Lifelong Learning: An Essential Factor in Workforce Success and Global Competitiveness

Findings from the American Worker and American Employer Surveys commissioned by Business Roundtable’s Springboard Project

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What Is The Springboard Project?

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• The Springboard Project is a new action-oriented commission that is developing policy recommendations for a 21st century approach to equipping Americans with the knowledge and skills needed for lifelong success in the U.S. workforce

• The Springboard Project will develop new ideas to help Americans get the information, retraining and ongoing education they need to compete and succeed in a post-recession economy

• The Springboard Project is bringing together a select and diverse group of leaders to create actionable recommendations to:

– Encourage the building of relevant skills for today’s and tomorrow’s markets

– Institutionalize lifelong learning as an individual and collective imperative

– Facilitate workers’ capacity to adapt to dislocation and evolving labor markets

• The Springboard Project will report its recommendations to the Administration, Congress, the business community, labor and individuals by the end of 2009

Springboard Project Members Include Business, Education, Union, and Nonprofit Leaders

Name Title

Jack Golodner President Emeritus, Department for Professional Employees, AFL-CIO

Sara Horowitz Founder, Freelancers Union

Janice Bryant Howroyd

Founder and CEO, ACT-1 Group

Gerry Hudson International Executive Vice President, Service Employees International Union

Dr. Jim Jacobs President, Macomb Community College

Name Title

Bill Green Chairman and CEO, Accenture

Morton Bahr President Emeritus, Communications Workers of America

Charlene Barshefsky

Senior International Partner, WilmerHale

Dr. Gordon Berlin President, MDRC

Name Title

Gregory Brown President & Co, CEO, Motorola, Inc.

Dr. Peter Cappelli

Professor of Management, University of Pennsylvania Wharton School

Louis Chênevert President & CEO, United Technologies Corporation

David Dougherty President & CEO, Convergys Corporation

Gary Forsee President, University of Missouri

The Springboard Project Members (Continued)Name Title

Dr. Judith Rodin President, Rockefeller Foundation

Dr. Paula Rooney President, Dean College

Dr. Peter Smith Senior Vice President of Academic Strategies and Development, Kaplan Higher Education

Robert Wise President of the Alliance for Excellent Education and former Governor of West Virginia

Name Title

Wes Jurey President and CEO, Arlington, Texas Chamber of Commerce

Alexandra Levit Syndicated Wall Street Journal columnist

Dr. Robert Litan Vice President, Research and Policy, Kauffman Foundation; Senior Fellow, The Brookings Institution

John McKernan Executive Chairman of Education Management Corporation and former Governor of Maine

Name Title

Dr. Gail Mellow President, LaGuardia Community College

Janet Murguía President and CEO, National Council of La Raza

Craig Newmark Founder, Craigslist

Dinesh Paliwal Chairman & CEO, Harman International Industries, Inc.

About the American Worker and American Employer Surveys

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BSG Conducted Three Phases of Research for the Springboard Project

1. Focus Groups– Two focus groups with “blue collar” workers in Columbus– Two focus groups with “white collar” workers in Denver– Online in-depth interviews with “blue collar” men nationwide

2. American Worker Survey – 1000 nationwide telephone interviews

3. American Employer Survey– 601 nationwide online interviews

Methodology for Quantitative Studies

The Benenson Strategy Group conducted two quantitative studies for The Springboard Project:• Survey of American Workers included a total of 1000 nationwide telephone interviews, and

was conducted from July 7 – 12, 2009– To qualify for the survey, respondents were screened to ensure they were:

• Adults ages 18 to 64• Employed, looking for work, or homemakers planning to re-enter the workforce within next four years

• The margin of error is ±3.10 for the entire data set at the 95% confidence interval. It is higher among subgroups

• Survey of American Employers included a total of 601 nationwide online interviews, and was conducted from July 15 – 19, 2009

– To qualify for the survey, respondents were screened to ensure they:• Have hiring power within their organization• Are a mid-level manager, executive, or senior executive

– The sample was also weighed to be representative of employers nationwide, in terms of organizational size, industry, and state

– The margin of error is ±4.00 for the entire data set at the 95% confidence interval. It is higher among subgroups

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Finding Qualified Workers Difficult for Most Employers; Skills Gap Affects Their Productivity

• There are clear signs pointing to the need to increase worker skills training and education.

• Employers expect that education requirements and their need for advanced technical skills to increase over the next several years.

• Three-fifths currently say that it is difficult to find qualified employees.• Employers see a significant gap between their needs and their workers’ skills

that is currently affecting their overall productivity. • More than half say that this gap affects 16% or more of their employees;

20% say the gap affects more than 25% or more of their employees. • The most serious gaps are believed to be “soft skills,” such as work ethic,

accountability and self-motivation.

• Workers, too, show an appetite for education and skills enhancement, with 8-in-10 expressing an interest in skills training.

Employers Anticipate Demanding Higher Education Levels the Next Several YearsMajority of Employers Finding It Difficult to Find Qualified Applicants

Difficult 61%

Not Difficult

39%

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Difficulty in Finding Qualified Applicants to Fill Vacancies

Q9: In general, how difficult is it today to find qualified applicants to fill vacancies at your company?Q7: In the past 4 years, what proportion of employees that you’ve hired have had:Q8: In the next 4 years, what proportion of employees that you anticipate hiring will have:

Change in Level of Education Employers Anticipate Needing (From Past 4 Years to Next 4)

(All + Most + Some Employees Have Level of Education)

65% anticipate

hiring all/most/

some with Associate’s Degrees or

higher

HS Degree

Looking Ahead, Employers Expect to Demand Higher Levels of Skills, Education

10Q13: What do you expect will be the most important change in your job requirements over the next four years? OPEN END

*Only responses of 4% or more shown

Most Important Expected Change in Job Requirements Over Next 4 Years

Technical skills/

qualifications

Soft Skills

Half of Employers Facing Problematic Gap Between Their Needs and Employees’ Skills

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% of Employers Who Say Gap Between Employee Skill Level & Performance Is Problem

% of Staff In Which a Gap Exists Between Employer Needs & Performance that Affects

Productivity

Q14: How big a problem for your company is the gap between the skills and performance of your employees and your needs as a company? Please use a 7 point scale where 7 means that it is an extremely large problem and 1 means that it is not a problem at all.Q16: Among what percentage of your staff would you say that the gap between your needs and their skills and performance is significant enough to affect your company’s overall productivity?

49% of employers see a

sizeable gap

51%

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Gap Between Importance of Skill & Workers’ Current Skill Level (As Perceived By Employers )

Severe Deficit

Small Deficit

NoDeficit

Largest Skill Deficits Are In “Soft Skills”

Q17: You are going to see a list of skills and attributes that employees could have. Please rank how important each skill or attribute is for your employees to have right now using a 7 point scale. Q18: Indicate the level of your current employees’ skills overall, for each of the following skills, using a 7 point scale. (Showing difference between 6+7s)

Moderate Deficit

13Q46: Is your company or organization hiring new people and expanding the size of its workforce, not changing the size of its workforce, or letting people go and reducing the size of its workforce?

Benefits for Training: For Employers, Company Growth; for Workers, Confidence in Skills

Growth or Contraction of Company, By Those That Do or Do Not Offer Training

Q14: If you lost your job, how confident are you that you would be able to find a job for equal or better pay than your current job?

Workers’ Confidence in Their Ability to Find Another Job

More Than 8 in 10 Employers Say Their Training is Adequate or Better Cost is biggest obstacle for those who see training as inadequate

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Priority your company places on skills training and continuing education of

employees is:

Most important reason company does not place greater emphasis on skills training and

continuing education

Q24: Thinking about the priority your company or organization places on the skills training and continuing education of your employees, would you say that it is:Q25: What’s the most important reason that your company does not place greater emphasis on skills training and continuing education? (Asked of those who said barely or not adequate)

8 in 10 Workers Willing to Participate in Training/Education Outside of WorkplaceFew who have participated before wouldn’t do it again

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I’ve taken courses or participated in skills training outside my

workplace before and I would do it again – the

skills I gained have definitely paid off

I’ve taken courses or participated in skills training outside my workplace in the past, and I would not do it again – it

just wasn’t worth it

I have not taken courses or participated in skills training outside my workplace and have no interest in

doing so in the future.

I have never taken courses or participated in skills training outside my workplace, but am interested in

doing so in the future – it seems like a good investment

% Saying Statement Comes Closest to Their Experience

Q34: Now I’d like to ask you some questions about education & job skills training or enhancement. I’m going to read you a few statements, and please tell me which comes closest to your experience.

Would Participate: 81%

Workers Face High Hurdles to Participation, But Very Likely to Pursue Training if Shown a Way Around Them

16Q58-64: Now I’m going to read you some reasons people could give for not pursuing education programs or job skills training. After each one, please tell me how much that statement applies to you. 7-pt scaleQ65-69: How likely would you be to pursue a job skills training program if it offered that feature? Very likely, somewhat likely, not very likely, or not at all likely?

Barriers to Training: % Saying Each Obstacle Applies to Them (6+7)

Overcoming Barriers:% “Very Likely” to Pursue if Program Has Feature

<$50K: 52%>$50K: 25%

Large Portion of Workers Need Reassurance That They are Pursuing the Right Skills

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Q49. And, which of the following statements comes closest to your view on pursuing further education and skills training?

41% see risks to pursuing skills training now; are unsure it will

pay off

% Saying Statement is Closer to Their View

I think I know what skills my job will require in the future, but investing in them now is too risky because I'm not sure it will pay off

I have no idea what skills my job will need in the future, and investing in education or skills training now would be a waste

I know what skills my job will require in the future, and it would be worthwhile to invest in those skills now

DK

Employers See Themselves, Not Government, Responsible for Education and Training ProgramsWorkers Look to Educational Institutions First

% Saying Group Should Be Primarily Responsible for Creating Education and Job Training Programs

Q37 (Employers)/ Q46 (Workers): Which of the following do you believe should be primarily responsible for creating education and job training programs?

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Educational Institutions: Employers: 30%Workers: 39%

Segmentation of the American Workforce

Interest in Training/ Education Not Determined By Income or Education Level

20Q35: Thinking about the past two years, how seriously have you sought out job skills training or education that would help you earn a degree or credential or get ahead in your career?

% of Workers Who Have Very Seriously Sought Out Skills Training in Past Two Years

AGE EDUCATION INCOME

Segmentation of American Workforce Yields Clearly Differentiated Target Audiences

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• This segmentation research developed six distinct & unique individual sub-segments that exist within the American workforce

• These segments were formed using advanced statistical analysis, primarily based on workers’ attitudes toward their current skill levels, education, and future outlook on their employment.

• Other differences, such as demographics and life-stage/lifestyle characteristics were also used to profile and describe segments.

• The segments range in size from 11% to 27% of the workforce.

Ranking the Segments by Skill Interest

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Disinterested Boomers

Without a Way

Strivers

Successful and Secure

Willing Not Able

True Believers

LOW HANGING FRUIT:

Ripest Targets

HARD TO REACH: Not Interested

CORE: Most Skill-Centric

START

END

Segmentation Analysis Identified Six Segments of American Workers, Representing Different Skill Levels, Motivators, Attitudes, and Demographics

Key Findings: Base Segments

• Based on attitudinal differences toward education, work and skills training, we have identified two core groups that will need little to no persuasion to convince them to partake in skills training.

– For them, skills enhancement has been and will be an ongoing part of their professional lives; with a little help overcoming barriers to participation, these groups will comprise the bulk of participants in skills enhancement programs.

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Demographic Profile Key Attitudes Major ObstaclesTrue Believers

Secure, confident, education-focused,

professional, affluent

High Income – 25% earn over $100K Highest Education – 46% have

bachelor’s degree or higher 68% are employed full time Middle Aged – 47% are between

ages 35 - 54

Want to improve career and get ahead - 81% agree Say going for additional

job skills training is most important to advancing at work – 84% agree

Convenience – 46% say this applies to them Customization - 26% say this

applies to them

StriversAmbitious,

education-focused, young,

minorities, moms

Highest minority population of any segment – 28% Hispanic, 14% African American Earn below average income –

49% earn less than $50K Most likely to be parents- 62%

• Want to improve careerand get ahead – 88% agree

• Spend 15+ hours a week on job-related learning-87% do this

Convenience- 49% say this applies to them Money – 39% say this applies

to them

• We have also identified two other groups that are the target groups for skills enhancement programs; while interested in getting ahead, workers in these groups face significant obstacles to participating in such programs.

– With the right approach, these barriers can be overcome to allow these workers to enjoy the benefits of education and skills training.

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Key Findings: Target Segments

Demographic Profile Key Attitudes Major Obstacles

Willing Not Able

Unemployed, insecure, young,

uneducated, willing

Least educated segment - 52% have HS degree or less Lowest income segment – 61%

earn under $50K Young – 68% between 18 & 39 Highest Unemployment of any

Segment – 32% unemployed

Work hard but can’t get ahead –56% agree Think it’s more difficult to find a

job now because employers require different types of job skills- 77% agree

Money – 80% say this applies to them Convenience – 63% say

this applies to them Accreditation – 40% say

this applies to them

Without A Way

Discouraged, insecure, trapped,

low-income, women

More likely to be female Over half are parents – 55% Lower income – 58% earn under

$50K Less educated- 42% have HS

degree or less

• Not training focused– only 17% sought training in past two years

Money – 71% say this applies to them Convenience – 49% say

this applies to them

Key Findings: Harder to Reach Workers

• Two other segments are not interested in skills enhancement programs, due in part to life-stage and lifestyle

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Demographic Profile Key Attitudes Major Obstacles

Successful & Secure

Secure, confident, successful, affluent,

age 40-54

Highest income segment – 53% earn over $75K Have moderate education –

53% have Bachelor’s degree + Families – 77% married, 50%

parents

Not training focused – only 8% sought training in past 2 years Are confident they could find

another job if they lost their current job – 78% agree Spend less than 3 hours a

week outside work on job-related learning – 91% do this

Time- 43% say this applies to them

Disinterested Boomers

Pre-retirement, unconcerned middle class, white, empty-

nesters

Oldest segment – 77% over age 40, 30% over age 55 “Empty Nesters” – 68%

married, 66% without kids at home Earn moderate income- 40%

earn between $50 -$100K

• Not interested in training- only 12% would consider training in future

• Feel secure in current job –91% agree

Convenience – 35% say this applies to them Customization- 34% say

this applies to them

Core & Target Groups Most Likely To Have Sought Training in Past, And Do Training In Future

26Q35: Thinking about the past two years, how seriously have you sought out job skills training or education that would help you earn a degree or credential or get ahead in your career? Q37: How likely are you to participate in job skills training or take courses to gain a higher degree or credential in the next two years? Are you:

% of Workers Who Have Very Seriously Sought Out Skills Training in Past Two Years (by Segment)

% of Workers Who Are Very Likely To Do Skills Training Over Next Two Years (by Segment)

What These Findings Mean For The Springboard Project’s Recommendations

• As noted earlier, The Springboard Project is focusing on a 21st century approach to:

– Encouraging the building of relevant skills for today’s and tomorrow’s markets– Institutionalizing lifelong learning as an individual and collective imperative– Facilitating workers’ capacity to adapt to dislocation and evolving labor markets

• This research uncovers key employee and employer attitudes and behaviors that must be taken into account for our recommendations to be “actionable”

• We anticipate our final recommendations shortly

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Question and Answers from Briefing Participants

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