The third annual Global Energy Talent Index (GETI), the world’s largest energy recruitment and employment trends report, was published in January, offering insights into five industry subsectors – oil and gas, renewables, power, nuclear and petrochemicals.

The report, compiled by Airswift and Energy Jobline, surveyed more than 17 000 energy professionals and hiring managers in 162 countries.

In terms of the power sector, the GETI shows that companies face a difficult task balancing the need to address current talent shortages with adapting to the changing skills needs resulting from digitalisation.

The report indicates that 48% of power professionals are concerned about an impending talent crisis, with 32% believing the crisis to have already hit the sector and 38% reporting that their companies had been affected by skills shortages.

The problem is most acute in engineering, with 62% of respondents engineering as the discipline most affected by talent shortages, with project leadership a distant second at 22%.

When it comes to specific skills gaps, problem solving, leadership and process management dominate.

“The need for more engineers points to an industry concerned with meeting its immediate needs, but the skills respondents identified are exactly those you need to successfully manage change – something firms will be doing a lot of as they adapt to automation. It looks as though the power sector has one eye on the present and one firmly on its digital future,” Airswift CEO Janette Marx said in a statement.

Key findings within power include remuneration being on the up. Fifty-seven per cent of nonhiring professionals reported an increase in pay over the past 12 months, with 29% citing an increase of more than 5%.

Moreover, 74% cent of nonhiring professionals anticipate further pay rises this year – with 44% expecting remuneration to rise by more than 5%.

Ninety per cent of professionals would consider relocating to another region for their job, with career progression opportunities the number one factor in attracting talent to a region.

Renewables were to be the biggest source of competition for talent, with 47% of those open to switching sectors attracted to the industry.

“Competition between sectors remains as fierce as ever, but power businesses are set up very well for success. The sector has done a fantastic job of offering stability, security and steadily increasing remuneration. Furthermore, hiring managers understand what those skills shortages are and know where to go to alleviate them,” Energy Jobline MD Hannah Peet reported.

“The next step is to take action. Graduate training schemes and increased use of apprenticeships will help, but the power sector needs to do a better job of marketing itself to young, digitally inclined talent. Otherwise, transformation, like the smart grid, can’t fulfil its full potential.”

In terms of renewables, the GETI shows that businesses’ strategic approach to talent investment is paying dividends.

The report indicates that renewables remains the most popular destination for talent in other energy sectors who are looking for a change.

Moreover, there is little regret among those taking the plunge. When asked whether they would pursue a career in the sector if they were entering the energy industry now, 78% of renewables professionals said they would, with 85% of those aged 25 and younger expressing their enthusiasm.

However, renewables companies cannot afford to become complacent. Forty-six per cent of sector professionals are worried about an impending talent emergency in the sector.

Thirty per cent believe the crisis has already hit and a further 29% expect it to hit within the next five years. This concern escalates among the young, with 54% of those aged under 25 expressing concern, compared with just 40% of those aged 55 or over.

“In many ways, the [renewables] sector has led the way in embracing digitalisation to cultivate a happy workforce and attract talent from other sectors. Yet younger professionals remain very worried about the future. They entered this sector because they wanted to see change and are nervous that they’re not seeing it fast enough,” said Marx.

Key findings within renewables include that remuneration is on the rise. Fifty-one per cent of nonhiring professionals report an increase in pay over the past 12 months, with 26% citing a raise of more than 5%.

Sixty-seven per cent of nonhiring professionals anticipate further pay rises this year – 10% more than hiring managers, 58% of whom expect to see an increase.

Eighty-eight per cent of professionals would consider relocating to another region for their job, with career progression opportunities the number one factor attracting talent to a region.

Power is found to provide the biggest source of competition for talent, with 48% of those open to switching sectors attracted to the industry.

“Competition between sectors remains as fierce as ever, and renewables companies need to be careful that their successes don’t breed complacency,” said Peet.

“However, hiring managers expect to start paying out a lot more raises next year, perhaps because they see the retention challenge the sector faces. Hopefully, that foresight will be a saving grace because there are a lot of positives for them to build on.”

In terms of nuclear, the GETI formed that companies needed to be creative and resourceful to survive in a difficult talent environment.

The report indicates that 47% of nuclear professionals are worried about an impending talent crisis, with 37% believing the crisis to have already hit the sector and a further 32% expecting a crunch point within the next five years.

The sector has been tackling the issue by delaying the retirement of older professionals; however, it is noted that this approach is not sustainable.

This is evidenced by 28% of those aged over 55 saying they would not pursue a career in the sector if they were entering the energy industry now.

Hiring managers are realising the need to recruit from a broader pool of candidates. “Digitalisation is helping, as is companies’ increasing willingness to recruit those without previous nuclear experience,” Marx said.

In addition to providing insights into the skills gap, the GETI is also the industry’s most comprehensive salary and mobility survey.

Other key findings within the nuclear sector include remuneration being on the rise, with 51% of nonhiring professionals reporting an increase in pay over the past 12 months and 18% citing a raise of more than 5%.

Another finding is that 64% of nonhiring professionals anticipate further pay rises this year – with 23% expecting remuneration to rise by more than 5%.