky to be in jobs, but who are unhappy, are certainly willing to explore other opportunities. We ve seen a significant rise in the number of candidates contacting us and it was reassuring to see that the value of using recruiters has actually increased by 8%. Last year it was already apparent that employers were becoming wise to the imminent wage inflation problem, by being creative around the benefits packages they offered prospective candidates. This year, with salaries and bonuses taking a hit, respondents to our survey indicated that factors such as new challenges, as well as flexible working and holiday entitlement, were considered more important than bonuses and increased remuneration. With market conditions not likely to change in the short to medium term, businesses will likely find it easier to incentivise prospective candidates with unconventional benefits packages. The information in this survey has been gathered from over 1000 respondents who completed our online survey in the first quarter of 2015, as well as data from our own extensive networks. This provides us with a large data-set allowing us to understand in more depth the average salaries and the types of benefits people working within the oil and gas industry receive, as well as the opinions of those in the sector regarding why people move jobs and the methods that they utilise to search for a new job We hope you enjoy reading the report and find the perspectives offered useful. Should you have further questions, please do not hesitate to contact a member of our team who would be more than happy to clarify any of the information presented. ANTHONY BROADHEAD COUNTRY MANAGER - ENERGY UK Oil and Gas Salary Survey

4 Contents 1. Executive summary Non-monetary indicators Weekly hours worked by discipline Job satisfaction by job level Intention to move jobs Factors influencing a change of roles Methods used to search for a new role Salary, benefits and bonuses Average percentage of salary increase received by level Importance of benefits as part of a remuneration package Overall benefit and bonus entitlement Company performance related bonus, received and expected, by level Personal performance related bonus, received and expected, by level Skills and views Perception of oil and gas industry skill shortages Perception of the skills and qualities you need to be successful by discipline Analysis of salaries in relation to discipline C-Level/Managing Director/General Manager Technical (Projects/Engineering) Supply Chain, HSEQ, Planning Commercial (Sales, Marketing, Business Development, Contracts, Tenders & Bids) Support (HR, Finance) Contact details UK Oil and Gas Salary Survey 2015

5 1. Executive summary Respondents Profile Male: 85% BASE: Female: 15% Average age: 43 (Range: 21-70) 64% are educated to degree level or above 15% hold a professional qualification such as CEng. UK Oil and Gas Salary Survey

6 Company And Employee Profile Forty six percent of respondents are employed by companies with over 500 employees. Thirty five percent work for companies with more than 1000 employees. Twenty eight percent are employed by companies with a turnover greater than 500 million. Thirty nine percent work for companies with a turnover in excess of 100 million. Respondents are involved in all of the major oil and gas sub-sectors covering Reservoirs, Wells, Facilities, Subsea and Marine and Support Services. Work History And Job Satisfaction Forty percent of respondents have worked for their current employer less than two years. Twenty six percent have been with the same company for more than five years. On average, respondents work 46 hours per week. The majority of respondents were either satisfied (20%) or moderately satisfied (37%) with their current job. However 21% described themselves as moderately dissatisfied, while a further 4% indicated they were very dissatisfied. Basic Salary, Excluding Benefits And Bonuses The average salary, excluding benefits and bonuses, received by respondents was 76,000, with salaries ranging from between 35,000 at non-management level up to 250,000+ at C-Level. The majority of respondents were either satisfied (30%) or moderately satisfied (34%) with their current remuneration. Sixteen percent claimed to be very satisfied while 3% indicated they are very dissatisfied. Salary increase received and expected As part of their last salary review respondents received, on average, a 2.8% increase. Overall, respondents were expecting slightly less in their next salary review, with the average increase expected, falling to 2.6%. 06 UK Oil and Gas Salary Survey 2015

7 Job Seeking And Job Changing Seventy four percent of respondents would approach a recruitment company when searching for a new job. This was followed by directly approaching employers (56%). Social networking sites (36%) and job boards (36%) were also popular. New challenges (70%), increased remuneration (62%) and promotion (46%) were the most important factors for respondents, when looking to change jobs. Benefits Eighty seven percent of respondents receive some form of company benefit or bonus as part of their remuneration package. Respondents felt that the three most important employer benefits as part of a remuneration package were flexible working (44%), an employer contributory pension (44%) and holiday entitlement (43%). On average, employers contribute 6% to employees pensions via employer contributory pension schemes. Bonuses Company performance related bonus Seventy seven percent of respondents receive a company performance related bonus as part of their remuneration package, the average being 13%. This ranges from an average of 9% at non-management level to 28% at C-Level. Personal performance related bonus Twenty one percent of respondents receive a personal performance related bonus as part of their remuneration package, the average being 13%. This ranges from an average of 3% at non-management level to 19% at C-Level. UK Oil and Gas Salary Survey

8 UK Oil and Gas Salary Survey Non-monetary indicators

9 2.1 Weekly hours worked by discipline This section presents information from respondents from all disciplines and levels, on their working hours, levels of satisfaction and the factors that motivate them to change roles. Technical = (Projects, Engineering) Commercial = (Sales, Marketing, Business Development, Account Management, Contracts, Tenders & Bids) Corporate Functions = (HR, IT Finance) How many hours do you work in a week? Avg. No. Hours c level/md commercial corporate technical hseq planning supply chain functions Discipline On average, respondents work 46 hours per week. Fifty three percent of respondents work between hours per week and a further 14% work between hours per week. UK Oil and Gas Salary Survey

10 2.2 Job satisfaction by job level Respondents were asked to rate their level of job satisfaction on the following five-point scale: 1 = very dissatisfied 2 = moderately dissatisfied 3 = satisfied 4 = moderately satisfied 5 = very satisfied How would you rate your current job satisfaction? c-level/md senior management management non-management 60 % of respondents very satisfied moderately satisfied satisfied moderately dissatisfied very dissatisfied Level of satisfaction The results show a fairly satisfied workforce overall, although there are variations between the strength of respondents satisfaction. At management level and above over 70% of respondents at each level indicated they were at least satisfied in their roles. At non-management level, however, the majority (53%) of respondents indicated they were either very of moderately dissatisfied. 10 UK Oil and Gas Salary Survey 2015

11 2.3 Intention to move jobs Our survey highlighted that 40% of respondents had been with their current employer for less than two years. As expected, the intention to move jobs was also fairly consistent across the different respondent levels and disciplines. Forty six percent of respondents were in fact planning to change jobs within the next 18 months. If you are planning to change jobs in the future, when will this be? % of respondents changing jobs now (within a month or so) 0 within 6 months in the next 18 months in the next 2-3 years Timescales for moving jobs in 5 years+ not planning to change jobs UK Oil and Gas Salary Survey

12 2.4 Factors influencing a change of roles Respondents were asked to select the top three factors that would motivate them to change jobs. These were new challenges, increased remuneration and promotion. This was fairly consistent at all levels although results suggested at management and non-management level other factors such as work life balance and a change of culture were more attractive than promotion. What top three factors would motivate you to change your job? % of respondents new challenges increased remuneration promotion achieve an improved work-life balance different environment/culture flexible working Factor gain new skills change location change discipline 12 UK Oil and Gas Salary Survey 2015

13 2.5 Methods used to search for a new role Respondents were asked to select all methods that they would utilise when looking for a new role. Traditional methods of finding a job such as approaching recruiters or approaching employers directly still remain important to candidates working within the oil and gas industry. Social networking is also an increasingly important method for job seekers. Using social networking sites to identify job opportunities now surpasses the use of traditional media such as newspapers and magazines. What methods would you utilise to search for a new job? % of respondents recruitment consultancies direct approaches to employers social networking sites online job boards employer intranets networking regional or local newspapers trade magazines Factor UK Oil and Gas Salary Survey

14 UK Oil and Gas Salary Survey Salary, benefits and bonuses

15 3.1 Average percentage of salary increase received by level Salary increases were typically larger at the senior and middle management ends of the spectrum. Expectations for salary increases next year were fairly similar with the average declining slightly to 2.6%. The average salary, excluding benefits and bonuses, received by respondents was 76,000, with salaries ranging from between 35,000 at non-management level up to 250,000+ at C-Level. The majority of respondents were either satisfied (30%) or moderately satisfied (34%) with their current remuneration. Sixteen percent claimed to be very satisfied while only 3% indicated they are very dissatisfied. What percentage increase did you receive at your last review? 5 Average % salary increase % 2.3% 3.0% 3.2% 2.2% 0 overall c-level/managing director director/senior management Factor management non-management UK Oil and Gas Salary Survey

16 3.2 Importance of benefits as part of a remuneration package Respondents were asked to select their top three preferences towards benefits and bonuses. Respondents indicated a slight preference for flexible working and holiday entitlements over factors such as bonuses and share options. This was consistent across the different levels and disciplines. In your opinion, what are the top three most important benefits? % of respondents employer contributory pension 0 flexible working holiday entitlement bonus - company performance bonus - personal Benefit share options health insurance car allowance non-contributory pension company car and petrol childcare allowances career breaks/sabbaticals 16 UK Oil and Gas Salary Survey 2015

17 3.3 Overall benefit and bonus entitlement Overall 87% of respondents receive some form of benefit or bonus. The most common being a pension (97%), Healthcare (90%) and a company bonus (59%). On average, employers contribute 6% to employees pensions via employer contributory pension schemes. Do you get any company bonuses or benefits? % of respondents pension healthcare company bonus car allowance personal bonus Benefit UK Oil and Gas Salary Survey

18 3.4 Company performance related bonus, received and expected, by level Seventy seven percent of respondents receive a company performance related bonus as part of their remuneration package, the average being 13%. This ranges from an average of 9% at non-management level to 28% at C-Level. What was/is the value of your last/next company performance related bonus? received expected 30 % of bonus overall c-level/managing director director/senior management management non-management Job Title 18 UK Oil and Gas Salary Survey 2015

19 3.5 Personal performance related bonus, received and expected, by level Twenty one percent of respondents receive a personal performance related bonus as part of their remuneration package, the average being 13%. This ranges from an average of 3% at non-management level to 19% at C-Level. What was/is the value of your last/next personal performance related bonus? 30 received expected % of bonus overall c-level/managing director director/senior management management non-management Job Title UK Oil and Gas Salary Survey

20 UK Oil and Gas Salary Survey Skills and views

21 4.1 Perception of oil and gas industry skill shortages Respondents were asked to select as many of the skills listed below, that they perceived are lacking in the oil and gas industry. What skills shortages do you perceive there to be in your industry? % of respondents right attitude/personality industry knowledge and experience communication skills commercial acumen professional/industry qualifications professional manner literacy and numeracy skills none Skills/attributes Respondents highlighted that having the right attitude and personality (54%), industry knowledge and experience (49%), communication skills (44%) and commercial acumen (44%) were the four key attributes that people often lack in the industry. C-Level executives (75%) in particular considered the lack of industry knowledge and experience to be particularly concerning. UK Oil and Gas Salary Survey

22 4.2 Perception of the skills and qualities you need to be successful by discipline Technical = (Projects, Engineering) Commercial = (Sales, Marketing, Business Development, Account Management, Contracts, Tenders & Bids) Corporate Functions = (HR, IT Finance) What traits are needed to be successful in your career? C LEVEL/MD TECHNICAL PLANNING SUPPLY CHAIN HSEQ COMMERCIAL SUPPORT OVERALL Flexible/adaptable 75% 68% 36% 47% 70% 69% 74% 69% Action oriented 83% 46% 34% 20% 69% 21% 72% 53% Self sufficient/ independent Confident/self assured Excellent communicator 33% 71% 16% 49% 40% 52% 57% 51% 83% 54% 95% 89% 49% 38% 54% 60% 92% 64% 68% 53% 25% 63% 82% 69% Self starter 42% 32% 20% 22% 19% 11% 38% 29% Cope well under financial insecurity 25% 18% 10% 9% 11% 9% 36% 17% Great networker 42% 29% 33% 34% 35% 24% 19% 26% Professional knowledge 58% 71% 67% 79% 78% 41% 75% 67% Overall, the ability to be flexible and adaptable (69%) and an excellent communicator (69) were perceived to be the most important qualities to have in the oil and gas sector. Those at C-level, however, believed being action oriented (83%), confident and self-assured (83%) were more essential at the top. Interestingly, those working in operations roles believed communication (68%) and professional knowledge (67%) to be paramount. Commercial and support functions valued flexibility (69%/74%) and self-sufficiency (52%/57%). 22 UK Oil and Gas Salary Survey 2015

23 UK Oil and Gas Salary Survey Analysis of salaries in relation to discipline

24 5.1 C-Level/Managing Director/ General Manager Job Title Range Average Basic Salary C-Level 90, , ,000 Managing Director/General Manager 70, , ,000 Salary ranges are broad and reflect the wide range of companies within the oil and gas sector. These results should therefore only be used as a guide. For further information on your recruitment needs or on a particular role within this discipline, please contact one of our consultants on Technical (Projects/Engineering) Job Title Range Average Basic Salary Projects (Non-Management) 30, ,000 47,000 Projects (Management) 30,000 80,000 59,000 Projects (Director/Senior Management) 40, ,000 86,000 Engineering (Non-Management) 25, ,000 52,000 Engineering (Management) 60,000 70,000 65,000 Engineering (Director/Senior Management) 40, ,000 85,000 Salary ranges are broad and reflect the wide range of companies within the oil and gas sector. These results should therefore only be used as a guide. For further information on your recruitment needs or on a particular role within this discipline, please contact one of our consultants on UK Oil and Gas Salary Survey 2015

25 5.3 Supply Chain, HSEQ, Planning Job Title Range Average Basic Salary Supply Chain (Non-Management) 40,000-50,000 45,000 Supply Chain (Management) 40,000-60,000 50,000 Supply Chain (Director/Senior Management) 80, ,000 90,000 HSEQ (Non-Management) 30,000-40,000 35,000 HSEQ (Management) 55,000-75,000 60,000 HSEQ (Director/Senior Management) 90, ,000 95,000 Planning (Non-Management) 40,000-50,000 45,000 Planning (Management) 50,000-70,000 60,000 Plannning (Director/Senior Management) 70,000-80,000 75,000 Salary ranges are broad and reflect the wide range of companies within the oil and gas sector. These results should therefore only be used as a guide. For further information on your recruitment needs or on a particular role within this discipline, please contact one of our consultants on UK Oil and Gas Salary Survey

26 5.4 Commercial (Sales, Marketing, Business Development, Contracts, Tenders & Bids) Job Title Range Average Basic Salary Sales (Non-Management) 40,000-50,000 45,000 Sales (Management) 50,000-80,000 70,000 Sales (Director/Senior Management) 80, , ,000 Marketing (Non-Management) 30,000-50,000 40,000 Marketing (Management) 50,000-80,000 70,000 Marketing (Director/Senior Management) 80, ,000 90,000 Business Development (Non-Management) 45,000-55,000 50,000 Business Development (Management) 60,000-90,000 70,000 Business Development (Director/Senior Management) 100, , ,000 Contracts (Non-Management) 50,000-60,000 55,000 Contracts (Management) 60,000-90,000 70,000 Contracts (Director/Senior Management) 100, , ,000 Tenders & Bids (Non-Management) 30,000-45,000 35,000 Tenders & Bids (Management) 45,000-70,000 55,000 Tenders & Bids (Director/Senior Management) 70, ,000 75,000 Salary ranges are broad and reflect the wide range of companies within the oil and gas sector. These results should therefore only be used as a guide. For further information on your recruitment needs or on a particular role within this discipline, please contact one of our consultants on Support (HR, Finance) Job Title Range Average Basic Salary HR (Management) 40,000-60,000 50,000 HR (Director) 60, ,000 85,000 Finance (Management) 70, ,000 80,000 Finance (Director) 90, , ,000 Salary ranges are broad and reflect the wide range of companies within the oil and gas sector. These results should therefore only be used as a guide. For further information on your recruitment needs or on a particular role within this discipline, please contact one of our consultants on UK Oil and Gas Salary Survey 2015

27 6. Contact details For more information on the UK Oil and Gas Salary Survey 2015, please contact the Nigel Wright Energy team on the details below: Newcastle office Lloyds Court 78 Grey Street Newcastle upon Tyne NE1 6AF Aberdeen office Riverside House Riverside Drive Aberdeen AB11 7LH London office Palladia Central Court 25 Southampton Buildings London WC2A 1AL T: +44 (0) E: W: About Nigel Wright Energy Nigel Wright is a trusted recruitment partner to the global oil and gas sector. Our clients are diverse and range from local niche suppliers to multi-national, global leaders. Founded in 1988 in Newcastle upon Tyne, we now have established offices in London, Aberdeen, Teesside, Paris, Dusseldorf, Madrid, Copenhagen, Aarhus, Stockholm, Malmo, Oslo and Dubai. With a core focus in Oil and Gas on a global scale, we work across the whole oil and gas project life cycle, from exploration and production to decommissioning and abandonment. Our clients are involved in all of the major oil and gas subsectors covering Reservoirs, Wells, Facilities, Subsea and Marine and Support Services. They are spread throughout the supply chain and range from publicly listed global operators to private, equity backed SMEs and start-ups. We specialise primarily in the appointment of professionally qualified to executive board level talent in the areas of commercial, technical and corporate functions and offer a range of recruitment solutions including Executive Search, Preferred Supplier Solutions (PSS), Contract, Campaign Management and Talent Mapping. Our experienced consultants work closely with companies to recruit some of the most soughtafter professionals in the sector. Nigel Wright Energy is part of the Nigel Wright Group, a leading specialist consultancy operating in the dynamic global recruitment market. 27

28 A specialist consultancy operating within the dynamic global oil and gas market.