ProMat Keynote: Building the Workforce of the Future
By Mary O'Hara Smith, IEN Staff
January 21, 2009 -- ACT, the college testing program, has used its 2008 data to generate state-specific results correlating students’ career interests with their readiness for college as indicated by test performance. Data are available for each state in which 25% or more of the 2008 graduates were ACT-tested.
Take Illinois, for example: career fields with the highest growth potential include education, management, computer specialties, marketing and sales, and community services. Of the 87,718 high school graduates tested, some interest was expressed in those career fields, though not enough to meet anticipated demand. Among the interested students, nearly 2/3 are ready for college-level English; less than half are ready for college-level math and science.
“The lower levels of preparation among graduating high school students is alarming, given the high demand for science- and math-intensive careers such as computer programming and teaching,” concludes the report. (Photo: Fred P. Alves, Washington Post)
This is not news, but it becomes a wake-up call when you consider that these are real results derived from performance of current high school students, not impersonal statistics from some government agency.
So the large turnout for ProMat’s keynote presentation last week, a panel discussion on Building the Workforce of the Future, was encouraging. Moderated by journalist Forrest Sawyer, the discussion among five panelists with a range of experience was lively.
Participants included:
- Sharon Carrell, Director of Sales and Operations Management Development Programs, McKesson Corp., a veteran HR professional with responsibility for three management development programs;
- Bruce Mantz, Executive VP, Automated Distribution Systems, with years of experience in warehouse management, design, and implementation;
- Rob Hoffman, Director of Business Development, Chicago Workforce Board, who is creating a comprehensive training regimen for the Transportation, Distribution and Logistics sector in Chicago and is heavily involved in entry-level training and high school preparation;
- Josh Dennie, Production Control Manager, Optimax Systems, a 2006 graduate of RIT with BS/MS degrees in Industrial & Systems Engineering and diverse workplace experience via RIT’s co-op program;
- and Kim Absil, Delivery Unit General Manager, Sears, a 2002 Iowa State U graduate with a degree in Transportation and Logistics.
Sawyer kicked off the discussion by noting that, despite tough times, we’re looking forward, as we must. How would the panel respond to the charge put to him recently that younger workers lack ethics and drive?
Loyalty issues arise because so many young people have seen their parents and even grandparents being treated badly by companies they had devoted their careers to, said Hoffman. In his position, rapid turnover with the lower level workers he deals with is a constant problem, and one that he alluded to repeatedly during the session.
An audience member pointed out that while loyalty to company is not common in young people today, loyalty to an individual -- a manager, teacher, mentor -- is, and is often intense.
Communication is key; employers need to take responsibility for making clear exactly what the job is and is not. Low-paid shift workers, it was noted, often have no idea what they are getting into, which is one cause of high turnover.
The younger panelists brought another perspective, with Absil commenting that the loyalty/ethics criticism is unfair and the biggest thing to her is “spending time with my employees.”
“When we’re at school they’re telling us it’s the norm to be at 6 or 7 companies,” added Dennie. “We’re being taught how to interview -- market ourselves -- as well as job skills.” Out of school for 3 years now, he wants his marketability to continue to grow. “If I reach a point where it’s stagnant, I’ll look for other opportunities.”
When hiring young people it’s important to really spend time finding the right person for the right job, he noted.
Hoffman agreed, adding that companies need to “stop taking people right off the street,” instead focusing more heavily on pre-employment training, explaining what they’re getting into and what opportunities are available. He has found that one of the biggest complaints from warehouse employees is how they are treated by lower level supervisors.
At McKesson, Carrell said she takes great pains with the process, showing a video and walking prospective employees around the floor. She does pre-employment screening and 3 interviews, and as a result of this careful process, she has unskilled workers who have been there for 20 years. She also deals with 20+ nationalities successfully by encouraging communication and cross-cultural events to facilitate integration of all groups.
Optimax Systems, said Dennie, also has programs in place to help unskilled workers -- who could be doing the same job their whole career -- develop goals and an ownership perspective.
“If we could get shop floor turnover down from 70% to 30% it would be great,” said Hoffman. He suggested that every firm should adapt to a natural progression of people coming and learning for 2 or 3 years and then moving on -- some companies like IBM actually have alumni associations, and keep track of their former employees.
“I disagree -- why not keep them?” said Carrell, adding that it’s not only about pay, it’s about making people feel valued. “Everyone’s responsible for their own careers -- even people who just want to do their work and go home, they should be able to take care of their families too.”
Sawyer: Downsizing and consolidation are coming; the number of 21-39 year olds will grow dramatically. How do you deal with this? Do you anticipate automation and downsizing will affect your approach to your workforce?
Educating management on the characteristics of the millennial generation was viewed as critical to successfully integrating the younger generation of workers. Also, getting into the schools and encouraging education about what manufacturing is today is important on an ongoing basis -- Dennie pointed out that even though Optimax is not hiring at the moment, they will be eventually and so the educational effort must be continued.
“It’s not just push a button anymore,” he said. “You need some level of education. Looking toward growth, we’ll be looking for a different type of employee who not only knows what to do but why they’re doing it.”
Mantz spoke about the importance of 2-year colleges, noting that we must continue to invest in technology. Automation brings a lot of accuracy and speed to market. Carrell added that her company’s health care business is growing but they are working more efficiently with the same staff.
The role of education was spelled out more fully during the Q&A period, and community colleges seem to be key players here. For one example, New York State’s math/science standards were characterized as “very relaxed,” and companies are working with community colleges to build up a solid, basic foundation.
Mantz also suggested bargaining with your state: his company got some state money for training, using community college professors to implement basic math, English as a second language, and computer skills courses. He noted that he sees his business expanding but his workforce expanding less.
Cost pressures and lack of appreciation for the importance of training are impediments. Hoffman, at the Chicago Workforce Board, noted that he is under intense pressure to keep costs low, and said management doesn’t think training matters – “It’s hard work, intense pressure, what’s the point of doing training if it won’t make me money?[they say]. I’m confident it will, but I need a chance to show it.” And so he continues to struggle with a 70% turnover rate.
In the audience, a high school industrial technology teacher working with 13-19 year olds said that high schools are teaching the same skills they did 20-30 years ago, so the training issue goes right back down into public education. Companies need to reach down beyond the college level, into the high schools.
The discussion drew to a close; we picked up our empty Starbucks cups and headed for the exhibit hall. But it was encouraging, first, that people are in fact engaging with the issues. Communication was a major theme throughout the entire presentation – and responsibility for it is shared 50-50, by the employer and the employee, as one panelist said.
And second, though it’s regrettable that employers have to find ways to compensate for the deficiencies of our public education system, we’re encouraged that they are finding creative ways of doing so. In fact, the community colleges may well be the unsung heroes of the workforce of the future.