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Interpersonalskills
Integrity
ProfessionalismReputation
Motivation Dependabilityand reliability
Self-development
Flexibility andadaptability
Abilityto learn
Informationtechnology
MathematicsLocating,reading,and using
information
Writing
Listening
Speaking
Engineeringand
technology
Criticaland
analyticalthinking
Science
Businessfundamentals
Teamwork
Followingdirections
Planning,organizing,
andscheduling
Problemsolving,decisionmaking
Ethics
Employabilityand
entrepreneurshipskills
Workingwith basichand and
power toolsand
technology
Troubleshooting
Safetyawareness
Industryprinciples
andconcepts
Environmentallaws and
regulations
Qualitycontrol
andcontinuous
improvement
Gas transmissionand distribution
Non-nucleargeneration
(coal, natural gas,oil, hydro,
solar, wind,biofuel,
geothermal)Nuclear
generation
Electrictransmission
anddistribution
Alternatefuel
technicians
Lineworker
Plantoperator
Substationtechnician
Electricaltechnician Engineering
technician
Mechanicaltechnician
Relaytechnician
Instrumentand controltechnician
Natural gastechnology
TIER
1TI
ER 2
TIER
3TI
ER 4
TIER
5TI
ER 6
-8
ACADEMIC COMPETENCIES
PERSONAL EFFECTIVENESS
WORKPLACE COMPETENCIES
INDUSTRY-WIDE TECHNICAL COMPETENCIES
INDUSTRY-SPECIFIC TECHNICAL COMPETENCIES
OCCUPATION-SPECIFIC
AmericAn GAs July 2013 26
ENERGy INDuSTRy COMPETENCy MODEl
CEWD’s model helps students, educators, and job
seekers understand what’s needed to succeed in
an energy-related career.
July 2013 AmericAn GAs 27
Recognizing critical skills shortages, natural gas
producers and utilities are casting a wide net
for homegrown talent By sue KhodArAhmi
t’s no secret that the natu-ral gas industry is grow-ing. New technologies are opening the door to new gas fields, more refined methods, better distribu-tion and transmission ca-pabilities, new plants, and more. But before utilities can capitalize on all those opportunities, they need people to do the work.
The energy industry as a whole is facing critical workforce shortages in virtually every segment,
and has been for some time. Studies and surveys continually point to shortages among experienced line workers, field technicians, pipeline engineers, quality control specialists, plant operators, and others. Data compiled by the Center for Energy Workforce Development—a nonprofit organization backed by en-
ergy industry associations, including the American Gas Association and the Edison Electric Institute, as well as utilities—show that between 2009 and 2011, the industry workforce decreased by about 11,000 jobs, to about 525,000. Forty-two percent of those jobs fall into CEWD’s key jobs categories—line workers, techni-cians, plant and field operators, and engineers. But it’s not that the jobs aren’t there, it’s that there aren’t enough people qualified to fill them.
There are two primary reasons for this. First, the energy workforce is matur-ing—fast. CEWD notes that in 2010, the average age of natural gas and electric utility workers was 46.1 years old. The group’s 2011 survey revealed that almost 62 percent of current workers have the potential to retire or leave for other reasons over the next decade. Although the recent economic downturn may keep some people on the job slightly longer, the survey suggests that about 9 percent
of skilled workers are ready to retire or considering retirement now. That’s about 18,000 people.
Further analysis suggests that by 2015, 36 percent of workers considered criti-cal to the industry (largely skilled utility technicians and engineers) may need to be replaced due to retirement or people leav-ing the workforce for other reasons, and another 16 percent by 2020. The numbers add up to more than 100,000 employees who will need to be replaced. That doesn’t include new positions that will need to be filled over the same period.
At the same time, young people gradu-ating from high school or college have shown only moderate interest in the field. While that is beginning to change, the gap created in recent years is clear.
“Social media, biomed—other indus-tries have been capturing the attention of young, bright individuals,” says John Faraguna, global managing director of recruiting firm Hays Oil & Gas. “The
pRogREssWoRk in
wORkfORCE DEvElOPMENT: TalENT SEaRCh
ch
Arts By A
lex reArd
on
I
AmericAn GAs July 201328
[energy] industry has not been viewed by younger folks as being as attractive, a place where you might go to change the world.”
The issue isn’t limited to the United States—almost every country is seeing some industry skills shortages. But other countries, such as Canada and Australia, have more flexible immigration policies than the U.S. does and can more easily at-tract overseas workers to fill key positions, Faraguna says. Thus, cultivating home-grown talent is proving essential for filling natural gas and related industry jobs.
Indeed, promoting the industry’s career potential is one aspect of the CEWD’s mis-sion. It reaches out to college, high school, and even middle school-age students to bring awareness of the types of jobs avail-able—and the path to get there. (See Profile, page 32.) It also targets such groups as military veterans and “transitioning” work-ers (e.g., people who might have been laid off from their job in another field and are seeking something else).
To help them understand the skills that are needed, CEWD has created the Energy Industry Competency Model for careers in generation, transmission, and distribution. Tiers 1 through 3 describe some of the ba-sic skills and attributes needed for nearly any job, but as the model goes higher, it focuses on industry- and job-specific com-petencies and skills. The model is designed to help students and job seekers as well as educators understand what’s needed in or-der to succeed in an energy-related career.
“So many of these jobs require an associate’s degree,” says CEWD Executive Director Ann Randazzo. “So it’s making sure that students understand that this is a very viable education path, and it’s a path that you can take, and you can earn great money, you can have a career, and if you decide you want to go back to school, then you can do that and move ahead.”
“Ready Now”
But while the next generation of workers
is literally still in school, “We have a need for people now,” says Randazzo. “Some states and some companies need to hire people immediately, so for those jobs that we call ‘ready now,’ that’s where we are working with the military, with veterans who are coming out of the military and are looking for a job and already have those skills.”
There again, the competency model, as well as other tools, can help returning servicemen and women understand how to apply the technical, managerial, and leadership skills they’ve already acquired to new careers in the energy industry. (See “Field Service,” page 30.)
“One of the most difficult things for people coming out of the military is to
translate the training and the skills and the competencies that they gained in the military into civilian terms,” Randazzo says. “It’s as if there’s a language barrier between the military and civilian employ-ers and educators. So when someone from the military is coming in, it’s pretty critical that they be able to translate in terms of the competency model how they fit in. It’s actually a road map for veterans to follow.”
A number of programs exist to help military members transition from active duty to civilian jobs in the energy and other industries. The online National Re-source Directory, a partnership between the Departments of Defense, Labor, and Veterans Affairs, provides information and support for service members and veterans as well as their families, and includes the Veterans Job Bank. It is part of President Obama’s Joining Forces initiative, which challenges U.S. industry to train and hire more than 290,000 service members and their spouses. Another program, Project HIRED, focuses on getting people with disabilities, including disabled veterans, back to work with career development and training.
Many utilities and service companies already recognize the value these individu-als can bring to the workplace and have set up their own programs. For example, PG&E created PowerPathway in 2008, working with local community colleges to provide relevant career and technical train-ing. Since it started, nearly three-quarters of the program’s 150 graduates have been hired by PG&E or other energy industry companies, according to the company.
“We’re constantly focusing on that ‘ready now’ group,” Randazzo adds. “At the same time, there are companies that are going to need somebody in the next two to three years, and that’s when you be-gin working with community colleges to develop programs. We have areas that will be needed in the next four to five years, so you start working with high schools.”
hElP waNTED “foR thE inDustRy to gRoW, it nEEDs to attRaCt a laRgER pool of talEntED, EDuCatED WoRkERs.”
numberof
0.5%line
workers
decreasedby:
numberof 1.1%
transmissionand
distributiontechnicians
decreasedby:
numberof
5.6%
plantoperators
decreasedby:
numberof
3.6%
engineers
increasedby:
DATA COMPILED BY THE CENTER FORENERGY WORKFORCE DEVELOPMENTINDICATE THAT BETWEEN 2009 AND 2011:
Industry-Specific Programs
Recognizing that the industry has very specific knowledge requirements, a num-ber of programs have been or are being developed to train prospective employees in key skills. Many of those are hands-on training offered to new workers by their utility employers and are specific to the utility’s systems and processes. There is also an array of continuing-education courses geared toward people already working in the industry that focus on new technologies. But other efforts aim to teach the basics—and more—to prepare students for specific careers.
One of those, for example, is a training program developed by the Gas Measure-ment Training Council—a consortium of 17 companies in the gas industry—for natural gas measurement technicians, an area that has been identified as having a significant potential shortage of work-ers. The GMTC program was recently implemented by two community colleges (in Salt Lake City and in Great Bend, Kansas); already four people have com-pleted the course and are working in the field, according to John Hand, chair of the GMTC and senior technical advisor, measurement, at SpectraEnergy.
“It was the classic thing that everyone’s hearing now,” says Hand. “It’s hard to find people with the skills we’re looking for. Measurement can be a challenging area. This curriculum covers the specific job of a measurement technician.”
“There was nothing that was a coher-ent training curriculum that was owned by the industry, developed by the industry, and maintained by the industry,” explains Eric Kelner, vice president and COO of Letton Hall Group, who helped spearhead the GMTC program.
Both of the community colleges that have adopted the program have mobile measurement training facilities onsite that provide students with hands-on oppor-tunities to learn, as well as classroom and Web-based instruction. The goal is to pro-vide students with the critical knowledge they’ll need to get hired as gas measure-ment technicians; then their employers will provide specific training in the utility’s systems and processes.
“For new people, this is definitely a leg up,” Hand says.
July 2013 AmericAn GAs 29
Based on early enthusiasm for the pro-gram, plans call for the council to review the curriculum annually and add new modules covering specific technologies as needed. The group hopes that more com-panies in the industry will join the consor-tium, help to develop the curriculum, and potentially offer program modules to new and existing employees.
“A Missing Generation”
While there are job openings at every level,
Faraguna’s firm focuses largely on filling mid- to senior-level positions, looking for people with solid experience and special-ized industry knowledge.
“Where the shortage really is hitting is in the area of people with 10, 15, 20 years of experience,” Faraguna says. “There’s something of a missing generation here, and it’s kind of biting us right now.”
The 2013 Oil and Gas Global Salary Guide reports that 24.8 percent of workers have more than 20 years of experience and 23.5 percent have between 10 and 19 years
Interpersonal
skills
Integrity
Professionalism
Reputation Mo
tivation
Dependability
and reliability
Self-development
Flexibility and
adaptability
Ability
to learn
Information
technology
Mathematics
Locating,
reading,
and using
information
Writing List
ening
Speaking
Engineering
andtechnology
Critical
andanalytical
thinking
Science
Business
fundamentals
Teamwork
Following
directions
Planning,
organizing,
andscheduling
Problem
solving,
decision
making
Ethics
Employability
and
entrepreneurship
skills
Working
with basic
hand and
power tools
andtechnology
Troubleshooting
Safety
awareness
Industry
principles
andconcepts
Environmental
laws and
regulations
Quality
controland
continuous
improvement
Gas transmission
and distribution
Non-nuclear
generation
(coal, natural gas,
oil, hydro,
solar, wind,
biofuel,
geothermal)
Nuclear
generation
Electric
transmission
anddistribution
Alternate
fuel
technicians
Lineworker
Plant
operatorSub
station
technician
Electrical
technicianEngineering
technician
Mechanical
technician
Relay
technician
Instrument
and control
technician Na
tural gas
technology
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ACADEMIC COMPETENCIES
PERSONAL EFFECTIVENESS
WORKPLACE COMPETENCIES
INDUSTRY-WIDE TECHNICAL COMPETENCIES
INDUSTRY-SPECIFIC TECHNICAL COMPETENCIES
OCCUPATION-SPECIFIC
aGa PlEDGES $1 MIllION foR sCholaRship pRogRamrecognizing the shortage of skilled workers for the natural gas industry, the American Gas Association in April announced the creation of a $1 million scholarship program. AGA expects that more than 200 students will benefit from these scholarships over the next five years as they plan for careers in the natural gas industry.
more than two dozen u.s. colleges and universities have already been selected to participate. Among the skills in high demand are hVAc, welding, pipefitters, mechanical/petroleum/chemical engineering, and other engineering fields.
“We are making an investment in helping to develop a skilled workforce capable of maintaining the 21st-century technology that transports and utilizes this clean energy source serving the needs of more than 177 million Americans,” said AGA President and ceo dave mccurdy, who announced the creation of the program at the lnG 17 conference in houston. “our commitment will help ensure the continued vitality of the American workforce and solidify the legacy of this transformation in American energy.”
ch
iP simo
ns
AmericAn GAs July 201330
of experience in the industry. It also found that 59 percent of workers are over 50—again heightening the prospect of loom-ing retirement among people with the most experience. While people do move in and up the career ladder, replacing the knowledge of the industry’s most senior employees will take time.
Sought-after candidates command higher salaries and may be willing to jump to another company for the right package. “Companies are realizing that retention is a key thing,” Faraguna says.
But to fill those positions, companies are stepping up with competitive compen-sation packages. The Salary Guide, which surveyed producers around the world and covers a range of disciplines, reports that salaries for people with college degrees rose 17.6 percent over the previous year, and a majority of companies anticipate increasing salaries over the next 12 months to help at-tract new mid- to senior-level employees.
“We saw worldwide a good increase in entry-level salaries, too,” says Faraguna, whose company produces the annual salary guide. “That by itself will start at-tracting people with relevant degrees, such as petroleum engineering, and people who have related degrees who are looking to transition [into the industry].”
Flexible work arrangements, such as working remotely and limiting onsite work, if appropriate, are also key incen-
tives, particularly for positions located in rural areas.
Faraguna also sees oil and gas compa-nies being more willing than ever to help workers choose a career path and build additional skills to move up the ladder—wherever that ladder goes.
“When you’re young in your career, it’s good to feel the company is supporting you,” he says. “Some of the bigger compa-nies have had those types of programs for a long time, but some of the smaller ones are just getting into this. For example, to say that not just management is the way you progress, here’s an alternative path, tech maybe, and here’s how you would go down that path. It’s a whole package of treating people as individuals and profes-sionals, and recognizing that not everyone is geared to do the same type of thing.”
The challenges presented by the short-age of talent are complex, and they require both short-term and long-term solutions to attract the right people with the right skills at the right time.
“We’re a relatively small industry—we have about 525,000 people who are directly hired by utilities—but we’re a critical one,” Randazzo says. “There’s no economic development without energy, so it’s very important to us to make sure that we create this pipeline of future workers. It’s just fundamental to economic develop-ment, for the future of the country.” u
RIGhT PEOPlE, RIGhT SkIllS, RIGhT TIME thE ChallEngEs pREsEntED by thE shoRtagE of talEnt aRE ComplEx, anD thEy REquiRE both shoRt- anD long-tERm solutions.
Interpersonal
skills
Integrity
Professionalism
Reputation M
otivation
Dependability
and reliability
Self-development Fl
exibility and
adaptability
Ability
to learn
Information
technology
Mathematics
Locating,
reading,
and using
information
Writing Lis
tening
Speaking
Engineering
and
technology
Critical
and
analytical
thinking
Science
Business
fundamentals
Teamwork
Following
directions
Planning,
organizing,
and
scheduling
Problem
solving,
decision
making
Ethics
Employability
and
entrepreneurship
skills
Working
with basic
hand and
power tools
and
technology
Troubleshooting
Safety
awareness
Industry
principles
and
concepts
Environmental
laws and
regulations
Quality
control
and
continuous
improvement
Gas transmission
and distribution
Non-nuclear
generation
(coal, natural gas,
oil, hydro,
solar, wind,
biofuel,
geothermal)
Nuclear
generation
Electric
transmission
and
distribution
Alternate
fuel
technicians
Lineworker
Plant
operator
Substation
technician
Electrical
technician
Engineering
technician
Mechanical
technician
Relay
technician
Instrument
and control
technician
Natural gas
technology
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ACADEMIC COMPETENCIES
PERSONAL EFFECTIVENESS
WORKPLACE COMPETENCIES
INDUSTRY-WIDE TECHNICAL COMPETENCIES
INDUSTRY-SPECIFIC TECHNICAL COMPETENCIES
OCCUPATION-SPECIFIC
members of the u.s. military leaving active duty represent a potential pool of talented, skilled workers for the indus-try—and with natural gas companies hiring, at good salaries and benefits, the appeal is mutual. the center for energy Workforce development’s troops to energy Jobs program puts veterans on the path to a new career with its online “roadmap to a career in energy,” al-lowing returning servicemen and women (as well as those still in uniform consider-ing their next move) to explore job and training opportunities that capitalize on their military experience. the site helps veterans identify transferable skills, con-tinue their education if necessary and apply for jobs.
According to the website (troopstoenergyJobs.com): “the nation’s electric and gas industries believe that veterans have spent their military careers protecting national security and are, among many things, battle-tested, self-motivated, and safety-conscious—traits that translate well into a second career in the utility industry.”
fIElD service
fIND OuT MOREThe Gas Measurement Training Council offers a range of technical programs geared toward utilities. Learn more here: http://gasmeastraining.org
Project HIRED works with people with disabilities, including veterans, to help them get job training and placement: www.projecthired.org/HIREreach7/
The National Resource Directory provides access to services and resources at the national, state, and local levels to support recovery, rehabilitation, and community reintegration for wounded warriors, service members, veterans, their families, and caregivers: www.nrd.gov
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A n A l y z e r s • A n o d e s • A n t i - t A m p e r d e v i c e s • A p p l i A n c e W A r r A n t y
s e r v i c e s • A r c h e o l o g y • A u d i t i n g s e r v i c e s • A u t o m A t e d s o l u t i o n s
• B i l l i n g s y s t e m s • B o i l e r s • B u s i n e s s m A n A g e m e n t s y s t e m s •
c A B l e s e r v i c e s • c A l l c e n t e r s • c A t h o d i c p r o t e c t i o n e q u i p m e n t
• c l e A n e r s • c o A t i n g s • c o g e n e r A t i o n e q u i p m e n t • c o l l e c t i o n
A g e n c i e s • c o m m u n i c A t i o n s • c o m m u n i c A t i o n s e q u i p m e n t •
c o m p l i A n c e • c o m p r e s s o r s t A t i o n s • c o m p u t e r m A i n t e n A n c e
m A n A g e m e n t s y s t e m s • c o n n e c t o r s • c o n t r A c t o r s • c o n t r o l l e r s •
c o n t r o l s • c o r r o s i o n c o n t r o l m o n i t o r i n g • c o r r o s i o n p r o t e c t i o n
• c o u p l i n g s • c r A n e m A t s • c u r B B o x e s • c u s t o m e r s e r v i c e • d A t A
A c q u i s i t i o n s y s t e m s • d e t e c t o r s • e - p r o c u r e m e n t • e c o n o m i c
F o r e c A s t i n g • e m e r g e n c y o u t A g e s e r v i c e s • e m i s s i o n s o l u t i o n s
• e n c A p s u l A t i o n s K i t s • e n g i n e e r i n g • e n v i r o n m e n t A l • e x c e s s
F l o W v A l v e s • e x p A n s i o n J o i n t s • F i B e r - o p t i c s y s t e m s • F i l t e r s
• F i n A n c i A l s e r v i c e s • F i t t i n g s / F l A n g e s • F l e x i B l e p i p e • F l o W
c o m p u t e r s • F l o W m e A s u r e m e n t • F o o d s e r v i c e e q u i p m e n t • F u s i o n
m A c h i n e s • g A s c o o l i n g • g A s m e A s u r e m e n t s y s t e m s • g A s m e t e r s •
g A s p r o c e s s i n g e q u i p m e n t • g A s t r A n s m i s s i o n • g e n e r A t o r s • g i s
• h A n d - h e l d c o m p u t e r s • h e A t e x c h A n g e r s • h e A t i n g e q u i p m e n t •
h i g h - d e F i n i t i o n v i d e o s e r v i c e s • h i g h - s p e e d i n t e r n e t • h o r i z o n t A l
d i r e c t i o n A l d r i l l i n g • h u m A n r e s o u r c e s • h y d r A u l i c F r A c t u r i n g
W A t e r • h y d r o - B l A s t i n g • i n F o r m A t i o n s e r v i c e s • i n F o r m A t i o n
s y s t e m s • i n s t r u m e n t s • i n s u r A n c e • i n t e g r i t y m A n A g e m e n t •
K e y h o l e t e c h n o l o g y • l e A K d e t e c t o r s • l e A K A g e r e p A i r e q u i p m e n t
• l e g A l s e r v i c e s • m A n i F o l d s • m A p p i n g • m A r K e r s • m e t A l h o s e •
m e t e r B r A c K e t s • m e t e r p r o v e r s • m e t e r s u p p o r t s y s t e m s • m e t e r
r e A d i n g s y s t e m s • m o B i l e W o r K F o r c e s y s t e m s • m o v i n g s e r v i c e s
• n g v e q u i p m e n t • o d o r v o c c o n t r o l • o d o r A n t A n A l y s i s • o n l i n e
s e r v i c e s • p i g s • p i p e • p i p e & v A l v e l o c A t o r s • p i p e c u t t i n g /
B e v e l i n g • p i p e i n s p e c t i o n s e r v i c e s • p i p e l o g i s t i c s • p i p e r e p A i r
c l A m p s • p i p e l i n e c o A t i n g s • p i p e l i n e h e A t i n g • p i p e l i n e m A i n t e n A n c e
s e r v i c e s • p i p e l i n e s A F e t y • p o W e r • p r e s s u r e g A u g e s • p r e s s u r e
r e l i e F d e v i c e s • p r i n t i n g • p r o c e d u r e s • p r o c e s s c o n t r o l s y s t e m s
• p u B l i c r e l A t i o n s • p u B l i c A t i o n s • p u m p s • r & d • r A d i o g r A p h y
• r A t e s • r e g u l A t o r s • r e m o t e p o W e r • r e p A i r & m A i n t e n A n c e
p r o d u c t s • r i s e r s • r i s K m A n A g e m e n t • s A F e t y c u l t u r e • s A F e t y
e q u i p m e n t • s e c u r i t y s y s t e m s • s h A l e g A s • s i g n s / d e c A l s • s o F t W A r e
• s p e c i A l t y e q u i p m e n t • s t o r A g e t A n K s • s t r A i n e r s • s u r v e y i n g
• t r A i n i n g • t r A n s p o r t A t i o n • u n d e r g r o u n d s t o r A g e • u t i l i t y
l o c A t i n g • v A c u u m e x c A v A t i o n • v A l v e A c t u A t o r s • v A l v e B o x e s •
v A l v e l u B r i c A n t s / s e A l A n t s • v A l v e s • v A p o r i z e r s • v e h i c l e / F l e e t
o p e r A t i o n s m A n A g e m e n t • v i B r A t i o n A n A l y z e r s • v i d e o s e r v i c e s •
v o l u m e c o r r e c t o r s • W A t e r h e A t e r s • W o r K F o r c e A u t o m A t i o n
AMERICANGAS
supply &demand
Announcing the 23rd AnnuAl Buyer’s guideComing in the oCtober 2013 issue of AmericAn GAs
Visit www.naturalgasindustrybuyersguide.com to check out AgA’s targeted search engine.
call 800-815-6710 or write [email protected] to list your company or update your current listing.
contact don serfass at [email protected] or 800-394-5157 x 30 to find out about all the new opportunities for advertisers in American Gas.
the industry’s key decision makers: 12,000 readers of American Gas, thousands of visitors to the online search tool.
For the electronic listing: list now…or anytimefor the American Gas buyer’s guide (both print and electronic versions): submit your listing by July 31 to be included; ad space reservations due by August 23.
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BGAd.indd 1 5/30/13 4:46 PMAG.JUNE13.Feature6.indd 27 5/30/13 4:57 PM