KUALA LUMPUR (Feb 4): The oil and gas (O&G) industry professionals are being forced to look at opportunities outside the industry as the sector is facing the prospect of further redundancies in the year ahead, according to recruitment specialist Hays Inc.

Hays Inc O&G managing director John Faraguna said in a statement today that few, if any, O&G employers are predicting headcount growth for 2016 with most struggling to retain existing staff and many looking at trying to make cost savings through reducing salaries and rates.

"The fall in oil prices is causing more challenges than initially meets the eye — it's not just about the fall in profitability and the reduction in the industry's workforce.

"Headcount losses and the resulting potential brain drain to the industry, coupled with the inevitable halt in hiring fresh talent, could lead to more acute future skills shortages," he said.

According to Faraguna, with majority of businesses affected by the downturn, the focus has been keeping headcount costs low in order to remain profitable.

However, he noted employers must consider how employer reputation can affect an organisation's ability to attract and retain top professionals in the industry as 41% of O&G professionals said a company's reputation is the number one factor when evaluating a job, both for an internal move or a role with a new employer.

"60% of respondents who have been laid off or made redundant said they did not receive any assistance from their previous employer in helping them secure a new role. Businesses that do assist recently laid off or redundant workers in seeking new employment, such as providing time off for interviews or being introduced to a recruiting firm, can improve their reputation," he added.

Faraguna said supporting workers throughout the full work life cycle, including exiting the business, will help preserve a good reputation, as well as help ensure that when market conditions improve, the employer brand is still attractive.

"With hiring plans low on the agenda for the foreseeable future, there is a storm gathering within the industry. A pause in hiring today could create an even greater skills shortage than that caused by the downturn of the mid-to-late 1980's.

"Employers should be looking at their training offering and implementing succession plans to retain current staff and build a reputation as a top employer to help attract candidates in the future," he said.

According to the seventh annual Oil & Gas Global Salary Guide, which was compiled in November 2015, the fall in oil prices has impacted the industry's workforce globally.

The survey showed that 32% of survey respondents said they had been laid off or made redundant and 93% of employers said they had made some level of headcount reductions over the past 12 months, while 72% of those surveyed, and who have been laid off or made redundant in the past year, are considering looking for a role outside of the industry.

"If workers begin to leave the industry this could cause a brain-drain of talent within the sector, potentially creating future talent pipeline challenges," the survey highlighted.

With skills shortages a major concern for employers in the region more widely, Hays said this talent drain is likely to create further issues when the market picks up again.

Among the key findings for Malaysia include 51% of employee respondents saying they would consider a cut in salary to retain their current job.

Meanwhile, 42% of O&G professionals said compensation is the number one factor when evaluating a job, ranking above company reputation (33%), career progression (14%) and benefits (12%).