Our latest blog from Sarah MacFarlane, Senior HR Consultant about the value that can be added through salary surveys.
According to Aberdeen City Council the oil industry in Aberdeen and Aberdeenshire employs 137,300, directly and through the supply chain. That’s a lot of people and families relying on income and financial security generated through the work that they do in the oil industry. The Telegraph (07/02/2015) reported that Aberdeen remains the most economically productive region in the whole of the UK, outside inner London. Doesn’t feel like that at the moment though, does it?
In 2009, the Global recession that hit the UK, like an elephant jumping into a paddling pool from a mighty height, went un-noticed by most in Aberdeen and the surrounding area. However, the dramatic fall in oil price during the tail end of 2014 and current volatile market have had a far greater impact on business and not just on those directly involved in the oil industry.
Some organisations reacted quickly, and with force, to cut overhead costs; large numbers of Limited Company Contractors found themselves looking for new contracts / projects, first and second round redundancies have been common place along with other cost cutting exercises such as; salary and pension contribution reductions, and removal of ‘perks’ previously taken for granted in an effort to retain headcount. Other companies sought to wait and see what action their competitors were taking before making business-critical decisions.
So what does this mean for those responsible for looking after the staff who have survived the first or second round of redundancies, who have lost colleagues and whose workloads have increased for, in many cases, less pay than before? ACAS advise that if employers are able to consider those who remain within the organisation following redundancy processes, they should have happier, more engaged workforces following headcount reductions. However, the reality can often be very different, and personnel may have feelings which include; reduced morale and motivation, lack of trust and a sense that their job is vulnerable. It’s tough for everyone at the moment.
To help employers to make sound decisions regarding remuneration and reward, The Urquhart Partnership are delighted to be running a Business Support and a Workshop/Technician Salary Survey 2015. With an Oil & Gas focus, the surveys have been running successfully since 2008 and have been specifically designed for companies in the service and support sector who are primarily operating in the North-East of Scotland.
In addition to carrying out salary and reward benchmarking exercises, there are other positive actions and recommendations that we can suggest, for example:
- Ensure you actively engage, communicate and motivate your employees who remain
- Ensure that Contracts of Employment, Employee Handbooks and Policies and Procedures are up to date and relevant
- Establish how your remaining workforce are really feeling
- Ensure that those who remain are competent in their revised roles and have the skills to carry out increased role responsibilities through development and training
While many employers will find that staff retention has increased almost by default due to the current downturn, they still need to ensure that they remain competitive in terms of remuneration and reward. When the market eventually picks up, staff who have remained loyal and are performing strongly in their jobs, may look to move to a competitor who is paying more or is offering a better overall remuneration package.
Speak to The Urquhart Partnership to find out more about our current Salary Surveys or to find out how our HR, Development and Recruitment Teams can help you to take cost effective, positive action. Call us on 01224 643465 or email firstname.lastname@example.org to discuss.