The lack of succession planning in the energy industry is a long-standing issue and is often self-inflicted. It’s regularly talked about but rarely addressed until it reaches crisis point.

In an industry shaped by volatility, political pressures and changes in workforce career expectations, companies have to think differently. Succession planning needs to be a strategic priority rather than an afterthought.

Why succession planning falls short

The energy industry’s endless cycle of boom and bust, which began with the oil and gas industry, is seeping into the renewable sector. In oil and gas, the pattern has historically been one of recruitment drives and wide-ranging training schemes in good times, followed by lay-offs and cuts to entry-level programs when things get tough. In these periods, the responsibility for recruitment and training often falls to smaller, tier-two service companies. But they might lack the resources to invest in long-term people development. We discuss how energy companies can attract and retain staff here.

What’s not being said: the hidden risks of doing nothing

Failing to succession plan has serious consequences:

Don’t let the brains leave the building: when experienced workers walk out the door for the last time, their expertise, insights and best practices often go with them. Don’t let that happen.

Internal politics and retirement plans: succession plans can be derailed if people nearing retirement resist being replaced or reconsider their exit timelines.

A shrinking talent pipeline: potential recruits are increasingly drawn to sectors such as renewables, motorsport, semiconductors and EV technology. Offshore oil and gas jobs such as production workers, subsea construction, ROV pilots and survey specialists remain difficult to fill due to high training costs, among other things.

Collaboration is critical

Operators and service companies must work together to ensure talent continues to move through the system. Shared investment in skills, responsible contracting terms that aren’t just about the lowest price, and joint workforce planning could help build more resilient supply chains and talent pipelines. Companies must make the most of workforce data to understand where skills gaps exist and how they can fill them.

Supporting successful succession planning

Through JAB and our executive search brand Ramsay Black, we help the energy industry make informed and insightful talent decisions in three key areas:

Mapping the market

Detailed intelligence on competitor team structures, talent clusters and compensation trends give employers the insights they need to plan ahead. For example, we used our industry-leading data acquisition technology to map the decommissioning talent landscape for an operator in the US and UK.

Proactive headhunting and pipeline building

Internal HR functions rarely have the time to conduct large-scale market outreach. We identify key talent early, build succession pipelines and ensure our clients have access to candidates before roles become critical.

Support across your career

From C-suite transitions to early-career hiring and apprenticeships, we help companies develop comprehensive workforce strategies geared to long-term business plans. Find out more about succession planning here.

Planning for the future means making sure you have the right people in place at the right time. Don’t leave it too late.