[Smart Grid Market Research] Smart Grid Hiring Trends Study (Part 1 of 2) - Zpryme Smart Grid Insights

3 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

Executive Summary Within the Smart Grid ecosystem, the time for human resources strategy development is now. Forward-thinking utilities, technology vendors, power engineering companies, universities, and government agencies will not try to reinvent the wheel, but rather leverage as many best practices as possible. This inaugural study by Zpryme and Smartgridcareers.com gives Smart Grid hiring managers the baseline data they need to start benchmarking their human capital strategy. The key findings and recommendations of this report will help utilities and Smart Grid vendors anticipate the challenges that lie ahead. Further, universities across the United States must begin to educate a new generation of energy leaders from diverse backgrounds in computer engineering, computer science, and engineering-focused IT. Methodology The Smart Grid Hiring Trends 2012 study was conducted by surveying 184 Smart Grid Hiring Managers and Executives in June 2012. Only one response per company was allowed for the study. Only U.S. based executives and managers who played a role in making hiring decisions for Smart Grid-related roles at their respective companies were allowed to respond to the survey. Key Findings

1. The overall average number of employees hired increased from 24.8 in 2010 to 25.7 in 2011. However, Hiring

Managers estimated that their overall hiring would decrease in 2012, to 15.9 employees, on average. The study was conducted in June of 2012, thus this estimate should be interpreted with caution. That said, there is a net positive hiring growth trend in the Smart Grid industry.

2. Companies with 501 to 1,000 employees hired an average of 27.0 employees in 2010 and 36.6 employees in 2011. These companies also indicated that they would increase the average number of employees they hire in 2012 (45.8). This is not surprising since these companies are likely more established than smaller companies in the Smart Grid industry, but not as heavily staffed as larger companies.

3. Fifty-nine percent of hiring managers said that starting salaries for new hires are increasing. The average annual compensation for new hires without previous experience was $55,600.

4. Sixty-five percent of hiring managers said that starting salaries for experienced hires are increasing. The average annual compensation for Experienced Engineers/ Operations Professionals is $93,800, while it is $119,200 for Senior Experienced Engineers/ Operational Professionals. The average compensation for Experienced Management Professionals was $136,000. The average compensation for Experienced Directors and Executive Managers was $175,000 and $190,000, respectively.


5. Starting salaries between new hires and Experienced new hires were significantly different by position. However, the data indicate that Smart Grid career opportunities can be financially rewarding for employees with management skills and advanced engineering expertise.

6. Overall, the use of hiring bonuses was found to be more common for Experienced new hires. Among the managers that indicated that they did use hiring bonuses for new hires, the largest group (33%) indicated a bonus amount of $1,001 to $2,500. Among the managers that indicated that they did use hiring bonuses for Experienced new hires, the largest group (29%) indicated a bonus amount of $5,001 to $10,000.

7. The time needed to recruit both new hires and Experienced new hires is increasing, but hiring managers indicate that it takes longer to recruit Experienced new hires.

8. For new hires without previous experience, the top sources cited for recruiting were headhunters and referrals from industry contacts. Respondents identified referrals from industry contacts, word-of-mouth from current employees, and headhunters as their top sources for recruiting experienced industry professionals.

9. Sharing best hiring practices with industry and professionals organizations was expressed to be the main way hiring managers would solve their long-term hiring challenges.

10. Mentoring programs with employees who already have skill sets for Smart Grid roles was chosen as the top training method to build Smart Grid skills.

11. According to the hiring managers, executive leadership and hiring managers were most likely to set Smart Grid hiring policies at their respective companies and organizations.

12. Sixteen percent of respondents said that retention of Smart Grid employees is a large problem. When asked about how retention of Smart Grid employees has changed over the past five years, 24% said that employees are staying less time now.

13. Seventy-seven percent of hiring managers indicated that they allow Smart Grid employees to telecommute. Among those that said they allow telecommuting, 32% said they have allowed telecommuting for over 5 years. Thirty-eight percent indicated they have allowed telecommuting for 2 – 3 years.


Survey Respondent Characteristics Company Size Forty-one percent of hiring managers said they worked for companies with 1 to 100 employees, 16% worked for companies with 101 to 500 employees, 6% worked for companies with 501 to 1,000 employees, and the remaining 37% said they worked for companies with 1,000 or more employees.

Job Title The titles of those managers who responded were (in descending order of frequency*): Director (39%); Manager (26%); Vice President (13%); CEO (9%); President (7%); and Consultant (6%).

1 to 100, 41%

101 to 500, 16%

501 to 1,000, 6%

1,000 or more, 37%

Percent of Respondents by Number of Employees in Thier Company

(figure 1, source: Zpryme & Smartgridcareers.com)

Director, 39%

CEO, 9% President, 7%

Vice President,

13%

Consultant, 6%

Manager, 26%

Percent of Respondents by Job Title (figure 2, source: Zpryme & Smartgridcareers.com)


Type of Smart Grid Employees Hired About half (49%) of the hiring managers in the study said their company only hired experienced new hires with previous work experience. The other half (51%) said they hired new hires without previous work experience (outside internships) AND experienced new hires with previous work experience.

Sectors Served by Respondents The hiring managers in the study represented 25 Smart Grid sectors. Sectors with the largest representation in the study were AMI, distribution automation, demand response, utility systems, meter data management, network management, communications, and utility operations.

Sectors Served by Respondents

(table 1, source: Zpryme & Smartgridcareers.com)

Sector % of Respondents AMI 62% Appliances 16% Battery technologies 19% (BAN/HAN), energy management systems 36% Community Energy Storage (CES) 22% Chips 4% Communication (HW/SW/Control) 44% Consumer advocacy 18% Demand response 59% Distributed automation: communications and software 61% Distributed automation: hardware and sensors 47% Distributed generation and storage 33% Electric vehicle technologies 30% FAN 10% GIS 29% Greentech: PV solar, storage 23% HVAC and building control systems 22% LAN 27% Meter data management (MDM) 47% NAN 20% Network management 47% Security 42% Smart meter manufacturers 32% Utility operations 43% Utility systems development/integration and consulting 50%

New Hires without previous

work experience

AND Experienced New Hires ,

51%

Only Experienced

New Hires with

previous work

experience, 49%

What Type of Smart Grid Employees Does Your Company Hire



Total Hires by Company Size, 2010 – 2012 The overall average number of employees hired increased from 24.8 in 2010 to 25.7 in 2011. However, hiring managers estimated that their overall hiring would decrease in 2012, to 15.9 employees, on average. The study was conducted in June of 2012, thus this estimate should be interpreted with caution. That said, there is a net positive hiring growth trend in the Smart Grid industry.

• Companies with 1 – 100 employees showed an increasing hiring trend from 2010 to 2012. Although the hiring growth is minimal for these firms, it does indicate that these firms are slowly growing.

• Companies with 101 – 500 employees showed an

increasing hiring trend from 2010 to 2011. However, they estimated that their hiring would decrease in 2012. That said, the overall trend is positive as these companies are still hiring talented employees, just not at the rate they were hiring in 2010 and 2011.

• Companies with 501 to 1,000 employees hired an

average of 27.0 employees in 2010 and 36.6 employees in 2011. These companies also indicated that they would increase the average number of employees they hire in 2012 to 45.8. This is not surprising since these companies are likely more established than smaller companies in the Smart Grid industry, but not as heavily staffed as larger companies.

• Companies with 1,000 or more employees accounted for 60 percent of the hiring in 2010 and 2011. However, from 2010 to 2011 the average number of employees hired by companies of this size decreased from 53.6 to 45.2. They also estimated that their hiring would decrease significantly in 2012. That said, the overall trend is positive as these companies are still hiring talented employees, just not at the rate they were hiring in 2010 and 2011.

*2012 are estimated hires provided by each respondent.

5.8

25.6 27.0

53.6

24.8

6.9

25.9

36.6

45.2

25.7

7.5

16.2

45.8

22.6

15.9

0

10

20

30

40

50

60

1- 100 101 - 500 501 - 1000 Over 1000 OverallAverage

Average Number of Smart Grid Hires By Number Employees in Company

2010 - 2012* (figure 4, source: Zpryme & Smartgridcareers.com)

2010 2011 2012


Average Annual Compensation by Position Fifty-nine percent of hiring managers said that starting salaries for new hires are increasing (both slightly and greatly). The average annual compensation for new hires without previous experience was $55,600. Sixty-five percent of hiring managers said that starting salaries for experienced hires are increasing (both slightly and greatly). The average annual compensation for Experienced Engineers/ Operations Professionals is $93,800, while it is $119,200 for Senior Experienced Engineers/ Operational Professionals. The average compensation for Experienced Management Professionals was $136,000. The average compensation for Experienced Directors and Executive Managers was $175,000 and $190,000, respectively.

$55,600

$93,800

$119,200

$136,000

$175,000

$190,000

$0 $50,000 $100,000 $150,000 $200,000

New Hires*

Engineers/OperationsProfessionals

Sr. Engineers/OperationsProfessionals

Management Professionals

Directors

Executive Managers

Average Annaul Compensation by Position (figure 5, source: Zpryme & Smartgridcareers.com)

Yes, they are increasing

greatly, 13%


slightly, 46%

Yes, they are decreasing slightly, 2%

Yes, they are decreasing greatly, 2%

No, they are staying the same, 37%

Are Starting Salaries for new hires Changing? (figure 6, source: Zpryme & Smartgridcareers.com)


greatly, 16%


slightly, 49%

Yes, they are decreasing slightly, 3%

Yes, they are decreasing greatly, 2%

No, they are staying the same, 30%

Are Starting Salaries for Experienced New Hires Changing?



As expected, starting salaries between new hires and Experienced new hires was significantly different by position. However, the data indicate that Smart Grid career opportunities can be financially rewarding for employees with management skills and advanced engineering expertise.

• Among new hires, the most common starting salary was $40,001 to $60,000 (46%).

• Among Experienced Engineers & Operation Professionals, the most common starting salary was $80,001 to $100,000 (31%).

• Among Senior Experienced Engineers & Operation Professionals, the most common starting salary was $100,001 to $125,000 (29%). Fourteen percent indicated they started at over $150,000.

• Among Experienced Management Professionals, the most common starting salary was $125,001 to $150,000 (40%). Sixteen percent indicated they started at over $150,000.

• Among Experienced Directors, the highest most common salary was $175,001 to $200,000 (24%). Thirteen percent indicated they started at over $200,000.

• Among Experienced Executive Managers, the most common starting salary $175,001 to $200,000 (28%). However, 24% indicated they started at over $200,000.

9% 13%

46%

20%

9% 4%

0%

10%

20%

30%

40%

50%

Up to$25,000

$25,001 to$40,000

$40,001 to$60,000

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

Distribution of New Hire Average Annual Compensation (figure 8, source: Zpryme & Smartgridcareers.com)

3% 2% 6%

20%

31%

22%

10% 6%

0%

10%

20%

30%

40%

Up to$25,000

$25,001 to$40,000

$40,001 to$60,000

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

$125,001 to$150,000

Over$150,000

Distribution of Experienced Engineer & Operation Professionals Average Annual Compensation



1% 2%

8%

20%

29% 26%

14%

0%

10%

20%

30%

40%

Up to$25,000

$25,001 to$40,000

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

$125,001 to$150,000

Over$150,000

Distribution of Experienced Sr. Engineer & Operation Professionals Average Annual Compensation


3% 2% 4%

15% 19%

40%

16%

0%

10%

20%

30%

40%

50%

$25,001 to$40,000

$40,001 to$60,000

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

$125,001 to$150,000

Over$150,000

Distribution of Experienced Management Professionals Average Annual Compensation


2% 5%

21%

18% 18%

24%

13%

0%

10%

20%

30%

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

$125,001 to$150,000

$150,001 -$175,000

$175,001 -$200,000

Over$200,000

Distribution of Experienced Directors Average Annual Compensation


5% 6%

2%

11%

23%

28% 24%

0%

10%

20%

30%

$60,001 to$80,000

$80,001 to$100,000

$100,001 to$125,000

$125,001 to$150,000

$150,001 -$175,000

$175,001 -$200,000

Over$200,000

Distribution of Experienced Executive Managers Average Annual Compensation



Bonuses Overall, the use of hiring bonuses was found to be more common for Experienced new hires than for new hires. New Hires

• A large majority (71%) of hiring managers indicated that they did not use bonuses for new hires.

• Among the managers that indicated that they did

use hiring bonuses, 17% said they have been using bonuses for 2 – 3 years.

• Among the managers that indicated that they did use hiring bonuses, the largest group (33%) indicated a bonus amount of $1,001 to $2,500.

Experienced New Hires

• About half (49%) of hiring managers indicated that they use bonuses for Experienced Hires.

• Among the managers that indicated that they did use hiring bonuses, 15% said they have been using bonuses for over 5 years.

• Among the managers that indicated that they did

use hiring bonuses, the largest group (29%) indicated a bonus amount of $5,001 to $10,000.

We don’t use bonuses

for new hires, 71%

1 year, 5%

2 – 3 years, 17%

4 – 5 years, 2%

Over 5 years, 5%

How Long Have Bonuses Been Used For new hires? (figure 14, source: Zpryme & Smartgridcareers.com)

Up to $500, 8%

$501 to $1000, 25%

$1001 to $2500, 33%

$2501 to $5000, 25%

Over $5,000, 8%

What is the Average Hiring Bonus for new hires? (figure 15, source: Zpryme & Smartgridcareers.com)


Length of Time to Recruit Smart Grid Employees Overall, the time needed to recruit both new hires and experienced hires is increasing, but hiring managers indicate that it takes longer to recruit Experienced new hires. New Hires

• Six percent of the managers indicated that it takes 7 – 12 months to recruit a new hire.

• Four percent of the managers indicated that it takes over a year to recruit a new hire.

• Twenty-five percent said the time it takes to recruit new hires without previous experience is getting longer.


• Ten percent of the managers indicated that it takes 7 – 12 months to recruit an Experienced New Hire.

• Nine percent of the managers indicated that it takes over a year to recruit an Experienced New Hire.

• Forty-five percent said the time to recruit

Experienced new hires is getting longer.

We don’t use bonuses

for experienced

hires, 51%

1 year, 14%

2 – 3 years, 12%

4 – 5 years, 7%

Over 5 years, 15%

How Long Have Bonuses Been Used For Experienced Hires?


Up to $500, 2% $501 to

$1000, 5%

$1001 to $2500, 12%

$2501 to $5000, 24%

$5001 to $10,000, 29%

$10,001 to $20,000, 24%

Over $20,000, 5%

What is The Average Hiring Bonuses For Experienced Hires?



2 – 4 weeks, 16%

One month, 16%

2 – 3 months, 35%

4 – 6 months, 22%

7 – 12 months, 6%

Over one year, 4%

How Long Does it Take to Recruit a New Hire? (figure 18, source: Zpryme & Smartgridcareers.com)

Yes, gotten longer, 25%

Yes, gotten shorter, 10%

No, still about the same, 65%

Has The Length of Time Needed to Recruit a New Hire Changed?


2 – 4 weeks, 10%

One month, 16%

2 – 3 months, 32%

4 – 6 months, 24%

7 – 12 months, 10%

Over one year, 9%

How Long Does it Take to Recruit an Experienced Hire? (figure 20, source: Zpryme & Smartgridcareers.com)

Yes, gotten longer, 45%

Yes, gotten shorter, 11%

No, still about the same, 45%

Has The Length of Time Needed to Recruit an Experienced Hire Changed?



Leading Sources for Recruiting For new hires without previous experience, the top sources cited for recruiting were headhunters and referrals from industry contacts. Respondents identified referrals from industry contacts, word-of-mouth from current employees, and headhunters as their top sources for recruiting experienced industry professionals. New Hires

• Twenty-two percent of hiring managers said their top choice for recruiting new hires was referrals from industry contacts and headhunters/recruiters.

• Fifteen percent said their top choice for recruiting

new hires was word-of-mouth, universities, and job boards were.


• Thirty-five percent of hiring managers said their top choice for recruiting Experienced new hires was referrals from industry contacts.

• Twenty-three percent of hiring managers said their

top choice for recruiting Experienced new hires was word-of-mouth.

• Twenty-two percent of hiring managers said their top choice for recruiting Experienced new hires was headhunters/recruiters.

9%

15%

15%

15%

22%

22%

Internet

Job boards

Universities/Colleges

Word-of-mouth (currentemployees)

Headhunters/Recruiters

Referrals from industry contacts

0% 10% 20% 30%

What Are Your Top Sources For Recruiting new hires?


3%

4% 4%

9%

22%

23%

35%

Industry organizations

Job boards

Universities/Colleges

Internet

Headhunters/Recruiters

Word-of-mouth (current employees)

Referrals from industry contacts

0% 10% 20% 30% 40%

What Are Your Top Sources For Recruiting Experienced Hires?



Solving Long-Term Hiring Issues Sharing best hiring practices with industry and professionals organizations was expressed to be the main way hiring managers would solve their long-term hiring challenges. The hiring managers were asked how they were going to solve their long-term hiring challenges and their choices were (in descending order of frequency): networking with industry or professional organizations to share best practices for successful hiring (66%); ask consultants to research and propose recommendations (33%); ask human resources (HR) to build a database on successful hires and/or statistically modeling commonalities that successful hires share (33%); establish internal team to research and propose recommendations (28%); and, last, ask university/college to research and propose recommendations (15%).

How Do You Plan to Solve Your Long-Term Hiring Challenges for Smart Grid Roles?


Selection % of Respondents

Networking with industry or professional organizations to share best practices for successful hiring 66%

Ask consultants to research and propose recommendations 33%

Ask HR to build a database on successful hires (tracking where successful hires come from and/or statistically modeling commonalities that successful hires share)

30%

Establish internal team to research and propose recommendations 28%

Ask university/college to research and propose recommendations 15%

Other 9%

Smart Grid Training Efforts Mentoring programs with employees who already have skill sets for Smart Grid roles was chosen as the top training method to build Smart Grid skills. Another way to build Smart Grid expertise within an organization is to establish training programs. The hiring managers’ preferences (again, in descending order) were: mentoring programs with employees who already have skills (63%); a tie between training by outside consultants and training programs/certifications using professional organizations like IEEE or EPCE (both at 26%); an internal online training program run by HR (25%); internship programs (24%); training/certification programs by local college/university (22%); and an internal offline training program run by HR (13%).

What Training Efforts Have Been Undertaken to Build Smart Grid Skills within Your Organization?



Mentoring programs with employees who already have these skill sets 63%

Training by outside consultants 26% Training programs/certifications that can be completed via a professional organizations such as IEEE, EPCE, etc. 26%

Internal online training programs run by HR 25%

Internship programs to groom new graduates 24% Training programs/certifications that can be completed at a local college/university 22%

Other 17%

Internal offline training programs run by HR 13%

Internal video training programs run by HR 11%


Smart Grid Hiring Policies According to the hiring managers in the study, the level in organizations that establishes hiring policy for Smart Grid employees was: executive leadership (39%), hiring managers (35%), HR (11%), mid-level managers (7%), and the board of directors (2%).

Retention of Smart Grid Employees Sixteen percent of respondents said that retention of Smart Grid employees is a large problem. When asked about how retention of Smart Grid employees has changed over the past five years, 24% said that employees are staying less time now.

2%

7%

7%

11%

35%

39%

Board of directors

Mid-levelmanagers

Other

HR

Hiring managers

Executiveleadership

0% 10% 20% 30% 40% 50%

Who Establishes The Hiring Policies for Smart Grid Employees?


Employees are staying longer now,

19%

Employees are staying about the same now,

58%

Employees are staying

less time now, 24%

Has The Retention of Smart Grid Employees Changed Over The Past Years?


A moderate problem,

36%

A large problem,

16%

Not a problem,

28%

Retention of Smart Grid Employees Is: (figure 26, source: Zpryme & Smartgridcareers.com)


Telecommuting Just over three out of four (77%) hiring managers indicated that they allow Smart Grid employees to telecommute.

• Forty-four percent let employees at all levels telecommute.

• Nine percent only let lower-level and mid-level

employees telecommute.

• Among those that said they allow telecommuting, 32% said they have allowed telecommuting for over 5 years. Thirty-eight percent indicated they have allowed telecommuting for 2 – 3 years.

• Twenty-one percent said they have only allowed telecommuting for 1 year.

Does Your Company Allow Smart Grid Employees to Telecommute?



Yes, and at all levels 44%

No 23%

Yes, but only at lower levels 9%

Yes, but only at mid-levels 9%

Yes, but only at the executive and mid-levels 8%

Yes, but only at mid and lower levels 7%

Yes, but only at executive levels 1%

1 year, 21%

2 – 3 years, 38%

4 – 5 years, 10%

Over 5 years, 32%

How Long Have You Allowed Smart Grid Employees to Telecommute?



Conclusions & Recommendations

1. Salaries for Smart Grid Roles are on the Rise and Surpass Industry Averages in the Engineering Sector

Fifty-nine percent of hiring managers reported that starting salaries for new hires (those without previous work experience outside of internships) are increasing. This percentage increased to sixty-five percent for experienced hires. The average starting salary for an experienced engineer was $93,800, eight percent higher than the industry average for a comparable position according to Salary.com. Engineering managers in the Smart Grid are even more highly compensated, taking home an average of 20% more than their counterparts in other industries.

What’s the net for the utility sector? The budgeting process must take these evolving compensation requirements into account. It’s not even a matter of being able to attract the “best” talent. It’s more about being able to afford the candidates who possess the skills needed to achieve proficiency in Smart Grid operations.

Survey respondents also reported leveraging hiring bonuses to land the talent they need. While only 29% of participants stated that they leverage hiring bonuses as part of their recruitment strategy for new hires, nearly half employ this tactic for experienced hires. Twenty-four percent of Smart Grid hiring managers reported paying experienced hires signing bonuses in the $10,001-$20,000 range, and

another 29% indicated a range of $5,001-$10,000. Not exactly chump change when you consider the volume of hiring that will have to occur in the utility sector as nearly half of this workforce approaches retirement.

We also predict hiring bonus usage will accelerate dramatically in the new hire category as Smart Grid curricula become more readily available, more comprehensive in nature, and more widely accepted as sufficient training. Hiring managers in both the vendor space and the utility sector will naturally gravitate to this less expensive alternative to meet their human capital requirements. Initially, the competition for these new Smart Grid graduates will be fierce as the talent pool will remain relatively small until this curriculum becomes more prolific. However, even if the use of hiring bonuses becomes more commonplace, the overall cost of recruiting a new hire will still remain less than hiring an experienced candidate.

2. The Recruitment Process Takes Time and Requires

Advance Planning

Forty-five percent of survey respondents indicated that the length of time required to recruit an experienced hire has increased, with 19% responding that the process now takes over seven months. Recruitment of new hires seems to be a little easier and less time consuming according to those surveyed, with only 25% responding that the process is getting longer, and 90% reporting that the process is successfully being completed within six


months. However, these timeframes will only increase over time, as there will continue to be a significant shortage of viable candidates. Utilities should anticipate that this process will be arduous for the foreseeable future, as it will take time to encourage the nation’s collegiate recruits to pursue a career in the Smart Grid.

Our suggestion for those responsible for hiring in the utility sector? Identify the skill sets you anticipate needing and then pull the trigger on the recruitment process at least a year in advance, especially if there is a need for multiple candidates with similar qualifications in the same geographic area.

3. Retention Requires Strategy

The Smart Grid human resources challenge does not end with the successful hire of a qualified candidate. Over half those surveyed labeled the retention of Smart Grid employees as a “moderate to large” problem. And while only 24% indicated that employees’ tenure is declining, the writing is on the wall.

Utilities that are physically located in the same geographic area as a Smart Grid technology vendor will have the most difficult time retaining employees, as these vendors will aggressively court their employees. To make matters worse, technology vendors are in the more advantageous position of being able to adjust their p & l on the fly, giving them the flexibility to up the ante when needed to secure qualified talent.

Our advice for utilities? Perform temperature checks on employees frequently. Engage them on a personal level. Think out of the box when creating work schedules. Vendors are already way ahead of the game. For example, 77% of survey respondents indicated that they allow some employees to telecommute. While this type of arrangement is not always viable for all types of utility workers, it should be offered to those whose job function does not require them to be physically onsite. The human resources team within a utility has to evolve from a payroll processing department to a dynamic, team-leading, employee-developing entity that is highly in tune with the needs and wants of its workforce.

4. Connections, Affiliations, and Networking are Vital to

Recruitment Success

A utility will need to be actively engaged within the industry to ensure success in recruiting qualified talent. While headhunters will continue to play an instrumental role in identifying potential candidates (22% of respondents said their top choice for recruiting both new and experienced hires was headhunters), industry contacts (according to survey participants) are extremely useful in the overall recruitment process. While it may seem obvious, the only way to secure industry contacts is to actively seek them out by joining relevant professional organizations, attending industry events, and becoming more active within social media forums.


5. Training May Require Outside Resources

When asked what types of training initiatives vendors are currently leveraging to address the current skill set gap, an overwhelming majority (63%) indicated that they rely on mentoring programs with employees who already have the desired skill sets to bring their employees up to speed. As many utilities do not yet have these skill sets in their wheelhouse, this sector will most likely have to evaluate the use of outside resources (consultants) to perform the training function until a base of skilled employees can be developed. Budgetary consideration needs to be given to this process, and the training itself should be taking place in the very near future (if not started already) to ensure training is completed as quickly as possible.


Q&A: Echelon Jeff Lund VP of Business Development www.echelon.com ZP: How has your company attracted new talent to fill Smart Grid roles? (eg. networking, recruiters, LinkedIn, conferences, referrals etc.)

JL: Echelon uses a variety of methods to attract new talent – we are active in LinkedIn, working closely with recruiters, and tapping our employees for referrals.

ZP: Overall, how can the industry work together to train and build the Smart Grid work force of tomorrow?

JL: One great advantage that the Smart Grid has as an industry is that we have a generation of young people entering the workforce that is conscious of energy as a precious resource to be carefully managed. Even simple things like being taught from early childhood to turn the lights off when they leave a room has made the idea of conserving energy almost an instinctive behavior. The next generation of workers also have a growing concern around the impact of energy consumption of the environment. The Smart Grid industry can tap into these trends by making available education and other materials that reinforce the idea that energy is an important resource to manage for both economic and

environmental reasons and show how the Smart Grid is an area where young students can have a positive impact and a rewarding career.


Q&A: Itron Tim Wolf Director of Smart Grid Solutions www.itron.com ZP: How has your company attracted new talent to fill Smart Grid roles? (eg. networking, recruiters, LinkedIn, conferences, referrals etc.)

TW: Many of our candidates come from networking at industry events and online venues such as LinkedIn. Leveraging social media is a key component of successfully recruiting a new generation of workers for the Smart Grid world. We also rely on referrals from current employees and internships that turn into full time positions.


TW: In many respects, the Smart Grid industry is still evolving. As a result, universities, industry organizations and associations have not yet developed fully formed programs to the degree necessary to support a vibrant training grounds for the future Smart Grid workforce. Given the significant infrastructure and resource challenges ahead, utilities, technology vendors, academia and other stakeholders must continue to commit time, financial resources and expertise to the development of the next generation workforce.


Q&A: S&C Electric Company Wanda Reder VP of Power Systems Services www.sandc.com ZP: How has your company attracted new talent to fill Smart Grid roles? (eg. networking, recruiters, LinkedIn, conferences, referrals etc.)

WR: All of these tools are used -- we are active in industry associations and technical working groups to network. In addition, we participate in job fairs that are held in conjunction with major conferences and on campuses to meet students and introduce them to our company and we occasionally use recruiters to make connections with experienced professionals. S&C has also developed a relationship with the academic community where we work with both professors and students to discover potential hires. We’ve found referrals and word of mouth from these communities to be the best resources, but online recruitment and social networking tools like LinkedIn are becoming more applicable.


WR: The IEEE Power & Energy Society Scholarship Plus Initiative is a great example of how industry is helping to develop tomorrow’s Smart Grid work force. Industry and individual contributions are providing the financial support to award up to $7000 of scholarships to

selected undergraduate engineers committed to the field of power and energy who meet academic and career experience requirements. This is intended to increase the number of people available for Smart Grid positions in anticipation of significant workforce retirement rates in the upcoming years. Convincing students to commit to Smart Grid careers and its contribution to a vibrant U.S. economy requires continuous industry commitment where financial support, meaningful career experiences, mentorship, professional networking and lifelong education are needed. In addition, industry needs to be actively involved in curriculum development by providing adjunct professors, lab equipment, technical projects and other resources to facilitate real world experience for the students. When industry and the academic community come together, tremendous value can result from the development of innovative technologies, design methods, and new Smart Grid applications.


Q&A: Siemens Siemens Smart Grid Division www.siemens.com ZP: How has your company attracted new talent to fill Smart Grid roles? (eg. networking, recruiters, LinkedIn, conferences, referrals etc.)

Siemens: We use all available resources, university campus recruiting, linked in, professional recruiting agencies, and the best of all, networking and referrals.


Siemens: Yes, it is important for companies to work together, and we see ourselves working more and more with not just traditional "utility" or "hardware" companies, but also with software companies. Those companies are more and more important and Siemens is aligning with them closely, as evidenced by our acquisition at the beginning of this year with eMeter Corporation.


About Zpryme Smart Grid Insights Practice:

Zpryme-powered Smart Grid Insight Practice (link) and our Smart Grid Insights Advisory Board (link) help organizations understand their business environment, engage consumers, inspire innovation, and take action. These practices represent an evolution beyond traditional market research and consulting: combining sound fundamentals, innovative tools and methodologies, industry experience, and creative marketing savvy to supercharge clients’ success. At Zpryme, we don’t produce tables and charts; we deliver opportunity-focused, actionable insight that is both engaging and easy-to-digest. For more information regarding our custom research, visit: www.zpryme.com.

Zpryme Smart Grid Insights Contact: [email protected] | +1 888.ZPRYME.1 (+1 888.977.9631) www.smartgridresearch.org (Zpryme Smart Grid Insights) www.zpryme.com (Zpryme Main Website)

About Smartgridcareers.com:

SmartGridCareers.com is a niche recruiting firm offering a comprehensive suite of human resources solutions to the Smart Grid industry. Leveraging a powerful combination of experience, expertise and cutting-edge technology, SmartGridCareers.com has established a proven track record of pinpointing candidates with the emerging skill sets required by the Smart Grid and Renewable Energy sectors. For more information, visit: www.smartgridcareers.com.

Zpryme Credits:

Editor Pimjai Hoontrakul

Managing Editor Robert Langston

Research Lead Stefan Trifonov

Contributors:

Echelon (Jeff Lund, VP of Business Development) Itron (Tim Wolf, Director of Smart Grid Solutions) S&C Electric Company (Wanda Reder, VP of Power Systems Services) Siemens (Siemens Smart Grid Division)

Disclaimer:

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[Smart Grid Market Research] Smart Grid Hiring Trends Study (Part 1 of 2) - Zpryme Smart Grid Insights

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