1. Effectively planning
for the energy exodus
With technological advancements
and a retirement surge on the way,
how can the energy sector prepare
their workforce for the future?
With a recent survey conducted by the non-profit The energy employment picture
Center for Energy Workforce Development (CEWD) In the next decade, this sector will face a
finding that up to 49 percent of the nation’s significant amount of changes while provi-
electric and natural gas workers will need to be ding a wide variety of business and career
replaced by 2013, the energy and utility sectors opportunities for those in it. Some of the most
are at a pivotal crossroads. notable changes will come from the aging
workforce, pronounced skill gaps in certain
As the industry begins to shift, managers
areas, and changing energy technology.
will need to be more resourceful and proactive
in workforce planning strategies and the re- While the recession has temporarily alleviated
cruitment of junior employees. Although many the amount of individuals choosing to retire,
managers in the industry have known about the average employee is already in his or her
this impending shift, the recession allowed a bit mid-to late-40s with the traditional retirement
more flexibility as many workers chose to stay age being 55 in this sector. This leads most
employed. Now, with the economy recovering, industry experts to believe that the downturn
it’s imperative that workforce planning strategies has simply delayed and increased the need
be implemented to prepare for the future. for future replacements in the graying sector,
as the pool of eligible retirees will be larger
than it was a few years ago.
“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

2. Effectively planning for the energy exodus
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.
peak workforce need. Alternately, if
The National Commission on Energy Policy construction is delayed and / or several
echoes these thoughts. While near-term demand energy-generating assets are deployed
for skilled electric power will be driven primarily within the same year, workforce demand
by retirement, long-term demand will remain will be more volatile overall, with a high
high as a result of the need for employees peak and concentration of demand around
to operate and maintain the new facilities that year. This variability reinforces the
being constructed in pace with population need for workforce planning as climate
and expanding energy demands. Through 2012, policy forms.
the Nuclear Energy Institute (NEI) expects that
through general attrition and retiring workers, Source: Center for Energy Workforce Development
nearly 26,000 workers will be needed—45
Preparing your workforce
percent of the current nuclear power workforce.
While some may continue to operate in a
Some additional food for thought: reactive mode with regard to their workforce
• The electric power generation, transmission strategies, organizations with a viable plan
and distribution industry currently employs will emerge as the winners in the industry.
about 400,000 people; a large fraction By understanding an organization’s overall
(30–40 percent) of those workers will be business strategy, managers can determine
eligible for retirement, or leave the industry the talent needed, and prioritize needs
for other reasons, by 2013. moving forward.
• As new technologies emerge, demand for This can be done by figuring out the number
skilled workers to operate and maintain the of people and skills needed in an organization,
electric generation systems of the future will identifying the gaps and action items needed
increase steadily. The number of additional for closing the gaps, and deciding on the actions
workers that will be needed by 2030 is and investments needed to make this happen.
roughly estimated at 60,000—an increase Katherine Jones, chief executive officer of
of almost 15 percent. Independent Consulting Services, a workforce
• When new energy-generating assets planning and optimization firm, notes that
are deployed at a steady annual pace, “workforce planning is not about hiring in the
workforce demand is spread out over next six months,” but determining what the
more years and has a lower level of organization’s “workforce [will] look like in
three to five years.”

3. Effectively planning for the energy exodus
As an organization works on business strategy, route. The transition of their workforce will
it’s essential that hiring managers also look at be substantially smoother than that of one
other important factors, like retention strategies undergoing an immediate drop-off, which
for mature employees, training and augmenta- in turn yields improved retention and
tion of junior staff, and a documented transfer employee engagement.
of knowledge.
Transferring knowledge to the
Retaining your talent next generation of energy professionals
One of the most effective ways to manage a Although flexible work options are a successful
shortage of energy professionals while building way of extending baby boomers’ time in the
the knowledge base of junior employees is by workforce, the energy sector is still facing the
extending the period of time that the current juggernaut of a substantially aging workforce,
generation stays employed. rapidly-changing technology, and expanding
energy initiatives.
Other than financial motivation, one key way
of retaining employees is through a flexible This makes it essential that organizations
workforce. According to a survey done on recruit young professionals to learn current
workplace flexibility by The Sloan Center on skills as well as those that will come along
Aging & Work at Boston College, 38.3 percent with new innovations in the field. Based on this,
of respondents with flexibility in the number of organizations should focus on tactics that can
hours worked at their job chose to phase out assist senior employees in building their skills
their retirement, and 30.5 percent chose to in new technologies while transferring years
continue their same position working part of knowledge and experience to junior staff.
time hours.
An excellent way to transfer knowledge is
While managers will be challenged to balance through apprenticeships, mentorships, or
project demands against an increasing number cooperative learning programs between
of non-traditional work schedules, the payoff students from a local school and employees
will be high for organizations who take this 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

4. 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 Succeeding in the future
companies are now employing a number For organizations in the utility and energy
of methods, including knowledge-transfer sectors, the need to prepare your workforce
documents, technical reports, case studies while retaining talent and transferring technical
of past projects, and knowledge mapping for knowledge is critical for success.
critical jobs. These techniques ensure that as
senior employees leave and junior staff replace These sectors will be at the front line of technol-
them, a seamless transition will carry the ogy and innovation in the coming years, and the
organization into the future. managers who prepare for these changes will
see their efforts pay off exponentially.
Estimated potential replacements needed by 2013 Top Tips for Capturing Knowledge
in the Workplace
Job Category Percent potential Estimated Estimated
• Create Mentorship Programs – These
attrition and retirements replacements
programs are an excellent way to develop
retirement needed
junior staff skill sets while exposing senior
Technicians 49.0% 20,500 27,000 staff to fresh thinking.
• Encourage Networking – By encouraging
Non-nuclear social connections, employees are much
plant operators 47.6% 9,000 12,000 more likely to bounce ideas off their peers
or share best practices.
Engineers 44.7% 10,000 14,500
• Write It Down – Many organizations are
Pipefitters and now choosing to write reports and case
pipelayers 45.0% 6,500 8,500 studies that highlight past projects and
solutions for employees.
Line workers 40.2% 19,000 29,500
For more information on how Adecco
Source: Center for Energy Workforce Development’s 2008 Survey of 56 U.S. utilities Engineering & Technical can help you plan
as seen in HR Magazine, June 2010
your workforce, contact your local Adecco
Engineering & Technical representative.
adeccoengineering.com
©2011 Adecco