'EVs will be cheaper' says the UK government, but how will that impact recruitment?
It's no great secret that electric vehicles (EVs) are currently quite expensive.
In fact, they're often more expensive to buy than the average UK driver is willing to spend on a car. The latest communications from the government suggest that they are looking to change that to make sure they remain on track to fully ban the sale of new petrol and diesel cars by 2035. Right now, this is looking like providing financial packages to local councils to fit more EV charging stations in residential areas without driveways, and they are promising further announcements will 'come soon' that will reduce the overall cost of owning an EV.
These changes sound promising, but how will they impact recruitment for EV manufacturers?
Greater overall demand
The most obvious shift that should be expected in the EV market is an increase in overall demand for these vehicles, which could be a great thing for any EV manufacturer out there. When demand increases across an entire industry, then there needs to be a total increase in production and an increase in headcount!
Talent that have electrification skills are currently few and far between in the UK as the majority of EVs are built in China - this is due to the concentration of lithium there. For those UK-based companies that want to increase their production upon hearing this news from the government, it would be worthwhile looking into the talent pool that exists in China and other hotspots when building out the team. Is relocation possible?
The other option is to train people in-house to have the skills needed; hiring recent graduates with degrees that are relevant to EV production and developing their skills overtime may prove to be a cheaper alternative, especially given the sheer number of new employees likely needed over the next few years. With demand for, and uptake of, electrification-aligned degrees on the rise, this is an increasingly viable option. This will take a while longer, but is certainly worth considering.
New competition
It is highly likely that these next few years will see more and more companies enter into the industry in their attempt to take a slice of the ever growing electric vehicle pie. These new entrants to the market will be looking to secure themselves the best talent to help them make an impact against incumbent firms, which could very well include taking talent from their competitors.
As an existing firm in the market, the best way to limit the number of people that you lose to competitors is to ensure that you treat your staff to a great overall compensation package. Yes, make sure that they are paid what they deserve, but also look to fill out your offerings with additional benefits that will make it difficult for them to give up. Stock options are seen as a great way to encourage long tenures, and providing flexible working options where possible is a non-financial benefit that candidates really value.
Diversification of offerings
As the EV market grows in the UK with these new legislations, there will also come the need for a range of different offerings to appease the new customers that are looking for something a little bit different. Think of the possibility of a range of vehicles that are available to those on a tighter budget than the existing customer in the market, or more cars that will appeal to traditional car fans. Over the next few years, we are sure to see new offerings hit the market.
The mission to create new product offerings in this expanding market could be helped by thinking outside the box with recruitment. Hiring against the traditional talent could help to bring fresh ideas into the company that could be game-changing. Think about bringing in recent graduates who have not yet been indoctrinated into the industry, or talent from parallel industries that could bring a different perspective.
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These are a few ways to diversify your offerings to remain competitive. Looking for some insight into hiring strategies in this industry? Check out our more recent Clean Propulsion Skills Report here for exactly this and more!