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AMP8 readiness: Is there enough depth in the supply chain to support ambition?

Published: 3 October 2024


As we approach April 2025, Asset Management Period 8 (AMP8) is the core driver of everything on the industry’s to-do lists, with many items underlined in shades of red. But the real challenge is two-fold: the obvious challenge, and the one that lurks beneath.

The obvious challenge

  • Driven hard by recent headlines, pollution control is high on the list. Addressing root cause of failures and enhancing the quality and speed of response and recovery are critical. Tough conversations with agricultural, urban, and transport polluters will have to happen.
  • Achieving new targets is expensive. Consumers are stretched financially, so it’s not feasible to pass on cost through bills. The water industry instead must explore new technologies, adopting the BATNEEC approach of ‘best available technology not exceeding excessive cost’. Sustainable infrastructure choices are also part of this but will take time to deliver savings.
  • Addressing regional specificity – with some areas a bigger challenge than others for various reasons – has thrust data-driven approaches into the limelight. Real-time data monitoring will be key from April 2025.

Bring these necessary improvements into the context of an ageing infrastructure that’s coping with a growing population, rapid urban development, and longer periods of wetter weather, and the challenge becomes real. But that’s not the whole picture.

What lies beneath: the skills shortage

The water industry must deliver on all the above in exacting timescales, but does it have the people to do it? According to The Future Water Association, 27% of the workforce will retire in the next decade leaving the sector to recruit or retrain 48% of the current workforce. That represents a whopping 277,000 vacancies over the next 10 years – there’s trouble ahead if we don’t act now.

  • Talent pipeline: The water industry needs to attract young talent. Currently, less than 8% of the sector is aged under 24, while some 63% have over 10 years of experience. These numbers reveal an ageing workforce that isn’t attracting succession talent.
  • Focus on tech recruitment: AMP8 has created urgent need for digital transformation, at a time when such skills are increasingly scarce in the sector. We need to either build a pool of developing talent that can respond to shifting skills needs, or source skilled people from other industries – preferably both.
  • Positive sector promotion: Let’s face it, water only hits the headlines when something has gone wrong, skewing public perception. Other sectors, like oil and gas, are pretty good at claiming column inches when they make breakthroughs towards net zero. The water industry must do two things: improve strategic self-promotion and continue to promote positive work on climate change (a concern hard-wired into most young professionals).
  • Capture imagination: 75% of water engineers value the visibility of their projects when considering a new job opportunity, and it seems we’re not yet harnessing this. If we can positively associate water projects with the national sustainability agenda, they can become immediately attractive to young professionals whose values and career aspirations are closely aligned.
  • Understand what’s important to people: 45% of survey respondents cite pay as the leading factor in their priorities. However, the numbers also reveal that within this, pay is most important to those with 10+ years of experience, whereas less-experienced engineers place value on a holistic recruitment proposition, with flexible working and the sustainability agenda being key motivators.
  • Slow, stop, and reverse the ‘brain drain’: 70% of respondents are actively considering work in other sectors, notably oil and gas, nuclear, and renewables. There are higher profits in other industries, potentially impacting pay and career trajectory. The water sector needs to think creatively about how to nurture and reward talent, alongside improving employer branding and shifting public perception, too.
  • Intelligent recruitment: Workers are not just motivated by their pay packets, but by a complex tapestry of job satisfaction, opportunities for innovation and CPD, trust in their management, and alignment with personal values. They’re motivated by how their job ‘looks’ to the public around them, and they care about the reputation of their employer. They want to feel like the job they do is improving themselves, their community, and the environment. And crucially, these values shift throughout their career journey and must be reflected in responsive recruitment.

Attracting and retaining talent

What are the practical elements the water industry can implement to attract and retain talent?

Develop a robust talent pipeline

Building a strong talent pipeline is crucial for ensuring the long-term success of any industry.

One effective strategy is to create apprenticeship and internship programs specifically targeting high school and college students. These initiatives not only provide practical experience but also help spark interest in the sector early on.

Partnering with universities to offer scholarships and research opportunities in water-related fields can further enhance this pipeline, attracting students who are passionate about environmental science and sustainability.

In addition, establishing mentorship programs that pair experienced professionals with new hires fosters a supportive environment that accelerates growth and knowledge transfer.

Emphasise technology and innovation

To attract tech-savvy talent, companies should highlight their digital transformation initiatives and cutting-edge projects in job postings.

Offering training programs in emerging technologies such as artificial intelligence (AI), data analytics, and smart water systems not only enhances employee skills but also positions the company as an innovative leader. Additionally, creating innovation labs or hosting hackathons can further attract individuals eager to contribute fresh ideas, making the organisation a hub for technological advancement.

Improve industry image and promotion

The water industry plays a vital role in environmental sustainability, but this isn’t always well-communicated.

Launching targeted marketing campaigns that showcase the sector’s positive environmental impact can significantly improve its public image and attract eco-conscious talent. Participation in career fairs and STEM events is another great way to raise awareness about the diverse career opportunities within the water industry. Collaborating with influencers and utilising social media platforms to reach younger audiences can boost the industry’s appeal, making it more relatable and attractive to the next generation of professionals.

Enhance employee value proposition

Attracting and retaining top talent requires offering more than just a job; it’s about providing a complete employee value proposition.

Offering competitive salaries, particularly for experienced professionals, is key. But it’s equally important to provide flexible working arrangements and initiatives that promote work-life balance. Additionally, developing clear career progression pathways and professional development opportunities ensures employees see a future within the company, which can significantly boost morale and reduce turnover.

Focus on sustainability and purpose

More than ever, employees are seeking purpose-driven careers, and the water industry has a unique opportunity to meet this demand.

Companies should communicate the sector’s role in addressing climate change and other environmental challenges, emphasising how employees can make a meaningful impact. Promoting internal sustainability initiatives and offering opportunities for staff to engage in community outreach or environmental projects will further solidify the organisation’s commitment to both its employees and the planet.

Improve retention strategies

Retention is just as important as recruitment.

Conducting regular employee engagement surveys and acting on the feedback ensures that employees feel heard and valued. Recognition programs that reward innovation and high performance can also play a major role in retaining talent, as employees appreciate acknowledgment for their contributions. Creating cross-functional teams and offering job rotation programs can keep work engaging and provide employees with a broader skill set, contributing to their overall job satisfaction.

Diversify recruitment efforts

A diverse workforce brings in fresh perspectives, and one way to achieve this is by actively recruiting from other sectors.

Professionals from different industries often bring unique skills and approaches that can benefit the water sector. Implementing blind recruitment processes helps reduce unconscious bias and increase diversity within the organisation. Moreover, offering returnship programmes for professionals who are re-entering the workforce provides another avenue for tapping into an underutilised talent pool, while promoting inclusivity.

By implementing these strategies, water companies can create a more attractive and engaging work environment that appeals to both young professionals and experienced workers, helping to build a stronger, more diverse, and innovative workforce that is prepared to meet future challenges.

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