Oil and gas to see recruitment boom despite sector’s lack of confidence

BRITAIN’S oil and gas industry is set for a recruitment boom, despite claims the Chancellor’s tax hike is continuing to dent business confidence in the North Sea, it was revealed yesterday.

The annual oil and gas survey, published by Aberdeen and Grampian Chamber of Commerce, says that the supplementary tax increase, announced by George Osborne to fund the government’s 1p cut in fuel duty, has had a negative impact on confidence and investment in the UK Continental Shelf.

More than half of oil and gas companies surveyed reported that confidence remained weak and had impacted adversely on future North Sea investment.

But, despite the continuing uncertainty, the report also reveals a dramatic change in recruitment plans by both major operators and contract companies in the North Sea.

A total of 88 per cent of operators expect to increase their staff during the coming year – double the prediction made last November before the announcement of the shock tax increase.

And the recruitment activity among the operators is being driven by expansion plans, according to the author of the report, Cliff Lockyer, from the Fraser of Allander Institute.

His report also reveals that, in the battle to retain staff, some oil firms have been forced to offer 10 per cent pay rises to key employees as well as a range of fringe benefits – from free gym membership to extra days off – to prevent them being poached by rival companies.

According to the report, 63 per cent of operating companies have reported rising activity this year with 50 per cent anticipating the need to increase operations during the coming year and the other 50 per cent anticipating at a least a standstill in current operations. In 2011 every single operator has also reported increasing the numbers of direct staff employed, while last year 29 per cent reported reducing the size of their workforces.

The prospects for recruitment are even more bullish in forecasts for the next three years.

The report states: “In the current survey 88 per cent (43 per cent in the previous survey) of operators expect to increase and 12.5 per cent to reduce their core staff and 63 per cent (57 per cent) to increase their contract staff over the next three years.”

Mr Lockyer said that the ability to recruit personnel in a range of skills, including project engineers, technicians and skilled trades, remained a major problem throughout the North Sea.

During the year, 95 per cent of contractors and 88 per cent of operators increased their pay rates in an effort to retain staff.

The average pay increase was 5.9 per cent for operators and 7.4 per cent for contractors. But some companies increased their pay by more than 10 per cent to retain key employees.