EPC (Engineering, procurement and construction) projects globally are growing continually larger and more complicated in size. The success of each project (oil & gas facilities; power generating plants; industrial plants; refineries; infrastructure projects; manufacturing plants, etc.) is dependent upon the availability of the right people, at the right place and right time.
Presently, an enormous issue facing many EPC Companies throughout the world is finding sufficient numbers of qualified individuals to fill skilled positions on EPC Projects.
If there is a lack of welders, pipefitters, electricians, fabricators, heavy equipment operators, riggers and mechanical technicians, there is likely going to be delays associated with those projects and probably cause for increased costs. Talent is an increasingly common issue in many geographic areas that cannot provide sufficient numbers of skilled tradesmen to meet the fast-growing demands.
For project owners and EPC Contractors, workforce shortages have transitioned from being an HR Issue into a significant business risk that may have a direct impact on project delivery timelines, margin/profitability of the project, and quality or satisfaction of the customer.
Therefore, many of the leading EPC Companies are turning toward international workforce solutions and external (overseas) recruitment agencies/partners for the stabilisation of skilled labour on their mega projects.
Why Skilled Manpower Shortages Occur
There are many reasons for the continuing shortage of skilled manpower on EPC Projects around the world.
Growing Infrastructure and Industrial Project Demand
Governments and private investors are investing in large projects in areas such as energy, transportation, manufacturing, and construction.
As there is more project activity, the demand for skilled labour increases faster than the number of skilled people available to fulfil that demand.
Lack of Skilled Trades in Local Labour Markets
Many countries are not producing a sufficient number of trained technical workers. Even though there is a continued increase in the demand for skilled trades, the number of qualified professionals entering the workforce continues to be limited.
Workforce Migration
Skilled workers often leave one country for another so as to earn more money and have access to better opportunities. Consequently, there are considerable labour shortages in many areas of the world, and thus it becomes more challenging to hire local workers.
Ageing of Workforce
The industrial workforce is ageing rapidly. According to recent global labour studies, nearly 35% to 40% of experienced craft professionals are expected to retire within the next decade. Replacing these veteran workers is incredibly difficult because their decades of technical, hands-on experience cannot be replicated overnight by local training programs.
Multiple Projects Competing for Candidates
When multiple mega projects begin their project activities at the same time, they will all compete with each other for the same skilled workers. It has resulted in significant challenges to recruit individuals, increase wage inflation, and create further shortages of skilled trades across multiple industry sectors.
Impact on Project Timelines & Costs
A continuous shortage of skilled labour can lead to significant impacts.
Delay in Projects
Having inadequately qualified staff can cause major delays in construction schedules. Each delay between different parts of a process will have an effect on the overall timeline of the project.
Increased Costs of Labour
With a limited supply of skilled labour available, competing companies will offer significantly higher wages in order to attract those limited skilled workers. As a result, companies may need to pay additional money in order to attract talent and hire employees.
Decreased Productivity
Projects are able to produce their highest levels of production when staffed with fully qualified individuals for every job. When companies do not have sufficient workers on the site, the additional workload on the existing employees will ultimately reduce their productivity.
Risk to Quality and Safety
If companies hire unqualified employees to fill immediate staffing needs, then it is likely that the quality and safety of their work will suffer.
Contractual Risks
Not meeting contractual deadlines can result in penalties that can damage a company’s reputation and create problems in the relationship with clients.
For EPC companies, workforce optimisation is about more than just putting boots on the ground—it is about ensuring predictable project execution
Role of Overseas Recruitment Agencies
The foreign labour recruitment process can be immensely valuable with the assistance of an experienced international recruitment company.
For EPC companies, experienced recruitment companies help access skilled workers around the globe; as a result, an EPC company can punch the clock for local workers at the ready.
Larger Pools of Talent
While maintaining large databases of qualified candidates across multiple trades and industries, international recruitment firms create a new opportunity for employers to source potential employees not locally available.
Fast Hiring Processes
Experienced international recruitment companies already possess the candidate sourcing networks, candidate validation methods, candidate pipelines, and the ability to make a hire quickly. Thus, speed is essential to keep your projects on schedule.
Candidate Screening & Validation
Reputable recruitment firms will:
- Evaluate skills
- Perform trade testing
- Conduct background checks
- Verify prior work experiences
Completing these processes and procedures affords recruitment companies the ability to vet candidates for employment properly.
Workforce Mobility Help
Recruitment companies are responsible for helping workers through the complex process of obtaining work visas, obtaining travel arrangements, obtaining work permits, and arranging deployment to their new location; this adds ease of administration for EPC companies.
Compliance & Risk Management
Employing foreign nationals can create a burden of regulatory compliance associated with both labour and immigration laws. Thus, through experienced international recruitment firms, employers can avoid costly compliance breaches and hiring delays when managing a workforce.
How Dynamic Staffing Services Supports EPC Companies
Dynamic Staffing Services understands the workforce challenges encountered by EPC companies due to our support of worldwide projects within construction, oil and gas, power, manufacturing, infrastructure, and industrial sectors.
We serve not only as recruiters but also as workforce partners with clients, helping them effectively source, mobilise, and manage their qualified workforces.
Talent Sourcing
Our recruitment teams work from a variety of established talent pools, in multiple occupations and trades, for sourcing qualified candidates.
We identify those workers who meet the project-specific requirements and expectations of our clients.
Trade Testing
With technical skill being of the utmost importance to EPC projects, we conduct structured trade testing and skill assessments to confirm that the practical capabilities of workers are validated before presenting them for deployment.
This process is used to minimise the risk associated with hiring and provide clients with quality workforces.
Screening and Verification
All candidates go through a thorough screening process, including:
- Experience verification
- Reference checks
- Document validation
- Skill assessments
These processes help to ensure that our clients receive qualified and reliable workers.
Documentation Support
Managing the documentation for the international recruitment of skilled workers can be extremely time-consuming.
Dynamic Staffing Services assists clients with:
- Employment documentation
- Visa processing
- Work permits
- Regulatory documentation
The completion of these processes can expedite the deployment of the workforce.
Deployment Planning
Workforce mobilisation requires advanced planning and coordination.
We handle all the difficult travel logistics. Our team creates phased deployment schedules that match your exact engineering timelines. This ensures that your new workers arrive on-site precisely when the project infrastructure is ready for them
Compliance Support
Compliance is critical to international recruiting.
Dynamic Staffing Services assists employers in identifying all the operational and legal compliance aspects of international recruitment while ensuring transparency and operational efficiency.
Bulk Hiring Capabilities
Many mega projects require hundreds of workers from many different trades.
Our experience in bulk hiring enables us to provide rapid recruitment while continuing to maintain quality standards.
Using this experience allows EPC companies the opportunity to respond appropriately to changing project demands.
Case Study
A major EPC contractor was awarded a high-stakes refinery expansion contract in the Gulf Cooperation Council (GCC) region. The project required 250 specialised workers, including certified pressure vessel welders, pipefitters, and heavy equipment operators, within a strict 60-day window.
Because the local labour market was completely exhausted by other large projects, the contractor partnered with Dynamic Staffing Services to build a rapid international talent pipeline.
Dynamic Staffing Services performed sourcing, trade testing, screening, documentation and mobilisation of the entire workforce in an organised and consistent manner.
Workers were deployed in phases along the project milestones.
This resulted in:
- No shortage in the workforce
- Construction progressed on schedule
- Work productivity increased
- All compliance requirements were met
- Client delivery dates were achieved
Proper planning for the appropriate workforce and proper support from an international recruitment company can help mitigate project risks and improve the project's outcome.
FAQs
What causes EPC firms to have a shortage of workers?
EPC firms are facing worker shortages due to a combination of skill gaps in labour, an ageing workforce, increased demand for projects, migration of labour from abroad and many companies competing for the same skilled workers.
How can overseas recruitment improve EPC projects?
Overseas recruitment allows companies to access larger talent pools, quicker hiring and access to skilled workers who may not be available in their local market.
What types of jobs are typically filled for EPC projects?
Typical positions for EPC contractors include welder, pipe fitter, electrician, mechanical technician, rigger, scaffolder, fabricator, and heavy equipment operator.
How does DSS assist with the bulk hiring of manpower?
DSS provides contract manpower services by assisting with sourcing, screening, trade testing, documentation, mobilisation, and deployment of large workforce requirements.
What does compliance mean with respect to EPC hiring?
Compliance helps ensure that companies will avoid legal issues, delays on projects and fines by ensuring that all regulations are followed and therefore provide an easier transition to the workforce deployment.
When should EPC firms begin to plan for manpower hiring?
Normally, it is best to begin planning for workforce hiring several months in advance of project mobilisation in order to allow adequate time for sourcing and screening candidates, documentation of placement, and the actual deployment of hired candidates.
One of the largest hurdles that EPC organisations are facing in terms of delivering their projects is a lack of skilled workers. And since project requirements are only increasing, simply relying on the local labour force to deliver projects is likely no longer practical.
By having a proactive workforce approach that involves international recruitment, manpower planning and reliable deployment support, EPC organisations can minimise delays, manage costs, and ensure project execution.
Dynamic Staffing Services has a unique combination of experience in the industry, an established global talent network and a consistent recruitment process to assist EPC companies in attaining the necessary skilled workforce to deliver a successful project.
How will you strengthen your project workforce?
Dynamic Staffing Services supports EPC organisations in connecting with the right workforce to fulfil project requirements, whether that be a couple of highly-skilled workers or thousands of highly-skilled workers for a mega project. Contact us at clientservices@dss-hr.com. Engage with Dynamic Staffing Services today to develop a reliable workforce to continue delivering your projects.
