One year on from our original publication, we’ve further explored how Human Capital trends have progressed.
Our “New Norm for Human Capital” series delves into what trends need to, or have become, the norm.
CEOs and business leaders have for too long thought in terms of labour cost rather than human capital. Energy and Natural Resources (ENR) companies face a rapidly changing strategic context in which access to the right talent will separate those who thrive from those who survive (or worse).
To deal with digitisation, decarbonisation, changing expectations and post-COVID new-norms, ENR companies will need to manage their workforce as a form of strategic capital to be maximised rather than operating cost to be minimised. Tools exist today to understand and develop human capital assets. To the detriment, too few organisations do this well.
In our analysis, three persistent themes continue to shape the talent landscape.
- Digitisation and the ESG agenda will continue to drive new roles and the need for new skills.
- Competition for talent amongst industries will converge on key STEM and related skillsets.
- Employee expectations and employee power in the post-COVID era will both normalise at higher levels than before.
How effectively CEOs and leaders in ENR companies deal with these shifts today will determine their ability to access the human capital required to realise their strategic ambitions.
Digitisation and decarbonisation
Technology and ESG are impacting jobs in ENR companies. Diffusion of digital technologies elevates ‘soft skills’ and decision-making capabilities in all jobs as routine and rule-based tasks are systematised.
Decarbonisation, and broader ESG priorities are seeing some jobs decline and other new workforce priorities emerge.
Talent competition convergence
ENR companies face headwinds attracting the talent they need. The attractiveness of ENR jobs to prospective talent has declined over the last 10 years. Roles in these industries are (rightly or wrongly) perceived to be unstable, dangerous, or part of the problem contributing to global warming.
Demand for STEM talent necessary to drive digital transformation and energy transition in ENR, is strong across the entire economy. This means ENR companies are competing for talent with organisations in consulting, manufacturing and healthcare. The cost to compete for talent in the open market will be higher than the cost of developing skills from within.
Post-COVID new normal
Employees and candidates are increasingly exercising their power in the labour market. As vacancies surge they are demanding more of employers. Flexibility, purpose and developmental opportunities are at the top of their list of demands.
Compounding this, Australia is reliant on skilled migration from overseas to meet ENR industry skill needs. COVID-19 disrupted the flow of international talent but there is also evidence that more can be done to maximise the value of the diverse talent already available.
Download the report
To find out more and understand some practical steps for how your organisation can better manage human capital, download our report and contact us to arrange a time to connect.
New Norm for Human Capital series – One year on
One year on from our original publication, we’ve further explored how Human Capital trends have progressed.
