Needs of the Workforce as a Driver in Higher Education November 1, 2006 Future Trends and Issues How is technology redefining our work? • Describe the 21st century • Describe the century • Describe the century • Describe the century “new secretary” for the “new teacher” for the 21st “new nurse” for the 21st “new manager” for the 21st Define What They Will Need Knowledge, ability to acquire new knowledge Technology usage and skills Specific skills Ability to work with others Global focus What factors will increase the likelihood that a business/industry will go under in 2010? • Demographic composition of the workforce • Aging and generational differences • ESL • Low basic skills • Low technology levels • Projected skilled labor shortage Major Issues for Hispanic Workers 1. 2. 3. 4. 5. Mismatch between workers’ skills and demands of US business. Need for right mix of services to prepare workers for 21st century career opportunities. Difficulties teachers face in helping Hispanic and LEP workers learn. High dropout rate among Hispanic and LEP workers. High workforce participation coupled with a basic lack of language and occupational skills. Source: Department of Labor Needs of the Workforce – Data cited in this presentation come from multiple sources: – Advantage Carolina Needs of the Workforce Study – Collected in 2000 and again in 2002 – The Competitive Workforce Alliance, The Workforce Network for the Charlotte Region – The US Department of Labor – The Georgia Department of Labor Availability of and Need for Workers by Type Type Somewhat to Very Available Some need to Great Need Low Skilled 69.8% 45.7% (such as laborers and dishwashers) Skilled 64.3% 86.1% (such as secretaries, computer technicians) Professional 64.5% (such as managers and nurses) 76.5% What Does the Job Outlook Data Say – Top Jobs Nationally Greatest Occupational Needs 2004 to 2014 Average Annual Replacement Need High Wage, High Growth Occupations Transportation and Materials Moving 2004-2014 1,877,000 Healthcare Service and Support Occupations 624,000 Installation, maintenance and repair occupations 618,000 Primary, Secondary and Special Ed Teachers 469,000 Healthcare Practitioners and Technical Occupation 317,000 Postsecondary Teachers 277,000 Sales Managers/Supervisors 260,000 Other education, training and library occupations 255,000 Other teachers and Instructors 253,000 Health Technologists and Technicians 214,000 National Job Outlook Data Greatest Occupational Needs 2004 to 2014 Average Annual Replacement Need High Wage, High Growth Occupations 2004-2014 Chief Executives 212,000 Counselors, social workers and social services 209,000 Automotive mechanics, installers and repairers 197,000 Carpenters 192,000 Financial Managers 192,000 Sales Reps, Wholesale and Manu 192,000 General and Operations Mgmt. 178,000 Registered Nurses 159,000 Sales Reps/Services 156,000 Business Operations Specialists 135,000 Top Industries in Georgia Industries with the Most Expected Annual Job Openings in Georgia Annual Openings Food Services and Drinking Places 23,300 Educational Services 19,660 Administrative and Support Services 16,380 Professional, Scientific and Technical Services 10,800 General Merchandise Stores 7,510 Specialty Trade Contractors 6,830 Self-employed and Unpaid Family Workers 6,740 Ambulatory Health Care Facilities 6,470 Hospitals 6,330 Merchant 'Wholesales, Durable Goods 5,970 Local Government 5,820 Summary: Change in Perception of Need In 1996, the need was for: • low-skilled workers (1st) • professional workers (2nd) • skilled workers (last) Today, the need is for: • skilled workers (1st) • professional workers (2nd) • low-skilled (last) Educational Needs Employers were asked • “thinking about employees your firm is likely to hire locally within the next five years, please indicate the highest completed education level future new hires will need to have.” high school degree or less certificate or diploma 2-year degree 4-year degree post-baccalaureate degree Educational Requirements of Current and Future Workforce Education Level substantial # of today’s workers have: substantial # of future workers will need: Less than HS degree HS degree only Certificate or diploma 2-year degree 4 year degree Post-bac. degree 10.6% 49.3% 14.7% 14.8% 43.1% 14.2% 7.2% 48.7% 26.3% 24.1% 49.5% 17.2% How Does This Compare with the Job Outlook Data Top 10 Jobs in Georgia – Associates Degree Registered Nurses Annual Openings 3,000 Computer Support Specialists 820 Paralegals and Legal Assistants 240 Respiratory Therapists 230 Medical and Clinical Lab Technicians 220 Medical Records & Health Information Technicians 220 Radiologic Technologies & Technicians 210 Dental Hygienists 200 Electrical and Electronic Engineering Technicians 120 Physical Therapists 100 Job Outlook Data Top 10 Jobs in Georgia – Some Vocational Training Automotive Service Technicians & Mechanics Annual Openings 1,010 LPNs & LVNs 950 Preschool Teachers 650 Real Estate Sales Agents 510 Hairdressers, Hairstylists & Cosmetologists 450 Fitness Trainers & Aerobic Instructors 370 Mechanics and Diesel Engine Specialists 350 Legal Secretaries 300 Emergency & Medical Technicians & Paramedics 260 Appraisers & Assessors of Real Estate 150 Mobile Heavy Equipment Mechanics 150 Surgical Technologists 150 President’s High Growth Job Training Initiative Occupations included are (1) projected to add substantial numbers of new jobs to the economy or affect the growth of other industries; or (2) are existing or emerging businesses being transformed by technology and innovation requiring new skills sets for workers. Areas include: Advanced Manufacturing Aerospace Automotive Biotechnology Construction Energy Financial Services Geospatial Technology Health Care Homeland Security Hospitality Information Technology Retail Transportation Summary: Change in Education Employers feel the need for education is increasing: • Fewer employees with HS degrees only (or less) will be needed in the future • More employees with certificates, diplomas, 2-year, 4-year and post baccalaureate degrees will be needed Education Level by Race in Georgia less than 9th grade White % White Black % Black Hispanic % Hispanic 220,533 3.9% 119,905 452,897 8.0% 2,925,956 % Other Other 6.2% 68,848 27.6% 52,759 13.7% 223,687 11.5% 7,331 2.9% 9,476 2.5% 51.4% 966,382 49.8% 103,453 41.4% 182,278 47.4% 920,512 16.2% 354,883 18.3% 33,614 13.5% 53,037 13.8% associate degrees 188,733 3.3% 68,260 3.5% 7,600 3.0% 12,747 3.3% bachelor's degrees 642,432 11.3% 142,979 7.4% 18,560 7.4% 44,462 11.6% 337,257 5.9% 63,580 3.3% 10,435 4.2% 29,468 7.7% 9th-12th, no diploma HS graduate 1-3 yrs of college grad or prof degrees Total 5,688,320 1,939,676 249,841 384,227 Changes from 1996 The 1996 survey indicated that 47.6% of employers indicated that their employees needed a high school degree Four year degrees were needed by 15.9% of employers Community college degrees were needed by 10.7% of employers Hiring Decisions Employers were asked to indicate how important the following areas were when making hiring decisions. Hiring Decisions Employers were asked to indicate how important the following areas were when making hiring decisions. Attitude and demeanor Communication skills Previous work experience Appearance/dress/grooming Demonstrated skills Longevity with previous employer Years of schooling completed 100% 98.4% 98.1% 97.2% 92.2% 89.1% 87.5% Hiring Decisions Employers were asked to indicate how important the following areas were when making hiring decisions. Recommendations from previous employers Professional/technical certifications Entry-level wage expectations Recommendations from other employees Scores on tests from interview Grades earned in school Military experience 86.9% 79.9% 79.9% 75% 62.8% 53.6% 21.9% Summary: What Influences the Hiring Decision Soft skills! • Attitude, demeanor and communication skills were at the top of the list • Right behind that was demonstrated skills and previous work experience Perceptions of Change in the Skill Level of the Workforce Over the Past Ten Years lower low-skilled workers 40% skilled workers 15.9% professional workers 11.6% recent HS graduates 38% same 52.4% 27.9% 31.7% 41.2% higher 7.7% 56.2% 56.7% 20.8% Perceptions of Change in the Work Ethic of the Workforce Over the Past Ten Years low-skilled workers Skilled workers Professional workers Recent HS graduates lower same higher 60.3% 49.4% 27.8% 68.1% 26.1% 38.4% 50% 26.4% 3.5% 12.2% 22.2% 5.5% Addressing the Major Issues Confronting Employers Hiring and Retaining Qualified Staff Hiring Practices in a Competitive Labor Market Competition in the Labor Force Issues of Training Obstacles to Recruiting and Retaining Qualified Employees competitive wages from other companies entry wage expectations commuting time and distance lack of affordable child care lack of transportation lack of affordable housing 84.4% 73.5% 58.9% 46.6% 37.4% 32.7% Summary: Major Issues in Hiring Competition from other companies was the highest ranked factor -- companies are hiring employees right out from under businesses with competitive wages and benefits Expectations - employees expect too much for entry level jobs -- they want to be rewarded with wages and benefits even if they bring nothing to the table Most Common Hiring Practices Used in a Competitive Labor Market casual dress codes recognition programs tuition reimbursement free parking vacation packages flextime 73.4% 69.4% 66.7% 61.4% 54.7% 51.7% Considering the competitive local labor market, to what extent is your company doing the following? doing more training once employees are hired using creative hiring practices leaving jobs unfilled advertising in different regions of the country hiring lower skilled employees hiring ESL employees using co-op and internship students 91.9% 81.7% 59.6% 56.4% 48.1% 44.9% 40.5% Perceived Factors Impacting the Training Needs of the Local Workforce competition with other companies technology specific to the industry technology changes growth in the knowledge base in the field low skills of new hires low skills of current workforce organizational structure/process change required continuing education cultural diversity of the workforce non-English speaking employees 85.4% 78.7% 76.6% 73.4% 70.6% 64.8% 64.7% 51.9% 45.0% 34.8% Summary: Contributions to Training Needs Remaining up-to-date to compete Workforce issues are rapidly changing: • technology • knowledge base in field is increasing • technologies specific to industries are increasing Training Needs More than 50% of Employers Perceived the Following List of Subjects to be Training Needs of Their Current Workforce Soft Skills teamwork ability interpersonal skills professionalism punctuality listening communication self-initiative perseverance attitude toward supervisors physical appearance Basic Job Skills learning new skills problem-solving reading phone skills writing basic arithmetic speaking/communication Soft Skills are an International Issue 1 Customer care Face to face contact, on the phone 2 Using the telephone Giving a clear message with all details, taking phone messages 3 Following instructions - written or verbal Following instructions in the right order; doing everything required 4 Taking messages From customers, other staff 5 Report writing Including accident reports, process reports, other documentation 6 Compliance with regulations eg. H&S Following written health and safety instructions 7 Estimation of numbers Rounding up and down, knowing when numbers are incorrect Source: Lifetime Training (English) www.lifetimetraining.com/skills-for-life/top-10-skills-for-life.php Skills for Life 8 Ordering/stock control Accurate counting, accurate record keeping 9 Time keeping Punctuality, accurate use of 12 and 24 hour clock 10 Finance/handling money Counting and accounting for money, giving change 11 Weights and measures Working accurately in metric systems, reading measurements 12 Flexibility of staff Willingness to train and work in different jobs 13 Staff turnover/recruitment Recruiting/keeping the right staff for the jobs you have 14 Absenteeism Avoiding work/training because of insecurity and lack of confidence 15 Meeting production targets/wastage Problems caused by skills deficits in staff Management Skills using time, money, materials, space and staff wisely decision-making leadership ability Technical Skills acquiring/using information performing technical tasks understanding graphs/charts computer literacy Diversity Skills working with diverse cultures English language skills Employers Considered the Need for Training in the Following Areas Would Significantly Increase Over the Next Five Years • • • • • • • • • • • • • acquiring/using information learning new skills problem-solving reading attitude toward supervisors decision-making performing technical tasks computer literacy working with diverse cultures physical appearance understanding graphs/charts basic arithmetic English language skills Top Computer Skills Needed by Employees Percent indicating some need to great need…. e-mail data base management spreadsheets word processing data entry desktop publishing 84.2% 83.3% 78.9% 75.9% 72.6% 53% Greatest Computer Skills Training Need Email • aging workforce • training not only on email use but on etiquette and ethics • spelling, grammar and language skills • truckers, machinists and plant workers now need to know email for communication Will your firm do training in the next few years? 7.5% % yes % no 92.5% Employers were asked…. If you said “yes”….. to what extent do you anticipate your company using the following sources for training? Sources of Training Employers Will Use in-house training private consulting firms two-year colleges four-year colleges/universities government resources union resources 98.7% 58.7% 39.7% 35.2% 24.5% 3% Methods Employers Plan to Use on-site training workshops, seminars or conferences one-on-one training traditional class room off-site training outside experts self-paced tutorials internet or on-line training distance education 94.5% 87.5% 87.3% 82.2% 71.1% 65.8% 58.6% 58.1% 30.6% Summary: Training Methods Businesses are still most interested in: • on-site, one-on-one training • or -- on-site traditional classroom style training • sending people to seminars and conferences They seem less interested in: • on-line training • distance education • self-paced training Employers were asked to list... the jobs that their company is having difficulty filling locally. the technical/job specific skills/needs their company is having difficulty recruiting. Technical/Job Specific Skills Needed (top 20) Computer Mechanical Customer service Data entry Communication Engineering Machine operation Welders Sales Electrical Cashiering Web design Telephone Filing AutoCAD Carpentry Managerial/organizational Maintenance/electrical & mechanical Accounting/bookkeeping Database management/design Difficult Jobs to Fill Locally (top 20) Customer Service Representatives Sales (associates/managers) Administrative Assistants Clerical Workers Project Managers Engineers Nurses (LPN&RN) Warehouse Employees Welders (qualified) IT Professionals Difficult Jobs to Fill Locally (top 20) Machine Operators Maintenance/Technical Workers Production Managers Receptionists Supervisors/managers Accountants Marketing Service Technicians Machinists Systems Analyst Researchers Split Out Six Identified Cluster Groups Cluster # respondents High Growth Manufacturing 77 Financial Services 41 Travel & Entertainment Services 39 Professional Services 38 Innovative Technology 21 Transportation 17 Need Versus Availability of Low Skilled Workers by Cluster 90% 80% 70% 60% 80.0% 77.1% 62.2% 58.8% 50% 40% 30% 20% 10% 0% 83.3% 78.9% 21.6% 21.5% 64.9% 64.9% 58.8% Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 0.0% % need % available Difference in Need Versus Availability of Low Skilled Workers Where need was low, availability was perceived as high (innovative technologies, financial services and professional services) Where the need was high, perception of availability was low (travel and entertainment) There was no true difference between need and availability in high growth manufacturing and transportation Need Versus Availability of Skilled Workers by Cluster 100% 95% 100.0% 95.1% 90% 89.5% 85% 80% 75% 70% 65% 60% 55% 50% 81.2% 85.7% 78.4% 76.6% Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter % need 71.1% 58.5% 57.9% 55.8% 52.9% % available Difference in Need Verses Availability in Skilled Workers by Cluster Availability was considered low and need high in five of six cluster (financial services, transportation, high growth manufacturing, professional services, and innovative technology) In travel and entertainment, the need was not much greater than the availability Need Versus Availability of Professional Workers by Cluster 100% 95% 90% 85% 80% 75% 70% 65% 95.2% 87.5% 80% 78.4% Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 76.2% 73.7% 73.7% 64.5% 64.70% 64.5% 60% 57.9% 55% 50.0% 50% % need % available Difference in Need Versus Availability of Professional Workers by Cluster Need was considered high and availability low in five clusters (financial services, transportation, professional services, innovative technology and travel and entertainment) Need and availability for professional workers was equal for high growth manufacturing Cluster Group Employers were asked: What percentage of your future workforce will need the following educational credentials: • high school degree or less • certificate, diploma or 2-year degree • 4-year degree or greater Percent of Future Workforce Needing a High School Degree or Less 80% 70% 73.3% 60% 65.3% 50% 40% 60% 46% 30% 20% 20.7% 10% 0% 0% percent Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter Percent of Future Workforce Needing a Certificate, Diploma or 2-Year Degree 40% 35% 38.5% 30% 35.3% 25% 20% 15% 10% 26.7% 22.6% 20.0% 17.2% 5% 0% percent Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter Percent of Future Workforce Needing a 4Year Degree or Greater 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 95% 75% 58% 50% 23.1% 11.8% percent Factors Driving Training by Cluster Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 95% 85% 75% 65% 55% Competition with companies Technology changes Specific technology to industry Factors Driving Training by Cluster 90% Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 80% 70% 60% 50% 40% growth in knowledge organization and process change low skills of new hires Factors Driving Training by Cluster Fin.Ser. Trans. HG Manu. Prof.Serv. Innov.Tech. Trav/Enter 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% low skills current workforce continuing ed diversity ESL Top Ten Training Needs - Financial Services % indicating somewhat to a great need Teamwork ability Professionalism Self-initiative Leadership ability Perseverance Listening Interpersonal skills Communication Phone skills Punctuality 92.7% 92.7% 92.5% 90.2% 90.0% 87.5% 87.2% 85.4% 85.0% 85.0% Top Ten Training Needs -Transportation % indicating somewhat to a great need Writing Teamwork ability Phone skills Professionalism Self-initiative Communication Listening Problem-solving Learning new skills Acquiring/using info Performing technical tasks 95.1% 94.1% 94.1% 94.1% 94.1% 94.1% 94.1% 94.1% 94.1% 94.1% 94.1% Top Ten Training Needs - High Growth Manufacturing % indicating somewhat to a great need Teamwork Ability Self-initiative Attitude toward supervisor Communication Interpersonal Skills Listening Leadership ability Perseverance Acquiring/using information Punctuality 98.7% 96.1% 94.7% 93.3% 92.1% 92.0% 90.8% 90.8% 90.7% 89.6% Top Ten Training Needs Professional Services % indicating somewhat to a great need Performing technical tasks Leadership ability Acquiring/using information Computer literacy Teamwork ability Listening Self-initiative Perseverance Interpersonal skills Using time, money, materials, space and staff wisely 81.1% 78.9% 78.9% 78.9% 76.3% 76.3% 76.3% 76.3% 75.7% 73.7% Top Ten Training Needs - Innovative Technologies % indicating somewhat to a great need Teamwork ability Communication Leadership ability Interpersonal skills Working with diverse cultures and people Listening Phone skills Acquiring/using information Problem-solving Decision-making 81% 76.7% 76.2% 71.4% 71.4% 61.9% 61.9% 61.9% 60% 60% Top Ten Training Needs - Travel and Entertainment Services % indicating somewhat to a great need Communication Interpersonal skills Listening Teamwork ability Professionalism Self-initiative Punctuality Perseverance Problem-solving Decision-making 100.0% 100.0% 97.4% 94.9% 94.9% 94.9% 94.9% 94.9% 94.9% 94.9% Conclusions Employers have high need for skilled and professional workers Employers are experiencing a high degree of competitiveness Employers are looking for educated employees with the need for education increasing over the next five years Conclusions Employers felt that while skill levels had increased in some areas, work ethic had decreased over the past ten years. Employers will be doing their own training over the next few years. Greatest training needs are for soft skills. Employers are finding it more difficult to hire qualified workers How Can Business/Industry Support Education Participate in: • Education and training advisory committees • Curriculum development processes for public education • Internship programs • Job shadowing programs • Mentoring programs • Service learning opportunities How Can Education Support the Changing Needs of Business/Industry Equip students with skills and attitudes for economic and civic success. Create a system to promote career awareness. Build partnerships Incorporate school and work-based learning to help youth make sound career decisions. Help under-prepared students gain important basic skills. Other Educational Needs High End Professional Development Alternative Teaching Methodologies Alternative Careers for Baby Boomers Soft Skills Training and Workshops ESL and Basic Skills on Site in Businesses Education that Follows Trends For a Copy of This Presentation Go to: http://www.cpcc.edu/planning Click on “studies and reports” Title: GTCS Workforce Presentation Terri Manning terri.manning@cpcc.edu