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The workforce is shrinking as the baby-bust generation succeeds the baby boomers, and it is becoming increasingly diverse, with fewer white males and more women, minorities, immigrants, and disabled and older workers. Today's workforce also has different needs and expectations from yesterday's workforce, ranging from family-friendly benefits to inclusion in employer decision-making processes. Water utilities are taking action in response to these workforce changes, which are elevating the importance of personnel operations. Implementation of innovative management methods based on flexibility, teamwork, and quality service are showing signs of success. Includes 13 references.