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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Harold Hamm has a problem. The US shale oil magnate has felt compelled to donate millions of dollars to fund an energy institute at Oklahama State University, such is the disinclination of the younger generation, concerned by climate change, to work in the oil and gas industry. Fossil fuel companies are not alone. A range of sectors that young people may deem unpalatable for environmental, ethical or other reasons — but which are still critical to the economy — are struggling to attract the future talent they need.
Extractive industries face concerns about sustainability. Young people have long had ethical qualms about defence manufacturers. Logistics companies and chemicals makers, which need young talent in out-of-the-way towns, are struggling to hire for geographical reasons. Healthcare and teaching are perceived as underpaid and overworked. Farming and agri-food industries are seen as offering poor working conditions and limited career prospects.
This makes life even more difficult for companies already facing a global skills shortage that has been made worse by crackdowns on immigration in major economies. Manufacturing and production, operations and logistics, IT and data, sales and marketing and engineering are among technical skills in short supply; 75 per cent of employers report difficulty filling roles.
Surveys of sentiment show younger hires are attracted to employers whose corporate purpose aligns with their values, but are also more inclined to take lifestyle choices into account when choosing their place of work. Many executives deride the “snowflake” generation. But young people, who cannot rely on the job security and perks previous generations took for granted, argue with some justification that they have a right to be choosy about their employer.
Executives and headhunters say that not only are many industries losing talent to glitzier sectors such as tech, but students are not taking the “right” degrees needed to address skills shortages — from civil engineering to radiography. Companies are missing out on the best and brightest from the get-go.
One way to gain an edge in securing the next generation of employees is the same as it has always been: offer better terms, from higher pay to learning opportunities on the job, particularly as living costs rise. But companies may also need to market themselves more effectively, at secondary schools and particularly on university campuses (although some fossil fuel employers have been banned by careers services). Many students are unaware of the breadth of career opportunities available. Scholarships, work experience and graduate schemes all help.
Careful crafting of messages is important. Companies need to explain better why their industries matter to society. While the world needs a greener energy system, we will remain highly dependent on fossil fuels for years to come. Russia’s war in Ukraine has reminded everyone about the imperative of a strong defence sector and military. Accelerating population growth is intensifying the pressure on food production.
To change perceptions, oil companies have touted their technological prowess. Mining companies proclaim themselves to be at the heart of the green transition. But the messaging must be backed by genuine change. Young people will struggle to put faith in companies that have a history of being poor stewards of assets, environmental polluters and exploiters of natural resources and communities, unless they can provide demonstrable evidence that they have changed their standards and behaviour. Crafting the right message is key, but it only works on a foundation of trust.
