August 2024, Vol. 251, No. 8

Features

Shaping the Future: Strategies for Attracting, Training, and Retaining Energy Sector Talent

[To explore the full digital edition, including the Page Raft version of this article, click here.]

By Missy Henriksen, Executive Director, Center for Energy Workforce Development 

(P&GJ) — Data associated with workforce development is not for the faint of heart. The angst it can cause is especially real for those connected to the energy industry: employers, labor partners, contractors, educators, workforce systems and other stakeholders.

With fair warning offered, let’s dig into the numbers to understand the reality of workforce demands and why workforce development has become an increasingly prioritized focus of late. 

• In June 2024, there were 8.1 million unfilled jobs in the United States. If every person eligible to work was employed, there would still be millions of unfilled jobs throughout the country. 

• Within the energy sector, this gap is particularly pronounced, as industry job growth outpaced overall U.S. employment between 2021 and 2022, 3.8% compared with 3.1% in the same period (U.S. Energy & Employment Jobs Report, U.S. Department of Energy). 

• Forecasting by the Bureau of Labor Statistics, Brookings Institute, and Georgetown University suggest climate and infrastructure employers will need about 17 million replacement workers and 15 million new workers over the next decade (The Incredible Shrinking Infrastructure Workforce and What To Do About It, Brookings Institute). 

• Construction added 27,000 jobs in June of 2024 — higher than the average monthly gain of 20,000 over the prior 12 months. The Employment Situation, June 2024 Bureau of Labor Statistics 

There are a host of factors that have contributed to today’s workforce reality and to the focus on the workforce development, including a reduced labor force, a significant decline in international migration to the U.S. between 2016 and 2021, increased retirements or departures from the workforce stemming from COVID and the gig and entrepreneurial economy, which has removed workers from “traditional employment.” 

In short, there are fewer people available to fill more jobs that exist. 

Workforce Development 

Let’s not go much further without defining “workforce development,” as it generally means different things to different people. 

Chat GPT defines it as such: 

“Efforts and initiatives aimed at enhancing the skills, knowledge and abilities of the workforce within a specific region, industry or organization. It encompasses various strategies, such as training programs, education initiatives, career counseling, job placement services and policies designed to improve the overall quality and productivity of the workforce. 

The ultimate goal of workforce development is to ensure that individuals are prepared to meet the demands of current and future job markets, thereby promoting economic growth and stability.” 

This definition underscores that workforce development is a multi-disciplined strategy. It is not “HR, please go hire people.” Those days are gone. Workforce development is an interdisciplinary process, involving internal and external stakeholders, and it demands C-suite level attention within companies. 

Attracting Talent   

The largest “lift” of workforce development involves attracting talent. That doesn’t mean he with the biggest billboard or most Indeed ads wins. Those winning in this area are businesses forming effective partnerships with educators and community-based organizations (CBOs). 

Also winning are those who are prioritizing worker needs, such as transportation or child-care subsidies, reducing or eliminating stale hiring practices and developing and exercising long-term, strategic workforce initiatives. 

While there a variety of ways you can look at developing your talent pipeline, here are a few suggestions to get you started or enhance your current practices: 

• Examine job postings for gendered terminology. 

• Reduce or eliminate degree and certification requirements from hiring, if possible. 

• Explore how jobs with your company are branded and positioned, to ensure they will resonate with those you want to attract. Are you visible in places your future workforce will see you? 

• Explore jobs available in your community to see how your work stands out, and if it doesn’t, consider what can be done to make it. Consider creating an identity for the company through a named program that provides dinner to the families of employees once each week, sends employees with two years’ tenure on a family vacation or provides something memorable that can create a pre-employment buzz. 

• Partner with community-based organizations that serve people who are under-represented in your workforce. Remember that it will take time to nurture these relationships and to build trust. For example, energy employers pursuing grant funding from the Department of Energy will be required to include community benefit plans, stating how the community will be engaged in project opportunities. 

• Explore non-traditional groups, including those that work with immigrants and refugees, older populations, neuro-diverse individuals, people who have been incarcerated and others. 

• Target different workforce strategies to different prospects. For instance, consider intentional and customized approaches to recruiting veterans, women, those from low-income communities, those for whom English is not their first language, etc. 

• Step up relationships with technical schools, community colleges and universities that can provide good talent funnels; again, if you don’t have an existing relationship, remember just because you have jobs to offer, it doesn’t mean someone unfamiliar with the industry or your business will want to take them. Relationships take time. 

• Engage with your state and local workforce board. They exist to respond to employer and career-candidate needs and have the funding to support such work. 

• Consider partnering with other companies in the industry who work in your community. Sector-strategies will resonate more within a community, especially with workforce development boards. 

Training Talent 

Compounding the daunting task of hiring millions of people over the next several years is the need to train them. Both legacy jobs and those associated with new and emerging energy technology will expand training needs and force us to rethink certain processes that have been the norm. 

Companies will be forced to consider how to develop more dynamic training programs — meaning those that are heavier on gamification, e-books and virtual and augmented reality and lighter on three-ring binders and VHS training tapes. 

Another topic that should be added into the training conversation is the reality that employers may need to provide more on-the-job training, as there is a shortage of educators and curriculum — a trend expected to continue. 

With the expectation that the training landscape will change, there is an increased opportunity to reimagine efficiencies for training. For instance, can employers consider co-creating curriculum and sharing the cost? 

Registered Apprenticeship Programs (RAPs) that are recognized by the U.S. Department of Labor have earned increased interest from companies that have traditionally eschewed them, because they have the potential to offer tax credits and — in some instances — the ability to participate in select federal grants. 

New employees should be armed with skills for careers, not just prepared to complete short-term task assignments. The more multi-dimensional employees are, with cross training where feasible, the more stable and efficient the workforce will be. 

Consider beginning your training opportunities pre-hire, with connections in schools. Start with helping educators bring energy education into classrooms (e.g., the Center for Energy Workforce Development’s Energy Industry Fundamentals program: a free, 120-instructor led curriculum that exposes learners to energy and its career paths). Also consider internships and scholarships programs. 

Retaining Talent 

While countless management books have been written on employee retention, there really is no secret sauce to keeping people on board. There are, however, a few newer elements that should be part of the equation. 

Successful companies will be the ones that prioritize their people. Period — no elaboration necessary. 

The Good Jobs Principles, defined by the U.S. Departments of Labor and Commerce, will be increasingly important and visible priorities for the Administration, and they offer common sense solutions to creating companies that encourage people to stay. 

There is an increasing amount of discussion about the importance of mid-level managers in impacting positive organizational cultures and supporting increased retention. Input heard and disseminated from this group can contribute to people-positive work environments — more so than those that are top-down driven. 

It should come as no surprise at this time, but companies that invest in inclusive and equitable workplaces fare better in retaining diverse talent. As workplaces become more diverse, it will be easier to recruit those who currently feel left out or marginalized. 

Traditional retention factors continue to reign supreme, including those related to compensation, professional development and career advancement, flexible work environments, and feelings of value and importance. 

Workforce development and its practices are changing, and they must. Indeed, the discipline of workforce development must be more urgently prioritized within the sector, to ensure we are prepared to meet the needs of the 21st century energy workforce. 

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