Energy industry facing executive shortage
August 23, 2013 | By
Barbara Vergetis Lundin
The energy industry is facing an imminent shortage of executive talent as well as a lack of employees with the required competencies needed to compete in the global marketplace. This is what a national survey of executives in the oil and gas industry conducted by The Alexander Group reveals. Nearly 95 percent of companies surveyed have transitioned senior officers in the past two years due to resignation (36.5 percent); retirement (24.3 percent); termination (17.4 percent); promotion (13.9 percent); lateral moves within the company (4.3 percent); and demotion (3.5 percent). Of the functional areas, the chief executive officer role experienced the highest rate of turnover at 28.9 percent, followed by chief operating officers, and divisional or regional heads. Counsel and public affairs roles saw the least turnover at 1.7 percent each. Further, while the study found that the majority of senior officers who left their positions in the last two years resigned in order to pursue other opportunities, an unexpectedly large number retired. This trend is likely due to increased economic stability in the marketplace. In addition, executives who deferred retirement because of personal finances or obligation to see the company through the downturn now believe they can safely retire. According to talent intelligence platform WANTED Analytics, because of this turnover as well as improving overall economic health, the oil and gas industry has seen a 41 percent increase in available positions from July 2012 to July 2013. Similar turnover is expected during the next two years, particularily in the finance and operations areas. "Based on these findings and on the activity we have observed over the last 90 days, we see the high turnover continuing at least through the end of the year," said John Lamar, The Alexander Group's managing director and head of its Energy Practice. "[Executive search firms] have experienced an upswing in searches for oil and gas executives over the last two years, a trend that is sure to continue given the current market." For more: Sign up for our FREE newsletter for more news like this sent to your inbox! © 2013 FierceMarkets. All rights reserved. http://www.fierceenergy.com http://www.fierceenergy.com/story/energy-industry-facing-executive-shortage/2013-08-23 |