Taking control of a shrinking labour pool Siemens Energy Service

Mar 3 2010 By The Journal

SIEMENS Energy Service is future-proofing its business by bringing training in-house and establishing recruitment schemes for school- leavers and ex-service personnel.

In 2006 Newcastle-based Siemens Energy Service took a long hard look at its future and discovered that 30% of its workforce would reach national retirement age within 15 years.

However, since deregulation in 2000, apprenticeship schemes across the energy sector have declined. With few young people coming into the industry, Siemens would face a long-term challenge trying to recruit from a shrinking labour pool.

Taking control

Siemens responded with a comprehensive plan to overcome both the current skills gap and the projected shortages.

Its first bold step was to create its own training centre. "The business case was submitted to the board in 2008 and the centre opened in March 2009," explains Martin Hottass, energy sector development partner for Siemens Energy Service.

"Having our own centre means we could train employees across the energy sector. Siemens’ wind power division will need to recruit a substantial number of new technicians a year up to 2015. By creating the centre together, we’re meeting the learning and development needs of both businesses and realising economies of scale."

The centre also teamed up with other Siemens divisions to secure a National Training Contract in 2008. Siemens Energy Services is now attracting up to 20 apprentices a year to its business. "As a national contract holder Siemens can now deliver advanced apprenticeships in engineering and are required to adopt best in class practices," said Mr Hottass. "That means we can attract the best recruits."

A balanced workforce

Recognising that apprenticeships wouldn’t, on its own, create a balanced workforce, Siemens turned its attention to ex-service personnel. "Approximately 4,000 people with engineering skills leave the services every year," explained Mr Hottass. "They’re very attractive for us." The company has successfully recruited 50 ex-service personnel.

Siemens has also forged links with three schools, taking part in careers evenings, science lessons and work placements to encourage young people to consider careers in energy engineering. The company has also teamed up with Tyne Metropolitan College to deliver a bespoke course for its apprentices.

Average retention rates for engineering apprentices are 60% in the UK. At Siemens Energy Service it is 85% – thanks to its dedicated training capability.

Building relationships

Being able to demonstrate best-in-class training standards gives Siemens the edge in new business bids since, as Mr Hottass explained "high quality training is a key factor when awarding contracts in the energy industry". Siemens Energy Service’s commitment to growing the skills base was recognized in EEF’s Future Manufacturing Awards 2009 when they won the National Innovative People Practices Award. The judges commented: "Siemens has shown a long-term commitment to attracting recruits from outside its sector and, by integrating with other parts of the business, has shown strong, competent management."