A talent strategy to power the Energy and Utility sector: Workforce challenges and solutions
BLOG
A TALENT STRATEGY TO POWER THE ENERGY AND UTILITY SECTOR: WORKFORCE CHALLENGES AND SOLUTIONS
The energy and utility sector is set to undergo 'major transformation' within the next decade.
Ongoing geopolitical tensions across Europe and the Middle East have exacerbated inflation and elevated energy costs, encouraging a large-scale diversification of energy sources and greater investment in renewable energy.
Pushed by government policies and incentivised by large-scale investments, organisations in the energy and utility sector are expected to accelerate carbon reduction goals and embrace digital solutions.
But the sector is at risk of a talent outage. The sudden shift in requirements and surge in the volume of ‘green’ skills needed means that the industry is at risk of unprecedented talent shortages.
To help you address these challenges, we’ve teamed up with market-leading research firm, the Everest Group, to shape a six-step strategy to help you future-proof your organisation amid a rapidly changing landscape. In this blog, we offer a snapshot of the white paper.
Download your free copy and dive deeper into our insights.
How is talent transforming?
The rising importance of clean energy is reshaping the skills needed by organisations. The urgency attached to the widespread adoption of sustainable energy sources means a shift to green skills is occurring at an incredible pace, with demand currently outweighing the supply of available labour.
And more ‘traditional’ roles are also under review. As providers of oil and gas seek to ‘clean up’ both their operations and their image, we’re seeing a surging interest in candidates with expertise in unconventional oil extraction, for example.
Some of the key skills in demand include:
- Renewable energy specialists to design, install and maintain energy systems.
- Data analysts to optimise energy production, distribution and consumption.
- Reservoir engineers to optimise extraction techniques and maximise recovery rates of raw materials.
- Electric vehicle (EV) infrastructure planners to design and implement the infrastructure needed to support EV charging stations, including urban charging networks.
What are the key challenges faced by companies in the energy and utility sector?
Talent networks are losing power: The sector is facing a retirement crunch, with estimates stating that between one-fifth and a quarter of the current workforce is set to retire within the next decade. At the other end of the pipeline, the sector is struggling to attract fresh talent, with unclear opportunities for growth and demanding working conditions putting people off.
The sudden shift is creating skills gaps: The rapid move towards sustainable technologies such as Carbon Capture and Storage (CCS) and offshore wind farms means that the volume of qualified talent is falling far short of demand. Investment in upskilling and reskilling the workforce has been both limited and yet to reach fruition, creating skills gaps in R&D, regulatory expertise and sustainability management.
Diversity and data are both in short supply: Diversity and inclusion remain key challenges across the industry, with limited representation of women and minority groups. What’s more, a lack of comprehensive analytics and intelligence make it even more difficult to understand trends or locate the most pressing skills shortages.
What impact does this have on talent attraction?
As organisations in the energy and utility sector attempt to tackle these challenges head-on, we’re seeing a number of key strategies emerge.
There’s a growing interest (mirrored by greater financial investment), in training and development programmes to help bridge the skills gap. CCS technologies, petroleum engineering and environmental compliance are just a few of the focus areas seeing an uptick in programmes.
And with one eye on the future, we’re seeing more organisations partner with educational institutions. Preparing the next generation of workers with the skills and understanding tailored to industry needs cultivates a stronger talent pipeline, enabling these individuals to make a difference from day one.
Organisations are increasingly driven by their data, and this is reflected in the desire to measure and monitor all forms of input and output, including people.
The report reflects on the shift we’re witnessing in the energy and utility sector. Traditionally seen as a ‘slow adopter’ of technology solutions in relation to talent management, there’s huge growth in the deployment of Applicant Tracking Systems (ATS), Vendor Management Systems (VMS) and Candidate Relationship Management (CRM) tools to better identify, recruit and retain essential talent.
We’re also witnessing a greater number of organisations seeking support as they tackle the skills shortage. Workforce solutions providers offering Recruitment Process Outsourcing (RPO) and Managed Service Programmes (MSP) are an increasingly essential partner. Indeed, the size of the RPO market for the energy and utility industry nearly doubled between 2021 and 2022 – and continued to report steady growth in 2023.
The number of hires managed by outsourced providers will continue to climb as organisations seek to enhance their access to talent.
Discover the six steps to power your talent strategy forward
As G20 leaders aim for net zero emissions by 2050, the energy and utility sector is set to undergo major transformation.
Ensure your organisation stays ahead of the curve with a six-step approach to talent attraction and management. Download the latest report to access exclusive insights from the Everest Group.