This presentation is a survey of human resource issues in the energy industry, which I presented at Wharton recently.

1. Human Resource Crisis in the Energy Industry
Padmabhushana R. Desam, Ph.D.
MGMT 422: Human Resource Management
20th Mar 2010

2. Acting forces (waves)
Large number of baby
boomers close to retirement
Continual increase in energy
demand
Emerging energy fields such
as solar and wind (“green”)
Lack of skilled replacement
workers
2

3. Work force demographics
50
Energy industry
All other industries
40
% by distribution
30
As of 2008, about 53% of the workforce are age 45 or older. Many of
them will either retire/prepare to retire in the next 10 years.
20
10
0
16-19 20-24 25-34 35-44 45-54 55-64 65 and
older
Source data: Power magazine & Bureau of labor statistics
3

4. Energy demand
Source: Annual energy outlook, 2010
4

5. Green energy
Workforce with specialized skills in solar, wind, and geothermal areas.
5

6. Lack of skilled workers
Less than 15% of the high school
graduates have enough science
and math background to pursue
careers in engineering
U.S. has a very high dropout rate
from colleges
U.S. ranks 14th in graduating
students from high school
Source: U.S. Department of Education
6

7. Is this really an HR problem???
• People-oriented (Technology cannot solve the problem)
• Future-oriented (Needs a strategic perspective)
• Action-oriented (Not about bookkeeping or making policies/rules)
• Global-oriented (Need to tap resources across the globe)
7

8. Human resources role
The silo that divides strategy from human resources must be
eliminated
HR must become a partner in developing the organization’s
strategy
HR managers must sharpen their business skills to promote the
growth of business
Develop programs that support career mobility, cross-referencing,
and succession planning
8

9. X
X X X X
- New approach to X X X X X
recruiting and training O O O O O O
- Knowledge transfer O O
through mentoring O
O
- New college
curriculum
- Training for green jobs
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10. New approach to recruiting and training
Minimum hiring
Build relationships with
requirements must be
local colleges and
well-defined to optimize
standardize curriculum
screening process and
and training
training
First energy
fossil operations
Training based on Create a process that
standardize practices provides real-time
and performance-based results to identify
methods in place of ad- individual development
hoc coaching needs
10

11. Knowledge transfer - PG&E
Mentoring programs between
older/more-experienced employees
and younger employees
Rotational assignments that can
broaden/deepen experience
Recruiting and hiring to create an
overlap between retiring employees
and new hires
11

12. New college curriculum - PSEG
Alignment between what is learned in the classroom
and what is needed in the workplace
Classroom instruction with technical training at a
participating organization through internships
Active participation in designing the curriculum and
teaching practical & skill-based courses
12

13. Green collar jobs - PSEG
Forge partnerships
with local
Adding alternative
government,
energy courses to
foundations, and
curriculum at local
community
colleges through
organizations for
partnerships
workforce
development
In-house training
Knowledge transfer
programs and
between green and
educational
traditional
development
employees
programs
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14. Resources
• U.S. department of labor - http://www.dol.gov/
• Power magazine - http://www.powermag.com/
• U.S. department of education - http://www.ed.gov/
• The Babcock & Wilcox company - http://www.babcock.com
• First Energy corporation - http://www.firstenergycorp.com/index.html
• Pacific Gas & Electric - http://www.pge.com/
• Public Service Enterprise Group - http://www.pseg.com/
• U.S. energy information admin - http://www.eia.doe.gov/oiaf/aeo/
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15. Thank You!!
Questions?
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Disclaimer: This cartoon does not reflect the author’s personal opinion on firing employees