Member Article

How will oil & gas investment in UK affect your business?

Exciting times are ahead of us in the Oil & Gas industry, following yesterday’s publication regarding the Government’s consultation on a new cluster area allowance. This allowance should see support and investment for uHPHT oil and gas fields in the UKCS, news that is welcomed by the industry with open arms.

The UKCS is well known for its harsh conditions, typically requiring highly specialised equipment at substantial additional investment when compared to other international markets. This, coupled with the current tax regime, can make it an unappealing area for investment for organisations that operate in this sector.

Earlier this year, Oil and Gas UK reported on the fact that the Oil & Gas industry in the UK could create up to 39,000 jobs over the next 2 years. As exciting as this sounds for the economy, this is a phenomenal amount of talent required for the market and it is important that organisations operating in this field take immediate action to implement a recruitment strategy to address their impending requirements. The skills shortage is an ongoing issue and with the current projections, the UK will have to be producing an additional 10,000 new STEM graduates per year just to maintain employment numbers. This does not take into consideration the fact that a portion of these graduates are unable to obtain work due to visa restrictions and that nearly a quarter of current STEM graduates accept employment in alternative sectors.

Talent management will become increasingly important in the coming months and organisations of all sizes should implement a strategy now that will not only help them attract the best talent, but a strategy that will enable them to retain and invest in their skilled workforce. This is almost more important for smaller organisations due to the costs of recruiting. When we talk about recruitment costs, we are not just referring to the investment in a recruitment partner or headhunting firm, but the cost to the business if a post is vacant for a substantial period or if the recruitment process is not undertaken correctly in the first instance and the wrong hire is made. These situations can be devastating for firms of all sizes but the effects especially felt in smaller organisations.

This was posted in Bdaily's Members' News section by Gemma Lonsdale .