Unfortunately, over the last six to nine months there have been a few stories of agencies in the Oil & Gas sector who have been unable to continue trading, and because of this have caused financial upset to not only its staff, but the contractors that it managed. This has not made nice reading and in particular hearing people who have lost out on hard earned salaries is tough to read.
So how can contractors, agency staff, and clients themselves make sure they are engaging with a reputable agency that can offer long term support and financial stability? Well here are my recommendations:
- Look at how long the agency has been trading and in particular in your industry. Is it a new outfit that has the cash stability to run a contract portfolio?
- What is the reputation of the agency and what accreditation does it hold? Within the recruitment industry there are several bodies that have been set up to support the industry in championing excellence within recruitment, one of which is the REC. Any agent who is serious about the recruitment business will be affiliated with one or ideally both of these professional bodies.
- Are all its eggs in one basket? The recent downturn in the Oil & Gas market has highlighted exactly what can happen to a supplier who works solely in one market – they have no back up. Look for an agent that has dealings in several different markets as this will be a sign that they are more financially secure as they are making income from different industries. This will mean that financially, it can support you rather than just close down when one market is in difficulties!
- Do you have a regular contact at your agency? Keep getting moved from one contact to another? Does it have a local presence and is keen to meet on a regular basis? All questions that you need to ask yourself when you engage with an agent. And if your contact keeps changing then that could be the first warning bell that all is not well.
I hope these few pointers help. Collaboration is a word in common use in the current Oil & Gas market and I think it is essential that the market works together now more than ever to get through this downturn. Working together and supporting people and businesses is key.
Contractors - make sure your agent is strong enough to support you.
Clients - is your supply chain well vetted with the right agents which can represent your brand and support your contract work force?
ARM has been in business since 1996 and the Engineering business works across the Oil & Gas, Marine & Shipping, Infrastructure & Built Environment, Vehicle Technologies, Manufacturing & Technologies and Defence & Aerospace markets. Additionally the IT business cover Information Technology and Cyber Security markets. We have offices in Havant, London and Aberdeen.
If you think ARM can assist you in any way then please feel free to contact me or one of my team.