Covering the Gaps
Exploring the Workforce Needs Created by the Clean Energy Transition
Exploring the Workforce Needs of the Clean Energy Transition
The utility industry is experiencing substantial load growth not seen in decades driving by demand for:
- New data centers
- A boom in domestic manufacturing
- Electrification of transportation and buildings
In response to economic conditions and evolving policy drivers, many utilities are committing to their largest capital expenditure plans to:
- Meet demand growth
- Modernize and harden the grid
- Decarbonize the energy supply
Meanwhile, recent trends in the utility workforce show the industry is:
- Less experienced than it has been in decades
- More transient
- Requiring new and different skillsets to fill a growing number of emerging technology jobs
The utility industry is experiencing substantial load growth that has not been seen in decades driven by demand for:
- New data centers
- A boom in domestic manufacturing
- Electrification of transportation and buildings
In response to economic conditions and evolving policy drivers, many utilities are committing to their largest capital expenditure plans to:
- Meet demand growth
- Modernize and harden the grid
- Decarbonize the energy supply
Meanwhile, recent trends in the utility workforce show that the industry is:
- Less experienced than it has been in decades
- More transient
- Requiring new and different skillsets to fill a growing number of emerging technology jobs
End-to-End Workforce Planning and Development
Given these dynamic market conditions, it is critical that utilities align the needs of the business with a focused people strategy. ScottMadden recommends approaching this integration as an end-to-end workforce planning and development framework.
Ultimately, the alignment can occur either business unit by business unit or at the enterprise level. Either way, it will require a partnership between business leaders and HR to understand if/how current skills align with forward-looking strategies and develop targeted approaches to close the gaps through acquiring new skills or developing existing talent.
Internal vs. External Workforce Decisions
Specifically, utilities are facing critical decisions regarding whether to address workforce gaps through internal resources or external hires. There are three typical pathways:
Contract
Leverage external contractors
Recruit
Recruit new, experienced personnel
Develop
Develop talent/skills internally
We recommend addressing a series of questions to help business leaders make this critical resource decision.
Six Key Questions to Ask While Deciding Whether to Contract, Recruit, or Develop Talent
These questions can help facilitate the partnership between the business and HR as they consider the tradeoffs and benefits of each potential strategy. Each situation is unique, and the answer is rarely straightforward. The example scenarios below highlight how the questions can be used to develop tailored strategies based on a unique need.
