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Bye-bye Baby Boomers. Will the last experienced person in the energy industry please turn the lights out when you leave?
From a human capital standpoint, the state of the energy industry is not good:
According to the United States Department of Labor, the energy utility industry averages the second-highest average employee age among 54 industries studied. Nearly one-fifth (19.2 percent) of industry workers are within five to seven years of retirement.
The energy utility industry is facing another kind of power crisis: a manpower crisis, that is. Manpower (and womanpower) just isn't the renewable resource it once was. Much of the industry's workforce is nearing retirement age. Unfortunately, over the years, little effort has been made to attract young, fresh talent to replace them.
This is more than a decrease in head count, it is a loss of know-how. The industry is at risk of losing crucial intellectual capital.
Ten years ago, McKinsey & Co. declared that better employee talent is worth fighting for, and the news quickly spread from the boardroom bunkers to the cubicle trenches. The reason for the coming talent wars was demographics and the retirement of the Baby Boom generation. The battle cry was to not only improve hiring practices, but to work harder to retain your best employees.
This prediction has come true with a vengeance, particularly in the power industry. There have been challenges in the past few years with recruiting young college graduates due to a perception that the energy industry is arcane, slow to adopt technologies and limited in growth opportunities. The failure to recruit new talent is clearly seen in the fact that the average age of the workers in the industry has been rising -- since 1995, the number of workers aged 55 and older has increased by 225 percent.
Here are five recommendations to tackle the brain drain issues.
During the past decades, companies have proven that you can't win the talent wars just by spending more. When it comes to finding and keeping employees, pay is secondary for top talent. But if a company builds up an outstanding reputation, people will line up to work at that organization. For the energy utility industry, this will involve a degree of investment in branding efforts and workplace changes that will appeal to the younger Generation Y.
One of the most important issues for reputation will be to promote environmental responsibility and the technological advances being made by the energy utility to provide cleaner energy. The 2008 Adecco USA Workplace Insight survey found that 69 percent of Generation Y wanted the company they worked for to be more environmentally conscious. That demographic was even willing to sacrifice, on average, 6.2 percent of their salary to work for an environmentally friendly company -- more than double the amount any other generation of workers would be willing to give up. This is clearly an issue that would motivate top young talent since they would be eager to work for an industry that could make a significant environmental contribution. An equally significant issue is the transfer of knowledge from the seasoned industry professionals to new employees. It is crucial that the mentoring relationships be managed properly so that both sides will feel comfortable and work together effectively.
The big question is how to we get individuals who know technical operations, equipment and field needs to share the "tribal knowledge" that they have acquired over decades of being on the job? One way is to help them to understand how to mentor and coach the new hires. For example, companies can offer incentives that can supplement their retirement incomes in exchange for coaching the newbies. A train-the-trainer program is an essential first step so they can properly transfer some of that valuable information in their heads. Since effective mentoring and cooperation is so crucial to the impending transfer of knowledge, personality assessments will be vital in matching the right workers to the right tasks and team members.
In my soon-to-be-published book Cracking the Personality Code, I discuss how using an in-depth work style and personality assessment during the hiring process and for current staff allows the employer to manage more effectively. This data can reduce the learning curve for the influx of new hires necessary in the energy industry.
In addition, personality assessments are vital in building mentoring partnerships and teams that will be productive and run smoothly. By understanding how different members of the team work, managers can help guide them to appreciate each other's strengths and weaknesses. Since so much of the industry-specific knowledge for the energy utility industry is in the minds of the impending retirees, organizations must act quickly to effectively capture it.
Overall, managers need to realize that attracting talent, retention and training of employees are interconnected issues that must be considered in tandem with each other. To alleviate this industry problem, action must be taken by the industry as a whole to change the way they are perceived. An advisory board on hiring and retention would help the energy utilities share strategies and information that will stave off this personnel crisis.
"What is not working is the poaching of talent," says Arnie Winkler, Director of Education & Training for the Northwest Public Power Association. "Ultimately, somebody is going to lose. We need to be creative working on the supply side of the issue, not the demand side. There is a need for a summit around this issue. Public power is trying to attract the best and the brightest, at the same time other industries are attempting to do the same. This is especially true for public power in rural America. Now is the time to shift our intentions to creating an abundant workforce, rather than focusing on scarcity."
This means working within the Industry, local schools, community colleges and universities. CEWD and industry organizations are currently working at developing support materials for the Electric Utility Industry. There is a need for the national and regional public power organization to convene and discuss local, regional and national strategies.
The energy utility industry must stop merely grumbling over the dismal statistics and take decisive action. Collaboration in the power industry -- led by a national advisory committee on how to attract, hire and retain top talent in the 21st century -- will help ensure that action is taken quickly and efficiently. Time is of the essence and cooperation is the key to a thriving future for the industry. Now is the time to begin discussions on who should be on such a panel, what organizations should sponsor the effort, and how soon could the discussions begin.
For information on purchasing reprints of this article, contact Tim Tobeck ttobeck@energycentral.com. Copyright 2010 CyberTech, Inc.
Hmm, funny but I just finished giving a lecture on certain aspects of this topic. In fact I give my wife one of these lectures every morning, and she's _____ sick and tired of them, but this time I had a new slant.
When I begin engineering school at Illinois Institute of Technology (Chicago),it was called Armour Institute (after some millionaire), and consisted of a dingy main building, a student union, and some shack-like structures scattered around the place in which I distinguished myself by failing everything except except history and english, and as a result being labeled a hopeless case and expelled. Some question must be asked as to why I was attending that institution, but as I explained during my lecture, being an engineer meant something in those days.
I have a feeling that it doesn't mean as much any more, and not just in the US. I've taught mathematical or energy economics in three engineering schools - Lisbon, Singapore and Bangkok - and in the last two I wondered what the hell was going on. The problem there, as everywhere else, is not the shortage of talent, but the exploitation of talent. Somewhere along the line the wrong people get their hands on that talent and reduce some of its capacity. By way of contrast, during WW2 the US started from almost nothing - i.e. an economy in the process of shaking off a depression - and produced industrial and military miracles (as well as some notable blunders).
That being the case, I move to the bottom line and utilize some backward induction, as it's called in game theory. What's the point in carrying on two useless wars and letting an industry as important as the utility industry deteriorate? Isn't it obvious to the leadership in the US - if not to the fans of daytime soap operas - that the utility industry means more for the personal satisfaction of US citizens than any outcome of those wars, given that on a value scale they have about the same significance as US military operations in Cuba and the Phillipines around the turn of the last century.
I could add a few more things to this comment, but I prefer to stop and be informed that I don't know what I'm talking about. Incidentally, that thing about 69% of Generation Y being hooked on environmental consciousness is a gimmick isn't it, like the dumb industry minister here in Sweden wanting to raise the number of windmills from 900 to 6000, although on a per-capita basis Sweden (and Norway) have the lowest CO2 emissions in the industrial world.
Jude Clemente 12.2.08
This is a serious problem in the nuclear power industry. The US has lost the experts we once had because the industry flatlined in the 1980s. Additionally, the specialized materials needed for nuclear plants are on back order for years. So, even if we want to turn to nuclear power we do not have the experts or the materials needed. Penn State University once had a top Nuclear Engineering program in the US, but not anymore. Uranium is now imported because our uranium minining industry, thanks to accidents like Three Mile Island and Chernobyl, created a backlash against the industry. This is why from an energy security standpoint, coal is our best option to create the electricity needed for electricity and hybrid vehicles. Nuclear has serious limitations related to Dana's article.
Ferdinand E. Banks 12.2.08
Jude, I'm not going to say anything against coal because there is too much energy in that resource for it to be dismissed, but the limitations that you are talking about where nuclear is concerned are strictly a short-term issue. One of the most interesting paradoxes associated with nuclear is that many persons who know how economical and important it is are afraid to say so because it might make them unpopular. Consider for instance the young ignoramuses on Wall Street flashing their green credentials by saying that nuclear is too unprofitable for them to recommend it to investors.
David Parsons 12.4.08
It is obvious that we seriously underate the importance of education at all levels in our society. If business and industry will do a better job of partnering with schools at all levels, we can accomplish almost anything. Don't give up hope, start communicating now. I'd give almost anything to see suspicion and blame turn into promise and action. Our people have always been our greatest asset. One talented "resource" can produce hundreds of new "resources" if we just communicate well enough. Just don't forget your checkbooks.... I've still never found the free ride.
Len Gould 12.5.08
Again, applicable:
The bell tolls for Bell Labs -- Physics Today October 2008.
"We are coming out of an era," says Federico Capasso, who headed physical research at Bell before moving to Harvard University in 2003. "Until more or less now, research in industrial labs gave a huge edge to the US." But in today's global competition, he notes, "corporations can't afford to do medium- and long-term research in areas beyond their technology and business horizon. That's a fact, and we should not judge them for it."
The problem is MUCH deeper than a few mentoring initiatives can fix. I'd suggest corporate recruiters are likely starting to bone up on the Mandarin language, and cultural preferences of people in India. North America has become the world leader in production of scammers who know how to keep a hollow useless corporation's share prices five times higher than it deserves.
Len Gould 12.5.08
And how to "earn" billions by betting all the money in S. Arabia aginst their own country's currency.
Jim Beyer 12.5.08
I heard the rep of a major utility speak yesterday. A very bright guy, but some of the things he said were notable and a bit odd.
On the subject of coal, he acknowledged the problem (at least from potential regulation) with all of the CO2 emissions. But then he went on to state how much they have spent on some plants ($1 Billion or more on a single plant!) just to further reduce SOx, NOx and Hg emissions. They've done great work, cutting them by 80% or more.
That's great, but, um, that's not the long-term issue with coal. It's the CO2. I mean, if I went to a job interview and said I had just taken classes and was well-versed in COBOL, they wouldn't give me a job just because I made the effort, would they? Of course not. I appreciate what they've done for SOx, NOx and Hg emissions (though the Great Lakes have already been hit pretty good with the Hg, that horse has left the barn already, to some extent) but, I have to think they should have been looking ahead a bit further w.r.t. to possible concerns about CO2 emissions. (Note I am not getting into a GW debate, but noting the likely regulatory issues w.r.t. CO2.) I wanted to say "That's great, but so what?", but I didn't think that would be productive.
It was clear to me that the notion of not using coal for some utilities has a non-reality about it that they simply can't grasp. Not using coal is akin to removing 3 of their limbs.
Regarding nuclear, he noted that new plants may run $8-10 Billion or more! A huge number. Far higher than a new coal plant. I think nuclear is so much more expensive than coal (at least in terms of the initial cost) that it is a completely different mindset with the utility. A completely different train of thought. This different mindset is not apparent when you review the EIA fact of costs of coal vs. nuclear. A new nuclear plant is a WAY bigger deal for a utility compared with a new coal plant.
So anyway, I just wanted to comment that a certain disbelief is apparent even on the part of major utility heads. I guess you can't just change the game so drastically ("no more coal") and have these people able to continue to think rationally.
If you think of all the infrastructure tied to coal, all the mines, the trains, the loading and unloading stations; all that stuff set up to support coal; one can't just dismiss it and assume many won't be confused.
That all said, there is no TECHNICAL reason, as I see it, in building new nuclear plants instead of new coal ones, other than the hidden drive to keep supporting all that extant (coal) infrastructure.
Ferdinand E. Banks 12.6.08
Excellent comment, Jim. I was particularly interested in this business of a nuclear plant costing 8-10 billion. That's a lot of bread. And yesterday I heard of a book or something by a guy who's name I don't remember nor want to remember in which he puts the bad mouth on the new Finnish nuclear plant, which may end up costing close to that amount.
Frankly, as somewhat of a nuclear 'shill' - to use Tam Hunt's description - it doesn't bother me at all. The Finns have had excellent experiences with nuclear, operating both 'Western' and Soviet equipment, and when they were considering increasing their output of electricity, nuclear seemed optimal. AND IT WILL BE PROVED OPTIMAL in the long run, and I'm not talking about the Keynesian long run where we are all dead. Once the nuclear ball really starts rolling, we will see nuclear plants constructed in the 4 years mentioned by Len Gould - from ground break to grid power - OR LESS, as a Japanese gentleman once assured me. As a matter of fact, if the Finns had started that installation later - or earlier for that matter, when interest rates were at rock bottom - it could have been a different story cost-wise.
With the American and British air forces pounding Berlin to bits, and the Soviet army in the suburbs of that marvelous city, millions of Germans forced themselves to believe that the war could still be won by their side. During my army service in Japan and Germany I had this explained to me many times, but I was too dumb or young or both to understand a great deal of what goes on in the heads of real people in the real world. but now I understand, and I think that on occasion it's absolutely and completely and totally pathetic. The same thing concerns the belief by many Finns that they could maintain or keep increasing their standard of living by renouncing nuclear and concentrating on renewables/unconventional sources of energy. Fortunately, on that occasion, the government of Finland country was not in the mood for that kind of romanticism.
Finally, important changes may be about to take place in the Russian electricity sector. It may include the same kind of nonsense that took place when they introduced electric deregulation in California. I don't know how the grid in Russia looks, but if it ties into the one in Finland, the new nuclear plant in Finland, with a capacity of 1600 MW, could turn out to be a beautiful investment.
Jim Beyer 12.6.08
Fred,
It's for the proposed Fermi-III. I think about 1600 MW. Right next to Fermi-II, so siting is not an issue. (They are both in Monroe, Michigan, which feeds well to SE Mich, Ohio, and Ontario.)
I think there are some concerns that the capacity concerns are not as dire, given the economic situation, but it seems to me the main concern is about $$$. Some concerns about technology (these things haven't been built in awhile) but not so much about environmental/regulation. (I think the shared site must have dealt with a lot of those issues.)
Jim Beyer 12.6.08
I also agree that the amount of mindshare the renewables get compared with the amount of energy they actually produce is unsettling. If John McCain's political ads on energy had wind turbines on it. Which produce how much of our power now? Less than 0.003 percent? He might as well have shown hamsters running on their wheels in cages as well.
I don't mean to be flip, the amount of energy from renewables can and should rise in the future. But what this says more than anything else is how slowly things will be able to change for the foreseeable future unless we take the unfavorable route of retiring working assets. An active conservation/efficiency program would save more energy than wind could generate with new construction. Probably a better use of resources at this point. (GWB shut that program down at the DOE when he took office, about 4 years before he told us we were "addicted to oil".)
Len Gould 12.8.08
Jim: I'm surprised to see you make those comments about "unwillingness to believe" coal could be replaced, then proceed to ignore solar thermal with transmission. Is not your dismissal of solar thermal simply exactly the same thing? Noting also that nuclear is clearly not without its own real shortcomings. As you know, I have no problem with nuclear, other than its capital cost.
Jim Beyer 12.8.08
Len,
How much energy is current produced by solar thermal? What is the biggest solar thermal plant built to date, worldwide even? Are there any even over 100MW?
I'm not dismissing solar thermal, or any other renewable. They just have very little market at this point.
Len Gould 12.8.08
Jim: Though in every case I prefer to agree with you, I feel I must point out that as long as no-one invests in solar themal plants on a large scale, there will be no large scale single sites operating. The installations are modular at about 50 MW per unit presently, and at that size have an excellent track record, though their optimum module size is apparently about 200 MW, which modules can simply be repeated at that scale to whatever size is needed. I fail to see the point. How many Gen III nuclear reactors are currently operating?
Something I'm quite confident of is that if sufficient hard contracts were tendered now for perhaps 8 GW of solar thermal to be built from now to 2015 supported by free use of federal land in the southwest, federally arranged and provided cooling water (eg. a saltwater pipeline ?or canal? from Gulf of California) and a TVA-type interstate HVDC grid plan, you will see a healthy self-financing industry from then on with rapid growth and very likely providing the lowest cost electricity from any source available. Also, no doubt a faster jumpstart could be arranged by providing some certainty beyond 2015 provided certain criteria are met, in order to help amortize the required volume manufacturing plant. I believe it should be targeted to 1) shutting down the old coal plants which have been patched together haphazardly long beyond their design lifetimes in order to skirt the new-source pollution regs. 2) avoid construction of any new coal burners not having CO2 sequestration. 3) reducing use of Natural Gas for baseload.
Really, it won't affect nuclear development at all, and the costs to the government would be very worthwhile, both in local manufacturing and installation, and maintenance and operations tax base. Given future of petroleum supplies, its a lot smarter than implementing a huge federal works program to build new roads and bridges.
Jim Beyer 12.9.08
Len,
I don't have much trouble with that. You sound like you are voicing the Scientific American solution. My main issue there is the utility (usage) of the HVDC lines. Moving large amounts of power that far is somewhat unprecedented. Not that it's a technical challenge, but an economic one.
Look at it this way. Given the daily variation in electrical demand, any HV connection is going to have some excess capacity at some point, most likely at night. That's a wasted resource. Well, if the line is 100 miles long, that's one cost; if it's 3,000 miles long, that's another. I think correctly sizing these lines is highly problematic. Generating power thousands of miles away from consumers is problematic as well.
Jim Beyer 12.9.08
Look at it this way. Say you are the city of Chicago, and you need 1000 MW (and it's typical daily and seasonal variation). You can get it, on average, from a wind site 800 miles away, or a more constant source from the SouthWest 2000 miles away (as the HVDC meanders)?
How much of the variation do you try to handle locally?
I'm not saying an interstate HVDC grid is a bad idea, but it is picking a winner, if subtly. Crasser folks might say we should just pipe water to the SouthWest rather than energy to the MidWest.
Patrick Vinton 12.9.08
Not to worry. Wall street has deferred this issue for most of us for at least 5-10 additional years as most won't be able to afford retiring as soon as they hoped.
Nick Panchev 12.9.08
Comments to all, including to the grand-grand-grand sons of Socrates (Σωκράτης), Nostardamus and alike φιλοσοφί, Whereas:
"Not to worry". Wall Street is not the same as Fund of Funds, the Social Hedges. (Do research). Who said the old chaps are retiring, or won't be able to retire? These old chaps, following the model of Bill Gates, out of their garages, being not only undercapitalized, but zero-capitalized, for the past decade, in secrecy, by brainstorming, invented all of these new disruptive technologies, which will replace the obsolete. These old chaps, for the same period, disgusted with the same old Regulatory status quo and with the Conglomerates behavior of not only curtailing better solutions, but virtually trashed-out these old chaps, will now be at their mercy. There will be no ?technology transfer? as sought by the Regulatory, nor there will ?commercialization? that will fall into the Public Domain. Who is to be blame for that fiasco? Who created the shortage of skilled, not laborers, but scientists, indubitably now coming out-of-the-box? (Again, do research) (Cautionary: May discover some very disturbing disruptive technology, aimed to control-the-market-by-tech and of not just of National, but of Worldwide implications).
?Renewable Energy Boys?. We all know the limitations and the fact that can not do reengineering beyond the Laws of Physics, Thermodynamics and Mother Nature, nor can twist such to entice and suit the Hedges. (The heck with Wall Street, since Wall Strippers never intended to entertained these in their garages old chaps, (the micron-caps), so let them bight Obama?s bullet, as of 01/2008). Commencing with multi-fuel hybridization and escalating to the max-out will not take another decade. The Governmental and the Regulatory bodies will not have the stomach, nor face the Political embarrassment, in the event of have to trash-out all of these enacted and codified into laws mandates. We, the Old Chaps are aware of that and now the Author of this article is seeking solutions by disclosing the facts. It is now is too late. It will take a decade to educate and transfer expertise to the novice. And who will do that? Other of age Novices? Do not look at the Old Chaps to be the mentors. The problem is real and in the mean time speculations is the best approach to the sought solution, so keep-on speculating. The only thing I can disclose is my name, Nick Panchev and age of 65. Hope you don?t find me in the Internet.
Hugh Bahar 12.10.08
The utility industry, in which most of us practice, may have the second highest average employee age. Without cheating and taking a look, I bet the first highest is the United States Merchant Marine, of which I have been a member. The discussions around attracting and retaining utility engineering talent remind me of the phrase "the beatings will continue until morale improves." Dana nailed it when he said there is a perception by the younger generation that the "energy industry is arcane, slow to adopt technologies and limited in growth opportunities." Between the old school menality of management, aged equipment, and routine of watching spinning mass make electrons, it's easy to see why no engineer in his/her right mind...unless they are obsessed with the smell of lube oil and coal dust, would chose the utility industry. Just try to find a really good electrical power distribution engineer these days, let alone someone who wants to manage union employees and fight with the state and federal environmental laws, all while having your children ask you why you chose a career where you're poisioning the fish with mercury. Towards the end of Dana's article, he touched upon what I believe the utility industry must do when they finally come to the end of their rope: develop employee farms within our institutions of higher education. Offer scholarships, meaningful summer internships, and a career path with financial and professional growth. By the way, on the summer internship topic, do you want to know a sure way to deter a young engineer from working in the utility industry? Promise him a rewarding summer internship, then assign him to file paperwork that your company is too cheap to hire administrative talent to accomplish. I've seen this over and over again. I hope that the American utility industry has the foresight to begin talent farms, but given the attitudes, behaviors and stodgy behaviors of the old schoolers whom have fought to get the jobs they have, I don't see any major changes in the downward spiral of available, motivated and capable young talent interested in pumping new blood into our industry.
F.Allen Morgan 12.10.08
Well isn't the problem that employees are treated purely as a resource (as in " our employess are our most important resource"). When you think about it, great employees 'love' the work and/or company or customers. Trying to manage people works for maybe call centers, but for jobs that are becomming more and more challenging due to technical inovation and/or decaying infrastructure you can't easily manage the attitude needed to overcome them. And why are the 'baby boomers' being written off, as if they are going to dissapear the minute they turn retirement age? Why not work to keep them, by giving them retirement but come back as a part time consultant? It took many of us, decades to become the 'highly productive' workers we are...and it will take decades to retrain the ones comming in to replace us.
Patrick Vinton 12.10.08
My point was that the energy industry will have additional time to find solutions to the aging-workforce problem because everyone's retirement account is worth less today than a year ago. Hence, there are 3 options for most people: 1. Save more. 2. Spend less. 3. Work longer.
Number 3 seems like the more likely scenario for most.
david austin 12.10.08
Pardon the criticism, but this discussion and article misses an obvious point ... and I believe it does so because those in the Power Industry can't see the forest for the trees.
There are surplus Engineers in Detroit and Engineers in Silicon Valley, and everywhere else where they seem to be layoffs, and they're dang smart and a whole lot more adaptable and willing to do anything than you give them credit for.
I'm one of them. Does a Semiconductor Engineer have the trianing to be a Power Engineer on the spot? No, but they aren't idiots. They can learn and they can learn fast. I'm an engineer in my mid 40's and I've completely re-invented myself so many times I've lost count.
That's what engineers are trained to do. When you graduated with a BSME or BSEE etc what you got was a paper that said you can learn lots of stuff, really fast, and apply it to real world problems. That's what that paper means.
The only problem is that you guys are looking for cheap engineering labor straight out of school, and you arne't going to find it. The guys coming out of school right now get paid nearly as much as I do, and they're nowhere near as good. HONEST.
So ... energy sages ... pull your head out of the sand, and quit complaining about there being no technical resources when they're staring you in the face. What you should be discussing is the best way to get such Engineers and technical specialists retrained for the jobs you have and will have coming up fairly soon now. Beleive me, it will be easier to train them than to train a newbie engineering student fresh out of college. Believe me ... I've worked with them, and I can't believe I was once so clueless.
Value experience, even if it isn't in your immediate field of work. Just be prepared for interesting resumes. Semiconductor Engineers, for example, change jobs every few years not because they're bad engineers but because that's the nature of the industry. Hire them. They'll be so grateful to be part of an industry with more stability and will prove it with their work ethic.
david austin 12.10.08
Another thing I feel necessary to mention: I know there will probably be some people who will say ... yeah but he's only 15 years younger than the guy he's replacing.
So what? Those 15 years he'll be just as productive as a guy straight out of school. Are you actually worried about having to train another guy in 15 years?
I know Utilities are a different animal altogether ... but you need to understand that while living in your little microcosm, the rest of the world has learned to bring people up to speed in life-critical jobs in very little time, and replacing a position after 15 years in the rest of industry is considered a luxury (and yes many of those jobs are in the health industry where you want as much permanence as possible).
Besides, chances are by then someone else will do the work to find people to fill that position.
What you're going to have to deal with is, in fact, some of the things Dana discusses here ... especially with regard to judging a candidate objectively. Don't let age fool you.
david austin 12.10.08
Patric Vinton-
You're totally right. "Retirement" was an invention to get jobs for young people. You'll live a lot longer if you work a lot longer. There's a reason health usually goes down hill after retirement, and it only partially has to do with age. The main ingredient is lack of activity. It's up to power companies however to make a career worth working later into life. Some concessions will be necessary, and employees may need to take partial retirements while working half-time.
Frankly, I don't understand why that isn't done more now. It seems the best of both worlds. Especially when you're bringing in new people ... to keep some of the old sages around to get them trained and act as a guru as needed. May actually be cheaper than periodically bringing them in for outrageous consulting fees.
david austin 12.10.08
Jim Beyer-
I cant imagine HV ever having excess capacity. Our consumption has linearly increased for dozens of years and is expected to continue to do so, while the bulk of our energy infrastructure is on the verge of non-compliance, while at the same time all new coal plant projects are being shut down for environmental reasons. What we have on our hands, my freind, is a train wreck in the making.
Another aspect often overlooked is the PHEV and EREV factor. If in 10 years just 10% to 20% of Americans are driving those cars as many pundits claim, it will put a big strain on the infrastructure.
Jerry Watson 12.10.08
An Obsession with Youth
Aging workforce, aging work force, aging work force; Power Generation companies have always embraced a herd mentality and aging workforce is no different. It would be actually be funny, but it hurts too much to laugh. It is easy to remember the past movements of the herd. In the early eighties it was build all the non nuclear plants you can it just going to cost more if you wait. Of course after Three Mile Island Nuclear was a dirty word. Then the nineties it going to be cheaper to buy power let some body else build it. Of course the summer 97 ended that shortsighted fantasy. This was shortly followed by cheap gas “Nat Gas was always going to be cheap.” After the turn of the millennia the battle cry became build a Nat Gas IPP plant in the competitions territory. In 2001 I went to the doctor to get a mole removed and it turned out it was not a mole but a small combined cycle Nat Gas IPP plant. Even with the stable supply of gas I would provide, the owners still couldn’t get an interconnection agreement so it went bankrupt. Luckily, the courts saved the company and its incompetent management only raping the shareholders.
Now, part of the herd has now turned it focus to the aging work force in the energy business. It is not an unjustified assumption to say that if Lindsay Lohan and Nikola Telsa applied for a job with a utility as a Generator Engineer that Lindsay would get the call. The logic would be simple Telsa just came back from the dead his health is questionable and besides he is a 152 years old he is bound to retire soon. Lindsay is young make her an offer. This is the current dilemma, should the most qualified person be hired or the youngest available reasonably qualified person be hired? The herd, like this article, is saying go young. In the real world this means when a qualified 30 year old and a more qualified 50 year old apply for the same job it makes sense to give the role to the younger qualified or almost qualified person. Even if it is in the utilities long term best interest to always promote or hire the younger candidate it doesn’t make it right or legal.
Unfortunately it gets even tougher when it is a training position to fill a critical role like System Operator. Should the person that has waited for almost his/her entire career to finally her/his shot at the role get it or would it make more sense to look beyond him/her for a person with more career in left front than behind. My conjecture is that gray haired old men just a stones throw from retirement themselves are selecting their replacements based more on age than any other factor and it is hype like this article that makes them feel justified in their choice. They are using legal department approved timed tested bullet proof selection programs to quietly circumvent age discrimination laws. They are still getting good people not only good but just as importantly young. My personal observations are much too limited to make valid conclusions from, but the continued rhetoric and fear mongering is assuring this is indeed the case. I think the 45 year old plus crowd is starting to get the message, “Our careers are over, we will be used in our current capacity until we retire or die. Advancement is for those not suffering from TMB (Too Many Birthdays) our careers and our contributions are all and all meaningless.” Having little value to my employer has been tough for me to accept.
Jerry Watson 12.10.08
One other thing 1/5th retiring in 7 years still leaves 4/5ths, besides if one assigns a career 40 years of length 1/5th should retire every 8 years or 2.5% per year and 7 years is pretty close. It sounds to me a lot of hype about what should be historically typical numbers as population growth levels out. But I do not have a book to sell or any other reason to justify hiring younger workers. I am just a bitter middle aged man that believes he still has a lot to give and resents all this hype that reduces my future opportunities because my hair has turned gray.
Patrick Vinton 12.11.08
Jerry, Well said..................
Jim Beyer 12.11.08
There might be some demographic issue here as well. The baby boomers were born from 1946 to 1963. So the earliest boomers (GWB,WJC) are just beginning to retire. I've noticed that boomers born from '46 to about '55 advanced pretty well, but the "tail" boomers, got stuck in the logjam of earlier boomers. There was problems in advancing because there were so many people just a few years older than they were.
As the early boomers start to retire, it would seem that now would be the time for the "tail" boomers, but what Jerry seems to be saying is that hiring strategies might leapfrog the tail folks and go straight for the Gen-X,Gen-Y types (BHO, born toward the end of the baby boomers).
Ferdinand E. Banks 12.12.08
I get the idea that a lot of people feel the way expressed above about 'forced retirement'. I pass buildings where I taught in this university town and feel a pang of regret about not being able to go in again and give a 'killer' lecture. Of course, when I saw the film 'From Here to Eternity again' last sunday I remember feeling the same way a couple of centuries ago when I found it expedient to leave the barracks where I spent some of my formative years.
Then suddenly I remembered something: the people who condemned me to retirement are mediocrities and/or ignoramuses, and things usually work out so that those same mediocrities and ignoramuses will also have to leave some day. That's when I feel good, a smile appears on my face and there is a song in my heart, and I continue on my way to the gym or the tennis court or the library or the jazz club or any place where I won't encounter those self same mediocrities and ignoramuses who are prepared to work night and day to destroy high quality education.
Two minutes after I landed in Bangkok last year as guest professor at the Asian Institute of Technology, an ignoramus asked me how old I was. I couldn't figure out why and told him. and a few weeks later somebody informed him that people my age are usually made to feel unwelcome on that campus. Shortly before leaving the university however the president of that institution asked me if I was willing to return this year, to which I replied that I would return if the Pope decided to appoint Osama to the College of Cardinals.
As for what this comment is all about, it's simple. When you deal with ignoramuses and mediocrities you have to deal with them on their level, because they don't understand anything else. Competence, dedication, and the irreplaceable human capital that is formed by years of work and education doesn't mean anything to them . In reality many of them find it offensive. I won't go into the details of how I handled this 'issue' whenever I got a chance, but on occasion it 'wasn't nothing nice'.
Jeff Presley 12.12.08
Interesting article and commentary. While I don't work in the utility industry I have several friends who do or did. I clearly remember one of them about 15 years ago who was always chafing at the lack of progress and glacial pace the utility did (or didn't do) things. He is the one who introduced me to the term ROAD, which is a military term as in "ROAD Sergeant". ROAD means Retired On Active Duty.
In other words, as Fred so eloquently put it above, there are mediocrities as opposed to meritocracies. "Jim" always complained about how most of the other EE's at his utility were already marking time, showing up for "work" but doing as little as possible and counting down the days to retirement, when what was different was apparently the showing up for "work" part. Jim on the other hand had ambition, and was jealous of me because I was on the other side of the fence, the one Mr. Austin points out. He shocked his colleagues by quitting (gasp) a virtually guaranteed until 65 job with relatively good pay and benefits, to strike out on his own.
As anyone who's been on the Silicon Valley side of the fence knows, the risks are high and the rewards substantially higher than the relatively staid utility business. I wish I could say Jim made out as well as some, but he wasn't so lucky. On the other hand, he had more fun by far. Even though he's gotten pretty gray by now, what I believe would be the smartest move by the utility is to hire him back, to be in CHARGE of the EE's. Someone with entrepreneurial spirit can easily convert that to Intrapreneurial leadership, and what I'd already observed with Jim while at the utility was how he attracted a group of likewise motivated folks, who suddenly were working overtime and had smiles on their faces as they eagerly took on exciting new challenges. Of course this will never happen, engineering management will always go to someone who has been there forever, is part of the system and part of the problem. Even IF they interview bright young candidates from engineering schools, the candidate has to balance the lifetime of boring work he'll face versus the excitement (and risk) of the Silicon Valley opportunities.
The fact is, if I were at a utility today, I would GLADLY hire EE's who had digital design experience, because compared to what they've done, the EE work at a utility is relatively pedestrian. The problem of course is the HR crowd, who will simply dust off their previous job placement ads (from 10 years ago) and resubmit them, and the ad won't allow for the kind of outside the box thinking that David demonstrates. More's the pity. A little outside the box thinking never hurts, and often is just what the doctor ordered to solve intractable problems, or capitalize on new opportunities. Silicon Valley engineers taking over utilities, creating the kind of dynamic that has given us Moore's Law. Sigh, nice daydream while it lasted...
Malcolm Rawlingson 12.20.08
Excellent article Dana. As one of the recent retirees I have seen what you describe with my own eyes....and indeed I am part of it. Due to the specialised nature of the nuclear industry I agree with Jude Clemente that the situation is even more serious than that in the electrical utility industry in general. Having said that the power companies are well aware of it and are taking steps to utilise the intellectual capital they have lost by contracting back those services where individuals are willing and able to work.
This allows the best of both worlds. Companies retain the skills of the older workforce AND they are allowed to work in an environment virtually free of the 9 to 5, 65 and out stigma that Jeff talks about above. There is also the opportunity to guide and train the younger work force...something I truly enjoy doing.
However the key question of who will replace us when we are literally no longer around (6 feet under) is paramount. There is a dearth of young people in general (thanks to the idiotic concept that North America is overpopulated) which is at the root of the problem and there is an even greater shortage of young people willing to take up engineering. It's much more glamorous and sexy to be a Wall Street financier, lawyer, accountant and (dare I say it) a professor of economics than it is to be an engineer that makes electricity every day.
Fortunately the governments of Asia (China, India and Korea particularly) have placed high value on science and engineering skills with the result that many of the engineers we so deperately need are coming from those countries.
It is of course the direct outcome of the baby boom generation's preoccupation with downplaying (almost to the point of extinction), the role of motherhood in our society. With Mothers having fewer children we have less children. With less children the school population goes down. With less school kids there are fewer teenagers going to College and University and even less of those are taking up science and engineering. So having no-one to replace us is an obvious outcome of having fewer children...what did we expect?
The narrow minded hiring practices of utility companies has exacerbated the problem for sure but it is not the cause of the problem. Graduating 50,000 lawyers a year and about 1000 petrochemical engineers means you will have lots of lawyers driving Mercedes and no-one making the fuel required to make them go. The long term outcome of that is as clear as day and yet we continually support the continuation of that course of action. How many TV shows glamourise the role of the lawyer or criminal investigator....dozens. How many TV shows do the same for science and engineering - none. Are we REALLY surprised fewer and fewer kids want science or engineering any more.
But for those that are still willing to work this shortage presents a once in a lifetime opportunity that is not to be missed. Quite unique in history.
For my own part I have never found the utility industry boring. I worked with some truly wonderful people and do not regret a minute of time I spent working there. To be part of the effort to construct and operate some of the worlds largest nuclear power plants was a rewarding and exhilerating experience and any young engineers in the business are going to be similarly rewarded...and paid a lot more than I was!!!
Malcolm
Malcolm Rawlingson 12.20.08
Fred - Oh how right you are about the ignoramuses of this world and those that strive for the mediochre having destroyed high quality education. I was shocked recently to find out that most of the engineering taught these days is theoretical (ie taught from books). I had often wondered why some of the young engineers seemed to be wonderfully good at manipulating computer software but seemed to have little understanding of pumps, motors, controls and valves that are the bread and butter of power engineering. It became clear that some graduates had never actaully seen this equipment , let alone operated it, except in some esoteric computer simulation.
The concept of a 13,000 horsepower motor being as big as a house seemed to be completely foreign to many.
I hate to say it but "in my day" it was not possible to obtain any type of engineering degree without hundreds and hundreds of hours in the engineering labs. It was well over 25% of the final mark as I recall.
Apparently that is no longer the case. Sad to say our engineering colleges appear to have succumbed to mediocrity.
And as for your age Fred...an intelligent mind is an intelligent mind - years on the planet have nothing to do with it. Since we need much more of the highly intelligent thinking you are capable of I would suggest that those who have the audacity to ask your age should be told it is none of their business.
I am sure in your own inimitible way you did just that. Well done.
Malcolm
Ferdinand E. Banks 12.21.08
Thanks Malcolm
Well, normally I take between 5 and 10 years off my age, depending on the time of day. As for that business in Thailand, I had just gotten off a plane and probably had only slept 2 hours in a 10 hour flight. Otherwise I might have taken between 10 and 20 when that moron asked.
As I might have noted, in the faculty at the engineering school IN Bangkok where I was they want retirees off the premises. I dont blame them. It's these retirees who are responsible for the present situation, where ignoramuses are allowed to teach. But you are right about this population myth where North America is concerned, Steve Forbes, the ignorant CEO of a great magazine once thought that the US population was too low: he was thinking of course of a conventional war with China. The late economist Julian Simon also a a belief about population that would have classified him as a criminal degenerate had he not been a professor: he though that the more people the better, because then there would be more brainpower. Here I suggest a ratio: BRAINPOWER/POPULATION. Take the limit of that as population approoaches infinity.
About the engineering colleges succumbing to mediocrity. I have no doubt about this, because the beliefs of the lawyers and MBAs who are becoming more important in industry is that when they need engineers they can recruit them in e.g. China, India, Russia, East Europe, Mexico - anyplace where the engineering schools are not commanded by ignoramuses, as in their own countries. Medicine might be going that way too. My favorite example though is the Australian School of Infantry, whose commander is a woman. I wonder how she would have enjoyed doing pushups on concrete covered with snot and spit, as we used to do, while sergeants stood behind us cursing and questioning our manhood.
Jeff Presley 12.21.08
Malcolm, You're right as always. When I was very young I wanted to be a nuclear engineer, sometimes I regret that decision, but mostly I thank my lucky stars. I do believe the job gets substantially more interesting for you than for, for instance, an EE at a hydro power utility. And there IS something to be said for dealing with machines the size of houses. The best EE's I worked with came from Georgia Tech, and that was because of the intern program they have there. No fetching coffee, serious design and implementation work, at least that's the way it used to be and I hope still is.
Funny thing about lawyers. Unlike other professions, like CPA's for instance, the huge numbers of lawyers isn't an economic detriment. The reasoning for that comes from this old saw:
A lawyer moves to a small town and hangs up his awning. He figures there will be divorces, business failures, arguments, lots of business. Six months later, he's starving, and is getting ready to leave town. Then another lawyer moves in. Six months later they're both driving Mercedes.
When there's only one lawyer, no reason to hire him, you and Joe can work it out, but when Joe hires a lawyer, now you have no choice. I often wonder how nice our society would be if we had 1.3 million engineers instead of lawyers. Maybe we'd have those flying cars and moving sidewalks of 1950's sci fi.
BTW at my house we're in our 5th year of record cold. Can I sue those global warming scientists for failing to deliver on their promises? :)
Mike Nicholas 12.23.08
I work for a National Energy Recruiting firm and I work with 3 big utilities, nuke and fossil, and half my battle is getting these power companies and utilities to look at Engineers with a. Alternative experience that can translate over, or b. More than 35 years of experience. The whole point to me is the knowledge transfer that simply will not occur without great difficulty.
I will contend, with respect, that most companies are actually looking for those mid-level (maybe high 30s, mid 40s) Engineers in the industry, they just don't exist and resort to entry-level and justify with low salary. Good news is, they are more and more willing to wake up and actually pay the experienced what they are worth. The skills you all have ARE IN HIGH DEMAND and once the economy turns up a bit, these companies will clamour for your services.
Malcolm Rawlingson 12.27.08
Jeff, I think you would have made a great nuclear engineer....and yes I do get quite a thrill working with these big machines especially when they start up. Back in the UK where I am from I was a reactor operator at Bradwell Power station (2-unit Magnox - now dismantled). That job taught me the most and gave me the greatest satisfaction of any in my career. I think I understood what engineering was all about during that period in my life. And Mike.....I so agree with your comments. Yes the power utilities want the guys and gals in the 35 to 45 years range...but they are not there.....and those they do have are getting suffocated by endless procedure writing and paperwork or fighting cumbersome computer networks that seem to hinder not help. I worked for a great company but didn't want to wait for my 65th so I took early retirement....I have never been busier. I am very active and still enjoy power plant engineering plus I think years of experience makes for better decisions. That is important in an industry where errors can be very costly. Sure us old guys aren't cheap but we are needed to transfer all our knowledge to the younger folks. Once we throw in the towel I don't know where all the know how will come from....it worries me.