Will the gig economy end the war on talent?

• 6 years ago (2017-11-01)
• Junior Isles

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By Matthew Hallé, Managing Director, Singular

The workforce is changing. New generations value flexibility in how they are engaged, hired and managed – so companies are having to adapt to stay relevant. The gig economy has emerged as a focal point in this transition, with workers taking on a variety of assignments – or gigs – for multiple parties rather than long-term employments.

Much of the attention so far has been on the likes of Uber and Deliveroo and the legalities of employee rights. However, there is far more at stake. The reality is that multiple industries are embracing the gig economy’s potential to attract, nurture and retain talent – in particular, millennials. One industry that stands to gain the most is energy. The ‘gig’ approach could provide the key both to the sector’s modernisation and solving the looming skills crisis that threatens its future.

A different mindset

The energy sector has a long history of using contractors. After all, there has been substantial need for short-term consultants and experts to execute projects. As such, it appears energy would be well-suited to the gig economy – and it is, except that the approach is very different.

Contractors often behave like permanent employees and tend not to move from company to company. The gig economy is a different mindset altogether as individuals opt for variety instead of one single job.

Staffing consultants and regulators within energy have been trying to encourage people to work in this way, across multiple companies, for some time – and so the gig economy is a welcome approach that will help drive this forward. However, where it will really come into its own is in building the game-changing talent pool of the future.

The war on talent

It’s no secret that energy companies face a serious skills shortage. Oil and gas companies, in particular, have had to face up to the scale of the issue following the downturn, when many established employees exited the industry. Early retirement, redundancies and disillusionment all played a role. The fact is the exodus hit companies hard, particularly as there was a lack of new blood to help compensate. Even renewables, which is on an upturn, faces a similar issue as it struggles to fulfil ambitious growth plans.

Millennials want options. Typically, they prize experiences more than money, they want the choice to work flexible hours or from home, so are reluctant to stay within the confines of one job or even one industry. Students of science, technology, engineering and maths (STEM) also tend to be attracted to forward-thinking, exciting sectors such as technology. Energy firms must compete with innovative companies and offer something that’s new and different.

The problem is that, when it comes to technology and innovation, energy is behind the curve. The sector must modernise and radically change its approach and culture. Get it right and the gig economy will attract a whole new wave of digitally-minded millennials. Get it wrong and energy risks losing the war on talent altogether.

The battle plan

The solution starts with changing mindsets. Flexibility is vital – not just in terms of where and when to work but also in terms of breaking down traditional hierarchies and valuing freelance staff equally. Some energy firms are already diversifying their STEM roles to accommodate this shift but it’s a trend that must continue far and wide.

Outdated perceptions will prove an issue though, so firms must challenge these head on. That means educating those internally who want to stick with rigid old-fashioned cultures. For example, some might view flexible workers as lacking commitment. However, when allowed to focus on specific projects, they could be among the most effective and efficient in delivering on time and on budget.

Having broken down old perceptions, energy companies must then fully embrace the digitised and flexibility-driven world. Many have yet to adopt digital approaches and they need to come up with strategies to do so across their entire business – not just for gig workers.

Technology is one vital ingredient in these approaches – and many companies don’t yet have a technology platform to communicate effectively with gig workers, such as freelancer management systems. These can make a huge difference in engagement, allowing hiring managers to connect directly with consultants. It’s a model that’s proved hugely successful in other sectors, so energy is now primed to follow suit.

Ultimately, it’s about finding the right blend. The gig economy will deliver major rewards but it’s important to not lose sight of the overall need – and that means finding the optimum balance of permanent and gig workers. That recipe could well differ from company to company. Each company is looking to balance its long-term outlook and need for knowledge transfer with its desire for a fresh culture to attract and accommodate a new generation.

The energy sector has ambitious plans that will completely change the way everyone consumes power. The gig economy is a vital tool in getting there and might seem a radical step change today. However, it will quickly become the norm and so the real winners will be those that get the head start now and begin nurturing the sharp minds of tomorrow.