As I partner and collaborate with my energy industry clients, I am continually amazed by their determination and resilience in navigating an ever-changing industry, all while ensuring our communities stay energized. It’s no secret that workforce management stands as a significant challenge, particularly in an industry undergoing such profound transformations. The conversation often turns to talent shortages, regulatory concerns, and the increasing sophistication of technology, all of which are shaping the future of work in this sector.
Considering this, we explore the top six trends for this sector in the Energy and Utilities 2025 World of Work Outlook. Drawing from our latest research that includes responses from more than 40,000 employers across 42 countries, along with separate independent studies, the report takes a deep dive into how these key trends are shaping the future of work. It also illuminates various opportunities for employers to make their mark, even as they navigate the ongoing challenge of talent scarcity.
1. Energy Sector Talent Shortages
One of the most pressing challenges highlighted by our clients is the acute talent shortage, especially in specialized fields like renewable energy, data analytics, cybersecurity, and engineering. The competition for talent is fierce, not just within the energy sector but across various industry verticals, making this a candidate-driven market.
A significant contributing factor to this scarcity is the lag in the educational system's adaptation to the sector’s evolving needs. Many programs still focus predominantly on fossil fuels and traditional energy sources, leaving a gap in the workforce’s readiness for the demands of renewable energy and advanced technologies. Additionally, we’ve observed a growing trend of cross-sector talent movement, which, while providing opportunities for cross-industry learning, also adds complexity to attracting and retaining top talent.
To address these challenges, energy companies must refine their employer branding and enhance their employee value propositions, particularly to attract younger, more discerning candidates who prioritize sustainability and innovation in their career choices.
2. A Human-Powered Future Through Upskilling & Reskilling
In response to the talent shortages, our discussions have increasingly centered around the importance of upskilling and reskilling. Companies are recognizing that they cannot rely solely on the existing talent pool nor education to meet their needs. Instead, there is a growing emphasis on building the talent they require from within, through comprehensive upskilling and reskilling initiatives.
This holistic approach to talent management involves partnerships with educational institutions and a diversified strategy that goes beyond traditional hiring. By expanding their talent strategies and focusing on long-term development, companies can better prepare their workforce to meet the evolving demands of the industry.
3. Charting Regulatory Currents
Compliance concerns are another significant challenge for our clients. The energy sector is heavily impacted by regulatory shifts, and the uncertainty surrounding these changes adds pressure to already complex operations. There is a clear need for support in navigating these challenges, particularly in workforce management.
At ManpowerGroup, we see an opportunity to assist our clients by offering solutions that help them manage regulatory compliance more effectively. Our workforce management platforms and services are designed to provide the support needed to navigate these regulatory complexities, ensuring that companies can focus on their core business activities while staying compliant.
4. Amping Up Talent with Tech
As the energy and utilities sectors continue to evolve, the role of technology in talent management has become increasingly prominent. Our clients are more open than ever to adopting technological solutions, including AI, to enhance their talent acquisition and management processes.
AI offers the potential to revolutionize talent management, making it a critical discussion point for the future of work in the energy sector. By leveraging AI and other technological tools, companies can more effectively manage their workforce, streamline operations, and stay competitive in a rapidly changing market.
5. Renewed Energy on a Sustainable Future
It likely doesn’t come as a shock that Sustainability and Environmental, Social, and Governance (ESG) commitments are becoming central to the energy and utilities sector’s strategic goals. There is increasing pressure from stakeholders, investors, consumers, and governments to not only claim sustainability but to actively demonstrate it. This pressure comes alongside the need to show short-term profitability, creating a challenging balancing act.
Candidates, particularly from younger generations, are also highly selective about their employers, favoring companies that align with their values on sustainability and impact. Employer awareness of this is growing. Today, 94% of energy and utility employers say they do not have the talent they need to meet their ESG goals. This shift is affecting recruitment and requiring companies to improve their employer value proposition to attract top talent.
Powering A Brighter Future
When I talk with industry leaders, it's clear they are fully aware of the challenges ahead. They are navigating a complex landscape marked by geopolitical risks, economic uncertainty, regulatory hurdles, fierce competition, and a shortage of skilled talent.
They understand that there's no one-size-fits-all solution. Moving from short-term fixes to a comprehensive strategic workforce plan that covers both contingent and full-time employees across various regions is no small feat. The future is brightest for those who can rise to this challenge effectively.
Download the Energy and Utilities 2025 World of Work Outlook and power the path ahead for your organization.
Author: Louise Ramstedt, Global Vice President and General Manager of ManpowerGroup’s Industrial practice