To anyone with more than a passing interest in the UK water industry, the news from last month that Ofwat was considering relaxing its performance metrics for AMP8 was met with surprise. Debates over whether some of the larger companies are looking to play by different rules are for a different time and place, for now though, there are more pressing matters to be concerned about. According to several of the leading employers in the market, the main reasons to be worried about AMP8 aren’t related to performance, but rather recruitment. A number of organisations have reported their fears that there simply aren’t enough engineers in the market to deliver the scale of required change and investment.

Water engineer recruitment

This is a major problem for UK water – projects like the Thames Tideway Tunnel, Haweswater Aqueduct Resilience Programme, and several schemes related to phosphorus removal, flood protection and more, are all required to be delivered as part of AMP8. Without them, there could be real threats to the security and future of the water industry that could impact millions of people in the UK.

That means that solutions need to be found, and fast. Considering that AMP8 starts next year, it’s highly unlikely that the volume of new engineers will be brought into the water industry in order to meet demand. Instead, employers will need to find ways to recruit and retain existing professionals to be able to resource – and subsequently deliver – these projects.

We’ve looked into hiring trends in this market in significant detail in our Water Industry Labour Report, which was based on a survey of nearly 4,000 engineers from across the UK water sector. Interestingly, despite the range of well-publicised challenges, ‘skills and recruitment’ was listed as the single biggest factor keeping professionals up at night. Engineers are working at the coalface and will see the reality of the situation, and if they’re worried, employers should be too.

But what can be done?

Firstly, water employers need to start behaving more like their counterparts in other energy markets. It’s no secret that almost every technical field is short on talent, particularly in STEM, but employers in these industries have pillaged the water sector for skills for years now. There are a range of reasons behind the trend, but broadly, a career in water provides a broader attribute base and the ability to adapt to new opportunities than comparable training opportunities elsewhere. However, now is the time for water firms to react; and to start looking to other markets for the skills they need to deliver AMP8. As we’ve established; the water industry doesn’t have enough permanent engineers, so employers will need to think laterally in order to source the experts they need.

Businesses also need to manage their existing workforces more effectively. For whatever reason, the water sector doesn’t leverage the skills of contingent workers anywhere near as much as other markets. That needs to change. The employment market of today is drastically different to that of a decade ago, and seeking contract talent can help firms to scale their resources up and down depending on demand, meaning they’re free of the overhead costs associated with permanent hiring. Some companies have had misguided fears over the potential impact on working cultures and cohesion when employing large volumes of contractors. However, we know of one major firm whose so-called ‘contingent’ workers have been with the organisation for longer than much of the permanent workforce. Put simply, if you’re not using contingent workers to flex and meet demand driven by AMP8, then you’ll be way behind the curve.

Finally, to help tackle their recruitment and retention issues, employers should look to engage with their existing workers more effectively than they do now. Our data revealed that a variety of factors feed into the motivators of engineers looking to move jobs. While pay – perhaps unsurprisingly – comes out on top, it’s closely followed by flexibility and job satisfaction. The latter of these two is heavily influenced by management, suggesting that modernising and adapting leadership policies to fit with individuals, rather than the collective, could have a positive impact on staff retention. The same applies with additional benefits; everyone is different, and adopting a one-size-fits-all approach to your engineering workforce and their rewards will only have a detrimental impact. In the current climate, organisations need to not only source new skills but also retain their existing talent for as long as they can.

Water employers must act quickly in order to properly staff projects related to AMP8. It’s not an exaggeration to say that this is one of the UK’s truly pivotal industries, and more focus needs to be placed on existing talent challenges in order to avoid major problems.

If you’d like to speak to our expert team about navigating this challenging environment, then get in touch.

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