Sector insights: skills and performance challenges in the energy sector

Sector insights: skills and performance challenges in the energy sector
Document type
Report
Author(s)
Brennan, Jennifer; Limmer, Hayley
Publisher
UKCES
Date of publication
1 March 2015
Series
Evidence reports. No. 90
Subject(s)
People management: all aspects of managing people
Collection
Business and management
Material type
Reports

Download (1,013KB )

Your use of this content is subject to the terms and conditions of this portal

This report aims to examine skills and performance challenges and present conclusions about the energy sector, focusing upon a selected number of key occupations in order to yield in-depth insights:


• engineer;
• technician;
• project/change manager;
• sales and marketing manager;
• overhead lines worker.

Methodology

This research is based on 91 interviews with key informants and employers.

Key findings

In 2013, the energy sector contributed 3.3 per cent of the UK’s GDP, directly contributing £25 billion to the UK economy, with a further £71 billion in indirect contributions. 

In 2013, 6.2 per cent of the industrial workforce was employed in the sector, equating to 169,000 people. Despite a recent decline in productivity, it remains one of the most productive sectors in terms of GVA per employee.

The UK energy sector is evolving rapidly.

The outlook for the energy industry as a whole is mixed, with sub-sectors facing different challenges.

For example, the electricity sector is forecast to grow (underpinned by substantial investment into smart metering), as is the renewables sector (particularly offshore wind). 

Conversely, falling oil prices have been a catalyst for recent job losses in the oil and gas sector.

The interviews reveal skills shortages across a range of key occupations. Interviewees report a limited supply of skilled and experienced workers, caused by:


• strong competition for skills between sub-sectors, other sectors and countries;
• uptake of the most sector-relevant STEM qualifications not meeting employer demand;
• poor visibility of (and consequently interest in) the energy sector as a career prospect among young people and potential new entrants from other industries;
• an ageing workforce.

Related to People management: all aspects of managing people

The recognition of professional qualifications and regulation of professions: call for evidence

Downloadable call for evidence on the recognition of professional qualifications and the regulation of professions

Rethinking reward: analysis of 2020 pay ratio disclosures (interim report)

Downloadable report analysing the pay ratio disclosures made by FTSE 350 companies

Labour market outlook: spring 2020

Downloadable spring 2020 edition of CIPD’s quarterly Labour Market Outlook

Consultation on Carer's Leave

Downloadable consultation on carer’s leave

More items related to this subject

Related to UKCES

Evaluation of the UK futures programme: conclusions and guidance

Downloadable report presenting the learning from the evaluation of the UK Futures Programme

Tilting the odds: skills for innovation in manufacturing

Downloadable report summarising the projects making up the UK Futures Programme 4th Productivity Challenge

Evaluation of UK futures programme: final report on productivity challenge 4: skills for innovation in manufacturing

Downloadable evaluation of the UK Futures Programme 4th Productivity Challenge

More items related to this publisher