Preparing for an impending shift and attracting new talent
Utility Workforce Survey 2017 Preparing for an impending shift and attracting new talent
In association with
Executive Summary S
outhwire Company, LLC, North America’s leading manufacturer of
workforce. To this end, the data from the survey
wire and cable used in the distribution and
serves to provide a reference point for what has
transmission of electricity, partnered with the Dive Brand Studio to survey the Utility Dive audience about the state of the utility industry workforce and the ongoing transition. A great deal of anecdotal information is shared about how the average age of the utility employee is increasing, and how approximately 50% of the utility workforce will be retiring over the next few years. What hasn’t been added to the conversation is more data that dives into the nuances
2
of the ongoing changes impacting the utility
50% been, up until now, anecdotes.
of the utility workforce will be retiring over the next few years.
S
urveying a cross-section of the Utility Dive audience (155 respondents in total)
showed some themes that are unsurprising.
3
the next 10 years. The highest percentage, 44% of the respondents, indicated that between 20-40% of their engineering workforce would
On the question of percentage of the engineer-
be retiring. This number aligns with the
ing workforce retiring in the next 10 years, 30%
anecdotal information that has been spread
of respondents indicated that less than 20% of
about the impending issues with skilled engi-
their engineering workforce would retire within
neering labor in the utility workforce.
What percentage of your existing engineering workforce plans on retiring in the next 10 years? Percent of workforce retiring in 10 years
The Utility Workforce & Millennials
30.3%
0 - 20%
43.9%
20% - 40%
20.0%
40% - 60%
Over 60%
5.8%
What percentage of your engineering workforce are currently millennials? (Born after 1980)
Percent of millennial engineering workforce
0 - 5%
18.1%
15% - 25%
Over 35%
retiring within the next 10 years reveals that
dents who stated that only between 0-20% of
about 30% of the respondents expect approxi-
their engineering workforce would be retiring
mately 50% of their engineering workforce to
in the next 10 years. This seems to be a counter
retire. This suggests that survey respondents are
to prevailing narrative and is an indication
worried about the future of the utility industry,
that there is a demographic talent, spread
which bears out in the responses to the second
within utilities, that can be harnessed to ease
question about the percentage of the engineer-
the transition between the high number of
ing workforce made up of millennials. Only
retiring employees and the next generation of
24.5% of the respondents indicated an engineer-
29.0% engineers being recruited into the industry.
5% - 15%
25% - 35%
4
16.8%
A surprising result was the 30% of the respon-
11.6%
24.5%
ing workforce with millennials making up more than 35% of employees. 75.5% of the respon-
Adding together the respondents who indicated
dents have an engineering workforce with less
that over 40% of their workforce would be
than 35% being millennials.
75%
of the respondents have an engineering workforce with less than 35% being millennials.
This inability to attract “digital natives” in an increasingly digital age must be rectified. Research has also shown that these millennials/digital natives are more attuned to cause-based companies and approaches to
How do you intend to reach out to millennials to meet your engineering hiring requirements? Hiring more millennial HR representatives
28.4%
doing business. Thankfully, the respondents to the survey recognize this, with a whopping 68.4% of the respondents suggesting that their
Implementing cutting-edge technology, like renewable energy projects and microgrids
68.4%
approach toward attracting the engineering talent will involve the implementation of
76.1%
Partnerships with universities
renewable energy and cutting edge technology. There is also a recognition that the traditional methods of recruiting will no longer work
74.2%
Mentorship programs
as 76.1% of respondents said they’d partner with universities and 74.2% of respondents indicated a willingness to provide mentorship.
5
More focus on sustainability and CSR to appeal to millennials
52.9%
What are some of the differences your company must address between millennial engineers and established engineers? 67.7% 58.1%
55.5%
50.3%
25.2%
Different levels of Knowledge of information technology primary vendors in competencies the market
6
22.6%
Competency with regards to traditional specs
Teamwork and collaboration styles
Smart-grid technical knowledge
20.6%
Integrating new perspectives and technology
Computer modelling skills
There was less consensus in what approaches
tion technology competencies (58.1%) and
might be best utilized to address the differ-
changing the traditional job specs (55.5%).
ences between millennial and established
There was less interest in approaches like
engineers. Respondents favored approaches
computer modelling skills (20.6%), smart
like changing teamwork and collaboration
grid technical skills (22.6%) and knowledge
styles (67.7%), bridging the gap in informa-
of vendors in the market (25.2%).
The skew of the responses to differences that
addresses the challenges these utility firms
innovative projects in the pipeline (64.5%) were
need to be addressed show that the respon-
face in attracting, motivating and retaining
all responsible for the difficulty. It was positively
dents understand the impact culture plays
young engineering talent. A high percentage
refreshing to see that the least challenges were
in the inability to attract or retain millennial
of the respondents indicated that issues such
being found in hiring domestic talent to fill
engineers. This is evident in the responses
as corporate culture (69.7%), competition from
current roles, an indication that talent is still
to the final question on the survey, which
outside engineering firms (64.5%) and keeping
being developed locally.
What challenges do you face when trying to attract, motivate and retain good young engineering talent? 64.5%
64.5%
62.6%
69.7%
38.7%
Competition from outside engineering firms – EPCs
7
Keeping innovative or interesting projects in the pipeline
Domestic talent shortages and having to look abroad to fill current roles
Ability to provide extra benefits
Corporate culture
Conclusion I
n an industry where technology is changing and advancing at an
Increase the recruitment efforts of
laborative approach to work, with the millennial
millennial engineers by focusing on more
engineers teaching the more established
‘Internet of Things’ and software-based en-
engineers in the advanced technology, and the
that the transition is both an industry and a
gineering skills. There is an opportunity to
established engineers in turn training the mil-
national challenge. Everyone is seeing the same
attract talent from other industries, such as
lennials in industry skills. This collaborative
issues across the industry and companies need
automotive and oil & gas, which have been able
approach enhances the skill level and quality of
to prepare for the shift. The data shows where
to target and train millennials. The silver lining
work for the entire engineering workforce as the
the problems might lie and, using the data,
is that this crop of millennial engineers are
utility industry enters the future.
companies can focus their attention on areas
familiar with heavy machinery and have seen
that can be addressed to attract industry talent.
the decline in jobs within these sectors due to
This research survey, the analysis and recom-
Southwire recognizes that the success of all
increasing automation.
mendations are made with a belief that they
increasing pace, these survey results show
parties in the ecosystems — manufacturers, utilities, developers, engineering firms — will
8
1
2
will be helpful to the ecosystem as a whole, Retrain the current engineering workforce,
as we all navigate this transition, because we
depend on our ability to attract new talent and
but also help them to become mentors to the
believe that Southwire’s success is tied to the
suggest two approaches:
younger group of millennial engineers. A col-
success of the ecosystem, our customers.
A leader in technology and innovation, Southwire Company, LLC is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture building wire and cable, metal-clad cable, utility cable, portable and electronic cord products, OEM wire products and engineered products. In addition, Southwire supplies assembled products, contractor equipment and hand tools. For more on Southwire’s products, its community involvement and its vision of sustainability, visit www.southwire.com.
LEARN MORE
In association with
Executive Summary S
outhwire Company, LLC, North America’s leading manufacturer of
workforce. To this end, the data from the survey
wire and cable used in the distribution and
serves to provide a reference point for what has
transmission of electricity, partnered with the Dive Brand Studio to survey the Utility Dive audience about the state of the utility industry workforce and the ongoing transition. A great deal of anecdotal information is shared about how the average age of the utility employee is increasing, and how approximately 50% of the utility workforce will be retiring over the next few years. What hasn’t been added to the conversation is more data that dives into the nuances
2
of the ongoing changes impacting the utility
50% been, up until now, anecdotes.
of the utility workforce will be retiring over the next few years.
S
urveying a cross-section of the Utility Dive audience (155 respondents in total)
showed some themes that are unsurprising.
3
the next 10 years. The highest percentage, 44% of the respondents, indicated that between 20-40% of their engineering workforce would
On the question of percentage of the engineer-
be retiring. This number aligns with the
ing workforce retiring in the next 10 years, 30%
anecdotal information that has been spread
of respondents indicated that less than 20% of
about the impending issues with skilled engi-
their engineering workforce would retire within
neering labor in the utility workforce.
What percentage of your existing engineering workforce plans on retiring in the next 10 years? Percent of workforce retiring in 10 years
The Utility Workforce & Millennials
30.3%
0 - 20%
43.9%
20% - 40%
20.0%
40% - 60%
Over 60%
5.8%
What percentage of your engineering workforce are currently millennials? (Born after 1980)
Percent of millennial engineering workforce
0 - 5%
18.1%
15% - 25%
Over 35%
retiring within the next 10 years reveals that
dents who stated that only between 0-20% of
about 30% of the respondents expect approxi-
their engineering workforce would be retiring
mately 50% of their engineering workforce to
in the next 10 years. This seems to be a counter
retire. This suggests that survey respondents are
to prevailing narrative and is an indication
worried about the future of the utility industry,
that there is a demographic talent, spread
which bears out in the responses to the second
within utilities, that can be harnessed to ease
question about the percentage of the engineer-
the transition between the high number of
ing workforce made up of millennials. Only
retiring employees and the next generation of
24.5% of the respondents indicated an engineer-
29.0% engineers being recruited into the industry.
5% - 15%
25% - 35%
4
16.8%
A surprising result was the 30% of the respon-
11.6%
24.5%
ing workforce with millennials making up more than 35% of employees. 75.5% of the respon-
Adding together the respondents who indicated
dents have an engineering workforce with less
that over 40% of their workforce would be
than 35% being millennials.
75%
of the respondents have an engineering workforce with less than 35% being millennials.
This inability to attract “digital natives” in an increasingly digital age must be rectified. Research has also shown that these millennials/digital natives are more attuned to cause-based companies and approaches to
How do you intend to reach out to millennials to meet your engineering hiring requirements? Hiring more millennial HR representatives
28.4%
doing business. Thankfully, the respondents to the survey recognize this, with a whopping 68.4% of the respondents suggesting that their
Implementing cutting-edge technology, like renewable energy projects and microgrids
68.4%
approach toward attracting the engineering talent will involve the implementation of
76.1%
Partnerships with universities
renewable energy and cutting edge technology. There is also a recognition that the traditional methods of recruiting will no longer work
74.2%
Mentorship programs
as 76.1% of respondents said they’d partner with universities and 74.2% of respondents indicated a willingness to provide mentorship.
5
More focus on sustainability and CSR to appeal to millennials
52.9%
What are some of the differences your company must address between millennial engineers and established engineers? 67.7% 58.1%
55.5%
50.3%
25.2%
Different levels of Knowledge of information technology primary vendors in competencies the market
6
22.6%
Competency with regards to traditional specs
Teamwork and collaboration styles
Smart-grid technical knowledge
20.6%
Integrating new perspectives and technology
Computer modelling skills
There was less consensus in what approaches
tion technology competencies (58.1%) and
might be best utilized to address the differ-
changing the traditional job specs (55.5%).
ences between millennial and established
There was less interest in approaches like
engineers. Respondents favored approaches
computer modelling skills (20.6%), smart
like changing teamwork and collaboration
grid technical skills (22.6%) and knowledge
styles (67.7%), bridging the gap in informa-
of vendors in the market (25.2%).
The skew of the responses to differences that
addresses the challenges these utility firms
innovative projects in the pipeline (64.5%) were
need to be addressed show that the respon-
face in attracting, motivating and retaining
all responsible for the difficulty. It was positively
dents understand the impact culture plays
young engineering talent. A high percentage
refreshing to see that the least challenges were
in the inability to attract or retain millennial
of the respondents indicated that issues such
being found in hiring domestic talent to fill
engineers. This is evident in the responses
as corporate culture (69.7%), competition from
current roles, an indication that talent is still
to the final question on the survey, which
outside engineering firms (64.5%) and keeping
being developed locally.
What challenges do you face when trying to attract, motivate and retain good young engineering talent? 64.5%
64.5%
62.6%
69.7%
38.7%
Competition from outside engineering firms – EPCs
7
Keeping innovative or interesting projects in the pipeline
Domestic talent shortages and having to look abroad to fill current roles
Ability to provide extra benefits
Corporate culture
Conclusion I
n an industry where technology is changing and advancing at an
Increase the recruitment efforts of
laborative approach to work, with the millennial
millennial engineers by focusing on more
engineers teaching the more established
‘Internet of Things’ and software-based en-
engineers in the advanced technology, and the
that the transition is both an industry and a
gineering skills. There is an opportunity to
established engineers in turn training the mil-
national challenge. Everyone is seeing the same
attract talent from other industries, such as
lennials in industry skills. This collaborative
issues across the industry and companies need
automotive and oil & gas, which have been able
approach enhances the skill level and quality of
to prepare for the shift. The data shows where
to target and train millennials. The silver lining
work for the entire engineering workforce as the
the problems might lie and, using the data,
is that this crop of millennial engineers are
utility industry enters the future.
companies can focus their attention on areas
familiar with heavy machinery and have seen
that can be addressed to attract industry talent.
the decline in jobs within these sectors due to
This research survey, the analysis and recom-
Southwire recognizes that the success of all
increasing automation.
mendations are made with a belief that they
increasing pace, these survey results show
parties in the ecosystems — manufacturers, utilities, developers, engineering firms — will
8
1
2
will be helpful to the ecosystem as a whole, Retrain the current engineering workforce,
as we all navigate this transition, because we
depend on our ability to attract new talent and
but also help them to become mentors to the
believe that Southwire’s success is tied to the
suggest two approaches:
younger group of millennial engineers. A col-
success of the ecosystem, our customers.
A leader in technology and innovation, Southwire Company, LLC is one of North America’s largest wire and cable producers. Southwire and its subsidiaries manufacture building wire and cable, metal-clad cable, utility cable, portable and electronic cord products, OEM wire products and engineered products. In addition, Southwire supplies assembled products, contractor equipment and hand tools. For more on Southwire’s products, its community involvement and its vision of sustainability, visit www.southwire.com.
LEARN MORE
