Shortage of Renewable Energy Talent: How to Attract, Build and Retain Talents in this Competitive Landscape?

According to the International Renewable Energy Agency (IRENA)'s World Energy Transitions Outlook 2023, a whopping 12.7 million renewable energy jobs were filled in 2022 alone. Looking ahead, predictions indicate an even greater demand, with an estimated 30 million renewable energy jobs needed by 2030 and a staggering 39 million by 2050 in order to meet the 1.5 °C target. While this underscores a positive shift towards addressing climate change, it also signals an impending talent war as companies chase top talent in the field. The competition for renewable energy experts is not only local but also global and requires organization to adopt recruitment strategies to attract and retain talent.

What skills are sought after in the renewable energy sector?

McKinsey's 2022 study highlights the looming scarcity of specialized talent in the renewable energy industry, both in blue- and white-collar roles.

Over the next decade, the industry will require :
1- An additional 1.1 million blue-collar workers for construction and operation, including construction laborers, electricians, and operating engineers.
2- 1.3 million white-collar workers will be needed for project development, management, finance, and legal roles.

The demand for experienced professionals with over six years of experience and expertise is expected to outstrip supply, making talent retention critical.

How to attract, build and retain Renewable Energy talents?

The biggest challenge lies in attracting and retaining experienced professionals. In some organizations., the the lack of career advancement opportunities, compensation limitations, and cultural mismatches are at the source of employees' high turnover.  Companies are reevaluating their HR and recruitment strategies to address this challenge. Below are a few strategies to attract, build and retain Renewable Energy talents: 

1. Increase Employee's Compensations and Benefits:  As the demand for skilled professionals continues to outstrip supply, companies have responded by increasing salaries to remain competitive in the market. This trend is expected to persist, with salaries projected to continue rising in the coming years. In this sector, salary ranges can vary significantly depending on factors such as geographic location, individual job roles, and company types. While average salaries may be comparable across different companies, there are differences in the ranges offered. Utilities, for example, may offer lower salaries for top positions compared to other industry players such as oil and gas majors, investment platforms, or financial firms, which have greater flexibility to provide higher compensation packages. 
In addition to base salaries, employee incentives such as bonuses, stock options and long-term incentive programs play a crucial role in attracting and retaining ambitious and high performers professionals. These incentives not only offer financial rewards but also provide employees with a stake in the company's success, aligning their interests with organizational goals. 

2. Building a Strong Brand: Establishing a visible brand presence is crucial for attracting talent. Companies need to ensure that their reputation and commitment to sustainability are well-known within the industry and beyond.

3. Clear Career Paths: Offering clear career development paths is a key strategy for retaining employees. When professionals can envision a future within the organization, they are more likely to stay and contribute to its success.
Additionnally, enhancing decision-making processes and fostering collaboration styles will mitigate employee frustration, enhance talent retention, and cultivate motivation and engagement toward achieving organizational objectives.

4. Strategic Acquisitions: In a talent-starved industry, companies are increasingly turning to acquisitions as a means of acquiring top talent. While costly, acquiring companies for their skilled workforce can be an effective solution to talent shortages.

5. Early Recruitment Initiatives: Recognizing the growing talent scarcity, companies are launching recruitment initiatives targeting universities and vocational schools to identify and secure high-potential talent early in their careers. Regional and local recruiting programs facilitate the transition and transfer of competencies of relocated employees while ensuring a steady supply of local talent.

6. Structured Training Programs: To address the shortage of technicians and blue-collar workers, companies are investing in training programs focused on long-term career development. Offering clear pathways for advancement, will help employers attract and retain skilled workers needed for the construction and maintenance of renewable energy projects.

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​By adopting these levers companies show a proactive strategy to mitigate the talent scarcity in the renewable energy sector. At EnableGreen, we have years of experience in the industry. With our deep understanding of the renewable energy job market, and our personalised direct and confidential approach, we are uniquely positioned to help organizations identify, attract and retain renewable energy talents. 

​Author: Hayatte Loukili 

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