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I had the great fortune to sit down with Glenn Steiger, former GM of Glendale Power & Water, to chat about the human resources challenges they faced before, during and after their AMI deployment. Glendale was the first to sign on the dotted line with the Department of Energy, and is recognized as having set the gold standard for meter deployment and integration. Having deployed 120,000 fully operational smart meters on time and within budget, Glenn shared the following keys to success as it relates to Smart Grid human capital requirements:
- Open the door to relocation: While larger utilities in tech-rich geographic areas will have less of a problem finding local talent, competition in areas like the Silicon Valley is fierce, and relocation may still be necessary to achieve optimal staffing levels. Smaller utilities in less populous areas will have to budget for relocation to attract the right talent. Glendale accommodated relocation for close to 60% of its new technical staff.
- Ratchet technical compensation budgets 15% - 30%: It's a real-world example of Economics 101 - demand exceeds supply, and as a result, the price of labor is rising. While it may be more difficult for municipalities and co-ops to get budget increases approved, it is vital to finishing a deployment on time. Few utilities (or vendors for that matter), consider the opportunity cost of a position left vacant while searching for an employee who will accept less than the going rate. Not to mention the declining employee retention rates that ensue. Glendale experienced a 15% - 20% increase in technical labor cost.
- Anticipate a 2-3 year technical employee shelf life: "Techies" are on the 2-3 year plan. Motivated by projects that will have a significant impact on a business, they will work night and day to complete a project, but when it's done, they are on to the next best thing - which in their minds is rarely with the same employer. Instead of avoiding employees with a "job hopper" resume, utilities need to embrace these candidates, as they are the worker bees who are committed and able to successfully complete a project on time. To compensate for this inherent attrition, employers should adjust their hiring strategy accordingly, consistently filling the pipeline with like candidates to take their places when the time comes.
- Consider contracting arrangements to jump-start project success: Finding full-time employees with the right skill set is rarely expeditious. Techies naturally gravitate towards contract agencies as they offer opportunities that are in line with their 2-3 year plan. While more challenging in less populous areas, finding a reputable contract workforce agency can significantly speed up the process of finding qualified talent. Glendale relied on contracted human resources to ensure their deadlines were met. This non-traditional workforce also offered them a workaround to the challenges posed by the often lengthy and certainly less feasible salary increase approval process imposed by the municipality.
- Partner with specialized recruiters for long-term success: Niche recruiters in the Smart Grid sector can add significant value if they have done their homework. A specialization in this unique sector can abbreviate the hiring timeline as well as offer unique insights into compensation requirements, opportunistic hiring opportunities and human resources game plan development and maintenance.
Finding top-rate technical talent isn't the only challenge utilities will face. Read more about Glendale's AMI roadblocks and their corresponding solutions in: "Glendale Power and Water Sets Gold Standard for AMI".
Glenn Steiger is currently an independent consultant providing smart grid, renewable energy, energy efficiency and management business/ operational strategy services to the energy and water industries. He is the former General Manager/CEO of Glendale (California) Water & Power (GWP) where he transitioned the utility through the integration of “smart grid” technology, water and energy efficiency and a significant increase in the provision of renewable energy. Under his leadership, GWP was the first utility in the United States to receive federal stimulus funding for its “smart grid” initiative, and the first to be fully smart-grid operational for both its electric and water utilities and achieved one of the highest percentages of renewable power (24%) within California. Mr. Steiger has provided internationally-recognized water/energy nexus and smart grid consulting services to utilities in Australia, Brazil, Thailand, China and numerous European countries. In addition he was honored by GridWeek with its 2010 “Excellence in Smart Grid Deployment” award and by Intelligent Utilities as one of 2011’s “Movers and Shakers”.
What does it take to break into and/or advance your career in the Smart Grid? I can't tell you how many times we are asked that very question. And I am absolutely ecstatic to be able to share some top-level insights into the answers as a result of a research study we recently completed with Zpryme's Smart Grid Insights group.
Leveraging feedback from 184 hiring executives responsible for recruiting candidates to fill open Smart Grid roles, we can offer the following advice to those wishing to join the Smart Grid workforce:
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Collegiate Smart Grid Hopefuls: Adopt the 6-to-8 Year Plan
College students can increase their odds of successfully landing a career in the Smart Grid by pursuing a Master’s degree immediately following the completion of their Bachelor’s degree. Forty percent of Smart Grid hiring managers require this additional education before they will even consider a candidate without work experience.
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Working Bachelors: Go Back to School
Candidates who have already joined the workforce can open the door to incremental opportunities by pursuing a higher level of education. Forty-nine percent of hiring managers are looking for a Master’s degree when seeking to bring on an experienced hire.
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Degree of Choice? Engineering, Engineering, Engineering!
It should come as no surprise that most Smart Grid roles require some sort of engineering background. It’s also no secret that electrical and computer engineering knowledge is crucial to the development of Smart Grid technologies. Both new graduates and those already in the workforce will need this background to sustain successful careers in this sector. As the number of engineering graduates being turned out by U.S. colleges and universities has virtually stagnated, engineers of all types are in high demand across a wide variety of industries. However, engineers pursuing a career in the Smart Grid can expect to earn up to twenty percent more than their counterparts in other industries.
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Going Above and Beyond: Laser-Focused Specialty Certification and Training
Participating hiring managers listed a wide variety of additional certifications and specialty training on their “must have” list for evaluating potential hires. While the list was logical (download full report for more details), one question did remain unanswered. Where should a candidate complete this additional training? Which educational organizations are the most highly regarded? Unfortunately, at this early stage in curricula development, there isn’t a national clearinghouse that offers a comprehensive list of available training and/or educational offerings. Nor did we query participants for their recommendations. However, candidates can start by researching the programs funded by the DOE for Smart Grid workforce training and development. Subsequent reports conducted by Zpryme and SmartGridCareers.com will take a deeper dive into the educational programs that are successfully producing candidates with the specialty training desired in this sector.
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Honing Important Skills: The Importance of Seeking Applicable Work Experience
Hiring managers sent a very clear message regarding the importance of analytical and problem solving skills for both new and experienced Smart Grid hires. Candidates of all types should seek out opportunities to hone these skills by pursuing internships and/or permanent roles where these skills can be exercised and developed. For those already in the workforce, hiring managers listed project management, consulting and management experience on their top three list for the most sought-after demonstrated skill sets. Why? Project management skills are crucial in industries where new technologies are being developed at a very rapid pace, especially in industry segments where competition is prolific. These skills are also vital when there is a need to manage transformational change. The Smart Grid sector qualifies on both accounts. As for consulting experience, the desire for this skill set reflects the industry’s need to understand the full breadth of available technologies and their relevant applications. It’s the only way to stay ahead of the competition. The need for management skills is a good indication of future growth. Whether achieved organically, by raising capital or through acquisition, Smart Grid technology vendors are supporting their growth plans by adding human resources…offering both new and experienced hires limitless opportunity.
This primary research underscores the exacting requirements for those interested in pursuing Smart Grid roles. Potential candidates can leverage this data to guide their academic and initial career choices to ensure it leads to a path in the Smart Grid. Those interested in reading the full report can download a free copy here.
On the heels of publishing an infographic depicting the topline results of a survey of 184 Smart Grid hiring executives, we recently released a detailed report featuring benchmarking data on Smart Grid employee compensation, recruiting, training, hiring policy and retention.
Representing 25 sectors in the Smart Grid, this data provides hiring managers with the insights they need to evaluate the competitiveness of their human capital game plan. Specific data points include:
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Smart Grid Hiring Activity (2010 - projected 2012)
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Average Compensation by Type of Smart Grid Role
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Signing Bonus Usage and Payout Amount
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Recruiting Challenges and Best Practices
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Training Initiatives
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Employee Retention Trends and Strategies
Smart Grid technology vendors and consultancies can capitalize on this research by using the data to benchmark their current recruitment strategy. As I am sure most in the Smart Grid sector would agree, it is becoming an extremely arduous task to identify, recruit and retain candidates with the new hybrid skill set required to achieve proficiency in Smart Grid roles. As a result, compensation is on the rise, more flexible work arrangements are being offered, and recruitment strategies are evolving beyond the use of job boards and employee referrals.
Utilities, while not needing to pull the trigger on a hiring frenzy just yet, should leverage this data to begin drafting their human resources road map. You can read our take on the pearls of wisdom utilities can glean from this study in today's edition of FierceSmartGrid.
Within the next three weeks, we plan to publish an additional report outlining the educational background and skill sets sought by those holding the hiring reigns in the Smart Grid sector. Designed to assist those candidates who are interested in pursuing a career in the Smart Grid, this next release will provide some invaluable insights into what it takes to break into this dynamic industry.
Until then, please feel free to reach out to us at any time by calling 561-200-3248. We would happily discuss our findings and advise you on how to leverage the data to your advantage.
To ensure we continue to be well-positioned to council our clients on best practices for Smart Grid hiring, we recently partnered with Zpryme's Smart Grid Insights on a research study to validate our "hunches" about developing trends in this market sector. We reached out to the top technology vendors and utilities in the industry to understand the challenges they are facing and the solutions they have identified for meeting the unique human capital requirements associated with the Smart Grid.
Leveraging feedback from 184 of these executives (all responsible for hiring candidates for Smart Grid roles in the U.S.), we were able to identify six topline developments in the areas of compensation, hiring activity, recruitment efforts and retention challenges:
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Average Compensation Exceeding Industry Averages for Engineering and Engineering Management Roles in the Smart Grid Sector*: Average compensation for experienced engineers in Smart Grid roles outpaces the industry average by 8%. Senior level engineers employed in the Smart Grid sector earn 4% more and engineering managers take home an average of 20% more than their counterparts in other industries.
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Hiring Activity Increasing More Rapidly Among Mid-Sized Smart Grid Players: Companies with 501-1000 employees hired 35% more Smart Grid candidates in 2010 than in 2011. Hiring in the 1000+ employee sector declined, largely due to extensive merger and acquisition activity. Overall, hiring increased by 2%.
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Starting Salaries for Smart Grid Roles on the Rise: 65% of respondents indicated that starting salaries are on the rise for experienced hires. 59% reported increases for new hires (those with no previous work experience outside internships).
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Recruitment of Experienced Hires is Becoming More Challenging: 45% of hiring executives stated that it is taking longer to identify and recruit experienced hires. 25% reported the same challenge for new hires.
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Retention of Smart Grid Employees Becoming Problematic: While only 24% of respondents said that retention has declined over the past five years, 72% indicated that retention of Smart Grid employees is a problem on some level. Rising salaries and the increased level of difficulty associated with recruiting experienced candidates are the most likely factors contributing to respondents’ assessment of retention as a problem.
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Recruiters Playing an Integral Role in Identifying New Hires for the Grid: Recruiters were named the top source for helping Hiring Managers identify new hires for Smart Grid roles and one of the top three sources for experienced hires.
*Based on comparative national average data for electrical engineers from Salary.com
These findings are only the tip of the iceberg. In the coming weeks, we will be taking a deep dive into the statistics we collected to identify additional trends associated with specific Smart Grid verticals. We will also be segmenting the data by company size and employee type to glean statistically significant trends at a more micro level. You can look forward to receiving additional updates in the very near future.
Have a Smart Grid hiring question you would like us to research? Submit your question here, and we will do our best to analyze the data to find an answer. In the meantime, please do not hesitate to contact us directly at 561-200-3428 with any questions!
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In the conclusion of the series I authored for Fierce Smart Grid, I outlined several possible solutions to the human resources challenges facing the utility market. As I mentioned in a previous post, leaders in this sector do have a slight advantage over technology vendors as they have the luxury of time, albeit short, to develop strategies that can overcome these hurdles.
While these challenges may seem insurmountable, and the exercise of developing an effective strategy daunting, utilities, take heart! To follow are some ideas to help you jumpstart the process:
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Start recruiting new blood. The DOE awarded nearly $50 million in 2010 for the sole purpose of developing curricula designed to turn out graduates with the emerging skills needed for the Smart Grid. Don't be the last one to this party. Forge a strong relationship with these Career Development Centers...via job postings, attendance at career fairs, etc. And come prepared to fight over candidates...vendors are already on to this strategy.
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Leverage community ties to partner with local educators. As there are only a handful of DOE grant recipients, utilities are going to have to extend their campus recruitment efforts to include educational institutions in their local market. And what better place to start? Who has better brand recognition than a utility? Leverage your home field advantage and partner with academicians to develop the coursework and internship programs that provide the knowledge and hands-on experience needed to germinate qualified local candidates.
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Hire a change management consultant to identify retraining opportunities. Utilities should not try to tackle this one on their own. It's too hard to see the forest for the trees. Hire an expert...there is a bevy of qualified consultants out there who have seen this song and dance before. And listen to what they have to say...don't miss this opportunity to rethink the way your business is currently structured. Smart grid deployment will require transformational change within the organization. Be open to new ideas.
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Upgrade your image. Utilities need a facelift to ensure they are able compete with the vendor set. You have a great story to tell. Highlight your technological advances...showcase the opportunities that abound. Hire a PR firm, a good one. They will have their work cut out for them. This is crucial, by the way, if you want to be successful wooing candidates away from vendor suitors.
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Seek expert recruiting resources. The Smart Grid requires a very specialized set of skills. It will take more than the average Joe to identify these types of candidates. It will take a specialist, one who is both well versed in the qualifications that are needed and knowledgeable about where these candidates currently sit. And forget about the so-called "tried and true" recruiting tactics currently employed by your Human Resources team. Those keys won't open these doors.
Smart Grid Careers has already mapped thousands of candidates who fit the bill. We know where they are currently employed and what it will take to get them to move. And we have redefined the way recruiting is done. Made it more efficient and cost effective. Intrigued? Download our media kit to learn more. We would be delighted to help you bring qualified candidates onboard...quickly!
In closing, the time for action is NOW. Really, right now. Schedule a team huddle for later today and get the ball rolling to ensure you are prepared. Remember, the early bird gets the worm!
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Today FierceSmartGrid published the second part of my series entitled "The Smart Grid Hiring Conundrum", in which I outlined the unique hiring challenges facing the utility market. While I agree that the hiring conundrum is currently manifesting itself almost exclusively among vendors of Smart Grid technologies, utilities must be on their guard.
Leaders in the utility sector will face the following four challenges in the very near future:
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Compensating for attrition, as nearly half of the skilled technicians within the utility workforce will need to be replaced by 2015.
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Addressing the shortage of engineering graduates coming into the workforce.
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Retraining current employees whose skill sets will become obsolete as a result of Smart Grid deployment.
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Attracting and retaining human resources who have the emerging skill sets required to ensure the successful transformation of this industry sector.
Utilities have somewhat of a competitive advantage over those sitting in the vendor category, as they have the luxury of being able to plan ahead to meet their looming talent challenges. It's been nothing short of a mad dash with the vendor set, as they have been on the front end of Smart Grid deployment, and forced to develop solutions to their hiring challenges on the fly.
Even with the advantage of some forethought, utilities' talent challenges are double that of those that exist in the vendor space, and it is going to require a deliberate effort on their part to ensure a less-than-disastrous result. While three years may seem a long way off for some, utilities need to start developing a strategic plan for meeting their future HR needs now. Like today. Or perhaps even yesterday.
In my next post, I will outline some specific strategies utilities can employ to ensure they are well-positioned to not only identify, but recruit and retain qualified employees...one of which is to map out the skill sets that will be needed and then identify where these candidates are currently sitting. At Smart Grid Careers, our business model is based on the realization of this process for all verticals within the Smart Grid. We have already done the legwork of finding the candidates who have the new skill sets that are required. As a result, we can greatly improve the efficiency of the hiring process, and have already done so for leading Smart Grid technology suppliers and consultants. You can learn more about our proven solution by calling 561-200-3248 or downloading our media kit here.
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Welcome to the kick-off of our new blog, IntelliSights! Designed to keep you abreast of the latest career trends in both the Smart Grid and Renewable Energy sectors, we invite you to become a subscriber and participate in the discussion.
2011 featured a wealth of research on the topic of Smart Grid Careers, including:
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Sizing The Clean Economy: A National and Regional Green Jobs Assessment, published by the Brookings Institution
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U.S. Smart Grid: Finding New Ways to Cut Carbon and Create Jobs, published by the Center on Globalization, Governance and Competitiveness at Duke University
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The U.S. Smart Grid Revolution: Smart Grid Workforce Trends 2011, prepared for KEMA by the GridWise Alliance
We've posted copies of these studies within the Resources Section of our site for your review. All three reports have the same objective: to get a handle on how to define and measure job growth trends in this emerging sector.
Why is this topic of so much interest? The current state of the economy is most likely the culprit, as industry experts initially projected the creation of 280,000 new positions by 2012 as a result of a then anticipated disbursement of $16 billion in Smart Grid incentives. With actual job creation since 2009 estimated in the 10,000 - 15,000 range, there's a lot of head scratching going on. The Smart Grid held great promise in the eyes of our current regime, and industry proponents are now grasping at straws trying to justify the sluggish growth while continuing to paint a rosy picture of what the future may bring.
I recently wrote a piece for FierceSmartGrid in which I outlined some of the reasons behind the lackluster job growth in the Smart Grid arena. While some of these obstacles are harder to overcome than others, I do not believe they will result in a stalemate for the progression of the energy efficiency movement.
As a result, hiring organizations throughout the industry need to prepare themselves for the human capital challenges that lie ahead. With an aging workforce in the utility sector, and a new breed of talent required to both develop and deploy Smart Grid technology, there is a red flag looming. Many technology vendors are already feeling this pain, and they are scrambling to redefine their HR model to ensure they are able to attract and retain this highly coveted talent pool.
What are the available solutions? We encourage you to weigh in on the issue by commenting below. While obviously biased, we believe we have a solution that can significantly improve a hiring organization's ability to identify those with the emerging skill sets required by the Smart Grid and Renewable Energy sectors. Smart Grid Careers has already done the legwork of mapping out a national database of the candidates who possess the hybrid skills required by the incorporation of two-way communication into the grid. We have also developed a new model for recruiting talent...one that not only increases efficiency but reduces cost. Many of the industry's leading vendors are already leveraging this model to gain a competitive advantage in this new hiring landscape. Learn more about our proven, one-of-a-kind solution by downloading our media kit! Or call us anytime for a free demonstration at 561-200-3248!