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THE Indian petrochemical and oil & gas industry witnessed an average 2 per cent drop in talent demand in Jan-Jun 2016. Hiring was sluggish during the first

four months of 2016, it picked up pace in May and Jun 2016. Demand for talent was highest in Jun (3 per cent). The Hydrocarbon Sector Skill Council (HSSC), set up by the Government of India under Skill India initiative, plans to train over 1.9 million people in this sector over next decade. This hints at a rising need for trained manpower. The RecruiteX report for Jan-Jun 2016 also shows increased demand for professionals in this vertical. In terms of location, metros retained demand for experienced staff and entry level candidates witnessed more jobs in Tier II and III locations. Jobs are anticipated to come up in North-Eastern states in times ahead with the release of the Hydrocarbon Vision 2030 for North East India, which aims at leveraging the north-eastern region’s hydrocarbon potential and facilitate economic development by involving local population in the economic activities in this sector.

Engineers across all specialisations sought at mid and senior level

Industry average and demand100

87.5

75.0

62.0

50.0

79

64

83

71

Jan 16 Jun 16

Market Average

Demand

n Engineers’ job share was almost 50% at junior level; demand was up at middle and senior level

n Junior level continue to claim maximum job share, but demand was sluggish

n Similar to Jul-Dec 2015, middle and senior level saw highest demand in most profiles

n Plant management, production, maintenance and oil & gas saw significant demand rise

n Small cities had highest demand at junior level, metros and big cities had most middle and senior level jobs

KEY TAKEAWAYS

PETROCHEMICALS/OIL & GAS

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n Oil & gas specialists claimed maximum job share; demand grew by 7%

n Plant management specialists posted over 30% rise in demand in Jan-Jun 2016

n Corporate sales posted 20% rise in demand; channel sales saw 5% drop

n Quality assurance specialists posted 17% rise; up by 7% in Jul-Dec 2015

n Software engineers, with negligible job share, saw 25% rise in demand

n Engineers had most jobs (47%) at middle level; demand dropped by 4%

n Sales/BD with second highest job share saw over 30% rise in demand

n IT professionals saw 18% rise in entry level demand in Jan-Jun2016

n Customer support saw 1% rise; demand grew by over 30% in Jul-Dec 2015

n Core oil & gas verticals posted 10% rise in demand; up by 16% in Jul-Dec

n FUNCTIONAL AREAJobs for engineers

n Despite maximum job share, demand dropped in Mumbai by 1%

n Lucknow posted maximum (26%) rise in demand at entry level

n Delhi-NCR with second highest job share reported 1% drop in demand

n Bengaluru was the only metro post rise (4%) in demand at entry level

n Chandigarh saw 13% rise in demand; international locations posted 4% rise

n TOP LOCATIONSDemand up in small locations

Share of jobs in top locations

Mumbai

Delhi-NCR

International

Pune

Bengaluru

Others

18%

14%

9%

6%

5%

48%

n AREA OF SPECIALISATIONPlant management skills in demand

Share of jobs in area of specialisation

8%

Oil & Gas

Production/Manufacturing/

Maintenance

Engineering

Electrical/ Electronic

Plant Maintenance

Others

5%5%

3%3%

76%

Share of jobs in top functional areas

8% Accounting

8% Quality Control

4% HR/PM/TD

20% Others

47% Engineering

13% Sales/BD

MUCH like the trend in Jul-Dec 2015, engineers took most share in job postings at junior level in petrochemical/oil & gas industry during Jan-Jun 2016. However, their demand

fell during the same period. Demand was highest for sales/business development roles during Jan-June 2016. Specialisations in oil & gas, quality assurance, corporate sales were sought at entry level in this period. Unlike the trend in Jul-Dec 2015, demand rose for junior level jobs in production/manufacturing/maintenance specialists in petrochemical sector in Jan-June 2016. Plant management skills were sought after at junior level. Demand trends in location-analysis followed the same trend as in Jul-Dec 2015 with Mumbai claiming biggest job share but not registering growth in talent demand. Tier II cities were top performing locations.

JUNIOR LEVEL[ PETROCHEMICALS/OIL & GAS ]

There is difference between the skills taught on campus and those required for the job. These skills could be technical or managerial. There is a great need for campus - industry partnership so that the industry has the right manpower.

Harsh Bhosale,Head – HR, Essar Oil

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Share of jobs in top locations

Mumbai

International

Delhi-NCR

West Bengal

Ahmedabad

Others

12%

12%

10%

5%

5%

56%

n Oil & gas specialisation saw maximum job share, over 30% rise in demand

n Engineers with second highest job share also reported over 30% rise in demand

n Channel and corporate sales saw 23% rise; grew by over 30% in Jul-Dec 2015

n Project management saw 7% drop; was up by 30% in Jul-Dec 2015

n Demand for plant maintenance was up by 22% in Jan-Jun 2016

n Sales/BD with maximum job share saw over 30% rise in demand

n Despite decline in job share, engineers reported 15% rise in demand

n Logistics profile with second highest job share saw 8% rise in demand

n HR and IT professionals posted over 30% rise in demand

n Front office profile saw 13% rise in demand; marketing posted 1% rise

n FUNCTIONAL AREASales professionals sought

n Mumbai and international locations claimed maximum job share

n All four metros posted over 30% rise in demand during Jan-Jun 2016

n International locations and Hyderabad reported 30% rise in talent demand

n Pune posted 20% rise in demand; Vadodara saw 29% rise in Jan-Jun 2016

n Among states, Gujarat (except Ahmedabad and Vadodara) continued to lead

n TOP LOCATIONSHiring up across key job hubs

n AREA OF SPECIALISATIONDemand up in core oil & gas vertical

Share of jobs in area of specialisation

5%

Oil & Gas

Engineering

Channel Sales

Corporate Sales

Project Management

Others

4%4%

4%4%

79%

Share of jobs in top functional areas

4% Bus. Mgmt.

3% Accounting 3% Marketing

43% Others

38% Sales/BD

9% Logistics

MIDDLE level professionals accounted for nearly 30 per cent of total job postings in the petrochemical/oil & gas sector in Jan-Jun 2016. Demand was high across core specialisations.

Among functions, support functions reported increased demand, contrary to the trend in Jul-Dec 2015 when core roles ruled middle level demand in this sector. Sales roles with maximum job share also claimed highest rise in talent demand at middle level in Jan-Jun 2016. Among locations, demand was high across most major job hubs. Mumbai and international locations claimed the most number of jobs and also reported significant rise in demand during Jan-Jun 2016. Among states, talent demand peaked in Gujarat (except Ahmedabad and Vadodara), while Karnataka (except Bengaluru) posted a drop.

MIDDLE LEVEL[ PETROCHEMICALS/OIL & GAS ]

Hiring will see growth of 5-10% as this industry faces pressure due to

falling oil prices. Demand will be for process, structural and electrical

design engineers, technical sales, geologists, QA and procurement.

Sunil Goel,MD, Global Hunt

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n Production/maintenance claimed the maximum job share; demand up by 20%

n Electrical, civil, and mechanical engineers saw over 30% rise in demand

n Quality control witnessed 10% rise; demand grew by 30% in Jul-Dec 2015

n Demand in operations and channel sales went up by 15% in Jan-Jun 2016

n Demand in plant maintenance fell by 21%; was up by 30% in Jul-Dec 2015

n IT professionals claimed maximum job share and over 30% rise in demand

n Engineers and sales/BD also saw over 30% demand rise in demand

n Business management posted 6% rise in senior level talent demand

n Quality assurance and oil & gas function saw 4% rise in demand

n Marketing profiles posted 10% drop; was up by 14% in Jul-Dec 2015

n FUNCTIONAL AREASenior tech professionals sought

n Pune claimed maximum job share; demand was up by over 30%

n Delhi-NCR and Bengaluru too clocked over 30% rise in talent demand

n Chennai saw 25% rise in talent demand at senior level in Jan-Jun 2016

n With 5% job share, international locations posted 30% rise in demand

n After being top performing state in 2015, West Bengal saw 30% drop

n TOP LOCATIONSMost jobs in big cities

Share of jobs in top locations

Pune

Bengaluru

Chennai

International

Maharashtra*

Others

37%

19%

5%

5%

2%

32%

n AREA OF SPECIALISATIONEngineering specialisations in demand

Share of jobs in area of specialisation

6%

Production/Manufacturing/

Maintenance

Plant Maintenance

Civil

Electrical/ Electronic

Quality Control

Others

5%5%

4%3%

77%

Share of jobs in top functional areas

2% BFSI

2% Bus. Mgmt

1% Engineering

32% Others

32% IT/telecom

31% Sales/BD

ENGINEERS, sales/business development, IT and HR professionals saw considerable rise in demand at the senior level in Jan-Jun 2016. IT professionals had 32 per cent job share at senior level, followed

by sales/BD with 31 per cent share. Accounting and finance roles saw increased talent demand at senior level in this period. In specialisation, production/manufacturing/maintenance, electrical/electronic, civil and mechanical topped the demand scene at senior level in Jan-Jun 2016. The highest number of jobs for senior talent was in Pune, followed by Bengaluru in Jan-Jun 2016. Demand was up for metros, except Mumbai. International locations posted considerable rise in demand at senior level in the petrochemical sector. Among states, Gujarat (except Ahmedabad, Vadodara) posted considerable rise in job share and talent demand.

SENIOR LEVEL[ PETROCHEMICALS/OIL & GAS ]

India is the fourth largest consumer of crude oil and petroleum products globally. Recruitment will pick up pace. We expect demand for engineers to go up especially in mechanical, subsea and offshore specialisations.

Kamal Karanth,MD, Kelly Services and Kelly OCG

*Except Mumbai and Pune

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Hiring entry level talent from premier universities within India and globally to build organisation capa-bility will be the differen-tiator. Recruiters are now becoming more as advisors to business rather than just being sourcing specialists”

Game changers n Social media and use of innovative technology and tools in recruitment will be the game changer in recruitment for 2016. n Job portals, networking platforms and talent networks will continue to be used by recruiters and will emerge as a powerful tool to access talent globally. n For HR leaders, quality rather quantity will be an important metric for companies to track. In our industry particularly, where we do not hire lateral talent in a big way, getting the right quality of hires right is an important goal. n Hiring entry level talent from premier universities within India and globally to build organisation capability will be the differentiator. n Lastly, recruiters are now becoming more as advisors to business rather than just being sourcing specialists.

Role of technology in HRn Technology will continue to play a big role in HR and will be used across

the entire life cycle of an employee right from recruitment to onboarding to performance appraisal and exit process in the organisations, globally. n Using technology to simplify HR processes will be the key. HR process apps will make a big way as more and more working professionals are available on smart phones. In recruitment particularly, organisations are moving to Application Tracking Systems (ATS) to bring greater efficiencies in their hiring process.

Skills in demandEntry level: Talent in engineering and mining streams who are team player and have analytical skillsMiddle level: We look for talent with team management skills and have domain expertiseSenior level: We look for talent with business acumen, strategic bent of mind, stakeholder management, building the brand and global experience

Compensation trends Entry level: 10-12%Middle level: 9-10%Senior level: 8-9%Premium/high paid profiles: For premium/high paid functions/roles 12 -15% increment, including corrections and promotions for deserving talent is expected.

Emerging skillsn Corporate finance, M&A and skills focused on unlocking shareholder valuen Innovation and technologyn Exposure to global markets is a skill which gives organisations access to global best practices and benchmarking and thus it will be among the desired skills while hiring future talent.

Future outlookn In the petrochemicals/oil and gas sectors, organisations will continue to build talent from within. They will do this by developing and nurturing their top talent and giving them internal career growth opportunities. n Another focus area for HR managers would be campus recruitment. This will be a big part of the pie in the overall hiring needs of the organisation. n And of course, niche skills will continue to be hired and command premium. n Companies would focus on building capability and getting ready for future.

Organisations will focus on developing and nurturing talent from within

PETROCHEMICALS/OIL & GAS INTERVIEW Madhu Srivastava Group Head-TA, Diversity & Inclusion, Vedanta