Closing the Green Skills Gap

The gap between green talent supply and demand is growing fast. If current trends continue, approximately 50% of jobs in the green economy will lack qualified candidates [1].

Why is there a growing skills gap?

Companies are treating the symptom, not the cause.

The accelerating demand for green talent, driven by the widespread adoption of sustainable technologies such as air source heat pumps and Electric Vehicles (EVs), is outpacing the current supply of workers with green skills. However, rather than addressing the cause and investing the time needed to build long-term solutions (such as comprehensive training programmes), organisations are addressing this imbalance by resorting to a ‘quick-fix’ of hiring those who already exhibit some green skills [2]. As a result, the desirable talent pool remains small, driving up costs, reducing diversity, and hampering innovation.

To reduce the skills gap, the industry needs to shift its focus from poaching existing skills to developing new talent. By funding training programmes and apprenticeships, employers can motivate and upskill their workforce in transferable green skills while also creating a more inclusive route into green roles. Organisations that build a steady, diverse pipeline of talent will reduce long-term hiring costs and spur innovation as they begin to close the green talent supply-demand gap.

How to attract a skilled workforce/green talent

1. Don’t follow policy. Drive it.

Government policy remains the key driver for many companies to upskill and recruit green talent. However, given the inconsistency of these policies, employers should use their power and influence to make changes without waiting for government impetus.

By investing early in green skills, employers can position themselves as industry leaders, creating a competitive advantage and helping them to attract both new and diverse green talent.

2. Remember that only 7% of employees receive formal green skills training [3].

To attract green talent, businesses need to expand their training programmes to include opportunities for workers to upskill and acquire green skills and accreditations.

Prospective employees will be drawn to organisations who demonstrate investment in their teams’ career development and future job security.

3. Broaden the talent pool.

The green skills gap presents an opportunity for employers to engage underutilised demographics in the talent market.

Despite women only comprising one third of green talent worldwide [1], they have been rapidly entering the green job market at a rate of 12.3% (versus 9.1% for men [4]).

Gen Z are expected to make up over one third of the workforce by 2050. 30% comment that their current employers don’t offer green skills training, yet 78% express an interest in learning new skills [1].

In the UK, approximately 23% of working-age adults are disabled, however their employment rate is only 53% compared to 82% for non-disabled individuals [5]. Through job matching and soft skills initiatives, organisations can advance the inclusion of underrepresented groups [6]. Recently, Jaguar Land Rover evidenced that the process-oriented focus of EV work makes it far more accessible to a wider range of people in the talent pool [7].

4. Engage in cross industry collaboration.

In response to the growing demand for green talent, companies are increasingly collaborating with the education sector. For instance, University College Birmingham launched The Birmingham Battery Manufacturing Skills Pathway (in collaboration with industry leaders such as Microsoft, Jaguar Land Rover and Delta Cosworth) aiming to equip “the battery manufacturing workforce with the expertise needed to power a sustainable future” [8].

Through similar initiatives, businesses can ensure a steady pipeline of green talent by creating flexible career pathways, and broadening opportunities for learning and innovation.

How can Oaklin help?

Not only will investing early in green talent position your organisation as a sustainability leader, it also gives you a competitive edge in attracting a diverse and skilled workforce.

As an award-winning independent management consultancy, Oaklin brings expertise and innovation to workforce planning. We partner with HR teams and business leaders to identify and close skill gaps, helping you build a future-ready organisation.

To learn more about how Oaklin can help you, reach out to our team.