Automation and sustainability shape 2025 energy and natural resources pay trends

The energy and natural resources industry is undergoing a digital transformation, integrating technologies like artificial intelligence (AI), the internet of things (IoT) and blockchain. This shift demands a workforce with strong digital and tech skills, which in turn drives up salaries for IT professionals, data analysts and engineers with expertise in these fields.

Trends in employee pay

Employee pay isn’t only important to employees. Organizations also rely on compensation programs to support many objectives. Salary trends can vary significantly by region. For example, North America and Europe might see higher salary allocations toward renewables and tech-driven roles, whereas regions heavily reliant on fossil fuels might still focus resources on traditional energy roles, albeit with a growing interest in transitioning skills.

Planned salary budget increases

Inflationary pressure, concerns related to cost management, and the anticipation of a recession or decline in business results are among the top factors influencing budget plans for 2025. This is a departure from the prevalent concerns of recent years when business leaders were contending with tight labor markets and evolving employee expectations. As a result, many organizations are preparing for 2025 budget increases that are slightly lower than that of recent years but more in line with the actual spend they’ve made in 2024.

The availability of skilled labor and demographic changes can influence salary trends. A shortage of skilled workers in certain energy sectors can lead to increased salaries as companies compete for talent.

Industry disciplines and functions seeing the fastest and slowest compensation growth

Changing labor market and economic conditions as well as socio-economic trends have increased the pressure on organizations to update their pay programs, according to the results of our 2024 Pay Effectiveness & Design Survey’s global results.

Events such as geopolitical tensions and economic sanctions can affect global energy markets, influencing salary budgets. For instance, disruptions in natural resources supply can lead to volatility in salaries within these sectors.

Changes to base salary structure design

Most respondents to the global Pay Effectiveness & Design Survey indicated that they have already made changes or are planning or considering making changes to their base salary structure design through fundamental shifts.

Compensation communication

Multiple factors are encouraging increased levels of pay program communication within organizations.

Factors affecting increased levels of pay program communication

International and global organizations generally approach the way they communicate pay program information on an organization-wide basis, with local variation where required.

Trends in attraction and retention

Employee attraction and retention is one of six core objectives for pay programs in organizations around the world, especially as employees are most likely to say pay is a driver of attraction and retention, according to WTW’s 2024 Global Benefits Attitudes Survey.

Drivers of attraction and retention

Average voluntary attrition rate, by region

Voluntary attrition is highest in Central and Eastern Europe, while voluntary turnover is lowest for Latin America. Many organizations still report issues with sourcing talent, including reporting a shortage of available labor supply.

In-demand jobs and skills

The demand for engineering positions aligns with our pay market analysis, showing that the engineering function / job family has one of the highest headcounts and total annual compensation distributions.

Stricter environmental regulations and policies focused on reducing carbon emissions are influencing operational costs and, in turn, salary budgets. As a result, organizations may need to invest more in compliance and sustainability roles, impacting overall compensation strategies.

Highest and lowest headcount expectations, by industry and region

Organizations are sharing pay information with job candidates

Two-thirds of organizations around the world are already or are planning / considering communicating pay rate or pay range information to job candidates, according to our 2024 Pay Transparency Survey’s global results.

Organizations with operations in locations with increased legislation tend to apply a more consistent approach across the entire enterprise when sharing pay rates and ranges with prospective employees.

Locations sharing pay rates and ranges with prospective employees 

• 86% of U.S. employers
• 63% of UK employers
• 60% of EU employers
• 58% of EU employers

Trends expected to shape 2025 rewards

1. 01

   Our analysis of job postings reveals that the top 20 in-demand jobs in the energy sector are consistent across various regions. Engineering roles dominate this list, reflecting the sector's ongoing need for technical expertise.

2. 02

   There is a high demand for roles such as engineering project manager, electrical engineer, automation engineer and environmental engineer. The emphasis on these roles underscores the industry's focus on automation, safety and environmental sustainability.

3. 03

   The energy and natural resources sector's salary budget trends are shaped by a complex interplay of technological, economic and regulatory factors. These factors contribute to a clear shift toward supporting the energy transition and digitalization, making it essential for companies to adapt their reward strategies accordingly.