Salary: Is It Really a Motivation in the Energy Industry?

Is salary still the sole motivating factor in the energy industry?

If the opinion of energy industry professionals is any indication, one of the most difficult questions to answer in a job interview is “How much is your expected salary?” Considering that at the outset, approximately 80% of all professionals feel that the most important factor in considering a job opportunity is salary, estimating one’s compensation requirement can be a daunting task, especially if one is put on the spot.

Scratching beneath the surface, however, a question may pop in one’s mind: Is salary indeed the be-all and end-all of maintaining the engagement and the high performance of an employee in the energy sector? This thought is of particular interest to employees, because the answer to that question may lead them to consider other factors in making a career decision other than monetary rewards. On the part of industry companies, knowing the response to this conundrum may help them formulate other employee satisfaction schemes, aside from regular pay increments and financial bonuses.

The results of a latest study circulated through Harvard Business Review reveal that the association between salary and job satisfaction, regardless of culture and job location, is very weak. The reported correlation indicates that there is less than a 2% overlap between pay and job satisfaction levels. Moreover, the study also suggests that the connection between pay and pay satisfaction was only slightly higher, meaning that the employees’ fulfillment with their salary is largely independent of how much they are actually receiving.

Are employees receiving hundreds upon hundreds of thousands of Dollars more satisfied than those that get less? Not really. The study indicates that employees earning salaries in the top-level of the data range considered reported similar levels of job satisfaction as those employees earning in the bottom-half.

In fact, what is more shocking is that higher salaries can actually even demotivate employees.

In another study still published in Harvard Business Review, results from over 120 experiments reveal that incentives may have negative effects on employee motivation. This observation is particularly more prevalent when tasks were interesting or gratifying. The research shows that for every standard deviation increase in remuneration, intrinsic motivation for interesting tasks decreases by around 25%. Moreover, when rewards are monetary, tangible, predictable and foreseeable, employee engagement could go down by as much as 36%. 

Can money buy employee engagement?

Though not to be taken as absolute truth, results from the studies cited above reveal that money does not always buy employee dedication, satisfaction and performance. No matter if the salary of an employee in an energy company falls under these brackets…

ENERGY INDUSTRY SALARY SURVEY

Position	Ave. annual salary*
CEO	USD $655,365
Energy Procurement Specialist	$393,550
Power Consortium Manager	$163,804
Vice President	$143,915
CFO	$140,434
Performance Engineer	$137,826
Startup Engineer	$130,109
Energy Scientist	$137,253
Commissioning Manager	$129,713
Structural Drafter	$121,540
General Manager	$120,590
Oil & Gas Division Manager	$112,490
Petroleum Engineer	$101,763
Power Plant Manager	$101,290
Startup Manager	$101,050

*Source: Recent survey from a recruitment firm based in Dubai. Salary survey conducted online to mechanical, electrical and non- engineering positions within the utility power plant, oil & gas and energy related industries.

…or if he or she is constantly showered with bonuses and allowances, money is not an unconditional guarantee for his or her engagement.

One thing, though, is clear: The meaning of money to different people is largely subjective. Different individuals see different values in money for a variety of reasons. If employees in the energy industry, and also in other sectors, want to be truly happy with their jobs, they have to understand what they really value – be it power, freedom, job security, co-employees or friendship in the workplace. Conversely, if companies want to motivate their workforce and retain their best assets, they have to look beyond the premise that what works for some people will also work for everyone else. The onus is on them to know their employees better and to fashion a compensation system that they think will yield the maximum results.

About Altaaqa Global

Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, natural gas, or dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed. 

For more info, visit www.altaaqaglobal.com 

Media Inquiries:

Robert Bagatsing

Altaaqa Global, Caterpillar Rental Power

T: +971 4 8808006   |  F: +971 4 8808007    |  M: +971 56 1749505

E: rbagatsing@altaaqaglobal.com

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