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#52970 - 03 Jun 07 11:39 JP/Shortage of skilled workers hits oil and gas companies
biznews Moderator Offline
Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
Shortage of skilled workers hits oil and gas companies

The Jakarta Post, Jakarta

Local oil and gas companies have begun to suffer from a shortage of skilled workers because many local professionals prefer to work overseas, an oil drilling executive says.

"The shortage of professionals in the oil and gas industry is getting worse, as most of the existing companies need more skilled workers to support their expansion projects," said Mohammad Zulkarnain, finance and administration director for state-owned PT Elnusa Drilling Services.

He was speaking in a discussion on human resources in the oil and gas industry held by recruitment agency PT JAC Indonesia on Thursday.

He worried that the shortage of professionals would hinder the government's plan to boost oil production to 1.3 million barrels per day by 2009, from the current level of 1 million barrels.

"In the past, we could easily recruit so many professionals," Zulkarnain said. "Now, things are quite different because local professionals prefer to work overseas, either in the Middle East or Europe, largely because of better pay," he said.

As a result, he added, most local oil and gas companies were in a quandary. "Senior professionals who are paid between US$5,000 and $7,000 monthly are certainly too expensive for them, while hiring fresh graduates is also a problem due to lack of skills even after six months or a year of training," he said.

Zukarnain said companies had also been discouraged from hiring fresh graduates by a law stipulating that dismissed employees get severance and reward pay.

For example, those who have worked for less than a year are entitled to severance pay equaling one month's salary. Those who have worked for three years are entitled to four months of salary and two additional months' worth of reward pay.

Local oil and gas companies also faced difficulties replacing workers who were hired away by other companies, he said.

A participant from a human resources consulting firm said despite searching, the firm could not find "the perfect candidates" to work on the Natuna D-Alpha gas block in the Natuna Sea. (06)
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#52984 - 04 Jun 07 07:09 Re: JP/Shortage of skilled workers hits oil and gas companies [Re: KuKuKaChu]
Dilli Offline
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Registered: 26 Feb 06
Posts: 8044
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"A participant from a human resources consulting firm said despite searching, the firm could not find "the perfect candidates" to work on the Natuna D-Alpha gas block in the Natuna Sea"

Whats the money like?
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#52988 - 04 Jun 07 07:52 Re: JP/Shortage of skilled workers hits oil and gas companies [Re: Dilli]
KuKuKaChu Moderator Offline
Pooh Bah

Registered: 09 Oct 05
Posts: 10790
Loc: Centre of the Universe
Quoting: Dilli
"A participant from a human resources consulting firm said despite searching, the firm could not find "the perfect candidates" to work on the Natuna D-Alpha gas block in the Natuna Sea"

Whats the money like?

clearly less than perfect ...
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#52989 - 04 Jun 07 08:24 Re: JP/Shortage of skilled workers hits oil and gas companies [Re: KuKuKaChu]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
clearly the problem is not that they can't find them but there are many issues that stand in the way of finding these people. Some that spring to mind include:

1. BP Migas who always slow down any recruitment process

2. Indonesian companies (including the Multi-nationals here) not being quick enough to understand they have to compete with global demand when it comes to salary of Indonesian nationals

3. HR departments protecting their "payments" to the extent of not allowing line managers to hire talent from an "unapproved vendor". Recently a consultant of mine sent a CV to a line manager who bit his arm off for the CV saying he had been looking for over a year for somebody with the skills of this guy. As perfect as this person was (even salary was under budget) HR would not let the deal happen!!

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Edited by Piss Salon
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#52993 - 04 Jun 07 08:41 Re: JP/Shortage of skilled workers hits oil and gas companies [Re: chewwyUK]
Dilli Offline
Pujangga Besar

Registered: 26 Feb 06
Posts: 8044
Loc: Nearest Bar
Re item 3: Let me guess, the job went to a semior managers friend who did not have the same qualifications?
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#52996 - 04 Jun 07 08:48 Re: JP/Shortage of skilled workers hits oil and gas companies [Re: Dilli]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
no better than that ..... the only way HR would let this guy start is if he came from one of the "official suppliers". So not this company ended up paying a double recruitment fee as I charged the official supplier 200 million who then charged this company 400 million).

amazing isn't it !
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Edited by Piss Salon
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