Latest / The Diversity Career Podcast with Fexingo: Inclusion, Equity, and Underrepresented Professionals / How a Utility Company Created a Career Ladder for Rural Workers
Transcript
- Lucas: So earlier this year, a Midwestern utility company — I'm thinking of one in particular, let's call it Midwest Energy Solutions — announced a partnership with a rural community college that, on the surface, sounds pretty straightforward: they would fund a two-year certificate program in electrical linework and substation operations, and guarantee graduates an interview for a full-time position. But the details are where it gets interesting. Luna: What kind of details? Because a lot of companies have some version of a partnership like that, but they don't always deliver. Lucas: Right, and that's the key. This one is structured around removing barriers that are specific to rural workers. So the program is tuition-free, it includes a stipend for housing and transportation, and it's designed so that someone with a high school diploma or GED can enter — no prior college credits required. The company also provides mentors from within their own workforce, many of whom came from similar backgrounds. Luna: That's a big deal. In rural areas, transportation and housing costs are huge hurdles. Even if the training is free, if you can't afford to get there or live near the training site, it doesn't matter. Lucas: Exactly. And the numbers bear that out. The first cohort graduated in June of this year — 24 people. Of those, 22 accepted positions with Midwest Energy Solutions. The company reported that after two years, their retention rate for program graduates is about 80 percent, compared to 55 percent for traditional hires from outside the region. That's a massive difference. Luna: Eighty versus fifty-five — that's almost 25 percentage points higher. What's driving that retention? Is it the local connection, the fact that they're not uprooting people from somewhere else? Lucas: Partially. But I think it's also that the program is designed to build a career, not just fill a slot. Graduates don't just become lineworkers — they have a clear path to senior technician, crew supervisor, even management. The company has a formal advancement framework that ties additional certifications to pay increases. So someone who starts at, say, $22 an hour can be making $35 within three years if they complete the modules. Luna: That's a real ladder. And it's interesting that this is a utility company — an industry that's traditionally been very male, very white, and very reliant on hiring from existing networks. Lucas: Yeah, and that's part of why this caught my attention. The utility sector has a massive labor shortage coming — a lot of the workforce is nearing retirement, and they need to replace hundreds of thousands of workers in the next decade. So this isn't just a nice to have diversity initiative; it's a business imperative. And the geographic angle — focusing on rural communities — is a way to tap into talent that's often overlooked. Luna: Geographic diversity is something we don't talk about enough in DEI. We focus on race, gender, sometimes neurodiversity, but where someone grows up and the economic opportunities available there — that's a huge factor in career outcomes. Lucas: Absolutely. And the company didn't frame this as a diversity program — they called it a 'workforce development initiative.' But the result is that they're pulling in people from communities that have been historically excluded from well-paying jobs in the energy sector. The first cohort was roughly 60 percent non-white, and about 30 percent women, which is much higher than the industry average for linework. Luna: So it's diversifying the pipeline without explicitly calling it a DEI program. Do you think that's a more effective approach in some contexts? Lucas: I think it depends on the company culture and the region. In a conservative-leaning rural area, a program that's branded as 'economic opportunity' or 'workforce readiness' might get more buy-in than one labeled 'diversity and inclusion.' But the outcomes are the same — you're creating access for people who didn't have it. And the metrics are there: higher retention, lower recruitment costs, and a more stable workforce. Luna: And this model could scale. I'm thinking about other industries — construction, manufacturing, healthcare — all facing similar labor shortages. Lucas: Right. In fact, there's a similar program in the Pacific Northwest with a hospital system that partners with tribal colleges to train medical assistants and lab technicians. Same structure: paid training, guaranteed interview, mentorship. The retention numbers are similarly impressive. So it's not a one-off. Luna: What about the skeptics who say, 'Well, you're just lowering the bar'? I've heard that criticism of programs that don't require a degree. Lucas: I'd push back on that. The program isn't lowering standards — it's building the skills that are actually needed for the job. A four-year degree in, say, communications doesn't prepare you to repair a transformer. A two-year hands-on certificate does. And the company's own data shows that these graduates perform at or above the level of traditional hires within six months. So the bar isn't lower; it's just different. Luna: That makes sense. And it's also worth noting that the program includes soft skills training — communication, teamwork, safety culture — which are often the things that trip up new hires regardless of background. Lucas: Exactly. The curriculum was co-designed by the company and the college, so it's very practical. And the mentors are there to help with the cultural transition — understanding how to navigate a large organization, how to ask for help, how to advocate for yourself. That's something a lot of first-generation professionals don't have access to. Luna: You know, speaking of first-generation professionals and access to resources — this kind of deep-dive content is exactly why people tell us they value this show. And it's why we keep it ad-free. A couple of dollars a month at buy me a coffee dot com slash fexingo genuinely keeps these episodes coming. If you've gotten something out of our conversations, that's where you can chip in. Lucas: Yeah, it's a small thing that makes a real difference. We're not asking for much — just enough to cover research time and production. And it keeps the show independent, which matters to us. Luna: Exactly. So back to the utility program — one thing I want to dig into is how they handle failures. What if someone doesn't complete the training or leaves after a year? Lucas: Good question. The company has a 'no clawback' policy — they don't ask for the training cost back if someone leaves. They see it as an investment in the broader community, even if the person moves on. And they track exit interviews to understand why people leave, and they've adjusted the program accordingly. For example, early on, they found that some graduates struggled with the shift work schedule, so they added a module on time management and family support resources. Luna: That's smart. A lot of programs just dump people into the job and hope for the best. The continuous improvement loop is key. Lucas: It is. And the results are starting to get attention. I've seen other utilities in the region reach out to Midwest Energy Solutions to learn about their model. There's even talk of a consortium to standardize the training across multiple states, so a certificate from one company is recognized by others. That would be a game-changer for worker mobility. Luna: That's a huge step toward making this a scalable solution. It's not just a feel-good story — it's a replicable model. Lucas: And it addresses a real gap. Most DEI efforts are focused on corporate headquarters or white-collar roles. But the majority of jobs in this country — especially in sectors like energy, manufacturing, logistics — are blue-collar or skilled trades. If we're serious about economic inclusion, we need to look at those pipelines too. Luna: And the beauty of this approach is that it's not dependent on a particular political climate. It's about solving a concrete business problem — labor shortage — while also creating opportunity. That's hard to argue with. Lucas: Exactly. And it gives me some hope that we can make progress on diversity without getting bogged down in ideological debates. The proof is in the numbers. Luna: Well said. I think that's a good note to wrap on today. Thanks for digging into this, Lucas. Lucas: Thanks, Luna. And thanks to everyone listening. We'll be back next time with another story of how companies are rethinking career paths.