In 2022 more than one-third of UK vacancies were due to skills shortages in areas like engineering, construction, electrical trades, technology, and data. This issue has seen little improvement: the power sector alone is expected to have a skills gap of around 50 percent by 2030, with the water sector at 35 percent.
Beyond power, industries like rail, housing, and transport are encountering the same problem—gaps in skills or knowledge that are holding them back.
The UK Government's £164 billion investment in infrastructure projects between 2023/24 and 2024/25 adds further pressure to these areas and is likely to increase the skills gap. Addressing this will require a more coordinated and collaborative effort across sectors to make upskilling, reskilling, and skill growth within key fields a priority for organisations and governing bodies.
As part of our E&U Workforce Breakfast, we came together with industry leaders earlier this year to discuss the importance of future proofing their organisations by upskilling their people in data & analytics. With the increase in intelligent infrastructure, rapid pace of AI evolution, and smart grids, the skills gap is no more acute than where data & analytics skills are concerned. Below summarises the themes that emerged from that discussion.
The importance of data in addressing the skills gap
A critical part of addressing the skills gap is recognising the fundamental role of data in modern energy and utilities operations. Data-driven optimisation is crucial for achieving efficiency and reliability in complex systems. The more that people become comfortable with harnessing it, the more it can provide actionable insights to push the whole business forward—like using asset health information to enable better decisions on maintenance.
Attract data talent
Our leaders discussed how effectively sourcing data talent is crucial and success had been achieved through:
- Building partnerships with adjacent industries and tech companies, such as using ‘Coding for Girls’ to bring in under-represented talent
- Enhancing recruitment efforts via schools, early education interventions (e.g. technical colleges), university partnerships, alumni networks, and specialised recruitment agencies
- Developing a strong employer brand that emphasises data-driven innovation
- Engaging in proactive recruitment outreach, particularly for data and AI roles
One participant shared an example of partnering with groups like coding bootcamps to recruit motivated individuals from diverse backgrounds and encourage more diversity within the field.
Develop data capability
The leaders agreed that maintaining agility to respond to changing demand and resourcing needs in the data field is vital. This includes:
- Creating a comprehensive talent strategy that includes workforce planning for data professionals, through alignment with HR initiatives such as UK government funded levies to created Academies
- Developing systems to monitor demand and translate these insights into specific data skills
- Conducting regular skills gap analysis and competency modelling for data roles
- Fostering data talent from within via targeted skills development and clear career pathways, through the introduction of career and skill frameworks
Participants emphasised the need to create a profession around data to upskill the entire organization. They discussed the use of external frameworks like the Skills for the Information Age (SFIA) to align against required skills and build learning collateral. Getting the branding right so that the language deliberately focused on ‘skills for the future to get ready for the changing world of work’ rather than focusing on data and analytics, helped to open up people’s pre-conceptions and increased take up.
Retain data professionals
Offering continuous learning and development programmes is critical for retaining data talent. This includes:
- Ensuring quality platforms and processes help to support leaders in setting and reviewing employee career and learning goals regularly
- Implementing specific initiatives such as executive coaching for data leaders
- Creating clear career pathing for data professionals, and navigating skill proficiency through dedicated learning pathways
- Developing robust knowledge management systems to capture and share data expertise through the use of SharePoint’s and communities of practice
Creating a supportive and inclusive workplace culture where data professionals feel valued and respected is crucial. This involves:
- Encouraging open communication and collaboration on data projects
- Recognising achievements in data-driven initiatives
- Providing resources and programmes to support employees' well-being
- Involving data professionals in strategic planning and decision-making processes
Participants stressed the importance of creating a supportive environment for data talent, offering flexible working arrangements, and providing opportunities for continuous learning and development in rapidly evolving fields like AI and machine learning.
Challenges and opportunities
C-Suite engagement
Engaging senior executives in data and AI initiatives remains a challenge. Clear communication and demonstrating the value of data-driven decision-making are essential to gain Board level support and sponsorship. As one participant noted, "AI has been a significant driver of executive interest, with the Board keen on understanding its impact on efficiency and operations."
Regulatory challenges
Working within a regulated industry presents unique challenges for data management and skills development. Engaging with regulators to ensure that industry needs are met while maintaining compliance is crucial.
Industry collaboration
Participants emphasised the need for industry-wide collaboration to address data skills gaps and share best practices. A coordinated approach to training and development is essential to ensure a skilled data workforce for the future.
Staying ahead of the curve
The data skills gap in the UK's Energy and Utilities sector is a pressing issue that requires immediate attention. By developing a skilled data workforce and fostering collaboration among industry stakeholders, Organisations can address this challenge and ensure the continued modernisation of essential infrastructure, delivering faster and better for consumers.
As we look to the future, staying ahead of the curve in terms of data and AI skills development is paramount. Proactive workforce planning and investment in training programs will be crucial to building and maintaining a workforce capable of leveraging data to drive innovation, efficiency, and regulatory compliance in the Energy and Utilities sector.
North Highland is working regularly with our energy and utilities partners to help grow talent strategies and initiatives to get the best out of your workforce. We’d love to discuss any of the insights shared in this paper, so reach out to one our leads below if you’re grappling with skills in the sector.
Ready to transform? Connect with our E&U team to discuss your priorities and begin charting your path to success.
