9/12/11
AN INTEGRATED TALENT SYSTEM FOR WEST MICHIGAN
Executive Summary
TALENT 2025’s vision for West Michigan is to be recognized globally as a top
20 region in the U.S. where entrepreneurship thrives, and employers want to
locate, because diverse talent want to work, learn, and live here.
Today, West Michigan ranks 16th in a group of 27 peer regions for percent of the population over age 25
with an Associate’s or Bachelor’s degree or more. Student performance falls dramatically between the
third and sixth grade and does not recover. Too many students are leaving high school without being
college ready. More than 60% of the students enrolled at two-year colleges, and 20 to 30% at four-year
colleges, take remedial courses. The approaching retirement of the baby boomers will create demand
that will outpace the supply of skilled workers. And employers in every industry face persistent talent
shortages.
The state of West Michigan’s talent supply requires employers to work together to be strong and
consistent in defining the workforce needs of the future to drive systemic change.
In response, TALENT 2025, a CEO-led approach covering 13 West Michigan counties, was formed in 2009
to increase the region’s skilled, credentialed workforce. TALENT 2025 is a process that illuminates
performance gaps, evaluates solutions and advocates for leading practices to improve the talent
development system. Pairs of CEOs take a leadership role and act as an accountability partner in each
segment of the talent supply chain. They convene working groups to facilitate collaboration and broker
relationships to establish a shared commitment by employers, educators and stakeholders to drive
improvement in key performance measures.
Only when employers assume full accountability for the talent supply chain and require outcomes that
align with business and economic needs of the region, will the system begin to move in a direction of
sustainability. This process will improve West Michigan’s economic competitiveness, enhance the
quality of life in West Michigan and serve as a model for other regions of the state.
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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Background
Not so long ago, whether you finished high school or not, you could get hired at the local
manufacturing plant and that job provided a middle-class lifestyle until you retired. It’s a
different world now. Since 2001, the U.S. has lost more than two million manufacturing jobs.
Michigan has lost nearly 900,000 jobs—many of these were high-paying jobs that required
minimal skills. Though there has been some improvement in the economy and new jobs have
been created, the skill set required for employment has changed. A 2007 report from the
Council on Competitiveness says, “In 1950, 80% of U.S. jobs were classified as “unskilled,” while
today an estimated 85% of jobs are classified as “skilled”—requiring training beyond high
school.”
Talent has become the primary driver for regional economic prosperity. According to the Lumina
Foundation, by 2025 a globally competitive workforce will require at least 60% of its employees
to have a post-secondary credential—either a technical certificate, a two-year Associate’s
degree, a Bachelor’s degree or more. And every percentage increase in educational attainment
results in a $763 increase in per capita income.
These national statistics show that there is a strong correlation between educational level and
median earnings.
Top performing regions in the U.S. are setting 80% educational attainment goals, while only
34.1% of West Michigan’s working-age adults have a post-secondary education credential and
only 25.7% have a four-year degree or more. West Michigan employers in every sector are
experiencing shortages in qualified talent. Clearly, innovative strategies are needed to improve
levels of educational attainment to meet the workforce needs of employers to sustain a
prosperous region.
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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The Demand for Talent with 21st Century Skills
A diverse and talented workforce is an essential component of a thriving economy. The model of
setting up an industrial park and courting a company with land and infrastructure is no longer
effective. Global competition drives companies to locate where they have an abundance of
skilled workers. For West Michigan, this means a mix of credentials including certificates, twoyear, four-year and advanced degrees that meet the needs of the region’s diverse employer
base and attracts new, growing business sectors of the global economy.
Whether it is in manufacturing or information technology, the skill requirements for
employment have become more sophisticated. West Michigan’s talent shortages range from
engineers and supply chain managers to welders and CNC operators. Individuals need
credentials and the 21st century skills: understanding how to locate and use information, critical
thinking, communication, collaboration, creativity and the capacity to keep learning for life.
TALENT 2025’s examination of West Michigan’s future demand and supply of talent conducted
by the Upjohn Institute for Employment Research in 2010 identified characteristics of and
challenges for the West Michigan workforce. Findings from the report show:
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West Michigan is lagging behind peer regions in educational attainment. At 25.7%, it
ranks 16th out of 27 peer regions.
Student performance in West Michigan falls dramatically between the third and sixth
grade and does not recover.
Only about 77.6% of West Michigan’s students graduate from high school, compared to
nearly 90% of students in the top-performing areas in the state.
Too many students are leaving high school without being college ready. More than 60%
of the students enrolled at two-year colleges, and 20 to 30% at four-year colleges, take
remedial courses.
Too many community college students are dropping out.
Approaching retirement of the baby boomers will create demand that will outpace the
supply of skilled workers.
Nationally, occupations requiring an Associate’s degree are expected to grow by 19.1%
between 2008 and 2018.
In West Michigan, the growth of occupations requiring a master’s degree or higher is
expected to grow at 16.4%. This includes occupations such as scientists, business
executives, physicians, professors and engineers.
Without intervention, these demographic shifts, changes in skillsets needed by employers and
underperformance of the region’s education system across all segments paint a bleak forecast.
The existing workforce will not be employable. There will be few workers qualified to meet
future needs of existing business. Emerging industries will locate in other regions where
educational attainment is greater. And business in West Michigan will find it increasingly
difficult to maintain their operations in West Michigan.
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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West Michigan is Well-Positioned to Meet the Challenge
Regions are the competitive building blocks of the global economy. In the late 1990s, West
Michigan began to cultivate a regional mindset. In response to global competition, threats to
quality of life and shrinking resources in the region, leaders from around West Michigan came
together to develop a shared vision for the future. Out of this work the West Michigan Strategic
Alliance was formed and the call to “think regionally” began. Since that time, there has been a
conscious shift to partner and work together across sectors and jurisdictional boundaries. West
Michigan is nationally recognized for its willingness to work together to address regional
challenges.
Because of this early foundational work, in 2006 the region was awarded a three-year, $15
million Workforce Innovation in Regional Economic Development or WIRED grant from the U.S.
Department of Labor.
The work of WIRED to assess and address workforce issues led to the creation of TALENT 2025.
A Systemic Approach
For generations our process of education relied on educators to push students from
kindergarten to high school graduation and on to college with limited resources for counseling
to align student aptitude with a career opportunity or sufficient information for students and
educators to meet the workforce needs of employers.
EDUCATION’S “PUSH” SYSTEM
TALENT 2025 believes there is more to developing talent than graduation rates. Education,
public policy, place and economic development all contribute to a talent development system
that nurtures West Michigan’s native talent and enhances its ability to attract and retain talent.
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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TALENT SYSTEM
TALENT 2025’s emphasis is education and workforce development, when opportunities arise,
TALENT 2025 will explore strategies related to economic development, public policy and quality
of place that can contribute to a more successful talent system.
Talent development must become more certain, uniform and predictable. The economic model
of talent management will be viewed increasingly as a supply and demand model. Employers
need to develop a robust capacity for talent supply chain management to drive improvement in
the talent development system. Educators and workforce development professionals can
reexamine their roles in terms of supporting self-directed learning to build skills that are in
demand. Rather than relying on the “push” system, talent will be pulled forward through the
supply chain by employers with an emphasis on developing a career pathway and amassing a
portfolio from middle school to retirement.
Employers as Catalysts for Systemic Change
In response to the demand for talent, business leaders across West Michigan came together in
2009 to form TALENT 2025. This CEO-led effort is designed to dramatically improve the quality
and quantity of the region’s talent pool to meet the increasingly more complex and diverse
workforce needs of the region’s employers.
TALENT 2025 is supported by more than 60 business leaders representing over 75,000
employees and every business sector stretching across 13 West Michigan Counties (Allegan,
Barry, Ionia, Kent, Lake, Mason, Montcalm, Muskegon, Newaygo, Mecosta, Oceana, Osceola and
Ottawa). These business leaders are working to assess the workforce needs of the region’s
current employers and to update and integrate the region’s talent development system to
ensure a supply of skilled talent that equals the demand and supports business attraction efforts
of economic developers.
TALENT 2025 is not a program it is a process. It is designed to be the catalyst for development of
an integrated talent system. TALENT 2025 is fundamentally different than similar efforts across
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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the country. Membership is representative of employers in the region and is restricted to the
president or CEO of an employer. In the spirit of servant leadership, members are encouraged to
convene segments of the system to understand the challenges and to encourage cooperation
across the region to achieve a shared vision for a globally competitive workforce. This shifts the
thinking from “They need to fix the schools and workforce system” to “We are working together
to improve our talent supply chain.”
Pairs of CEOs engage in one or more working groups and act as an accountability partner with
stakeholders to illuminate performance gaps, evaluate solutions and advocate for leading
practices to improve the talent system. Initial working groups are:
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Early Childhood Development – replication of successful community-based
programs across the region
K-12 Education – identify and advocate for leading practices
Post-Secondary Education – advocate for strategies that improve college readiness,
access and persistence; encourage adult learners to pursue a post-secondary
education credential; encourage internships as a region-wide strategy
Adult Workforce Development – expand the use of National Career Readiness
Certificate and other strategies to dramatically increase the credentials of those
unemployed, underemployed and under skilled
Talent Demand - provide a five-year running forecast of employer talent needs
Working with educators and stakeholders, TALENT 2025 is establishing metrics to measure the
impact of implementing leading practices in the region. A draft of these metrics is included as
Appendix A.
Call to Action
In our shrinking world, with its volatile economic climate, employers, educators, non-profit
organizations and policy makers must work together to implement leading practices to position
West Michigan as a magnet for 21st century skilled workers. Thanks to the region’s collaborative
nature and the economic imperative, the seeds of a systematic and sustainable talent system
exist, but we are already behind many other places in the country. While we seek to boost
educational attainment across West Michigan to 60%, leading communities across the country
are already close to this mark and have even loftier goals.
The time has come for:
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Employers to drive change related to talent development within their organizations and
across industries by establishing a real-time talent demand forecast.
Companies to create a culture of lifelong learning and help their employees build
awareness of the important role parents, guardians and caregivers have in children’s
education.
Industry sectors to work together to develop and publish detailed and precise talent
requirements for workers in the next 3-5 years.
The education system to dramatically increase outcomes at every stage of the system.
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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Workforce development partners and the educational system to align outcomes with
talent demand.
Non-profits dedicated to implementing leading practices, improving educational
outcomes and workforce development to see how their work fits in a bigger picture and
implement leading practices.
All stakeholders to support the need for building 21st century skills in order to get and
sustain employment.
If we take action together we can expect:
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Graduating students and skilled adult workers who are qualified for employment in the
region.
Retention of the region’s best asset – its young people.
More competitive employers.
Increased job growth.
Increased quality of life for West Michigan residents.
TALENT 2025 is a catalyst to create a truly integrated talent supply chain designed to make West
Michigan a magnet for both talent and jobs. With TALENT 2025’s leadership, regional
collaboration among all stakeholders in the talent supply chain will ensure that our region is
globally competitive with a greater quality of life for everyone.
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Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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Appendix A
TALENT 2025 Dashboard
Results of the leading practices implemented in the region will be measured using the following
metrics:
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Early Childhood Development (a measure for assessing school readiness does not exist)
o % of children enrolled in pre-school
o % of childcare centers accredited by the National Association for the Education of
Children
o % of kindergarten students with moderate to serious difficulty following directions
o % of children recognizing basic shapes at kindergarten entry
K-12 Education
o Third grade Reading Proficiency
o Sixth grade students proficient in Math and Reading
o High School Graduation Rate
o Percentage of students who have gone through career coaching, have a National
Career Readiness Certificate and have a career portfolio
College Readiness
o Percentage of 8th and 9th grade students who are exploring a post-secondary
education
o Percentage of 10th grade students with plans for a post-secondary education
o ACT Composite Score of 11th and 12 grade students
Post-Secondary Education
o Four-Year Graduation Rate
o Retention Rate (First to second year)
o Percentage of college students who are the first generation in their family to pursue
a post-secondary education
Internships & Talent Attraction
o Employers offering internships
o % of college age students participating in an internship in West Michigan
o Retention rate of talent recruited to West Michigan
Adult Workforce
o Percentage of adults 25 years or older with at least a certificate or two-year degree
o Percentage of adults 25 years or older with at least a four-year degree
o Percentage of employees with an NCRC credential
Globally Competitive Workforce Metrics
o Unemployment rate
o Per capita income
Address: 951 Wealthy St. SE, Grand Rapids, MI 49506
Phone: (616) 622-4467
email: k.stotts@TALENT2025.org
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