Driving Program Maturity in an Uncertain Market with Strategic Workforce Planning

Organizations across industries continue to be impacted by economic and labor market fluctuations. In the energy and utilities sector specifically, spend levels across most organizations are down by 20-30%, which is affecting solution design and how programs are maturing. So how can organizations overcome these challenges while keeping costs low and driving program maturity in an uncertain market? In this blog post we’re going to share three proven strategic workforce planning methods to do so, including leaning on the contingent workforce, implementing skills-based hiring, and offering competitive benefits.

1. Utilize Contingent Workers and Private Talent Pools

Leaning on contingent talent is greatly beneficial as energy and utilities organizations work toward maturing their programs. The contingent workforce offers several advantages, including:

• Cost Savings: Contingent workers typically require fewer training costs as they have specialized skillsets and reduce the administrative burden of payroll management and other HR-related tasks when they are engaged through a staffing agency or as independent contractors.
• Scalability and Flexibility: Utilizing the contingent workforce empowers energy organizations to scale and adapt depending on labor market shifts or project needs, helping them to be more efficient with resource allocation.
• Specialized Skillsets: Contingent talent can bring highly specialized skills that aren’t available in-house, in addition to innovative ideas and approaches to problem-solving.

Unlock the full potential of your contingent workforce when you download our quick start guide.

Energy and utilities companies can also lean on more flexible strategic workforce planning strategies to mature their programs faster. One method to implement is direct sourcing, which involves building private talent pools from referrals, retirees and brand-attracted candidates, enabling companies to fill positions directly. This approach reduces reliance on external agencies, helping organizations lower costs by avoiding supplier markups and improving time-to-fill rates. Get expert guidance from industry pioneers on setting up your direct sourcing program for success in our white paper.

2. Implement Skills-based Hiring

As energy companies are reducing hiring, this can lead to critical skills gaps, especially in specialized areas. To effectively tackle this obstacle, energy companies can implement a skills-based hiring approach.

Skills-based hiring prioritizes a candidate's specific skills over traditional qualifications like degrees or job titles. Because the method focuses on identifying the abilities directly relevant to the role, employers can find the talent they need more effectively and even improve their workforce diversity. Understand the 4 critical steps for deploying a skills-based hiring approach in our blog.

Taking this approach can help drive program maturity by optimizing workforces, as it enables organizations to better understand and refine their blended workforce strategies. By identifying the essential skills needed at any given time, hiring managers can pinpoint roles that have become obsolete, allowing them to phase out job titles that no longer align with the business's priorities and create new ones that do. They’re also able to match employees in outdated roles with new positions that better suit their abilities and the company's current needs. A skills-based approach also results in promoting internal talent and improved retention, contributing to competitive differentiation. 

3. Offer Leading Benefits

Another strategic workforce planning tactic is providing workers with world-class benefits, which will also go a long way in driving program maturity and helping energy companies stand out among competitors.

Organizations can partner with an Employer of Record (EOR) to provide their contingent workforce with excellent benefits packages affordably, including:

• Paid Time Off
• Medical benefits
• Retirement options, and more

In addition, creating a supportive environment is also essential. Fostering this environment takes both tangible and intangible efforts from coworkers, leaders, and the organization as a whole. When new workers join, providing access to an onboarding coach, introducing them in team meetings, and having managers check in frequently can make them feel welcome. The first 30 days are crucial for retention, so early and regular engagement from managers is key to maintaining their interest and commitment.

Workers also feel supported when they receive actionable feedback, are invited to team-building events, and are informed about internal job opportunities. Networking and professional growth opportunities, such as educational resources, relevant training, and upskilling, significantly impact their willingness to stay long-term. Offering clear paths for advancement within the company helps workers feel valued and supported in their career development, further contributing to retention efforts.

Ongoing shifts are having an impact on the energy and utilities sector, but organizations can utilize proven strategic workforce planning to continue maturing their programs. By leaning on the contingent workforce, implementing skills-based hiring, and providing world-class benefits, energy and utilities companies can get ahead of competitors while keeping costs low and progressing toward their goals.

Understand how to drive program optimization and ensure scalability in the face of evolving workforce dynamics in our ebook, “Navigate Your Journey to Contingent Workforce Success.” 

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.