With a recent survey conducted by the non-profit Center for Energy Workforce Development (CEWD) finding that up to 49 percent of the nation’s electric and natural gas workers will need to be replaced by 2013, the energy and utility sectors are at a pivotal crossroads.

As the industry begins to shift, managers will need to be more resourceful and proactive in workforce planning strategies and the re-cruitment of junior employees. Although many managers in the industry have known about this impending shift, the recession allowed a bit more flexibility as many workers chose to stay employed. Now, with the economy recovering, it’s imperative that workforce planning strategies be implemented to prepare for the future.

The energy employment picture

In the next decade, this sector will face a significant amount of changes while provi- ding a wide variety of business and career opportunities for those in it. Some of the most notable changes will come from the aging workforce, pronounced skill gaps in certain areas, and changing energy technology.

While the recession has temporarily alleviated the amount of individuals choosing to retire, the average employee is already in his or her mid-to late-40s with the traditional retirement age being 55 in this sector. This leads most industry experts to believe that the downturn has simply delayed and increased the need for future replacements in the graying sector, as the pool of eligible retirees will be larger than it was a few years ago.

Effectively planning for the energy exodusWith technological advancements and a retirement surge on the way, how can the energy sector prepare their workforce for the future?

“The Task Force believes the United States is facing a critical shortage of trained professionals to maintain the existing electric power system and design, build, and operate the future electric power system. The implications of this shortfall are wide-ranging and of national significance.”National Commission on Energy Policy’s Task Force on America’s Future Energy Jobs, 2009

Additionally, this sector is suffering from a lack of incoming young people with the science, math and technology skills needed to staff these upcoming positions, particularly as green energy and smart grids become a reality. It is essential that both academic and professional training continue to evolve as a variety of new professions and skill sets form.

The National Commission on Energy Policy echoes these thoughts. While near-term demand for skilled electric power will be driven primarily by retirement, long-term demand will remain high as a result of the need for employees to operate and maintain the new facilities being constructed in pace with population and expanding energy demands. Through 2012, the Nuclear Energy Institute (NEI) expects that through general attrition and retiring workers, nearly 26,000 workers will be needed—45 percent of the current nuclear power workforce.

Some additional food for thought:

• The electric power generation, transmission and distribution industry currently employs about 400,000 people; a large fraction (30–40 percent) of those workers will be eligible for retirement, or leave the industry for other reasons, by 2013.

• As new technologies emerge, demand for skilled workers to operate and maintain the electric generation systems of the future will increase steadily. The number of additional workers that will be needed by 2030 is roughly estimated at 60,000—an increase of almost 15 percent.

• When new energy -generating assets are deployed at a steady annual pace, workforce demand is spread out over more years and has a lower level of

peak workforce need. Alternately, if construction is delayed and / or several energy-generating assets are deployed within the same year, workforce demand will be more volatile overall, with a high peak and concentration of demand around that year. This variability reinforces the need for workforce planning as climate policy forms.

Source: Center for Energy Workforce Development

Preparing your workforce

While some may continue to operate in a reactive mode with regard to their workforce strategies, organizations with a viable plan will emerge as the winners in the industry. By understanding an organization’s overall business strategy, managers can determine the talent needed, and prioritize needs moving forward.

This can be done by figuring out the number of people and skills needed in an organization, identifying the gaps and action items needed for closing the gaps, and deciding on the actions and investments needed to make this happen.

Katherine Jones, chief executive officer of Independent Consulting Services, a workforce planning and optimization firm, notes that “workforce planning is not about hiring in the next six months,” but determining what the organization’s “workforce [will] look like in three to five years.”

Effectively planning for the energy exodus

As an organization works on business strategy, it’s essential that hiring managers also look at other important factors, like retention strategies for mature employees, training and augmenta-tion of junior staff, and a documented transfer of knowledge.

Retaining your talent

One of the most effective ways to manage a shortage of energy professionals while building the knowledge base of junior employees is by extending the period of time that the current generation stays employed.

Other than financial motivation, one key way of retaining employees is through a flexible workforce. According to a survey done on workplace flexibility by The Sloan Center on Aging & Work at Boston College, 38.3 percent of respondents with flexibility in the number of hours worked at their job chose to phase out their retirement, and 30.5 percent chose to continue their same position working part time hours.

While managers will be challenged to balance project demands against an increasing number of non-traditional work schedules, the payoff will be high for organizations who take this

route. The transition of their workforce will be substantially smoother than that of one undergoing an immediate drop-off, which in turn yields improved retention and employee engagement.

Transferring knowledge to the next generation of energy professionals

Although flexible work options are a successful way of extending baby boomers’ time in the workforce, the energy sector is still facing the juggernaut of a substantially aging workforce, rapidly-changing technology, and expanding energy initiatives.

This makes it essential that organizations recruit young professionals to learn current skills as well as those that will come along with new innovations in the field. Based on this, organizations should focus on tactics that can assist senior employees in building their skills in new technologies while transferring years of knowledge and experience to junior staff.

An excellent way to transfer knowledge is through apprenticeships, mentorships, or cooperative learning programs between students from a local school and employees who demonstrate aptitude.

“There is still a three- to six-year window within which most utilities can solve their aging workforce issues using optimally efficient solutions. After that, solutions may become very expensive.”Randy Stedman, HR Magazine, 2010

Effectively planning for the energy exodus

Kate Herwick, director of corporate human resources for DTE Energy Corp, notes that one-on-one relationships are the key to knowledge transfer. Relationships between employees strengthen bonds and encourage a collaborative environment, whereby an ongoing transfer of knowledge is fostered.

To accomplish this, energy and utility companies are now employing a number of methods, including knowledge-transfer documents, technical reports, case studies of past projects, and knowledge mapping for critical jobs. These techniques ensure that as senior employees leave and junior staff replace them, a seamless transition will carry the organization into the future.

Succeeding in the future

For organizations in the utility and energy sectors, the need to prepare your workforce while retaining talent and transferring technical knowledge is critical for success.

These sectors will be at the front line of technol-ogy and innovation in the coming years, and the managers who prepare for these changes will see their efforts pay off exponentially.

Top Tips for Capturing Knowledge in the Workplace

• Create Mentorship Programs – These programs are an excellent way to develop junior staff skill sets while exposing senior staff to fresh thinking.

• Encourage Networking – By encouraging social connections, employees are much more likely to bounce ideas off their peers or share best practices.

• Write It Down – Many organizations are now choosing to write reports and case studies that highlight past projects and solutions for employees.

For more information on how Adecco Engineering & Technical can help you plan your workforce, contact your local Adecco Engineering & Technical representative.

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Estimated potential replacements needed by 2013

Technicians 49.0% 20,500 27,000

Non-nuclear plant operators 47.6% 9,000 12,000

Engineers 44.7% 10,000 14,500

Pipefitters and pipelayers 45.0% 6,500 8,500

Line workers 40.2% 19,000 29,500

Job Category Percent potential attrition and retirement

Estimated retirements

Estimated replacements

needed

Source: Center for Energy Workforce Development’s 2008 Survey of 56 U.S. utilities as seen in HR Magazine, June 2010

Effectively planning for the energy exodus