Skip to comments.Luring top oil talent demands perks
Posted on 12/03/2012 7:20:04 AM PST by thackney
Skyrocketing demand for petroleum engineers and other oil and gas workers has companies going to new lengths to lure top talent and keep employees out of competitors grasps.
Winning over recruits isnt just a matter of providing 35 percent salary hikes and $100,000 signing bonuses. Headhunters say company culture and non-monetary perks are gaining sway in attracting and retaining employees.
Stories of eager employers making unique concessions for high-demand job candidates abound. An oil executive started paying for his employees shoeshines. Free gasoline and a reinstated pension enticed an experienced project manager back to a former employer. And recently, a company won a senior engineer by making annual $2,000 donations to employees favorite charities, said Houston-based David Armendariz, managing partner at executive search firm Lucas Group.
Its not just discussing the roles and responsibilities, he said of sealing the deal with job candidates. Its about painting a very clear picture of what life is like at that company.
The boom in domestic drilling has led to soaring demand for workers experienced in oil and natural gas fields. Some oil companies are giving their employees bonuses as high as $10,000 for referring a successful recruit.
But energy corporations arent competing only against each other for the best young technical minds. Theyre vying against the well-branded tech business, with its plethora of employee perks and laid-back West Coast cultures, said John Faraguna, the Houston-based North America president for global recruiting firm Hays.
The world of drilling for crude can seem staid, by comparison.
In tech, Im going to do stuff that changes the world, he said. Houston is viewed as an old mans game. Theres a sense that this is a more traditional place.
New Exxon campus
To attract the most innovative engineering minds, Big Oil is emulating one of the Big Techs most successful recruiting tools. Exxon Mobils new headquarters in north Houston will consolidate its local employees on a 385-acre campus, featuring on-site child care, fitness classes, and other amenities to improve worker lifestyles. Employees are scheduled to start arriving in 2014.
The campus is designed in the same vein as the Googleplex, the California headquarters of tech giant Google that doubles as an adult playground, with volleyball games, free haircuts and rec rooms.
Like Microsoft and Google, theyre thinking about campuses that create an environment and culture that feels like a university, Faraguna said. When you consolidate your employees, you can afford to have a really nice health club, day care and cafeteria.
Tech companies regularly rate at the top of the Best Places to Work list produced by career site Glassdoor. Google, Apple and Facebook all made the lists Top 10, based on anonymous employee reviews of compensation, management, culture and other workplace qualities.
Importance of culture
This year, Chevron and Dow Chemical broke into the Top 20, with employees touting high pay, flexible schedules and a good work-life balance, said Scott Dobroski, community expert for the California-based career site.
Employees care about culture almost as much as the salary and benefits packages, he said.
Turning traditional office spaces into bustling communities can rebrand a company as a fun and convenient place to work, which helps recruitment. And oil companies are working even harder to retain their current staffs.
Counteroffers have become standard, driving some employees salaries so high that competitors cant afford them.
Its cheaper for a company to offer a candidate another $50,000 than the cost of replacing them, which can include paying for a headhunter and training a new worker, in addition to delaying projects and breaking deadlines, said Jon Macaulay, co-director of the Houston office for Edward Ogden.
Clients are working extremely hard to lock in these candidates so they make so much money, they just cant move, Macaulay said
Scott Hill, managing partner at Houston recruiting firm Queststar, said hes seen salaries for entry-level engineers jump to six figures. The least experienced engineers were making about $70,000 in 2005, he said. Today, those with less than five years of experience are securing paychecks as high as $140,000.
But the golden handcuffs, the measures employers take to keep workers onboard, are less about dollars and more about a sense of appreciation these days. Especially among younger generations, employees are more loyal when they feel they are being groomed for advancement, recruiters said. So many oil companies are building up their mentoring programs and streamlining their internal talent pipeline.
Murray Resources senior recruiter Mary Hudson said companies are rapidly moving to integrate their internal employee tracking systems across offices, making it easy for managers to find existing employees from Houston to Saudi Arabia with the training, skills, and performance to fill job openings and take on new projects.
They are trying hard to show development paths so employees can grow and rise in the organization. People dont want to get into a position and sit and vegetate, Hudson said.
You have to offer a package to the person based on the areas that are important to them, she added. More money wont keep somebody. You have to dig a little deeper.
Survey of oil company employees
As competition for oil and gas professionals stiffens, energy companies are doing more to keep employees content. A recent survey by WorkPlaceDynamics of employees at 244 companies with Houston operations, including 37 energy firms, shows workers in energy are happier with compensation and other cultural aspects of their companies compared to other industries.
My pay is fair for the work I do.
Energy Companies 73%
Other Industries 58%
I want to stay at this company for more than a year.
Energy Companies 77%
Other Industries 70%
I feel genuinely appreciated at this company.
Energy Companies 81%
Other Industries 77%
I have the flexibility I need to balance my work and personal life.
Energy Companies 78%
Other Industries 76%
Most of the US drilling boom, such as it still is unless/until the globull warmists finally mug it, is a Bush boom.
“Miss me yet?”
And the degeneration of a traditional business environment to another t-shirt and sandals everyday commune expands. I hate the “start-up” environment. I thought it would be cool to work in such a laid back atmosphere, wrong. The lack of structure is unnerving and I am sick of seeing hairy legs and last years Green Day t-shirts. We had a guy take a 3 hour nap here at work the other day. Geez, just work your hours from 7-6 like most of us and go home, these guys come in at 10 stay until 8pm or so then go home and continue work their on either company stuff or personal projects and wonder why they are always tired.
Sorry, I don’t have that kind of passion for software.
At least half of my (24 hour) days in a year are spent on a drilling location.
Yes, I get paid well. Most people don't want to work 40 hours a week, I usually average more than that over a year, just on location.
But that is real work. I miss having a job like that, I made the mistake of going software years ago and losing my other tangible skills. Now because of the aging curve it is impractical for me to change again, but the same curve hurts me trying to compete with 20 and 30 something Red Bull main-liners that have no kids or very little ones and work all the time. There is just not enough hours in the day.
Plus I have noticed my vision, which used to be perfect, now sucks.
Plus I have noticed my vision, which used to be perfect, now sucks.
Mine isn't what it used to be, either...darned glasses don't last as long as they used to...
The problem is when they burn out and move on to the next best gig they have implemented some hodge-podge of 3rd party plug-ins to make their open source, multi-tier, cool, cloud web service run withoiut having to use any of the main stream tools and we have to spend months years trying to figure out what they did.
Haven’t we been told that windmills and solar panels are the wave of the future?
Shouldn’t Algore be consulted on this?
My Father made a lot coming out of retirement as a consultant during the run-up to Y2K because he knew the 'dead' mainframe languages many of the youngsters didn't.
There is no substitute for experience, after all. (8^D)