What are the key workforce trends shaping the energy sector? Part 1
WHAT DEFINES A GOOD LEADER? LOOK FOR THESE SIX QUALITIES
Modern business challenges can require new approaches. Leadership will need to evolve in order to continue to guide organisations in tomorrow's world of work. But what are the characteristics of a good modern leader in the workplace - and how can organisations develop them?
Many studies draw parallels between effective leadership and solid organisational performance. But whether they’re a junior manager or a senior executive, the qualities that leaders need are changing.
Nearly 1,500 HR professionals ranked leadership development as the number one priority for 2025, with managers feeling 'overwhelemed' by the expansion of their responsibilities. In today’s unpredictable world, you must combine traditional leadership skills with new abilities. So, what does an effective modern leader look like?
1. Remember what makes a good leader
Before looking at the new skills future leaders may need, it is worth reflecting on what a leader actually is.
What are the qualities of a good leader? It’s not what you may think.
Being in charge of colleagues does not necessarily make you a ‘leader’. Former Facebook COO Sheryl Sandberg explains: “Leadership is about making others better as a result of your presence and making sure that impact lasts in your absence.”
Retired astronaut Chris Hadfield believes that good leadership is: “Not about glorious crowning acts. It’s about keeping your team focused on a goal and motivated to do their best to achieve it. Especially when the stakes are high and the consequences really matter.”
There may be varying opinions on the strengths and weaknesses of leaders. But overall, most people believe that great leaders motivate their team members to perform their best and achieve common goals.
What traits do you need to achieve this in the modern workplace?
2. Use blended leadership styles for a VUCA world
Stacey Philpot from Deloitte Consulting maintains that the core skills needed historically in leadership roles have remained unchanged.
“These skills allow someone to become a leader faster than their peers. This is even true in today’s volatile, uncertain, complex and ambiguous (VUCA) environment,” she says.
The core skills for leading in a VUCA environment include:
- Pattern recognition
- Motivation
- Agility
- Emotional intelligence
- Ability to understand, control and express emotions
This represents psychological assessments of 23,000 senior leaders globally over the past 25 years.
Consider introducing servant leadership:
Leaders need new styles of leadership to deal with changing cultures. Being comfortable with not having the answer and owning failure can create an environment of trust and openness.
Collectively, these behaviours form ‘servant leadership’. The Chartered Management Institute (CMI) defines servant leadership as emphasising behaviours and values such as:
- Active listening
- Empathy
- Leading by example
These are instead of opting for a more authoritative, ‘command-and-control’ leadership style. Leaders create the conditions for team members to excel by displaying vulnerability. But given the stigma around servant leadership, how can organisations encourage it?
How to combat stigma surrounding servant leadership:
Alsu Polyakova, HR Leader for GE Healthcare, says reducing stigma around servant leadership will take a specific strategy. Most importantly frequent performance appraisals for leaders.
“We give leaders lots of opportunities for self-reflection, so they understand how they behave,” she says. GE Healthcare’s most successful leaders help to encourage behavioural change, Polyakova says. The company measures success by how well employees rate leaders on achieving GE Healthcare’s ‘cultural pillars’. These pillars include inspiring trust and empowering employees.
3. Create a culture of trust in the workplace
Gaining workers’ trust is more important than ever. One way to build trust is for leaders to take action on issues such as climate change. 71 percent of employees consider their CEOs’ social awareness as critically important, according to the Edelman Trust Barometer.
Social awareness may yield rich rewards. The Edelman poll shows that workers who trust their employers are far more engaged and remain more loyal than their more sceptical peers.
Leadership styles are clearly changing. The most effective leaders will need to tailor their styles to suit different scenarios, says Professor Sattar Bawany. “Leaders need a broad repertoire of management styles and the wisdom to know when each style should be used,” he says. “In crisis scenarios like cybersecurity breaches, for example, leadership should be authoritarian because the scenario is unstructured.”
4. Adapt your leadership style for different generations
Managers must also balance leadership styles to suit different generations. Modern workplaces will soon house up to five generations under one roof. Therefore, there will be many people with differing preferences on leadership style.
As of 2023, millennials are the biggest group in the UK workforce, at 35 percent. Modern leaders must mix old and new leadership styles that meet the needs of younger generations. Doing so will future proof organisations. However, new leadership approaches cannot come at the expense of alienating older workers.
5. Commit to lifelong learning
With the workplace evolving so rapidly, leaders cannot rely on past experience alone to get by. Ben Farmer, Head of HR at Amazon UK agrees: “Experience is not always synonymous with wisdom and judgement. And naivety doesn’t always engender novel thinking and openness to change.”
Organisations should look for leaders who understand the future as well as those with experience. “Success comes from the ability to combine understanding of exciting, new trends with the experience required to put that knowledge into action,” says Farmer.
But what is the right balance? There is no one-size-fits-all approach when balancing experience with adaptability. Achieving the right balance will mostly depend on the organisation and the sector it operates in.
6. Be conscious of culture
Organisational culture is an important factor. Risk-averse firms may prefer experience over novel thinking. Leaders may be fearful of a backlash from stakeholders should novel thinking fail. To lower risk, companies should seek leaders who use both scientific evidence and intuition when making decisions.
Ultimately, there’s no single blueprint for an effective modern leader. Each organisation must tailor their approach to leadership development. There must be a focus on organisational culture, industry nuances and employee mix.
But above all, leaders should recognise that today’s reality may be old news tomorrow.
For more expert advice, take a look at the following articles:
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WHAT ARE THE KEY WORKFORCE TRENDS SHAPING THE ENERGY SECTOR? PART 1
Our energy system is going through massive changes as the UK aims to achieve net zero by 2050. Similarly, the European Union has set a target to reduce greenhouse gas emissions by at least 55% by 2030, with renewable energy sources already accounting for 25% of the EU's energy mix in 2022. In the United States, the share of renewables in electricity generation is projected to reach nearly 50% by 2030.
A key part of making this transition a success is building a skilled workforce that can support these changes.
But as the industry changes, so too do hiring requirements. Due to new digital technologies, clean energy and changing regulations, many energy companies are struggling to fill growing talent gaps. To secure their current and future talent pipelines, organisations must understand these trends. Importantly, businesses must also start to factor these insights into hiring practices.
This is the first in a blog series on the future workforce of the energy sector. In this blog, we’ll see three key trends shaping the future of the energy sector. Then, in part two, we’ll offer actionable tips on how to address your energy sector talent gap.
How is the energy sector changing?
The world is moving away from traditional energy sources and towards a greener future. However, the energy industry — and the world as a whole — is currently in a state of transition between the two. Our reliance on natural gas and fossil fuels has not yet gone away. But the use of renewable energy is growing each year. Providers must serve both markets while meeting sustainability initiatives and incorporating new technologies.
As such, energy companies continue to hire for a wide range of energy technologies and roles. Among the many energy trends currently shaping the world, we see three key shifts. These primary trends are having the most impact on incoming talent. And without understanding these key trends, companies may find their talent supply chain lags behind the competition.
3 trends shaping the energy sector
1. Digitalisation
Digital technology is transforming how the energy industry operates. From improving home energy efficiency to the rise of automation in power generation, digital technologies are unavoidable. We’re currently witnessing how the integration of advanced digital tools could change our nation’s energy supply.
If implemented well, these technologies bring massive benefits. Internet of Things (IoT) devices help businesses to monitor their systems in real-time. These tools gather valuable data and optimise the way energy is produced and distributed. Other technologies also release staff from mundane tasks to concentrate on more pressing issues.
As in other industries, artificial intelligence (AI) and machine learning are proving valuable too. By using predictive analytics, companies can plan for power grid energy consumption and proactive maintenance. Combined, digitalisation will continue to help both suppliers and customers use energy more effectively. Including these skills in your hiring business model will mean you keep pace with future digitalisation.
2. The rise of renewable energy
As the energy sector moves towards greener sources, we’re seeing an increase in hiring for renewable energy skills. With this shift comes the need for a workforce capable of building, maintaining and improving these distributed energy resources.
While we still rely on traditional energy sources, we’re also seeing the green transition happen in real-time. In October 2024, we saw Britain’s last coal-fired power plant shut down. Elsewhere in Europe, Germany plans to phase out coal by 2038, with renewable energy sources already providing over 40% of its electricity. In the United States, renewable energy accounted for about 21% of electricity generation in 2022, with significant growth expected in the coming years.
Renewable energy sources are stepping up to meet any gaps in energy demand. Key future technologies like solar panels, wind turbines and battery storage systems are now contributing to our nation’s energy supply, with that number only set to grow.
However, creating this clean energy requires new skills, from design to installation and ongoing maintenance. This brings both hiring opportunities and challenges for all energy companies.
3. Energy transition policy
While energy production methods change, so too do policy, regulation and reporting requirements. Initiatives aimed at reducing carbon emissions and fighting climate change are forcing companies to rethink how they generate and use energy.
For example, the UK has set ambitious targets to increase its renewable energy capacity. These goals include significant expansions in offshore wind energy and solar power by 2030. Renewable energy projects like these come with increased reporting requirements around greenhouse gas emissions, ESG and other incentives.
And for energy companies, these policy changes are not just targets. We’re now seeing real-world demand for skills in areas like environmental compliance, sustainable energy planning and development. Future-thinking companies will need to build teams that can help them manage these technical and legal requirements. Energy jobs are changing to match long-term goals over short-term needs.
Managing the skills shortage for the energy industry
What conclusion can we draw from these trends? Primarily, that the energy sector faces a growing gap between the skills it needs and those available. With the push toward cleaner energy, many businesses are finding it challenging to recruit and train workers. Energy companies are seeking employees with the necessary expertise for the future of energy production.
Addressing this gap means rethinking talent development. Training programmes that upskill current employees will be essential. Similarly, there will be a change in initiatives that bring new workers into the sector. The end result will be building a talent pipeline that meets the needs of both the current and future energy industries.
In part two of this series, we’ll explore strategies you can use to bridge your energy sector skills gap.