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METHODOLOGY
West Monroe and Utility Dive’s Brand Studio surveyed three groups critical to an in-depth understanding of the utility workforce transformation challenge: 177 utility executives, 246 utility workers, and 1,000 non-utility workers under age 40. The survey was conducted online.
B2B vs. B2C
Non-Utility Employees
KEY FINDINGS
Key point 2
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Key point 1
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Key point 4
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To successfully upskill a workforce, employers must consider the needs and preferences of their employees—before implementing a technology.
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Utilities are facing a number of challenges to attract and retain the talent they need for the future. More digital skills are needed—across all utility roles—to support the product and service innovations that are transforming the industry. But, the young and digitally savvy talent who are propelling companies into the digital age are not flocking to traditional industries like utilities. While this reality is a major challenge, it also represents an opportunity for utilities to re-envision roles—and for an increased focus on the employee experience.
Half of our respondents said they always include digital value creation as part of their investment thesis, and another 34% said they often include it.
Only 42% of respondents to our survey said their firm has a standard definition of digital that everyone aligns to. And 40% said half or fewer of the companies they own have a documented digital strategy.
50% of PE executives said that making improvements quickly enough to have an impact is the greatest barrier to digital investment.
2-Minute Takedown
Tech being used
to drive efficiency
How efficiencies
are found
Within six months after acquisition Within a year after acquistion
Within two years after acquistion
Brad Haller
Director, Mergers & Acquisitions
bhaller@wmp.com
AUTHORS
Nick Hahn
Director, Digital
nhahn@wmp.com
38%
Director/
Senior
Director
6%
Board Member
30%
President
or C-level
26%
VP/SVP/EVP
50%
B2B
50%
B2C
75%
Deal side
25%
Operating
side
82% said they view mature digital investments at a portfolio company as a value driver at exit and 75% said they make digital investments to improve the exit price without the expectation of performance gains before the sale.
PE firms appreciate the value of digital.
Not everyone lays the groundwork necessary for digital success.
Driving change and value over the hold period represents a top challenge.
Digital investment improves a portfolio company’s exit price.
Mike Rowland
Director
mrowland@wmp.com
Colleen Campbell
Director
ccampbell@wmp.com
Tom Hulsebosch
Senior Managing Director
thulsebosch@wmp.com
AUTHORS
Current efficiency ratio
*BARS REPRESENT % OF RESPONDENTS
TARGET efficiency ratio
*BARS REPRESENT % OF RESPONDENTS
ROADBLOCKS TO IMPLEMENTING EMPLOYEE ENABLEMENT TECHNOLOGIES
METHODS EMPLOYEES PREFER TO PREPARE FOR TECHNOLOGY USE
EMPLOYEES:
What should utility execs prioritize?
4%
18–24
REGION
49%
31–40
47%
25–30
Jodi Bednar
Director
jbednar@wmp.com
Corporate strategy planner
for a major Northeast investor-owned utility
The future of the utility is moving toward a platform business model. The importance of IoT integration and leveraging the data from the platform in decision-making processes are critical. Therefore, analytics, data science, and technology skills would be more relevant in daily activities. If the utility does not succeed in recruiting tech talent, it would end up having the wire/cable business only—which will not have much growth opportunity.
Employees believe utility leaders...
Financial performance (profitability, revenue, cutting expenses, etc.)
Customer service and satisfaction
Renewables and energy efficiency
Employee experience, job satisfaction,
and/or workplace culture
Power system performance
(reliability, power quality, etc.)
1
2
3
4
5
Creativity and innovation
Employee experience, job satisfaction,
and/or workplace culture
Power system performance
(reliability, power quality, etc.)
Customer service and satisfaction
Renewables and energy efficiency
1
2
3
4
5
EMPLOYEES:
Does job satisfaction affect productivity?
Job satisfaction significantly impacts productivity. Overall, utility workers reported:
productivity
55%
37%
6%
2%
Great impact
Moderate impact
Small impact
Not at all
LEADERS:
What would help attract younger/technical talent?
Developing our culture and employee experience
Investing more in workplace improvements
Redesigning job roles and descriptions
Fostering inclusivity or diversity
Bigger budget for salaries or bonuses
72%
55%
43%
35%
33%
RECRUITS:
How could utilities be more attractive?
SHOULD
Prioritize
SHOULD
Prioritize
DO
Prioritize
DO
Prioritize
EMPLOYEES:
What should utility execs prioritize?
EMPLOYEES:
Does job satisfaction affect productivity?
LEADERS:
What would help attract younger/technical talent?
RECRUITS:
How could utilities be more attractive?
2-Minute Takedown
Over 80% of younger workers view utility careers positively, and nearly 70% would consider working for a utility. Plus, over one-third (36%) of current utility workers feel highly satisfied with their jobs, and 55% feel fairly satisfied.
Utility careers carry a good reputation.
A mere 6% of leaders believe their utility is properly recruiting younger/technical talent. Nearly half (48%) believe their recruiting
may not be enough to meet future needs.
Real recruiting concerns exist.
Just over half (52%) listed employee experience as one of their top priorities. Utility workers generally felt that leadership priorities should be almost the opposite of what they currently seem to be.
Utility leaders’ priorities are in question.
Over 60% of utility workers indicated that their workplace technology needs at least some updating. Also, 42% of younger, non-utility workers said that more flexible working arrangements would make a utility career more attractive.
The employee experience has room for improvement.
Offer more competitive compensation and benefits
48%
44%
Provide clearly defined career advancement
and professional development opportunities
42%
Provide more flexible work arrangements
(e.g., telecommute, flexible schedule, etc.)
37%
Make the working environment safer
34%
Recruit young talent more actively
29%
Update the work environment/space to be more modern
25%
Form a more diverse workforce
22%
Improve workplace technology
5%
Nothing
Current Utility Employees
Utility Executives
AGE
18%
West
30%
Midwest
29%
South
23%
East
9%
Less than 1 year
2–5
46%
18%
6–10
Years of Experience
at Utility
Department
15%
11–20
12%
More than 20
Business side (finance, human resources, marketing, customer service, etc.)
3%
47%
Operations (generation, transmission, distribution, engineering, etc.)
27%
Information technology (IT)
16%
Regulatory, government, legal
6%
Field services (installation, maintenance, repair)
1%
Other
77%
Department manager
CEO or other C-suite executive
12%
11%
Vice President
Job Title
Department
Business side (finance, human resources, marketing, customer service, etc.)
48%
Operations (generation, transmission, distribution, engineering, etc.)
21%
Information technology (IT)
9%
Regulatory, government, legal
3%
2%
Field services (installation, maintenance, repair)
2%
Other
Enterprise leadership (all departments)
15%
Non-Utility Employees
Current Utility Employees
Utility Executives