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

553 views

Published on

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.

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
553
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
9
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

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

  1. 1. Executive Summary Managers estimated that their overall hiring would decrease in 2012, to 15.9 employees, on average. TheWithin the Smart Grid ecosystem, the time for human study was conducted in June of 2012, thus this estimateresources strategy development is now. Forward-thinking should be interpreted with caution. That said, there is a netutilities, technology vendors, power engineering positive hiring growth trend in the Smart Grid industry. 2.companies, universities, and government agencies will nottry to reinvent the wheel, but rather leverage as many bestpractices as possible. This inaugural study by Zpryme and Companies with 501 to 1,000 employees hired anSmartgridcareers.com gives Smart Grid hiring managers average of 27.0 employees in 2010 and 36.6 employees inthe baseline data they need to start benchmarking their 2011. These companies also indicated that they wouldhuman capital strategy. The key findings and increase the average number of employees they hire inrecommendations of this report will help utilities and Smart 2012 (45.8). This is not surprising since these companies areGrid vendors anticipate the challenges that lie ahead. likely more established than smaller companies in theFurther, universities across the United States must begin to Smart Grid industry, but not as heavily staffed as largereducate a new generation of energy leaders from diverse companies. 3.backgrounds in computer engineering, computer science,and engineering-focused IT. Fifty-nine percent of hiring managers said thatMethodology starting salaries for new hires are increasing. The average annual compensation for new hires without previousThe Smart Grid Hiring Trends 2012 study was conducted by experience was $55,600. 4.surveying 184 Smart Grid Hiring Managers and Executivesin June 2012. Only one response per company was Sixty-five percent of hiring managers said thatallowed for the study. Only U.S. based executives andmanagers who played a role in making hiring decisions for starting salaries for experienced hires are increasing. The average annual compensation for Experienced Engineers/Smart Grid-related roles at their respective companieswere allowed to respond to the survey. Operations Professionals is $93,800, while it is $119,200 for Senior Experienced Engineers/ Operational Professionals.Key Findings The average compensation for Experienced Management Professionals was $136,000. The average compensation for Experienced Directors and Executive Managers was1. The overall average number of employees hiredincreased from 24.8 in 2010 to 25.7 in 2011. However, Hiring $175,000 and $190,000, respectively.3 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  2. 2. 5. Starting salaries between new hires andExperienced new hires were significantly different by 9. Sharing best hiring practices with industry and professionals organizations was expressed to be the mainposition. However, the data indicate that Smart Grid way hiring managers would solve their long-term hiringcareer opportunities can be financially rewarding for challenges. 10.employees with management skills and advancedengineering expertise.6. Mentoring programs with employees who already have skill sets for Smart Grid roles was chosen as Overall, the use of hiring bonuses was found to be the top training method to build Smart Grid skills. 11.more common for Experienced new hires. Among themanagers that indicated that they did use hiring bonusesfor new hires, the largest group (33%) indicated a bonus According to the hiring managers, executiveamount of $1,001 to $2,500. Among the managers that leadership and hiring managers were most likely to setindicated that they did use hiring bonuses for Experienced Smart Grid hiring policies at their respective companiesnew hires, the largest group (29%) indicated a bonus and organizations. 12.amount of $5,001 to $10,000.7. The time needed to recruit both new hires andExperienced new hires is increasing, but hiring managers Sixteen percent of respondents said that retention of Smart Grid employees is a large problem. When asked about how retention of Smart Gridindicate that it takes longer to recruit Experienced new employees has changed over the past five years, 24% saidhires. that employees are staying less time now.8. For new hires without previous experience, the topsources cited for recruiting were headhunters and referrals 13. Seventy-seven percent of hiring managers indicated that they allow Smart Grid employees tofrom industry contacts. Respondents identified referrals telecommute. Among those that said they allowfrom industry contacts, word-of-mouth from current telecommuting, 32% said they have allowedemployees, and headhunters as their top sources for telecommuting for over 5 years. Thirty-eight percentrecruiting experienced industry professionals. indicated they have allowed telecommuting for 2 – 3 years.4 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  3. 3. Survey Respondent Characteristics Job TitleCompany Size The titles of those managers who responded were (in descending order of frequency*): Director (39%); ManagerForty-one percent of hiring managers said they worked for (26%); Vice President (13%); CEO (9%); President (7%); andcompanies with 1 to 100 employees, 16% worked for Consultant (6%).companies with 101 to 500 employees, 6% worked forcompanies with 501 to 1,000 employees, and the Percent of Respondents by Job Titleremaining 37% said they worked for companies with 1,000 (figure 2, source: Zpryme & Smartgridcareers.com)or more employees. Percent of Respondents by Number of Employees in Thier Company Manager, (figure 1, source: Zpryme & Smartgridcareers.com) 26% Director, 39% Consultant, 6% 1,000 or more, 37% 1 to 100, 41% Vice President, 13% President, CEO, 9% 7% 101 to 500, 16% 501 to 1,000, 6%5 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  4. 4. Type of Smart Grid Employees Hired Sectors Served by RespondentsAbout half (49%) of the hiring managers in the study said The hiring managers in the study represented 25 Smart Gridtheir company only hired experienced new hires with sectors. Sectors with the largest representation in the studyprevious work experience. The other half (51%) said they were AMI, distribution automation, demand response,hired new hires without previous work experience (outside utility systems, meter data management, networkinternships) AND experienced new hires with previous work management, communications, and utility operations.experience. Sectors Served by Respondents (table 1, source: Zpryme & Smartgridcareers.com) What Type of Smart Grid Employees Does Your Company Hire Sector % of Respondents (figure 3, source: Zpryme & Smartgridcareers.com) AMI 62% Appliances 16% Battery technologies 19% (BAN/HAN), energy management systems 36% Only New Hires Community Energy Storage (CES) 22% Experienced without Chips 4% New Hires previous Communication (HW/SW/Control) 44% with work Consumer advocacy 18% previous experience Demand response 59% work AND Distributed automation: communications and software 61% experience, Experienced Distributed automation: hardware and sensors 47% 49% New Hires , Distributed generation and storage 33% 51% 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%6 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  5. 5. Total Hires by Company Size, 2010 – 2012 • Companies with 1,000 or more employees accounted for 60 percent of the hiring in 2010 andThe overall average number of employees hired increased 2011. However, from 2010 to 2011 the averagefrom 24.8 in 2010 to 25.7 in 2011. However, hiring managers number of employees hired by companies of thisestimated that their overall hiring would decrease in 2012, size decreased from 53.6 to 45.2. They alsoto 15.9 employees, on average. The study was conducted estimated that their hiring would decreasein June of 2012, thus this estimate should be interpreted significantly in 2012. That said, the overall trend iswith caution. That said, there is a net positive hiring growth positive as these companies are still hiring talentedtrend in the Smart Grid industry. employees, just not at the rate they were hiring in 2010 and 2011. • Companies with 1 – 100 employees showed an increasing hiring trend from 2010 to 2012. Although Average Number of Smart Grid Hires By Number Employees in Company the hiring growth is minimal for these firms, it does 2010 - 2012* indicate that these firms are slowly growing. (figure 4, source: Zpryme & Smartgridcareers.com) 60 • Companies with 101 – 500 employees showed an 53.6 increasing hiring trend from 2010 to 2011. However, 50 45.8 45.2 they estimated that their hiring would decrease in 40 36.6 2012. That said, the overall trend is positive as these companies are still hiring talented employees, just 30 27.0 25.6 25.9 25.7 not at the rate they were hiring in 2010 and 2011. 22.6 24.8 20 16.2 15.9 • Companies with 501 to 1,000 employees hired an 7.5 10 5.8 6.9 average of 27.0 employees in 2010 and 36.6 employees in 2011. These companies also indicated 0 that they would increase the average number of 1- 100 101 - 500 501 - 1000 Over 1000 Overall employees they hire in 2012 to 45.8. This is not Average surprising since these companies are likely more 2010 2011 2012 *2012 are estimated hires provided by each respondent. established than smaller companies in the Smart Grid industry, but not as heavily staffed as larger companies.7 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  6. 6. Average Annual Compensation by Position Are Starting Salaries for new hires Changing? (figure 6, source: Zpryme & Smartgridcareers.com)Fifty-nine percent of hiring managers said that starting Yes, they are increasingsalaries for new hires are increasing (both slightly and greatly, 13%greatly). The average annual compensation for new hireswithout previous experience was $55,600. No, they are staying theSixty-five percent of hiring managers said that starting same, 37%salaries for experienced hires are increasing (both slightly Yes, they areand greatly). The average annual compensation for increasingExperienced Engineers/ Operations Professionals is $93,800, slightly, 46% Yes, they arewhile it is $119,200 for Senior Experienced Engineers/ decreasingOperational Professionals. The average compensation for greatly, 2%Experienced Management Professionals was $136,000. The Yes, they areaverage compensation for Experienced Directors and decreasingExecutive Managers was $175,000 and $190,000, slightly, 2%respectively. Are Starting Salaries for Experienced Average Annaul Compensation by Position New Hires Changing? (figure 5, source: Zpryme & Smartgridcareers.com) (figure 7, source: Zpryme & Smartgridcareers.com) Executive Managers $190,000 Yes, they are increasing greatly, 16% Directors $175,000 No, they areManagement Professionals staying the $136,000 same, 30% Sr. Engineers/Operations Professionals $119,200 Yes, they are Yes, they are Engineers/Operations decreasing increasing Professionals $93,800 greatly, 2% slightly, 49% New Hires* Yes, they are $55,600 decreasing $0 $50,000 $100,000 $150,000 $200,000 slightly, 3%8 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  7. 7. As expected, starting salaries between new hires and Distribution of New Hire Average Annual CompensationExperienced new hires was significantly different by (figure 8, source: Zpryme & Smartgridcareers.com)position. However, the data indicate that Smart Grid 50% 46%career opportunities can be financially rewarding foremployees with management skills and advanced 40%engineering expertise. 30% • Among new hires, the most common starting salary was $40,001 to $60,000 (46%). 20% 20% 13% • Among Experienced Engineers & Operation 10% 9% 9% Professionals, the most common starting salary was 4% $80,001 to $100,000 (31%). 0% Up to $25,001 to $40,001 to $60,001 to $80,001 to $100,001 to • Among Senior Experienced Engineers & Operation $25,000 $40,000 $60,000 $80,000 $100,000 $125,000 Professionals, the most common starting salary was $100,001 to $125,000 (29%). Fourteen percent indicated they started at over $150,000. Distribution of Experienced Engineer & Operation Professionals Average Annual Compensation • Among Experienced Management Professionals, the (figure 9, source: Zpryme & Smartgridcareers.com) 40% most common starting salary was $125,001 to $150,000 (40%). Sixteen percent indicated they 31% started at over $150,000. 30% 22% • Among Experienced Directors, the highest most 20% 20% common salary was $175,001 to $200,000 (24%). Thirteen percent indicated they started at over 10% $200,000. 10% 6% 6% 3% • Among Experienced Executive Managers, the most 2% common starting salary $175,001 to $200,000 (28%). 0% Up to $25,001 to $40,001 to $60,001 to $80,001 to $100,001 to$125,001 to Over However, 24% indicated they started at over $25,000 $40,000 $60,000 $80,000 $100,000 $125,000 $150,000 $150,000 $200,000.9 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  8. 8. Distribution of Experienced Sr. Engineer & Operation Distribution of Experienced Directors Average Annual Professionals Average Annual Compensation Compensation (figure 10, source: Zpryme & Smartgridcareers.com) (figure 12, source: Zpryme & Smartgridcareers.com)40% 30% 24%30% 29% 21% 26% 20% 18% 18% 20%20% 13% 14% 10%10% 8% 5% 2% 2% 1% 0% 0% Up to $25,001 to $60,001 to $80,001 to $100,001 to$125,001 to Over $60,001 to $80,001 to $100,001 to$125,001 to $150,001 - $175,001 - Over $25,000 $40,000 $80,000 $100,000 $125,000 $150,000 $150,000 $80,000 $100,000 $125,000 $150,000 $175,000 $200,000 $200,000 Distribution of Experienced Management Professionals Distribution of Experienced Executive Managers Average Annual Compensation Average Annual Compensation (figure 11, source: Zpryme & Smartgridcareers.com) (figure 13, source: Zpryme & Smartgridcareers.com)50% 30% 28% 40% 24%40% 23% 20%30%20% 19% 16% 11% 15% 10% 5% 6%10% 3% 4% 2% 2% 0% 0% $25,001 to $40,001 to $60,001 to $80,001 to $100,001 to$125,001 to Over $60,001 to $80,001 to $100,001 to$125,001 to $150,001 - $175,001 - Over $40,000 $60,000 $80,000 $100,000 $125,000 $150,000 $150,000 $80,000 $100,000 $125,000 $150,000 $175,000 $200,000 $200,00010 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  9. 9. Bonuses How Long Have Bonuses Been Used For new hires? (figure 14, source: Zpryme & Smartgridcareers.com)Overall, the use of hiring bonuses was found to be more Over 5 4 – 5 years, years, 5%common for Experienced new hires than for new hires. 2%New Hires 2 – 3 years, • A large majority (71%) of hiring managers indicated 17% that they did not use bonuses for new hires. We don’t 1 year, 5% use bonuses • Among the managers that indicated that they did for new use hiring bonuses, 17% said they have been using hires, 71% 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. What is the Average Hiring Bonus for new hires?Experienced New Hires (figure 15, source: Zpryme & Smartgridcareers.com) Over $5,000, Up to $500, • About half (49%) of hiring managers indicated that 8% 8% they use bonuses for Experienced Hires. • Among the managers that indicated that they did use hiring bonuses, 15% said they have been using $2501 to $501 to bonuses for over 5 years. $1000, 25% $5000, 25% • Among the managers that indicated that they did use hiring bonuses, the largest group (29%) $1001 to indicated a bonus amount of $5,001 to $10,000. $2500, 33%11 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  10. 10. How Long Have Bonuses Been Used Length of Time to Recruit Smart Grid Employees For Experienced Hires? (figure 16, source: Zpryme & Smartgridcareers.com) 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 Over 5 years, 15% hires. 4 – 5 years, We don’t 7% New Hires use bonuses for 2 – 3 years, experienced • Six percent of the managers indicated that it takes 7 12% hires, 51% – 12 months to recruit a new hire. 1 year, 14% • 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. What is The Average Hiring Bonuses For Experienced Hires? Experienced New Hires (figure 17, source: Zpryme & Smartgridcareers.com) Up to $500, 2% $501 to • Ten percent of the managers indicated that it takes Over $20,000, 5% $1000, 5% 7 – 12 months to recruit an Experienced New Hire. $1001 to • Nine percent of the managers indicated that it $2500, 12% takes over a year to recruit an Experienced New $10,001 to Hire. $20,000, 24% • Forty-five percent said the time to recruit $2501 to Experienced new hires is getting longer. $5000, 24% $5001 to $10,000, 29%12 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  11. 11. How Long Does it Take to Recruit a New Hire? How Long Does it Take to Recruit an Experienced Hire? (figure 18, source: Zpryme & Smartgridcareers.com) (figure 20, source: Zpryme & Smartgridcareers.com) Over one Over one 7 – 12 year, 4% year, 9% 2 – 4 weeks, months, 6% 10% 7 – 12 2 – 4 weeks, months, 10% 16% One month, 4–6 16% One month, months, 22% 4–6 16% months, 24% 2–3 2–3 months, 32% months, 35% Has The Length of Time Needed to Recruit Has The Length of Time Needed to Recruit a New Hire Changed? an Experienced Hire Changed? (figure 19, source: Zpryme & Smartgridcareers.com) (figure 21, source: Zpryme & Smartgridcareers.com) Yes, gotten longer, 25% No, still Yes, gotten about the longer, 45% No, still same, 45% about the same, 65% Yes, gotten shorter, 10% Yes, gotten shorter, 11%13 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  12. 12. Leading Sources for Recruiting What Are Your Top Sources For Recruiting new hires? (figure 22, source: Zpryme & Smartgridcareers.com)For new hires without previous experience, the top sourcescited for recruiting were headhunters and referrals from 22%industry contacts. Respondents identified referrals from Referrals from industry contactsindustry contacts, word-of-mouth from current employees, Headhunters/Recruiters 22%and headhunters as their top sources for recruitingexperienced industry professionals. Word-of-mouth (current 15% employees)New Hires Universities/Colleges 15% • Twenty-two percent of hiring managers said their Job boards 15% top choice for recruiting new hires was referrals from industry contacts and headhunters/recruiters. Internet 9% 0% 10% 20% 30% • Fifteen percent said their top choice for recruiting new hires was word-of-mouth, universities, and job boards were. What Are Your Top Sources For Recruiting Experienced Hires? (figure 23, source: Zpryme & Smartgridcareers.com)Experienced New Hires Referrals from industry contacts 35% • Thirty-five percent of hiring managers said their top choice for recruiting Experienced new hires was Word-of-mouth (current employees) 23% referrals from industry contacts. Headhunters/Recruiters 22% • Twenty-three percent of hiring managers said their Internet 9% top choice for recruiting Experienced new hires was Universities/Colleges 4% word-of-mouth. 4% Job boards • Twenty-two percent of hiring managers said their top choice for recruiting Experienced new hires was Industry organizations 3% headhunters/recruiters. 0% 10% 20% 30% 40%14 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  13. 13. Solving Long-Term Hiring Issues Smart Grid Training EffortsSharing best hiring practices with industry and professionals Mentoring programs with employees who already haveorganizations was expressed to be the main way hiring skill sets for Smart Grid roles was chosen as the top trainingmanagers would solve their long-term hiring challenges. method to build Smart Grid skills.The hiring managers were asked how they were going to Another way to build Smart Grid expertise within ansolve their long-term hiring challenges and their choices organization is to establish training programs. The hiringwere (in descending order of frequency): networking with managers’ preferences (again, in descending order)industry or professional organizations to share best were: mentoring programs with employees who alreadypractices for successful hiring (66%); ask consultants to have skills (63%); a tie between training by outsideresearch and propose recommendations (33%); ask consultants and training programs/certifications usinghuman resources (HR) to build a database on successful professional organizations like IEEE or EPCE (both at 26%);hires and/or statistically modeling commonalities that an internal online training program run by HR (25%);successful hires share (33%); establish internal team to internship programs (24%); training/certification programsresearch and propose recommendations (28%); and, last, by local college/university (22%); and an internal offlineask university/college to research and propose training program run by HR (13%).recommendations (15%). What Training Efforts Have Been Undertaken to Build How Do You Plan to Solve Your Long-Term Smart Grid Skills within Your Organization? Hiring Challenges for Smart Grid Roles? (table 3, source: Zpryme & Smartgridcareers.com) (table 2, source: Zpryme & Smartgridcareers.com) % of Selection Respondents % of Selection Mentoring programs with employees who already have these skill sets 63% RespondentsNetworking with industry or professional organizations to share best Training by outside consultants 26% 66%practices for successful hiring Training programs/certifications that can be completed via a 26% professional organizations such as IEEE, EPCE, etc.Ask consultants to research and propose recommendations 33% Internal online training programs run by HR 25%Ask HR to build a database on successful hires (tracking where Internship programs to groom new graduates 24%successful hires come from and/or statistically modeling commonalities 30% Training programs/certifications that can be completed at a localthat successful hires share) 22% college/universityEstablish internal team to research and propose recommendations 28% Other 17% Internal offline training programs run by HR 13%Ask university/college to research and propose recommendations 15% Internal video training programs run by HR 11%Other 9%15 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  14. 14. Smart Grid Hiring Policies Retention of Smart Grid EmployeesAccording to the hiring managers in the study, the level in Sixteen percent of respondents said that retention of Smartorganizations that establishes hiring policy for Smart Grid Grid employees is a large problem. When asked aboutemployees was: executive leadership (39%), hiring how retention of Smart Grid employees has changed overmanagers (35%), HR (11%), mid-level managers (7%), and the past five years, 24% said that employees are stayingthe board of directors (2%). less time now. Who Establishes The Hiring Policies for Has The Retention of Smart Grid Employees Changed Smart Grid Employees? Over The Past Years? (figure 24, source: Zpryme & Smartgridcareers.com) (figure 25, source: Zpryme & Smartgridcareers.com) Executive Employees 39% are staying leadership Employees are staying longer now, Hiring managers 35% less time 19% now, 24% HR 11% Employees are staying Other 7% about the Mid-level same now, managers 7% 58%Board of directors 2% Retention of Smart Grid Employees Is: (figure 26, source: Zpryme & Smartgridcareers.com) 0% 10% 20% 30% 40% 50% Not a problem, A moderate 28% problem, 36% A large problem, 16%16 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  15. 15. Telecommuting Does Your Company Allow Smart Grid Employees to Telecommute? (table 4, source: Zpryme & Smartgridcareers.com)Just over three out of four (77%) hiring managers indicatedthat they allow Smart Grid employees to telecommute. Selection % of Respondents • Forty-four percent let employees at all levels Yes, and at all levels 44% telecommute. No 23% • Nine percent only let lower-level and mid-level Yes, but only at lower levels 9% employees telecommute. Yes, but only at mid-levels 9% • Among those that said they allow telecommuting, Yes, but only at the executive and mid-levels 8% 32% said they have allowed telecommuting for over Yes, but only at mid and lower levels 7% 5 years. Thirty-eight percent indicated they have allowed telecommuting for 2 – 3 years. Yes, but only at executive levels 1% • Twenty-one percent said they have only allowed telecommuting for 1 year. How Long Have You Allowed Smart Grid Employees to Telecommute? (figure 27, source: Zpryme & Smartgridcareers.com) Over 5 1 year, 21% years, 32% 2 – 3 years, 38% 4 – 5 years, 10%17 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  16. 16. Conclusions & Recommendations another 29% indicated a range of $5,001-$10,000. Not exactly chump change when you consider the 1. Salaries for Smart Grid Roles are on the Rise and volume of hiring that will have to occur in the utility Surpass Industry Averages in the Engineering Sector sector as nearly half of this workforce approaches retirement. Fifty-nine percent of hiring managers reported that starting salaries for new hires (those without previous We also predict hiring bonus usage will accelerate work experience outside of internships) are dramatically in the new hire category as Smart Grid increasing. This percentage increased to sixty-five curricula become more readily available, more percent for experienced hires. The average starting comprehensive in nature, and more widely salary for an experienced engineer was $93,800, accepted as sufficient training. Hiring managers in eight percent higher than the industry average for a both the vendor space and the utility sector will comparable position according to Salary.com. naturally gravitate to this less expensive alternative Engineering managers in the Smart Grid are even to meet their human capital requirements. Initially, more highly compensated, taking home an the competition for these new Smart Grid graduates average of 20% more than their counterparts in will be fierce as the talent pool will remain relatively other industries. small until this curriculum becomes more prolific. However, even if the use of hiring bonuses becomes What’s the net for the utility sector? The budgeting more commonplace, the overall cost of recruiting a process must take these evolving compensation new hire will still remain less than hiring an requirements into account. It’s not even a matter of experienced candidate. being able to attract the “best” talent. It’s more about being able to afford the candidates who 2. The Recruitment Process Takes Time and Requires possess the skills needed to achieve proficiency in Advance Planning Smart Grid operations. Forty-five percent of survey respondents indicated Survey respondents also reported leveraging hiring that the length of time required to recruit an bonuses to land the talent they need. While only experienced hire has increased, with 19% 29% of participants stated that they leverage hiring responding that the process now takes over seven bonuses as part of their recruitment strategy for new months. Recruitment of new hires seems to be a hires, nearly half employ this tactic for experienced little easier and less time consuming according to hires. Twenty-four percent of Smart Grid hiring those surveyed, with only 25% responding that the managers reported paying experienced hires process is getting longer, and 90% reporting that the signing bonuses in the $10,001-$20,000 range, and process is successfully being completed within six18 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  17. 17. months. However, these timeframes will only Our advice for utilities? Perform temperature checks increase over time, as there will continue to be a on employees frequently. Engage them on a significant shortage of viable candidates. Utilities personal level. Think out of the box when creating should anticipate that this process will be arduous work schedules. Vendors are already way ahead of for the foreseeable future, as it will take time to the game. For example, 77% of survey respondents encourage the nation’s collegiate recruits to pursue indicated that they allow some employees to a career in the Smart Grid. telecommute. While this type of arrangement is not always viable for all types of utility workers, it should Our suggestion for those responsible for hiring in the be offered to those whose job function does not utility sector? Identify the skill sets you anticipate require them to be physically onsite. The human needing and then pull the trigger on the recruitment resources team within a utility has to evolve from a process at least a year in advance, especially if payroll processing department to a dynamic, team- there is a need for multiple candidates with similar leading, employee-developing entity that is highly in qualifications in the same geographic area. tune with the needs and wants of its workforce. 3. Retention Requires Strategy 4. Connections, Affiliations, and Networking are Vital to Recruitment Success The Smart Grid human resources challenge does not end with the successful hire of a qualified A utility will need to be actively engaged within the candidate. Over half those surveyed labeled the industry to ensure success in recruiting qualified retention of Smart Grid employees as a “moderate talent. While headhunters will continue to play an to large” problem. And while only 24% indicated instrumental role in identifying potential candidates that employees’ tenure is declining, the writing is on (22% of respondents said their top choice for the wall. recruiting both new and experienced hires was headhunters), industry contacts (according to Utilities that are physically located in the same survey participants) are extremely useful in the geographic area as a Smart Grid technology overall recruitment process. While it may seem vendor will have the most difficult time retaining obvious, the only way to secure industry contacts is employees, as these vendors will aggressively court to actively seek them out by joining relevant their employees. To make matters worse, professional organizations, attending industry events, technology vendors are in the more advantageous and becoming more active within social media position of being able to adjust their p & l on the fly, forums. giving them the flexibility to up the ante when needed to secure qualified talent.19 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  18. 18. 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.20 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  19. 19. Q&A: Echelon environmental reasons and show how the Smart Grid is an area where young students can have aJeff Lund positive impact and a rewarding career.VP of Business Developmentwww.echelon.comZP: How has your company attracted new talent to fillSmart 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 trainand 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 and21 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  20. 20. Q&A: ItronTim WolfDirector of Smart Grid Solutionswww.itron.comZP: How has your company attracted new talent to fillSmart 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.ZP: Overall, how can the industry work together to trainand build the Smart Grid work force of tomorrow? 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.22 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  21. 21. Q&A: S&C Electric Company selected undergraduate engineers committed to the field of power and energy who meet academic andWanda Reder career experience requirements. This is intended toVP of Power Systems Services increase the number of people available for Smart Gridwww.sandc.com positions in anticipation of significant workforce retirement rates in the upcoming years. ConvincingZP: How has your company attracted new talent to fill students to commit to Smart Grid careers and itsSmart Grid roles? (eg. networking, recruiters, LinkedIn, contribution to a vibrant U.S. economy requiresconferences, referrals etc.) continuous industry commitment where financial support, meaningful career experiences, mentorship, WR: All of these tools are used -- we are active in professional networking and lifelong education are industry associations and technical working groups to needed. network. In addition, we participate in job fairs that are held in conjunction with major conferences and on In addition, industry needs to be actively involved in campuses to meet students and introduce them to our curriculum development by providing adjunct company and we occasionally use recruiters to make professors, lab equipment, technical projects and other connections with experienced professionals. resources to facilitate real world experience for the students. When industry and the academic community S&C has also developed a relationship with come together, tremendous value can result from the the academic community where we work with both development of innovative technologies, design professors and students to discover potential methods, and new Smart Grid applications. 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.ZP: Overall, how can the industry work together to trainand build the Smart Grid work force of tomorrow? 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 to23 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  22. 22. Q&A: SiemensSiemens Smart Grid Divisionwww.siemens.comZP: How has your company attracted new talent to fillSmart 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.ZP: Overall, how can the industry work together to trainand build the Smart Grid work force of tomorrow? 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.24 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com
  23. 23. About Zpryme Smart Grid Insights Practice:Zpryme-powered Smart Grid Insight Practice (link) and our Smart GridInsights Advisory Board (link) help organizations understand theirbusiness environment, engage consumers, inspire innovation, andtake action. These practices represent an evolution beyond traditionalmarket research and consulting: combining sound fundamentals,innovative tools and methodologies, industry experience, andcreative 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 moreinformation regarding our custom research, visit: www.zpryme.com.Zpryme Smart Grid Insights Contact:smart.grid@zpryme.com | +1 888.ZPRYME.1 (+1 888.977.9631)www.smartgridresearch.org (Zpryme Smart Grid Insights)www.zpryme.com (Zpryme Main Website) Contributors:About Smartgridcareers.com: Echelon (Jeff Lund, VP of Business Development) Itron (Tim Wolf, Director of Smart Grid Solutions)SmartGridCareers.com is a niche recruiting firm offering a S&C Electric Company (Wanda Reder, VP of Power Systems Services)comprehensive suite of human resources solutions to the Smart Grid Siemens (Siemens Smart Grid Division)industry. Leveraging a powerful combination of experience, expertiseand cutting-edge technology, SmartGridCareers.com has established Disclaimer:a proven track record of pinpointing candidates with the emergingskill sets required by the Smart Grid and Renewable Energy sectors. For These materials and the information contained herein are provided by Zpryme Research & Consulting, LLC and are intended to provide general information on a particular subject or subjects and is not an exhaustive treatment ofmore information, visit: www.smartgridcareers.com. such subject(s). Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. TheseZpryme Credits: materials and the information contained herein is provided as is, and Zpryme Research & Consulting, LLC makes no express or implied representations or warranties regarding these materials and the information herein. Without limiting the foregoing, Zpryme Research & Consulting, LLC does not warrant that the materials or information contained herein will be error-free or will meet any particular criteria of performance or quality. Zpryme Research & Consulting,Editor Managing Editor Research Lead LLC expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, noninfringement, compatibility, security, and accuracy. Prediction of future events isPimjai Hoontrakul Robert Langston Stefan Trifonov inherently subject to both known and unknown risks, uncertainties and other factors that may cause actual results to vary materially. Your use of these and the information contained herein is at your own risk and you assume full responsibility and risk of loss resulting from the use thereof. Zpryme Research & Consulting, LLC will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials and the information contained herein.25 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012Copyright © 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

×