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Net-zero automotive future: critical skills and workforce strategies

This article highlights the UK's automotive industry's shift to net-zero, emphasising the need for upskilling, attracting diverse talent, and innovative workforce strategies.

15/07/2025 · 4 minute read

As the UK automotive industry moves towards net-zero targets, it is essential to rethink workforce strategies. Upskilling current employees and attracting new talent are essential to meet the demands of a sustainable future. Contact our experts to explore how innovative workforce solutions can support your transition to a greener automotive sector.

The UK's acceleration towards achieving net-zero targets places the automotive sector at the forefront of this transition. Central to this shift is the move from traditional internal combustion engines (ICE) to electric vehicles (EVs), along with advancements in battery manufacturing and the development of a more sustainable supply chain. However, technological change alone is insufficient. Realizing the promise of a greener future requires a transformation in workforce skills. Upskilling current employees and attracting new talent will be essential to meet the evolving demands of tomorrow's automotive industry.

The drive toward net-zero and skills evolution

The transition to electric vehicles, growing focus on sustainability, and rapid technological advances are reshaping what it means to work in automotive manufacturing.

Today's vehicles are no longer mechanical machines—they are, in many ways, "computers on wheels". This shift drives demand for new and evolving skillsets, including EV diagnostics, battery development, software engineering, and sustainable supply chain practices.

Traditional roles on the production line, historically focused on mechanical systems, give way to ones requiring a greater understanding of electronics, coding, and data. Mechanics, for instance, must now learn to service EV batteries and digital systems instead of replacing valves and exhausts. Similarly, managing end-of-life battery recycling and ethical raw material sourcing creates new operational and compliance-focused roles across the value chain.

Upskilling for a greener future

Investing in widespread upskilling will ensure a smooth and inclusive transition. Apprenticeships and bespoke training programmes are being deployed to equip workers with the capabilities they need in this new landscape.

Organisations like the Society of Motor Manufacturers and Traders (SMMT) are working with Original Equipment Manufacturers (OEMs) and supply chain partners to develop accessible, relevant training initiatives. These efforts not only support reskilling but also help small and mid-sized suppliers—who may lack the resources of larger manufacturers—stay competitive and compliant.

However, scale and speed are key concerns. With the industry facing increasing skills shortages and an ageing workforce, upskilling must happen rapidly and inclusively. Collaboration with local colleges and industry bodies ensures that training aligns with technological advancements and future job requirements.

The talent challenge: attracting a new generation

Demographic trends reveal a pressing challenge: a predominantly male, ageing workforce paired with a slow influx of young talent.[1] Many employees have spent their entire careers in one plant or company, and their deep but focused expertise doesn't easily translate into the new world of EVs.

Attracting the next generation of engineers, technicians, and supply chain professionals will require a rethink of how the sector is presented to potential recruits. Young people today are motivated by purpose, flexibility, and wellbeing.[2] The industry must position itself not just as a viable job market, but as an exciting, values-driven industry that's solving real-world sustainability challenges.

Initiatives such as the 30% Club aim to increase female representation in the sector, particularly in production and engineering roles, by making the industry more inclusive, family-friendly, and future-focused.[3] From tailored benefits and redesigned uniforms to targeted outreach in schools and universities, the goal is to break traditional perceptions and build a diverse talent pipeline.

Rethinking the employee value proposition

To remain attractive to new entrants and experienced professionals, you should be looking to innovate your employee value proposition. This includes offering hybrid roles for eligible positions, embedding sustainability and purpose into your company values, and fostering a culture of continuous learning.

Think about offering pathways for career mobility, training workers across multiple roles on the production line and developing leadership opportunities for underrepresented groups. For example, programes like STEM Returners help mid-career professionals—often women returning from career breaks—re-enter the workforce through structured, supported placements.[4]

Equally, employee wellbeing is increasingly being linked to retention and performance. Tools like the Health Risk Modeller, developed by Mercer Marsh Benefits, can provide insights into your workforce's demographic and health profiles.[5] This data-driven approach allows your organisation to tailor support around physical health, mental wellbeing, financial education, and neurodiversity—key to maintaining engagement and productivity across diverse employee groups.

Conclusion

The UK automotive industry is at a pivotal point. Achieving net-zero goals will not be possible without an equally ambitious workforce strategy. This means equipping today's workforce with tomorrow's skills, attracting diverse new talent, and adopting inclusive, resilient workplaces that reflect future values.

You must act by embedding sustainability into your operations and investing in training and wellbeing.

If you would like to discuss any of the topics raised in this article further, please contact us.

Sources:

[1] https://www.peninsulagrouplimited.com/resource-hub/equality-diversity/how-to-improve-gender-equality-in-the-auto-industry/

[2] https://www.peoplemanagement.co.uk/article/1909835/young-people-prioritising-purpose-wellbeing-careers-survey-finds

[3] https://30percentclub.org/

[4] https://stemreturners.com/

[5] https://www.mercer.com/en-gb/solutions/health-and-benefits/benefits-consulting/healthcare-analysis/

Our people

Monique Wright

Monique Collins

Automotive Industry Practice Leader, Mercer Marsh Benefits UK

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Kasia Lipinska

Marsh UK Industries - Automotive & Manufacturing Industries Leader

  • United Kingdom

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