Virginia Workforce Development Challenges and Solutions

Transcription

1 Virginia Workforce Development Challenges and Solutions White Paper by Virginia Small Business Partnership and SNVC, L.C. ABOUT THIS WHITE PAPER In September 2011, the Virginia Workforce Development Summit was held at the Mason Inn at George Mason University. Members of both the public and private sectors attended the Summit to address issues pertaining to economic growth and the role small business plays in that growth. Tom DeWitt co-moderated the panel on Workforce Preparedness. This is the result. CONTENTS Problems & Challenges...2 Proposed Solutions Attending Higher Education Institutions Not Always the Answer Teaching Soft Skills Retraining our Existing Workforce...6 Recommendations...7 Conclusion...9 Virginia Small Business Partnership Jones Street Suite 101-A Fairfax, VA SNVC, L.C Monument Drive Suite 510 Fairfax, VA

2 EXECUTIVE SUMMARY Since 1980, we have seen a growing dependence on technology across all industries and within all organizations to accomplish their missions. Simultaneously, we have watched jobs in the manufacturing sector decline. This has significantly changed our business workforce requirements as the demand for high-skilled jobs has increased while manufacturing jobs have diminished. This growth and decline has changed the small business landscape from one where repetitive processes produced a quality output to one where the success of business is tied to a technology-skilled workforce that can apply that technology to meet the demands of their market. These new skills are complex and constantly changing. While our dependence on technology has created jobs, the rapid loss of our manufacturing base has created a skills and education gap. This gap also includes the need for soft skills, such as leadership, critical thinking, people skills and cognitive thinking. While tests exist today to identify students and their aptitudes for learning, little exists to teach or evaluate those values associated with working with others, leadership and personal accountability. If our workforce understands the technology but is unable to be effective employees as part of an organization or apply what they know, then our Commonwealth will have the smartest unemployment line in the nation. AUTHORS Virginia Small Business Partnership Workforce Preparedness Committee Co-Chaired by Tom DeWitt and Brett Vassey SNVC, L.C. Tom DeWitt, President/CEO Beth Miller-Herholtz, Senior VP/Strategic Development Ellen Hembree, Project Coordinator 2

3 Problems and Challenges Facing Virginia and Small Business According to the U.S. Business Council, 57% of member CEOs report education and workforce preparedness as either their very important or most important policy issue. Additionally, 73% of those CEOs report difficulty finding qualified workers in the U.S. In the Commonwealth, according to the Virginia Skilled Trades Gap Analysis of 2007, companies reported that 48% of their entry-level new hires over the previous three-year period had poor/very poor measurable skills. One hundred percent of the 2010 and 2011 Virginia Small Business Summit s Workforce Group agreed that critical thinking and work readiness skills are needed in the workforce and the public system of education must produce better results. TOP THREE CHALLENGES 1. Aligning education with the needs of business 2. Preparing our workforce (i.e., certified skills) 3. Teaching soft skills (e.g., critical thinking skills) Each of these challenges requires us to think differently about our existing systems and conditions that lead to employment and economic growth. To loosely paraphrase Albert Einstein, we cannot solve these challenges with the same thinking that created them. We cannot solve these challenges with the same thinking that created them. 3

4 Change the Paradigm A new paradigm for education will change this situation. This new way of thinking addresses each component of our education process, starting with K-12 and continuing into our higher education system. This new way better aligns our education and teaching with those skills needed by businesses. Absent a new partnership between academia and business that aligns their mutual purposes, we will produce graduates without skills, direction or hope in achieving the American Dream. The major goal of our education institutions should be to prepare our graduates to enter the workforce as opposed to making the end goal merely to produce graduates. Focusing our education direction on the workforce accomplishes a clear need of the Commonwealth fill jobs with qualified candidates ultimately leading to a sustained and growing economy. The second goal of achieving an education assumes that with a degree, graduates will automatically be employable. This could be no further from the truth today, as nearly 225,000 college graduates nationwide are unemployed and owe nearly 1 Trillion dollars in college loans. The debt for college loans now surpasses credit card debt. In this economy, there is little hope for these graduates to pay these loans back unless we take action. What is meant by changing the paradigm? We have created a culture that believes the best way to a successful future is to go to college and obtain at least a four-year degree. We have used a college degree as a way to define success. As a culture, we don t use professional certification as part of our dialogue around success. Gone are the days of aspiring to be technical tradesmen. What if we guided our children from kindergarten on to think in terms of technical certifications instead? How would that impact parents and educators who guide our future workforce? What impact would that have on the investments to secure the essential skills needed to succeed in tomorrow s economy? PROPOSED SOLUTIONS 1. Attending Higher Education Institutions Not Always the Answer 2. Teaching Soft Skills 3. Retraining our Existing Workforce The major goal of our education institutions should be to prepare our graduates to enter the workforce as opposed to making the end goal merely to produce graduates. 4

5 1. PROPOSED SOLUTION Attending Higher Education Institutions Not Always the Answer Part of this new paradigm changes the way Virginia s workforce can be better equipped to serve small businesses. This change refutes the idea that college is the only pathway to success. Studies clearly show that students earning a STEM degree (or others in demand) will earn more over their lifetime than those who do not have one. But this assumes that all degreed graduates will be able to find a job in a market that is increasingly placing more value on certified skills and professional certifications over the bachelor s degree. Harvard Business School released a study in February 2011 that asserts that for all jobs created between 2008 and 2018, 27% of people with post-secondary licenses or certificates will earn more than the average bachelor s degree recipient. Certified Professionals representing one of many career fields, including: engineering, technology, healthcare, accounting and finance, construction, legal, and law enforcement are the new labor market of this century. Presently, our market has more degreed graduates than jobs, and more jobs than technically certified employees. While the economy is clearly the reason for a high unemployment rate, our nation currently has jobs that cannot be filled. This equates to lowering Virginia s unemployment in urban areas by a total of one percentage point, as cited in a recent study by the Brookings Institute. This is yet another reason for us to act now. Why is Higher Education not always the answer? Our economy is changing. The Information Age is now that of Big Data. The country s infrastructure is aging. Our population is aging. These are just three examples of a workforce that needs technical certifications that focus more on how to apply knowledge immediately to challenges at hand. Yes, advanced degrees are valuable to each of these industries. However, the majority of these workforces need technical skills that can be acquired over less time and with fewer dollars than by attending a four-year institution. The 2010 Project on Student Debt study revealed a national average of $25,250, which, according to a separate study, is nearly the median starting salary for entry-level positions. Consider the possibility of using a technical certification to land an entry-level positon the financial impact is huge, enabling the young workforce to thrive more quickly in today s economy since they would be less buried in debt. 5

6 2. PROPOSED SOLUTION Teaching Soft Skills Another key element of this new paradigm includes preparing our youth to one day become productive citizens and members of the workforce. This occurs through teaching critical thinking, cognitive reasoning and people skills as well as leadership. A study published by Child Trends in 2008 shows that career planning, decisionmaking, listening skills, integrity and creativity are all considered vital to entering the workplace, but are not part of college readiness. This study also reports that by placing more emphasis on spiritual development, including a sense of purpose, and developing a positive identity and healthy habits, then students are better equipped to become productive citizens and succeed in our economic future. This early emphasis, which begins in elementary school, provides the foundation for all students... This early emphasis, which begins in elementary school, provides the foundation for all students, whether they choose to go directly into a technical certificate program or on to higher education after high school. What are Soft Skills? Critical thinking. Decision-making. Listening. Integrity. Leadership. These are examples of soft skills that have generally been overlooked in our education system. Yet they are considered vital by business leaders around the world. We have many instances where the lack of integrity behind executive-level decisions has resulted in economic catastrophe. We know that when we interact with the customer-facing unit of a company only to have our concerns dismissed or continue to go unheard, we tend to take our business elsewhere. Instilling these traits at the earliest levels of education has been projected to have significant positive outcomes on our future workforce and how it will not only lead but also adapt to and succeed in our changing economy. 6

7 3. PROPOSED SOLUTION Retraining our Existing Workforce Likewise, employers are finding similar challenges that pertain to the lack of soft and hard skills with our existing workforce as well as our future pipeline of employees. While building a new workforce starting in the earlier years is important to our future, we must also deal with the issues facing our small businesses today. In this case, resources in the Commonwealth are available that are aligned to achieve this objective, but awareness of those resources and a personal plan of action do not exist. Websites are not sufficient for providing information and many times lead to confusion instead of clarity or worse, provide information but not a clear path towards a solution. Connecting resources with those in need must be a priority for this administration. How Does a Small Business Retool its Workforce? It is a widely shared belief that small businesses provide the economic growth we need to propel the country forward. Innovation and critical thinking go hand in hand, so inspiring a workforce to think creatively is vital. Small businesses have great ideas, but often don t have great financial resources to fund these ideas so that they create new revenue streams, which ultimately produce new jobs. Public-private partnerships are instrumental to this particular aspect of industry. Alignment with academia can help influence curriculum that is more in sync with industry s needs. Partnerships with certification firms can also build programs that use vouchers to control costs while targeting specific skills. 7

8 Recommendations Overall Campaign. The time is now for an active, very public campaign that tells parents, students, faculty and administrative support staff, as well as our leaders, what types of skills employers seek, the jobs and certificate programs available to workers, and a roadmap for achieving their success. This campaign could be funded via private-public partnerships since the Commonwealth and business both benefit when jobs are created and filled by a qualified workforce. Soft Skills. Soft skill education must begin where early development of social behavior and attitudes form and be reinforced throughout our lives in one form or another. One such program in existence today is Stephen Covey s 7 Habits of Highly Effective People. This program teaches people of all ages, seven habits to adapt in their lives that will lead to success. The program teaches students to evolve as a person and to learn to work with others. The Covey program has clear success metrics that show that students in grades 6-12 not only understand the concepts, but are able to apply them in their daily lives to get results. Results vary from better studying behavior to increased cooperation among students. It is our recommendation that this program be evaluated by the Commonwealth for applicability in our education system, and tailored where required to meet our needs. SNVC Institute. One such solution is the SNVC Institute for Leadership Values at Longwood University. The Institute s mission is to teach the Covey Signature Course (Seven Habits) to organizations looking to transform their culture into one that is value based. The relationship with Covey could be expanded to include certifying high school teachers and administrators or having the faculty of the institute teach the courses at the local level. The Institute is currently working to partner with a member of industry who can teach professional skills at the Institute leading to professional certifications that businesses require. RECOMMENDATION HIGHLIGHTS Overall campaign to increase awareness of the resources in the Commonwealth Teach soft skills in our education system Provide a comprehensive approach to solving soft skill and technical certifications that addresses K-12 and higher education graduates SNVC Institute for Leadership and Innovation Recognize success for achieving Commonwealth objectives while encouraging public-private partnerships The Governor s Award The Institute is also seeking to gain elective credit for the courses taught. If this occurs, college students will be able to graduate with a recognized Certificate in Leadership, a recognized Certificate in a Professional skill, all of which contributes to their overall effort to earn their degree. The Institute s strategy is not to change the existing curriculum of Longwood University, but rather to add to it the skills sought by employers in addition to their degree. This would be a great pilot in the Commonwealth to test our approach. The Institute provides a holistic approach that will result in higher placement rates for graduates, continuing education for working adults and transformation at the K-12 level. Covey is structured for all levels from 4th grade though adulthood. Recognize Success The Governor s Award. All leaders understand that without recognizing outstanding performance, they do not get the best out of those 8

9 they lead. Many times, people perform outstanding work for nothing more than an affirmation by those they serve. Napoleon understood this. He knew he could not pay everyone for their performance (the French treasury was not unlimited), yet he expected the most from those he led. To get that, he provided awards and medals a much cheaper but also motivating alternative. Much like the conditions of 19th-century France, we know we do not have unlimited funding. As such, we understand that the Governor cannot provide funding for every college or university in Virginia nor support K-12 where all needs exist. However, we do believe that those schools and businesses that are supporting the Commonwealth s objectives should be recognized and their best practices made available to others, and as such, we recommend that a series of Governor s awards and incentives be created. First and foremost for any awards created, standards must exist to align with the Commonwealth s objectives. We offer up the following suggestions: Higher Education Placement Rates. Colleges and universities could receive additional funding or approval of special projects when achieving graduate placement rates in the workforce, which focuses more on their end product the skilled graduate who is work ready at day one and less on the education process. Leadership Programs. This same model could be adapted for K-12 to recognize schools that have programs like Stephen Covey s 7 Habits and special camps for leadership, and offer tech skill certifications. Role of Private Sector. Businesses could be recognized for providing the funding and support for local schools and universities to pay for these programs, as well as hiring candidates with certifications. The Department of Business Assistance s proven program provides training dollars for new hires in Virginia; it could be expanded and modified to support this initiative. 9

10 Conclusion As leaders in the small business community, the Virginia Small Business Partnership believes that the time to act is now. At SNVC, we believe we have a responsibility to lead and offer up our ideas, which is why we belong to this Partnership. Our economy is at a tipping point. We believe that the problems and challenges that have been outlined here can be solved using the proposed actions that have been set forth. We know that these problems did not arise overnight. We know that it will take time to positively affect our economy and bring about change, which means we cannot afford to wait. We stand ready to join our legislative leaders in acknowledging our social responsibility to lead and inspire the new thinking needed to positively compete in today s economic climate as well as that of tomorrow. 10