In case you’re curious, the fastest-growing profession over the past 10 years in the U.S. is … drumroll, please … service unit operators in oil, gas and mining. This shouldn’t come as too much of a surprise, given rising energy prices and the increased extraction of non-conventional fuel sources.
But where are these jobs located?
The biggest job growth in this profession comes from the largest oil-producing states and over the last five years, the top crude oil-producing states were Texas, North Dakota, California, Alaska and Oklahoma.
A lesson in compensation
We pulled compensation for these five states over the past year using data from Economic Modeling Specialists International, a CareerBuilder company, and the median earnings is $18.88 per hour.
If you compare that you the pay rate nationwide for the same profession, the median earnings is $20.18 per hour.
Surprisingly, Texas produced the most oil annually in 2013, but paid the same rate as Oklahoma, which produced the least amount of crude oil among the top five.
You don’t need a degree in math to realize something’s a bit off here. That’s not exactly what you’d expect to find, is it?
What does this mean for employers?
In a nutshell, it means that employees at oil-producing companies in Texas are on average severely underpaid, even though they yield the most output. Not only are Texans making less than the nationwide average of $20.18, but other top oil-producing companies in other states pay $4-7 more per hour.
This could pose problems. It makes Texas oil-producing companies less competitive and may lead to job migration over time.
Whether you live in Texas or not, take note: This should be a lesson for employers in ANY state. If you don’t do your homework and research the optimum compensation to offer your workers for particular positions, it can lead to consequences that may include turnover and overall make you less competitive. Because at the end of the day, you can’t ignore the fact that in order to achieve long-term success, companies like yours need to THINK long-term and make sure they’re paying the right compensation to the right people to reduce the risk of top talent walking out the door and into the arms of competitors.
Why not take a step in the right direction by accessing the most fresh and accurate compensation data from CareerBuilder’s Compensation Portal? Try it now.
How will job growth for service unit operators in oil, gas and mining jobs fare over the next five years? We used EMSI data once again to take a look at the same top five oil-producing states.
Nationwide growth is positive at 19.9 percent, but three of the top five states show higher growth rates: North Dakota (23.1 percent), Alaska (21.6 percent), and Oklahoma (21.8 percent).
Texas is currently producing the most oil annually, but projections over the next five years are lower relative to the competing states — particularly North Dakota and Oklahoma. In those latter two states, the current pay rate accurately reflects the projected output and is indicative of where growth will be in the future.
Now, if you do your homework but conclude that you REALLY cannot afford to increase compensation, it may be wise to brainstorm other ways to attract and retain desirable candidates. Start by considering these 15 little employee perks that go a long way.
Tell us in the comments below: How has underpaying hurt your business in the past? And how can the right compensation enable your company to become more competitive in the marketplace?