Reward trends across the Asian renewables industry

Interviewer

Milan Taylor

Partner, Global Energy and Natural Resources Industry Leader, Mercer
Guest

Disha Kaushal

Talent Strategy Consulting Director

The Transforming for the future podcast series features Mercer’s consultants who are helping organisations stay ahead of the curve by embracing transformation, exploring new ways of working and reinventing their employee experience. We’ll discuss the most pressing issues facing leaders today and how to shape the future of work so that your business and people thrive.

In this podcast episode, Milan Taylor interviews Disha Kaushal about the pressing issues facing renewable energy companies in Asia. The key concerns discussed include the challenge of finding and retaining the right talent at the right price, the impact of skills overlap with other industries, and the ageing populations in key markets. The cost pressures of hiring talent from outside the organisation and the higher attrition levels in the renewable sector are also discussed.

The episode also explores reward trends, such as base pay rates, performance pay leverage, and the use of long-term incentives and retention bonuses. Overall, the episode emphasises the need for renewable companies to adapt their talent strategies and reward approaches to succeed in the evolving energy landscape.

Interesting moments:

Talent Challenges

One of the top concerns for renewable energy companies in Asia is the challenge of finding and retaining the right skill set at the right price point. The skills overlap with other industries and the ageing populations in certain markets exacerbate the talent attraction problem.
Cost Pressures

Hiring talent from outside the organisation can lead to cost escalation and impact the cost structures of renewable organisations. The energy sector in Asia tends to pay at a premium of around 25%, which adds to the cost pressures for renewables players.
Retention Issues

Renewable companies not only face challenges in attracting talent but also struggle to retain them. The attrition levels in the renewable sector tend to be higher than the industry average, which worsens the talent concerns for the industry.
Reward Trends

Base pay rates offered by renewable sectors in certain markets lead the market average. Performance pay leverage is higher in the renewables industry compared to other sectors. Additionally, renewable energy companies in Asia are more likely to use long-term incentives, retention bonuses, skills premiums, and flexible benefit offerings.