Workforce Challenges of Electric Sector Employers

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Workforce Challenges of Electric Sector
Employers

• Summary of
• Research Findings
• Alan Hardcastle
• Senior Research Associate
• June 26, 2008

Mossy Rock Dam Photo courtesy of Tacoma Power
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Electric Sector Workforce Study Sponsors

• Center of Excellence for Energy
• Technology, Centralia College
• IBEW Local 77
• Lewis County EDC
• Pacific Mountain WDC
• State Board for Community
• Technical Colleges
• Tacoma Power
• Thurston-Lewis-Mason
• Central Labor Council

Stator units at Grand Coulee Dam Third
Powerplant Photo courtesy of United States
Bureau of Reclamation
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Electric Sector Workforce SurveyPurpose and
Design

• Needs assessment of the industry
• Existing data insufficient
• Understand workforce issues
• Benchmark for HR planning
• Boost responsiveness
• 12 Regional employers
• WA and OR
• Industry composition
• Five key occupational groups
• Operator
• Line Worker
• Mechanic
• Electrician
• Technician

Line School Instructor Photo courtesy of Avista
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Participating Employers
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National Context Three Major Factors

• Impending Retirements
• Shrinking Labor
• Pool
• Knowledge and
• Skill Gaps

Maintenance employees walk through the juvenile
fish bypass Photo courtesy of Chelan County PUD
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Regional Context

• Economic Impact
• Workforce demographics
• Future labor supply
• Education and training

Workers service a wind turbine at the Nine Mile
Canyon Facility Photo courtesy of Energy
Northwest
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High Wage Employment
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Electricity Demand Increasing

• Between 2003-2025 electricity demand in the
  Pacific Northwest is forecast to increase by
  around 40 percent (around 7,000 aMW)
• Source Northwest Power and Conservation Council,
  2005

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Electric Power Generation
Source U.S. Department of Energy, Energy
Information Administration, 2007.
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Problem 1 An Aging Workforce

• Nationally, the average age of utility craft
  workers is 50 years old.
• Highest average age of any industry sector
• Around 50 of U.S. utility workers are projected
  to retire over the next 10 years
• 200,000 highly-skilled workers will exit
• Source Electric Power Research Institute (EPRI)

Mobile Workstation Photo courtesy of Puget Sound
Energy
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Workforce Demographics
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Population Dynamics
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Problem 2 Skill Shortages
Source Washington State Workforce Training and
Education Coordinating Board, 2006.
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Problem 3 Workforce Supply
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Workforce Supply Problem contd
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Apprenticeship
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Survey ResultsTopics Covered

• Current and future employment demand
• Employment levels and future hiring
• Retirement forecasts and replacement
• Hiring challenges
• Workforce and succession plans, strategies
• Partnerships with colleges, others
• Apprenticeship/pre-apprenticeship
• Outreach to K-12 schools, students

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Current Employment in 5 Target Occupations
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Staffing projections thru 2009
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Retirement forecast thru 2011
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Vacancies
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Key Hiring Challenges

• General shortage of qualified applicants
• Occupational shortages cut across industry
  sectors
• Increased recruiting and hiring costs
• Filling the skills gap with subcontractors and
  overtime
• Adjusting hiring expectations and processes
• Work conditions as a challenge to recruiting and
  hiring
• A lack of workforce diversity
• Specific jobs Line workers, technicians and
  electricians
• Engineering (EEs)

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Workforce Succession Planning

• Few employers have formalized processes
• Internal/external drivers
• Informal approach typical
• Management focus
• New commitment to planning
• Effective models in use
• Implementation challenges

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Two-Year College Connections

• Limited in number and scope
• Apprenticeship
• Recruiting/hiring priority
• Internal focus
• Notable partnerships
• Reaching out

Control Center Photo courtesy of TransAlta
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Apprenticeship
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Apprenticeship Enrollments
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Apprenticeship Issues

• A Big Investment
• For an apprentice, its a three year program, a
  half-million dollar investment. So were serious
  about making sure theyll succeed.
• ROI
• We need to spend the money to get them through
  an apprenticeship, but we also need to look at
  retention. We cant keep stealing from each
  other.
• Expanding Capacity

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Pre-Apprenticeship Training

• Eight employers routinely hire new employees into
  trainee-level positions that are preparatory to
  various craft occupations.
• High school graduates
• Locals as trainees
• Develop a pool for regular apprenticeships
• Resistance/support from Unions

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K-12 Outreach

• Building a K-12 pipeline
• More strategic
• Specific recruiting goals
• ROI
• Competing priorities
• Image problem
• Skills and knowledge
• matter

Setting a Pole Photo courtesy of Snohomish
County PUD
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Conclusions (Challenges)

• Labor shortages already here, will worsen
• Recruiting and hiring challenges increasing
• Workforce and succession planning informal

McNary Substation in Umatilla Oregon Photo
courtesy of Bonneville Power Administration
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Conclusions (Challenges 2)

• Two-year college connections limited
• Apprenticeship capacity insufficient
• K-12 outreach underdeveloped

System Control Map Photo courtesy of Grays
Harbor PUD
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Implications

• Retirement effect
• Skills vacuum
• Replacement churn
• Limited labor pool
• Wage pressure
• Competitive disadvantage
• Is Industry Prepared?

IBEW Local 77 Apprentices raise the US flag at
the Center of Excellence for Energy
Technology 2007 Energy Summit Photo courtesy of
Seattle City Light
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Implications 2

• Short and long-term strategies, solutions
• Encourage employees to delay retirements
• Re-hire retirees to fill skill gaps, train new
  workers
• Restructure jobs, increase use of technologies
• Expand internal and external training options
• Increase use of incentives, pay and benefit
  options to attract and retain workers
• Restore apprenticeship capacity
• Expand college partnerships skills, innovative
  new programs, career options

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Implications 3

• To boost labor supply, grow the pipeline
• Outreach to students, parents, educators
• Build awareness, re-define the image
• Reinforce skill requirements (STEM)
• Work-based learning opportunities
• The future workforce women, minorities
• Expand education and training capacity
• Coordinated action for industry support

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Future Research

• Engineering workforce Engineering workforce
  demand and skill requirements
• Apprenticeship Analysis of apprenticeship trends
  and capacity issues for craft occupations
• Succession planning Best Practices model for
  workforce and succession planning
• Renewable energy and energy efficiency Analysis
  of current/future job demand and skills for clean
  energy occupations

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Electric Sector Workforce Challenges

• Next Steps
• Disseminate Study
• Presentations to Industry
• and Stakeholders
• Future Research and Action
• Contact
• Alan Hardcastle
• Senior Research Associate
• WSU Energy Program
• [phone]
• hardcast_at_wsu.edu

Bigelow Canyon sunrise Photo courtesy of Portland
General Electric
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