[Smart Grid Market Research] Smart Grid Hiring Trends Study (Part 1 of 2) - Zpryme Smart Grid Insights

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Within the Smart Grid ecosystem, the time for human resources strategy development is now. Forward-thinking utilities, technology vendors, power engineering companies, universities, and government agencies will not try to reinvent the wheel, but rather leverage as many best practices as possible. This inaugural study by Zpryme and Smartgridcareers.com gives Smart Grid hiring managers the baseline data they need to start benchmarking their human capital strategy. The key findings and recommendations of this report will help utilities and Smart Grid vendors anticipate the challenges that lie ahead. Further, universities across the United States must begin to educate a new generation of energy leaders from diverse backgrounds in computer engineering, computer science, and engineering-focused IT.

Text of [Smart Grid Market Research] Smart Grid Hiring Trends Study (Part 1 of 2) - Zpryme Smart Grid...

  • 3 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

    Executive Summary Within the Smart Grid ecosystem, the time for human resources strategy development is now. Forward-thinking utilities, technology vendors, power engineering companies, universities, and government agencies will not try to reinvent the wheel, but rather leverage as many best practices as possible. This inaugural study by Zpryme and Smartgridcareers.com gives Smart Grid hiring managers the baseline data they need to start benchmarking their human capital strategy. The key findings and recommendations of this report will help utilities and Smart Grid vendors anticipate the challenges that lie ahead. Further, universities across the United States must begin to educate a new generation of energy leaders from diverse backgrounds in computer engineering, computer science, and engineering-focused IT. Methodology The Smart Grid Hiring Trends 2012 study was conducted by surveying 184 Smart Grid Hiring Managers and Executives in June 2012. Only one response per company was allowed for the study. Only U.S. based executives and managers who played a role in making hiring decisions for Smart Grid-related roles at their respective companies were allowed to respond to the survey. Key Findings 1. The overall average number of employees hired increased from 24.8 in 2010 to 25.7 in 2011. However, Hiring

    Managers estimated that their overall hiring would decrease in 2012, to 15.9 employees, on average. The study was conducted in June of 2012, thus this estimate should be interpreted with caution. That said, there is a net positive hiring growth trend in the Smart Grid industry.

    2. Companies with 501 to 1,000 employees hired an average of 27.0 employees in 2010 and 36.6 employees in 2011. These companies also indicated that they would increase the average number of employees they hire in 2012 (45.8). This is not surprising since these companies are likely more established than smaller companies in the Smart Grid industry, but not as heavily staffed as larger companies.

    3. Fifty-nine percent of hiring managers said that starting salaries for new hires are increasing. The average annual compensation for new hires without previous experience was $55,600.

    4. Sixty-five percent of hiring managers said that starting salaries for experienced hires are increasing. The average annual compensation for Experienced Engineers/ Operations Professionals is $93,800, while it is $119,200 for Senior Experienced Engineers/ Operational Professionals. The average compensation for Experienced Management Professionals was $136,000. The average compensation for Experienced Directors and Executive Managers was $175,000 and $190,000, respectively.

  • 4 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

    5. Starting salaries between new hires and Experienced new hires were significantly different by position. However, the data indicate that Smart Grid career opportunities can be financially rewarding for employees with management skills and advanced engineering expertise.

    6. Overall, the use of hiring bonuses was found to be more common for Experienced new hires. Among the managers that indicated that they did use hiring bonuses for new hires, the largest group (33%) indicated a bonus amount of $1,001 to $2,500. Among the managers that indicated that they did use hiring bonuses for Experienced new hires, the largest group (29%) indicated a bonus amount of $5,001 to $10,000.

    7. The time needed to recruit both new hires and Experienced new hires is increasing, but hiring managers indicate that it takes longer to recruit Experienced new hires.

    8. For new hires without previous experience, the top sources cited for recruiting were headhunters and referrals from industry contacts. Respondents identified referrals from industry contacts, word-of-mouth from current employees, and headhunters as their top sources for recruiting experienced industry professionals.

    9. Sharing best hiring practices with industry and professionals organizations was expressed to be the main way hiring managers would solve their long-term hiring challenges.

    10. Mentoring programs with employees who already have skill sets for Smart Grid roles was chosen as the top training method to build Smart Grid skills.

    11. According to the hiring managers, executive leadership and hiring managers were most likely to set Smart Grid hiring policies at their respective companies and organizations.

    12. Sixteen percent of respondents said that retention of Smart Grid employees is a large problem. When asked about how retention of Smart Grid employees has changed over the past five years, 24% said that employees are staying less time now.

    13. Seventy-seven percent of hiring managers indicated that they allow Smart Grid employees to telecommute. Among those that said they allow telecommuting, 32% said they have allowed telecommuting for over 5 years. Thirty-eight percent indicated they have allowed telecommuting for 2 3 years.

  • 5 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

    Survey Respondent Characteristics Company Size Forty-one percent of hiring managers said they worked for companies with 1 to 100 employees, 16% worked for companies with 101 to 500 employees, 6% worked for companies with 501 to 1,000 employees, and the remaining 37% said they worked for companies with 1,000 or more employees.

    Job Title The titles of those managers who responded were (in descending order of frequency*): Director (39%); Manager (26%); Vice President (13%); CEO (9%); President (7%); and Consultant (6%).

    1 to 100, 41%

    101 to 500, 16%

    501 to 1,000, 6%

    1,000 or more, 37%

    Percent of Respondents by Number of Employees in Thier Company

    (figure 1, source: Zpryme & Smartgridcareers.com)

    Director, 39%

    CEO, 9% President, 7%

    Vice President,

    13%

    Consultant, 6%

    Manager, 26%

    Percent of Respondents by Job Title (figure 2, source: Zpryme & Smartgridcareers.com)

  • 6 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

    Type of Smart Grid Employees Hired About half (49%) of the hiring managers in the study said their company only hired experienced new hires with previous work experience. The other half (51%) said they hired new hires without previous work experience (outside internships) AND experienced new hires with previous work experience.

    Sectors Served by Respondents The hiring managers in the study represented 25 Smart Grid sectors. Sectors with the largest representation in the study were AMI, distribution automation, demand response, utility systems, meter data management, network management, communications, and utility operations.

    Sectors Served by Respondents

    (table 1, source: Zpryme & Smartgridcareers.com)

    Sector % of Respondents AMI 62% Appliances 16% Battery technologies 19% (BAN/HAN), energy management systems 36% Community Energy Storage (CES) 22% Chips 4% Communication (HW/SW/Control) 44% Consumer advocacy 18% Demand response 59% Distributed automation: communications and software 61% Distributed automation: hardware and sensors 47% Distributed generation and storage 33% Electric vehicle technologies 30% FAN 10% GIS 29% Greentech: PV solar, storage 23% HVAC and building control systems 22% LAN 27% Meter data management (MDM) 47% NAN 20% Network management 47% Security 42% Smart meter manufacturers 32% Utility operations 43% Utility systems development/integration and consulting 50%

    New Hires without previous

    work experience

    AND Experienced New Hires ,

    51%

    Only Experienced

    New Hires with

    previous work

    experience, 49%

    What Type of Smart Grid Employees Does Your Company Hire

    (figure 3, source: Zpryme & Smartgridcareers.com)

  • 7 www.zpryme.com | www.smartgridresearch.org | www.smartgridcareers.com Smart Grid Hiring Trends Study (part 1 of 2) | July 2012 Copyright 2012 Zpryme Research & Consulting, LLC All rights reserved. | Brought to you by Zpryme & Smartgridcareers.com

    Total Hires by Company Size, 2010 2012 The overall average number of employees hired increased from 24.8 in 2010 to 25.7 in 2011. However, hiring managers estimated that their overall hiring would decrease in 2012, to 15.9 employees, on average. The study was conducted in June of 2012, thus this estimate should be interpreted with caution. That said, there