A version of this article appeared in the July 2025 edition of the Northwest Public Power Association Bulletin.
In every modern city and remote village in the U.S., electricity quietly powers homes, businesses, and the infrastructure of daily life. Yet, behind the reliable flick of a switch lies a growing crisis that threatens to destabilize this foundation: the power and utility workforce is facing a demographic shift.
The workforce in the power and utility sector is approaching retirement, but this isn’t just a looming crisis; it’s a unique opportunity to reinvent how these essential companies operate and sustain themselves for the future. By proactively capturing institutional knowledge, investing in new talent, and modernizing workforce practices, utility companies can support continuity, resilience, and relevance.
As seasoned employees approach retirement in droves, the industry stands on the brink of a massive talent vacuum. The sector is grappling with a rapidly shrinking pool of skilled labor, posing serious risks to operational reliability, institutional knowledge, and innovation.
Those who embrace the challenge with foresight and strategy will not only weather the storm but emerge stronger and more innovative than ever before. The lights must stay on and that starts with powering up the next generation of workers.
Trends shaping the workforce
For decades, the power and utility sector has been defined by consistency. Workers often spent entire careers at a single company, amassing deep expertise in grid systems, legacy equipment, safety protocols, and community service.
However, this stability has become a double-edged sword. Today, almost half of the utility workforce is aged 45 or older, with a significant portion eligible for retirement within the next five to ten years.
This demographic shift is not only dramatic but also dangerously uneven, particularly in areas like transmission, distribution, and power generation where specialized skills are indispensable.
Changes to the sector
The integration of renewable energy sources, digitization of the grid, deployment of smart meters, and increasing demand for cybersecurity have made the workforce challenges even more complex.
New roles demand expertise in data analytics, AI, remote sensing, and software engineering fields in which many veteran workers have limited exposure, and younger recruits are in short supply.
These shifts also coincide with changes in workforce expectations. Younger workers are more likely to prioritize flexible work environments, meaningful engagement, and rapid career development over long-term job security.
Utility companies often struggle to compete with the tech sector in offering such opportunities, making recruitment even more difficult.
Challenges posed by workforce aging and knowledge loss
The repercussions of an aging workforce are multifaceted.
Institutional knowledge loss
Experienced workers possess a wealth of knowledge that isn’t easily transferred through documentation or training manuals. This includes troubleshooting legacy systems, understanding complex regulatory environments, and managing emergency situations based on years of on-the-ground experience.
As these workers retire, companies face the prospect of critical depletion of operational wisdom that could compromise reliability and safety.
Lack of succession planning
Many companies have not systematically identified key roles and skills at risk or created knowledge transfer programs to train younger employees. The result is a fragile human infrastructure where any unexpected exit can lead to disruptions.
Evolving standards
Training new employees to meet rigorous updated expectations is time-intensive and costly. Without a robust bench of trained professionals, utilities may find themselves struggling to meet compliance deadlines, respond to emergencies, or innovate at the pace the industry now demands.
Technological obsolescence
As the sector digitizes, more tenured workers may lack familiarity with new systems, while newer employees may not fully understand the underlying physical infrastructure.
This disconnect can lead to implementation errors, increased downtime, and inefficiencies that ripple across operations.
Opportunities to address the challenges
While the challenges are significant, they are not insurmountable. With strategic planning, utility companies can turn this workforce transition into an opportunity for renewal and innovation.
Knowledge capture and transfer
One of the most powerful tools available is knowledge capture and transfer. Companies should invest in structured mentorship programs where retiring workers train newer employees through job shadowing, co-working on projects, and creating documentation that details institutional processes.
Digital tools like knowledge management systems, video tutorials, and augmented reality (Arkansas) training modules can enhance these efforts by preserving skills and making them accessible in the future.
Workforce analytics
By using predictive modeling, utilities can identify which roles are at highest risk of vacancy and which skills are in shortest supply.
This data-driven approach allows companies to proactively recruit and train new talent before critical gaps emerge.
New worker pipelines
Partnerships with educational institutions can help build a pipeline of young, skilled workers. Collaborating with technical colleges, universities, and even high schools to create curriculum aligned with industry needs ensures a steady influx of qualified candidates. Apprenticeships, internships, and co-op programs provide hands-on experience that prepares new workers more effectively than traditional classroom education.
Broader talent pools
Additionally, embracing diversity and inclusion can unlock untapped talent pools. Women, veterans, and underrepresented minorities remain significantly underrepresented in utility jobs.
Focused recruitment and retention strategies for these groups can expand the available workforce while bringing fresh perspectives and innovation.
Enhanced appeal
Finally, utilities must modernize their employer value proposition. Offering flexible work arrangements, professional development, and a clear career progression path can help attract and retain younger employees.
Highlighting the social importance and technological evolution of the sector can also appeal to purpose-driven candidates.
Action plan: Strategic steps to mitigate workforce risks
To effectively address the aging workforce and mitigate the risk of knowledge loss, utility companies should adopt a phased, strategic approach.
Phase 1: Assess and prioritize
Conduct a workforce assessment to identify age demographics, retirement risk, and critical roles.
Use workforce planning and analytics to model scenarios, potential future gaps, and succession needs.
Prioritize roles with the highest operational risk and knowledge concentration.
Phase 2: Capture knowledge systematically
Develop mentorship programs that pair aging or retiring employees with new hires.
Utilize video interviews, process documentation, and digital learning platforms to capture unique knowledge gaps.
Invest in knowledge management systems that centralize best practices and procedures.
Phase 3: Build talent pipelines
Partner with academic institutions to align curriculum with industry needs.
Create internship and apprenticeship opportunities that lead to full-time employment.
Invest in training courses for new graduates, unemployed, or retired individuals who are looking for new careers or rejoin the workforce.
Launch community engagement initiatives to raise awareness of utility careers.
Phase 4: Modernize talent management
Implement flexible work policies where feasible, especially in office-based roles.
Offer competitive total rewards packages, including compensation, benefits, career development, career growth, and flexible work schedules.
Promote a culture of innovation, inclusion, and continuous improvement.
Phase 5: Monitor, evaluate, and adjust
Set KPIs related to knowledge transfer, retention, and new hire performance.
Conduct regular reviews of workforce data and program effectiveness.
Be agile in adjusting strategies based on feedback and changing conditions.
