Energy companies face a tough hiring landscape for large-scale construction projects. Here's why:
To address these challenges, companies are shifting to proactive workforce planning, building pre-qualified talent pools, and using advanced analytics to predict staffing needs. Training programs, AI-driven recruitment tools, and partnerships with educational institutions are helping bridge the skills gap. Long-term strategies focus on retention through mentorship, career mobility, and safety-focused work environments.
The stakes are high: delays caused by labor shortages can derail billion-dollar projects. Companies investing in early hiring, robust training, and retention strategies are better positioned to meet growing energy demands.
Energy Construction Workforce Crisis: Key Statistics and Challenges
Energy construction projects bring challenges that go beyond traditional construction. These projects require a workforce skilled in areas like high-voltage systems, commissioning protocols, and navigating the regulations tied to mission-critical facilities.
Large-scale energy projects depend on a mix of white-collar and blue-collar professionals. Key management roles include project managers, commissioning leads, P6 schedulers, finance and legal experts, and owner's representatives who oversee internal operations. On the technical side, positions like construction managers, QA/QC inspectors, electricians, metal fabricators, operating engineers, and specialized energy technicians are essential. These roles are especially important for operations and maintenance. By 2030, the global renewables sector alone is expected to need an additional 1.1 million blue-collar workers for construction and 1.7 million for operational roles.
Digital expertise is also becoming a must. Workers with skills in building information software, artificial intelligence, robotics, 3D printing, and advanced data modeling are increasingly in demand. For instance, cloud computing skills have seen a 15% rise in demand, while software development needs have grown by 13% since 2019. Beyond technical expertise, soft skills like business acumen, value engineering, stakeholder management, and negotiation with subcontractors and local authorities are now critical for success.
| Skill Category | Specific Skill/Role | Growth in Demand (Since 2019) |
|---|---|---|
| Technical | Metal Fabrication | 40%+ |
| Digital | Cloud Computing | 15% |
| Digital | Software Development | 13% |
| Management | People Management | 77% |
| Management | Business Management | 41% |
| Stakeholder | Supplier Management | 20% |
Despite the need for these specialized roles, the industry faces a growing skills gap. This isn't just about the number of workers but finding people with the right expertise. In February 2024, the U.S. construction industry had 456,000 unfilled positions - the highest in two decades. Energy companies face even tougher challenges as they compete for workers skilled in areas like carbon capture and storage (CCS), hydrogen, wind energy, and nuclear power. While oil and gas skills often transfer to CCS and hydrogen projects, offshore wind requires more specific knowledge, such as maritime and turbine expertise. In the hydrogen sector, only 10% of the workforce has more than a decade of relevant experience. These shortages have real consequences: in mid-2021, 90% of U.S. general contractors reported project delays.
An aging workforce compounds the issue. The percentage of construction workers aged 55 and older has nearly doubled, rising from 11.5% in 2003 to 22% in 2023. Additionally, a quarter of the U.S. energy workforce is expected to retire or leave the industry by 2030.
On top of these challenges, logistical and regional factors make hiring even more difficult.
Energy companies often face hurdles in hiring for projects located in remote or high-risk areas. These sites, often in rural regions, can have limited housing and demanding travel requirements. When logistical details like housing and travel aren't communicated clearly, candidates frequently drop out of the hiring process.
"Deals have collapsed when travel expectations and housing arrangements were unclear."
– R. Lamonica, FootBridge
Competition for local talent is intense. For example, on the U.S. Gulf Coast, where LNG and power projects are concentrated, there's an anticipated shortfall of 45,000 to 50,000 craft workers. Energy companies aren't just competing within their sector - they're also vying with industries like data centers for the same labor pool.
"We're competing against the data center for labor. We're competing against the LNG terminals for labor. It's a huge challenge, and it's going to get worse."
– Michael Caravaggio, Vice President of Fleet Reliability, EPRI
To tackle these challenges, some companies are adopting creative solutions. In 2025, Burns & McDonnell opened a 14,000-square-foot Construction Academy in Pearland, Texas, to train workers for Gulf Coast projects through online assessments and hands-on evaluations. They also introduced mobile training units at project sites to speed up onboarding. Similarly, Bechtel partnered with Gdansk University of Technology in Poland to train engineers for the country's first AP1000 nuclear facility, slated for operation by 2033.
Energy sites - whether nuclear facilities, offshore wind farms, or high-voltage transmission lines - carry inherent risks, making safety a top priority. Insurers are increasingly scrutinizing whether companies have enough qualified staff, as worker shortages can lead to delays and lower-quality outcomes. Additionally, about 90% of candidates have exited the hiring process due to misalignment between their priorities and the employer's offer, emphasizing the need for clear communication about location and safety expectations from the outset.
Energy companies can't afford to scramble for talent once a project gets the green light. The most successful firms start building their teams months or even years before breaking ground. This approach helps avoid delays, keeps costs under control, and ensures the right people are ready when construction begins.
Instead of just posting job ads and waiting for applications, leading energy companies take a more proactive approach. They build databases of pre-vetted candidates well before a project gets final approval. Why? Because 90% of workers aren’t actively job hunting but are open to new opportunities. Some companies even set up talent "war rooms" - dedicated spaces where HR teams, data scientists, and project managers work together to create flexible hiring processes. These teams track candidates’ qualifications, availability, and location preferences, leading to a much higher success rate. For example, sourced candidates convert at a rate of 1 in 72, compared to 1 in 152 for traditional applicants. Companies that invest in these talent pipelines report returns on investment as high as 250%, thanks to improved retention.
"If you're filling key roles right before mobilization, you're already late." – R. Lamonica, FootBridge
This proactive strategy is now evolving further, with firms using advanced tools to predict staffing needs with greater accuracy.
Predicting workforce needs has become more precise, thanks to advanced analytical models. Energy companies now align project activities with timelines and use productivity benchmarks - like the engineering hours required to approve one drawing - to calculate exact staffing requirements. The contracting model also plays a huge role in determining team size. For instance, a $1 billion project under an EPC lump sum turnkey contract might need 70 people, while an owner-integrated model for the same project could require 250.
In January 2024, a global mining company managing a $15 billion capital expenditure portfolio over a decade used advanced analytics to forecast its workforce needs. The results showed they needed to triple their current owner-team size, leading to a complete overhaul of their hiring strategy and the creation of a central project management hub. Similarly, a major oil and gas company applied these methods to a $10 billion program and found they could demobilize 25% of their team during the final stages, redeploying those employees to other projects in their portfolio. This kind of "bird's-eye view" prevents common mistakes like last-minute hiring. For projects scheduled to begin in early 2026, firms should aim to have teams in place by mid-2025.
Once workforce needs are forecasted, the next priority is preparing the available talent.
With 25% of the U.S. energy workforce expected to either retire or leave by 2030, internal training programs have become a crucial way to address talent shortages. Companies are going beyond traditional six-to-twelve-month onboarding processes by using advanced simulations. These tools allow workers to practice complex tasks - like laying digital pipes - in virtual environments before they ever set foot on-site. This reduces the time it takes for workers to become productive, cutting it down from months to just weeks.
In 2025, Black & Veatch launched its "Engineering Technician Accelerator" program, a three-to-six-month initiative combining hands-on training with AI-powered modules in tools like AutoCAD and Revit. This program not only transitions new graduates into full-time roles but also helps existing employees gain new skills for emerging markets. Black & Veatch also introduced "BV Ask", a proprietary generative AI chatbot that more than 5,000 engineers worldwide use to access shared engineering knowledge and best practices.
"Our goal is to build not just infrastructure, but a resilient, future-ready workforce." – Jennifer Divito, President, BV Operations
Effective training programs don’t just focus on technical skills. They also emphasize soft skills like negotiation, conflict resolution, and stakeholder management. For example, an Asian engineering and construction firm created a training academy with a "field and forum" approach. This method alternated classroom learning with hands-on field assignments, involving over 45 project managers and supporting a company-wide transformation. For energy companies tackling complex infrastructure projects, this blend of technical expertise and leadership training is proving to be a game-changer.
Energy companies face a tough challenge: finding qualified candidates in a shrinking talent pool. With over 80% of executives in the sector reporting difficulties in filling positions, staying competitive means moving beyond traditional job postings. Companies are adopting smarter, tech-driven recruitment strategies to attract the right talent.
Technology is reshaping how energy firms hire. Tools like Applicant Tracking Systems (ATS) and Customer Relationship Management (CRM) software have become essential for organizing candidate data and improving HR communication. But the game-changer is artificial intelligence (AI), which is speeding up recruitment and making it more efficient.
Analytics are now helping companies predict full-time employee (FTE) needs and plan mobilization schedules, allowing them to identify and engage candidates before critical roles even open up. Video conferencing and technical screening tools enable companies to assess global talent remotely, cutting down on travel time and costs.
Once hired, new employees benefit from remote onboarding tools and AI-powered learning modules. These tools help them get up to speed quickly while learning established engineering practices. AI platforms like Black & Veatch's "BV Ask" even allow recruits to tap into decades of company knowledge without needing to track down a senior expert.
| Recruitment Phase | Technology/Method Used | Primary Benefit |
|---|---|---|
| Planning | Analytics-based modeling tools | Accurate FTE requirements and mobilization plans |
| Sourcing | ATS, CRM, and platforms like LinkedIn | Centralized data and proactive talent sourcing |
| Interviewing | Video conferencing and technical screens | Efficient global candidate assessments |
| Retention | Generative AI (e.g., BV Ask, Copilot) | Easy access to knowledge and career development |
| Onboarding | Remote onboarding and AI learning tools | Faster integration and skill alignment |
Beyond tech, energy firms are tapping into specialized networks to find the right talent.
Generic job boards are no longer enough. Energy companies are turning to industry-specific networks where skilled professionals are more likely to be found. These include professional associations, conferences, and niche platforms. The goal is to build a "talent ecosystem" by collaborating with educational institutions, nonprofits, workforce development agencies, and government partners.
AI-driven platforms are also becoming a go-to for hiring specialized talent. These tools connect projects with professionals, often using blockchain to verify certifications like Global Wind Organisation (GWO) safety standards. This makes it easier to hire specialized teams - such as welders, engineers, or SCADA technicians - who can move seamlessly between projects. For companies managing large infrastructure projects, this flexibility is crucial.
Social media is playing a bigger role, too. Companies are now using structured strategies to monitor competitors, refine their employer brand, and engage passive candidates.
Still, attracting top talent isn’t just about where you look - it’s also about how your company is perceived.
With rising construction wages over the past five years, competitive pay is just the baseline. Energy companies are focusing on creating a well-rounded employee experience to stand out as top employers.
Many now offer signing bonuses, health and wellness programs, and resources for managing stress. Long-term investments in education, like tuition assistance and apprenticeship programs, are also gaining traction. For example, in May 2024, Turner Construction Company earned an Award of Excellence for its workforce development efforts, which included grants and tuition support to address labor shortages.
Flexibility is another major draw. Remote work options are now common in roles like SCADA engineering and grid analysis. Companies are also offering flexible career paths that span both traditional and renewable energy sectors. For projects in remote or high-risk locations, clear communication about travel expectations and arranged housing is critical to attracting candidates.
Upskilling is becoming a key benefit as well. Employees are encouraged to develop "green skills" like hydrogen electrolysis or carbon capture technologies while on the job, increasing their value and loyalty to the company. Studies show that employees who feel included are six times more likely to stay and five times more likely to challenge outdated practices. A strong safety culture and mission-driven messaging further enhance a company’s appeal as an employer of choice.
To ensure steady growth and meet future demands, energy companies are focusing on long-term workforce strategies. With around 400,000 energy sector employees set to retire in the next decade, the emphasis is shifting from short-term hiring to building a workforce that can support decades of infrastructure development. These strategies aim to provide stability across projects, ensuring companies are prepared for the challenges ahead.
In energy construction, leadership style has a direct impact on long-term employee retention. Companies that emphasize purpose-driven leadership - rather than focusing solely on profits - tend to perform better. For instance, in February 2024, a European subsidiary of a global oil and gas company launched a phased EVP (Employee Value Proposition) strategy centered on decarbonization and digitalization. Using the Organizational Health Index, the leadership team identified the need for flexible working hours and greater gender diversity. Almost two years later, the company achieved a top-tier EVP ranking within the industry and an 80% CEO approval rating.
Adopting a skills-based approach is another way to retain top performers, increasing retention rates by 98%. By moving away from rigid job titles and aligning employees with tasks that match their skills, companies can keep their workforce engaged. Internal mobility programs also play a key role, allowing employees to explore new roles within the organization. This reduces the likelihood of them seeking opportunities elsewhere. Engaged employees are 50% less likely to leave their jobs compared to those who feel disengaged.
Mentorship programs further strengthen retention efforts. Structured rotations lasting 18–36 months, covering areas like estimating, safety, and project management, help new hires find roles that suit them best while fostering long-term loyalty. Beyond technical training, developing soft skills is essential for navigating the complex stakeholder relationships involved in modern construction projects. As one CEO of a global engineering and construction company put it:
"After all, it's our people who deliver the strategy".
Safety culture also plays a crucial role in retaining employees. Companies that prioritize safety through comprehensive onboarding and ongoing systems see fewer incidents, which enhances their reputation as desirable employers. When employees feel safe and supported, they are more likely to stay. Measuring these retention factors is essential for refining future strategies.
Energy companies are increasingly turning to analytics to guide workforce planning and improve decision-making. Metrics like Quality of Hire (QoH) provide a clear picture of recruitment effectiveness. QoH scores combine factors such as new-hire ramp-up time, 90-day retention rates, manager satisfaction, and cultural fit. Additionally, process efficiency metrics - like time-to-fill, cost-per-hire, and source ROI - help companies identify the most effective recruitment channels. For example, a global oil and gas company used analytics to manage headcount for a $10 billion program involving onshore and offshore projects. This data-driven approach allowed them to demobilize 25% of their team during the final delivery stages, efficiently reallocating those professionals to other projects.
Monitoring broader workforce trends is equally important. In February 2024, the construction sector reported a total separations rate of 4.5%. Comparing company-specific data to industry benchmarks can reveal whether retention strategies are effective. With over 80% of executives struggling to fill open positions, companies that can measure and refine their talent strategies gain a competitive edge. Together, these approaches address immediate hiring needs while building a workforce capable of sustaining mission-critical energy projects for the long term.
Energy companies need to move beyond reactive hiring and embrace strategic workforce planning. With significant investments on the horizon and a wave of retirements looming, waiting until mobilization to fill critical roles is no longer an option. As FootBridge aptly states: "If you're filling key roles right before mobilization, you're already late".
This shift calls for modern, data-driven recruitment practices. The top-performing companies in the energy sector are blending analytics-based workforce planning with advanced recruitment tools and long-term retention strategies. They're building pre-qualified talent pools, tapping into industry networks, and establishing training academies that align with goals like decarbonization and digital transformation. This proactive, data-focused approach is quickly becoming the norm for managing complex, multi-year projects.
Investing in strategies like skills-based recruitment, internal mobility programs, and fostering strong safety cultures pays off significantly. In fact, companies that prioritize these areas are 98% more likely to retain high-performing employees. These efforts ensure that critical projects are supported by the right leadership and technical expertise at every phase.
Specialized recruitment support plays a crucial role here. iRecruit.co helps energy companies secure top-tier talent - construction managers, project executives, and technical specialists - well ahead of mobilization. By offering pre-qualified candidate pools, efficient hiring processes, and deep expertise in high-stakes energy construction, iRecruit.co enables companies to build the teams that drive tomorrow's infrastructure. Whether you're handling a single large-scale project or managing a multi-billion-dollar portfolio, partnering with a specialized recruiter can make the difference between costly delays and seamless project execution.
Energy companies are tackling the skilled labor shortage by broadening their recruitment strategies. They're not just looking for traditional roles like engineers and project managers anymore. Now, there's a growing focus on bringing in talent with skills in areas like digital technology, data analysis, and software development - key expertise for managing today’s energy infrastructure. Beyond hiring, companies are also doubling down on internal training programs to ensure their teams are ready to handle the challenges of digitization, automation, and sustainability.
To make these efforts stick, many companies are emphasizing inclusive workplace cultures and offering employees opportunities to upskill. With nearly 25% of the U.S. energy workforce expected to retire by 2030, these approaches are essential to bridging the talent gap and ensuring the industry has the workforce it needs to execute large-scale projects successfully.
Energy companies employ a variety of strategies to keep employees engaged and committed, especially in remote or high-risk locations. One major focus is strengthening the employee value proposition by offering competitive salaries, clear career advancement opportunities, and creating a workplace environment where everyone feels valued and respected.
Post-COVID, flexible work options have gained importance, alongside initiatives that promote diversity, equity, and inclusion. Companies are also prioritizing targeted training programs to equip employees with the skills needed to navigate the challenges of these demanding roles. These efforts not only reduce turnover but also boost job satisfaction, helping employees feel supported and connected, even in tough environments.
Technology is reshaping how the energy industry approaches recruitment and workforce planning, offering data-driven strategies and predictive tools that make the process smarter and more efficient. With advanced digital solutions like AI and workforce management platforms, energy companies can pinpoint skill gaps, predict future talent needs, and simplify hiring for large-scale projects. These tools ensure that companies have the right people in place when they need them - an essential advantage for high-stakes capital construction projects where timing is everything.
Another major benefit of technology is its role in training and upskilling the workforce. As the industry faces challenges like an aging workforce and rapidly changing demands, automation and digital learning platforms are stepping in to help workers transition into new roles and master emerging technologies. This is especially crucial as the sector moves toward cleaner energy and more complex infrastructure projects. By leveraging these tech-driven solutions, the energy industry is building a workforce that’s more adaptable, skilled, and ready for the future.
