John McMorrow

President and CEO

Talent Alliance

In today`s dynamic labor market it is important for people to understand changing demands for specific occupations-essentially what jobs are hot, as well as those that are not. Competition is intensifying and technology is revolutionizing every aspect of the electric utility business

In an effort to stay competitive:

- Companies will increasingly use technology to increase efficiency and reduce costs. New, more efficient ways of generating and distributing electrical power are being developed and computer monitoring systems are enhancing safety and eliminating waste. Hence, jobs are becoming more dynamic and will require a broader knowledge base.

- Technology will transform the way business is done. The Internet provides a new medium for companies to advertise and market their services and allows consumers to receive information, billing statements and updated rates. As more technologically advanced office equipment is used, the nature of work in the office will change to become more computer-oriented.

Using data from the U.S. Bureau of Labor Statistics, which prepares employment forecasts to the year 2005, this articles looks at future employment patterns in the industry.

Fast forward to 2005

A number of forces are driving the transformation of the industry, including deregulation and competition, the enormous effect of technological innovation, and the increasingly sophisticated demands of customers. According to Robert D. Glynn Jr., president and CEO of PG&E Corp., "As this change unfolds, consumers will benefit significantly, and some energy companies will change dramatically to take advantage of new competitive energy markets. For sure, the landscape will never be the same."

The employment landscape in the electric utility ind-ustry will change in the following ways:

- Total employment within the industry will decline. Employment will decrease by just over 9 percent between 1994 and 2005. The decline translates into nearly 26,000 jobs disappearing during this time period.

- The aggregate picture of decline disguises how the occupational structure of the electric utility industry is changing, the occupations that will grow and those that will decline, as well as the skills that will be in demand.

- Other positions, once unheard of and others that are yet unidentified, will blur the employment outlook. A number of growing occupations in the industry are in "all other categories," which suggests that we have not yet developed occupational codes to capture this new growth.

- Computer and technical professions will grow as increasing competition pressures companies to constantly improve efficiency.

- Overall, skilled and unskilled repair, maintenance and operations jobs, like meter installers, repairers, readers and line installers, will decrease because of more efficient machines and a blurring

- of the occupations. Today`s equipment, like meters, requires less maintenance and relays information electronically. Many companies are combining the duties of installers, repairers and readers into one occupation.

- Changing business practices, such as offering a wider array of services including telephony and cable, will affect the workforce. There will be more demand for those employees that can implement these new services and provide customer assistance.

- Competitive pressures, consolidation and automation will modify the structure of the workforce. Companies will reduce selected administrative positions like clerks as they reengineer their administrative structures and implement new technologies.

Shifting occupational composition

Employment within executive, managerial and administrative occupations will decrease by more than 900 jobs or nearly 4 percent. Nearly all the specific occupations within this broad occupational category will decrease as consolidation forces companies to eliminate overlapping managerial and executive functions. However, as companies place greater emphasis on technology and training, the need for managerial leadership in these areas will increase.

Because of the increasing use of technology, professional specialty positions will be the only broad occupational category to add jobs over the next few years. These occupations will increase by more than 32 percent and add nearly 9,300 jobs. Much of the increase will occur within computer-related jobs. For example, systems analysts will increase by nearly 60 percent. Further, advances in technology are increasing the need for electrical engineers.

Increased efficiency from the use of more advanced technologies will lead to a decrease in the technicians and related support occupations. These positions will fall by more than 2,700 jobs or slightly more than 16 percent.

Administrative support occupations will decrease by slightly less than 22,000 jobs or nearly 32 percent. The increase in automation, like computer programs that manage and maintain administrative files, will reduce the demand for virtually all specific occupations. General office clerks, for example, will decrease by more than 30 percent.

Consolidation within the industry will decrease the demand for service occupations, which will fall by more than 800 jobs or nearly 16 percent. As the number of companies in the industry decreases due to mergers and acquisitions, the number of security guards and maintenance workers will fall.

Precision, production, craft and repair occupations, the largest broad occupational category, will decrease by nearly 8,500 jobs or slightly more than 8 percent. Most of the specific jobs within this category will face decreasing demand because of two factors: increased competition among electric companies and advanced technologies. Competitive pressures will force companies to adopt new technologies that will generate and distribute electricity more efficiently. Added efficiency means that companies are using less equipment and machinery, which requires less maintenance. All other mechanics and repairers, for example, will decrease by nearly 21 percent.

More efficient, computer-oriented machines are also causing a decline in the number of operators, fabricators and laborers. These jobs will decrease by nearly 530 or close to 9 percent. Because most new electricity generating and distributing machines are computer monitored and run, there is a reduction in the need for plant and systems occupations like power distributors and dispatchers.

Tables 1 and 2 identify the 10 occupations that will experience the largest absolute job gains and the 10 occupations that will experience the largest absolute job losses.

Modifying basic competencies

The data do not reveal the exact skills that will be in demand. However, there are indicators of broad skills that are common to many of the growth occupations.

Most electric utility employees will need teamwork skills within and across occupational disciplines, whether they are engineers developing new ways of offering integrated services or marketing people working with information technology professionals to create a new advertising campaign for the Internet. Communication and interpersonal skills will become more important, as companies work closer with their clients. For example, businesses are working with electric utilities to develop efficient electrical usage plans in an effort to reduce costs. The industry will also require that employees be flexible and committed to upgrading their skills and knowledge base as the industry continues to change.

As the use of computers and technology increases, the need for computer and technical skills will increase. Professional specialty occupations (like systems analysts) will need to manage large computer networks. Even executive and managerial positions will demand enhanced computer skills as many activities will be done electronically. Knowledge of technological applications will be vital.

Companies and their employees will also be required to use information more strategically. The ability to gather, analyze and manipulate information will become more important. More jobs, from labor relations specialists to reactor plant operators, will require fewer hands-on skills and increasing interaction with information, especially since workers will be required to work within their discipline and beyond. Problem-solving skills will become more important. Broader knowledge of new services and products and their relevance to customers will also become more important.