2007 Business Retention Visits: Workforce Issues

March 2008

“Eyes & Ears” on MN’s Economy

• 795 one-on-one business visits

• 43 local chamber partners

• Statewide – 52 communities

• Not a random sample

Who We Visited

• Each partner decides

• MN Chamber focus: Leading employers

• Coordinating with DEED

• More revisits than ever (22%)

Types of Businesses Visited

0%

5%

10%

15%

20%

25%

Man

uf.

Ret

ail T

rade

Prof

& In

fo S

erv

Oth

erFi

nanc

e

Acc

omo,

Foo

d &

Art

sC

onst

ruct

Hea

lth &

Ed

Serv

Who

lesa

le T

rade

Tran

spor

tR

eal E

stat

eA

g.U

tiliti

es

Percent of Visits

Company Size

60%

13%

15%

4%4% 4%

0-50

51-100

101-300

301-500

501-1000

Over 1001

N=695

Lesson Learned

• Economy weakening…especially Twin Cities

• State policies…some holding us back

• Business assistance…more than ever

’04-’07 Employment Growth

51%55%

52%

43%

0%

10%

20%

30%

40%

50%

60%

Adding jobs in the next year

'03-'04

'04-'05

'05-'06

'06-'07

Responsive & Flexible…MN Business:

• Innovating: even in a weakening economy

– 2004: 66%– 2006: 69%– 2007: 66%

• “Products” more complicated, more specialized

– More assemblies…fewer “parts” – More “made to order”…less repetition– More targeted services…less mass appeal

Job Growth: Slower & Small Steps

65%

23%

8%2% 2%

1 to 10

11 to 40

41 to 100

101 to 200

201 or more

Employees Most Difficult to Find (Last 2 Yrs)Respondents saying they have difficulty filling vacancies

42%

25%

21%24%

15%

22%

13%16%

13%

7% 8%11% 10%

6%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Specialty Skilled

Professional

Sales/Marketing

Info. Tech.

Temporary

Clerical/Office staff

Part-time

Greater MN

Metro Area

Worker Shortage

• Aging population

• Likely workers, not ready for work

• Regional issues:– Getting to & from work: Twin Cities– No place to live: SW MN

MN Labor Force Growth: 2000-30

0

50000

100000

150000

200000

250000

2000-05 2005-10 2010-15 2015-20 2020-25 2025-30

Policy Changes

• Work force…right skills, more workers

• Health care…quality & cost control

• State taxes…hold the line

• Transportation…Transit & highways

• Workers compensation…See health care

Workforce Programs: Right Skills

• Responsive & Flexible…like MN business

• Build “foundation” skills, e.g. versatility

• Teaching a profession?– Teach basics…quickly– Add full time work…quickly– Then, work & study

• “After employment” training

LOOKING FOR QUALITY Entry Level WORKERS?Hennepin Technical College (HTC) has transformed the model for basic training in manufacturing starting with a 12-week basic manufacturing skills training, moving students into a three – six months of structured on the job training with a partner company, followed by advanced training.

To successfully run their new fast-track program, M-Powered HTC has partnered with HIRED, a nonprofit organization to recruit and screen potential candidates for the program. More than 20 business leaders from local metal forming companies sit on the program’s advisory council. Our graduates are work-ready and available now.

Graduates from this training program have met the followingrequirements:Successfully completed required safety training…Have completed required Hazardous Communication training…Have successfully met the rigorous attendance policy…Have a working knowledge of basic measuring and inspection tools…Have a working knowledge of basic quality control…Can read basic prints and understand basic dimensioning tolerances.Can recognize and describe the primary function of metalforming equipment.Can identify a router or job-process sheet…Can understand appropriate codes of conduct in the workplace…Have worked cooperatively with others in training

More Workers…

• Job growth: All except housing-related

• Mostly small steps, i.e. 1-10 employees

• 68% say, “Openings are difficult to fill.”

Workforce Programs: More Workers

• New Americans

• Racial/ethnic minorities

• Statewide emphasis:– Thousands of businesses, mostly small;– Dispersed geographically

Business’ Expectations:Workforce Programs

• Be more flexible & responsive to workers & business

• Increase the work readiness of new Americans & racial/ethnic minorities

2007 Member Poll

• Sent questionnaire to all members

• 485 responses — 27% response rate

• Responders match total Chamber membership in size, geography, type of business

Time/Money Spent Training

86%

14%

Yes

No

Source: MN Chamber member public policy poll (2007)

More or Less Than Before

1%

40%

3%

56%

More

Less

About the same

Don't know

Source: MN Chamber member public policy poll (2007)

Why They Spend on Training

3%

15%

82%

On skills that shouldhave been taught inhigh school or post-secondary school.

On skills that arespecialized for mycompany/industry.

Don't know

Source: MN Chamber member public policy poll (2007)

Where Skills Should Have Been Taught

51%

15%

14%

16%

3%

High schools

Tech. colleges

Two-year colleges

Four-year colleges

Graduate schools

Source: MN Chamber member public policy poll (2007)