Workforce Challenges Persist

By Rick Dacri, Dacri & Associates LLC

Public utilities continue to face tough workforce challenges. Recession, crippling health care costs, and labor shortages will push not only manager’s ability to cope, but also their ability to grow and thrive in 2008. Employers will need new, creative solutions to address three critical challenges that will plague every public utility:

1. Where Are All The Workers: Whether you’re looking for linemen, engineers or customer service staff, the availability of quality labor continues to dwindle—and relief is no where to be found. We know that as the baby boomers begin retiring, shortages of labor will become even more acute than it is today. Employers are taking extraordinary steps to recruit and retain workers. Those that are positioning themselves as great places to work are finding ample applicants and are able to keep them too. Employers who are having trouble attracting good people better make some changes in the way they operate and they better do it now or they will continue to suffer from unfilled positions and constant turnover.

2. Not the Same Workforce: Today’s workforce looks so different from the past. Employers are now faced with the challenge of integrating and managing a multigenerational, multicultural workforce. The Boomers are graying fast and their needs and demands are growing. Younger, tech savvy workers are muscling their way into the organization, hungry for opportunity and recognition. At the same time mixing this aging employee group with the younger upstarts can often result in clashes in values and expectations. And when you add newer immigrants to the mix, you’ll find unprepared managers scratching their head, scurrying to find a user’s manual. Hiring right, assimilating new workers into your workplace and culture, ongoing training of supervisors, and lots of employee education can be the difference that makes a diverse population a winning combination. Absent that and you can have chaos.

As this older workforce begins to consider retirement, employers must grapple with two other issues: replacing the talent and their knowledge. The cost of replacing a skilled worker is very expensive and time consuming. For the very key workers, the loss can be debilitating to the organization. More and more organizations understand that they must put in place succession planning strategies to prepare for the inevitable losses. Knowledge retention plans are being designed that identify positions and people where potential knowledge loss is the greatest and most imminent. These plans help to capture and transfer critical institutional knowledge within the organization. While it may be overwhelming for smaller utilities to consider these options, having no plan will leave them exposed and vulnerable.

3. Health Insurance Cost Explosion: Health insurance costs continue to rise at an alarming rate. The Kaiser Family Foundation reports that premiums for family health coverage have risen 78% since 2001, while wages have gone up 19% and inflation 17%. Employers are forced to adopt different strategies to deal with the crisis. Many have tried passing a greater share of the costs onto their employees, hiring more part-time workers who are not eligible for benefits, or simply dropping coverage for everyone. While these solutions may make some financial sense, they will jeopardize your ability to attract and retain quality employees. It appears that over the long term, employers may find that focusing on employee health and wellness may provide them the greatest relief.

The challenges before us are daunting. Yet these are the realities we face. Employers who proactively address these workforce issues will be successful.

Rick Dacri is a human resource consultant, featured speaker at regional and national conferences, and author of the book “Uncomplicating Management: Focus On Your Stars & Your Company Will Soar.” Since 1995 his firm, Dacri & Associates has helped organizations improve individual and organizational performance. Rick connects with people in a positive and challenging way to offer practical solutions. He can be reached at 207-967-0837, or via email at rick@dacri.com