As Australia’s LNG projects on the east coast move from the investment and construction phase into operations, upstream industry body the Australian Petroleum Production and Exploration Association says there is still a need for overseas workers, and the fact that operators still foster traineeship programs indicates the shortage persists.
The financial uncertainty driven by the depressed price environment is one of the driving concerns for industry employers, almost just as much as the skills shortage which is also affecting employees’ choices in what appears to be an employees’ market.
Skills shortages were again the biggest concern for employers (30%) although economic instability was a close second (24%), reflecting the nervousness that had already crept into the industry when this survey was undertaken.
The discipline areas that saw the biggest uplift globally were piping (15.8%) and construction (12.1%), reflecting the need for skilled candidates as mega projects entered the construction phase.
Global salaries of survey participants increased 1.3% over salaries in last year’s guide, which also revealed that 29% cited inadequate succession planning for knowledge transfer and skills retention as the key cause of skills shortages within the industry.
“While potential layoffs could lessen the skills shortage locally, there will continue to be shortages for experienced talent within in-demand skill areas, such as subsea, petroleum engineering and increasingly LNG,” Hays said.
To attract top talent, 72% of employers felt they had to make improvements to their employee offering in the last year, including training and development, compensation and rewards.
With company reputation a significant factor for job seekers when evaluating an employment opportunity, employers must increasingly develop a compelling employee value proposition to be perceived as an employer of choice, Hays said.
“To compete for the best talent and niche skills, employers must showcase their training and professional development programs to help promote their brand and set themselves apart in the industry,” Hays said.
Hays Oil & Gas managing director John Faraguna said that while projects with attractive economics were likely to continue, new projects would come under increased scrutiny and, if no longer economically viable under the “new oil price regime”, would be postponed or cancelled.
“Teams managing day-to-day operations still require the resources necessary to complete projects on time and within budget,” Faraguna said.
“At the other end of the spectrum, smaller businesses are responding to recent changes by focussing on interim hiring, shifting from multi-year contracts to short-term specialist assignments.”
With hiring plans impacted, employers face difficult decisions, including how to reduce costs while still having the right skills to deliver projects.
Hays said a decrease in hiring was also likely to exacerbate the skills gap and could result in further skills shortages in the future.
This year’s survey revealed 22.5% of respondents worldwide were aged 50 and above, which means that a significant portion of the tenured, skilled workforce will be retiring over the next 5 years.
With the anticipated reduced hiring of ‘Gen Y’ workers due to market conditions, the industry may be creating a future skills gap issue much like it did in the mid-to-late 1980s.
