The Recruiting Challenge for Oil Companies in Iran
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June 2004
Hiring qualified bilingual staff is often one of the biggest challenges faced by multinational corporations venturing into Iran. In a recent survey of multinationals conducted by IranTalent, attracting and retaining qualified personnel was ranked as the second biggest challenge of operating in Iran, after regulation and government bureaucracy. |
| Causes of Staff Shortage |
| The problem is caused by a number of factors. First is the sheer shortage of bilingual professionals across the country. Furthermore, there is limited familiarly with the modern recruitment process, such as CV writing, as it is not covered in the national curriculum and most candidates are accustomed to finding jobs through contacts and without a formal process. |
| The problem is even more acute outside Tehran, and especially in the smaller cities of the south region where most oil companies operate. Not only English language skills are rare and knowledge of CV writing limited, but there is little availability of effective advertising channels for reaching candidates in such areas. |
| The Market for Talent |
| Despite the immense lack of transparency, there are some established norms as far as compensation and working conditions are concerned, particularly in the oil industry. Experience shows that employers who are unaware of such norms and offer substantially different packages face greater difficulty in attracting talent. For example, candidates employed by the leading oil companies in Khark island are typically offered a so-called '2+2' rotation - i.e. 2 weeks of continuous work followed by 2 weeks of paid holiday in their home city (usually Tehran). So an employer offering a '3+1' rotation instead without a substantially higher compensation than average will typically have to settle for less experienced candidates and could expect a higher staff turnover. |
| Aside from the compensation aspect, an often overlooked factor is the value candidates place on the quality of work experience and learning opportunities. Oil companies which have developed a reputation for being better at developing people into positions of responsibility are by far the most popular with candidates. |
| Successful Recruiting Strategies |
| Multinational oil companies who wish to optimize their recruiting in Iran can benefit from a number of strategies. For short-term projects in the south, there is little choice but to bring staff from Tehran at higher pay; attempts to find locals is most likely to be unsuccessful and delay the project. For long-term projects, if cost is an issue, the employer can consider hiring professionals who have the technical skills even if they are poor in English, and subsequently invest in training them in English. Above all, it is important to be responsive to local market norms and candidate preferences in order to maximize the return on recruiting efforts and minimize staff turnover. |
