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Needs of the Workforce as a Driver in Higher Education

November 1, 2006. Needs of the Workforce as a Driver in Higher Education. Future Trends and Issues. How is technology redefining our work? Describe the “new secretary” for the 21 st century Describe the “new teacher” for the 21 st century Describe the “new nurse” for the 21 st century

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Needs of the Workforce as a Driver in Higher Education

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  1. November 1, 2006 Needs of the Workforce as a Driver in Higher Education

  2. Future Trends and Issues • How is technology redefining our work? • Describe the “new secretary” for the 21st century • Describe the “new teacher” for the 21st century • Describe the “new nurse” for the 21st century • Describe the “new manager” for the 21st century

  3. Define What They Will Need • Knowledge, ability to acquire new knowledge • Technology usage and skills • Specific skills • Ability to work with others • Global focus

  4. 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

  5. Major Issues for Hispanic Workers • 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

  6. 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

  7. Availability of and Need for Workers by Type • Somewhat to Some need to • Type Very Available 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% 76.5% (such as managers and nurses)

  8. What Does the Job Outlook Data Say – Top Jobs Nationally

  9. National Job Outlook Data

  10. Top Industries in Georgia

  11. 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)

  12. 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

  13. Educational Requirements of Current and Future Workforce substantial # of substantial # today’s workers of future Education Level have: workers will need: Less than HS degree 10.6% 7.2% HS degree only 49.3% 48.7% Certificate or diploma 14.7% 26.3% 2-year degree 14.8% 24.1% 4 year degree 43.1% 49.5% Post-bac. degree 14.2% 17.2%

  14. How Does This Compare with the Job Outlook Data

  15. Job Outlook Data

  16. 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 ManufacturingGeospatial Technology AerospaceHealth Care AutomotiveHomeland Security BiotechnologyHospitality ConstructionInformation Technology EnergyRetail Financial ServicesTransportation

  17. 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

  18. 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

  19. Hiring Decisions • Employers were asked to indicate how important the following areas were when making hiring decisions.

  20. Hiring Decisions Employers were asked to indicate how important the following areas were when making hiring decisions. Attitude and demeanor 100% Communication skills 98.4% Previous work experience 98.1% Appearance/dress/grooming 97.2% Demonstrated skills 92.2% Longevity with previous employer 89.1% Years of schooling completed 87.5%

  21. Hiring Decisions Employers were asked to indicate how important the following areas were when making hiring decisions. • Recommendations from previous employers 86.9% • Professional/technical certifications 79.9% • Entry-level wage expectations 79.9% • Recommendations from other employees 75% • Scores on tests from interview 62.8% • Grades earned in school 53.6% • Military experience 21.9%

  22. 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

  23. Perceptions of Change in the Skill Level of the Workforce Over the Past Ten Years lower same higher low-skilled workers 40% 52.4% 7.7% skilled workers 15.9% 27.9% 56.2% professional workers 11.6% 31.7% 56.7% recent HS graduates 38% 41.2% 20.8%

  24. Perceptions of Change in the Work Ethic of the Workforce Over the Past Ten Years lower same higher low-skilled workers 60.3% 26.1% 3.5% Skilled workers 49.4% 38.4% 12.2% Professional workers 27.8% 50% 22.2% Recent HS graduates 68.1% 26.4% 5.5%

  25. 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

  26. Obstacles to Recruiting and Retaining Qualified Employees competitive wages from other companies 84.4% entry wage expectations 73.5% commuting time and distance 58.9% lack of affordable child care 46.6% lack of transportation 37.4% lack of affordable housing 32.7%

  27. 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

  28. Most Common Hiring Practices Used in a Competitive Labor Market • casual dress codes 73.4% • recognition programs 69.4% • tuition reimbursement 66.7% • free parking 61.4% • vacation packages 54.7% • flextime 51.7%

  29. Considering the competitive local labor market, to what extent is your company doing the following? • doing more training once employees are hired 91.9% • using creative hiring practices 81.7% • leaving jobs unfilled 59.6% • advertising in different regions of the country 56.4% • hiring lower skilled employees 48.1% • hiring ESL employees 44.9% • using co-op and internship students 40.5%

  30. Perceived Factors Impacting the Training Needs of the Local Workforce • competition with other companies 85.4% • technology specific to the industry 78.7% • technology changes 76.6% • growth in the knowledge base in the field 73.4% • low skills of new hires 70.6% • low skills of current workforce 64.8% • organizational structure/process change 64.7% • required continuing education 51.9% • cultural diversity of the workforce 45.0% • non-English speaking employees 34.8%

  31. 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

  32. More than 50% of Employers Perceived the Following List of Subjects to be Training Needs of Their Current Workforce Training Needs

  33. Soft Skills teamwork ability communication interpersonal skills self-initiative professionalism perseverance punctuality attitude toward supervisors listening physical appearance Basic Job Skills learning new skills problem-solving reading phone skills writing basic arithmetic speaking/communication

  34. Soft Skills are an International Issue Source: Lifetime Training (English) www.lifetimetraining.com/skills-for-life/top-10-skills-for-life.php

  35. Skills for Life

  36. 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

  37. Employers Considered the Need for Training in the Following Areas Would Significantly Increase Over the Next Five Years

  38. 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

  39. Top Computer Skills Needed by Employees Percent indicating some need to great need…. • e-mail 84.2% • data base management 83.3% • spreadsheets 78.9% • word processing 75.9% • data entry 72.6% • desktop publishing 53%

  40. 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

  41. Will your firm do training in the next few years?

  42. Employers were asked…. • If you said “yes”….. to what extent do you anticipate your company using the following sources for training?

  43. Sources of Training Employers Will Use in-house training 98.7% private consulting firms 58.7% two-year colleges 39.7% four-year colleges/universities 35.2% government resources 24.5% union resources 3%

  44. Methods Employers Plan to Use on-site training 94.5% workshops, seminars or conferences 87.5% one-on-one training 87.3% traditional class room 82.2% off-site training 71.1% outside experts 65.8% self-paced tutorials 58.6% internet or on-line training 58.1% distance education 30.6%

  45. 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

  46. 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.

  47. 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

  48. 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

  49. Difficult Jobs to Fill Locally (top 20) Machine Operators Maintenance/Technical Workers Production Managers Receptionists Supervisors/managers Accountants Marketing Service Technicians Machinists Systems Analyst

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