The renewable energy brain drain: Why grads are leaving and how to retain young talent

Kris Coulthard is the Director and Recruiter at TalentFix, with over a decade of experience recruiting in the renewable energy and project services markets in the UK and Australia.

It’s no secret that the Australian renewable energy sector has a recruiting challenge.

A growing number of projects are being developed and delivered across the country, demand for professionals with industry experience has never been higher, and the industry’s hesitancy to consider non-local and non-industry professionals means that we find ourselves in a holding pattern, unable to find the talent we desperately need.

Projections by the Institute for Sustainable Futures indicate that to achieve 82% renewable electricity in the National Electricity Market by 2030, a tripling of the workforce is required - from 21,500 to 59,300 workers. ​ 

However, a lack of meaningful workforce growth means that organisations across the industry are competing for the same small talent pool of professionals. Amongst other things, this has resulted in significant increases in labour costs and long-term vacant positions, leaving the industry with a difficult question to answer.

How do we ensure the long-term sustainability of Australia's renewable energy talent pool?

The answer isn’t simple, but it is obvious. We ensure there are enough graduates coming through the ranks who can contribute to the growing sector long term. It’s not a silver bullet that will have a significant impact tomorrow, but in the long term, benefits will be realised.

In my experience, graduates come with about as much enthusiasm and drive to do good work as you’re likely to find. They’re academically strong, lack bad habits, and tend to commit to their employers, provided they are in an environment where they can learn, thrive and make a meaningful impact.

In the right environment, graduates can grow to become the next generation of expert renewable energy professionals developing and delivering the most significant projects across the country.

Unfortunately, the renewable energy sector is facing a young talent brain drain – graduates are being lured away from the industry by promising title changes and higher salaries in the traditional energy sector, civil, mechanical, or electrical engineering, environmental consulting, and even project management and financial analysis.

Culture, mentorship, trust and career development programs are vital components in ensuring the success and retention of graduates for any business.

Even more so in the competitive landscape of the renewable energy sector, where graduates are typically presented with new job opportunities every week once they have two to three years of experience under their belt. 

Culture is key

Organisations with strong cultural integrity tend to be able to hold on to their grads as they become more experienced. The development of graduates requires a significant investment of time and resources, one which any sane organisation would want long-term returns on. 

What’s more, the energy sector is not immune to workplace culture incidents; energy companies have been the topic of several notable public scandals in the past few years, including those at Rio Tinto, BHP, and Origin Energy.

A high-stress, long hours, and low autonomy environment might work in the short term but can lead to burnout and eventual churn of good graduates in the long run. 

Graduates need to be nurtured and, to some extent, protected as they hone their skills. Organisations that foster a culture of learning, trust and respect tend to struggle less to build and retain their teams.

Mentorship and career development plans

You’ll likely remember your favourite teacher and may still think about your first professional mentor, who believed in you when you were new to the industry. If you’ve been lucky enough to have one, you’ll know that the role of a committed mentor cannot be underestimated.

Graduates with a mentor have a significantly higher chance of sticking with their employer through their learning years and beyond. A trusting relationship with a mentor who promotes practical learning and development, as well as trust and autonomy, is a hugely important retention tool. 

A transparent career development plan is essential for graduates and tenured professionals alike. Graduates tend to be the most hungry and motivated group, who, given enough incentive and clarity around their own professional growth, will push to achieve exceptional things.

Regular development-focused one-on-ones with leaders and clear promotion criteria can help graduates to see ahead and will ensure they have the best chance of success within the business and industry.

Salary expectations

One of the biggest challenges associated with retention is the perceived market value that graduates typically get caught up in. They look sideways at their colleagues, hear stories about their peers, and can get the sense that they are underpaid.

I have daily conversations with young professionals in the renewables sector who are disgruntled about their current salary. More often than not, their perception of what they should be being paid is misaligned with the reality of the market.

Graduate salaries in Australia's renewable energy sector can vary based on role, experience, and location. For instance, the average salary for an engineer is approximately $112,500 per year, with entry-level positions starting at $75,000 per year. 

Still, employers need to ensure that their graduates are paid competitively compared to their peers and should take time to educate them on market salary trends so that they have realistic expectations of their earning potential at each stage of their career.

Loyalty is earned

Graduates present one of the biggest opportunities to the renewable energy industry. If growing organisations can set themselves up to be able to successfully attract, onboard, develop and retain graduates, they will more than likely also alleviate the pain that comes with the challenge of long-term team growth.

Instead of competing with your competitors for the same limited talent pool of industry professionals, you could be developing your own dedicated people who are loyal to your business and excellent at what they do. It just takes a bit of time.