Back to BlogHow energy leaders can scale talent without sacrificing compliance
The energy and resource sector is undergoing a period of rapid transformation — and with it comes a new set of talent and compliance challenges. According to McKinsey, the global installed capacity of solar and onshore and offshore wind projects is set to quadruple between 2021 and 2030 — and finding the right people to power these projects won ‘t be easy.
Hard-to-fill roles, remote locations and a growing demand for specialised skills are all contributing factors to the growing talent crunch. And at the same time, energy companies operating across borders must navigate a complex compliance landscape — from worker classification risks to local labour, tax and visa regulations.
In this article, we’ll take a closer look at the key challenges facing energy companies in 2025 and beyond. We’ll also explore practical, forward-looking solutions that can help these organisations scale their teams while staying compliant and competitive in an increasingly demanding market.
Understanding the challenges facing energy sector leaders
Here are some of the most pressing challenges that companies in the energy sector will face in the coming decade — keep reading to learn how to overcome these hurdles.
The talent crunch in energy infrastructure
According to the International Energy Agency (IEA), global energy employment hit 67 million in 2022 — a 3.5 million increase since before the pandemic. Over half of this growth came from five sectors: solar PV, wind, electric vehicles, heat pumps, and critical minerals mining. Solar PV alone added 4 million jobs.
Clean energy job growth is outpacing available talent — and the gap is growing. McKinsey estimates the renewables sector will need 1.1 million additional blue-collar workers to build wind and solar plants, plus another 1.7 million to operate and maintain them by 2030.
While reskilling workers from sectors like oil and gas will help make up some of the shortfall, renewables growth surpasses fossil fuel job declines. That means talent shortages will be a long-term challenge for the sector. Companies will need creative strategies to stay competitive.
Hard-to-fill roles and remote site challenges
The challenge the energy sector is facing isn’t just about finding people, but finding the right people. As demand for clean energy grows, the talent pipeline is struggling to keep up.
In the US, for example, the two fastest-growing roles in the sector are wind turbine technicians and solar photovoltaic installers, expected to increase by 60% and 48% respectively. This rapid growth means there simply aren’t enough trained specialists to go around, and many employers are finding it difficult to fill open positions at all levels.
The problem is also not helped by the remote nature of many energy infrastructure projects. Workers are often required to travel long distances and stay on-site for extended periods, which means they have always been difficult to recruit for. The need to comply with local legal requirements adds another level of complexity.
Managing multi-jurisdictional compliance
Operating across borders is a challenge for employers in any industry — but it’s a common reality for those in the energy sector. These businesses often need to juggle operations in multiple locations, each with its own set of labour laws, tax regulations and visa requirements.
Staying compliant isn’t just a box-ticking exercise — mistakes can lead to serious consequences from fines and penalties to reputational damage and project delays. Knowing how things work in one country won’t necessarily protect a business from harm — even neighboring markets can have very different rules.
Worker classification risks and poor oversight
Worker classification is a major compliance risk in the energy sector — especially given the project-based nature of the work. Many companies rely on independent contractors to meet short-term needs, but misclassifying workers can carry serious consequences.
What counts as an independent contractor varies from one country to another, and companies need to be confident the working relationship meets local legal definitions. That’s not always easy, especially when managing large teams across multiple jurisdictions.
Without proper oversight, it’s easy for compliance issues to slip through the cracks. The penalties for misclassification can be steep — in some cases, over USD 10,000 per worker — and may also include legal action, hiring bans or lasting reputational damage. Getting it right from the start is essential for avoiding costly mistakes and keeping projects on track.
Powering projects with confidence: talent scaling solutions for energy companies
To meet the challenges ahead, energy companies need practical ways to find and keep the right people. Here are some key solutions to consider.
Exploring reskilling and workforce development
As the energy sector evolves, reskilling and workforce development will be critical. According to SIA, 74% of green energy professionals believe that investing in training is key to achieving climate goals.
In some regions, companies must build talent pipelines from the ground up. A good example is Husk Power Systems, a solar energy company operating in Nigeria. After struggling to source qualified candidates, the company opted to invest in local training, eventually building a 200-strong team. Many of these workers now help train new recruits.
Elsewhere, the focus is on reskilling workers from adjacent industries. For example, oil and gas workers often have transferable skills well-suited to wind, hydrogen and carbon capture. Energy companies can tap into this existing talent pool while helping to accelerate the green transition.
Considering outside-the-box recruitment and retention strategies
While reskilling workers from adjacent sectors may help, it can’t solve the problem in its entirety. For one thing, these sectors are facing their own shortages — around 400,000 oil and gas workers in the US are nearing retirement, for example. The sector’s negative image among younger generations means replacing them won’t be easy.
To attract and keep skilled talent, energy companies will need to explore fresh approaches, such as:
- Building a strong employer brand: Creating a reputation as a great place to work helps attract top talent, especially younger workers seeking purpose-driven careers.
- Clear career path development: Offering transparent growth opportunities encourages employees to stay and grow within the company.
- Hiring by acquiring talent: Mergers or partnerships can bring in skilled workers and expand expertise quickly.
- Skills-based hiring: Focusing on candidates’ capabilities rather than traditional credentials widens the talent pool and improves diversity.
Leveraging employer of record (EoR) services
Employee misclassification and compliance challenges are major barriers for energy companies hiring across multiple jurisdictions. An employer of record (EoR) offers a straightforward solution, allowing companies to engage workers legally and compliantly wherever they are — without needing to establish local legal entities.
EoRs handle essential HR functions such as payroll, benefits, administrative onboarding, and more. This reduces the workload on internal teams and ensures a consistent experience for employees across regions.
Most importantly, working with a trusted EoR shifts classification liability away from the company, significantly lowering legal risks. In short, an EoR provides peace of mind while making workforce management smoother and more efficient.
Streamlining onboarding with digital tools
Ensuring safety and compliance starts with a strong onboarding process. This is especially true in the energy sector, where field roles often involve high-risk environments. But for large companies, making onboarding consistent across sites and teams can be a real challenge.
Digital tools can help by creating a standardised, mobile-friendly onboarding experience that’s easy to follow and track. This helps make sure every worker receives the right training and information before heading into the field, reducing safety risks and compliance gaps.
If you work with a partner like an employer of record (EoR), they can support you in building a reliable onboarding process that keeps workers safe and your company protected. This combination of technology and expertise makes scaling your workforce smoother and more secure.
Using technology for visibility and control
Beyond onboarding, technology plays a crucial role in giving energy companies full visibility over their workforce.
Centralised dashboards provide real-time tracking of contracts, credentials, expiring certifications and more — helping you stay on top of every detail. These tools often include automated alerts that warn you well before any compliance deadlines or risks arise, so you can act quickly to prevent issues.
Having this level of control not only helps avoid legal trouble but also ensures you’re always prepared for internal reviews, external audits and inspections. By leveraging technology, energy companies can manage complex workforces more confidently, reduce risks and keep projects running smoothly.
Don’t choose between rapid growth and compliance
There’s no doubt about it: the energy sector is facing unprecedented change. Over the next decade, companies will need to adapt — or risk falling behind. Despite these challenges, scaling your workforce is possible with the right compliance-first approach.
Here are some first steps to get started:
- Audit your existing workforce: Identify compliance gaps and areas that need attention.
- Map reskilling versus hiring: Decide which roles can be filled internally and which require external recruitment.
- Develop training programmes: Equip new hires with the skills they need to succeed.
- Trial an Employer of Record (EoR) model: Testing your solution in a key region before wider rollout can help iron out issues.
- Explore digital tools: Try free trials and read reviews to find the best onboarding and compliance solutions for your business.
Above all, remember: you don’t need to tackle this alone. At CXC, we help energy companies overcome hiring challenges, stay compliant and scale with confidence. Get in touch to learn how we can support your growth.
