This year has seen the growth in a number of new players and companies like Shell and Bp have been making a number of acquisitions. External investment has increased in by 31%* despite a which show that despite a relatively flat year for VC funding.
Finding 1- Respondents feel it isn’t too difficult for individuals without energy sector experience to join the sector scoring it 6 out of 10 with 10 being very easy
In new areas such as renewables, the digital space, clean tech these are growing spaces where there are no set career paths and few people currently in energy with the skills so individuals are encouraged in. This is shown by the fact that 63% of people are now working with people new to the sector.
The reason many people give for joining the energy sector is because they have a sense of purpose and want to make a difference by delivering the energy transition and making clean energy accessible to all. What is also interesting is this isn’t just graduates, headhunters and recruiters are seeing interest in energy from outside the sector something that they would not have seen a few years ago.
So what do leaders need to consider to keep people in a sector which is growing and has a shortage of skills in these new areas?
· Ensure individuals can clearly see how their role/activity aligns and furthers the company’s purpose
· Inclusion, particularly for a company that is bring new people with different experience and skills.
Finding 2 People felt for companies new to the sector that demonstrating returns and being credible in the sector was the key challenge
74% of people felt that demonstrating returns and establishing themselves as being credible in the sector was the biggest challenge overall
The other challenges are:
· Keeping up with demand, (50%),
· protecting/unique technology 55%
· investment into the energy sector 57%.
Typically 60% of companies fail in the first 3 years on average in the UK and a number of these challenges are also cited as reasons companies fail. In fact, my research has found a number of companies looking to double or triple their workforce in order to keep up with demand. So, what do leaders of these new growing companies need to consider
· leadership team and relationship with investors: is everyone aligned behind the strategy, when choosing investors do they have the same objectives as you and what is the exit. Is the leadership of the company suitable for this stage and the next steps, often the founder is the person who has the entrepreneurial spirit to get a idea off the ground but does not have the skills to manage the day to day operations when things grow and need to be systemised
· What is your operating model, how do you build effective operations to deliver what your customers actually need.
*Energy transition investment trends 2023 Bloomberg NEF Jan 2023