Utility workforce productivity benchmarking is about measuring how effectively your teams perform, identifying inefficiencies, and improving operations with data-driven decisions. For utilities managing electric and gas services, this means tracking metrics like labor efficiency, job completion rates, and safety performance to meet growing demands while addressing challenges like aging infrastructure, skills shortages, and cost pressures.

Key Takeaways:

• Why It Matters: Benchmarking helps utilities improve service reliability, reduce costs, and optimize workforce use.

• What to Measure: Metrics such as wrench time (productive hours), first-time fix rates, overtime percentages, and customer restoration times are critical.

• Challenges: Workforce shortages, regulatory requirements, and aging infrastructure complicate operations.

• Data Sources: Systems like work order management, GIS, and SCADA provide essential insights for benchmarking.

• Steps to Start: Define clear goals, collect accurate data, analyze gaps, and implement improvement plans.

By focusing on measurable goals and leveraging workforce solutions, utilities can enhance productivity and deliver better results for customers.

Benchmarks for Headcount & Workforce Optimization (consulting projects)

Key Metrics and Data for Workforce Productivity Benchmarking

To effectively benchmark workforce productivity, utilities need to focus on tracking the right metrics. Without proper measurement, it's nearly impossible to identify performance gaps or evaluate progress. The emphasis should be on metrics that directly influence operational efficiency, customer service, and financial outcomes. Let’s break down the key metrics that form the backbone of this benchmarking process.

Core Productivity Metrics for Utility Workforces

Labor efficiency is one of the foundational metrics for workforce productivity. This involves assessing work hours per unit of output, allowing utilities to compare performance across teams, regions, or specific time periods.

Job completion rates are another critical measure. They show the percentage of scheduled work orders completed within the allotted time. High-performing utilities maintain strong completion rates for both routine maintenance and emergency response tasks. Tracking these rates can uncover issues like scheduling delays, resource mismanagement, or skill shortages.

Overtime as a percentage of total labor hours provides additional insight into workforce management. While some overtime is unavoidable in utility operations, consistently high levels could signal deeper problems, such as understaffing or inefficient scheduling.

First-time fix rates measure how often field crews resolve issues on their initial visit without needing a follow-up. A high rate in this metric points to good preparation, proper skill alignment, and effective diagnostics. This is especially important for customer service calls and equipment repairs.

Customer interruption restoration metrics evaluate how quickly crews restore power during outages. These often include average restoration time per customer or the number of customers restored per crew hour. Monitoring these figures helps utilities assess the efficiency of their emergency response efforts and pinpoint areas for improvement.

Safety performance indicators are essential to ensure that gains in productivity don’t come at the cost of worker safety. Metrics like recordable injury rates, near-miss reports, and the completion of safety training programs help maintain a balance between efficiency and safety.

Equipment and vehicle utilization rates offer insights into how well utilities are using their physical assets. Tracking data such as vehicle mileage per work order, equipment downtime, and tool availability can highlight opportunities to manage assets more effectively.

Data Sources and U.S. Conventions

Collecting accurate and relevant data is critical for benchmarking. Utilities rely on several key systems to gather the necessary information:

• Work order management systems: These systems track job details, including assignments, completion times, labor hours, materials used, and customer interactions. Many utilities now use mobile platforms that allow real-time updates from field crews, ensuring data remains up-to-date and precise.

• Payroll and human resources systems: These provide essential data on labor costs, overtime hours, training records, and workforce demographics. When combined with work order data, they enable calculations like labor cost per work order or per customer served. All financial data is recorded in U.S. dollars, adhering to standard formatting.

• Geographic Information Systems (GIS) and asset management databases: These systems provide context by tracking the location, age, and condition of utility infrastructure. They allow for analysis based on asset type, service territory, and equipment condition, using U.S. measurement standards (miles, feet, square miles, etc.).

• Customer information systems: These systems deliver data on service calls, outage reports, and customer satisfaction, offering insights into how workforce productivity impacts service quality.

• Supervisory Control and Data Acquisition (SCADA) systems and smart grid technologies: These generate real-time data on equipment performance, power flows, and system reliability. Metrics are recorded using standard U.S. electrical units like kilowatts, megawatts, and kilowatt-hours.

• Financial reporting systems and regulatory databases: These provide cost data and standardized benchmarking metrics required by state and federal agencies. Data is managed following U.S. accounting standards, ensuring alignment with industry benchmarks.

Additional data points often include temperature readings (in Fahrenheit) for equipment and worker performance, as well as pressure measurements (in PSI) for gas utilities. Time-based data follows U.S. conventions, with dates formatted as MM/DD/YYYY and times typically recorded in a 12-hour AM/PM format unless operational systems require a 24-hour clock. These diverse data sources create a comprehensive framework for precise benchmarking, helping utilities enhance their operations with confidence.

Step-by-Step Guide to Benchmarking Workforce Productivity

Turning raw data into actionable insights involves a structured process with three key phases. Each step requires precision and consistency to ensure meaningful outcomes.

Define Objectives and Collect Data

Start by setting clear, measurable objectives that target specific areas of improvement. Instead of trying to tackle everything at once, focus on areas where increased productivity will make the biggest difference. For example, you might aim to reduce restoration times, improve first-time fix rates, or better utilize crews. Make these goals measurable and time-bound - like boosting first-time fix rates within six months or cutting overtime hours by a set percentage before the end of the year.

Once objectives are in place, the next step is gathering accurate and consistent data. This requires seamless integration between systems like work order management, payroll, and asset management. Even small inconsistencies in data entry can distort results, so it’s crucial to establish standardized protocols. For instance, ensure uniform formatting for work order descriptions, consistent time tracking, and clear procedures for cost allocation. Emergency response times should also be recorded from the same starting point across all teams, whether it’s the initial customer call, dispatch, or arrival on-site.

To create a reliable baseline, collect 12 to 18 months of historical data. This timeframe helps account for seasonal fluctuations and provides a realistic picture of current performance. With this foundation, you’ll be ready to dive into the next phase: analyzing gaps and identifying opportunities.

Analyze Gaps and Identify Opportunities

With the data in hand, it’s time to assess how your workforce measures up against industry standards and internal goals. This phase combines number crunching with deeper analysis to uncover not just performance gaps but their underlying causes.

Start by calculating your performance on key metrics, then compare these figures to benchmarks from sources like utility associations, regulatory reports, or peer organizations. Areas where your numbers fall short highlight immediate opportunities for improvement.

If certain metrics, like first-time fix rates, aren’t where they should be, dig deeper to understand why. Are crews equipped with the right tools? Have technicians been properly trained on new equipment? Is a lack of parts causing delays and repeat visits? A root cause analysis can provide these answers.

Geographic data can also reveal important patterns. Urban crews might handle routine calls efficiently but struggle with complex issues, while rural teams could face travel-related challenges. Breaking performance down by region, team, or work type helps pinpoint where improvements are most needed.

To prioritize efforts, consider the financial impact of addressing each gap. For example, improving emergency response times could significantly cut overtime costs while also boosting customer satisfaction. Positive outliers - teams or periods where performance exceeds expectations - offer another valuable perspective. Analyzing what works well in these cases can uncover practical strategies to apply elsewhere.

Implement and Monitor Improvement Plans

Once you’ve identified what needs fixing, turn your findings into action. This phase is all about execution, accountability, and ongoing tracking to ensure progress.

Develop detailed action plans for each gap, assigning responsibilities, setting timelines, and defining success metrics. For instance, if productivity dips during hot summer months, you might introduce a heat management program with adjusted schedules, hydration breaks, and temperature monitoring. Regular check-ins will help keep these initiatives on track.

Address skill gaps with targeted training. Combine classroom sessions with hands-on mentoring, pairing seasoned technicians with newer team members to transfer knowledge effectively.

Invest in technology upgrades, such as mobile work order systems, to give crews real-time access to manuals, parts inventories, and customer histories. Provide concise training to ensure these tools are used effectively.

Use real-time dashboards to monitor performance metrics continuously. These dashboards should be accessible to both supervisors in the field and senior management, allowing for early identification of trends and timely adjustments. Include both leading indicators, like training completion rates, and lagging indicators, such as job completion times, for a full picture.

Finally, create feedback loops by gathering input from frontline crews and customers. Their insights can highlight practical solutions that might otherwise go unnoticed. Celebrate and share success stories across the organization. When a team achieves standout results, analyze their approach and share those best practices to inspire further improvements company-wide.

Benchmarking Methods for Utilities

Choosing the right benchmarking method can provide insights that lead to practical improvements in utility operations.

Overview of Productivity Benchmarking Methods

Productivity Index is often the starting point for benchmarking efforts. It calculates the ratio of outputs to inputs, offering a straightforward numerical score to track changes over time. For instance, utilities might measure outputs like kilowatt-hours delivered per employee hour or customer calls resolved per technician. A score of 1.2 would indicate a 20% improvement in productivity compared to the baseline period.

MFP (Multifactor Productivity) Analysis takes a broader approach by examining multiple inputs, such as equipment usage, materials, and technology investments, alongside workforce metrics. This method can pinpoint whether productivity gains come from better tools, improved training, or more efficient processes. For example, while new technology might initially disrupt workflows, MFP analysis often highlights long-term benefits like streamlined parts management or fewer repeat visits.

Peer Group Comparisons offer an external perspective by comparing performance against similar utilities. These comparisons are typically based on shared characteristics like service territories, customer bases, or regulatory environments. Regional utility associations often play a key role by collecting anonymized data, allowing members to see how their performance stacks up against both regional averages and top-performing peers.

Historical Trending focuses on tracking performance over time by comparing current data to established baselines. This method is particularly useful for evaluating the impact of specific programs. For example, when a utility launches a new apprenticeship program, historical trending can measure trainee productivity improvements over a two-year period, helping refine training strategies and set realistic goals for future participants.

Each method offers unique insights, so selecting the one that aligns with your utility's data and goals is key.

Choosing the Right Method for Your Utility

To decide on the best benchmarking approach, start by evaluating your utility's data capabilities and strategic goals. For utilities with robust data systems and consistent record-keeping, advanced methods like MFP analysis may be feasible. On the other hand, utilities with limited historical data might benefit from starting with simpler productivity index calculations while building their data infrastructure [1].

Data availability plays a critical role in method selection. Productivity index calculations require basic time and output data, which many utilities already collect. In contrast, MFP analysis demands more detailed information, such as equipment depreciation, materials usage, and overhead allocation. Peer comparisons, meanwhile, depend on access to industry associations or benchmarking services that compile standardized performance data.

Beyond data, consider your analytical capacity and available resources. A method that balances simplicity and depth is often the most sustainable choice. Ensure your organization has the tools and expertise needed to maintain the chosen approach over time.

Finally, align your benchmarking method with your strategic objectives. For instance, utilities focused on reducing costs might find MFP analysis useful for identifying the most cost-effective areas for improvement. Meanwhile, those prioritizing customer satisfaction could benefit from peer comparisons to learn from top performers in service quality. A utility aiming to improve emergency response times might use peer comparisons to identify best practices, while one addressing high training costs could apply historical trending to fine-tune apprenticeship programs based on past results.

For a more comprehensive view, consider combining methods. Start with productivity index calculations to establish a baseline, use peer comparisons to gain external insights, and incorporate MFP analysis as your data and analytical capabilities grow. The right benchmarking method - or combination of methods - can help utilities enhance workforce productivity and achieve their operational goals.

Improving Benchmarking with Workforce and Recruitment Solutions

For benchmarking to truly deliver results, you need skilled professionals who can not only identify areas for improvement but also implement and sustain them. The real challenge for many utilities lies in having the right people in place to maintain productivity while driving these changes forward. That’s where specialized workforce solutions come into play, helping utilities enhance both their benchmarking efforts and overall operations.

Tackling Talent Shortages with Flexible Workforce Solutions

The utility industry often struggles with workforce gaps, which can skew benchmarking data and derail improvement plans. For example, if skilled technicians or seasoned engineers are missing, productivity measures might reflect staffing issues rather than actual inefficiencies. This can lead to flawed decision-making and misguided strategies.

Flexible workforce solutions provide a way to bridge these gaps. By bringing in experienced professionals, utilities can stabilize productivity levels and ensure that benchmarking data reflects actual performance - not temporary staffing issues. For utilities conducting peer comparisons, maintaining consistent staffing is key to generating reliable benchmarks.

Programs like Train-to-Hire offer another layer of support. These initiatives allow utilities to assess candidates over time, ensuring they meet technical requirements and align with company culture. This approach minimizes the risks of productivity dips that often occur when new hires take time to get up to speed.

These solutions also shine during large-scale projects or emergency situations. Whether it’s upgrading transmission lines or responding to storm damage, utilities can quickly scale their workforce with minimal delays. This adaptability ensures that productivity benchmarks remain steady, even in high-pressure scenarios.

Leveraging Industry Expertise for Custom Workforce Solutions

Utilities operate across diverse areas like electric and gas transmission, distribution, substations, storage, and generation. Each of these sectors has unique demands, requiring tailored workforce solutions rather than a one-size-fits-all approach.

For transmission and distribution, for instance, workforce solutions can provide skilled line workers and engineers who are familiar with grid management and maintenance schedules. Their expertise ensures consistent productivity, even when new benchmarking initiatives or operational changes are introduced.

Specific strategies like Contract Evaluation Hiring allow utilities to test specialized talent before making permanent hires. This ensures that gaps identified through benchmarking are filled with the right expertise. Similarly, Fixed Project Consulting Services focus on translating benchmarking insights into actionable improvements. With clear project goals and timelines, these services help utilities achieve measurable results.

Global Talent Access adds another dimension by opening up international talent pools. Workforce solution providers handle visa and sponsorship logistics, allowing utilities to tap into specialized skills that may be hard to find locally.

Conclusion: Driving Operational Excellence Through Benchmarking

Workforce productivity benchmarking lays the groundwork for long-term operational success. Utilities that embrace systematic benchmarking practices gain actionable insights to refine operations and improve efficiency.

The key to success lies in treating benchmarking as an ongoing journey, not a one-off task. By consistently analyzing productivity metrics, utilities can uncover inefficiencies, optimize resources, and maintain a competitive edge.

Key Steps to Take

Start by setting clear objectives that align with your utility’s strategic priorities, whether it’s cutting operational costs, boosting safety performance, or enhancing customer service.

From there, focus on data collection and analysis. Tracking key productivity metrics provides a clear picture of where your workforce excels and highlights areas needing improvement.

Identify gaps in performance to uncover opportunities for targeted investments - whether in training, technology, or refining processes. These insights help prioritize efforts that yield the greatest impact.

Finally, ensure accountability by monitoring progress and adapting strategies as conditions evolve. This continuous approach keeps improvement initiatives on track and responsive to change.

While these steps are essential, having the right team to implement and sustain these strategies is just as important.

Why Workforce and Recruitment Solutions Are Critical

Even the most robust benchmarking system can fall short without skilled personnel to execute the plans. This is where ServiceHub’s workforce solutions become a vital partner in achieving productivity goals.

Workforce shortages can skew benchmarking data and delay progress. Unfilled positions often result in metrics that reflect staffing gaps rather than actual operational inefficiencies. ServiceHub’s Adaptive Workforce Solutions ensure utilities maintain the staffing levels needed to produce accurate benchmarks and deliver on improvement goals.

Utility operations - spanning electric and gas transmission, distribution, substations, storage, and generation - require specialized expertise. ServiceHub’s deep industry knowledge ensures that recruitment and development efforts align with the unique demands of these operations.

Programs like Train-to-Hire and Contract Evaluation Hiring offer utilities the flexibility to build teams capable of sustaining productivity improvements. These approaches reduce the risks of traditional hiring while ensuring new hires contribute to benchmarking goals from day one.

For utilities committed to operational excellence, workforce solutions are more than just a support system - they’re a strategic tool that transforms benchmarking insights into tangible results.

FAQs

What are the first steps for utility companies to start benchmarking workforce productivity?

To gauge workforce productivity effectively, utility companies should start by setting clear, measurable metrics. These metrics should emphasize efficiency, quality, and employee well-being, ensuring they align with both industry benchmarks and the company’s specific objectives. This alignment guarantees that comparisons are meaningful and actionable.

The next step is to adopt tools and technologies that deliver real-time performance insights. Leveraging this data-driven approach allows companies to spot trends, identify areas needing improvement, and make well-informed decisions. Additionally, streamlining and standardizing workforce management processes is key to ensuring consistency, which is essential for accurate benchmarking.

By laying this groundwork, utility companies can create a reliable system to enhance productivity and drive measurable improvements.

How can utility companies tackle workforce shortages and aging infrastructure while maintaining productivity standards?

Utility companies can tackle workforce shortages and the challenges of aging infrastructure by emphasizing upskilling their current workforce and introducing targeted training programs for new recruits. These measures not only help fill skill gaps but also ensure valuable knowledge is passed on as seasoned employees retire.

On top of that, embracing modern workforce strategies - like train-to-hire initiatives, flexible project-based roles, and tapping into global talent pools - can effectively address skill shortages and enhance operational performance. By taking these steps, utilities can stay productive and keep pace with the industry's changing demands.

How do advanced technologies improve productivity benchmarking in utility companies?

Advanced technologies are transforming how utility companies approach productivity benchmarking. Tools such as AI, cloud computing, and advanced analytics make it possible to gather precise data, perform real-time analysis, and minimize errors.

These technologies allow companies to pinpoint inefficiencies, optimize their operations, and uncover actionable insights. With continuous performance monitoring and data-driven decision-making, utility companies can focus on targeted improvements that drive efficiency and operational success.

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