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Why Energy Companies Are Losing Skilled Workers to Other Industries

Why Energy Companies Are Losing Skilled Workers to the Automotive, Semiconductor, and Plant Engineering Industries and What Steps They Can Take to Stay Competitive in the Race for Talent

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The energy transition requires more qualified professionals than ever before. At the same time, many energy companies are losing precisely this group to other industries. The reason for this is no mystery: the automotive, semiconductor, and plant engineering industries are actively recruiting for the same types of candidates. In the spring of 2025, more than one-third of all shortages of STEM professionals (science, technology, engineering, and mathematics) were in energy and electrical trades.

The problem, therefore, is not a general shortage of skilled workers, but rather targeted competition for the same qualifications. For companies, this means a different starting point than just a few years ago. It is no longer enough to post job openings and wait for applications. Those who do not actively position their target profiles against competing industries will lose them to competitors who communicate more loudly and clearly. But what is behind this, and what concrete steps can energy companies take?

Three Industries, One Talent Pool

The automotive, semiconductor, and plant engineering industries are looking for exactly the same types of professionals who are also urgently needed in the energy sector: These include power electronics (the branch of electrical engineering that deals with the conversion and control of electrical energy, for example in inverters or charging stations), embedded software (software that is permanently integrated into technical devices and directly controls their functions), as well as automation and electrical engineering.

In the automotive industry, experts in BMS (Battery Management System, an intelligent system for monitoring and protecting battery cells), inverter development, and software-defined vehicle architectures are in high demand. OEMs (Original Equipment Manufacturers, i.e., manufacturers that produce products under their own brand names) and Tier 1 suppliers (direct suppliers to an OEM, one level below the end-product manufacturer) offer fast product cycles, clear roadmaps, and international career paths.

The semiconductor industry is experiencing a global investment boom driven by the CHIPS Act (the U.S. legislation designed to strengthen domestic chip manufacturing, which is complemented by similar programs in Europe) and European funding programs. Power semiconductors, i.e., semiconductors used in drives, power grids, and photovoltaics, are considered a strategically critical technology. Studies show that in core fields such as mechatronics and electrical engineering, up to 80 percent of open positions could not be filled with suitably qualified candidates between 2021 and 2023.

In plant engineering, automation technology, SCADA (Supervisory Control and Data Acquisition, a software system for remote monitoring of technical plants), and PLC (Programmable Logic Controller, an industrial computer for automating machines) are in high demand. These are virtually the same qualifications as those required in the energy sector. Often, it is well-funded small and medium-sized enterprises with international project assignments that are particularly attractive.

For job seekers, the following applies: E-mobility, semiconductors, and Industry 4.0 are widely promoted in public discourse as fields of the future. The energy transition is at least as technologically challenging, but it is discussed in these terms far less frequently.

What Weakens Energy Companies in the Competition for Talent

In our consulting practice, we regularly observe that energy companies are losing visibility rather than substance. Four factors play a key role in this.

Perception problem: Innovation projects such as smart grids (intelligent power grids that coordinate generation, storage, and consumption through real-time digital control), Power-to-X (a technology for converting excess electricity into other energy carriers such as hydrogen), or large-scale battery storage are rarely promoted as attractive fields of work in the tech industry. Externally, the narrative is dominated by images of regulation and infrastructure. This is a communication problem, not a substantive one.

Organizational Structure: Large utilities and grid operators operate under regulated revenue models and have long planning cycles. Engineers from more agile environments therefore often feel that decision-making autonomy is limited and the pace of implementation is slow.

Compensation: Energy companies offer solid compensation based on collective bargaining agreements. However, without systematic benchmarking against the automotive and semiconductor industries, compensation packages for specialists in the fields of power electronics, embedded software, or system architecture often appear uncompetitive. Bonus and stock incentive programs are more common in other industries.

Lack of Tech Narratives: The automotive industry has e-mobility; the semiconductor industry has supply security. Both topics are prominent in the media and emotionally charged. The energy sector, on the other hand, often communicates in abstract terms. More precise storylines could include, for example: Grid stabilization is essential for the expansion of renewable energy sources such as solar and wind. Equally important are real-time control in smart grids and load forecasting supported by AI.

From the applicants' perspective, one simple question ultimately makes the difference: Where are my skills truly needed?

What Energy Companies Can Do Specifically

There are options for action, and they do not depend on the size of the company.

Employer branding through specific projects: It’s not about statements like “We’re shaping the energy transition,” but rather about which engineers worked on which smart grid pilot projects and what technical problems they solved. It’s about showcasing technological depth, not abstract goals.

Compensation benchmarking for in-demand roles: A systematic comparison with the automotive and semiconductor industries for roles in power electronics, embedded systems, and automation is not a luxury but a basic requirement. It’s the total package that counts: continuing education, project responsibility, and international experience are crucial.

Clear career paths: technical expert roles, project management, and system architecture. Specialists and managers must be able to see how their careers are progressing. Long-term senior roles with no prospects are a silent reason for employees to leave.

More agile structures: Innovation labs, cross-functional collaboration, and taking end-to-end responsibility for defined technology projects are also possible in regulated environments. Technical decision-making autonomy is a key factor in employee retention.

Build a talent pipeline early on: Through partnerships with universities, dual degree programs, and the involvement of students in real-world transformation projects, companies can reduce their dependence on the external market, where competition is most intense.

For job seekers, these criteria are increasingly serving as guiding principles when choosing an employer and are also openly discussed during job interviews.

The competition for talent will not ease up

In the coming years, poaching pressure from the automotive, semiconductor, and plant engineering industries is likely to increase. New semiconductor factories are being built, the e-mobility strategy is being accelerated, and plant engineering is becoming increasingly digitized. In regions with a high concentration of industry, such as Bavaria, Baden-Württemberg, and Saxony, where semiconductor clusters are emerging, competition for electrical engineering and software professionals is already particularly intense.

At the same time, the energy sector’s project pipeline is growing: grid expansion, hydrogen infrastructure, sector coupling (the integration of electricity, heat, and mobility via shared technologies), and edge computing (where data processing takes place directly at the grid components rather than centrally in the cloud) in grid control are creating a broad range of highly complex tasks. In our industries, we observe that companies that make these projects visible and actively recruit for them noticeably improve their appeal compared to competing industries.

The window of opportunity exists, but it is slowly closing. Those who invest now in visibility, fair compensation, and clear career paths will secure a competitive edge in the race for precisely the talent profiles that are crucial to the success of the energy transition.

FAQ

Are all energy companies losing the same number of skilled workers to other industries?

  • No, companies with visible innovation programs, a digital focus, and clear career paths are significantly better at retaining skilled workers.
  • Municipal utilities and regional providers that actively communicate specific transformation projects, such as local storage solutions or smart city initiatives, generally perform better than traditionally structured organizations.

Can smaller energy companies keep up in the competition for skilled workers?

  • Yes, but not primarily because of the salary.
  • Companies that specialize in specific technology areas such as grid automation, sector coupling, or municipal energy storage and clearly communicate this can be more attractive than a large corporation for certain job profiles.
  • Key advantages here are the direct decision-making processes and transparent career paths.

Does the brain drain also affect executives?

  • Yes, particularly leadership roles in the areas of transformation and technology, such as head of network digitization or technical director in the energy solutions division.
  • Such profiles are especially sought after by industries that are growing rapidly and offer greater scope for innovation.
  • Filling these positions is correspondingly challenging.

What role do international career opportunities play in choosing an industry?

  • Global companies in the automotive and semiconductor sectors play a significant role, as they often offer overseas locations and international projects.
  • Energy companies operating in Europe or worldwide, such as those involved in offshore wind projects or cross-border grid initiatives, can specifically highlight this aspect in their employer branding communications.

Recruiting with BESTMINDS

If you are looking for qualified and motivated specialists and executives for your company, we can support you with our specialized network. Especially when it comes to highly sought-after candidates in the fields of power electronics, embedded software, and automation technology, we understand the market from both perspectives: the energy sector and competing industries. For over 15 years, the recruitment consultants at BESTMINDS have been filling vacancies in the medical technology, healthcare, life sciences / pharma, energy / utilities, and IT / media sectors with a wealth of expertise and dedication. We find the right candidates for you in a fair, loyal, and discreet manner. Contact us for a no-obligation initial consultation so that we can fill your vacancies quickly and effectively.

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