Investing in your workforce — and what matters most to them — is crucial in building workforce resilience.

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What's the Challenge?

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A European perspective

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Investment in technological innovation is showing signs of acceleration. New advancements in software, hardware, business modeling and data analytics have enabled organizations to improve their scope and capabilities to analyze, assess and process new or previously unmeasured data – revolutionizing operating models globally. With new and deeper insight, organizations can identify and fill gaps in their talent and build a more diverse and resilient workforce, helping to improve strategic decision-making for talent hiring or market performance.

2. Companies need to be transparent about the risks and opportunities that climate change, and the shift to a net zero economy pose to their business.

3. Central banks and regulators need to make sure that our financial systems can withstand the impacts of climate change and support the transition to net zero.

4. Banks, insurers, investors and other financial firms need to commit to ensuring their investments and lending is aligned with net zero.

“By 2030 government will need to reflect on commitments made in Paris and milestones reached. It is likely that there will be an acceleration in climate policy, as governments seek to limit global warming and achieve the aims of the Paris accord, as the alternative is climate catastrophe. This will lead to greater pressure to divest, ‘green’ the system and meet climate change targets.” At COP26, countries agreed to monitor commitments and milestones reached on an annual basis. This is likely to concentrate minds at the international level and apply additional pressure to energy companies as progress is made towards decarbonising the global economy.

Accoriding to recruiters and companies.

Leading Causes of Skills Shortage in the Industry

82%

Apprenticeships

Targeting women to join the Industry

Targeting transferable skills from other industries

Training and development of existing workforce

Partnering with colleagues

Changes to retention and recruiting practices

How are energy firms addressing the skills gap?

28.9%

22.6%

36.2%

64.7%

29.4%

28.5%

Experts across the sector acknowledge that attracting and retaining skilled talent is critical to meet growth plans as part of the energy transition. Commitment to building a sustainable talent strategy needs to become a leadership priority. “For change to resonate at all levels of the organisation, responsibility cannot exist within the HR teams alone; it’s got to be a leader-led identity change.” Tamsin Lambert, Talent Excellence Advisor, Shell

Bringing retirees back

15.7%

“The shift towards renewables, and the transition toward digitalisation and automation will gather momentum, placing a renewed emphasis on the need for new skills, and providing new opportunities for energy firms to develop their workforce.” We expect to see new technologies and operations to continue creating new opportunities at entry and experienced levels. Decarbonization is driving an industry-wide operational evolution and many firms are reassessing their approach to succession by identifying future leaders in new ways. The path to leadership is becoming less linear, and firms are finding new ways to support future leaders with the skills and values needed to guide the firm through a period of rapid change.

Talk With Us

If you would like to discuss any aspects of these insights, or to better understand our capabilities in this area, please do not hesitate to get in contact with our team.

Emma Whitworth Senior Risk Engineer emma.whitworth@aon.co.uk

Geri McMahon Co-Head of Responsible Investment geri.mcmahon@aon.com

Suzanne Courtney Chief Commercial Officer, EMEA suzanne.courtney@aon.com

“Within 20 years, the development of technology is likely to accelerate the transition to automation. As business models change and roles become increasingly automated, different skills will be needed… digital readiness will be the difference between success and failure.” Already, innovative technologies are helping firms evolve their operating models.We expect new technologies to become integral to business models, and firms will seek to fill new roles to support this transition. The pace of technological development will continue to grow exponentially, demanding new skills from the workforce, which will continue to evolve over time.

Mark Jeavons Associate Partner - Head of Climate Change Insights mark.jeavons@aon.com

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Divestment

Supply Chain

Talent

Leaders now appreciate that they need a deeper understanding of their supply chains, and the demand for flexible, accurate supply chain logistics is increasing. This has prompted a realization that supply chain due diligence cannot exist without data-driven technology – tracking goods in transit and potential downstream impacts of delay.

Without Workforce Resilience, Organizations Will Not Survive the Great Convergence

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Read Legacy Issues

A workforce in whose health, interests and wellbeing are prioritized and invested will be more resilient to new shifts or circumstances impacting workforce location, production and performance. Organizations that make the right choices – investing in people, their skills and new technology, putting people’s health and wellbeing first, and focusing on their internal organizational culture – can foster a more resilient and sustainable workforce capable of handling unexpected future disruption.

Reconcile People's Needs with Yours or Risk Losing Even More Valuable Talent

Unemployment may have recovered from the job cuts and resignations during the recent COVID-19 pandemic, yet labor market challenges such as talent shortages remain a serious issue for many organizations. Remote and alternative working had a permanent impact on employees, who are now increasingly seeking out organizations that align with their values such as the environment or specific social or cultural stances. Indeed, 45 percent of Americans said they would either quit their job or immediately start a remote-work job search if they were forced to return full time to offices according to a recent GoodHire study. This means that a company’s values – brought to life through their employee value proposition – are critical to hiring and retaining talent. Organizations that practice good corporate responsibility and align with their employees’ values will boost employee trust and loyalty – translating into hiring and retention success. Our Global Pulse survey - conducted in January 2022 – shows that 58 percent of organizations experienced more turnover of skilled technical professionals than any other level of worker in recent events. Therefore, it makes sense why 68 percent of surveyed organizations cited the potential danger of losing key digital and technology skills as a result of turnover. The value of talent with transferrable skills such as technology, data, risk and compliance is at an all-time high, compounded by the heightened potential of their departure from organizations for better pay, benefits and other reasons such as flexibility. Organizations that not only prioritize the hiring and retention of people with high-value transferrable skills, but that also provide these individuals with the resources and investment they need to succeed will in turn have a top-performing workforce capable of withstanding labor market disruptions. Although recent widespread events have affected organizations globally, regional conflicts and geopolitical challenges threaten the balance of an increasingly connected global workforce and markets. Now more than ever, change anywhere in the world reverberates more quickly and impacts organizations of all sizes due to increased globalization. Organizations that can find balance among multinational and regional strategies and action will in turn build a more unified and resilient workforce capable of managing widespread disruptions.

Let Technology Support Your Ambitions for a More Resilient Workforce

Use Data to Make Better People and Workforce Decisions or Suffer the Consequences

Organizations build workforce resilience when their people feel understood and valued. As technological, social and economic challenges converge with new demands, the workforce must be the top priority. For organizations to thrive in the future amidst potential disruption, they must ensure their employees have the happy and sustainable working lives that they want, which in turn enables top performance. Collective employee happiness and security will lead to high workforce performance, agility and capability, which will support resilience. To understand an organization’s workforce, c-suite leaders need to work closely with human resources in order to understand areas for improvement. Internal data can help reveal potential gaps in employee compensation and benefits, employee health and wellbeing, employee communications and engagement, performance management and assessment and data tracking systems.

4. Making Better Decisions

2. Exploring the Data

1. What's the Challenge

Most employees fall into the “live to work” or “work to live” camp. Work/life balance is an elusive concept – sought after but rarely achieved. Yet, the Great Convergence is a catalyst for change. For the first time, in an employee-centered market, organizations are starting to understand the value of creating a sustainable working life for their employees. To retain and attract talent, they must build an environment where careers can exist and flourish alongside (and in harmony with) people’s personal lives and commitments. No one should sacrifice one for the other; this acknowledgement is no longer merely lip service at company meetings but must form the bedrock of employee value propositions and investment, permitting new talent to see it in action. As this understanding develops, the potential for diversity, equity and inclusion will also broaden, leading to workforces that truly reflect the societies they inhabit.