A staggering number of green jobs will have to be created over the next few decades as countries work towards ambitious net zero targets and roll out swathes of new wind and solar power plants.

While this should be cause for celebration both for business and the planet, there is growing concern that many of these roles will go unfilled unless the renewables industry gets on top of what is becoming a serious skills shortage. Decades of underinvestment by government, uncertainty about the sector’s prospects and persistent employer branding issues have combined to make it harder to attract the right expertise and experience.

And with no certainty of resolving these issues quickly, the industry could struggle to capitalise on the growth opportunities ahead, not to mention meet the goal of limiting global warming to 1.5C by 2050.

‘Real-world experience’

McKinsey forecasts that global solar and wind power capacity will quadruple between 2021 and 2030 as nations reduce their reliance on fossil fuels. It says a “staggering” additional 1.1 million blue-collar workers will be needed to develop and build these plants, along with 1.7 million extra workers to operate and maintain them.

Green energy firms are already struggling to find the construction workers, electricians and operating engineers they need. They will need to find ways to cope as the demand intensifies.

According to a national survey by the US Interstate Renewable Energy Council (IREC), some 89% of American solar companies said they faced difficulties finding qualified applicants last year. Meanwhile in Germany there are 1.7 vacancies per unemployed energy technician, with the average time to fill a vacancy for this role now more than six months.

David Ingleson, a global client director at AMS says that “the net-zero transition has gained real momentum in recent years, and candidates with the specialist skills needed to establish the infrastructure needed in renewable energy projects (wind and solar in particular) are in great demand. Roles in planning, consenting, installing and constructing need to be filled and there is not enough talent to go around that has the pre-requisite experience. The same principle applies to when these installations are up and running, because there is a considerable skilled workforce required to operate and maintain them. Demand for talent in the renewable energy sector is on the cusp of exponential growth and the labour market is not ready for it."

Years of mixed messages from governments about the future role of renewables have not helped. It has made it harder for companies to plan and forecast, in turn impacting the confidence they can give to the market about jobs and careers.

It’s also resulted in the education sector failing to make full provision for the skills needed by this burgeoning workforce.

“There is a further challenge in that many of the professionals needed by the renewable energy sector are currently employed in the wider energy or oil and gas sectors where salary levels are relatively high,” says Jon Clipsham, a lecturer for the Renewable Energy Institute, an independent professional body and training provider. “It continues to be challenging to match the salary levels offered elsewhere, although this is improving with increased confidence and commitment to the renewables sector.”

National and regional authorities should then require universities and training providers to create courses to match that gap and stimulate close cooperation between education institutions and the solar industry

Transferable skills

There are steps companies can take to help themselves, not least targeting professionals in other industries with transferable skills.

One of the challenges facing renewables – or indeed mainstream oil and gas companies currently diversifying their portfolios – is to convince clients that experienced people from aligned sectors can make the leap to renewables, including those from aerospace, automotive and infrastructure.

Employers must also try harder to attract a more diverse pool of candidates, experts say. While some sectors such as solar have a good record on diversity, overall, only about 30% of workers in the renewable energy sector are women and only 11% are non-white.

Better employer branding can also help to cut through with today’s Millennial and Gen Z workers. Many of this cohort are looking to work for employers of purpose that embody their social values, making renewable energy a seemingly perfect fit.

Solar Power Europe, a trade group representing solar companies across the continent, also thinks the sector should shout louder about its strengths.

One clear competitive advantage is job security, a spokeswoman says, pointing out that over 100,000 jobs were created in the European solar industry in 2021. “Demand for solar jobs is here to stay and growing,” she adds.

The group also thinks companies should do more to boost in-house training. It gives the example of Swedish solar company Svea Solar which launched three new training centres last year in Spain and Germany, training almost 600 people.

More government help

While such efforts will help, most agree the renewables skills crisis cannot be solved by industry alone.

Governments are doing more and a series of new climate bills have been passed around the world recently that should boost confidence and investment in the sector. The US Inflation Reduction Act and the EU’s Fit for 55 rules on methane emissions reduction are a few examples.

However, Clipsham says that in the UK at least, the government needs to give clearer signals and long-term commitments to the sector. “A cross-party agreement on this would be very helpful, rather than the vacillation we so often see. Commitment means that education can develop programmes in conjunction with the private sector. Clear signals will also help overcome the job security question.”

Similarly, Solar Power Europe thinks the EU could go further by helping to coordinate national efforts to establish training programmes, particularly when it comes to mutual recognition of qualifications between member states. It also wants to see better analysis at national level of the skills and workforce needed.

“National and regional authorities should then require universities and training providers to create courses to match that gap and stimulate close cooperation between education institutions and the solar industry,” its spokeswoman says. “Secondly, countries should incentivise companies to undertake their own training programmes, for instance through tax breaks.”

The industry and politicians are at least starting to discuss the skills crisis. But companies cannot afford to hang around and must act now.

According to a survey by the consultancy McKinsey last year, 70% of employees said their personal sense of purpose is defined by their work. This reflects a growing change in the aspirations of employees, as they look for employment with firms that represent their own values.

In the energy sector, this gives renewable companies a head start over traditional oil and gas firms, with working on green energy, clean tech or other solutions to the climate emergency pretty close to a dictionary definition of purposeful work.

It means that fossil fuel companies need to work harder to attract candidates looking for purpose-led employment, and leverage their employer brand.

The 'sell' of joining a traditional oil and gas company lies in the opportunity to be a part of the energy transition, affect real change and help shift perceptions of the sector over time, says Keira Pintao, a senior employer brand strategist at AMS. “Purpose-driven branding makes a business far more attractive to a much broader entry level audience. AMS advises companies to focus on their long-term role in the energy transition, as well as the cutting-edge mitigation technologies they’re championing.

Similarly, diverse workforces are known to help companies succeed. At Vattenfall, this is a priority in terms of talent resourcing. The company’s head of strategic development Andreas Regnell said in a release: “To be competitive, we need to have access to, and make the most of, diverse perspectives, knowledge and skills. We need to be an employer that is seen to be open and attractive to everyone. If we are to attract all the talented people needed in the coming years, we will have to look more broadly. And the work doesn’t stop with finding and bringing in diverse talent. Instead, it is then up to us to make sure everyone feels truly included. I also believe this will make Vattenfall much a more fun company for all employees.”

The next step is to take that employer brand and translate it into engagement messages. Whatever form recruitment campaigns take, primarily they are all about trust and telling an actual story, and one of the most effective ways to do that is using the voice for real employees; the authentic piece. “`What is the challenge, where are we now, where are we going and what’s your role in it,’ that’s what employees want to know,” says Pintao.

But while all energy companies need to attract new talent to the sector in order to fulfil the thousands of new opportunities the energy transition is creating, traditional energy companies also need to be mindful not to alienate their current workforce, many of whom will have key roles to play in the energy transition.

A careful balance of messaging between transformation and business stability is important, not only to be attractive to candidates, but also to retain the talent and key skills within the business that’s needed to achieve their energy transition objectives.  

To be competitive, we need to have access to, and make the most of, diverse perspectives, knowledge and skills. We need to be an employer that is seen to be open and attractive to everyone. If we are to attract all the talented people needed in the coming years, we will have to look more broadly.

The oil and gas companies of today won’t be the same companies in 10 years, says Pintao: “But, there has to be a strong level of understanding and acceptance from candidates of the need for a continued reliance on oil and gas at this stage of the journey toward carbon neutrality.”

Forward thinking energy businesses have put inclusivity, diversity and most importantly purpose front and centre of their recruitment marketing. They use traditional careers events coupled with training programmes, graduate schemes and support for stem students in secondary schools and universities to promote and sell the opportunities that exists in the massive challenge represented by the energy transition.

To improve talent resourcing, many companies are turning to graduate schemes and relationships with universities. Spanish energy brand Iberdrola supports scholarships for young people from socioeconomically vulnerable backgrounds who are studying stem subjects. It has also committed to offering 300 places on its graduate scheme to develop young talent from the earliest stages of their careers.

Wind company RWE works with Welsh students pursuing engineering careers to foster young talent as well. Alwyn Jones, programme area manager for engineering at Coleg Llandrillo, said in a release: “We are pleased to be able to support RWE in their aim to upskill their workforce. Our existing partnership with RWE hopes to lead the way in promoting green skills in the energy industry. The courses will be developed so that the students can access the learning materials and resources from anywhere, 24/7.”

But renewable companies don’t have it all their own way. First, they’re in competition for talented young people with other attractive sectors such as electronics and the life sciences. Second, they need to recognise that job stability, pay and perks like health insurance have become more important to employees over recent months.

Pintao says the crucial element to tying these programmes to the employer brand is that “everything that you’re talking about externally, you should be reflecting internally as well. If the two things aren’t connected, you’ll disengage current people, or lose the people you’ve just hired because they’ll feel like you’ve not been honest with them.”

The industry will need to think creatively in order to fill the skills gap it is currently facing. But, with an eye on its purposeful employer brand proposition and to fostering young talent, renewables can succeed in overcoming its resourcing challenges.

Investment in renewable energy is growing fast around the world, with the number of jobs in the sector set to soar over the next decade. Massive rollouts of wind and solar power infrastructure will be needed for countries to meet their net zero goals, and millions more skilled engineers, technicians, project managers and other professionals will be required to make it happen. 

Yet, the market for these workers is tight and firms are already struggling to find the skills they need. A lack of training and reskilling opportunities, insufficient government investment and low levels of unemployment have made it harder to attract the right candidates. 

And there is real concern that the industry will be unable to find the people it needs to realise the huge growth opportunities ahead, making the job of tackling climate change much harder.

A smarter approach 

AMS, a total workforce solutions provider, delivering client services in over 120 countries, has been working for more than two decades to help global organisations outsource and optimise their recruitment strategies so they can tackle skills gaps. 

The firm has helped a host of companies, including some of the world’s largest energy firms, to source talent, onboard staff, improve employer branding and deploy the latest technologies to manage their recruitment efforts. 

David Ingleson, global client director at AMS, says there is no “silver bullet” for the current skills crisis, but governments are laying the groundwork for change. “Encouragingly we’ve seen a sweep of legislation passed in the last few months that should help boost investment in green jobs globally,” he says. “There was the US Inflation Reduction Act and the EU’s Fit for 55 package, not to mention new climate bills in India and Japan, all of which set the stage for much needed government-industry collaboration.” 

However, Ingleson says companies should not wait around for government investment and must act now to strengthen their talent pipelines.

Diversify the talent mix

Employers must look beyond the energy industry for workers with transferrable skills, Ingleson adds. But the challenge is working out where those professionals may be, both geographically and in terms of industry vertical. 

With a global network of 11,000 experts, AMS helps energy companies to source candidates from sectors as wide-ranging as education and research through to engineering and the military. It also helps them target a more diverse pool of potential candidates. Currently only about 30% of workers in the renewables space are female and only 11% are non-white.

Companies must take a holistic approach to their talent acquisition strategies and adapt. Those who don’t will struggle to grow and play their part in tackling the climate crisis

Consequently, the sector has a real opportunity to recruit a broader workforce, from different backgrounds and sectors. By doing this, organisations will encourage innovation which leads to more creative approaches to solving business problems and delivering against overall growth strategies.

AMS helps organisations to diversify their recruitment through its dedicated diversity, equity and inclusion (DE&I) consulting teams. Lynne Gardner, sector managing director at AMS, says firms must think beyond the “traditional hiring routes” and build out skills from the bottom up. “That means investing in graduate recruitment programmes and apprenticeships, developing better relationships with universities and making sure you are recruiting in the most gender-balanced and socially diverse way,” she says.

‘Employers of purpose’

Increasingly, employees want to work for ‘employers of purpose’ that embody their values, something that should put the renewable energy sector in a strong position in years to come.

But while many pure renewables companies have successfully positioned themselves as attractive homes for Millennial and Gen Z workers, some traditional oil and gas companies have a bigger challenge to market themselves effectively and need support from employer branding specialists. 

With its own employer branding consulting team, AMS is ideally placed to help its partners communicate what makes them unique and attractive as an employer.

The core of the AMS business is recruitment process outsourcing though, and a key benefit of these services is that they enable organisations to be flexible – scaling their recruitment efforts up and down in line with demand and wider market conditions. After the global economic shocks of the last few years, organisations are naturally more cautious about making long-term investments and flexibility is key.

By some estimates employment in the renewables industry globally will need to more than triple to 38 million by 2030, and companies must prepare for this soaring demand. But too many remain complacent and risk missing out on the opportunities ahead.

“Companies must take a holistic approach to their talent acquisition strategies and adapt,” says Gardner. “Those who don’t will struggle to grow and play their part in tackling the climate crisis.”

If your company is facing these challenges, contact AMS to find out how they can help.

Across Europe, the renewables sector will require a 5.2% increase in new employees before 2030. Similarly, to meet the targets set out in last year’s British Energy Security Strategy, the energy sector will need a workforce of around 200,000 people by 2030, up from just 60,000 today. Achieving this will also see a massive shift in workforce dynamics, with around two out of three people working in renewables rather than oil and gas.

While transferable skills will play a key role in meeting some of these recruitment needs, as engineers, technicians and mechanics transfer from one form of energy to another, operating and developing facilities designed to deliver new forms of clean energy will also require completely new skills. And that calls for hiring managers to start thinking differently and cast the net wider for new talent.

According to Robert Norris, head of communications at RenewablesUK, for the renewable energy sector to continue to expand rapidly, it “requires a wide range of skill sets… not just in wind and solar power but also in new areas like green hydrogen. In the wind industry, for example, we need entrants at every level, from turbine maintenance technicians to project designers and managers, engineers and lawyers.”

Promoting stem subjects in school and colleges will help to meet some of the needs of the energy transition, he says. “It’s important for our industry and government to work together to address skills shortages in areas like electrical engineering and data analysis, so that we can boost the number of high-quality green jobs throughout this decade.”

Professor Paul de Leeuw, is a director of the Energy Transition Institute, a think tank at Robert Gordon University. He is seeing companies starting to adopt more creative business models to meet their recruitment needs, such as hiring in specialist skills on a part-time, contract basis. “A lot of the energy in the future is about energy systems and energy integration,” he says. “It's all about data and data management. A lot of these new skills coming in are critical but they don't necessarily all have to reside in the energy sector.”

If there isn’t enough importance or priority put on diversity across the sector then it will fall behind other industries who are prioritising it and are able to hire more talented workforces as a result

But hiring managers have another tool in their box says Norris, and by embracing diversity they can open up a whole new talent pool. Conceding that the energy sector has always been male dominated, he says: “We’re looking to recruit people from a diverse range of backgrounds to ensure that our workforce reflects modern Britain in terms of gender and ethnicity.”

Last year, he says, the percentage of women working in offshore wind increased to nearly 20%, although the industry still has some way to go before reaching its 2030 target of 33%.

Paul Modley, director of diversity, equity and inclusion at AMS, says embracing diversity can help the sector surmount many of the recruitment challenges that the transition will bring. “Diverse teams deliver more innovative and creative solutions, and that has to be a big benefit for this sector in particular,” he says. “It creates more impactful thinking and allows you to shake things up.”

“If organisations across the sector are all focusing on this, then it will mean that it recruits a broader workforce, from different backgrounds and sectors, bringing a different perspective to doing business.”

The sector must also consider the needs of its multigenerational workforce, he adds, and in order to hire and retain the best talent it must be able to identify the needs of these different generations and offer career opportunities to suit them. “If there isn’t enough importance or priority put on diversity across the sector then it will fall behind other industries who are prioritising it and are able to hire more talented workforces as a result,” he says.

Not only can this search for new talent improve the industry's cultural and demographic diversity, but its location diversity as well. Unlike many traditional forms of energy, such as coal-fuelled power stations positioned close to major cities, renewables are located outside of these traditional urban hubs. “Future energy is regional, it’s local, it’s distributed,” says de Leeuw.

The countries bordering the North Sea are set to become a major hub for renewable energy, changing the face of Europe as manufacturing industries more traditionally found in central Europe, along with new companies with energy-hungry data centres, migrate to where the power is.

“Offshore wind is revitalising coastal communities around the country, with centres of excellence being created in areas which need new opportunities,” says Norris. New factories manufacturing turbines blades, towers, cables and foundations, as well as operations and maintenance bases are springing up in new locations across the UK. In Europe, the war in Ukraine has sparked a renewed commitment by the European Commission to establish renewable energy sites, particularly in the Baltics and northern Poland.

However, adds de Leeuw, alongside this distributed model, the sector also needs several key clusters, with enough big players to create a base for technology development, innovation, regulation, and somewhere companies can build new capabilities and export hubs. “You still need critical mass clusters; you can become too fragmented,” he adds.

Spanish energy company Iberdrola Group has released its first human rights report, exploring the impact it has on its employees and communities. Chairman Ignacio S. Galán said in a release: "At the Iberdrola Group, we respect human rights with conviction and always act responsibly and with respect for people, the environment, and the communities in which we are present. We are aware that large companies have a very positive impact on society, but we also know that there are certain aspects of the performance of our value chain in which we must be very vigilant."

The targets are in place for renewable energy to make an impact across Europe, the only question that remains is how effective the resourcing strategies will be to support this sector-wide expansion.