1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce...

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1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis

Transcript of 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce...

Page 1: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

2013 National ConferenceBuilding Powerful HR Strategies for Canada’s

Renewable Energy Workforce

Bill Empey, Managing Director, Prism Economics and Analysis

Page 2: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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1. Technology Review2. Employer Survey3. Labour Market Model4. Province Specific Summaries5. Sector Summaries6. The National Human Resources

Strategy

Research Components

Page 3: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Canadian renewable electricity suppliers are expected to add between 20,000 and 52,000 MWs of capacity by 2022. This will raise labour requirements by 2 to 3 times the current levels. Renewing Futures research describes the labour market conditions and HR practices that are the basis for a National HR Strategy.

You are invited to consider proposed actions that will build the needed, skilled workforce.

HR Planning for the Deployment of Renewable Electricity

Page 4: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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A. Background and Research Findings1. Growth2. Technology3. Stakeholders4. Labour markets

B. Proposed Strategic Actions1. Goals2. 12 Actions3. Implementation

Outline

Page 5: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

1. Growth• Growth as a strong, positive, global theme for RE

Deployment, and• Growth is associated with risk and uncertainty

• Pace of growth and disruptive change • RE capacity replaces legacy systems (coal)• Accelerated expansion adds risks to: • Safety• Work and system quality• Productivity

Page 6: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

1. Growth• First order growth is expanding capacity and

operations• Second order growth is new investment, design and

construction:• Employment gains are in engineering,

manufacturing and construction:• Changing investments add temporary

employment all along the supply chain for design, construction and supply

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Research Findings

Renewable Electricity in Canada, Total Installed Capacity, 2012 to 2022, All Scenarios

Page 8: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

Renewable Electricity in Canada, Total Installed Capacity, 2012 to 2022, All Scenarios, Excluding Large Hydro

Page 9: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20220

1,000

2,000

3,000

4,000

5,000

6,000

Scenario B (NEB)

MW

Scenario A (Utility)

Scenario C (Vision)

Employment in Construction Falls

Change in RE Installed Capacity, Canada, Three Scenarios, Excluding Large Hydro

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Research Findings

Sectors1. Wind2. Solar3. Geothermal4. Bioenergy5. Large and Small Hydro6. Marine…..and7. Interconnection and

storage systems

Page 11: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Addition to Capacity by Sector – Scenario C

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Research Findings

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Research Findings

2. TechnologyTechnology to be deployed will be similar to current technology except for interconnection technologies:• Variable wind and solar supply alter system needs• Changing distribution technology for RE and

traditional generation include Smart Grid modernization

• Emphasis on IT technicians and IT skills for• Power electricians• Power station and system operators

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Research and Development

• Governmental and R&D funding

Manufacturing and

Distribution

• Generating systems• Cells• Turbines

• Balance of system

• Towers, racks• Structures• Electrical

components

Project Planning

• Design• Permitting• Finance• Purchase

agreements

Construction and

Installation

• Procurement Engineering management

• Civil• Structural• Site

preparation• Installation• Utility

upgrades

Operation and

Maintenance(on-site/off-

site)

• Monitor• Maintenance• Security• Reporting• Storage

Grid Operation,

Maintenance and

Distribution

• System maintenance

• Upgrades/ Smart Grid

• Storage• Substation• Grid

modernization

Manufacturing equipment, ICT, Software

Consulting, finance, legal, business management

Engineering consultants, contractors (general / electrical), developers, operators

Manufacturing equipment, ICT, Software

Employers

The Supply Chain

Utilities

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Research Findings

3. Stakeholders / EmployersEmployers are often small, dispersed and diversified and:• Business is diversified across many sectors and outside

RE• HR risks are avoided with short term contact jobs• Shared focus on growing hiring requirements• Need for employee skills to be portable across sectors

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Research Findings

3. Stakeholders / EmployersEmployers are often small, dispersed and diversified and:• Report economic and market issues take higher

priority than HR,• Fewer than half of the sample report recent hiring

difficulties,• Have confidence in existing HR capabilities,• Often plan to hire from other industry employers,• More than two thirds plan to increase staff

significantly in the next two to three years

Page 17: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

3. Stakeholders / Workforce• Growth in labour requirements by sector and

occupations is:• Very strong in scenario C• Limited in operations and construction,

employment falls in scenario B • Limited in both operations and construction in

scenario A

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Occupational Categories

1 Engineering managers

2 Utilities managers

3 Information systems analysts and consultants

4 Financial auditors and accountants

5 Sales, marketing and advertising managers

6 Other Leaders and Managers

7 Electrical and electronics engineers

8 Mechanical engineers

9Electrical and electronics engineering technologists and technicians

10Mechanical engineering technologists and technicians

11 Power systems and power station operators

12 Other Engineers and Technologists

13 Electricians (except industrial and power system)

14 Power system electricians

15 Electrical power line and cable workers

16 Mechanical trades

17 Construction trades helpers and labourers*

18 Other Trades and Related

Source: EHRC, Prism Economics and Analysis

Key Occupations in the RE workforce

Trades and Related

Renewable Energy Core Occupations

Engineers and Technologists

Leaders and Mangers

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Employment in Key RE Occupations – Distribution across markets

2. Employment in Electricity Generation and Distribution

Industry (NAICS 2211)

ERE Related Employment in

industries outside NAICS 2211

1. Employment across all industries in the Province

3. ERE Employment in Electricity

Industry

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Research Findings

Employment Growth, Key Occupation Groups, National totals – Electricity Utilities and RE jobs

Page 21: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

Page 22: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

Page 23: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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5,284

9,230

British Columbia

3,172

10,255

Alberta

378 2,032

Saskatchewan

650 977

Manitoba

21,026

54,302

Ontario

6,718

14,215

Quebec

4,063

8,202

Atlantic Canada

2011 2022

41,291 99,214

Canada

Renewable Energy (Excluding Large Hydro) Employment 2011 – 2022, Scenario C

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Research Findings

3. Stakeholders / TrainingTraining is concentrated in colleges:• In short programs or courses added programs• College programs can be linked to other post-

secondary programs• Programs mention RE training for design, sales,

public relations, sustainable development as well as technology

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Research Findings

3. Stakeholders / Training• Limited references to RE in apprenticeship programs• Limited opportunities for university training in RE• Certification systems are available:

• NABCEP• BZEE• Red Seal• ECO Canada• Canadian GeoExchange Commission

• Limited interest in certification for RE work Canada

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Research Findings

Technical Sales Specialists 11Natural and applied science policy researchers, consultants and program officers

4

Engineers 13Engineering Technicians & Technologists 39

Trade Apprenticeship Programs n/aOther Trades 1

Solar PV Installers 14Wind Turbine Technicians 11Geothermal/GeoExchange Installers 2

Trades & Related

Occupations Programs -ERE Specific

Leaders & Managers

Engineering and Technology

Post-Secondary Programs Offering RE related Specializations

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Research Findings

3. Stakeholders / Provincial Governments• Scenarios track both energy and labour policy• Provincial legacy drives different energy policy and

priorities• Governments share some common policies to

encourage RE but approaches differ• Provinces manage / regulate most RE occupations in a

similar manner

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Research Findings

4. Labour MarketsLabour market conditions are tight in competing industries:• Market conditions are related to expansion and

replacement demand:• Tightest markets in the west,• In construction, oil and gas, mining,• Major engineering projects – infrastructure including:

• Transit, water systems, pipelines and• Electrical generation – hydro and nuclear

(refurbishment)• Transmission and distribution systems

Page 29: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

4. Labour MarketsLabour market conditions are tight in competing industries impacting:

• Scientists, engineers, managers and estimators• Related technicians and technologists• Skilled construction trades including electricians• Specialized trades and occupations

• Solar installers• Wind technicians• Power Line Technicians, etc.

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Research Findings

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20220%

2%

4%

6%

8%

10%

12%

14%

16%Labour market dynamics, RE key occupations

Leadership and Management LM Normal UE RateEngineering and Technical ET Normal UE RateTrades and Related TR Normal UE Rate

Une

mpl

oym

ent r

ate

(%)

Page 31: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

4. Labour MarketsLabour market conditions are tight in competing industries where tight markets:• are related to retirement:

• these demands exceed new jobs for economic growth

• depend on age profiles and retirement patterns• create different market conditions for entrants and

experienced or specialized workers, and• impact recruiting choices from post secondary programs

and immigration

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Research Findings

4. Labour Markets

Tight markets related to retirement demand impact:• scientists and engineers• managers• supervisors• key trades• A key factor for large hydro employers

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Research Findings

Page 34: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

Conclusions• Rapid growth in RE capacity will drive rising labour

requirements• Employers may not recognize the industry scope of the

HR problem• Power generation technologies will change little but

distributions systems will incorporate new technologies• Eighteen key technical occupations require specialized

training and certification• RE related training is limited to college programs

Page 35: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Research Findings

Conclusions• RE jobs are created across a long supply chain and

with diverse employers• Labour markets for the key RE occupations in other

industries are tight – often driven by retirement demands

• RE employers rarely share HR practices and perspectives, but

• RE employers all share the same small group of priority occupations

Page 36: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National Human Resources Strategy

Background

RF findings support the need for a strategy:• Strong labour requirements in the Vision Scenario • Competition for skilled labour from other industries

in all scenarios• Collective action to:

• consolidate industry strength and overcome narrow interests

• bridge distinctive Provincial resource legacies, energy policies and labour conditions and policy

• Common focus on occupations provides a natural starting point

Page 37: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National Human Resources Strategy

GoalsThe strategy must:• Build a consensus for collective action• Encourage youth and job seekers• Provide more graduates from post secondary

training programs that meet employer needs• Provide more bridges that connect programs and

certifications and promote mobility• Protect RE employers from shortages and the RE

workforce from unemployment

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National Human Resources Strategy

Common Elements• A unified vision of the RE Sector and a public

relations campaign to promote careers• Background documents supporting the strategy

with material from the research• New training and certification material that meets

employer needs

And Measures of Success• More participation• More enrolments and graduates from RE programs• Guidelines – 50% increase by 2015, 2x increase

by 2022

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Findings – The National Strategy

Leadership and Management

Engineering and

Technology

Trades and Related

Wind Specialization

Solar Specialization Five Platforms

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National HR StrategyLeadership and Management

Strategic Action #1

Building Critical Leadership Skills• The “leadership imperative”

• Broad skills, experience and talent

• A National Leadership Forum

• RE specific programs for promising young leaders

and experienced managers from related employers

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National HR StrategyScience and Technology

Strategic Action #2

Enhance Professional Engineering and Science Post-Secondary Programs

• Focus on both employers and faculty• Prepare more grads for work in RE with specialized

courses

• Brief faculty on job opportunities

Page 42: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyScience and Technology

Strategic Action #3Focus Professional Science and Engineering

Human Resources Management• Offering practical experience to grads through coop,

internships• Focus on internationally trained scientists and

engineers in RE work overseas• Leverages government programs like TFW and

support programs at OSPE and Engineers Canada

Page 43: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyScience and Technology

Strategic Action #4Expand College Technician and Technologists

Programs• the core of the strategy• Review and assess current college RE training

programs• Assist and establish employer / faculty advisory

programs• Suggest targets for registrations / graduations• Prepare plans for the next generation of college

programs for RE

Page 44: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyTrades and Related Occupations

Strategic Action #5Boost the Role of Red Seal Trades with

Renewable Electricity Skills• Add RE material to apprenticeship curriculum

• Add RE related specializations or sub trades • Create bridges for:• Journeypersons to advanced certified skills• Apprentices to college programs• New installers / techs to apprenticeship

Page 45: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyTrades and Related Occupations

Strategic Action #6Build Interconnection Skills – a Joint RE / Utility

Venture Focus on college and apprenticeship programs for:• Electrical engineering technicians and

technologists• Power station and system operators• Power electricians• Power line technicians

Assess the potential for shared / common programs across provinces and utilities

Page 46: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategySector Specialties

Strategic Action #7

Address Priorities for Large Hydro Employers Retirement as an issue for employers focusing on:• Retention, recruiting experienced engineers and

managers

• Succession planning for middle management• Opportunities for retired managers to mentor

young RE managers

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National HR StrategySector Specialties

Strategic Action #8

Build the Solar PV Installer Workforce• Assess existing college and private programs and

certifications

• Propose needed additions to skills• Assess links to apprenticeship programs and college

courses• Set targets for increasing registrations and

graduations -- +50% by 2015 and 2x by 2020

Page 48: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategySector Specialties

Strategic Action #9Build the Wind Technician Workforce

• Assess existing college and private programs and certifications• BZEE certification in Canada

• Propose needed additions to skills• Assess links to apprenticeship programs and college

courses• Assess needed IT skills related to interconnection• Set targets for increasing registrations and

graduations -- +50% by 2015 and 2x by 2022

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National Human Resources Strategy for RE

Strategic Action #10 Increase Industry Awareness; What is in it for

ME? • Public Relations to build participation• Research drives background material for targeted

audiences• Target industry leaders first, • Adopt provincial and sector specific approaches• Coordinate with industry associations to avoid

duplication or competition• Adopt multi year and multi media approach

Page 50: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyCareers, Bridges and Certification

Strategic Action #11 Create Career Paths for Renewable Electricity• Research findings map potential career paths from

new entrants to CEOs• Promote future RE jobs linked to growth• Using college programs as the core – describe

training and certification programs that facilitate advancement and mobility across provinces and sectors

• Build features that encourage under-represented groups

Page 51: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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Findings – The National Strategy

Leadership and Management

Engineering and

Technology

Trades and Related

Wind Specialization

Solar Specialization Five Platforms

Page 52: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National HR StrategyCareers, Bridges and Certification

Strategic Action #12 Aim for National Certification – A Long Term

Goal• Mobility across provinces and sectors assisted by

national standards for training• Attitudes and institutions inhibit short term plans for

national standards but,• Current national (ECO Canada) and int’l systems

(BZEE) provide leadership• Council of the Federation Energy Strategy provides

encouragement

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National Human Resources Strategy

Implementation

• Twelve actions are linked to draw together a critical mass of stakeholders

• 400+ participants form a foundation• Implementation structured around platforms and

provinces• Potential for major role for RE and 100,000 jobs in

2022 create momentum• A nationwide investment in HR that parallels

expanded capacity

Page 54: 1 2013 National Conference Building Powerful HR Strategies for Canada’s Renewable Energy Workforce Bill Empey, Managing Director, Prism Economics and Analysis.

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National Human Resources Strategy

Conclusion

Canada needs a national human resources strategy to prepare for a dramatic increase in labour requirements for RE deployment. Stakeholders have a shared interest and focus on a short list of trades and occupations. Success brings together a skilled workforce, a carbon free energy system and global business advantages.