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Oil and gas execs to cut hiring 65% in next six months, survey finds

June 26, 2015

Oil and gas companies continue to curtail recruitment as a result of ongoing market uncertainty, according to a global survey of oil and gas hiring managers conducted by Rigzone, an industry website owned by DHI Group Inc. (NYSE: DHX).

According to Rigzone, market trends have begun to show some early positive signs, with the price of oil beginning to rise this quarter. However, most global oil and gas hiring managers remain reluctant to expand hiring efforts: 65% report decreased hiring plans over next six months, 54% indicate they believe job cuts are more likely in the next six months, and 65% expect a loss of budget for approved headcount for the year.

More than half of those polled, 51%, said they decreased hiring efforts in the past three months, and an additional 13% said they froze recruitment plans completely.

Similar to last quarter, companies who remain in the market for talent have an advantage, with 81% of the global hiring managers surveyed saying the candidate pool has grown in the last three months. Additionally, 34% said the “time-to-fill” open positions shortened over the last three months. In terms of salary expectations, 70% of global hiring managers polled indicated that candidates are not asking for more compensation as compared to three months ago.

“Despite some early positive signs in market trends, the oil and gas market continues to experience volatility and, as a result, companies remain reluctant to expand their hiring plans,” said Rigzone President Bob Melk. “For many companies, potential hiring opportunities have been postponed for the foreseeable future.”

Oil and gas professionals are uncertain about the career prospects available to them due to the decreased availability of employment options in the market. Professionals who are currently employed are expected to stay in their current positions, with nearly 70% of global hiring managers surveyed indicating an anticipated decline in voluntary departures over the next six months.

Rigzone surveyed 209 hiring managers and recruiters who recruit oil and gas professionals globally, with 23% representing companies with more than 5,000 employees. The survey was conducted from May 26 to June 2, 2015.