Why a skills-based strategy is vital to achieving operational goals in the power and utilities sector

In a time where operational efficiency and execution are more important than ever, skills management should be front of mind for utilities and power sector players argues Kelly Hunter of Kahuna Workforce Solutions.

As the global community aims to achieve net-zero emissions by 2050, the power and utilities sector—an integral part of the global infrastructure—sits at the forefront of achieving this mission. The International Energy Agency explains that meeting this goal requires a 20% global increase in electricity usage over the next decade. In the United States alone, Princeton research reports that electricity transmission systems will have to expand by 60% by 2030, and then possibly triple by 2050.

In addition to increased electrification efforts, organisations are navigating the modernisation and decarbonisation of the grid, preparing for extreme weather conditions and grid resilience, integrating digitisation and generative AI tools, and working to maintain affordability for customers, all while grappling with massive skills gaps and shortages across the industry.

In a global study across industries, Expleo found that of the energy and utility leaders surveyed, 83% reported they had under-invested in the technical skills of their employees and 39% reported a skills shortage as a top threat. As organisations invest in massive infrastructure enhancements and increase operational service offerings, the skills required of frontline employees will continue to evolve rapidly, widening the gaps. Skills are an enabler of operational execution, but a lingering skills gap will be the barrier.

So what can be done?

Organisations need to invest in their workforces, and more specifically, in skills-based strategies. This is critical to bridging the gap between existing operational capabilities and those needed to drive innovation and support business in the future. A skills-based operational strategy begins by outlining a standardised framework of existing customer requirements, business processes, regulatory compliance, and critical job roles.

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This framework provides transparency and alignment across the organisation, serving as a guide for current and future initiatives. Traditionally, businesses manage this data through files, folders, Excel spreadsheets, or HR systems. However, organisations prioritising efficiency and effectiveness are digitising this data in skills management platforms designed specifically to handle the complexities of the utility sector’s operating environment, while producing validated skill insights that guide strategic decision-making.

Identify skills gaps and strategically train and hire to close them

Skills gaps are increasingly affecting organizational capability and performance across the utilities sector and will continue to do so as operations evolve. A focused investment in skills development is a necessity for gaining critical insights into what skills exist, which skills are needed, and how strategic training or hiring practices can be put into place.

Skills data not only provides these insights into how the business can address immediate operational needs but also establishes clear direction for employees on their upskilling or reskilling journey. Targeted plans ensure that training isn’t misdirected and dollars aren’t wasted, a scenario that can lead to significant inefficiencies and resource drain. This streamlined, data-driven approach helps quicken operational readiness as the business evolves and helps retain talent driven towards transparency in professional growth and career advancement.

PwC explains that upskilling is about more than just providing access to training. It’s about identifying the most valuable skills for the future, finding and supporting the individuals who will excel in their roles, and creating the right employee experience.

Skills management helps to create a holistic training and development strategy for upskilling, reskilling, or hiring, if necessary, to provide a roadmap for employees and the organisation that aligns current capabilities with future demands. Bridging the gap between training and operational execution becomes essential, ensuring the available individuals are fully capable of performing their responsibilities.

Embed safety into the internal and external culture of the business

In an operating environment where a mistake can be costly in lives or dollars, it’s critical individuals are not only aware of or trained in the skills required for their role but truly capable of performing those skills on the job site. Skills management is essential here, offering granular insights into employee skills, compliance, and on-the-job training.

Integrating skills and training data with scheduling and risk assessment platforms ensures the most qualified individual is deployed to the job site, reducing risks for health and safety incidents and ensuring individuals maintain safety standards. Embedding safety deeply into the culture of the business—both internally among employees and externally in the eyes of customers—utility organisations can prove their commitment to compliance and reliability, even while changing operations.

Operate and execute efficiently and reliably

For utility organisations, operational efficiency and execution have always been fundamental priorities. However, with the growing emphasis on achieving net zero objectives and ensuring the grid’s resilience, these priorities are more necessary than ever.

Skills management is a critical enabler of this, arming decision-makers with the right insights to deploy the right resources for the job the first time around. In all dispatch situations, but especially in crises, deploying the right individual enables a quicker, more reliable service delivery, mitigates unplanned costs, and reduces downtime.

As the utility sector faces unprecedented transformation and strives towards a net-zero future, a skills-based strategy is vital to achieving operational goals. Skills management helps organisations navigate the current and future states of the business, and using skills data as a guide enables organizations to build a more skilled, capable workforce, ensure safety and compliance, and execute efficiently and reliably.

About the author

Kelly Hunter is the Director of Oil & Energy Practice at Kahuna Workforce Solutions where she manages a portfolio of clients across oil and gas, energy, and field services. Her focus includes establishing meaningful partnerships across the energy value chain, directing go-to-market strategies, and driving customer success with skills-based solutions that support digital transformation.