After AI, EV is the next hot topic everyone is talking about in industry. But have you thought who is behind the wheel in this revolution? Not the drivers – the talent.

As electric vehicles zoom past traditional combustion engines on the road to our future, there’s a less visible but equally important race happening: the competition for skilled professionals who can design, build, and innovate in this rapidly evolving industry.

Let us understand this a little more.

The Talent & Skills Gap

Let’s face it – the automotive industry is experiencing its biggest shake-up since Henry Ford’s assembly line. Traditional automotive giants are changing their focus towards EVs, tech companies are entering the race, and EV startups are appearing overnight.

But here is the trillion-dollar question: who is actually qualified to build tomorrow’s vehicles?

The skills needed in today’s automotive landscape look dramatically different than they did just a decade ago. Software engineers have become as crucial as mechanical engineers. Battery chemists are the new rock stars.

When Oil-and-Gas Experience Meets Electric Dreams

There was a time when automotive experience meant understanding combustion engines and fuel injection systems. With the advancements in EVs, those days are going to get extinct.

Today’s EV talents often come from surprising backgrounds:

• Software developers who once built mobile apps are now programming vehicle operating systems.
• Battery specialists transitioning from consumer electronics to automotive applications.
• UX designers are now creating specialized interfaces for increasingly complex vehicle systems.
• Sustainability experts ensuring green credentials extend beyond the tailpipe.

The twist? Many traditional automotive engineers are finding themselves at a crossroads: adapt or soon become obsolete.

The Recruitment Charging Station

So how are HR leaders addressing this challenge? It is not as simple as posting a job ad and hoping for the best. We are seeing successful companies taking a three-sided approach:

1. Reskilling existing talent – Many automobile companies are investing heavily in upskilling their workforce. The mechanical engineer who has spent 20 years perfecting combustion engines has valuable knowledge about vehicles that should not be discarded. Instead, companies are building bridges to help these professionals cross over to the electric side.
2. Recruiting from adjacent industries – When you cannot find an EV battery expert with 10 years of experience, you look to adjacent fields. Energy storage, consumer electronics, and renewable energy sectors are becoming prime hunting grounds.
3. Building talent pipelines early – Companies are partnering with universities to develop specialized EV engineering programs, creating internships focused on electric mobility, and sponsoring competitions to identify tomorrow’s innovators before they even enter the job market.

The Compensation Conundrum

Here’s where things get really interesting. The talent shortage has created what we can call “the great EV salary inflation”.

A software engineer specializing in battery management systems can command a salary that would make traditional automotive engineers’ jaws drop. We are talking 30-40% premiums in some cases.

Is it sustainable? Probably not. Is it happening right now? Absolutely.

The Evolving Workplace Culture Dynamics

Is it just about money? We do not think so – it is also about workplace culture.

Traditional automotive companies have typically operated with hierarchical structures, methodical processes, and relatively conservative approaches to innovation.

Now look at the tech-inspired EV startups. They are flat organizations focusing on rapid iteration with and fail-fast mentalities.

When these worlds collide, HR leaders face a delicate balancing act. How do you preserve the valuable aspects of automotive culture – safety-first mindsets, regulatory compliance, and manufacturing expertise – while injecting the speed and innovation of tech companies?

The companies winning the talent war are those creating a “third culture” that combines the best of both worlds. They are maintaining the rigor and quality control of traditional automotive while embracing the agility and creativity of tech.

The Diversity Driving Force

Here is something we cannot ignore: the EV revolution offers a once-in-a-generation opportunity to address longstanding diversity issues in automotive. As companies rebuild their talent strategies from the ground up, progressive HR leaders are seizing the moment to ensure more diverse voices are included.

When you are creating new teams and departments focused on EV technology, you have a chance to build diversity from day one rather than trying to retrofit it later.

Companies with the most successful diversity initiatives are taking a two-fold approach:

1. Casting wider nets by recruiting from industries with better diversity metrics than traditional automotive.
2. Creating inclusive cultures where diverse talent wants to stay and can thrive.

The Road Ahead

So, where does this leave today’s TA leaders? In the driver’s seat of change!!

The organizations that will thrive in the EV era are those treating talent strategy with the same importance as their technology strategy. After all, the most brilliant electric vehicle design is just a drawing unless you have the people who can bring it to life.

Here’s what we recommend:

• Audit your current capabilities – Do you know where your electric vehicle talent gaps are? Start by mapping your existing skills against future needs.
• Build before you buy – Look internally first. Which team members show aptitude and interest in developing EV-relevant skills?
• Rethink your employer brand – Does your company look like an exciting place for tech talent to land? Or do you still present as a traditional manufacturer?
• Develop unconventional partnerships – Consider collaborations with tech bootcamps, specialized recruiting firms, and even companies outside the automotive sector.

The EV revolution is not just about what we drive. It is transforming who builds what we drive. And in this new world, talent strategy is not just an HR function; it is a core business imperative.