2023 Pay trends in the Energy and Natural Resources industry

Employee attraction and retention plague organizations around the globe

Organizations are struggling to fill key roles at every level

Key roles for which employers will be recruiting in the next 12 months

2022 saw the highest salary budget increases in nearly 20 years

Given the fundamental role salary plays in an organization’s ability to attract and retain talent, employers plan to carry this adjustment through to 2023 – yet remain cautious about how and when they allocate the overall budget.

Additionally, organizations leveraged bonus payouts in 2022 and, again, are on track to the same in 2023

21%: Average 2022 projected variable payout for middle managers and professionals.

Organizations around the world have taken or are considering taking the same three actions

Top 3 highest-paid functions across all industries at Professional Level 3 (P3)

Median pay mix for Manager level 3 (M3) in the Data Scientist function

There are a handful of roles that will receive the highest pay premiums across regions

Trends that will drive 2023 rewards decisions

1. As organizations work to become more sustainable through cleaner energy initiatives, talent and upskilling will be in demand to accommodate this modernization as well as a rapid shift toward power, synfuels and hydrogen.
2. Though traditional power-generation operations are still peaking – and expected to do so until 2025 – organizations will need to focus on renewables and decarbonization technologies as the world shifts away from carbon-emitting fossil fuels (oil and gas executives expect their core business to decline in the next 10 years).
3. Economic volatility and uncertainty could lead to lower investment levels and economic growth, which will force organizations to review their workforces and be more cautious about increasing salaries (among many other things).
4. Organizations will look beyond pay and take a holistic view of total rewards to create employee experiences that attract and retain the talent needed to drive business objectives.
5. To effectively compete against industry peers, compensation and HR professionals will seek a more sophisticated understanding and application of data in their strategic total rewards practices and policies.