Challenges

The energy sector faces significant and rapid change and industry leaders know they operate in volatile, complex, and ambiguous environments. Given the complexity of the industry and market — with regulatory challenges, geopolitical pressures, and environmental issues — it could be difficult to know what leadership talent needed today and how to develop the energy industry leaders needed for tomorrow.

The energy sector employed over 65 million people in 2019, equivalent to around 2% of global employment, with clean energy employing over 50% of them. Energy employment is set to shift rapidly as countries and companies accelerate efforts to decarbonise and meet net zero emissions pledges. At the onset of the Covid-19 pandemic, hiring gaps and tight labour markets have contributed to supply chain disruptions and project delays in many parts of the energy sector, notably offshore wind, oil and gas, and energy efficiency retrofits. Today’s global energy crisis could prompt governments and industry to rethink their global supply chain exposures especially vis-à-vis dependence on Russia’s fossil fuels. This may portend another few years of larger-than-normal shifts in energy employment.

The energy sector requires higher-skilled employers than other industries. Around 45% of energy workers today are in high-skilled occupations, compared to only one-quarter across the economy. This share is even higher for jobs in research and development for new energy innovations, many of which are set to grow rapidly to 2030. Strategic planning can ensure that scaling is not hampered by a shortage of skilled workers. Establishing market strength in these segments relies on new training and certification and can be a focus for industry along with ministries of energy, labour, and education.

Well-targeted development initiatives for energy industry leaders are essential for success. Organizations need good leadership to set new directions, align people with mission, build a commitment to new vision and action, and develop talent. Energy leaders and organizations also need to create career and development strategies to provide significant broad, cross-organizational experiences and learning.

Strengthening the ability to lead employees and teams is a top priority for energy organizations looking to invest in talent development. In parallel, they should help their current and upcoming leadership pool to think strategically about developing the skills and perspectives needed to grow and succeed in the industry.