Green Job Growth Faces Major Challenges
By Paul Hannam - updated by WEN staff (This article originally appeared at Greenbiz.com)
There is mounting evidence of a green jobs revolution that promises to transform the workplace across the nation. Media pundits, business leaders, activists, and politicians claim that the Green Economy will create millions of new jobs, lead us out of recession and, in the process, transform our economy into a 21st century engine of prosperity.
On the other hand, there is also a great deal of rhetoric and hype about this phenomenon and we should stand back and analyze what is really happening. The truth is that a massive economic transition doesn’t happen overnight. Training and hiring millions of people for green jobs demands time, financial investment, and an adjustment of expectations about the very look and feel of a 21st century labor force that is fostering sustainable change.
I have worked in executive search and recruitment sector for over 20 years and in the environmental sector for 10 years, and I am very excited by the growth in Green Jobs. In 2007, my partners and I founded a search firm called Bright Green Talent, which places environmental leaders and professional in green organizations worldwide. Our understanding of the hurdles we’ve yet to overcome in this field comes from the daily conversations we have with environmental and socially conscious companies about their needs and challenges.
As specialist recruiters in San Francisco and London, every day we see and wrestle with the emerging realities of the green labor market. For example, we see how America’s lack of investment in engineering talent has left it short-staffed of renewable energy modelers and LEED Certified HVAC professionals to fuel this green labor revolution.
Indeed, there are a number of barriers to the development of the Green Economy and its creation of new employment. When we are able to overcome these barriers we will make major progress in our search for solutions to our most pressing environmental problems.
1) The Impact of a Recession. Sean Martin, a Principal at Blu
Skye Consulting, a sustainability consulting firm in San
Francisco, says that their clients are adapting quickly to the
troubled economy: “The nature of the requests [we receive] are
getting much more focused on cost savings. While that element
has always been there, it seems to be louder as of late.”
Going green can lead to greater organizational efficiency and
long-term costs savings, though it’s often perceived as an added
burden in a tough economic time. Companies that are driven by
green missions are especially challenged to prove their worth
and excellence. Credibility and long-term relationships are
essential to encourage green innovation and, in the process,
demonstrate to skeptics that green business practices truly do
deliver a measurable return on investment.
2) Talent shortages. The lack of qualified workers is impeding
the growth of many green industries, and there’s little sign of
relief. Bright Green works with Silicon Valley solar companies
that have received tens (if not hundreds) of millions of dollars
in venture capital funding, but, even so, can’t find experienced
businesspeople to put that money to good use. The capabilities
and knowledge needed to be successful is so new that even
seasoned executives, brought into companies, often need a crash
course in the art of effective, green business practice.
To make matters more difficult, organizations are applying 20th
century hiring expectations to 21st century industries. As
recruiters we consistently have to address the gap between the
perceived skill set necessary to succeed in a position and the
reality of the marketplace.
People simply don’t have a dozen years’ experience in solar
system design or cleantech venture capital. These industries
didn’t exist back then, and even having five years experience
often means you’re an old hand. As a consequence, employers are
turning to candidates who have a track record in the general
business, even if they have neither environmental experience nor
even values. Ultimately, these folks may negatively impact their
corporate culture as they may not care about the planet, and
will end up harming a firm’s credibility in the marketplace. The
very people who are needed to grow these businesses sometimes
risk compromising the mission of their new employer.
The green jobs movement will need to invest millions in training
programs — and at times take calculated risks — in order to
bring on board green employees who can both do a good job and
help keep a company’s reputation clean and green. Activists and
policymakers who have long lobbied to see legislation passed
that supports these programs (as Bright Green recently did with
California Senate Bill 1672) still have a lot more to do.
What’s become obvious from a human capital point of view is that
credibility is the key to attracting not only consumers, but
employees. Indeed, on many levels, it’s the main competitive
differentiator for both the consumers and employees in choosing
a brand or company.
3) Greenwashing. Companies are now having to be more accountable
and authentic to maintain their green reputation. Many are
seeing the green opportunity as a short-term branding
opportunity and face mounting consumer and competitive pressure.
The recent influx of “green” products in all categories makes it
difficult for consumers to sort out who’s green and who’s not.
Prospective employees also want to be reassured by the
organization’s green credentials.
Many graduates, as well as experienced professionals and
executives, are looking to join a new hybrid organization that
combines the entrepreneurial energies of a business with the
compassion and impact of a non-profit. These green social
enterprises should flourish and help to develop a distinctive,
emerging green workforce. There seems to be a profound passion
and commitment to doing things differently, and many employees
are looking for more than just a paycheck or a career. They see
themselves as change agents, promoting more sustainable business
practices, and “green jobs” seems to represent an exciting new
labor market. Whatever it is, it’s a new system that’s
inherently different from our current labor force.
Greenwashing ultimately hurts both industry and the planet and
incongruent businesses will likely suffer over the long haul.
Genuine talent will either look elsewhere or leave once the
initial allure fades.
4) The Need for Government Regulation. Underpinning –and at
times unlocking – these challenges is the need for increased
government policies, subsidies and laws. Without these it will
be difficult for sectors like renewable energy to prosper.
Currently, fossil fuels receive enormous subsidies and many
solar, wind and other technologies are still in their infancy
and need local, state and, above all, federal support to
flourish.
A clear and tangible commitment from Washington will be critical
to ensuring the long-term viability of the Green Economy.
Thankfully, 2009 promises to see more progressive regulation
with President-Elect Obama seeming to embrace a forward-looking
domestic energy agenda. Internationally, agreeing on a successor
to the Kyoto Protocol and creating an international authority
for carbon trading and investment will be positive next steps
towards an integrated, stable global economy that properly
accounts for carbon and guards against damaging environmental
practices.
Indeed, change is afoot, and it’s keeping both our hopes alive
and spirits high.
As for the talent shortages, MBA students are integrating the
need for the green business skills into their core coursework,
with many programs now offering a “green business” track in
sustainability to prepare their students for multi-faceted, 21st
century leadership roles. The Aspen Institute reported this year
that the percentage of MBA programs requiring their students to
take courses focused on business and society issues jumped from
34 percent in 2006 to 63 percent in 2007.
Having built a business on the belief that our economy is
capable of becoming truly sustainable, we’re optimists. Despite
the challenges, we’re driving towards a green economy more
quickly than anticipated. Green companies that focus on creating
meaning in the work place while delivering excellent quality
products and services will continue to find the bright, talented
people to lead their green teams in pursuit of greater market
share and a greener planet.
Paul Hannam is the co-founder of Bright Green Talent,
a recruitment agency for environmental business professionals.
