HOUSTON--(BUSINESS WIRE)--A national survey of executives in the oil and gas industry reveals more than 90% of companies surveyed have transitioned senior officers in the past two years. The results are from the 2013 Survey of Executive Hiring in the Oil and Gas Industry by The Alexander Group, a global provider of senior-level executive and board searches. The firm surveyed human resources and operations executives on hiring trends over the past two years, with a focus on the transition and turnover of senior officers.
“The energy industry is facing an imminent shortage of executive talent as well as a lack of employees with the required competencies these companies need to compete in the global marketplace”
The survey found that in the past two years, 93.7% of companies surveyed have transitioned senior officers due to the following:
- Resignation – 36.5%
- Retirement – 24.3%
- Termination – 17.4%
- Promotion – 13.9%
- Lateral moves within the company – 4.3%
- Demotion – 3.5%
Survey results also showed that 64% of officers terminated were recruited laterally, emphasizing the importance of culture in hiring externally.
“The energy industry is facing an imminent shortage of executive talent as well as a lack of employees with the required competencies these companies need to compete in the global marketplace,” said John Lamar, The Alexander Group’s Managing Director and Head of its Energy Practice. Of the functional areas, the chief executive officer role experienced the highest rate of turnover at 28.9%, followed by chief operating officers, and divisional or regional heads. Counsel and public affairs roles saw the least turnover at 1.7% 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. Respondents noted 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% growth in available positions from July 2012 to July 2013. Respondents stated they anticipate similar turnover during the next two years, with particular hiring needs in the finance and operations functional areas.
“Based on these findings and on the activity we have observed over the last 90 days,” said Lamar, “we see the high turnover continuing at least through the end of the year. The Alexander Group and other retained 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.”
The Alexander Group is a premier, global provider of senior-level executive and board searches for a wide range of clients, including not-for-profits, multinational corporations, energy companies, and professional services firms. For more than 30 years, The Alexander Group has conducted senior-level executive searches for its global clientele. From offices in Houston, New York, London, San Francisco, San Diego, and Park City, Utah, the firm serves clients around the globe. For more information, visit www.thealexandergroup.com.