The Aging Work Force at Electric Utilities

For the last decade many observers have identified the industry’s aging work force as a demographic pattern that poses critical challenges to the safe and reliable operation of many utilities, particularly the electric utilities. The figure to the right highlights an illustrative and typical example of a U.S. electric utility’s work force age composition for its distribution line constructions  organization. It shows that that nearly half of today’s workforce will be eligible for retirement within the next ten years and further illustrates the lack of experienced personnel to fill the knowledge and experience gap created by such an exodus.

Yesterday’s Challenge is Today’s Opportunity

There is a certain irony to this situation as the very reason for such a gap may actually become part of the solution. Electric utilities have had a challenge attracting for young talent since the early 1990s for a number of reasons, namely:

• The younger generation is enamored with technology and during the 1990s (and up until relatively recently) the electric industry was seen as mired in “older” 1970s and 1980s “industrial” technology.
• There has been a concerted interest in being “green”, an area where the electric industry, with its waste management and CO2 emission challenges, has traditionally been viewed less favorably than arguably more progressive industries.
• Community service has  had a strong attraction to  Generation X and Y members and thereby providing a lift to careers as firefighters, policemen, teachers, and health care professionals.

With the advent of Smart Grid, renewable energy sources, electric vehicles, renewed focus on first responder programs, and a deeper understanding of the role electricity plays in economic prosperity, the electric utilities have had the opportunity to brand themselves through these more attractive lenses. The result will likely include an:

• Influx of new talent, particularly given the uncertain prospects with respect to long-term employment in other industries subject to global competition, and
• Extension of the “retirement bubble” as the current, more experienced staff will view opportunities to provide mentoring to younger staff as desirable, and will be interested in being part of this technology transformation.

Rapid Change is Called For

Provided the electric utility industry acts quickly (and creatively), this window of opportunity offers a short-term solution. In order to sustain the progress that this confluence of factors has offered, the industry will need to challenge and change as appropriate its current HR philosophies (e.g. expectations with respect to employment contracts differ significantly and promotions will need to be based even more on performance and less on time in grade) and be more aggressive in promoting its mentoring  and knowledge management programs (i.e. the current economy may extend the retirements of the “Baby Boomers” five years, but the knowledge and experience of over 40 years needs to be captured and institutionalized as quickly as possible).