POWER June 2021 - 22

WORKFORCE
Prioritizing the Workforce Is
Critical to Utility Transformation
Investments in technology, infrastructure, and service can only take a utility so far.
Without organizational agility, employee expertise, innovation, and creativity, true
and sustainable transformation is improbable.
Cyntressa Dickey
and Ryan Levine
A
s the power and utilities (P&U) sector
moves toward a decarbonized,
digitized, and decentralized future,
companies are battling for the talent they
need to unlock business transformation
and create collaborative cultures that can
thrive in a more complex, competitive
environment. This battle for talent is a
significant challenge.
The path forward for utilities is being
shaped by many factors without a clear
blueprint for success. Societal changes
related to the future of work, including
a generational shift in the workforce and
the impact of digitization and automation
on jobs, create additional roadblocks.
The rise in environmental, social, and
governance (ESG) investing, and new
Securities and Exchange Commission requirements
around human capital disclosure,
bring new responsibilities and the
need for enhanced transparency.
As the industry strives to meet the
challenges presented by today's changing
marketplace, human capital management
and culture sit at the forefront of
corporate governance issues and the
keys to delivering long-term value for all
stakeholders.
New Market Realities Require New
Skills
The need for transformation across the
P&U sector is very real. Four major market
trends-each one transformative on
its own-are coming together to compel
utilities to adapt quickly. Changing
consumer expectations, emerging technologies,
policy and regulatory changes-especially
the Biden administration's
goal to modernize the electric grid and
produce 100% carbon-free electricity by
2035-and new market entrants are all
forcing utilities to strive for transformation.
To build a skilled workforce that can
thrive in a new energy world, utilities
must balance their focus on an evolving
operational model with equal attention
on employee strategy.
22
Proportion of
workforce needing
to be reskilled
1. This graphic shows the proportion of the workforce needing to be reskilled based on findings
from the Ernst & Young LLP (EY) Power & Utilities Digital Transformation and the Workforce
Survey. Courtesy: EY
The recent Ernst & Young LLP (EY)
P&U Digital Transformation and the
Workforce report-a survey of 159 leading
P&U executives-found that 93% of
respondents plan to adapt their companies
to meet changing consumer expectations
for a cleaner economy over the
next several years. And 91% are changing
their mix of energy sources. In addition,
the evolution of digital technology
is creating pressure to modernize. The
survey found:
■ 94% of respondents report their companies
need to invest in technology
and the workforce to support their organization
right now.
■ 91% of respondents' companies are
planning to invest at least a moderate
amount in digital technologies over
the next several years, with 45% investing
a great deal.
Utility executives understand that
technology requires the right people
to make it work. For example, 89% reported
that having too few workers with
the right skills is a challenge to digital
adoption, and 85% said that the ability to
reskill (Figure 1) will determine their success
over the next three years. Yet, just
57% agreed that their organization has
a robust plan to reskill in that same period.
This situation indicates that without
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substantial changes and reprioritization
of the workforce, P&U companies will
stand to lose value and open the door to
market challengers.
Attracting Talent Is More Difficult
Than Ever
In a world where digitally savvy employees
have a broad range of opportunities,
attracting, hiring, and retaining a skilled
workforce is challenging. Compared to
the staid world of utilities, Big Tech and
other industries often offer what appears
to be a more compelling option-especially
to younger workers.
As utilities transition from traditional
grid service providers to market-oriented
" fit-for-purpose " distribution systems,
they need new skills and capabilities
across the entire value chain. Process
automation specialists, data analysts, artificial
intelligence (AI) and machine learning
specialists, and software developers
are just a few of the new roles in high
demand and short supply. Even existing
jobs require almost constant reskilling to
adapt to changes in software, technology,
and processes.
This skills gap has major implications
for technology rollouts. As utilities
rely more on digital technologies, the
amount and scope of data has surged,
and so has its importance. But turning
data into insights requires critical data
POWER | June 2021

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POWER June 2021

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