American Gas - August 2012 - (Page 29)

For example, an organization we’ll call UtilityCo is a large gas and electric utility that was deeply concerned about the impending loss of more than 25 percent of its workforce within five years. Due primarily to an aging workforce, these losses represented an exceptional change for a company accustomed to single-digit turnover. The costs were estimated at up to $85 million, not including an estimated $57 million loss in human capital investments made in these departing employees. When combined with a shrinking supply of new recruits in certain skill groups, this meant increasing competition for critical labor. Having the right people in the right places at the right time was a business necessity. To identify future gaps and create a prioritized plan to fill shortfalls meant putting a reliable workforce planning process in place. The urgency is underscored by the increase in technological skill and training required to operate the next generation of computerized industrial equipment that is replacing earlier forms of automation in the natural gas industry. UtilityCo defined its workforce needs—which parts of the business were expected to grow and which jobs within the business were critical to the ongoing operation of the company. Next, using the historical flows of employees in, through, and out of the company, we forecasted the future workforce using ILM Analysis and External Labor Market (ELM) Analysis™ and determined for each job and location when and where shortfalls would occur. Finally, using the insights from the ILM Analysis, workforce plans were prepared with the action steps needed to fill the gaps, tailored to each business unit’s needs. These plans established metrics to track the progress and success of workforce planning interventions. No longer is UtilityCo dependent on anecdote to manage its workforce or plan for its future. Moreover, projected savings in turnover and retained human capital amount to tens of millions of dollars, strengthening the business case for current and future workforce investments. ect what your workforce will look like in the future, under current or alternative scenarios. Such projections can show how employees will be distributed across career levels, what the demographic and occupation mix will likely be, as well as the associated cost of that workforce, given anticipated trajectories of pay. This kind of analysis can meaningfully examine job levels from executives on a multinational and national level, down through middle management and technical leaders, to regional and local supervisory levels. But energy organizations need to do more than describe their internal labor markets; they also need to explain them. By understanding what actually drives the critical dynamics within their internal labor markets, organizations can effectively change the drivers in ways that can deliver, reliably, the workforce they require. ILM Analysis statistically models the dynamic process behind these talent flows and associated compensation. Specifically, it identifies and measures the drivers of such workforce outcomes as attraction, retention, promotion, pay, and performance. Statistical estimation of these models can help organizations know the answers to such key questions as: Who are we attracting into the organization, and are they the right kinds of people? Are we succeeding in getting from the available talent pools, the kind of people who will be The urgency is underscored by the increase in technological skill and training required to operate the next generation of computerized industrial equipment. Help Wanted Key jobs that the industry will need to fill over the next couple years, based on its continued growth. T Mapping Internal Flow Understanding your internal labor market(s) starts by mapping the flows of talent in, through, and out of the organization over time. These are the core talent flows that characterize the organization’s internal labor markets. They determine who your workforce is today and what it will become tomorrow. Because these flows capture a dynamic process, they also provide the basis to proj- he competition for experienced workers in our industry will continue to increase, even without an economic rebound, due to a combination of impeding retirements, the majority of new plants in the U.S. being natural gas, far outpacing renewable sources, and the dramatic increase in shale gas. Since the U.S. is the leader in shale gas, anyone with experience in hydraulic fracturing going back five years should be in high demand in North America and Europe. The key jobs employers are struggling to fill are experienced geoscientists, piping engineers, and most environmental positions. In addition, while not as difficult to find, process engineers and operations managers/ supervisors, mechanics, welders, and pipefitters are being heavily recruited for new operations, and replacements for retiring workers. Specific skills that are in limited supply are engineers with major project management experience, gas distribution engineering, and EH&S experience. august/september 2012 AmericAn GAs 29

Table of Contents for the Digital Edition of American Gas - August 2012

American Gas - August 2012
Contents
President’s Message
Industry News
In the Know
Safety First
Tech Talk
Taming the Talent Pipeline
Decision Time
Places to Be
Vendor News
Noteworthies
Advertisers’ Index
Jobline
Marketplace
Facts on Gas

American Gas - August 2012