Half of the energy utility workforce will retire in the next decade. At the same time, demand for electric utility workers is rising, and 80% of companies struggle to find workers with the digital skills they need. The utility industry is at a critical juncture, facing staffing shortages, rapid digital transformation, and the shift to renewable energy.

To address these challenges, utility companies must partner with workforce solutions providers. The right partner can help with immediate staffing needs and long-term workforce planning, ensuring smooth operations and progress toward decarbonization goals.

Key Takeaways:

• Workforce Challenges: 70% of employers report difficulty filling skilled roles, and 60% of workers feel unprepared for digital advancements.

• Skills in Demand: Expertise in grid modernization, cybersecurity, renewable energy, and customer experience is essential.

• What to Look For in a Partner: Industry expertise, tailored services like training and hiring, and a focus on knowledge transfer and succession planning.

By choosing a partner with the right experience and tools, utilities can overcome workforce gaps, manage digital changes, and achieve long-term goals.

Staffing the Evolving PUC Workforce Exploring Recruitment ...

Current Utility Workforce Challenges

The utility sector is undergoing rapid changes, bringing significant staffing challenges. Here's a closer look at the roles and industry shifts driving these needs.

Key Roles and Skills in Demand

The evolving energy landscape has created an urgent need for specialized talent across various areas. Here are some of the most critical roles:

The Bureau of Labor Statistics predicts a 6% rise in demand for electric utility workers from 2019 to 2029 [1]. However, with 70% of utility employers already struggling to fill skilled positions [2], this demand highlights a critical workforce gap.

Industry Shifts Impacting Workforce Needs

The transformation of the utility sector is reshaping workforce requirements in several ways:

Digital Transformation
The adoption of smart grid technologies and IoT has widened the skills gap. About 80% of energy companies report difficulty finding workers with the digital expertise they need [2]. Adding to the challenge, nearly 60% of current workers feel unprepared for the rapid pace of these advancements [2].

Shift to Renewable Energy
The Inflation Reduction Act is expected to create 550,000 new renewable energy jobs [1], driving demand for expertise in areas like:

• Solar and wind energy integration

• Battery storage systems

• Modernizing the grid

• Managing clean energy projects

Regulatory and Security Challenges
New regulations and rising cybersecurity threats are putting additional pressure on utilities. These changes require skilled teams capable of:

• Navigating complex compliance requirements

• Safeguarding critical infrastructure from cyberattacks

• Implementing advanced security measures

• Addressing extreme weather impacts on grid reliability

Currently, only 57% of power and utility companies have clear reskilling strategies in place [1]. This gap underscores the importance of working with workforce solutions experts to develop effective talent strategies tailored to these challenges.

How to Assess Workforce Partners

As challenges in the energy sector grow, evaluating workforce partners carefully is critical to finding the right fit for your needs.

Industry Experience

Focus on partners with proven expertise in:

• Grid Modernization Projects: Look for experience in staffing roles for smart grid technologies, renewable energy integration, and infrastructure upgrades. Their history should show successful matches between specialists and the technical demands of utilities.

• Regulatory Knowledge: Partners should understand local, state, and federal regulations, including NERC standards, safety requirements, and grid reliability rules.

Also, review their service offerings to ensure they align with your operational goals.

Service Options

A strong workforce partner provides solutions tailored to utility challenges. Key service offerings to consider include:

Candidate Quality Standards

The quality of candidates is just as important as the services offered. Evaluate these key areas:

• Technical Skills Verification: Ensure the partner rigorously checks certifications, conducts technical assessments, and verifies references specific to the energy sector.

• Digital Expertise: With 60% of energy workers feeling unprepared for digital changes [2], candidates should have skills in utility software, cybersecurity, data analytics, and smart grid technologies.

• Knowledge Transfer: As 25% of the energy workforce is expected to retire by 2030 [2], partners should offer programs like mentorship, structured documentation, targeted training, and succession planning to retain institutional knowledge.

Partner Compatibility Factors

Choosing a partner whose values and approach align with your utility's needs is key to maintaining effective operations over time. A successful partnership should fit both your operational demands and organizational culture.

Company Values Match

Safety and workplace principles are the backbone of any strong utility partnership. For example, MYR Group Inc. places safety at the core of its operations, tying it directly to innovation and reliability [3]. When assessing potential partners, take a close look at their safety culture. Review their documented safety records, training programs, certifications, and audit processes. Also, ensure their core values - like integrity, respect, and innovation - align with yours.

"We act with honesty, respect and fairness, demonstrating trustworthiness in all we do. We are true to our word and follow through on our commitments." [4]

This alignment creates a solid foundation for navigating changes in the industry.

Response to Change

The utility sector is evolving, and partners must keep pace with these shifts to meet staffing and operational demands [2]. Look for partners with flexible staffing solutions and a proven track record in managing digital transformations.

"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 [1]

Be cautious of potential red flags, such as slow response times or unclear communication processes that could disrupt hiring and operational goals [5][6].

With workforce retirements increasing [2], effective partners should have programs in place for knowledge transfer, succession planning, and digital skill-building. Regular reviews - such as quarterly check-ins - can help ensure the partnership remains responsive and aligned with your goals. These types of partnerships are essential for building a strong utility staffing strategy.

Tech Tools in Workforce Management

Modern technology - like data analytics, AI-driven candidate matching, and digital management systems - makes hiring smoother and improves how utilities manage their workforce. These tools refine hiring processes and fit neatly into broader workforce strategies.

Data Analysis in Hiring

Data analytics help track job demands, qualifications, and turnover rates, giving employers the insights needed to make better staffing decisions [7]. By looking at historical workforce data, companies can identify seasonal hiring trends and predict future skill shortages.

"AI has emerged as a key force to make the hiring process more efficient and more personalized, and to create a better experience for candidates." - Jason Heilman, SVP of Product at Bullhorn [8]

For example, UPS uses predictive models to pinpoint candidates with traits like strong work ethic and customer service skills, leading to a more capable workforce [7].

AI Candidate Matching

AI takes these data insights a step further by speeding up the candidate-matching process, making recruitment faster and more accurate. A recent study found that 60% of candidates are open to AI managing their entire recruitment experience, and 81% expect job placement within 20 days [8].

Here’s how AI-powered systems benefit utilities:

Digital Management Systems

Digital tools that track skills in real time are crucial for utilities managing remote teams in tough environments. For instance, FieldCore uses Kahuna’s workforce management software to track worker competencies and improve field operations [9].

Some standout features include:

• Real-time skills tracking, even offline

• Integration with HR and operations systems

• Automated scheduling and dispatch optimization

Choosing the right tech tools can make a big difference in improving workforce efficiency and employee satisfaction. The key is finding systems that match your utility’s specific needs while delivering measurable results.

Partnership Results Tracking

Evaluate your workforce partner's performance to ensure your investment delivers measurable results. Focus on these key areas to track partnership success.

Success Metrics

Measure both short-term and long-term outcomes when assessing your staffing partner. Key metrics to monitor include:

These metrics help confirm your partner provides skilled talent in a timely and cost-effective manner.

Regular Performance Reviews

Conducting regular performance reviews - whether quarterly, bi-annually, or annually - is crucial for staying aligned with your business objectives. These reviews should cover:

• Performance against KPIs

• Response times to staffing needs

• Quality of candidate placements

• Communication efficiency

• Problem resolution speed

For example, studies show that 86% of millennials are more likely to remain with their employer if offered proper training and development opportunities [10]. Use these reviews to also assess how the partnership supports your organization's broader goals.

Business Impact Assessment

Go beyond routine reviews by analyzing the overall impact of your partnership. Focus on areas like:

• Effectiveness of training programs

• Progress toward diversity initiatives

• Gains in operational efficiency

• Employee satisfaction improvements

• Success of knowledge transfer efforts

Maintaining open communication and sharing feedback regularly are essential. This ensures your staffing partner stays flexible and aligned with your changing needs.

Conclusion

The utility sector is grappling with workforce hurdles, with 70% of employers struggling to fill skilled roles and around 25% of the energy workforce set to retire by 2030 [2]. Finding the right workforce partner is critical to addressing these issues.

Here are two key areas to focus on when selecting a partner:

• Skills and Digital Readiness: Nearly 60% of employees are unprepared for fast-paced digital adoption, and 80% of companies face challenges in finding tech-savvy talent [2]. A strong partner should offer targeted training programs and effective talent sourcing strategies.

• Workforce Planning: With half of the current energy utility workforce expected to retire in the next decade [1], partners must provide both short-term staffing solutions and strategies for building a long-term talent pipeline.

Experts emphasize the importance of a clear, forward-looking strategy spanning 10 to 20 years to make the most of the energy transition [1].

When evaluating workforce partners, focus on their industry expertise, proven results, and ability to meet your utility's specific needs. Regularly review performance and ensure success metrics align with your organization's goals to maximize long-term value.

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