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AWWA ACE59970
- The Role of the H.R. Department in Managing the Coming Brain Drain
- Conference Proceeding by American Water Works Association, 06/17/2004
- Publisher: AWWA
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Two years ago, the Research Advisory Council (RAC) of AwwaRF noted that the earlyBaby Boomers were starting to reach retirement age and that they were being followed bya generation (Gen X) that was about one half its size. In addition, the RAC noted withconcern the increasing shortage of engineers. As a result they decided to fund a study ofthese and related issues titled, "Succession Planning For A Vital Workforce in theInformation Age." Shortly after the award, the Water Environment Research Foundationelected to co-fund the study, noting that this was also a major concern of wastewaterutilities. 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, currentlyat 7%, are expected to rise to 8%. Since the people retiring are the most senior people inthe utility, these retirements will result in a serious "brain drain". A study of the similarsituation in the electric utility industry estimated that more than 80% of the usefuloperating knowledge was "tacit" - knowledge that is known by users but notdocumented.In addition to those problems, the survey also identified some related problems - utilitiesare becoming more complex, but competent new hires are hard to find. HR managerscomplained about being at a disadvantage, being forced to hire from "the bottom of thelabor pool."The news, however, is not all bad. Whenever there is a period of major generationalchanges, opportunities are presented. A reduction in staffing due to retirements will allowutilities 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 withless resistance from the old guard. One conclusion of the Succession Planning study isthat every utility should implement Workforce Planning to properly manage thistransition. The Human Resources Department will have a key and essential role indeveloping and implementing this plan. Includes tables, figure.
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