The Ill Prepared U.S. Workforce

1. The Ill Prepared U.S. Workforce Summary of a report by Corporate Voices for Working Families ASTD SHRM The Conference Board Prepared by Patricia Beck, SPHR, CLU, ChFC Great Plains Technology Center 4500 W. Lee Blvd., Lawton, OK 73505 pbeck@gptech.org 580-250-5553

2. Half of the 217 employers surveyed provide workforce readiness (remedial) training programs to address deficiencies of newly hired entrants in such skills as leadership, information technology, teamwork, etc. but not high need skills such as critical thinking, problem solving, and creativity as well as basic skills such as reading writing and math.

3. When asked to rate the overall preparedness of their new entrants, more than one-third of the 217 respondents (33.9%) report that newly hired HS graduates are deficiently prepared. • 21.7% report that their 2 year college graduates are unprepared • 17.4% report 4 year college graduates are unprepared.

4. Overall preparation of new workforce entrants National & OK 7% 74% 19% 17.4% 51.1% 31.5% 17% 83% 21.7% 54.6% 23.7% 78% 4% 18% 33.9% 50.6% 15.69%

5. Success in In-house workforce readiness programs

6. Rate the effectiveness/success of your in-house workforce readiness (remedial) training. • Overall there is low satisfaction with the effectiveness of workforce readiness programs with some pockets of excellence in the financial industry and manufacturing (greatest success rates at 66.7% reporting successful). • About half of OK HR professionals surveyed said they offer some workforce readiness (remedial) training.

7. The Gap Between Need and Provision • Programs being offered, in many cases, do not match employers’ greatest needs. Employers reported a high need for training programs in applied skills rather than the basic skills. • Creativity/innovation • Ethics/Social responsibility • Professionalism/work ethic • Lifelong learning/self direction • Critical thinking/problem solving • Of those indicating a high need for the above, only 31.4% offer such training.

8. Why? • Do not have the in-house capacity to teach such skills • There is no agreement on the best way to teach these skills. • Half of those surveyed agreed that formal programs were not the best way. • Employers do not separate workforce readiness programs from new entrant training.

9. American Express • Intentionally decided not to hire and train unprepared entrants. • Created a very specific, detailed hiring profile to assure new entrants have right skills in math, computing, reading/retention, ability to locate and communicate technical information, teamwork, communications skills and attitude about work. • Ave. employee spends 60 hours/yr. on career development training.

10. CVS Caremark and TJX Co. Created a multi-staged training approach, • Entry level program that integrates training in basic reading and writing contextualized to retail and blended with customer service. • Begin training for supervisory programs / college level coursework • Train to become assistant store mgrs. & store mgrs. & obtain Associates degree.

11. Northrop Grumman’s Apprentice School Consortium of 6 community colleges & universities to transfer credits. • Combines applied skills training, academics & leadership. • Offers fully paid, comprehensive 4 & 5 yr. apprentice programs for students interested in shipbuilding careers. • Can earn Associates in engineering or business administration. • Includes applied skills such as communications, time mgt., interpersonal skills.

12. Northrop Grumman’s Apprentice School • Results: 80% of graduates remain with Northrop-Grumman 5 yrs. after completion. • 2,500 graduates still in company’s workforce • 42% of line management are graduates • Not impacted by the economic downturn with long range plans to increase student body from 750 to 1000.

13. Harper Industries (construction) • Hiring philosophy: “hire employees we believe have a strong work ethic and good people skills…then, we teach them the trade” • Uses Predictive Index and behavioral based interviewing to assess good fit for the job and the company • Provides student summer internships.

14. Harper Industries (construction) • Identifies training deficits through online performance mgt. system • Partnered with 4 local 2 yr. colleges & U of Tenn. To create Harper University offering certification and customized training to 400 employees in 2009. Taught during work hours and financed by Harper. • Included applied skills, finance, computer skills, mgt. training and six sigma.

15. What Business Can Do • Education is the primary recipient of corporate philanthropy, but these dollars are rarely tied to workforce readiness initiatives. • Business community needs to speak in a clear and unified voice about what is needed for educational investment. • Track the cost and quality of your training programs, distinguishing between career advancement, job specific and workforce readiness.

16. What Business Can Do • Offer direct training or funding with corporate dollars encouraging K-12, technical schools, and colleges to include workforce readiness curriculum for all students. • Coordinate initiatives between HR and community relations and corporate giving through partnerships with schools and colleges. Sponsor internships, mentorships, after-school programs, and other opportunities.

17. What Business Can Do • Make full use of publicly funded sources for workforce training • Leverage community relations and training investments to ensure that new entrants are prepared to succeed both before and after they are hired. • Use your corporate voice to focus public policy discussions on the need to link K-12, tech schools and colleges with workforce readiness skills.

18. Questions • Are we really in as bad a shape as the article leads us to believe? • If so, what are the ramifications • Examples of lack of preparedness • What must we do to address the situation? • Where are we in OK? How do we know?