Executive Benefit Solutions for the Energy Industry
Firms in the oil, gas, and energy-related industries must manage a wide range of risks in their core operations on a daily basis. The ability to do so effectively is a critical component of these firms’ success. Typically management is focused on potential risks to property or liability exposure. However, they often overlook risks associated with their companies’ most valuable assets: the key employees most critical to an organization’s success. The loss of one or more of these executives could leave profits and equity exposed, and in some cases could leave the very future of the company in jeopardy. Managing this risk requires a creative, cost effective strategy for recruiting, retaining, and rewarding top talent.
Historically, large energy companies have done an effective job of implementing these strategies through generous executive benefit offerings. However, many small to midsize energy companies offer few or no benefits specifically for their executives, only providing the same core benefits that they offer to all of their other employees. They may also provide cash-based, short-term incentives to their key employees, but these offerings lose any retention value once they are paid to the executive. If small to midsized energy companies are going to compete with larger organizations, they will need to look beyond core benefits and cash compensation to differentiate their executive compensation and benefits packages from their peers.