What does 2024 have in store for the energy and commodities specialism? The IDEX Consulting 2024 Salary, Benefits and Skills Guide is now available, and offers detailed insights into market trends with expert commentary from our specialists. Below is an overview of our findings, as well as a peek into what the energy and commodities specialism can expect to see in 2024.
Global supply chains vacillate as geopolitical unrest continues. With access to oil and gas unreliable at best, and transport even less so, businesses across sectors are re-examining their NetZero goals not just for ESG targets, but to mitigate the struggle for non-renewables. Though conflicts across Ukraine and the Middle East mean geopolitical risks remain high, economic research forum World Bank Blogs state “The World Bank commodity price index is set to fall 4% in 2024, with energy prices expected to decline 5% and stabilise in 2025” (World Bank Blogs: Commodity markets outlook). This is primarily a reaction to unprecedented inflation throughout 2022 and 2023. While the decline brings prices back down, most commodities will still sit at prices much higher than their 2015-2019 average.
Though the rise in electric vehicles means demand for fossil fuels has lessened (with one in five cars sold globally now being electric), demand for non-renewables such as lithium, cobalt and molybdenum used in the electric battery manufacturing process have skyrocketed. 2024 will see electric vehicle businesses oscillate between expanding their product offering and adhering to NetZero targets.
The last few years have seen a war for talent across sectors, with the energy and commodities specialism not immune to the shortage. Strong trading performances across most of the industry last year will lead to an uptick in businesses looking to expand in 2024, creating a particularly competitive hiring environment.
Flexible working continues to be a priority for professionals on the search for a new role. Organisations that have mandated office work over hybrid working will struggle to compete in the current hiring climate, as professionals turn to countless other opportunities with more flexible options. For businesses willing to make the change, offering a relaxed work structure is a powerful tool for attracting top talent and doesn’t involve having to find the budget to increase salaries.
The rise of social media continues to simplify the application process, with fast-track applications and one-click CV sends more efficient than ever. A focus for businesses in 2024 will be to further simplify and streamline the hiring process. With 36% of employers in the energy and commodities specialism reporting a shortage of suitable applicants, and 30% reporting they don’t have the talent needed to achieve business objectives, auditing the full length of the hiring process will be paramount. We recommend keeping the interview process to a maximum of three stages, ensuring there is regular communication and processing paperwork as quickly as possible.
With unprecedented growth reported across the renewable side of the energy and commodities sector, sustainability strategists and renewables experts are going to be sought after. Similarly, as organisations across sectors wrestle with data protection, regulation and cybercrime, professionals with skills in data management also in high demand. Likewise, professionals from highly regulated industries across financial services will have opportunities to move to energy and commodities this year, as regulations around the specialism evolve and tighten.
Want further details? To build our 2024 Salary, Benefits and Skills Guide, we invited over 100,000 employers and employees to share their views on salaries, in-demand roles and skills and hiring plans. We’ve collated this data into detailed, sector-specific sections, underpinned with commentary from our specialists on what you should be aware of and plan for in 2024.
Whatever your plans for 2024, stay informed with data-driven insights. Access the full, free report here.