The utility industry is struggling with a workforce crisis: up to 50% of employees could retire within five years, while demand for renewable energy workers is skyrocketing. To tackle this challenge, utilities need to adopt smarter hiring, training, and retention strategies. Here's a quick summary of the 7 key solutions:

• Modern Hiring Methods: Use AI tools, build a strong employer brand, and partner with recruiters.

• Effective Training Programs: Upskill current staff and collaborate with schools for future pipelines.

• Clear Career Paths: Offer career mapping, mentorship, and rotation opportunities.

• Work Flexibility: Implement remote/hybrid options and flexible scheduling.

• Adopt New Technology: Highlight clean energy projects and digital tools to attract tech-savvy talent.

• Build Talent Pipelines: Partner with schools and create apprenticeship programs.

• Competitive Pay & Benefits: Regularly review market rates and improve benefits packages.

Quick Comparison of Key Strategies

Each strategy is designed to address the immediate and long-term workforce needs of the utility sector. Dive into the full article for actionable insights on implementing these solutions.

Addressing Staffing Shortages and Transfer of Knowledge

1. Improve Hiring Methods

Utilities need to rethink their hiring strategies to address talent shortages. With an aging workforce and fewer young professionals entering the field, adopting modern approaches is crucial.

Use AI Recruitment Tools

AI-powered tools like Ashby's outreach campaigns and Filtered.AI's candidate screening process are changing the game. These tools have increased candidate reply rates by 46% and boosted satisfaction to 92% [4][3]. They simplify the hiring process by objectively screening candidates, tailoring outreach efforts, and gathering interview feedback efficiently.

"Ashby has been able to continue to innovate with AI in ways that allow us to really customize our communication. The continued quick turnaround around AI features has been impressive and needed."

• Ashby Customer [4]

Strengthen Employer Branding

A strong employer brand is key to attracting top talent. Since 2016, utilities have improved customer satisfaction by 35 points by aligning their messaging with customer values [5]. Highlighting renewable energy efforts can appeal to younger workers, especially as only 8% of the utility workforce is under 24 [6]. Promoting an inclusive workplace is also critical, given that women make up just 26% and Black or African American workers only 9% of the energy workforce [1]. Additionally, showing clear growth opportunities can make a big difference - effective onboarding alone can boost retention by 82% [6].

Partner with Industry Recruiters

With 71% of energy sector employers struggling to find skilled workers [1], teaming up with specialized recruiters can be a game-changer. These recruiters provide access to larger talent pools, train-to-hire programs, and insights into organizational needs. They also help utilities adapt to the energy transition while ensuring they build scalable and skilled teams [7].

Next, enhancing training programs will ensure both new hires and current employees are equipped for the challenges ahead.

2. Create Training Programs

With 87% of utilities expecting skill gaps and half of the workforce retiring within the next decade [8][9], training programs are no longer optional - they're essential.

Train Current Staff

The first step in effective training is to assess current skill levels and create tailored development plans. For example, Southern California Edison focuses on data analytics training to improve digital operations [12]. Similarly, DTE Energy's energy efficiency academy trains employees in home repair skills, cutting external hiring costs by 18-20% [12][8].

"This is a unique opportunity that can drive lasting change, so it's vital that utilities first develop a strategic vision of what they want to look like in 10 to 20 years and what areas of the energy transition they want to specialize in." - Jeffrey W. Miller, EY Americas Power & Utilities Strategy Lead [9]

Key strategies for training include:

• Using Learning Management Systems to track progress

• Balancing theoretical knowledge with hands-on practice

• Setting up mentorship programs to transfer expertise

• Focusing on new technologies like AI, robotics, and cybersecurity

Additionally, partnerships with educational institutions can expand training opportunities beyond the workplace.

Work with Schools

Collaborating with schools helps utilities address talent shortages early. A great example is Boyne City High School's partnership with Great Lakes Energy, Consumers Energy, and DTE Energy. Students gain hands-on experience in electrical yards, preparing them for pre-apprenticeship programs [10].

Duke Energy also partners with York Technical College, funding programs that introduce high school seniors to line work. This creates a direct pipeline for hiring skilled candidates [10]. Such partnerships offer several benefits:

• Enable industry input on curriculum

• Provide students with practical, hands-on experience

• Establish clear hiring pathways

• Lower training costs for companies

Exelon takes a long-term approach by partnering with the Cal Ripken, Sr. Foundation to develop talent early. They've opened 81 STEM centers across their service areas, giving students hands-on exposure to coding and engineering [12].

The success of these partnerships depends on consistent involvement. Regular engagement - through mentorship, field trips, and financial support - ensures programs stay relevant and build strong connections with future employees [11].

3. Set Clear Career Paths

With employee tenure decreasing by 36.8% over the past decade [2], offering clear career progression opportunities has become a key strategy for retaining talent. A well-defined career development plan not only attracts new hires but also keeps current employees motivated and aligned with company goals. This approach works hand-in-hand with earlier strategies to ensure long-term engagement and growth.

Map Career Routes

Start by reviewing your workforce to identify skill gaps and turnover patterns [13]. Use this information to create clear career paths that align employee ambitions with organizational needs. Transparent career mapping helps guide promotions and boosts retention by connecting individual goals to the company’s mission.

Here are some essential elements of career mapping:

• Skills Assessment and Development
  Regularly evaluate employee skills to uncover gaps and design targeted training programs. According to 85% of utility executives, offering the right skill-building opportunities is critical for success [2].

• Performance Review Framework
  

  Develop a structured feedback system that includes regular performance discussions, clear criteria for advancement, personalized development goals, and specific timelines.

• Career Rotation Programs
  

  Offer career rotation opportunities to help employees gain diverse experiences, uncover leadership potential, and build expertise across various functions.

Start Mentoring Programs

Mentorship programs are a powerful way to prepare future leaders, pass on essential knowledge, and strengthen internal talent pipelines. When paired with structured career paths, mentoring can address skill gaps and support succession planning.

"There is quite a lot of interest in having a formal mentorship program at our utility, so we want to discover what others are doing, or not doing, regarding this topic. A survey of the industry is a great way to gather information on a grand scale, inform our decision making, and also assisting our partner organizations that may have similar interests." - Dawn Presler, senior environmental coordinator at Snohomish County PUD [14]

To create a successful mentoring program:

• Build a diverse pool of trained mentors.

• Establish clear confidentiality guidelines.

• Define measurable outcomes to track success.

• Align mentoring efforts with career development plans.

• Schedule regular check-ins to ensure progress.

4. Offer Work Flexibility

The utility industry faces hurdles when it comes to implementing flexible work arrangements. Yet, with 68% of U.S. firms now providing flexibility in work location [15], this approach has become a key strategy for staying competitive in attracting and keeping talent.

Enable Remote Work Options

For roles that allow it, a hybrid or remote work policy can make a big difference. Andrew Zarkowsky, technology industry practice lead at The Hartford, highlights its importance:

"Giving employees the opportunity to work remotely can help businesses retain talent. It can also increase the pool of candidates for job openings since employers can search anywhere. This is critical for industries like technology and insurance that are facing a talent shortage." [18]

Here's how to make remote work effective:

• Create clear policies around equipment, technical support, data security, and communication [17].

• Address safety concerns, as 70% of employees working remotely report feeling less safe [16].

• Provide technical support through cloud-based systems.

• Measure productivity without micromanaging - over 70% of remote workers report they get more done [16].

For roles that require being on-site, flexibility can be offered in other ways, such as scheduling.

Allow Schedule Options

For hourly workers, schedule control is a top priority - 82% say it’s extremely important [19]. Utilities can rethink shift management with these strategies:

Pair flexible schedules with supportive benefits like childcare assistance and wellness programs to improve employee retention.

"Workers have largely shown that their productivity can continue and business operations are sustainable in a remote work environment." [18]

5. Focus on New Technology

Modernizing hiring and training in the utility sector now depends heavily on adopting new technology. With 91% of power and utility companies planning to invest in digital tools in the coming years [21], the industry is undergoing a major shift. This evolution is drawing in tech-savvy professionals eager to work on advanced systems and tools.

Highlight Clean Energy Projects

The utility industry is ripe with opportunities in emerging technologies. Ryan Finger, Director of Global APM Product Marketing at GE Vernova's Software Business, describes the current challenge as:

"The need for new clean energy sources, requirement of optimally running current energy sources, and the digitization of asset-intensive organizations is creating a trilemma of a new sort: a talent trilemma." [20]

To attract tech-oriented talent, utilities are exploring tools like:

• Digital Twin Technology: Used for virtual modeling and predictive maintenance

• AI and Machine Learning: Enables data-driven decision-making

• Smart Grid Solutions: Advances IoT applications

• Cloud-Based Platforms: Supports modern software development

These advancements are essential. In fact, 89% of utility executives say a shortage of workers with the right digital skills is slowing down the adoption of new technologies [21]. By focusing on these forward-thinking projects, utilities are fostering a culture of progress and creativity.

Support New Ideas

Encouraging innovation is key to attracting and keeping technical talent. Mike Rowland, national leader for Customer Experience Strategy at West Monroe, puts it bluntly:

"Stop saying your job is to keep the lights on - It is to help design a 100% clean energy future and the world is counting on us!" [22]

Forward-thinking utilities are making strides by:

• Creating Digital Workspaces
  

  Tom Hulsebosch, senior managing director of Energy & Utilities at West Monroe, explains:

  "To keep employees satisfied, utilities must reduce redundant manual tasks that don't add value, but rather empower them to be more impactful to the utility's mission and customers. A more digital workplace is great way to achieve that." [22]

• Launching Learning Ecosystems
  

  Training programs now cover skills like:

  • Programming and cloud services

  • Machine learning and data analysis

  • Cybersecurity measures

  • Network infrastructure [22]

The pandemic sped up digital adoption for 45% of utility companies [21], opening doors for tech-driven professionals to thrive in this evolving landscape.

6. Build Talent Pipelines

The utility industry relies on a steady stream of skilled workers to meet long-term goals. Partnerships with educational institutions and strong training programs are key to maintaining a reliable workforce.

Connect with Schools

Utilities are teaming up with schools to prepare future workers. For example, Duke Energy partnered with the University of North Carolina-Charlotte, Clemson University, and North Carolina State University to create the Center for Advanced Power Engineering Research. This initiative focuses on grid modernization while improving student education [24].

"If universities have active engagement from utilities and see a clear pathway for their students to obtain power industry jobs once they graduate, they may be more likely to change the curricula and invest in new professors to build more power industry-related skills" [24].

Southern Company has also made a major commitment, investing $50 million to support scholarships and training at 21 historically Black colleges and universities [24].

Successful partnerships often include:

• Input on course content and curriculum

• Funding for specialized programs and equipment

• Opportunities for guest lectures and facility tours

• Participation in career fairs and networking events

These collaborations help create a direct link between schools and training programs, ensuring a steady supply of skilled workers.

Create Training Programs

Programs that combine learning with earning are a proven way to develop utility workers. For instance, workers completing Registered Apprenticeship Programs (RAPs) earn an average of $77,000 in their first year [25]. Over their careers, these workers typically earn $300,000 more than their peers [25].

Here are two examples of successful training programs:

1. ReVision Energy: In 2018, this company launched the first employer-based apprenticeship program in the U.S. for renewable energy professionals. The program includes four years of in-house technical training leading to electrical licensure [26].

2. John A. Logan College: This college created an apprenticeship program focused on solar installation. Half of the training is work-based, giving participants hands-on experience with tasks like site preparation, racking installation, and module mounting [26].

"The discussion we're having [about workforce training] is the most important conversation in the United States about clean energy. We have the technology, we have the policies - we just need the people." [26]

Employers benefit from these programs, too, earning $1.47 for every dollar invested in apprenticeships [25]. Key features of these programs include:

• A mix of classroom learning and paid, on-the-job experience

• Clear skill development frameworks

• Regular evaluations and certifications

• Safety training

• Credentials recognized across the industry

7. Update Pay and Benefits

Offering competitive pay and benefits is crucial for attracting and keeping skilled workers in the utility sector. Over the past decade, employee tenure in this industry has dropped by 36.8% [23], highlighting the need to offer appealing compensation packages.

Keep an Eye on Market Rates

Regularly comparing pay rates with industry standards is a must. The AWWA Compensation Survey is a great resource, providing detailed data based on utility size, type, population served, number of employees, and location [27]. When analyzing market rates, focus on comparable roles, even if job titles differ. The survey includes breakdowns of salary ranges - like minimum, mid-point, and maximum figures - to help utilities stay competitive.

Introduce Performance-Based Rewards

Incorporating performance rewards can motivate employees and encourage growth. Examples include:

These types of rewards not only incentivize hard work but also create a foundation for stronger benefits programs.

Offer Better Benefits

Strong benefits packages make a job offer stand out. Utility employers already exceed national averages in many areas:

• Medical Insurance: 98% of utility employers provide coverage (compared to 69% nationally)

• Family Medical Coverage: Competitive employer contributions to premiums

• Disability Insurance: 59% offer short-term and 91% offer long-term coverage (national averages are 42% and 34%, respectively)

• Life Insurance: 96% provide access (vs. 56% nationally)

• Paid Family Leave: 30% offer this benefit (vs. 20% nationally) [28]

To remain competitive, utilities should regularly review their overall employee value proposition [23]. This includes conducting pay equity analyses across racial and gender lines to ensure fair compensation for all employees [29]. Addressing these disparities can help attract a more diverse and qualified workforce.

Conclusion

Utility companies will need an additional 205,000 workers by 2030 to meet clean energy goals [6]. The seven strategies outlined earlier provide a clear plan to tackle workforce shortages.

Interestingly, while over 80% of younger non-utility workers have a positive view of utility careers, only 6% of utility leaders feel confident in their ability to attract younger technical talent [22]. This gap presents both a challenge and an opportunity, making these strategies more important than ever.

To get the best results, utilities should focus on implementing these strategies based on their specific priorities:

These priorities highlight the essential steps utilities need to take to address workforce challenges effectively.

"If you want to take care of your customer, you need to take care of your people - who are taking care of your customers" [22]

Though recruitment challenges persist [1], many organizations are already seeing positive outcomes from their strategic efforts. A thoughtful and balanced approach will be key to long-term success.

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