uk oil and gas salary survey 2015 what are you worth? · welcome to the 2015 edition of the nigel...

UK Oil and Gas Salary Survey 2015

What are you worth?

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-to-date information available.

Introduction

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 BROADHEADCOUNTRY MANAGER - ENERGY

UK Oil and Gas Salary Survey 2015 03

Contents

1. Executive summary 05

2. Non-monetary indicators 08

2.1 Weekly hours worked by discipline 09

2.2 Job satisfaction by job level 10

2.3 Intention to move jobs 11

2.4 Factors influencing a change of roles 12

2.5 Methods used to search for a new role 13

3. Salary, benefits and bonuses 14

3.1 Average percentage of salary increase received by level 15

3.2 Importance of benefits as part of a remuneration package 16

3.3 Overall benefit and bonus entitlement 17

3.4 Company performance related bonus, received and expected, by level 18

3.5 Personal performance related bonus, received and expected, by level 19

4. Skills and views 20

4.1 Perception of oil and gas industry skill shortages 21

4.2 Perception of the skills and qualities you need to be successful by discipline 22

5. Analysis of salaries in relation to discipline 23

5.1 C-Level/Managing Director/General Manager 24

5.2 Technical (Projects/Engineering) 24

5.3 Supply Chain, HSEQ, Planning 25

5.4 Commercial (Sales, Marketing, Business Development, Contracts, Tenders & Bids) 26

5.5 Support (HR, Finance) 26

6. Contact details 27

04 UK Oil and Gas Salary Survey 2015

Respondents’ Profile

1. Executive summary

Male:85%

Female:15%

BASE:

1000+

Average age: 43 (Range: 21-70)

64%are educated to

degree level or above

15% hold a professional qualification such

as CEng.


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 SatisfactionForty 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%.


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.

BenefitsEighty 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.

BonusesCompany 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.



2. Non-monetary indicators

2.1 Weekly hours worked by discipline

Technical = (Projects, Engineering)

Commercial = (Sales, Marketing, Business Development, Account Management, Contracts, Tenders & Bids)

Corporate Functions = (HR, IT Finance)

On average, respondents work 46 hours per week. Fifty three percent of respondents work between 41-50 hours per week and a further 14% work between 51-60 hours per week.

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.

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

c level/md technical

Discipline

Avg

. N

o.

Ho

urs

corporatefunctions

commercial hseq planning supply chain

How many hours do you work in a week?


2.2 Job satisfaction by job level

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.

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

0

20

40

60

Level of satisfaction

very s

atisfie

d

moderate

ly sa

tisfie

d

satis

fied

moderate

ly d

issatis

fied

very d

issatis

fied

management

non-management

c-level/mdsenior management

% o

f re

spo

nd

ents


How would you rate your current job satisfaction?

% o

f re

spo

nd

ents

Timescales for moving jobschanging jo

bs n

ow (w

ithin

a m

onth o

r so)

with

in 6

months

in th

e nex

t 18 m

onths

in th

e nex

t 2-3

years

in 5

years

+

not pla

nning to

change j

obs0

5

10

15

20

25

30

35

40

45

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?


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.

0

10

20

30

40

50

60

70

80

90

Factor

% o

f re

spo

nd

ents

change disc

iplin

e

change locatio

n

differ

ent e

nvironmen

t/cult

ure

flex

ible w

orkin

g

achieve a

n impr

oved w

ork-li

fe ba

lance

gain n

ew sk

ills

promotio

n

new c

hallen

ges

incre

ased re

muneratio

n

2.4 Factors influencing a change of roles

What top three factors would motivate you to change your job?


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.

0

10

20

30

40

50

60

70

80

90

Factor

% o

f re

spo

nd

ents

regio

nal or l

ocal new

spape

rs

netw

orkin

g

trade m

agazines

online j

ob board

s

empl

oyer i

ntranet

s

socia

l net

work

ing si

tes

direct a

ppro

aches to

empl

oyers

recru

itmen

t consu

ltancies

2.5 Methods used to search for a new role

What methods would you utilise to search for a new job?


3. Salary, benefits and bonuses


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?

0

1

2

3

4

5

Factor

Ave

rage

% s

alar

y in

crea

se

managemen

t

non-managem

ent

directo

r/se

nior m

anagemen

t

c-level

/managin

g dire

ctor

overall

2.8%2.3%

3.0%3.2%

2.2%


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.

0

10

20

30

40

50

60

Benefit

% o

f re

spo

nd

ents

share

opt

ions

healt

h insu

rance

company c

ar and pe

trol

holiday e

ntitle

ment

bonus -

compa

ny per

form

ance

childcare

all

owances

career

brea

ks/sa

bbatic

als

car all

owance

non-contr

ibuto

ry pe

nsion

flex

ible w

orkin

g

empl

oyer c

ontribu

tory

pensio

n

bonus -

pers

onal

In your opinion, what are the top three most important benefits?


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.

0

20

40

60

80

100

Benefit

% o

f re

spo

nd

ents

pers

onal bonus

car all

owance

company b

onus

healt

hcare

pensio

n

Do you get any company bonuses or benefits?


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.

0

10

20

30

Job Title

overall

c-level

/managin

g dire

ctor

directo

r/se

nior m

anagemen

t

managemen

t

non-managem

ent

receivedexpected

% o

f b

on

us

What was/is the value of your last/next company performance related bonus?


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.

0

10

20

30

% o

f b

on

us

Job Title

overall

c-level

/managin

g dire

ctor

directo

r/se

nior m

anagemen

t

managemen

t

non-managem

ent

receivedexpected

What was/is the value of your last/next personal performance related bonus?


4. Skills and viewsUK Oil and Gas Salary Survey 2015

4.1 Perception of oil and gas industry skill shortages

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.

Respondents were asked to select as many of the skills listed below, that they perceived are lacking in the oil and gas industry.

0

10

20

30

40

50

70

60

Skills/attributes

% o

f re

spo

nd

ents

liter

acy and n

umeracy s

kills

profe

ssio

nal manner

none

commercia

l acumen

profe

ssio

nal/in

dustry

qualif

icatio

ns

communicatio

n skill

s

right a

ttitu

de/pe

rsonalit

y

indust

ry k

nowle

dge and ex

perie

nce

What skills shortages do you perceive there to be in your industry?


4.2 Perception of the skills and qualities you need to be successful by discipline

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%).

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

33% 71% 16% 49% 40% 52% 57% 51%

Confident/self assured

83% 54% 95% 89% 49% 38% 54% 60%

Excellent communicator

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%

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?


5. Analysis of salaries in relation to discipline


Job Title Range Average Basic Salary

C-Level £90,000 – £250,000 + £245,000

Managing Director/General Manager £70,000 – £250,000 £140,000

5.1 C-Level/Managing Director/ General Manager

5.2 Technical


Projects (Non-Management) £30,000 – £150,000 £47,000

Projects (Management) £30,000 – £80,000 £59,000

Projects (Director/Senior Management) £40,000 – £120,000 £86,000

Engineering (Non-Management) £25,000 – £150,000 £52,000

Engineering (Management) £60,000 – £70,000 £65,000

Engineering (Director/Senior Management) £40,000 – £150,000 £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 0191 222 0770.




(Projects/Engineering)


5.3 Supply Chain, HSEQ, Planning


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 - £100,000 £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 - £100,000 £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





5.4 Commercial




(Sales, Marketing, Business Development, Contracts, Tenders & Bids)

5.5 Support


HR (Management) £40,000 - £60,000 £50,000

HR (Director) £60,000 - £100,000 £85,000

Finance (Management) £70,000 - £100,000 £80,000

Finance (Director) £90,000 - £150,000 £120,000




(HR, Finance)



Sales (Non-Management) £40,000 - £50,000 £45,000

Sales (Management) £50,000 - £80,000 £70,000

Sales (Director/Senior Management) £80,000 - £150,000 £110,000

Marketing (Non-Management) £30,000 - £50,000 £40,000

Marketing (Management) £50,000 - £80,000 £70,000

Marketing (Director/Senior Management) £80,000 - £125,000 £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 - £150,000 £120,000

Contracts (Non-Management) £50,000 - £60,000 £55,000

Contracts (Management) £60,000 - £90,000 £70,000

Contracts (Director/Senior Management) £100,000 - £150,000 £125,000

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 - £100,000 £75,000

For more information on the UK Oil and Gas Salary Survey 2015, please contact the Nigel Wright Energy team on the details below:

T: +44 (0)191 222 0770E: [email protected]: www.nigelwright.com

6. Contact details

Newcastle officeLloyds Court78 Grey StreetNewcastle upon TyneNE1 6AF

Aberdeen officeRiverside HouseRiverside DriveAberdeenAB11 7LH

London officePalladia Central Court25 Southampton BuildingsLondonWC2A 1AL

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 sub-sectors 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 sought-after 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

www.nigelwright.com

A specialist consultancy operating withinthe dynamic global oil and gas market.

uk oil and gas salary survey 2015 what are you worth? · welcome to the 2015 edition of the nigel...

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