Location, Not Salary, Is Becoming the Biggest Hiring Headache in Energy Sector

The battle to recruit skilled talent in the energy sector is changing fast, and surprisingly, salary is no longer the biggest sticking point.

New research from Newman Stewart suggests that location is now the number one obstacle facing employers trying to fill on-site energy roles, as businesses grapple with shrinking talent pools and changing workforce expectations.

According to the executive search firm, 59% of employers said location was their biggest hiring challenge when recruiting for on-site positions. Cultural fit came second at 28%, while pay was cited by just 11% of respondents.

The findings paint a clear picture of a sector under pressure. While many industries have embraced hybrid and remote working, energy and industrial employers often have no choice but to require staff on-site. The problem? Increasingly fewer candidates are willing to relocate or commit to long daily commutes.

And even when businesses do find technically qualified applicants prepared to be on-site, there is another challenge waiting: making sure they fit the culture of the organisation.

For employers delivering large-scale infrastructure, engineering and energy projects, team cohesion and workplace culture are becoming just as important as technical ability. Companies are looking for people who can integrate quickly, collaborate effectively and contribute positively in high-pressure environments.

The result is a recruitment landscape that is becoming more competitive, more expensive and considerably more time-consuming.

Newman Stewart Managing Director John Tilbrook says businesses can no longer rely on salary alone to attract top talent.

“We are seeing a clear shift in hiring dynamics,” he explained to That's Business. “Location is now one of the most significant barriers to attracting and securing talent, often outweighing salary considerations.”

He added that many energy and industrial roles simply cannot adapt to hybrid working models, making the mismatch between employer expectations and candidate lifestyles even more pronounced.

Tilbrook believes employers need to think more strategically about how they position opportunities, from project appeal and career progression through to company culture and the overall working environment.

The findings are likely to resonate across sectors facing similar recruitment pressures, particularly manufacturing, engineering and infrastructure, where physical presence remains essential.

As workplace priorities continue to evolve, the message from the energy sector is becoming increasingly clear: if businesses want the best people on-site, they will need to offer more than just a competitive pay packet.

https://newmanstewart.co.uk

UK energy sector must diversify leadership amid geopolitical uncertainty and net zero challenges, Say Experts

As the UK energy sector faces growing strain from geopolitical instability and the accelerating demands of net zero delivery, the industry must urgently diversify its leadership portfolio. 

That’s according to the executive search firm, Newman Stewart.

The specialist has warned with Government energy plans relying on rapid progress across nuclear, renewables, grid expansion and distributed generation, the sector faces an increasingly complex operating environment. 

With the UK energy system also entering a period of significant volatility due to global supply risks, shifting regulatory frameworks, and sustained pressure to decarbonise, energy leaders are facing unprecedented demands.

However, according to Newman Stewart, leadership pipelines in energy remain narrow, limiting access to the breadth of skills and perspectives now required. The skills shortages are well-documented, with recent research from the International Energy Agency (IEA) revealing that more than half of businesses are facing recruitment bottlenecks. These are also being felt at leadership level, which is putting future strategic growth at risk.

Consequently, diversification of leadership, including greater representation of women in senior and plant leadership roles, is no longer a cultural aspiration but a strategic necessity. As energy assets become more technologically complex, politically sensitive and publicly scrutinised, leadership teams must be equipped to manage risk, uncertainty and long-term transformation in parallel.

John Tilbrook, Managing Director of Newman Stewart, told That's Business: “The challenges facing the UK energy sector today are becoming increasingly complex and volatile. Geopolitical uncertainty and net-zero commitments have created a demand for leaders who can navigate ambiguity, engage diverse stakeholders, and make complex decisions under pressure. Relying on the same leadership profiles will not deliver the resilience the system now requires.”

“Diversifying leadership involves strengthening the sector’s ability to adapt. When leadership teams draw from a wider range of experience and perspectives, organisations are better equipped to manage risk, innovate, and maintain delivery during disruptions.

"In the context of the UK’s energy plans, this is a business imperative rather than a side issue. Having recently celebrated International Women’s Day amid growing gender disparity and increasing leadership skills gaps, I believe there must be a renewed focus on developing genuinely inclusive leadership pipelines that reflect the scale and complexity of the challenge ahead.”

https://newmanstewart.co.uk