The oil & gas (O&G) industry is struggling to bridge the gender pay gap, but come 2018 all companies with over 250 employees will be required by law to publish their gender pay information.
Analysis of our database, comprising pay data from over 13,000 UK employees in the O&G sector, indicates that the industry still has some way to go to reach parity in gender pay.
Making significant headway in this area within the government’s allotted timeframe will require collaborative steps to be taken by four industry stakeholders: organisations, line managers, female employees and the government.
A simple comparison of average pay for men and women in the sector indicates that men are paid 20.6% more, receiving an average salary of £74,799 compared to £59,395.
This can be explained by the fact that high salaried roles in O&G tend to be deeply technical – and the majority of these roles are held by men.
While this pattern is visible across all UK sectors, the issue that the O&G sector faces is that the ‘like-for-like’ gender pay gap is also comparatively high.
At 5.3%, it is over double the UK average, and the largest gap among all UK sectors.
Men and women typically like to work in different ways. Prestige and promotion are often linked to being in the office, but research indicates that women find presenteeism more challenging than men.
Organisations can accommodate differences by ensuring reward strategies recognise productivity rather than hours in the office.
Reward and benefits packages also need to meet the requirements of both men and women.
Companies need to become adept at spotting women with technical talent and leadership skills at the early stages of their careers.
Organisations can do this by auditing the internal landscape that their employees operate in, which will ensure specific pressure points for women are identified and tackled.
This will help ensure that women are supported, and that gender balance is inbuilt within future senior teams.
Line managers play a critical role in helping their businesses to achieve internal targets for percentages of women in senior roles.
Managers should actively sponsor and encourage female colleagues to become involved in visible and complex projects that build technical skills and expand their networks.
They also need to give regular feedback, thinking carefully about the message they give female employees, ensuring that it is both relevant and understanding of the context that women operate in.
Narrowing profit margins have prompted significant cuts in the sector. If redundancies have to be made, it’s the holders of highly skilled jobs that will weather the storm, as these are deemed more necessary than administrative roles.
If women truly want to make themselves indispensable, they need to consider taking on more technical roles within their organisations.
Women also need to be clear and intentional in their wish to be put forward for challenging projects that will develop their executive presence and lead to them delivering real and visible impact for their organisations.
The perception of O&G as a male industry is a significant part of this challenge. Resolving this problem will depend on the government, educational intuitions and people working together.
Throughout their education women should be encouraged to study STEM subjects crucial for pursuing a career within this industry.
At a time when reduced profit margins are squeezing budgets across the board, it’s hard to have a long-term strategy for recruitment and employee development.
Nevertheless, this is also the time that savvy organisations will get on the front-foot. By ensuring that they have the right structures in place to develop female talent within, and outside of, their organisations, they will broaden their talent pool, and shore-up their corporate reputation in the process.
Steven McHaffie, is director of Oil and Gas at Korn Ferry Hay Group and Dési Kimmins is a principal consultant, Korn Ferry Hay Group