APRIL

2021

Workforce Education & Training

A Guide to Serving Disadvantaged Communities
TABLE OF CONTENTS
Introduction 3

Breaking the Cycle 4

Utility Workforce Transformation 5

A Sustainable Solution 7

Conclusion 13
 PAGE 3

INTRODUCTION
Back in the late 1980’s when personal computers were gaining popularity and pushing the
boundaries of technology’s limitations, scientists warned that the same computers on which we
were beginning to rely would eventually lead to technological unemployment, reducing mil-
lions of people into poverty. The theory was that computers would take over roles commonly
performed by humans, rendering human resources in the labor market extinct. And while these
predictions have turned out to be closer to the truth than we would have preferred, it’s important
to examine the reasoning for the shift to combat it with a solution to benefit everyone.

In the 21st century, we have seen computers take over roles in manufacturing, healthcare,
telecommunications, and even retail. McKinsey Global Institute estimates that 800 million
global workers will lose their jobs to new technology by 2030. Rapid advances in automation
and artificial intelligence have taken the world—and the workforce—by storm. But scientists and
those making bold predictions about the future haven’t been without their flaws. The real issue
the labor market is facing isn’t the direct replacement of human jobs by technology—it’s lack
of training for adaptation. As technology has advanced over the years, education and training
have failed to advance with it. While an abundance of new technology-based career paths has
opened and grown, workforce development has taken the opposite route, becoming woefully less
accessible. And the utility sector has been severely affected by this change in the labor force—
possibly more so than any other industry.

At the same time that we see technology changing the workforce, the disparity between low-
income and middle-income earners has grown. Over the last two decades, the gap in earning
potential between low- and middle-income earners has continued to increase, with education
and training cited as the primary causes. The digital divide has widened between low-
income and middle-income communities, making it harder for low-income, unemployed and
underemployed workers to break into the middle class. The pandemic has had an even more
devastating impact on disadvantaged communities and reaching employers, and meeting their
needs in the pandemic has become harder still.
 PAGE 4

surged more than

538%
BREAKING THE CYCLE 2021
Lower-income communities have always faced hardship in terms of earning potential.
And recently, the economic disparity of low-income households has grown. These fami-
lies face low annual earnings to lack of education and basic skills, leading to scarcity in
quality jobs that provide opportunities for advancement and higher income potential.

In addition, traditional training and education aren’t cost-effective for low-income

cation
families. According to the Bureau of Labor Statistics, the cost of a public college
education has increased 29.3% over just the last ten years. And looking back to 1985,

er edu
when scientists began to warn of technological unemployment, the growth is even

cost of higher education

more staggering. The cost of higher education has surged more than 538% since 1985.
And while a college degree is still considered worth the investment, with college

high
graduates earning weekly wages that are 80% higher than their high school graduate
counterparts, the reality is education—and therefore the opportunity for a higher

of
ost
income—is drastically inaccessible for those in underserved communities.

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Recent efforts to improve the skills and long-term earning potential among

Th
disadvantaged communities have been focused on children and young adults.
Many high school reform efforts are centered primarily around cognitive skills and
academic achievement; these are designed to promote greater college attendance
and completion, rather than training and work experience for high school students.1
And while focusing on youth has its advantages, these efforts fall flat when higher 1985
education is financially inaccessible.

1. https://irp.wisc.edu/publications/focus/pdfs/foc262k.pdf
 PAGE 5

UTILITY WORKFORCE TRANSFORMATION

For decades, the utility sector has experienced enviable labor stability due to an internal labor
market that assured career mobility by paying a strong middle-class earning. As a consequence,
the industry has been slower to revamp hiring practices, especially for entry-level workers who
have traditionally formed the pool of those promoted internally to more advanced, skilled and
often management-level positions. However, this employment model is starting to fail due to a
combination of demographic and technological changes.

The utility workforce is starting to show its age, so to speak. As technological advancements
take over the country, utility workers with long tenure are retiring. And when they leave, they
take their wealth of experience and non-transferrable, sector-specific knowledge with them.
In a report titled The Disappearing Utility Workforce, Electric Energy Online claims “during the
next five to ten years, utilities will lose 50% of their current workforce to retirement.”

As if the daunting task of replacing nearly half the workforce weren’t challenge enough, the
way we produce, store and use energy is also changing. This shift is transforming the way the
industry operates. It has spurred utilities’ quest to improve safety, effectiveness and efficiency
in an increasingly complex and regulated sector. Utilities, who have long been known for
embracing the status quo, have been forced to adopt innovation and new technology in order
to drive business and the market forward.
 PAGE 6

These three growing trends are contributing to the need to transform the utility workforce:

Decarbonization
Electricity is becoming cleaner, with emission-free sources such as wind and solar power
projected to reach as much as 48% of total global electricity generation by 2050.

Electrification
To reduce carbon emissions, the country is advocating electrification of end uses such as
transportation, water and space heating, and industrial processes.

Decentralization
At the same time, the traditionally centralized power grid continues to decentralize,
as deployment of distributed energy resources such as solar PV and battery storage
rise rapidly.

On top of these trends is the advance of digital and automated technologies such as
artificial intelligence (AI), Internet of Things (IoT) and smart-grid implementation.2

Now more than ever, it is insufficient for utilities to simply rely on the status quo. Yet,
the problem remains that education and training have not kept pace with the changing
needs of the industry. The labor market is rendering current job training less relevant
and available than it was in previous generations. Add in the rising cost of education
and an increasing skills gap. Suddenly, it’s become a tall order to produce a skilled
workforce ready to tackle the many opportunities on the utility industry’s horizon.

2. https://www2.deloitte.com/us/en/insights/industry/power-and-utilities/digital-transformation-utility-of-the-future.html
 PAGE 7

A SUSTAINABLE SOLUTION
Enter workforce education and training (WE&T). Dedicated WE&T presents utilities with an opportunity to advance the
income potential of low earners, while at the same time meeting their own need for a trained and skilled workforce. The
concept serves double duty, and it shows increasingly promising results. In California, for example, PG&E, SCE and SDG&E
have joined forces to implement a statewide utility workforce development program that has benefitted both the utilities and
the disadvantaged communities they serve.3 At a moment in time when utilities are seeking more innovative ways to serve
income-qualified customers, workforce development and training may well be the solution of the decade.

Executed correctly, a proper workforce development and training program implemented on behalf of a utility will:

• Increase access to cost-effective training

• Improve alignment between training and education programs
• Revise accountability requirements to improve results
• Expand public access to information and training programs that will allow the workforce to
make more informed decisions about career options
• Increase services for people with barriers to quality employment, such as low-income
households

Simply put, the goal is to increase access to education and opportunities. How? By delivering
affordable education and training that meets the needs of the changing utility marketplace.

At its core, WE&T helps both the utility and the community succeed through energy efficiency and
workforce development. A successful program supports the training and educational needs of local
communities while helping the nation achieve its full energy-efficiency potential. Through WE&T,
utilities are provided with a well-trained, highly skilled workforce while at the same time developing
an industry of qualified contractors and workers prepared to deliver long-term market transformation.
That may sound difficult to obtain, but as California has proven, it doesn’t need to be.

3. https://www.cpuc.ca.gov/uploadedFiles/CPUC_Public_Website/Content/About_Us/Organization/Divisions/Policy_and_Planning/PPDUtilityWorkforceDevelopment.pdf
 PAGE 8

This is how to get it right:

Eliminate Barriers. As mentioned previously, the digital divide has widened between low-income
and middle-income communities, making it harder for unemployed and underemployed low-
income employees to break into the middle class. Often times WE&T programs that are also
affordable are done online or require the need for a home computer. This is an immediate barrier The Energy Education
to education and training. When working with disadvantaged communities, meet them where they
Collaboration Workforce
are. This should be all encompassing, addressing the needs of not just the low-income workforce,
Education and Training Program
but the employers and collaborators as well. Remove barriers to participation to increase the
opportunity for meaningful living-wage employment. A successful low-income WE&T program has provides access to careers in
to include wrap-around services like a flexible training schedule, food to eat, equipment, and even sustainability to students from
things like day-care services. This is only possible with a collaborative network. underserved populations.
This collaboration also provides
professional development
opportunities to instructors and
institutions. These opportunities
will allow instructors and
institutions to remain relevant
with new technologies
within industry

Andrei Lucas,
Dean, Educational Cultural Complex,
San Diego Continuing Education
 PAGE 9

Collaboration. You won’t find a well-rounded WE&T initiative taking place strictly within the walls
of a utility building. WE&T relies on collaboration to be done right. Partner with implementation
contractors that specialize in WE&T and have a portfolio to prove it. In addition, utilities should
seek to collaborate with experienced trainers, community colleges, education cultural centers,
career colleges and career academies within high schools. The goal is to meet the demand for an
appropriately trained workforce by connecting students with peers, teachers, and community partners
to foster skill development and academic success.

Community colleges, education cultural complexes, and career colleges are positioned to serve as
reliable sources of trained workers with degrees and credentials. These educational organizations
weave employment-related outcomes into their missions, with a singular goal of preparing graduates
to enter the workforce. Located in every state, these organizations are local or regional in their focus,
ensuring students receive an energy education relevant to the community in which they reside, and
the utility serves. They attract students from the area and build lasting ties to local economies. And
with most having an open admissions policy, the majority of workers are eligible to enroll in classes,
substantially reducing the barrier to a quality education often faced by disadvantaged communities.
In addition, education cultural complexes act as a continuing education environment providing skills Through successful
for students to transition to another level or attain a skill and enter the workforce. They are flexible collaboration, Franklin
and have a high level of community cultural competency. This makes education cultural complexes a Energy is helping to provide
center piece in the strategy to eliminate barriers and meet disadvantaged communities where they are. the blueprint to equity in the
green economy.
Collaborating with these organizations for both training and marketing of select trainings can help
a utility go beyond traditional hiring practices like word of mouth, employment services and help
wanted ads. A partnership results in the utility knowing that a potential worker has received industry- READ THE ARTICLE HERE
recognized training or credentials prior to hiring. It also provides both the utility and the student with
internship opportunities similar to a learn-and-earn opportunity in which the utility can get to know
the students prior to hiring them. Lastly, because the educational organizations are often adaptable
and responsive, they are eager and willing to change class offerings, class times and even class
location to meet the needs of local employers and the workforce. This gives utilities the opportunity
to support and/or fund curriculum relevant to what is happening within the workforce in a train-
the-trainer model, while at the same time dictating timing and location of classes to better meet the
needs of disadvantaged communities.
 PAGE 10

A final partnership for a successful WE&T program is with community action agencies (CAAs). Community Action Agency
Case Study
CAAs are local public, private, or non-profit organizations who offer support to families to help
BEHAVIOR-
them gain self-sufficiency. Utilities are most often familiar with CAAs for their role in helping CH
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Workforce Development
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 PAGE 11

Multi-Faceted Training. Like most things in life, WE&T won’t succeed with a one-size-fits-all
mentality. Utilities need to develop training protocols (or work with an implementation contractor
like Franklin Energy) that meet the diverse needs of the industry and the community. This means
designing and developing innovative training offerings for a variety of audiences and subject View the Clean
areas in multiple formats. From training building professionals on the fundamentals of green Energy Education and
building science to educating students on electrification and healthy homes, WE&T should Training Catalog
engage the workforce in tomorrow’s careers, today.

Utilities should initially look to engage residents from local communities and provide the
education and skills they need to ensure energy-efficient equipment is properly installed,
commissioned and maintained, and that buildings are designed, constructed and retrofitted DOWNLOAD
consistently with best practices and technical specifications for efficiency. Programs should
focus on increasing equity in energy efficiency programs through the proper training and T RA
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 PAGE 12

Consider trainings that include electrification, fuel switching, smart-grid technology, renewables
and battery storage, and a house’s influence on human health and healthy communities. In addition,
add convenient and obtainable certification courses on the fundamentals of green building
science. Lastly, all education and training should provide the building blocks participants need
to continue their education at the community college or university level, where utilities can work View the Healthy Homes
in collaboration to ensure demand and popularity in STEM (Science, Technology, Engineering and Case Study
Math)-based careers.

On the Horizon. While shaping a WE&T program consider the government’s goals around
workforce development and climate change. Future initiatives will likely include a wave of funding
opportunities to be leveraged within workforce education and training programs at both the DOWNLOAD
federal and state levels.

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 PAGE 13

CONCLUSION
Utilities are the largest employer in the clean energy economy, but are currently facing an
employment shortfall due to a retiring workforce and a widely publicized skills gap. By employing
focused outreach and targeted, cost-effective education and training, utilities have the opportunity
to match people from underserved communities with valuable careers in energy efficiency, while
also addressing the cracks left by a dwindling workforce.

While designing and delivering educational offerings that meet the needs of both the utility and
the workforce is a daunting task when done alone, it doesn’t have to be when you partner with
Franklin Energy for your workforce education and training initiatives. We take the guesswork out of
the process, educating the workforce and providing communities with access to education, training,
services and support to improve competitiveness and find quality jobs in a clean energy economy.
With over 26 years of experience meeting the changing needs of the industry, Franklin Energy is
your trusted partner for workforce education and training.

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