Succession Planning

We conducted a review to determine what TVA has done to address challenges arising from TVA's aging workforce, retirements, and the resulting knowledge loss. Challenges facing power utilities as a result of the aging workforce include the loss of critical knowledge, the inability to find replacements with utility-specific skills, and the lack of bench strength within the organization. We determined TVA has adopted an Integrated Staffing Plan Principle, as well as several initiatives to support this principle which address the challenges arising from TVA's aging workforce. These initiatives include (1) Strategic Talent Management, (2) Work Force Planning, (3) Knowledge Retention, (4) Training Pipeline, and (5) Recruiting. We also determined that TVA's succession planning initiatives include many recognized best practices, and TVA is a recognized best practice organization related to knowledge retention.While TVA has taken actions to address the issues arising from an aging workforce, the implementation of TVA Corporate HR initiatives by the business units can be improved. We recommended the Executive Vice President, Administrative Services:Consider educating employees on the importance of self-reported retirement dates and how that information is used, along with providing on-going education on retirement benefits and planning from early in a TVA employee's career; Ensure complete implementation of the Knowledge Retention Initiative, which supports compliance with and the success of the Integrated Staffing Plan Principle; and Emphasize the importance of pipeline hiring to move TVA more towards being a developmentally oriented business. TVA management agreed with our findings and has initiated or plans to initiate corrective action.