Recruitment

MEETING RECRUITMENT CHALLENGES DURING MERGERS AND ACQUISITIONS

Mergers and acquisitions are conducted with balance sheets and bottom lines in mind but it is important to ensure workforce challenges do not spring up as a result of major corporate moves, as the possible merger of Subsea 7 and Saipem demonstrates.

AT THE END of 2019, the oil and gas industry was abuzz with the news that UK’s Subsea 7 and Italy’s Saipem may be merging. At the time of going to press, the merger had not yet been confirmed but it does shine a light on the importance of ensuring such major corporate moves do not create recruitment issues. When the story of a possible merger broke last November, Samuel Knight International took the opportunity to make the point that talent attraction and retention should be made a priority during big moves.

The merger, if it takes place, of these two companies could rank as one of the European oil services industry’s biggest-ever deals and result in more than US$12.4bn in revenue, however, the challenge of sourcing the right skills remains.

Commenting on the reports

It is no secret that skills shortages are adding to the strain and companies must ensure they have the capacity to attract workers to the industry”

A major merger can be a new dawn for recruitment – if it is managed properly.

of the potential oil and gas contractor merger and its possible impact on human resources, George Wallis, Business Development Manager at Samuel Knight International, said, “Saipem and Subsea 7 have held talks about a merger in previous years, though they failed to reach an agreement. If this deal goes through, the joint force will be the fourth-largest oilfield service firm and will create an even stronger presence within the SURF segment. This, of course, is fantastic news for the sector, but with the subsea industry expecting a rise in new projects, workforces will be stretched even further. It’s no secret that skills shortages are adding strain, and in order for this to not be exacerbated further, the two companies must ensure they have the capacity and ability to attract workers in this talent-strapped industry.”

Mr Wallis went on to offer advice to the two companies, which could certainly be applied to other big companies looking to join forces. “The two oil and gas contractor giants must invest time and money to create sustainable talent pools, ready for the new challenges ahead,” he said. “Both Saipem and Subsea 7 have stated goals of decarbonisation in order to become greener energy service companies, and with acute skills gaps already affecting the sector, sourcing the workers needed to achieve these goals must be planned strategically.

“While solving the sector’s skills shortage will not happen overnight, there are actions that can be taken now, such as recruiting from wider talent pools and enhancing employer branding to attract a more diverse workforce. By acting strategically, and making more noise about the exciting opportunities available, we will be able to overcome skill gaps and create sustainable workforces,” he concluded. 