Water, like so many other STEM-based fields, has been impacted by ongoing skill shortages for years now, making it challenging for firms to recruit and retain the expertise required to meet growing demand. As specialist in this field, we have recently commissioned a detailed study into the state of the market in our inaugural Water Industry Labour Report. The extensive report takes a deep dive into recruitment in the industry and identifies the drivers behind the talent shortages, helping employers to better equip themselves to source the skills they need ahead of AMP8. Here’s what we found.

Water industry recruitment challenges

One of the headline takeaways from the report is that hiring and skills issues were listed as the single biggest factor impacting the water industry. Out of the 3,900+ engineers we surveyed, more than a quarter listed recruitment and talent as the main problem facing the sector, ahead of an ageing physical infrastructure, hygiene & pollution concerns, and sustainability initiatives. In one way, the fact that the industry recognises the scale of the challenges it faces is encouraging, after all, it would be much harder to tackle these issues with a head-in-the-sand approach. On the other hand, our data also shows the lengths that individual employers, and water as a whole, will need to go to in order to avoid leaving themselves short-staffed at what is a crucial time, with AMP8 approaching next year.

Talent exodus

Our research also revealed one of the main drivers behind the talent and recruitment issues; namely that a significant proportion of the workforce are considering roles in other sectors. Seven out of ten engineers that we surveyed revealed that they are weighing up their options and looking elsewhere, with the nuclear and oil & gas sectors the main destinations of choice. This presents a major issue for the water industry.

It’s difficult enough to source talent, particularly experienced engineers, and that’s before the majority of existing specialists move to other industries. While recruitment is clearly a significant problem, retention appears to be too, and firms will need to do more to align their employer value propositions with the needs and motivators of the workforce. A one-size-fits-all approach will not cut it here; employers must identify and capitalise on the individual factors that keep engineers in the water sector. But as our research shows, these vary dramatically between different demographics.

Perhaps unsurprisingly, pay was listed as the main factor encouraging professionals to take on roles. However, this was closely followed by job satisfaction; and the main influencer behind that metric was management. Being offered the chance to work on a remote, or hybrid basis also scored well, suggesting that firms shouldn’t force their staff back to the office just yet.

The research also highlighted some areas where engineers and employers are at odds. Our data found that the former – when asked what skills they were looking to develop – listed boosting their leadership capabilities as a priority. However, when asked what skills organisations are seeking, softer competencies, namely communication and leadership, prevailed. In addition, 42% of engineers said their roles do not allow them to be innovative, despite wanting to do so, with the main barriers being organisational structure, culture and Ofwat regulation. If employers are serious about tackling talent shortages, they will need to develop a better understanding of what motivates their workers and adapt accordingly.

Lack of experienced engineers

In other findings, our data revealed that engineers believe there is a lack of technical and digital expertise within the wider workforce, and, perhaps most notably, a dearth of experienced engineers. This is particularly concerning as external research shows that up to a fifth of the existing workforce is set to retire within the next 10 years. On top of this, the water treatment sector lost more talent during the pandemic than any other engineering vertical market, leaving a significant shortage of more senior professionals able to lead projects, within this field at least. This might be manageable if more young engineers were entering the water profession, however, this doesn’t appear to be the case, with the workforce failing to replace the skills that have been lost and will be lost in the coming years. It will take some time to boost talent pipelines to the required extent, and, in the shorter term, employers will need to find ways to identify experienced professionals and attract them back into the water sector.

As we approach AMP8, the war for talent within the water industry will only heat up – if your organisation is seeking specialist skills, or if you are looking for your next opportunity within the sector, then speak to our specialist team.

You can download the Water Industry Labour Report now.

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