Paul Armstrong Managing Director of People and Talent Solutions
The UK water industry is entering one of the most demanding periods in its history. From tougher environmental expectations to ageing assets and rising public scrutiny, water companies are being pushed to modernise quickly and decisively. The digital transformation that once seemed like a long‑term aspiration is now a more urgent necessity.
However, while technology is advancing, the workforce needed to deliver and sustain this transformation isn’t keeping pace. Skills shortages, retention challenges, and an ageing workforce are all placing pressure on organisations that need stability more than ever. As a result, business resilience is now as much a people challenge as it is an operational one.
The sector must adopt new systems, new ways of working and new mindsets – yet success depends on something timeless: having enough skilled people in the right roles, with the right support, doing work they genuinely feel connected to.
This article explores how the water sector can build a future‑ready workforce by prioritising its people, designing a truly authentic Employee Value Proposition (EVP) in partnership with employees, and investing in a culture that puts people at the centre of digital change.
Digital transformation is accelerating but skills aren’t keeping pace
Digital tools such as real‑time monitoring, advanced analytics and automated control systems are reshaping how water networks are managed. Water companies are expected to adopt these technologies at scale as part of AMP8, improving resilience, reducing pollution incidents, and enabling faster decision‑making.
However, the sector faces a significant skills gap. Research shows that education and training have not kept up with the speed of technological change, leaving a shortage of workers able to manage and interpret digital systems. According to the Foundation for Water Research, only 8% of the workforce is under the age of 241 (fwr.org/bridging-the-skills-gap-in-the-water-sector-challenges-solutions-and-future-transformations/) and many technical roles remain difficult to fill.
This is compounded by long‑standing demographic pressures. The industry has a high proportion of older workers with specialist knowledge, and organisations risk losing critical experience faster than they can replace it. As the water sector transitions to a digital-first environment, this shortage of both new talent and modern technical capability represents a direct threat to resilience.
Put simply: digital infrastructure means very little if companies don’t have enough people who can use it confidently and effectively.
Why business resilience now depends on people, not just assets
Traditionally, water companies have measured resilience in terms of physical assets – pipes, pumping stations, treatment plants, laboratories. But today’s risks extend far beyond infrastructure. Climate change, cyber threats, customer expectations, and regulatory pressure all demand swift, informed decisions. Without a skilled and stable workforce, even the best technology cannot deliver results.
The industry is also facing a major retention challenge. Water by Murray’s labour report highlights that 66% of engineers are looking to move to other sectors and 23% plan to retire in the next five years2. When so many people are preparing to leave, resilience becomes fragile.
To remain robust, water companies must see people risk in the same way they view operational risk. Strong succession planning, modern learning programmes and a supportive culture are essential – because without them, sustainable performance becomes more difficult. When teams don’t have the skills, training or confidence to meet new demands, work quickly becomes unsustainable, leading to fatigue, frustration and ultimately attrition.
In other words, business resilience and people resilience are now the same thing. You cannot strengthen one without investing in the other, and long‑term workforce planning is just as critical to stability as the technology the sector is adopting.
Developing the skills you need – starting with the people you already have
While the industry must attract new talent, it cannot rely on recruitment alone. It is often more effective and cost‑efficient to upskill the existing workforce, and many employees are keen to develop digital skills but simply haven’t had the opportunity.
Modern, practical learning and development (L&D) programmes can build capability in areas such as:
Data analytics and interpretation
Digital monitoring technologies
Cyber awareness and operational technology security
Remote operations
Leadership in digitally enabled environments
This matters because skills shortages weaken operational resilience. When only a small number of people understand a system, it becomes a single point of failure. A broader, better‑trained workforce increases flexibility, continuity and stability.
By making L&D a central part of their people strategy, water companies can reduce risk while empowering employees to grow.
Why a people‑centric culture is essential for attracting and keeping talent
The skills crisis is not just a numbers problem – it’s also a perception problem. Young people and early‑career professionals often overlook the water sector because they don’t see it as innovative or appealing. In fact, recent research shows many graduates view the industry as “too risky,” limiting the flow of new talent. 49% of engineers now say skills and recruitment are the sector’s biggest challenge3.
A people‑centric culture can help shift this narrative.
Creating an environment where employees feel valued, heard and supported makes the industry more competitive against sectors like renewables, tech and energy, all of which have strong employer brands. Critical elements of a people‑centric culture are:
Listening to employees and involving them in decisions
Providing clear paths for development and progression
Offering wellbeing, benefits and financial support that reflect real needs
Recognising contribution, team effort and lived experience, not just output
Encouraging open communication and psychological safety
People stay where they feel they belong, where they feel valued, and where they see a future. If water companies want to retain experienced workers and attract new ones, culture is one of the most powerful levers they have.
Bringing it all together: technology succeeds when people succeed
Digital transformation offers enormous potential: fewer leaks, faster repairs, better customer outcomes, more reliable networks, improved environmental performance. But none of these outcomes can be achieved by technology alone.
To build a future‑ready, resilient water industry, companies must invest just as much in their people as they do in their systems. That means:
1. Putting people at the centre of business resilience
Skills, capability and wellbeing are now core resilience priorities—not “nice to have” extras.
2. Designing an EVP in genuine partnership with employees
An authentic EVaP strengthens reputation, retention and recruitment, especially for digital roles.
3. Creating a culture where employees feel valued and supported
Strong culture attracts talent, reduces turnover and fuels sustainable performance.
4. Building digital skills from within
Upskilling the current workforce is essential for long‑term capability and operational continuity. Many organisations are finding that digital transformation is, at its heart, people transformation.
While new systems and infrastructure may be important in building a resilient future for employers in the water sector, the strength, skills and engagement of the people who keep water flowing every day may very much also be key factors.
NFP: specialists in human capital and people‑risk management
Businesses need resilient people strategies to keep pace with rapid change. At NFP, we support organisations in strengthening workforce capability and managing people‑related risk through tailored consulting.
To find out more about us and our solutions, visit www.nfp.co.uk
References:
1. https://fwr.org/bridging-the-skills-gap-in-the-water-sector-challenges-solutions-and-future-transformations/)
2. https://www.watermagazine.co.uk/2025/05/14/water-industry-skills-crisis-intensifies-as-perfect-storm-looms-for-amp8/
3. https://www.waterindustryjournal.co.uk/is-the-uk-water-sector-ready-for-the-workforce-demands-ahead
