2013 GLOBAL RETENTION SURVEY

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1 2013 GLOBAL RETENTION SURVEY 1

2 TABLE OF CONTENTS A Word from Paul Caplan Canada United States South America United Kingdom Europe Africa Middle East Australia Asia 2013 GLOBAL RETENTION SURVEY 2

Recruitment Frenzy Subsides Fewer calls from recruiters, not as many colleagues quitting their positions and a lower number of counteroffers describes how the oil and gas job market is starting 2013,

3 Recruitment Frenzy Subsides Fewer calls from recruiters, not as many colleagues quitting their positions and a lower number of counteroffers describes how the oil and gas job market is starting 2013, according to the annual Rigzone Retention Survey. The result? Confidence in finding a favorable new position this year has dropped in nearly every region of the world, with particularly sharp declines in the United States, Europe and the Middle East. Nearly 6,500 employed energy professionals from around the globe responded to the survey and the results indicate a solid job creation to continue, but not at the same frenzied pace we ve experienced over the last few years. That said, companies cannot become complacent about retaining their staff - a record number of new jobs were posted on Rigzone in January and energy professionals are still willing to switch employers mainly for better career opportunities in And, for many specialized positions requiring advanced degrees and at least 10 years of experience, the market is still extremely tight. Unfortunately, many professionals do not share their career concerns with their current leadership until it s too late. When there are only two regions of the world where 50 percent or more of respondents rank their company s morale as high, companies need to stay especially vigilant against losing their best and brightest. Paul Caplan President, Rigzone 2013 GLOBAL RETENTION SURVEY 3

4 CANADA Recruiter Calls 76% 44% 92% 50% 91% 17% 83% Drilling Production Specialty Services (petroleum) (design/construction) (maintenance) (general) 100% 100% 58% 33% 75% 38% 100% Fabrication Geosciences Health, Safety and Environment Maritime Management/ Support Trades Well Completion % = respondents receiving at least one call 1-5 calls 6-10 calls calls 16+ calls Top Reasons to Stay 1. Increased salary 2. Opportunity to work overseas 3. More interesting/challenging assignments Higher or guaranteed bonus Voluntary Departures Top Reasons to Leave Finding a New Position? 1. Better career opportunities elsewhere 2. Opportunity for better work/life balance Easy 49% Hard 31% 3. Increased compensation Morale HIGH 45% LOW 17% Lower No change Higher 5% 46% 34% 2013 GLOBAL RETENTION SURVEY 4

5 UNITED STATES U.S.-based energy professionals continue to experience the positive impacts of a nearly decade-long hiring boom though not nearly at the white-hot pace reported one year ago. That s despite steady development of shale plays in the United States and an increase in domestic crude oil and natural gas production expected for the remainder of the decade. For 2012, the U.S. oil and gas workforce grew by seven percent or 31,400 new positions, according to data from the Bureau of Labor Statistics. This is visible evidence of strong, continued growth and, at the same time, a let-up in the frenzied pace of recruiting the industry 60,000 has experienced in the last three years. Key signs: oil and gas jobs are being 40,000 created at about half the pace as the 20,000 previous year (68,100 jobs added in 2011), the number of rigs working in the U.S. has declined year/year, and fewer -20,000 U.S.-based oil and gas professionals -40,000 report being contacted by recruiters in the last six months. Change in Oil and Gas Employment -60, This year, only 59 percent of energy pros reported having been contacted at least once by a recruiter in the previous six months. While recruitment activity that encompasses more than half of the industry s professionals surely sounds high, the truth is this rate reflects a slowdown from late year, when three out of four survey respondents (76%) reported having had at least one such contact during the last six months of Source: Bureau of Labor Statistics, Establishment Survey, preliminary Those professionals receiving the most recruiting interest: design and construction engineers, followed by well completion experts and petroleum Recruiter Calls 86% 72% 71% 51% 50% 49% (design/construction) Well Completion (petroleum) Trades Maritime Production % = respondents receiving at least one call 1-5 calls 6-10 calls calls 16+ calls 2013 GLOBAL RETENTION SURVEY 5

6 UNITED STATES engineers. At the other end of the spectrum, production personnel, maritime talent and trades professionals heard from recruiters less than their oil and gas colleagues. Energy professionals confidence level about finding their next job with ease also has dipped, to the point of ambivalence at the start of Asked how easy it would be to find a favorable new position during 2013, nearly four in 10 oil and gas professionals (38%) said it would be easy; 40 percent said landing their next position would be hard. Hard to Find New Positions? The response rate to the same question asked one year ago? Then, a near majority (49%) answered easy; just 33 percent said they expected to have trouble landing their next job. 40% YES 2011: 33% With U.S.-based oil and gas workers less confident about finding a quality position and with recruitment less active, only one in four (25%) respondents reported having been offered a positive incentive to stay with their current employer during the past six months. Among those who received such an enticement, more money was the dominant offer, followed by a more interesting or challenging assignment and a higher or guaranteed retention bonus or a new title/promotion. Money loomed as a decision driver for the majority of oil and gas pros who expect to change jobs in 2013 and as the carrot dangled by hiring managers and recruiters seeking new employees. But, respondents most frequently cited better career opportunities and/ or better work-life balance, well ahead of the chance to earn more money when asked what motivated switching companies. So the future of oil and gas careers looks good for decades to come in this country. Average compensation dropped five percent year/ year to $94,722 for North American-based oil and gas professionals, according to the Rigzone Compensation Tracker. If money is less available, oil and gas professionals are clear on what else works: The boss. Nearly seven out of 10 respondents (69%) called the quality of management an important determinant in the process as Lane Sloan co-chair of the Greater Houston Partnership s Energy Collaborative Committee 2013 GLOBAL RETENTION SURVEY 6

7 UNITED STATES compared to just 28 percent who said the boss played no role in the decision to stay or leave a job. Evidently, the industry has work to do. Among U.S. respondents, company morale was rated lower than any other region of the world. A plurality of industry workers (42%) labeled morale at their present employer high, while not quite a quarter of the energy workforce (24%) called morale low. That compares to South America-based energy professionals, where 59 percent rated morale high, as compared to just 11 percent ranking morale low. High Morale % of respondents ranking morale as high CANADA 45% U.S. 42% EUROPE 47% MIDDLE EAST 48% 49% ASIA SOUTH AMERICA 50% AFRICA 59% AUSTRALIA 44% For oil and gas workers in the United States, it seems 2013 may not be the very best of times, but they are still good times indeed and better times may well be on the horizon. Smart people are talking about energy independence not just as political rhetoric, but as really possible, says Lane Sloan, co-chair of the Greater Houston Partnership s Energy Collaborative Committee and a 30-year executive in the energy industry. So the future of oil and gas careers looks good for decades to come in this country. It s less clear on other energy fronts, although my personal view is, we will need all sources with the growing world population driving up global energy demand GLOBAL RETENTION SURVEY 7

8 SOUTH AMERICA Recruiter Calls 78% 80% 75% 56% 65% 69% 83% Drilling Production Specialty Services (petroleum) (design/construction) (maintenance) (general) 80% 77% 77% 76% 60% 70% Geosciences Health, Safety and Environment Maritime Management/ Support Trades Well Completion % = respondents receiving at least one call 1-5 calls 6-10 calls calls 16+ calls Top Reasons to Stay 1. Increased salary 2. More interesting or challenging assignments 3. Promotion or new title Finding a New Position? Easy 43% Hard 31% Top Reasons to Leave 1. Opportunity for better work/life balance 2. Better career opportunities elsewhere 3. Increased compensation Morale HIGH 59% LOW 11% Voluntary Departures Lower No change Higher 6% 45% 37% 2013 GLOBAL RETENTION SURVEY 8

9 UNITED KINGDOM Recruiter Calls 23% None 37% 1-5 calls 16% 6-10 calls 9% calls 15% 16+ calls Top Reasons to Stay 1. Increased salary 2. Promotion or new title 3. More interesting/challenging assignments Voluntary Departures Finding a New Position? Easy 31% Hard Top Reasons to Leave 1. Better career opportunities elsewhere 2. Opportunity for better work/life balance 3. Lack of recognition for accomplishments 51% Morale HIGH 43% LOW 31% Lower No change Higher 7% 45% 35% 2013 GLOBAL RETENTION SURVEY 9

10 EUROPE While the European Union economy continues to sputter, its oil and gas professionals are on the hunt for better career opportunities, increased compensation and/or the opportunity for work/life balance, according to the 2013 Rigzone Retention Survey. January 2013 Despite desires to change positions, there is rising awareness that finding a favorable new position won t necessarily be easy. Maybe that s not surprising given the aggregate Euro area unemployment rate for January 2013 is hovering at 11.9 percent and rates have risen markedly compared with a year ago. Still, energy is a global business and benefits from the world market, not necessarily hyper-local market. At any rate, European energy professionals rank as the world s least optimistic when it comes to finding new work, with 43 percent saying they believe finding a favorable new job will be hard up seven percentage points from a year ago. By contrast, 32 percent of E.U.-based respondents said finding new work would be easy, down 10 percentage points from last year. Recruiter Calls 2011: 81% 72% Received a call in the last 6 months Unemployment Rates 7.9% At least one statistic belies this plunge in confidence: More than seven out of 10 European energy professionals (72%) report having been contacted by a recruiter or hiring manager in the past six months, with more than a quarter of the sector s respondents (27%) reporting at least a half-dozen such contacts. One caveat: While still robust, this high contact rate represents a more than 10 percentage point drop from a year ago. 11.9% Sources: Eurostat and Bureau of Labor Statistics, Household Survey How has this shift in mindset impacted the dynamic between employer and employee across the European oil and gas industry? Generally speaking, morale remains high among the sector s energy pros (47%), higher than in the United 2013 GLOBAL RETENTION SURVEY 10

11 EUROPE Measuring Morale 47% HIGH 20% LOW 27% NEITHER = 2% States (42%), though well below South American-based oil and gas professionals (59%). Again, a caveat: One in five European respondents (20%) cited low morale at their current employer, a level of pessimism that s only surpassed by their U.S.-based counterparts. Management in Europe continues to remain reluctant to offer energy professionals retention incentives: Only three in 10 respondents (31%) report having been offered such an incentive, a figure that again places E.U.- based energy pros mid-pack, above the United States (25%), but below Asia (36%) and the Middle East (38%). With employees confidence waning... an increasing number of European energy professionals are choosing to stay put. With employees confidence waning and employers relative indifference to departures showing an uptick, perhaps it s no surprise that an increasing number of European energy professionals are choosing to stay put: Where last year, nearly a third of Europe s respondents told Rigzone that quitting in their department was on the rise in the past six months, this year that number stands at 28 percent. Half of respondents reported that quitting was unchanged, while six percent said it had dropped from the year prior GLOBAL RETENTION SURVEY 11

12 AFRICA Recruiter Calls 71% 70% 69% 64% 75% 61% 70% Drilling Production Specialty Services (petroleum) (design/construction) (maintenance) (general) 60% 83% 61% 70% 79% 71% 63% Fabrication Geosciences Health, Safety and Environment Maritime Management/ Support Trades Well Completion % = respondents receiving at least one call 1-5 calls 6-10 calls calls 16+ calls Top Reasons to Stay 1. Increased Salary 2. More Interesting or Challenging Assignments 3. Opportunity to Work Overseas Finding a New Position? Top Reasons to Leave 1. Better career opportunities elsewhere 2. Opportunity for better work/life balance Easy 45% Hard 24% 3. Increased compensation Morale HIGH 50% LOW 18% Voluntary Departures Lower No change Higher 9% 41% 35% 2013 GLOBAL RETENTION SURVEY 12

MIDDLE EAST Energy workers based in the Middle East are the globe s most-courted energy pros.

six months, with 24 percent reporting a half-dozen or more such contacts.

reported in the Middle East last year. Courting Calls % of respondents receiving at least one call 66% CANADA 59% U.S.

37% YES 2011: 45% Regardless of how often the phone rings or the email inbox chimes, Middle East energy professionals, like

Where last year 45 percent said finding a favorable new position would be easy, this year s survey saw that response rate fall

13 MIDDLE EAST Energy workers based in the Middle East are the globe s most-courted energy pros. Seventy-five percent of respondents to the 2013 Rigzone Retention Survey reported at least one recruiter inquiry in the past six months, with 24 percent reporting a half-dozen or more such contacts. While this rate of contact outpaces all other regions worldwide, it does mark a mild drop from the 78 percent contact rate reported in the Middle East last year. Courting Calls % of respondents receiving at least one call 66% CANADA 59% U.S. 72% EUROPE MIDDLE EAST 75% ASIA 74% SOUTH AMERICA 74% AFRICA 69% AUSTRALIA 69% Easy to Find New Positions? 37% YES 2011: 45% Regardless of how often the phone rings or the inbox chimes, Middle East energy professionals, like their colleagues in other locales, reported a rising sense of pessimism about the ease of finding a quality new job in Where last year 45 percent said finding a favorable new position would be easy, this year s survey saw that response rate fall to 37 percent. And while optimism remains the rule among Middle East-based oil and gas workers, those who reported finding quality new work would be hard jumped three percentage points year-overyear, to 35 percent GLOBAL RETENTION SURVEY 13

14 MIDDLE EAST What are these workers searching for in a new employer? Better career opportunities (67%), better work life balance (62%) or more money (29%). With that said, these workers aren t entirely ready to flee: The survey s respondents split evenly, 47 percent apiece, when answering could anything deter you from moving on in Interestingly, the Middle East-based workers seem to contradict themselves a bit when asked about what could keep them with their current employer: While more than six in 10 reported wanting to change jobs in search of better opportunities and/or a more balanced lifestyle, the most popular answer when asked about a potential counter-offer was increased salary at 46 percent, far ahead of the second place answer, a more interesting or challenging assignment at 20 percent. Middle East-based employers, for their part, do seem increasingly concerned with retaining quality employees: Nearly four in 10 (38%) offered their workers incentives to stay with the company during the six months prior to the survey. That ties the result from South American-based energy pros for the highest rate in the world, and it s up from 35 percent the year before. The most common offered to be dangled? More money. Morale in the Middle East 14% LOW 48% HIGH 31% NEITHER = 2% Amid an environment marked by recruitment calls, job inquiries and incentives, morale among oil and gas workers based in the Middle East remains generally high, an answer given by 48 percent of respondents. By contrast, low morale was cited by 14 percent of Middle East energy professionals, well below the United States, where low morale seems to have afflicted nearly a quarter of energy pros GLOBAL RETENTION SURVEY 14

15 AUSTRALIA Recruiter Calls 50% 83% 79% 100% 75% 62% Drilling Production Specialty Services (petroleum) (design/construction) (maintenance) 100% 78% 85% 73% 47% 100% Geosciences Health, Safety and Environment Maritime Management/ Support Trades Well Completion % = respondents receiving at least one call 1-5 calls 6-10 calls calls 16+ calls Top Reasons to Stay 1. Increased salary 2. More interesting or challenging assignments 3. Opportunity to work overseas Finding a New Position? Easy 50% Hard 29% Top Reasons to Leave 1. Better career opportunities elsewhere 2. Opportunity for better work/life balance 3. Contractor (frequently move employers) Morale HIGH 44% LOW 15% Voluntary Departures Lower No change Higher 5% 42% 36% 2013 GLOBAL RETENTION SURVEY 15

16 ASIA The employment outlook for Asia-based oil and gas professionals reads like a tale of two mindsets in 2013: While energy workers continent-wide report a decline in confidence about the prospects of finding a quality new job in the year ahead, oil and gas employers across Asia continue to work hard to retain skilled employees, with an increasing emphasis on incentives and counteroffers. Asia-based energy professionals show a decided ambivalence when it comes to the ease of making this career jump: Four in 10 say finding a favorable new job will be easy. That s matched by the 40 percent of Asia energy workers who said making such a transition would be hard, virtually the same negative expectation as their counterparts in the U.S., where 40 percent answered hard when asked about the ease of finding a new job. That result compares to last year s more confident reading of 44% to 35% easy to hard, respectively. Hard to Find New Positions? 40% YES Likely driving this seeming split decision on jobs? The fact that Asian energy pros, like their counterparts in Europe and the Middle East, continue to be contacted on a regular basis by head hunters and recruiters. Nearly three-quarters (74%) of Asia-based energy workers reported receiving Recruiter Calls 2011: 35% at least one such call in the past six months, while more than one in four (25%) received at least six calls from hiring professionals. The most common incentives offered to 74% switch jobs? Better career opportunities (24%) an increase in pay (23%) and/or the chance to work in a new location Received a call (16%). Do these calls have an impact? in the last 6 months It appears they do, since more than a third of Asian energy workers (33%) report an increase in voluntary departures within their companies during the past six months. One caveat, however: That incidence of increased quitting in Asia is actually down from 38 percent last year. Asia-based oil and gas employers, meanwhile, appear to have made retention 2013 GLOBAL RETENTION SURVEY 16

17 ASIA Top Incentives to Stay 1. Increased salary 2. More interesting or challenging assignments 3. Opportunity to work overseas 4. Promotion or new title more of a priority than they did during the year prior. The use of incentives to keep energy workers in place jumped two percentage points year over year (from 34% to 36%), a response rate nearly a dozen percentage points higher than that of U.S.-based oil and gas pros. Typically, these incentives come in the form of a counter-offer, a retention effort reported by 60 percent of Asia-based energy workers who were given incentives. The most commonly dangled carrots? More money (26%), a more challenging assignment (15%) or a promotion and a new title (13%). Increasingly being wooed to stay on the job perhaps has had a halo effect when it comes to morale within Asia s energy sector. Increasingly being wooed to stay on the job perhaps has had a halo effect when it comes to morale within Asia s energy sector. About half of energy professionals there ranked morale in the workplace high while only 13 percent labeled morale low at their company GLOBAL RETENTION SURVEY 17

18 About the Survey From January 3 to January 11, 2013, Rigzone surveyed oil and gas professionals from every region of the world. Nearly 6,500 responses qualified to be included in the analysis. About Rigzone Rigzone, a Dice Holdings Inc. service, is a leading online resource for the oil and gas industry delivering content, data, advertising and career services. Dedicated to bringing upstream oil and gas news and data, including in-depth information on exploration, drilling and production markets to organizations tackling the energy challenge, its online community of highly-skilled and experienced energy professionals is unmatched. Media Contacts Jennifer Bewley, Rachel Ceccarelli and Deirdre Hughes media@rigzone.com 2013 GLOBAL RETENTION SURVEY 18

NAM MANUFACTURERS OUTLOOK SURVEY FOURTH QUARTER 2018 DECEMBER 20, 2018

NAM MANUFACTURERS OUTLOOK SURVEY FOURTH QUARTER 2018 DECEMBER 20, 2018 Percentage of Respondents Positive About Their Own Company s Outlook 88.7% (October: 92.5%) 2018 Annual Average: 92.4% (all-time high)