Mind the Soft Skills Gap: Are We Focusing On Employers’ True Needs?

1. Mind the Soft Skills Gap: Are We Focusing On Employers’ True Needs? Wednesday, May 15th 2:30-3:30 PM Blake Konczal, Executive Director, Fresno Regional WDB Brenda G. Budke, Executive Director Sierra HR Partners Erik Cherkaski, Business Services Manager, Fresno Regional WDB

2. Purpose Understanding the full picture of the skills gap phenomenon and how to properly align training and partnerships in response. • National Impact • Local Impact: Fresno Workforce Training Forum • Generational Differences • Moving Forward

3. The Growing Skills Gap- Background What is a skills gap? • A significant gap between what employers need and what the workforce has to offer.

4. Impact

5. Out of 500 U.S. Senior Executives Surveyed 44% Think Americans Lack ‘Soft’ Skills

6. America’s Skills Gap

7. What U.S. Industries Do Leaders See Most Affected By Skills Gaps? • 30% CiteManufacturing as most affected by lack of skilled labor • 21% Technology • 19% Professional Services • 12% Engineering • 11% Healthcare • 4% Construction • 2% Leisure and Hospitality

8. What Do Executives Think is the Source of the Skills Gap Issue? • 59% answered “yes” when asked if the U.S. education system was to blame for gaps in U.S. workforce skills. • 54% believe the education system does not teach the skills needed in today’s workforce

9. The Lack of Training

10. What Do Workers Think?

11. Where are Workers Most Likely to Go to Learn New Skills?

12. American Workers Expect the Private Sector to Help Them Develop Nearly 4 in 5 American workers say the private sector has responsibility for retraining. Nearly 6 in 10 expect their employer to help pay for training and new skills. In addition, 6 in 10 say their employers’ job training programs are effective.

13. Fresno Workforce Training Forum • What is the skills gap issue look like in Fresno County? • Nearly 200 attendees • Top industries represented: Manufacturing, Healthcare, Government, Education, Energy Construction, Hospitality, Supply Chain/Logistics • Separated into working session tables, asked the following questions: • What positions are difficult to fill? • What are common skills gaps you see with new applications? • What are common skills gaps you see with existing employees? • What types of training do your current employees require? • Do you provide in-house training or hire training vendors?

14. Overall, 80% of participants listed “soft skills” as the largest skills deficit they are facing, for both job seekers and existing employees.

15. Initiative • Work Ethic • Motivating Employees • Promotion Opportunities • Gumption (Resourcefulness, Aggressive, Competitive). • Upper Management Void: Seeking Candidates Outside Region • Completing Tasks • Professionalism • Customer Service • Dress • Demeanor • Etiquette • Business Decorum • Dealing with Different Personalities • Communication • Reliability (showing up to work on time). • Interview Skills

16. Critical Thinking • Many employers expressed concern on lack of basic critical thinking skills. • Common Sense • Problem Solving • Decision Making • Analyzing • Retaining Information: Training & Re-Training • Cross-Training • Impacting retention, upward mobility • Accepting/Receiving Feedback • Entitlement • Attitude • Giving Up • Not Learning From Mistakes

17. In a response to these soft skills issues, a surprising number of businesses stated they now provide in house training (particularly hospitality industry) • Trainings discussed included customer service, critical thinking, leadership, communication.

19. Tech Skills vs Non Tech Skills • Older managers tend to put more value in communication skills with new hires. • Younger managers often rely more on technical skills when hiring. • Larger discussion to have due to: • Rise of Automation, more computer based skillsets • Social Media/ Communication online become more prevalent (and necessary). • Mass exodus of baby boomer workforce due to retirement in the coming decade.

20. Defining Generations • Boomers (mid 1940s-early 1960s) in general are: • More work-centric and more likely to define themselves by their career or find motivation in position and prestige. • Use technology as productivity tools as opposed to a means to connect with others. • Prefer face-to-face or phone calls for communication.

21. Generation X (mid 1960s-early 1980s) tends to be: • More flexible and adaptable, less loyal to institutions and employers. This is tied to their similar prioritization of work/life balance. • More individualistic, resourceful and autonomous, less trusting of larger institutions.

22. Millennials (early 1980s-early 2000s) tend to: • Embrace and align themselves with technology, particularly with mobile technology • Be a a social generation, online and IRL (“in real life”). • Be highly values-driven, but with different values.

23. Moving Forward • What can LWDBs do with data/feedback from employers showing overwhelming support of soft skills development? • Education needs to be at the table: curriculum that includes basic skills assessments and trainings. How early to start? • WDB trainings: More emphasis on soft skill development at the early career readiness stage, particularly with youth clients.

24. Upskill Training Opportunities • More focused trainings on communication techniques for existing employees • Team building exercises: How to motivate employees, communicate with different groups, understand different values. • Management development: how to properly train current employees. Hiring from within, not outsourcing.

25. Questions? Contributing Sources: Adecco – Watch the Skills Gap: https://www.adeccousa.com/employers/resources/skills-gap-in-the-american-workforce/ College for America – 2014 Workforce Strategies Survey Prudential – Fifth American Workers Survey Fact Sheet: http://news.prudential.com/presskits/fifth-american-workers-survey.htm