**London**: A survey by Ernst & Young reveals a stark contrast between executives’ recognition of the need for employee reskilling in the energy sector and the actual development rates. While support for reskilling is high, implementation remains alarmingly low amid growing reliance on external resources.
A recent survey conducted by Ernst & Young (EY) has highlighted a significant gap in the energy sector’s approach to employee reskilling, despite the high value placed on it by executives in power and utilities as well as oil and gas and chemicals sectors. While a notable 91% of executives from power and utilities and 85% from oil and gas and chemicals believe that their organisations’ ability to reskill employees will be crucial for success over the next five years, the actual rates of current employee retraining are alarmingly low, at just 26% and 29%, respectively.
The survey, which included over 1,000 global respondents from energy companies and was conducted between November and December 2024, reveals a trend towards external reliance. A substantial 88% of power and utilities executives and 81% of those from oil and gas and chemicals plan to increasingly depend on vendors and contractors, which indicates a shift towards outsourcing certain functions.
Despite the increased reliance on external resources, the survey found a growing optimism regarding workforce agility, with 86% of power and utilities executives and 81% of oil and gas executives feeling that their teams can effectively respond to shifting business needs. These figures represent a notable increase from previous years, where only 57% and 53% respectively expressed similar confidence in 2021 and 2020. Nonetheless, a significant number of executives in both sectors believe that company culture is impeding the integration of essential digital technologies, with 73% of power and utilities and 58% of oil and gas executives citing cultural barriers.
Timothy Haskell, EY’s Americas People Consulting Leader for Power & Utilities and Oil & Gas and Chemicals, commented on the survey findings, stating that it reflects a unique moment in time as the industry looks towards the future amid changing policies and technological advancements. He emphasised that while executives feel competent in imparting in-demand skills, the challenge lies in bridging the skills gap through continuous learning and strategic prioritisation.
Executives are increasingly prioritising the adoption of new technologies, but many have yet to see a promising return on their investments in technology such as artificial intelligence and cloud computing. The report suggests that while energy companies are keenly aware of the importance of technology and retraining, they are still struggling to implement effective methods for reskilling their workforce.
In summary, the EY survey paints a complex picture of the energy industry’s current state, where the aspiration for reskilling and technological investment is not fully matched by action. The industry faces not only the challenge of adapting to rapid changes in technology and workforce dynamics but also the need to nurture a culture that embraces continuous learning and innovation.
Source: Noah Wire Services
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