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2013 Smart Grid compensation, recruitment and retention trends

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The 2013 Smart Grid Hiring Trends report offers human resource professionals and hiring executives unique insight into emerging Smart Grid human resources challenges, solutions and trends. Featuring 76 unique tables illustrating nearly 30 distinct Smart Grid hiring topics, this research arms industry professionals with a powerful benchmarking tool that will ensure the development of a successful Smart Grid human capital strategy.

Universities and colleges can also leverage this report to pinpoint the exacting qualification requirements of this growing sector, facilitating their development of curricula targeted to produce the most employable graduates.

Topics include: average compensation information for seven classes of Smart Grid positions, past and forecasted hiring activity (national and regional data), academic, certification, experience and skill requirements for Smart Grid candidates, average time to hire, universities/colleges targeted for recruitment, hiring bonus averages and usage, employee retention, women in Smart Grid roles, telecommuting and relocation policies and usage, best practices for recruiting Smart Grid candidates, industries with transferable skill sets, training initiatives pursued by the industry, international employee hiring policy and sponsorship, trend data for 2012-2013.

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2013 Smart Grid compensation, recruitment and retention trends

  1. 1. 2013 SMART GRID HIRING TRENDS RESEARCH
  2. 2. EXECUTIVE SUMMARY KEY FINDINGS: A Comparative Analysis of 2012 and 2013 Data The Smart Grid job market continues to show signs of growth, with hiring managers reporting a projected 9% increase in hiring activity over 2012. This figure may be conservative, however, as respondents anticipated a 38% decrease in 2012, yet reported a 26% overall increase in this year’s study. While Smart Grid hiring managers forecasted the rate of job growth to slow in 2013, hiring will far surpass the national average of nearly 2%. A comparison of 2012 and 2013 data revealed the following emerging trends: Hiring managers continue to face significant hiring challenges attracting both inexperienced and experienced hires, yet seem unwilling to make any compromises in the area of qualification requirements, including desired degrees, additional certifications and experience levels. While hiring bonuses have increased substantially, salaries have remained relatively flat. Coupled with laggard growth in domestic graduates obtaining the desired degrees, an unfavorable immigration policy barring the retention of qualified foreign graduates, an expected attrition rate of power industry engineers in the 50% range over the next five years and a corresponding generational shift in the workforce, hiring managers are struggling to fill open roles expeditiously. Respondents also reported a slightly larger reliance on experienced candidates over inexperienced candidates in 2013, compounding problems by increasing the overall cost of talent acquisition. In response to these challenges, respondents in 2013 indicated that they are proactively addressing the issues by networking with industry organizations to share best practices, establishing knowledge transfer initiatives in anticipation of massive future retirements, exploring more flexible work arrangements, offering relocation packages to attract talent outside of their geography, looking outside the industry to recruit candidates with transferable skill sets and aggressively pursuing available visa sponsorships. 1 #1: Candidate Qualification Requirements are Increasing Hiring managers are raising the bar, setting higher expectations for both inexperienced and experienced hires in the areas of academic achievement, experience levels and additional soft skills. Approximately 60% of hiring managers now require both inexperienced and experienced candidates to have a master’s degree to be considered for a Smart Grid role (a 60% increase for inexperienced candidates and a 25% increase for experienced candidates). Additional certifications (EIT, PE and PMP being the most common) are prerequisites for 35% of hiring managers considering inexperienced candidates (a 30% increase over 2012), and 22% of hiring managers interested in experienced candidates (a 37% decrease over 2012). The decrease in certification requirements for experienced candidates was counterbalanced by the increased requirements for advanced academic degrees. #2: Recruitment of Smart Grid Employees is Becoming More Difficult and Expensive In an effort to entice both inexperienced and experienced candidates to join their organizations, hiring managers are upping the ante via increased sign-on bonuses (up 47% and 18% respectively). Landing a candidate is becoming an arduous affair, with open roles sitting unfilled for an average of 3.5 months for an inexperienced candidate and 4.3 months for an experienced candidate; a considerable strain on overall morale as existing employees take on the burden of increased workloads while new hires are recruited. #3: Smart Grid Employers are Actively Exploring a Wide Variety of Solutions to Address Hiring Challenges Smart Grid organizations are highly proactive in addressing the recruitment, retention and training challenges that lie ahead: • Executive leadership is becoming more involved in the development of Smart Grid hiring policies. 30% more www.zpryme.com | www.smartgridresearch.org | www.acullen.com Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & A. Cullen & Associates respondents indicated that upper-level leadership is now shouldering this important responsibility. • In 2013, networking with industry organizations to share best practices remained the top method for solving longterm challenges. An increasing number of respondents (20% versus 15% in 2012) indicate that they are engaging academia in the development of human resources solutions. • Anticipating the potentially paralyzing “brain drain” associated with large-scale retirement, hiring managers are actively developing knowledge transfer strategies. Mentoring programs continued to top the list in 2013, while outside assistance from consultants and training organizations gained more widespread usage, increasing by 39% and 34% respectively. • While 8% fewer organizations reported the use of telecommuting as a strategy to both attract and retain top talent, over 80% of Smart Grid employers continue to allow employees to telecommute. In addition to in-depth comparative analyses on the data points listed above, this 45-page report also includes the following insightful information: • 2012-2013 average salary information for inexperienced hires, experienced sales professionals, junior and senior engineers, mid-level managers, directors and executives • Academic organizations targeted for Smart Grid recruitment • Changes in Smart Grid employee retention • Percentage of women filling Smart Grid roles • Hiring activity by geographic area Methodology The 2013 Smart Grid Hiring Trends Study was conducted by surveying 115 Smart Grid hiring managers and executives from May 2013 to August 2013. 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. Respondents were asked a total of 54 questions. The reported results represent the percent of respondents who selected a specific answer choice. Responses may not add up to 100% due to rounding. In some cases, where multiple answer choices were allowed, the total percentages will exceed 100%. Definitions • Inexperienced Hires: A candidate with no previous work experience (outside internships) who is hired to fill a Smart Grid role/position. • Experienced Hire: A candidate with previous Smart Grid experience who is hired to fill a Smart Grid role/position. 2013 Smart Grid Hiring Trends Study | January 2014
  3. 3. CONTENTS Executive Summary.......................................3 Average Number of Smart Grid Hires.................................. 3 Methodology..................................................4 Definitions.................................................................... 4 Survey Respondent Characteristics.................................... 5 Company Size.............................................................. 5 Job Title....................................................................... 5 Company Revenues..................................................... 6 Sectors Served by Respondents.................................. 6 Type of Smart Grid Employees Hired............................ 7 2012 Respondents vs. 2013 Respondents................... 7 Key Findings: A Comparative Analysis of 2012 and 2013 Data.......................................8 Candidate Qualification Requirements are Increasing.......... 8 Inexperienced Hires...................................................... 8 Education Requirements........................................ 8 Ranking of Top Additional Skills.............................. 8 Experienced Hires........................................................ 9 Education Requirements........................................ 9 Average # of Years of Relevant Experience Needed.. 9 Ranking of Top Additional Skills............................ 10 Recruitment of Smart Grid Employees is Becoming More Difficult and Expensive...................................................... 11 Inexperienced Hires.................................................... 11 Average # of Months to Recruit............................ 11 Average Starting Salary........................................ 11 Percent of Employers Using Hiring Bonuses......... 12 Average Hiring Bonus........................................... 12 Experienced Hires...................................................... 13 Average # of Months to Recruit............................ 13 Average Hiring Bonus........................................... 13 Smart Grid Employers are Actively Exploring a Wide Variety of Solutions to Address Hiring Challenges........................ 14 Percent Indicating Executive Leadership is in Charge of Smart Grid Hiring Policy......................................... 14 Method of Solving Long-Term Hiring Challenges........ 14 Training Efforts to Build Smart Grid Skills Within the Organization............................................................... 15 2 Percent of Employers Allowing Telecommuting........... 15 Usage of Relocation Packages................................... 16 Industries with Transferable Skill Sets......................... 16 Foreign Hiring............................................................. 17 Inexperienced Hires - 2013 Results...........18 Academic and Certification Requirements........................ 18 Academic Institutions Targeted to Recruit Inexperienced Hires.......................................................... 18 Reasons for Targeting Academic Institutions..................... 19 Additional Skills Required for Inexperienced Hires............. 19 Top Skills Required for Inexperienced Hires....................... 20 Skills Inexperienced Hires are Lacking.............................. 20 Length of Time to Recruit an Inexperienced Hire............... 20 Change in Time to Recruit an Inexperienced Hire.............. 21 Top Sources Used to Recruit Inexperienced Hires............ 21 Ranking of Top Sources to Recruit Inexperienced Hires........ 22 Average Compensation for Inexperienced Hires................ 22 Change in Starting Salaries for Inexperienced Hires.......... 23 Bonuses Offered to Inexperienced Hires........................... 23 Length of Time Bonuses Have Been Offered to Inexperienced Hires.......................................................... 24 Average Hiring Bonus for Inexperienced Hires.................. 24 Experienced Hires - 2013 Results..............25 Required Demonstrated Skills for Experienced Hires......... 25 Academic and Certification Requirements........................ 25 Years of Relevant Experience Required............................. 26 Additional Skills Required for Experienced Hires............... 26 Top Skills Required for Experienced Hires......................... 27 Length of Time to Recruit an Experienced Hire................. 27 Change in Time to Recruit an Experienced Hire................ 28 Top Sources Used to Recruit Experienced Hires............... 28 Ranking of Top Sources to Recruit Experienced Hires....... 29 Average Compensation for Experienced Sales Professionals.................................................................... 29 Average Compensation for Experienced Junior Engineers/ Operations Professionals.................................................. 30 Average Compensation for Experienced Senior Engineers/ Operations Professionals.................................................. 30 www.zpryme.com | www.smartgridresearch.org | www.acullen.com Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & A. Cullen & Associates Average Compensation for Experienced Mid-Level Management Professionals............................................... 31 Average Compensation for Experienced Directors............ 31 Average Compensation for Experienced Executives......... 32 Change in Starting Salaries for Experienced Hires............. 32 Bonuses Offered to Experienced Hires............................. 33 Length of Time Bonuses Have Been Offered to Experienced Hires............................................................ 33 Average Hiring Bonus for Experienced Hires..................... 34 Smart Grid Hiring 2011- 2013.....................35 Smart Grid Employees Hired in 2011................................ 35 Smart Grid Employees Hired in 2012................................ 35 Expected Smart Grid Employee Hiring in 2013................. 36 Key Issues in Smart Grid Hiring – 2013 Results..........................................................37 Plan to Solve Long-Term Hiring Challenges...................... 37 Training Efforts to Build Smart Grid Skills.......................... 37 Smart Grid Hiring Policy Responsibility............................. 38 Changes in Retention of Smart Grid Employees............... 38 Smart Grid Employee Retention Problem.......................... 39 Smart Grid Employee Telecommuting............................... 40 Time Smart Grid Employees Have Been Allowed to Telecommute.................................................................... 40 Relocation Packages Offered............................................ 41 Time Relocation Packages Have Been Offered................. 41 Hiring of Women for Smart Grid Roles.............................. 42 Industries with Transferable Skills...................................... 42 Hiring of Non-U.S. Citizens............................................... 43 Types of Visas Sponsored................................................. 43 Regions Where Most Hiring is Taking Place...................... 44 2013 Smart Grid Hiring Trends Study | January 2014
  4. 4. ABOUT ZPRYME: ABOUT A. CULLEN & ASSOCIATES: Zpryme helps energy organizations understand their business environment, engage consumers, inspire innovation, and take action. This practice represents 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. With our finger on the pulse of the ever-evolving Smart Grid, commodities and energy industries, and our eyes clearly focused on the future, we offer clients a distinct and important advantage in identifying and recruiting the talent required to adapt and succeed in the face of change. Backed by over a decade of industry experience, we have a track record of building profitable teams in these niche sectors. Armed with a keen understanding of legislative and regulatory change, industry business model evolution and human capital trends, we help our clients continually stay one step ahead of the competition. www.acullen.com ZPRYME CREDITS: DISCLAIMER: Editor Research Manager Research Lead 3 Megan Dean Roger Alford, Ph.D. Stefan Trifonov www.zpryme.com | www.smartgridresearch.org | www.acullen.com 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 of 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. These 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, 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 is 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. Copyright © 2013 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & A. Cullen & Associates 2013 Smart Grid Hiring Trends Study | January 2014
  5. 5. INTELLIGENT RESEARCH FOR AN INTELLIGENT MARKET

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