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Bridging the utilities sector talent gap: the importance of workforce resilience

Understand the talent gap in the utilities sector, the need for workforce resilience to meet net-zero targets and to attract new talent.
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By Daniel Imbeault , 

Partner, Senior Director, Mercer UK

19/06/2025 · 6 minute read

The utilities sector is grappling with a host of pressing challenges. From striving to meet net-zero targets and embracing digital transformation to confronting a widening talent gap due to an ageing workforce, the industry faces an uphill battle. Attracting younger talent is crucial, especially as competition intensifies from other sectors vying for the skills essential for the future.

The workforce challenge is escalating rapidly. National Grid projects in the UK will need to fill 117,000 new roles by 2030 to achieve its net-zero goals. In fact, employers in the energy and utilities sector must attract and recruit a staggering 312,300 new individuals over the next six years—nearly 50% of the current workforce. Meanwhile, "skilled workers and leaders being enticed or driven away from the sector" ranks among the top 10 risks in the Utility Week–Marsh McLennan Risk Report 2025. 

This growth is driven by significant investment in the UK’s electricity, gas

and water infrastructure, the growing circular economy, and the ever-increasing demand for low carbon technologies by the public. Large-scale investments are being made, such as the £56 billion allocated under the New Plan for Water to modernise infrastructure and improve sustainability in the utilities sector.[1] [2]

The talent crisis: a growing risk for utility companies

Many utility company workforces are nearing retirement, with limited numbers of professionals with the right skills ready to replace them. Over 106,000 professionals are expected to retire in the next five years, the equivalent of a loss of 17% of the UK's utilities workforce.[3]

Younger workers frequently view the utilities sector as less appealing compared to more dynamic industries such as business, healthcare, and technology. Consequently, companies within the sector face challenges in retaining talent, as many individuals are drawn to employers offering greater flexibility, innovation, and a sense of purpose in their work. The sector faces cybersecurity, AI, engineering, construction, and sustainability-focused leadership shortages. One executive noted the difficulty in attracting staff to the water sector: "If the water sector is viewed as dirty, you're simply not going to get the skills and talent needed to deliver those investment programmes."

This skills gap poses a significant threat to operations, potentially delaying repairs and infrastructure upgrades whilst disrupting essential services. The repercussions could ripple through entire communities that depend on safe, reliable utilities, including critical institutions like hospitals and schools.

Meeting net zero and modernisation goals: the workforce challenge

Utility companies are investing billions of pounds in upgrading their processes and infrastructures to meet climate and regulatory targets. These projects require a skilled and resilient workforce.

Decarbonisation requires new systems, smarter operations, and increased digitalisation. Utility companies risk falling behind on climate commitments without skilled personnel—engineers, data analysts, and digitally competent technicians.

Take the water sector, for example. Ensuring a safe, sustainable water supply in a changing climate requires modernised infrastructure, digital monitoring, and hands-on asset management. All of this relies on specialist talent.

Companies in this sector also face shortages in external contractor capacity, increasing the delivery pressure. In the water sector especially, many are appealing price controls for AMP8, warning that funding is insufficient to secure the workforce needed to deliver planned projects.

The digitalisation shift: an urgent need for new skills

In addition to addressing an ageing workforce, utility companies should be looking to train their teams to work in new, tech-enabled ways. This includes managing AI-powered monitoring systems to understand and mitigate the cyber risks those same systems create.

Smarter infrastructure needs smarter technicians. Companies must recruit specialists who can design, monitor, and secure complex, data-driven systems. This shift changes how work is done across the board—from front-line roles to directors.[3]

Leadership must evolve to meet the demands of the future. Managers need to be digitally savvy, sustainability-focused, and adept at guiding teams through this transition. As Daniel Imbeault, Talent Strategy Partner at Mercer, emphasises, the sector must embrace skills-based career pathways, AI-driven workforce planning, and foster a culture of lifelong learning to remain competitive.

There is often a disconnect between management's perception of employee needs and the realities faced by non-managers. Successful organisations will prioritise adaptive leadership, cultivating environments that promote collective intelligence and transparency about AI's role, ensuring that all voices are heard and valued in the decision-making process.

Strengthening workforce resilience: attracting and retaining talent

Many professionals in data and cybersecurity are drawn to high-impact projects that offer purpose and career development. Redefining its image and adopting a unified message that shifts perceptions will help the sector attract newcomers and the next generation of workers.

Utility companies also need to improve the employee proposition. Workers, particularly younger generations, now expect flexible working patterns, wellbeing support, and clear progression pathways. Bridging the generational gap through knowledge-sharing and internal upskilling is equally vital.

Organisations must transition from rigid structures to flexible systems that optimise talent flow. This shift is essential for fostering agility and responsiveness in a rapidly changing landscape. Additionally, as technology advances, the demand for human-centric leadership becomes increasingly critical. This shift requires cultural change. Rigid job descriptions, unionised structures, and outdated work models have slowed agility. To remain competitive and attractive, the sector must evolve into a more flexible, collaborative, and future-ready workforce environment.

Our approach to workforce resilience

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Business Requirements / Work Design

 

What are the business imperatives and key business drivers?

Where should our talent efforts be focused?

Look at work design and define critical skills needs. 

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Talent Profile / Skills to Work

 

Profile: Who are they? (characteristics, experiences, background, interests, etc.).

Ecosystem: Where are they? (regions, universities, current employers, etc.)

Expectations: What are their aspirations?

Skills: What Skills do they need?

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Talent Gaps & Risk

 

Supply: How much talent will you have under specific assumptions?

My current Workforce profile (Internal Labour Market)?

Demand: Your future talent requirements.

What are the business risks of these gaps?

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Workforce Plan

 

Feasibility: Can I buy and/or build?

Strategy: Should I buy and/or build?

Logistics: How do I buy and/or build?

Translate into a short- and long-term workforce planning blueprint - 9 Bs?

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Audience Concerns/Story

 

What do our audiences care about most? / Preferences?

What is our employment deal?

How can we create a conversation that moves people and clearly state values? 

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Intersections/Implementation

 

What do we offer: program design, governance, experience map and HR digital strategy

How do we deliver: TIM / TOM and HR delivery model

Which channels will best achieve our goals?

Communication strategy / Branding

Marsh McLennan helps utility companies build workforce resilience through a range of targeted services, including:

  • Work design focuses on optimising organisational structures and job roles to mitigate workforce risks and enhance productivity.
  • Workforce planning and risk consulting for attraction and retention, including listening and persona design to tailor the value proposition.
  • Skills gap assessments and long-term strategic planning.
  • Workforce plans to fill gaps using our “9 B’s” model: Translate workforce gaps into a short- and long-term workforce planning blueprint
  • Reskilling and upskilling programmes to support digital transformation.
  • Mental health and employee wellbeing solutions.
  • Cybersecurity integration into workforce planning.
  • Risk mitigation plans to reduce operational disruptions.
  • Employee value propositions: Create an EVP and EX that spans the emotional, practical, and experiential aspects of working in the sector and for your organisation – build a compelling promise and deliver on it. ​
  • Workforce agility and cultural transformation strategies.

The talent gap represents one of the most significant risks facing utility companies today. Without immediate action, workforce challenges will undermine progress towards net-zero targets, stifle digital innovation, and heighten operational vulnerability. Organisations must prioritise strategic talent initiatives now to secure a sustainable and resilient future for the sector. The time to act is now.

1 Plan for Water: our integrated plan for delivering clean and plentiful water - GOV.UK

2 Our final determinations for the 2024 price review – Sector summary

3 Energy-Utilities-Workforce-Demand-Estimates-2024-30-Summary-v5_Cover-added.pdf

If you would like to discuss any topic raised in this article, please contact us.

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