The rise in DIY recruitment in the oil and gas industry
We are seeing a growing trend where oil and gas companies are approaching potential hires directly, either by phone/Skype or through advertising on LinkedIn.
Of course, direct recruitment is nothing new, before recruitment agencies ‘were invented’ all hiring was done this way, through the company personnel department. Adverts were placed in local newspapers or job centres and candidates were sourced, filtered and interviewed directly.
The international dynamics of the oil industry, combined with the internet and a need for rapid hiring coincided to create a need for offshore recruitment agencies. In fact, during boom years for the industry, agencies did extremely well financially.
Things are a little different now; the recruitment industry has a bad name and in many ways became a victim of its own success. Because of the financial rewards, many companies were a bit too aggressive with their performance targeting. The volume model also hindered that all important personal touch. No industry professional wants to feel like they are being herded.
Sustained low oil prices have made the old recruitment business model non-cost-effective for oil and gas companies (at least at previous rates). In an environment of aggressive cost-cutting, any expense that could be perceived as very lucrative for the supplier will always be re-negotiated.
Any expense that can be viewed as unnecessary will be slashed altogether…
… Perhaps middle executives don’t need first class flights; business class is very comfortable.
… Expense accounts will be scrutinised for details. Is this really a time for Champagne? Fine wine? Even those Oysters look a bit extravagant in a tough business climate.
… What are recruiters being paid for? When there are hundreds of thousands of good people spending time on LinkedIn updating their bio-data and actively looking for work?
Do oil and gas companies even need recruiters at $40 oil? There will be plenty of admin and HR staff who have time on their hands due to the lack of new exploration and hiring…
Surely they know the companies needs better than an outside agency?
The death of the oil and gas recruiter?
If we are talking about the recruitment company who:
- Pays a small salary and then large performance related bonus to encourage cold calling…
- Encourages ‘closers’ to come from other companies while bringing their database with them…
- Charges 10-20% of the recruits day rate in perpetuity…
- Thinks they can wine, dine and give ‘gifts’ to executives to win contracts…
- Does not understand the industry or the nuances of each specialist job role…
- Offers candidates jobs that don’t exist to have then ‘sign on’.
Etc, etc, etc
Then yes, they are likely to be dead in the water. At least until oil prices return to triple digits and oil companies let their cost efficiency consciousness slip again.
But we are not holding our breath for that to happen. If we were considering ‘waiting it out’ and betting on a wasteful high-profit industry again that might never happen.
Instead, we would prefer to compete with the HR departments and rig managers with a few hours spare here and there.
We know that sometimes cost-cutting can go too far, essential staff can be lost that endanger health, safety and viability of projects themselves. Saving 10-20% is very tempting, to get the project manager or rig manager on the case makes sense, they know what they are looking for and are being paid already. The HR department can indeed save a lot of money too.
What if there were an outside recruitment company who had the knowledge of your rig manager, but ended up costing less than your HR department?
While you are already paying your admin staff, they will still have to do the work, and sideline other tasks. The process of advertising, reviewing CV’s, checking certifications and references and so on might take a person a whole week, perhaps more.
What if there were a service where these advertising, research, verification and vetting process had already been done?
A place where you could find ‘exact fit’ viable candidates, the details of which you could access immediately?
For around the cost of your HR person’s time?
Without having to divert your rig manager from other important jobs?
This is the value proposition of NatResPro!
Serial Energy Entrepreneur. Co-Founder of Natural Resource Professionals Ltd. Founder of Out of the Box Innovations Ltd. Webmaster at drillers.com. Technology/Internet Geek.