Summary
The energy sector is becoming competitive amidst technological changes and market trends. Consequently, organizations need to adopt strategic approaches to retain their talented staff. As the energy market shifts towards sustainability, the number of professionals with skilled capabilities is decreasing since many companies prefer retaining them to recruiting new talent. SAP is one of the organizations that has mastered the art of talent retention and strategic positioning. Therefore, SunEnergy can emulate SAP’s strategic approaches to gain a competitive edge in the energy sector.
Successful organizations have adopted various productive strategies in the increasingly competitive market. While many companies focus more on producing sustainable energy products, they need to balance their brand image and customer value. The latter can be achieved by producing and designing high-quality, affordable products and services (Kharub, Mor, and Rana, 2022). However, creating an excellent brand image also involves increasing the value of customers and employees.
SAP Case Example
SAP is one of the most successful multinational organizations in terms of employee and customer values. Unlike many organizations focusing on maximizing shareholder value through client retention, SAP has mastered employee retention strategies. At SAP, the employees are trained to increase their and their organization’s values (Clark, 2019). The organization has reaped much from improving its employee capacity as a tech company. SAP’s achievement in five different categories during the Employer Brand Management Awards in 2022 is insightful.
Employer of Choice
Employees prefer to work with organizations that deeply understand their personal needs rather than those that pay well. SAP has strategically positioned itself in the competitive marketplace by integrating employee needs with those of the organization. As an employer of choice, SAP supports its employees and their outside interests (Clark, 2019). The firm allows its employees to develop their careers to their liking while emphasizing leaving a legacy. Furthermore, a broad range of resources is available for the employees. The positive working environment attracted many employees to SAP.
Branding and Organizational Image
Branding and organizational image speak much about an organization. SAP’s purpose of helping the world run better by improving people’s lives is manifested by its approaches to human resource activities. The organization has taken part in various brand management activities around the world. SAP runs talent events that leverage innovative concepts to showcase its technology and organizational culture (Wang, 2019). The promotion of SAP branding’s impact on different markets attracted an excellent image to its guests and clients.
Application to Sun Energy
SunEnergy can adopt SAP’s strategy of positioning itself strategically in the competitive world through talent development and retention. The organization can adopt mechanisms that improve its employees’ lives outside work (Clark, 2019). Allowing them to develop their careers through resource allocation can help.
The company should extend the sustainability theme to its employees’ lives (Wang, 2019). Moreover, SunEnergy can initiate global competitions and branding activities that showcase innovative sustainability ideas. These approaches will improve its talent retention and brand image at the global level.
Changing Labor Market
Technological developments and social needs are revolutionizing the UK’s energy sector. Many UK homes are considering shifting to cleaner forms of energy, such as solar and wind energy. Although fuel is the country’s main source of energy, the majority of UK residents are switching to electric cars. The recent global energy crisis and consequent increase in the price of diesel, kerosene, and other sources of energy have ignited the need for clean and readily available sources of energy (Kurien & Mittal, 2022). Therefore, the energy sector is experiencing tight and loose labor market trends, requiring strategic decisions by key players such as SunEnergy.
Tight and Loose Labor Market Trends
Tight labor market trends occur when there are fewer job seekers than available jobs. For instance, there is an increased need for individuals with innovative skills to develop energy-efficient products. Moreover, many UK energy companies need engineers who specialize in renewable energy sources.
Meanwhile, loose labor market trends occur when there are more job seekers than available opportunities in the market (Carranza et al., 2022). For example, careers in traditional energy sources are flooded. In response to the loose and tight labor market trends in the UK, many organizations are adopting strategies that maximize their value and competitive advantage in the market.
Energy Companies Decisions
Retention Strategies
While some energy companies experience skills shortages, some have them. Consequently, there is a need to retain employees whose skills are in demand due to the tight labor market trends (CIPD, 2022). Many organizations are considering increasing employee wages to retain them. Additionally, individuals with in-demand skills are being promoted to higher ranks with increased job benefits such as allowances and better mortgages (Carranza et al., 2022). The retention strategies adopted are meant to make the employees more comfortable at their workplaces.
Recruitment Methods
The UK energy sector is constantly on the lookout for innovative and creative talent. The organizations have adopted recruitment methods that make them outstanding in the market compared to other employers (Briggs et al., 2022). Many organizations are focusing on diversity and inclusion through globalization.
Consequently, they have a diverse pool of candidates from which they can select the best talent. Additionally, the firms are promising better wages and working conditions for talented candidates (CIPD, 2022). While tight labor market trends lead to better working conditions, loose ones lead to improved retention strategies.
Skills Needed in the Energy Sector: Stakeholders’ Roles
Government
The UK government plays several roles in ensuring that the skills needed in the energy sector are met. The government, through relevant ministries, invests in education by funding research institutions such as colleges and universities (CIPD, 2022). Additionally, the government supports internships and apprenticeships for university graduates in its various sectors that deal with renewable energy sources (Briggs et al., 2022). Furthermore, the government intervenes by putting less restrictive measures against foreign investors who are interested in enhancing research skills among employees in the energy sector.
Employers
Employers have taken various steps to ensure that their employees have the skills needed in the competitive energy sector. Many organizations have adopted employee development and skills training activities (Briggs et al., 2022). Employers invite professionals in various fields to impart the demanded knowledge to their employees.
Moreover, employers support and sponsor their employees to higher educational institutions. Competitive organizations are sponsoring their employees for master’s and doctoral education. The different approaches taken by the organizations have ensured that on-demand talents are retained in the market.
Trade Unions
Trade unions play some roles in ensuring that their employee members have competitive skills in the energy sector. The unions, through collective bargaining, negotiate for better pay and working conditions. Consequently, the employees gain sufficient resources for skills enhancement.
The unions are also involved in offering certification and professional courses to their member employees (Li, 2022). The UK trade unions have been on the frontline of advocating for the government to set quality academic standards for various professions. Many UK employees have joined trade unions to enjoy the benefits.
Motivational Issues and Management Style on Turnover Rates
Motivational Issues
Employees need the motivation to work extra hard and become proactive at work. Employees who are not motivated are disengaged and disconnected from organizational values and objectives in their respective industry. Consequently, there are increased turnover rates since the majority of them are open to joining organizations that appreciate and motivate them (Burke & Ceo‐DiFrancesco, 2022). Companies such as SunEnergy can adopt employee motivation activities such as increased pay and routine tokens of appreciation for a job well done.
Management Style
Organizational management style plays an important role in ensuring that employees and other stakeholders are working towards the organizational mission and vision. Managers who are demanding and without charisma make it uncomfortable for the employees to perform their best. Therefore, companies with poor management styles are more likely to lose talent. Meanwhile, those with effective leadership styles, such as transformative and transitional, attract many skilled and talented employees (Burke & Ceo‐DiFrancesco, 2022). UK organizations need to address management style issues to reduce the turnover rate.
Talent Retention and Development
Training and Development Role
Training and development play a central role in retaining an individual and a group of employees. For an individual, the training and development can be tailored in such a manner that they meet their unique needs. For example, an employee who is interested in leadership can be subjected to leadership and management training (Mikołajczyk, 2021).
Moreover, employees interested in computers and other technology skills can be given scholarships to advance their knowledge in the field. For instance, the organizational human resource team can benefit from sessions that address challenges faced in the labor market. Training and development for an individual may require fewer resources than for a group of employees.
Workplace Characteristics
Workplace characteristics are multidimensional since they involve aspects such as organizational culture, resource allocation, and leadership, among others. The characteristics can be made in such a manner that they relate to an individual employee’s needs. For instance, the physically challenged employee would benefit from an office structure that supports their movements (Babapour, Hultberg, and Bozic, 2021). Similarly, an organization can meet the needs of Muslim workers by setting aside a specific room for them to pray while at work. Individual needs are unique to a particular employee, while group needs involve a set of common beliefs and culture of a given number of employees.
Building and Supporting Talent Pools
Coaching and Mentoring
Coaching and mentoring can be used interchangeably since they both involve monitoring employee activities and helping them correct their mistakes. Coaching and mentoring help build and support different talent pools in various ways. Coaches and mentors help identify and nurture talents among employees. Additionally, coaching and mentoring are important in building relationships for the effective imparting of skills and knowledge (Sweeney & LeBoeuf, 2023). Employees with productive coaches and mentors have better performance rates than those without.
Performance Reviews
Employees are subject to errors and should correct them if directed and taught how to improve. Performance reviews are used to identify the weaknesses and strengths of different talent pools (Sweeney & LeBoeuf, 2023). Moreover, upon reviews, employees are given feedback that helps them improve on their weaknesses. Following feedback from performance reviews, organizations can set goals and objectives for a specific talent pool. Therefore, employers should integrate performance reviews for talent support and building.
Importance of Diversity
Diversity involves recruiting employees from different cultural backgrounds and with different skills. SunEnergy can benefit from diversity in two major ways that are crucial for building a supporting talent pool. Diversity promotes innovation and creativity since the employees have a wide range of perspectives on the problems facing them (Stahl, 2021).
Additionally, diversity helps employees better understand different cultures and traditions. Consequently, there are improved peer support activities among employees. SunEnergy must integrate diversity in its human resource activities.
Dysfunctional Employee Turnover Costs
Increased competition in the energy sector has led organizations to lose valuable employees. Dysfunctional employee turnover is the loss of skilled and valuable employees due to organizational or labor market issues. Direct costs of dysfunctional employee turnover include those incurred for replacing and recruiting new employees (Kharub, Mor, and Rana, 2022).
Organizations advertise for new vacant positions and spend much time ensuring that potential employees fit organizational needs. Meanwhile, indirect costs are the impacts of turnover on a company’s productivity, culture, and other routine activities. Organizations are focused on improving their work environment to retain their employees.
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