Less than 1 per cent of science, technology, engineering and maths (Stem) graduates in the UK enter a career in utilities. Against the backdrop of billions of pounds of capital investment in the UK utilities sector, this is a worrying trend. So why do graduates have a diminishing appetite for utilities and what can be done about it? We surveyed some recent Stem graduates and here is their perspective.
When deciding to study engineering degrees, many of the graduates spoken to already had no intention of joining the utilities sector. One said: “Many of my peers chose engineering because they thought it would make their CV attractive and give them the opportunity to pursue a wide range of careers. They weren’t really considering the power sector because they thought it would provide limited opportunities for career progression.”
To secure the future workforce, the sector needs to collaborate and engage more in the classroom to raise its profile. One way of doing this is to partner with schools and teachers. In aerospace, for example, the big manufacturers are encouraging their senior executives to join school boards to help increase Stem take-up, as well as build enthusiasm about engineering as a career choice. Rhona Miller, head of maths at Harris Academy Bermondsey, agrees. She says: “As teachers, it isn’t easy for us to understand and convey to students what engineering really is without utilities engaging with us and bringing an engineering career path to life with examples from their companies.”
Utilities are particularly well-placed to talk about the positive impact graduates can have as employees in the sector, given that they will be at the forefront of sustainability and climate change initiatives. This is especially relevant because the younger generation wants a sense of satisfaction from its work, and a belief it is doing the right thing . Young engineers could be involved in reducing energy consumption in homes and businesses through smart metering or developing renewable energy sources for the future. These exciting challenges would be attractive to young students, who are increasingly fascinated by technology.
In contrast to countries such as Germany, India and Canada, where the engineering profession is highly regarded, here in the UK the perception can be quite different. A study by the Royal Academy of Engineering found that in the UK, people most frequently associate engineering with construction and mechanics – basically, fixing things – as opposed to design and innovation. Is it surprising, therefore, that utilities rely increasingly on a flow of graduates from outside the UK? With curbs on immigration, it will become more difficult for utilities to recruit from abroad.
Our graduates’ perception seems to be that utilities need to do much more to recruit graduates than just participating at university careers fairs. When asked to describe the utilities sector, the same words resurfaced – “dull”, “ageing”, “male-dominated” (see feature, page 14) and “not people-facing”. Utilities cannot afford to leave graduates to imagine what a career in the sector is like. They must be out in the higher education marketplace, engaging as creatively as their competitors. New and enticing strategies used by financial and professional services firms include exclusive networking dinners with recent joiners and senior level staff, CV clinics and industry quizzes with prizes ranging from internships to digital devices.
While establishing a strong on-campus presence is vital, recruiters and representatives must also master their ability to engage effectively through an extensive array of channels, most importantly social media. Where are the younger generation having their conversations? Where are they spending a lot of their time? To increase the contact points with graduates, utilities will have to become more adept at putting themselves in the world of social media that graduates and schoolchildren live in.
Despite the fact that most Stem graduates leave university with a strong set of core skills, several graduates said they did not feel competent to pursue a career in engineering. A recent graduate explained: “I considered applying for a role in the sector but most companies were incredibly demanding and specific about the skills they required. I didn’t feel that I was the ready-made expert they were looking for.”
With the gap between supply and demand of suitable graduates widening, it is crucial for utilities to reassess which skills are fundamental to the role and which non-core skills can be developed through training programmes and on the job coaching. Moreover, a chief executive at a recent PwC roundtable on the future utilities workforce said: “We’ve got so much knowledge in our industry, yet we find it very difficult to pass that knowledge through the organisation.” The industry urgently needs to address this issue, because a large proportion of the current workforce will leave the sector within the next decade.
Graduates also said they thought a career in utilities would require them to specialise and become experts in particular skills areas when they joined a company. It is no wonder, then, that many of the younger generation, who like choice and keeping their options open, see the sector as one of constrained choices. Again, utilities need to be asking themselves if requiring specialism early on is vital. If not, then introducing a rotational aspect to the graduate programme that gives variety and choice on specialism could be attractive.
For UK graduates and prospective students, tuition fees are a major concern, with figures from the Organisation for Economic Co-operation and Development showing that UK student tuition fees are the third highest in the world. Add to this the uncertain labour market and inevitably hard cash is becoming more of a focus for graduates. From our conversations, students looking for a good pay package tend to regard the utilities industry as one of low pay, low development prospects and little support. One graduate said: “I joined a utilities company when I graduated but left after two years. I used to look up at my boss who had done the same job for years. I didn’t see the opportunity for quick promotion.”
Utilities should be offering more enticing packages that are more tailored to today’s graduates. This could include spot recognition schemes, gym membership or language classes. But more important are the intrinsic rewards around career development, mentoring and time off for vocational work that speak directly to today’s graduates. The demise of final salary pension arrangements, which once gave competitive advantage, makes this even more important.
With pay levels in financial services falling, Stem graduates who may have been attracted to the City in the past are now increasingly looking for a career that will offer a better work-life balance and enable them to make a positive contribution. Now is absolutely the time for utilities to develop an employee proposition that will attract and retain this scarce talent pool.
Laura Manson-Smith is a partner in PwC’s energy and utilities practice and Nennia Orji is a PwC consultant. Both are Stem graduates
This article first appeared in Utility Week’s print edition of 9 March 2012.
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