Utility Week

20 | 6TH - 12TH APRIL 2018 | UTILITY WEEK Policy & Regulation Market view I t has been a good few years for profes- sionals in the power sector. Employees and contractors are generally happier than they were three years ago, better paid than a year ago and optimistic about the future, both in terms of pay and the effect of digitalisation and automation in the sector. Yet at the same time, many have itchy feet. With an eye on moving sector or coun- try, many senior managers are worried about the ageing workforce and skills gap and few are confident the industry is effectively attracting new talent. So, what are utilities to make of it all? Let's start with the positives. Forty per cent of UK power professionals are happier than they were three years ago: not a major- ity, but higher than the 32 per cent who are less happy. The needle is moving in the right direction. When asked why, 51 per cent are reap- ing the benefits of digitalisation and flexible working, 37 per cent cited general working environment and 37 per cent remuneration and benefits. This is not surprising, because more than half of professionals reported a pay rise in the past year, with only 4 per cent reporting a decrease. This carries over into optimism about next year, with 13 per cent expecting a pay rise of more than 5 per cent this year, 44 per cent expecting a smaller one and just 4 per cent expecting a fall of any kind. Curiously, hiring managers are out of touch with this optimism – 58 per cent believed professionals were less happy. How- ever, both professionals (72 per cent) and hir- ers (75 per cent) agreed the growing trends of automation and digitalisation are positive ones in the sector. But problems rumble beneath the surface. It is not all rosy. Though the major- ity professionals are positively disposed to automation and digitalisation, a significant minority of both professionals and hirers fret about a reduction of human judgement or knocks to job security (which also featured highly among reasons for reduced happiness among professionals). However, when asked about the biggest challenges of the next few years, it was a more familiar set of concerns that floated to the surface. Fiy-two per cent of professionals pointed to the ageing workforce as one of the biggest challenges for the sector, 51 per cent the skills gap and 43 per cent retaining exist- ing talent. Hirers worried about the skills gap (60 per cent), ageing workforce (57 per cent) and pay stagnation (41 per cent). The overall picture, then, is one of a sector con- cerned about an exodus of talent and how to replace it. This is corroborated by some puzzling data from power professionals. Despite their apparent happiness, financial success and optimism, a lot of UK power sector profes- sionals have itchy feet. Sixty-five per cent are keen on a regional transfer, with Europe the most popular destination (55 per cent), fol- lowed by North America (23 per cent) and Australia (13 per cent). What is more, 69 per cent of profession- als would consider switching sector entirely within the next three years, with renewables (27 per cent) and oil and gas (17 per cent) the top beneficiaries. The main motivations for switching were interest in the sector and pay. This would not necessarily be cause for alarm if the situation was all in hand. How- ever, the sector is not confident that is the case. Only 29 per cent of professionals think the sector does a good job marketing itself to potential candidates, and only a third of hir- ers agree. Forty-four per cent of both groups think it does a bad job. Better training and development, pay and culture were flagged as the most necessary changes – difficult when pay is already high and culture is a nebulous concept. What's a utility to do? It must be exasperating for utilities. Profes- sionals are happy and well rewarded, so util- ities are seemingly doing everything right, yet still they face these risks. That is under- standable, but there are a few pointers in the data for the eagle-eyed. First, those professionals considering moving region. It can be hard for utilities, which are typically tied to a specific grid or region, to facilitate this. Not always, though, and being creative about how to offer inter- national opportunities could help attract and retain staff. Similarly, those interested in other sec- tors could perhaps be assigned to work on projects that align with those interests. For example, the renewables sector was the most popular destination, but the trend towards distributed energy means more and more power companies at all levels are coming into contact with renewable projects. Utilities should also think about the types of skills they will need to attract in coming years. Asked which skills would be more in demand as a result of digitalisation and automation, 55 per cent of professionals sug- gested cyber-security, 44 per cent data pro- tection and compliance and 42 per cent data analytics. Broadening recruitment horizons could help plug the gap. However, it must be said there are posi- tive signs. Eighty-six per cent of hirers said they were implementing improved training and development programmes – exactly what professionals highlighted as a neces- sary change. However, that can only upskill existing talent, not attract new profession- als. Perhaps more utilities should follow the example of the 29 per cent which are partner- ing with colleges and universities, and the 25 per cent building out graduate schemes and apprenticeships. Keeping everyone happy will never be fea- sible, so the power sector should be pleased with its success in creating a happy, well- remunerated workforce even as digitalisa- tion and automation change the landscape. The sector's workforce challenges are signifi- cant, but far from insurmountable. There are exciting times ahead for the UK power sector and every reason to be optimistic. John Currie, recruitment manager, Airswi The Global Energy Talent Index (GETI) 2018, from Airswi and Energy Jobline, surveyed more than 20,000 energy professionals and hiring managers in 163 countries across the energy sector. Energy recruitment woes An extensive survey found that UK power professionals are happy and well paid, but many still want to leave the sector. John Currie analyses the data and its meaning for energy employers.

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