The energy sector is facing a staffing crisis – 84% of companies struggle to find skilled workers, while nearly half the workforce is nearing retirement. This shortage is delaying projects, increasing safety risks, and driving up costs. But companies are finding solutions.
Key Takeaways:
- Skills Gap: A global shortage of 7 million renewable energy workers is expected by 2030. Digital skills are also in high demand, but 60% of workers feel unprepared.
- Aging Workforce: 50% of the energy workforce will retire by 2035, risking the loss of decades of expertise.
- Safety Risks: Workforce cuts have led to operational hazards, like the Chevron platform fire in May 2025.
- Solutions: Companies are using mentorship programs, targeted training, and on-demand staffing platforms like ABLEMKR to close gaps and adapt to changing demands.
Quick Overview:
| Challenge | Impact | Solutions |
|---|---|---|
| Skills Gap | Delayed projects, safety risks | Training programs, digital tools, partnerships |
| Aging Workforce | Loss of expertise, operational delays | Mentorship, knowledge-sharing platforms |
| Competitive Market | High turnover, difficulty attracting talent | Employer branding, DEIB initiatives, flexible work options |
The energy sector must adopt flexible staffing models, invest in training, and embrace technology to meet rising global energy demands and transition to renewables.
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Skills Gap and Need for Specialized Workers
The energy sector is grappling with a massive skills shortage, driven by the need for highly specialized expertise. With energy demand expected to double by 2050, companies are racing to find workers equipped with the technical know-how to meet the demands of a rapidly evolving industry. This challenge highlights the urgency for targeted solutions.
Take renewable energy, for example. Jobs like wind turbine service technicians are projected to grow by 60%, and solar photovoltaic installer roles are expected to rise by 48%. Yet, a 2024 report predicts a global shortage of 7 million skilled workers in this sector by 2030. In just one year, employment in renewable energy jumped from 13.7 million to 16.2 million – a testament to its rapid expansion but also a clear indication of persistent gaps.
The issue isn’t confined to one area of expertise. It spans the entire energy value chain, affecting roles in data management, grid integration, and other areas that require workers to handle increasingly complex systems. Adding to the challenge, around 14% of the global workforce will need to adapt their skillsets by 2030 to keep up with advancements in digitization, automation, and artificial intelligence.
Geography makes the problem even trickier. Many energy production sites are located in rural areas where the talent pool is limited. As Brian Korgel, Director of The University of Texas at Austin Energy Institute, points out:
"So the one challenge is just literally the number of people who live out there".
Problems with Closing the Skills Gap
Several factors contribute to the energy sector’s skills gap, and traditional hiring methods often fall short in addressing them. For one, academic programs are not adequately preparing graduates for the roles that are in demand. Bindi Patel, Head of Customer Experience & Communications at Vattenfall Heat UK, notes:
"There is a lack of people with experience in heat networks".
This highlights how specialized these roles have become.
Outdated training programs are another hurdle. The rapid pace of technological advancements means workers now need expertise in areas like advanced grid management and AI-driven predictive maintenance – fields that barely existed a few years ago.
The competition for skilled talent is fierce. Between 2018 and 2023, the share of "green talent" grew by 5% annually, but job postings requiring green skills increased by 9% each year. This mismatch allows skilled workers to be selective, often leading to shorter commitments in energy-related roles.
Diversity – or the lack thereof – is yet another challenge. Women make up only 26% of the energy workforce, while Black or African American workers represent just 9%. This limited diversity not only restricts the talent pool but also hampers innovation. Bettina Karsch, Chief Human Resources Officer for Cepsa, emphasizes:
"We need a collective effort to change, because not only will diversity help us make better decisions, we know that diversity increases profitability".
Adding to these challenges is the negative perception of the oil and gas industry, which deters younger workers who prioritize environmental sustainability. This perception issue affects the entire energy sector’s ability to attract new talent.
How Companies are Fixing the Gap
To tackle these critical shortages, companies are turning to partnerships, specialized training, and technology-driven hiring solutions. Countries like Germany are leading the way by integrating green skills directly into their vocational education systems. Programs in renewable energy engineering, solar installation, and sustainable building technologies have helped Germany double its green jobs since 2019.
Other nations are adopting similar approaches. Canada introduced the Green Skills Passport in 2024, providing hands-on training tied to industry certifications. The UK followed with its Energy Skills Passport to help oil and gas workers transition into renewable energy roles. Meanwhile, Singapore launched the Green Skills Committee to align curricula with industry needs.
Some companies are creating tailored training programs to address specific skill gaps. For instance, Vattenfall Heat UK is working to show how skills from other industries can transfer to energy jobs, broadening the talent pool.
Technology is also playing a significant role. Platforms like ABLEMKR are revolutionizing hiring by offering verified worker profiles and automated job matching, making it easier for companies to connect with skilled candidates quickly.
Balfour Beatty is another example of a company investing in digital technology and workforce development. Through partnerships like WorldSkills UK and programs with Jobcentre Plus, the company is addressing skill shortages while promoting job opportunities.
The key to success lies in creating flexible workforce models that align skills with project needs. Companies adopting skills-based strategies, such as pay-for-skills programs, are seeing better results in attracting and retaining specialized workers.
As the renewable energy sector continues to grow at an incredible pace, these innovative approaches will be crucial for companies navigating the energy transition while staying competitive.
Aging Workforce and Keeping Knowledge
The energy sector is bracing for a significant shift as a wave of retirements threatens to take decades of expertise with it. This demographic change is creating challenges for companies trying to maintain operations today while preparing for tomorrow.
How Workforce Aging Affects Companies
The statistics are hard to ignore. Within the next decade, around 400,000 energy sector employees in the U.S. are expected to retire. By 2035, nearly half of the workforce will be at or near retirement age.
But the issue isn’t just about finding replacements – it’s about holding on to the invaluable knowledge these workers have built over years. Consider this: over 70% of the U.S. power grid is over 25 years old, and the people who know its intricacies are aging right alongside it [20, 21]. These retiring professionals carry with them an understanding of systems, troubleshooting techniques, and historical context that simply can’t be replicated by reading a manual.
Adding to the challenge, younger workers are not only harder to attract but are also more likely to explore opportunities outside the energy sector. This limits the pool of experienced professionals who can pass on their expertise to the next generation. As a result, companies face a growing "generation gap", where newer employees lack the depth of knowledge held by their predecessors.
This gap doesn’t just slow innovation – it introduces risks to everyday operations. Without a well-planned strategy to transfer knowledge, companies may struggle to maintain aging systems and adapt to the changing energy landscape.
Ways to Transfer Knowledge
Bridging the skills gap is important, but retaining and sharing expert knowledge is just as critical for keeping operations on track. Companies that act early, rather than scrambling after retirements, are better positioned to succeed.
Many leading energy companies, including BP, GE, Chevron, and Rio Tinto, have embraced mentorship programs that pair retiring employees with younger team members. These initiatives allow seasoned professionals to pass on their expertise while preparing the next generation for leadership roles.
Mentorship isn’t the only tool in the box. Companies are also investing in detailed documentation and knowledge management systems. These systems don’t just record procedures – they capture the reasoning behind decisions and lessons learned from past projects. Reverse mentoring is another creative approach, where younger workers teach older colleagues about new technologies while gaining operational insights in return.
Technology is also stepping in to help. Platforms like ABLEMKR connect retired professionals with project-based opportunities, allowing companies to tap into their expertise for specific needs while training newer employees.
Creating a culture of knowledge sharing is equally important. Some organizations are encouraging this through incentives, recognition programs, and leadership involvement. As Chellie Phillips, VP of Communications and Public Relations at Coweta-Fayette EMC, explains:
"Effective culture-building cannot be a top-down strategy; it demands active participation and commitment from every level of the organization".
Digital tools are making it easier to share knowledge across teams, even when they’re spread out geographically. Succession planning has also become a key focus, helping companies identify and prepare future leaders before current experts retire.
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Adjusting Workforce Size for Changing Demands
Energy companies constantly juggle the challenge of managing their workforce. Unlike industries with steady workflows, energy projects often shift between high-demand periods and quieter times. The big question is: how can companies maintain workforce efficiency while keeping costs under control?
This challenge becomes even trickier when you consider the factors driving these demand changes. Seasonal weather can lead to spikes in utility maintenance, new regulations might require sudden inspections, and large infrastructure projects often call for a temporary surge in staff. As a result, energy companies have had to rethink staffing strategies to better align their workforce with these fluctuating demands.
Challenges of Workforce Scaling
Relying on a fixed, permanent workforce comes with its own set of problems. During slow periods, companies face high labor costs without enough work to justify them. On the flip side, during busy times, understaffing can lead to delays, reduced quality, and overworked employees. These issues are compounded by a broader industry trend: 70% of utility employers struggle to fill skilled roles due to talent shortages, and 80% of energy companies report difficulty finding workers with the required digital skills.
Traditional hiring processes only add to the problem. Recruiting, interviewing, and onboarding qualified candidates can take weeks – or even months. By the time new hires are ready to contribute, critical project deadlines may already have been missed.
The Rise of On-Demand Staffing Solutions
To tackle these issues, many energy companies are turning to flexible staffing platforms that allow them to scale their workforce up or down as needed. These platforms help bridge the gap between available workers and job requirements, all while keeping costs transparent and operations efficient.
One standout solution is ABLEMKR, a platform designed to connect energy companies with skilled and unskilled workers on demand. By using ABLEMKR, companies can avoid the expense of maintaining a larger permanent team. The platform provides access to pre-screened candidates with verified profiles, cutting down on hiring time and reducing risk.
The impact of such solutions is clear. For example, CVE Tech reported a 20% improvement in worker quality while gaining real-time invoicing and cost transparency through the platform.
The flexibility of on-demand staffing is particularly useful for companies with unpredictable project schedules. Curtis from Desmond Construction highlights this benefit:
"Working with an on-demand provider of skilled and unskilled workers has been so valuable to us… The inconsistency in scheduling on residential construction projects allows ABLEMKR to add SUCH HIGH VALUE!"
- Curtis, Desmond Construction
This approach also empowers companies to take on projects they might have previously avoided. Brandon from Exhibau explains how it changed their bidding strategy:
"ABLEMKR allows us to bid on projects that we wouldn’t be comfortable bidding on as a company alone. It gives us the confidence we need in knowing that they can supply us with all of the personnel we need to execute the work if we get the job."
- Brandon, Exhibau
Another advantage is the ability to maintain quality while using temporary staff. Nick from Glow shared his experience:
"This company was such an amazing vendor for us! They allowed us to pick and choose workers seeing their profile and experience FIRST, not just sending us whoever they had on the lot. We choose the person and the schedule."
- Nick, Glow
Technology’s Role in On-Demand Staffing
Technology is a key enabler of these staffing solutions. AI-driven tools can analyze historical data to forecast staffing needs and optimize schedules. Mobile apps allow field technicians to access procedures, log results, and communicate in real time, which helps streamline coordination – an area where temporary staffing has traditionally struggled.
The financial benefits go beyond just reducing labor costs. Real-time invoicing and transparent pricing structures make it easier for companies to predict and manage project expenses. This not only improves profit margins but also simplifies payroll management in times of fluctuating workforce sizes.
Hiring and Keeping Workers in a Competitive Market
Energy companies are tackling a tough, two-sided challenge: recruiting and retaining skilled workers in an increasingly competitive environment. Recent data paints a clear picture of just how fierce this competition has become. Around 80% of oil and gas employees have been approached by recruiters, and energy professionals received an average of more than six external job offers in 2025 alone. But the challenge doesn’t stop at attracting talent. A staggering 85% of oil and gas workers have considered leaving the industry altogether, citing better opportunities for career growth, job stability, and innovation elsewhere. Notably, 37% of job offers received by energy workers came from companies outside the sector, meaning energy firms are not just competing with each other – they’re up against entirely different industries.
"The energy industry will be faced with a great range of challenges in the coming years as we work to provide energy to power and fuel the world. At the top of the list is recruiting, retaining, and properly developing a talented and capable workforce." – Rick Muncrief, CEO of Devon Energy
Attracting Workers in a Tight Market
The traditional approach of posting job ads is falling short in today’s market. Why? Because nearly half of candidates lack the necessary qualifications, 41% are drawn away by intense competition, and 31% are discouraged by uncompetitive salaries. This combination of limited talent, rising pay expectations, and intense rivalry makes it critical for companies to rethink their employer branding. A key part of this involves reshaping perceptions of the energy industry and showcasing a forward-thinking vision, including a commitment to environmental responsibility.
"There isn’t nearly enough being done to bring new talent into the industry… This is going to result in a zero-sum game for all of us if we do not adjust our historic methodology of talent acquisition and retention." – Jason M. Allen, CEO of Leeward Renewable Energy
To stand out, companies are building partnerships with schools and universities to create talent pipelines, launching employee referral programs, and tailoring recruitment to prioritize the most critical skills for each role. Many are also leaning into diversity, equity, inclusion, and belonging (DEIB) initiatives, opening doors for underrepresented groups and even hiring individuals with little or no prior experience. These efforts not only help attract talent but also highlight the growing importance of strong retention strategies.
Ways to Keep Skilled Workers
Keeping talented workers has become just as important – and just as challenging – as finding them. The 2023 CEWD Energy Workforce Survey revealed a troubling rise in attrition rates, with non-retirement turnover hitting 7.2%. The financial impact is enormous, with U.S. companies spending more than $1 trillion annually on turnover-related costs.
In the renewable energy sector, job satisfaction is relatively high – 65% of workers report being satisfied, thanks in part to flexible work options (46%) and the meaningful societal impact of their jobs (43%). However, over half of these employees point to stagnant career development as a major reason for leaving.
One standout example of effective retention comes from a European oil and gas company. In February 2023, McKinsey highlighted how the company tackled talent shortages by aligning its business goals with a vision centered on decarbonization and digital transformation. Through employee surveys, the company identified key areas for improvement, such as diversity, inclusion, and flexible work arrangements. By addressing these needs, creating clear career paths, and partnering with universities, the company achieved impressive results: a top-tier employee value proposition (EVP) rating and a CEO approval rating exceeding 80%. It also became a leading workplace for women in the industry.
Companies that incorporate sustainability and innovation into their culture are 20% more successful in holding onto their employees. To strengthen retention, many are offering milestone bonuses, flexible work schedules, comprehensive training programs, and mentorship opportunities for retiring employees to pass on their expertise. Integrating environmental commitments into the overall employee value proposition is also becoming a must for today’s workforce.
Tools like ABLEMKR are helping companies connect with workers by offering transparency through verified profiles and clear cost structures.
"As a CEO, you can no longer just issue edicts and hope people follow along. Employees want to be inspired, they want to understand the vision – not just the ‘what’ but also the ‘how’ and ‘why.’ What part do they play in this vision, and what’s in it for them?" – Dennis Arriola, former CEO of Avangrid and non-executive director at ConocoPhillips
This shift toward more engaging and purpose-driven leadership reflects the broader changes companies must embrace to thrive in today’s competitive talent market. Those that adapt their hiring and retention strategies to meet these expectations will be better equipped to build and maintain the skilled workforce they need for long-term success.
Conclusion: Solving Staffing Challenges with New Solutions
The energy sector faces a tough road ahead when it comes to staffing. With 84% of energy employers struggling to find qualified candidates and nearly half the workforce approaching retirement age, relying on outdated hiring methods just won’t cut it anymore. These challenges call for fresh, tech-driven approaches.
Some companies are already making strides. For example, an Accenture case study revealed that leveraging contingent workers alongside AI tools boosted operational efficiency by 30%. This shows how harnessing technology and flexible staffing models can deliver real results.
Platforms like ABLEMKR are stepping up to fill the gap. As a gold sponsor at the Energy Projects Conference & Expo 2025, ABLEMKR offers solutions like verified worker profiles, transparent pricing, and on-demand staffing. This not only reduces payroll overhead but also helps companies tackle scaling issues and address skills shortages.
Meanwhile, digital transformation is reshaping the industry. Policies such as the Inflation Reduction Act are expected to create 550,000 renewable energy jobs, further shifting the skills landscape. By adopting innovative staffing platforms and investing in targeted training, energy companies can stay ahead in this evolving market.
The path forward lies in embracing flexible work models, purpose-driven leadership, and cutting-edge staffing solutions to overcome workforce challenges and thrive in a rapidly changing energy sector.
FAQs
How are energy companies overcoming the skills gap to ensure a steady supply of qualified workers?
Energy companies are finding creative ways to bridge the skills gap in their workforce. One popular method is teaming up with schools and community colleges to set up focused training programs. These programs are designed to help workers quickly gain the skills needed to thrive in the industry. Another effective strategy is cross-training, which equips employees to handle new technologies, like solar panels and wind turbines, as they become more common.
Many businesses are also putting money into workforce development efforts. This includes launching specialized training initiatives and forming partnerships to build expertise in renewable energy fields. With an aging workforce posing challenges, companies are also working to attract younger professionals. By creating clear entry points for these newcomers, they’re filling the gaps left by retirees and preparing the next generation of energy workers. These efforts are setting the stage for a skilled and sustainable workforce in the years ahead.
How do mentorship programs and knowledge-sharing platforms address the challenges of an aging workforce in the energy industry?
Mentorship programs and knowledge-sharing platforms are key to tackling the challenges of an aging workforce in the energy industry. These initiatives bridge the gap between seasoned professionals and younger employees, ensuring that essential skills, expertise, and industry know-how are passed on before experienced workers step away.
Through mentorship, younger employees gain firsthand guidance from industry veterans, learning practical strategies and problem-solving methods that often go beyond the scope of formal training. On the other hand, knowledge-sharing platforms make it easy to access documented processes and foster real-time collaboration, helping new team members get up to speed quickly. Together, these efforts safeguard institutional knowledge, keep operations running smoothly, and equip the next generation of energy professionals for lasting success.
How are on-demand staffing platforms like ABLEMKR changing workforce management in the energy sector?
On-demand staffing platforms such as ABLEMKR are changing the game for workforce management in the energy sector. They provide quick, flexible access to both skilled and unskilled labor, making it easier for companies to fill essential roles and respond to fluctuating project needs.
What sets ABLEMKR apart are features like real-time workforce management and verified worker profiles. These tools not only help energy companies boost efficiency but also minimize downtime and keep costs under control. By simplifying traditional hiring processes, platforms like ABLEMKR empower businesses to remain competitive in an industry that’s constantly evolving.
