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

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

Executive Summary Qualification requirements for employment in the Smart Grid sector are rigorous, with many employers seeking candidates with advanced degrees, a host of ancillary certifications and highly specialized work experience. Those meeting these stringent standards are becoming a coveted group of highly sought after hires, and the cost of recruiting them is on the rise, as evidenced by increasing salaries and a more widespread use of hiring bonuses. Understanding the inherent challenges in recruiting and retaining this elusive group, some employers are beginning to tap into the new graduate pool of Smart Grid hopefuls. However, this strategy is not without its roadblocks, as comprehensive, Smart Grid curricula that incorporates the hands-on experience needed to fully develop a candidate’s skills is far from prolific. This report, outlining the findings of an inaugural study conducted by Zpryme and Smart Grid Careers, provides potential Smart Grid candidates with the detailed data they need to understand what it takes to break into and/or advance their career in this dynamic industry sector. 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.

Definitions

• New Hire: A candidate who has no previous work experience (outside internships).

• Experienced New Hire: A candidate who has

previous relevant work experience. Key Findings

1. Eighty-two percent of hiring managers indicated that new hires required at least a Bachelor’s degree to fill Smart Grid roles, 40% required a Master’s degree, and 27% required some type of additional Certification.

2. The required majors for Bachelor’s degrees were most often electrical engineering, computer science/engineering, and business. Master degree major requirements were the same: electrical engineering, computer science/engineering, and business. Certifications most often mentioned were Smart Grid, Utility/GIS, Renewable Engineering, PMP, PJM, CE, Cyber Security, IT, and Communications.

3. The top three additional skill requirements for new hires were analytical skills, problem-solving skills, and attention to detail. When asked to rank all additional skills, the highest scores were given to: analytical skills and problem-solving skills (first-place tie), and being a team player.


4. Among experienced new hires, the top three demonstrated skill requirements beyond academic requirements were: project management, consulting experience, and supervisory/management experience.

5. Years of experience that were needed by a successful experienced new hire were most often four to five years (47%).

6. Eighty-nine percent of hiring managers indicated that experienced new hires required at least a Bachelor’s degree to fill Smart Grid roles, 49% required a Master’s degree, and 34% required some type of additional Certification.

7. Among experienced new hires, the required majors for bachelor’s degrees were most often electrical engineering, business, and computer science /engineering. Master degree major requirements were the same: electrical engineering, business, and engineering. Certifications most often mentioned were PMP, PMI, CEM, Networks and Controls Systems, and Power Domain.

8. The top three additional skill requirements for experienced new hires were analytical skills, problem-solving skills, and good oral communication. When asked to rank all additional skills, the highest scores were given

to: problem-solving skills, being a team player, and analytical skills.

See pages 5 – 17 to learn more.


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 Their 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 both 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



Academic Requirements and Skills for New Hires Overall, hiring managers indicated that the large majority of their new hires are required to have a Bachelor’s degree. Analytical and problem skills were the top two most desired additional skills required for new hires. Academic and Certification Requirements

• Eighty-two percent of hiring managers indicated that new hires required at least a Bachelor’s degree to fill Smart Grid roles, 40% required a Master’s degree, and 27% required some type of additional Certification.

• The required majors for Bachelor’s degrees were

most often electrical engineering (11%), computer science/engineering (5%), and business (3%). Master degree major requirements were the same: electrical engineering (5%), computer science/engineering (2%), and business (2%). Certifications most often mentioned were Smart Grid, Utility/GIS, Renewable Engineering, PMP, PJM, CE, Cyber Security, IT, and Communications.

Additional Skills Required

• The top three additional skill requirements for new hires were analytical skills, problem-solving skills, and attention to detail.

• When asked to rank all additional skills, the highest scores were given to: analytical skills and problem

solving-skills (first-place tie), and being a team player.

22%

27%

40%

82%

Other

Certification

Master’s degree

Bachelor’s degree

0% 20% 40% 60% 80% 100%

What Are Your Academic/Certification Requirements for New Hires?



26% 35%

51% 51%

58% 62%

69% 71% 71%

75% 80%

86% 87%

Sales abilityStress tolerance

Business acumen/insightsCustomer focus/service skills

Interpersonal skillsTaking initiative

Team playerGood oral communication

Good written communicationGood computer skills

Attention to detailProblem-solving skills

Analytical skills

0% 20% 40% 60% 80% 100%

What Additional Skills are Required for New Hires? (figure 5, source: Zpryme & SmartGridCareers.com)

12% 12%

16% 22%

29% 31% 31%

35% 37% 39%

43% 45% 45%

Business acumen/insightsSales ability

Stress toleranceCustomer focus/service skills

Interpersonal skillsGood computer skills

Good written communicationGood oral communication

Attention to detailTaking initiative

Team playerAnalytical skills

Problem-solving skills

0% 20% 40% 60%

Ranking of Additional Skills for new hires? % Who Said Skill Was Most Important



Academic Requirements and Skills for Experienced New Hires Overall, hiring managers indicated that the large majority of experienced new hires are required to have a Bachelor’s degree, while just under half require a Master’s degree. Analytical and problem skills were the top two most desired additional skills required by experienced new hires. Academic and Certification Requirements

• Eighty-nine percent of hiring managers indicated that experienced new hires required at least a Bachelor’s degree to fill Smart Grid roles, 49% required a Master’s degree, and 34% required some sort of additional Certification.

• The required majors for Bachelor’s degrees were

most often electrical engineering (33%), business (8%), and computer science/engineering (4%). Master degree major requirements were the same: electrical engineering (9%), business (8%), and engineering (general) (3%). Certifications most often mentioned were PMP, PMI, CEM, Networks and Controls Systems, and Power Domain.

Additional Skills Required

• The top three additional skill requirements for experienced new hires were analytical skills, problem-solving skills, and good oral communication.

• When asked to rank all additional skills, the highest scores were given to: problem-solving skills, being a team player, and analytical skills.

14%

34%

49%

89%

Other

Certification

Master’s degree

Bachelor’s degree

0% 20% 40% 60% 80% 100%

What Are Your Academic/Certification Requirements for Experienced New Hires?



Demonstrated Skills Required

• The top three demonstrated skill requirements beyond academic requirements were: project management (72%), consulting experience (63%), and supervisory/management experience (53%).

Years of Relevant Experience Required

• Years of experience that were needed by a successful experienced new hire were most often four to five years (47%). The second most frequent experience requirement was six to 10 years (26%).

47% 49%

64% 67% 67% 67% 68%

71% 75% 76% 77% 77%

82%

Sales abilityStress toleranceTaking initiative

Customer focus/service skillsGood computer skills

Interpersonal skillsBusiness acumen/insights

Attention to detailTeam player

Good written communicationGood oral communication

Problem-solving skillsAnalytical skills

0% 20% 40% 60% 80% 100%

What Additional Skills are Required for Experienced New Hires?


18% 25%

29%

34% 36%

38% 38% 39%

45% 46%

51% 52%

58%

Sales abilityStress tolerance

Good computer skillsInterpersonal skills

Business acumen/insightsAttention to detail

Customer focus/service skillsGood written communication

Good oral communicationTaking initiativeAnalytical skills

Team playerProblem-solving skills

0% 10% 20% 30% 40% 50% 60% 70%

Ranking of Additional Skills for Experienced New Hires? % Who Said Skill Was Most Important


23%

24%

34%

43%

53%

63%

72%

Hardware testing

Hardware development

Software testing

Software development

Management experience

Consulting experience

Project management

0% 10% 20% 30% 40% 50% 60% 70% 80%

What Demonstrated Skill Sets are Required for Experienced New Hires?



1, 4%

2 – 3, 15%

4 – 5, 47%

6 – 10, 26%

Over 10, 8%

How Many Years of Relevant Experience are Required for Experienced New Hires?



Conclusions & Recommendations

1. Collegiate Smart Grid Hopefuls: Adopt the 6-to-8 Year Plan College students can increase their odds of successfully landing a career in the Smart Grid by pursuing a Master’s degree immediately following the completion of their Bachelor’s degree. Forty percent of Smart Grid hiring managers require this additional education before they will even consider a candidate without work experience.

2. Working Bachelors: Go Back to School

Candidates who have already joined the workforce can open the door to incremental opportunities by pursuing a higher level of education. Forty-nine percent of hiring managers are looking for a Master’s degree when seeking to bring on an experienced new hire.

3. Degree of Choice? Engineering, Engineering,

Engineering! It should come as no surprise that most Smart Grid roles require some sort of engineering background. It’s also no secret that electrical and computer engineering knowledge is crucial to the development of Smart Grid technologies. Both new graduates and those already in the workforce will need this background to sustain successful careers in this sector. As the number of engineering graduates being turned out by U.S. colleges and

universities has virtually stagnated, engineers of all types are in high demand across a wide variety of industries. However, engineers pursuing a career in the Smart Grid can expect to earn up to twenty percent more than their counterparts in other industries.

4. Going Above and Beyond: Laser-Focused Specialty

Certification and Training Hiring managers surveyed in this study listed a wide variety of additional certifications and specialty training on their “must have” list for evaluating potential hires. However, the question is where can a candidate get this training? Unfortunately, at this early stage in curricula development, there isn’t a national clearinghouse that offers a comprehensive list of available training and/or educational offerings. Candidates can start by researching the programs funded by the DOE for Smart Grid workforce training and development. Subsequent reports conducted by Zpryme and SmartGridCareers.com will take a deeper dive into the educational programs that are successfully producing candidates with the specialty training desired in this sector.

5. Honing Important Skills: The Importance of Seeking

Applicable Work Experience Hiring managers sent a very clear message regarding the importance of analytical and problem solving skills for both new and experienced Smart Grid hires. Candidates of all types should seek


out opportunities to hone these skills by pursuing internships and/or permanent roles where these skills can be exercised and developed. For those already in the workforce, hiring managers listed project management, consulting and management experience on their top three list for the most sought after demonstrated skill sets. Why? Project management skills are crucial in industries where new technologies are being developed at a very rapid pace, especially in industry segments where competition is prolific. These skills are also vital when there is a need to manage transformational change. The Smart Grid sector qualifies on both accounts. As for consulting experience, the desire for this skill set reflects the industry’s need to understand the full breadth of available technologies and their relevant applications. It’s the only way to stay ahead of the competition. The need for management skills is a good indication of future growth. Whether achieved organically, by raising capital or through acquisition, Smart Grid technology vendors are supporting their growth plans by adding human resources…offering both new and experienced hires limitless opportunity.


Q&A: Echelon Jeff Lund VP of Business Development www.echelon.com ZP: How should current university students be preparing for a career that works closely with the Smart Grid?

JL: The smart grid is a very broad industry, with opportunities for student with both technical and business backgrounds. On the technical side, it is important for young engineers to understand more about the nature of the electric grid. The more they understand what “makes the grid tick”, the better prepared they will be to invent the new technologies needed to make the grid smarter and more efficient. Likewise for students interested in the business side of the smart grid, the more they understand about the market structure and economics of the smart grid, the better prepared they will be to construct business cases, devise product plans, and explain the benefits to regulators , consumers, and utilities.

ZP: Do you foresee hiring for Smart Grid roles continuing to increase in 2013?

JL: We believe it will remain the same.


Q&A: Itron Tim Wolf Director of Smart Grid Solutions www.itron.com ZP: How should current university students be preparing for a career that works closely with the Smart Grid?

TW: The smart grid transcends traditional organizational silos in utilities and fundamentally transforms the utility-customer relationship, and as a result, new skill sets and competencies will be required to successfully build, integrate and operate the modern grid. While traditional power engineering skills will still be in demand, increasing focus and value will be placed on IT-centered skills around system design, architecture, security and data management. In addition, innovative business, communication and collaboration skills will be critical to assuring cross-functional success. The ability to define new business processes, communicate and coordinate will be every bit as important to success in a smart grid world as engineering skills. University students should seek internships within the field during the summertime and stay on top of current events by joining different groups representing the smart grid.


TW: Yes, as there will always be the need to keep up with new technologies as advancements in smart grid applications and assets (e.g. distribution automation,

renewables, storage, etc.) shape the next phase of energy distribution and management.


Q&A: S&C Electric Company Wanda Reder VP of Power Systems Services www.sandc.com ZP: How should current university students be preparing for a career that works closely with the Smart Grid?

WR: Due to the interdisciplinary nature of the Smart Grid, students should be taking power engineering classes and seeking to diversify their educational experience to gain knowledge in power electronics, renewables, communications, cyber security, environment, consumer behavior and networking which all play into the Smart Grid. They should also participate in internships to augment their classroom work with real world experience and access to the latest technologies. Students should also participate in industry organizations like IEEE where Smart Grid advancements are featured at conferences, highlighted through social media, featured on web-sites (eg. http://smartgrid.ieee.org/) and discussed in peer-reviewed publications. In doing so, students gain a broader perspective of the industry, develop a professional network, stay in touch with technical advancements, and develop an understanding of career opportunities. Finally, www.pes-careers.org is a great tool for power engineering students both in school and up to one year out of school to find and apply for Smart Grid-related jobs in the US and Canada.


WR: Absolutely. There has been a forecast of upwards of 50% of the power industry workforce to leave in the coming years. Some of this workforce has decided to stay longer due to economy, but they will eventually want to retire and move on. This will leave a big hole in technical talent unless we begin hiring and training a new generation of engineers today. Smart Grid jobs are here, and they are here to stay. The hiring for these Smart Grid jobs is happening and will continue to increase in the future.

http://smartgrid.ieee.org/

http://www.pes-careers.org/


Q&A: Siemens Siemens Smart Grid Division www.siemens.com ZP: How should current university students be preparing for a career that works closely with the Smart Grid?

Siemens: Engineering degrees with focus on power systems, plus IT courses, software development and knowledge of the electrical grid - Masters preferred.


Siemens: We see it as a global megatrend. The political, economic global climate will affect this positively and negatively but mostly agree the need for efficient and smart creation and consumption of electrical power is more critical every day which means the need for talent will continue far into the future. What an exciting industry to be in!


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)

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