Workforce Development Continuum Assessing Charlotte’s Workforce Needs in the Year 2000

Workforce Development ContinuumAssessing Charlotte’s Workforce Needs in the Year 2000

Workforce Continuum Committee

• Jane Cooper, Chair• Elaine Lyerly, Marketing• Becky Paneitz, Service Delivery• Rick Vignos, Research• Kit Cramer, Staff

The Survey of the Workforce

• In August 2000 a Survey of the Workforce was developed:– Focus groups were held– The 1996 survey was reviewed and

major revisions were made– New questions were developed

Advantage Carolina Data

• Method– 1,000 paper copies were mailed to

businesses– the URL was emailed to 3,000 businesses

to complete the survey on-line– follow-up postcards were mailed to 10,000

businesses– 333 completed surveys were returned

(138 paper copies, 195 via online data base)

Size of Businesses Responding

40.4%

14.3%45.3%

<100 employees 100-499 employees>500 employees

Respondents came from a wide variety of zip codes and businesses

Employers were asked to identify the need for workers

by type

– Low-skilled such as laborers and dishwashers– Skilled such as secretaries, computer

technicians– Professional such as managers and nurses

Availability of and Need for Workers by Type

Somewhat to Some need to

Type Very Available Great Need

Low Skilled 69.8% 45.7%

Skilled 64.3% 86.1%

Professional 64.5% 76.5%

Summary: Change in 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 41-100%

41-100% of of futureworkforce workforce

Education Level today has: 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%

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

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.

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%

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%

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 same higherlow-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%

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%

Summary

• Skill levels are increasingamong skilled and professional workers

• Work ethic is decreasing

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 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%

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 73.4%• recognition programs 69.4%• tuition reimbursement 66.7%• free parking 61.4%• vacation packages 54.7%• flextime 51.7%

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 students40.5%

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 workforce64.8%• organizational structure/process change 64.7%• required continuing education 51.9%• cultural diversity of the workforce 45.0%• non-English speaking employees 34.8%

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

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

Training Needs

Soft Skillsteamwork ability communicationinterpersonal skills self-initiativeprofessionalism perseverancepunctuality listeningattitude toward supervisors physical appearance

Basic Job Skillslearning new skills problem-solvingreading phone skillswriting basic arithmetic speaking/communication

Management Skillsusing time, money, materials, space

and staff wisely decision-making leadership ability

Technical Skillsacquiring/using information performing technical tasksunderstanding graphs/charts computer literacy

Diversity Skillsworking with diverse culturesEnglish 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 readingattitude toward supervisors decision-

makingperforming technical tasks computer

literacyworking with diverse cultures physical

appearanceunderstanding graphs/charts basic

arithmetic English language skills

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%

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%

92.5%

% yes% no

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 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%

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%

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

Open-ended Questions

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 EngineeringMachine operation WeldersSales Electrical Cashiering Web designTelephone FilingAutoCAD CarpentryManagerial/organizational Maintenance/electrical & mechanical Accounting/bookkeepingDatabase management/design

Difficult Jobs to Fill Locally (top 20)

Customer Service RepresentativesSales (associates/managers)Administrative AssistantsClerical WorkersProject ManagersEngineersNurses (LPN&RN)Warehouse EmployeesWelders (qualified)IT Professionals

Difficult Jobs to Fill Locally (top 20)

Machine OperatorsMaintenance/Technical WorkersProduction ManagersReceptionistsSupervisors/managersAccountantsMarketingService TechniciansMachinistsSystems Analyst

The Cluster Groups

Six Identified Cluster Groups

Cluster # respondents• High Growth Manufacturing 77• Financial Services41• Travel & Entertainment Services 39

• Professional Services 38• Innovative Technology 21• Transportation 17

Need Versus Availability of Low Skilled Workers by Cluster

64.9%

21.5%

78.9%

58.8%58.8%

62.2%

21.6%

77.1%

83.3%

0.0%

64.9%

80.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

% need % available

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

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

71.1%

58.5%

95.1%

52.9%

81.2%

55.8%

76.6%

57.9%

89.5%85.7%

100.0%

78.4%

50%55%60%65%70%75%80%85%90%95%

100%

% need % available

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

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

73.7%

57.9%

87.5%

64.70%

80%

64.5%64.5%

50.0%

78.4% 76.2%

95.2%

73.7%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

% need % available

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

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

46%

73.3%

65.3%

20.7%0%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

percent

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Percent of Future Workforce Needing a Certificate, Diploma

or 2-Year Degree

17.2%20.0%

22.6%26.7%

35.3%

38.5%

0%

5%10%15%

20%25%

30%35%

40%

percent

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Percent of Future Workforce Needing a 4-Year Degree or

Greater

58%

23.1%11.8%

75%

95%

50%

0%10%20%30%40%50%60%70%80%90%

100%

percent

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Factors Driving Training by Cluster

55%

65%

75%

85%

95%

Competition withcompanies

Technologychanges

Specifictechnology to

industry

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Factors Driving Training by Cluster

40%

50%

60%

70%

80%

90%

growth inknowledge

organization andprocess change

low skills of newhires

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Factors Driving Training by Cluster

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

low skillscurrent

workforce

continuing ed diversity ESL

Fin.Ser.Trans.HG Manu.Prof.Serv.Innov.Tech.Trav/ Enter

Top Ten Training Needs - Financial Services

% indicating somewhat to a great need

• Teamwork ability 92.7%• Professionalism 92.7%• Self-initiative 92.5%• Leadership ability90.2%• Perseverance 90.0%• Listening 87.5%• Interpersonal skills 87.2%• Communication 85.4%• Phone skills85.0%• Punctuality 85.0%

Top Ten Training Needs - Transportation% indicating somewhat

to a great need• Writing 95.1%• Teamwork ability 94.1%• Phone skills94.1%• Professionalism 94.1%• Self-initiative 94.1%• Communication 94.1%• Listening 94.1%• Problem-solving 94.1%• Learning new skills 94.1%• Acquiring/using info 94.1%• Performing technical tasks 94.1%

Top Ten Training Needs - High Growth Manufacturing % indicating somewhat

to a great need• Teamwork Ability 98.7%• Self-initiative 96.1%• Attitude toward supervisor 94.7%• Communication 93.3%• Interpersonal Skills 92.1%• Listening 92.0%• Leadership ability90.8%• Perseverance 90.8%• Acquiring/using information 90.7%• Punctuality 89.6%

Top Ten Training Needs - Professional Services % indicating somewhat

to a great need• Performing technical tasks 81.1%• Leadership ability78.9%• Acquiring/using information 78.9%• Computer literacy 78.9%• Teamwork ability 76.3%• Listening 76.3%• Self-initiative 76.3%• Perseverance 76.3%• Interpersonal skills 75.7%• Using time, money, materials, space 73.7%

and staff wisely

Top Ten Training Needs - Innovative Technologies

% indicating somewhat to a great need

• Teamwork ability 81%• Communication 76.7%• Leadership ability76.2%• Interpersonal skills 71.4%• Working with diverse cultures and people 71.4%• Listening 61.9%• Phone skills61.9%• Acquiring/using information 61.9%• Problem-solving 60%• Decision-making 60%

Top Ten Training Needs - Travel and Entertainment Services% indicating somewhat

to a great need• Communication 100.0%• Interpersonal skills 100.0%• Listening 97.4%• Teamwork ability 94.9%• Professionalism 94.9%• Self-initiative 94.9%• Punctuality 94.9%• Perseverance 94.9%• Problem-solving 94.9%• Decision-making 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

Research Team Members

• Rick Vignos - Harris Interactive• David Belton - Charlotte Chamber• Tony Crumbley - Charlotte Chamber• Ashley James - Charlotte Chamber• Cheryl Roberts - UNCC Urban Institute• Terri Manning - Central Piedmont

Community College

For a Copy of This Presentation

• Contact:

Terri Manningterri_manning@cpcc.cc.nc.us330-6592