Two years ago, the Research Advisory Council (RAC) of AwwaRF noted that the early
Baby Boomers were starting to reach retirement age and that they were being followed by
a generation (Gen X) that was about one half its size. In addition, the RAC noted with
concern the increasing shortage of engineers. As a result they decided to fund a study of
these and related issues titled, "Succession Planning For A Vital Workforce in the
Information Age." Shortly after the award, the Water Environment Research Foundation
elected to co-fund the study, noting that this was also a major concern of wastewater
utilities. The survey conducted as part of that study confirmed the RAC's concerns. 35%
of current utility employees will be eligible to retire in 10 years. Attrition rates, currently
at 7%, are expected to rise to 8%. Since the people retiring are the most senior people in
the utility, these retirements will result in a serious "brain drain". A study of the similar
situation in the electric utility industry estimated that more than 80% of the useful
operating knowledge was "tacit" - knowledge that is known by users but not
documented.
In addition to those problems, the survey also identified some related problems - utilities
are becoming more complex, but competent new hires are hard to find. HR managers
complained about being at a disadvantage, being forced to hire from "the bottom of the
labor pool."
The news, however, is not all bad. Whenever there is a period of major generational
changes, opportunities are presented. A reduction in staffing due to retirements will allow
utilities to become right-sized and to rationalize positions and organizational structures.
Properly handled, this will be a time when new, improved ideas can be implemented with
less resistance from the old guard. One conclusion of the Succession Planning study is
that every utility should implement Workforce Planning to properly manage this
transition. The Human Resources Department will have a key and essential role in
developing and implementing this plan. Includes tables, figure.
| Edition : | Vol. - No. |
| File Size : | 1
file
, 390 KB |
| Note : | This product is unavailable in Ukraine, Russia, Belarus |
| Number of Pages : | 6 |
| Published : | 06/17/2004 |
