Using Flexible Hiring Models to Fill Permanent Energy Engineering Positions

by AEG on January 6, 2026 in Energy & Power, Hiring

The race to fix our national energy shortage is on. With S&P Global expecting a $1T total capex in the sector over a four-year period, we will almost certainly see a spike in demand for the talent needed to bring these new facilities online. However, it takes time to fill these positions and, as we’ve discussed before, we’re already facing a shortfall of engineers.

 

If you’re struggling to keep projects staffed through traditional pipelines (i.e., the “post and pray” approach), it’s time to consider other options. Specifically, AEG is seeing multiple clients succeed by implementing flexible hiring models to cover both short-term gaps and find long-term, core team members.

 

Key Takeaways for Energy Firms

  • Flexible hiring models are more than short-term stopgaps. They can be a helpful tool to identify, test, and convert high-skill engineering talent into permanent roles.
  • Staff augmentation and statement of work (SOW) engagements can provide energy companies with access to in-demand expertise while reducing hiring risk and time-to-impact.
  • Combining multiple flexible models strategically allows companies to keep projects moving, upskill internal teams, and compete for scarce engineering talent in an increasingly tight labor market.

 

Why Energy Firms Are Struggling to Build Their Engineering Teams

The energy sector is moving fast; as we head into 2026, it’s only going to move faster. Grids are being modernized, production is expanding to meet higher demands on the energy grid (especially from data centers), and new technology is being implemented to enable smarter tracking and optimization. All these projects require highly skilled, often niche, engineers to implement them.

 

On top of that, the profile of a successful engineer in the energy sector is changing. With the proliferation of AI tools to aid in everything from modeling to simulations to automation to optimization, AI competence is now table stakes. In fact, a recent KPMG report shows that 65% of CEOs in the energy sector rank generative AI as a top investment area. This demand narrows the talent pool even further.

 

There’s the core problem: the national talent pool just doesn’t have enough people. So as demand is skyrocketing, supply just can’t keep up; a recent survey showed 71% of companies couldn’t find the talent they need in 2025. This tightening of the talent market is affecting everyone, and many leaders in the sector are hitting their heads against a wall to figure out how to fix it.

 

Are Flexible Hiring Models a Solution for Engineer Shortages?

Flexible hiring models are often viewed as a way to cover immediate demand, but that is only part of the story. As traditional staffing pipelines struggle to keep pace, many energy organizations are using flexible models as a practical path to building long-term capacity, not just meeting near term deadlines.

 

Flexible hiring allows organizations to:

  • Scale project teams when demand spikes, then convert proven contributors into core roles as needs stabilize
  • Engage highly specialized engineers who prefer project based work, and create a clear path to permanent roles when there is mutual fit
  • Improve hiring efficiency and reduce mis hires by evaluating real performance on real work before making a long term commitment
  • Hire for specific capabilities, not just job titles, so you can bring in niche expertise and decide how it should live in the org long term

What’s more, flexible hiring can strengthen the team you already have. When experienced contractors work alongside your permanent engineers, knowledge transfer happens naturally through shared design reviews, field troubleshooting, and day-to-day collaboration.

 

How Do Flexible Hiring Models Work for Energy Companies?

As the name implies, there’s no one type of flexible staffing model. Each is tailored to the specific needs and objectives of each energy company. However, we can sort them broadly into two categories: staff augmentation and statement of work (SOW).

 

Staff Augmentation

The most common type of flexible staffing model is staff augmentation (also called contract staffing). This model involves hiring either individual engineers or small groups on a fixed-term or hourly (T&M) basis. These hires are generally situated around a specific project or phase of a larger build, running an average of 6-18 months (although some larger scale projects can hire contractors for as many as 24 months).

 

Many engineers choose contract roles for practical reasons. Some want flexibility in schedule, location, or project type. Others like the variety of moving between projects and the chance to work on high-impact phases of major builds. Contract work can also be a good fit during a transition, such as relocating or taking on a role that better matches a specific specialty.

 

Many of our clients use staff augmentation as a contract-to-hire strategy, observing engineers in their element and deciding whether they’re a technical or cultural fit. As such, this model can help not only fill short-term needs, but can be a tool to build out your team over the long term.

 

Statement of Work (SOW)

The approach to flexible staffing is a statement of work (SOW) model, which is essentially a project-based approach. Rather than bringing on contractors or full-time, direct hires, companies will hire engineers for a specific engagement or to deliver a specific outcome. Once that outcome is achieved, the SOW is fulfilled.

 

Under a SOW arrangement, the employer doesn’t hire a set number of engineers or pay per hour. Instead, they pay the engineering staffing firm a flat rate, and the staffing firm determines how many engineers to engage to meet those outcomes on time.

 

The biggest advantage of this model is that it de-risks the hiring process and takes much of the administrative burden off the engineering company. However, it also requires detailed project specs upfront to work effectively, so it’s best deployed for projects with a set scope and timeline.

 

Final Thoughts on Flexible Staffing Models in Energy

It’s rare for any energy firm to choose one of these models and follow it exclusively. More often than not, they’ll choose a variety of models to handle complex staffing needs. There are plenty of great, qualified people out there, if you’re willing to try a different approach.

 

At AEG, we help energy firms leverage a variety of models to find (and keep) engineers and other talent amid an unprecedented talent crisis. To see how we can help you, contact us here .