Insights from ABN Resource’s Lubricants Talent Report 2024

Enter the Lubricants Talent Report 2024, which was conducted by global executive search firm ABN Resource to help both employers and employees do just that.  

About the Report

A global audience operating in the lubricants, additives and base oils segments were polled via an online survey.  The purpose of the report is to provide data to understand how the workforce is feeling about their role in the industry and to help companies and their personnel shape their workplace strategies and careers. Understanding the key trends illuminated by the report is important because companies cannot achieve many key goals without the right people in the right jobs performing at a high level of competence.  

We are proud to report that we received the largest volume of responses since the talent report was conceived three years ago.  

Job Satisfaction Is on the Rise

The survey revealed a significant increase in job satisfaction among lubricant professionals. The average satisfaction rating has increased to a commendable 3.7 out of 5, with a significant 63% of respondents feeling satisfied or very satisfied in their jobs. This is a major jump compared to last year’s survey, in which only 48% expressed satisfaction with their jobs, indicating significant strides in employee engagement and workplace culture.

The survey highlighted three key factors for why satisfaction ratings have improved:

• Competitive Compensation. More than half (51%) of respondents highlighted compensation as crucial in job satisfaction. It seems a good paycheck goes a long way in boosting happiness. With the average executive leader getting a very significant 18% pay increase, senior managers achieving 15%, middle managers 7% and solo contributors in technology and commercial roles achieving 9%, it looks like 2024 has delivered good salary increases across the sector. 
• Supportive Work Environment. Of the survey respondents, 46% value a positive workplace culture match.  
• Growth Opportunities. About 42% of respondents reported a desire for career advancement opportunities as a primary factor in workplace satisfaction. 

Hiring Is Hard

In addition to increased job satisfaction, the survey revealed only a little over 20% of respondents are actively seeking new jobs. This is an interesting finding, as it suggests a growing sense of stability among employees. While reasons vary from individual to individual, it would appear situations in the global economy and a focus on developing careers within the current organization are significant factors in people staying put. With so few actively seeking new work, employers must adapt new strategies to tap into passive candidate networks to get the right talent for their vacancies.

The active seeker trend does vary by age group, though. Employees between ages 35 and 44 are significantly more likely to be open to new opportunities, with 30% of them stating that they are actively exploring new job opportunities. This contrasts with the 55+ age group, which accounted for 42% of survey participants. Only 12% of 55+ year-olds reported they were actively seeking work.

Talent Retention and Attraction Difficulties

The Lubricants Talent Report 2024 unveiled some complex issues for the industry’s workforce. One notable and stark reality emerged, as the majority of the survey respondents indicated that they are under 10 years from retirement age. Of course, a younger workforce is in place and is growing every day. These younger employees are keen to grow and develop, but they aren’t getting many opportunities to do so. 

It is commendable that 79% of professionals reported access to some form of training, signaling a growing awareness of skill development by employers. Larger organizations (made up of 500+ employees) are leading the charge with structured training programs, recognizing the pivotal role of employee development. However, a concerning 18% of professionals, particularly in smaller companies (1-50 employees), lack formal training opportunities, hindering talent retention and skill acquisition. Geographical disparities further exacerbate the issue, with regions like Europe outpacing the Middle East in training provision.

Perhaps an answer to the retention dilemma is in the evolution of the lubricants sector.  As sector changes take place, new skill sets are going to be in demand. Customer focus, technical expertise and problem-solving abilities are emerging as the cornerstones of success. In fact, all three were voted as the most important for future job roles in the lubricants industry. Notably, the report reveals a strong correlation between formal training and the acquisition of these critical skills, emphasizing the importance of structured learning.

The ideal skill set for employees varies across roles and generations. Executives prioritize customer-centricity and adaptability, while technical roles demand expertise and problem-solving prowess. Similarly, younger professionals lean toward communication, collaboration and emerging technologies, while older professionals emphasize customer service and technical knowledge.

The data does suggest that companies need a more effective way of giving advancement to the emerging generations in the sector while also appeasing more mature personnel to retain the experience and knowledge accrued over decades of work. 

But the data shows there are blocks in place. People are desperate to develop and grow, but there is generally not enough opportunity for that development to occur. Personnel are retiring at later ages, and the problem is compounded by key duties not being relinquished by more senior staff. This poses a significant risk for the lubricants industry. The data illustrates a frustrated next generation who could decide to leave the industry in search of personal growth, taking the pipeline of successors and next generation talent away with them. 

As the lubricants sector reports a key challenge being growth, it also grapples with key issues around changing consumer demands, declining volumes and diversifying product offerings to capture new markets. Navigating these changes could be a solution to workforce retention, as new jobs, responsibilities and skills can be introduced into the sector to deliver the necessary change.

Navigating the Road Ahead

Growth and geopolitical tensions made the list of the top challenges for the lubricants sector in 2024. These were closely followed by workforce attraction and retention as a top concern, according to the survey respondents. But there are some proven strategies to navigate these challenges. These include the following:

Competitive Pay Equals Happy Workers. Salaries increased by an average of 11% in 2024, with 75% of professionals receiving a raise within the past twelve months. This correlation with job satisfaction highlights the importance of competitive compensation. 

Career Development and Work-Life Balance. While financial security is important, it is not the only factor when it comes to job satisfaction. Employers should prioritize career development and work-life balance to foster a truly happy and engaged workforce. According to employee feedback, 42% identified career development as important, and another 35% emphasized the significance of work-life balance in contributing to their job satisfaction.

Different Scale, Different Problems. While smaller companies often exhibit stronger talent management capabilities due to their agile nature and personalized work environments, larger organizations grapple with scaling these efforts more effectively. A pervasive lack of career development opportunities, when coupled with inadequate compensation packages, hinders the industry’s ability to compete for top talent with other sectors.

More Diversity, More Engagement. With the personnel challenges facing the sector, it was interesting to note that only 5% of respondents identified diversity, equity, and inclusion (DEI) as a top challenge. This indicates a misalignment between industry needs and employee perceptions. If companies made DEI a foundation of their business, it is likely that they would see significant benefits in performance, profitability, talent attraction and retention. 

Building a Better Workplace

This year’s survey also reveals some areas for improvement, including the following:

Gender Disparity. Job satisfaction is higher for men (64%) than women (51%). Companies need to address this by enhancing workplace culture and support systems for women and non-binary employees. This could involve implementing flexible work arrangements, unconscious bias training and more inclusive mentorship programs. 

Mid-Management Squeeze. Mid-management employees face unique pressures that need to be addressed through targeted support and development programs to improve job satisfaction. These professionals are often sandwiched between the demands of upper management and the needs of their teams. Providing them with the tools and resources they need to succeed, such as leadership training and coaching, can make a big difference.

Poor Culture Fit. Organizational culture and work environment is crucial for employee satisfaction and retention. In fact, 50% of the survey respondents declared that this is one of the primary reasons behind their willingness to change jobs. While smaller companies typically cultivate a strong sense of belonging, they may lack formal cultural frameworks. Meanwhile, larger organizations, despite resources, face the challenge of maintaining a consistent culture across diverse teams. Both face the risk of cultural misalignment, highlighting the need for intentional culture-building strategies that adapt to company size and structure.

For those looking to delve deeper into the survey’s data and insights, the full Lubricants Talent Report 2024 by ABN Resource is available for download at https://abnresource.com/talentreport/