Workforce Development - A Good Investment?

Why The United States Needs a National Skills Agenda

The Council on Competitiveness in April published the Thrive report, the first in a series of targeted benchmarking reports intended to illuminate key areas of competitive advantage for Americans to succeed in the 21st century and provide an important framework for charting a path to prosperity for American citizens.

The Council on Competitiveness refers to itself as the only group of corporate CEOs, university presidents and labor leaders committed to the future prosperity of all Americans and enhanced U.S. competitiveness in the global economy through the creation of high-value economic activity in the United States.

The insightful report (available for free download) discusses in depth specific issues and strategies relating to increasing our global competitiveness through focused and aggressive workforce development practices.  The synopsis of the call to action follows:

During a time of turbulence and transition—driven by globalization, accelerating technological change, and volatility in global energy, currency and financial markets—America needs a national skills agenda to compete globally and to ensure a rising standard of living for its citizens.

National and Global Demographic Trends Are Raising Red Flags. Slowing growth of the U.S. workforce has the potential to slow economic output if productivity does not increase. Lack of adequate reading and math skills among new U.S. workers compounds this challenge. At the same time, hundreds of millions of educated foreign workers are entering the global workforce and competing for jobs that are increasingly vulnerable to Offshoring.

Four Critical Skills Strategies for the United States

1) Meet the Demand for Middle Skills

Middle-skilled jobs represent the largest number of total openings in the United States until 2016, and the United States is failing to adequately train Americans to take advantage of this opportunity. These jobs do not always require a college degree, but most require training, technical sophistication and initiative. They pay well and do not offshore easily.

2) Build Service Economy Skills

More than three-quarters of all jobs in the United States are in the service economy, yet many policymakers view them as low-skill, low-wage options. In fact, the service sector is driving demand for more complex and creative skill sets—including problem solving, communications, entrepreneurship, computational analysis, collaboration and teamwork.

3) Compete for Innovation Advantage

Simply saying America needs more scientists and engineers is no guarantee that the United States can compete successfully in a global economy in which many nations have copied our model. Policymakers must recognize that the margin of advantage will flow from the fusion of cutting-edge capabilities with entrepreneurial, creative and interdisciplinary talent. Four potential areas to start with to create competitive advantage:

• More integrative scientists and engineers

• More entrepreneurial scientists and engineers

• More business-savvy service scientists and engineers

• More computational scientists and engineers to leverage America’s IT advantage

4) Create Skills for Sustainability

Sustainability will become a more important determinant of global hiring and investment patterns. Where new and growing companies locate and where jobs are created will depend in large measure on which countries successfully anticipate these opportunities and take steps to educate and train workers in these fields. America must get out front and move fast to develop the talent and skills workforce to capture these opportunities.

We are ALL impacted by our willingness and ability to move this initiative ahead.  If we ALL take ownership at a personal level of just ONE of these areas and work with our companies, schools and colleagues, we CAN make a measurable difference in our country. 

If of course, you feel that leaving it to others will "git er done", then prepare yourself for the inevitable consequences.

Why international experience is an essential skillset

Many would look at the US Construction markets and see a sluggish future.  Residential construction is down, and a key barometer of construction-industry activity is signaling that the abrupt downturn in commercial construction could run deeper, and last longer, than previously expected.  Construction related manufacturers are cutting back in may sectors, anticipating future softness in the economy.

But not all.

In a recent AP article entitled "US Heavy-Equipment Makers Find Refuge in Overseas Infrastructure, Agriculture Booms" Caterpillar executives talk a lot these days about how 2007 had the makings of a disaster. Its truck engine and construction equipment sales in North America plunged and the sluggish U.S. economy offered no hope of a quick turnaround.

Yet the Peoria, Ill.-based company had its best year ever, with profits of $12.3 billion and almost $45 billion in revenue, thanks largely to overseas sales.

U.S. heavy-equipment makers have taken refuge in growing economies overseas to ride out the downturn in the American economy. Growing economies abroad have kept American-made industrial and agricultural heavy equipment moving in China, India, the Middle East and elsewhere -- even as U.S. sales have slowed.

Companies such as Deere & Co. have added factories abroad, or taken other steps to increase their international profiles on the promise that a development boom will continue for years.

Deere opened a new tractor plant in Brazil last year to serve expanding farm economies there and in Argentina. Just this week, Caterpillar announced plans to spend $500 million to increase its 50 percent ownership of a Japanese joint-venture with Mitsubishi Heavy Industries Ltd. to 67 percent. And the deal gives Cat the option to buy the rest of the company, Shin Caterpillar Mitsubishi Ltd., which makes loaders and hydraulic excavators.

During past economic slowdowns, few if any of these American heavy-equipment manufacturers would have been diversified enough to do much besides try to ride it out, Morningstar analyst John Kearney said.

Companies that make construction equipment have been especially hurt by the stagnant American housing market. Caterpillar blamed its 11 percent drop in 2007 North American machinery sales in large part on the slowdown in new-home construction. But a lot of overseas economies, most in developing countries, are riding a wave of new construction that is increasing profits at American industrial firms.

"Very large equipment-intensive projects in the Middle East and Russia appear likely to continue strong growth in those regions while China and India remain strong," Citibank analyst David Raso wrote in a January report.

Also, Brazil, Argentina and several other developing countries are becoming agricultural powerhouses. Brazil and Argentina together produce almost half of the world's soybeans, and just over a fifth of the planet's wheat grows in China.

That budding prosperity requires expensive bulldozers, backhoes, tractors and mining equipment.

Moline, Ill.-based Deere, whose biggest business is agricultural equipment, is a major seller in South America. In its most recent quarter, Deere's profit was up 55 percent to $369.1 million. The biggest reason? A 37 percent increase in sales outside the U.S. and Canada.

And mining-equipment manufacturer Joy Global Inc., based in Milwaukee, this month said its profit rose 19 percent in its most recent quarter to $71.1 million. Just over half of its sales were outside the U.S.

Similarly, crane maker Manitowoc Co. earned $99.2 million in its most recent quarter, nearly double the year-ago numbers. The company didn't break out its results by region, but credited the increase to construction overseas -- particularly the building of new power plants, mines and other energy-production infrastructure. The Manitowoc, Wis.-based company has a heavy presence in China and other fast-developing countries.

"Over 45 percent of our business is in energy-related markets," Manitowoc President Glen Tellock told analysts in February. "And that is I think what gets lost a lot of times in the noise when you look at the residential and the commercial construction."

And Caterpillar in January reported its record 2007. Its profits were up 4 percent and sales were up 8 percent for the year. In the fourth quarter, when bad economic news was weighing on many American companies, Caterpillar chalked up a $975 million profit, 13.6 percent better than a year earlier.

The company credited double-digit sales increases for truck engines and construction equipment in Asia, the Middle East and Africa.

Caterpillar also noted that almost 60 percent of its fourth-quarter sales were outside North America, a 10 percent increase from the year before. And the company expects that figure will increase this year.

Caterpillar has a significant and growing manufacturing presence overseas, but a lot of those exported products are made in U.S. factories running near capacity, according to Caterpillar Group President Edward J. Rapp.

"I take can take you to Lafayette, Indiana," he said in an interview, referring to a Caterpillar heavy-engine plant. "It sure doesn't feel like recession."

The manufacturers all say they expect overseas growth to continue, insulating them from American economic weakness.

From a workforce perspective, people who have the skills to work in, communicate and manage across different cultural boundaries are positioned to snag important roles, at home as well as abroad, with these firms and other like them.

Are Construction Jobs Going Down Under?

One of my favorite sources on trends about the skilled labor shortage, is "Perfect Labor Storm 2.0" authored by Ira Wolfe, who constantly helps fill in the gaps about HOW people are coping with the worsening skills shortage.

One of Ira's latest excellent contributions is "Will U.S. construction workers flee to Australia?" where he discusses how the Australian Housing Industry Association (HIA) has called for a special visa scheme to recruit 15,000 overseas construction workers to combat the local (Australian) skills crisis. Thousands of skilled building workers could be lured from the faltering US housing industry to help ease the crisis "down under"

I'd like all of my readers in the construction space to ponder this, and carefully so.  Ask yourself what you think the economic will be to the US, when many workers choose to "relocate" their future to the other side of the globe. 

Just check out one of many sites offering Construction Jobs in Australia and you'll notice two things:

1. many companies are actively seeking qualified and skilled people to join them, and
2. these are the same types of jobs that are being cut by the implosion of the residential housing construction market in the U.S.

American construction workers may be surprised at how well they'll be received by the Australian workforce marketplace, and the incentives they'll have to come down to work.  Kind of makes you wonder when the last time their former American employers told them how valued they were?

Put yourself in the place of the laid-off or soon-to-be-laid-off construction worker.
There are a number of questions you might want to ask yourself...

• Did you feel valued at your last job? 
  
  • Was it because you were unappreciated, or was it because your work contribution was just "ordinary"?
• Do you have the skills to compete in the highly competitive Australian workforce
  • you didn't think they were looking for unskilled general labor did you?
  • (by skills, I mean the skills to survive in the marketplace, not just the technical skills to get the job)

Looking for another job, especially in another country, can be a daunting, as well as an enlightening process for US construction workers.  By entering into a job search in the other parts of the world, they will become informed of other opportunities and perhaps for the first time for most U.S. construction workers, lets them know how competitive they are in the "global" job market.  (HINT: If your skills have become outdated or job specific, you might want to consider a few training programs in order to update your skills, or develop new ones.)

American construction workers who consider the new global opportunities that are appearing, may also find that they need skills to adapt in a different culture that they never before had to consider.

Time of great risk or great opportunity?  I guess it depends on how you want to look at it.

The Future Workforce - Predictions about how Workforce Development is Changing

I have been discussing in this blog, as well as my numerous speaking stints around the country, about how the workforce development process is changing. 

A like-minded fellow, author, researcher and teacher Floyd Kemske a really smart guy and a voracious writer, provides some additional insights into the way we will recruit, develop and retain our workforce.

1. Lifelong learning will be a requirement.
2. The focus of training/learning activities will be on performance improvement and not just on skill building.
3. Employees with varied skills and competencies will be valued more highly than those with a depth of expertise in a single area.
4. Problem solving and decision making will become a required curriculum with practical work problems as the training medium.
5. Training will be delivered "just in time," wherever people need it, using a variety of technologies.
6. Companies will demand constant personal growth, and employees will respond positively to higher expectations.
7. It will not be possible to survive in the workplace without basic computer skills.
8. People who can learn new skills/competencies quickly will be highly valued in a faster changing world.
9. Team projects and special assignments will be a major factor in personal development.
10. As the computer-savvy generation is more assimilated into the workforce, employees will become much more productive in complex tasks and less dependent on other people and departments.

They Say It's Only Going to Get Worse. Really?

A recent article published at HR World, entitled "Job Filling Is Only Going to Get Harder" provides a glimpse into the future for employers.

“These numbers indicate a critical need for talent that’s forcing organizations to rethink their hiring and retention practices-or suffer the consequences,” said Steve Watson, international chairman of Stanton Chase, which has 57 offices in 35 countries and is a top 10-ranked global retained search firm.

Two-thirds of the firms are concerned . . . and another two-third are at least partially prepared for it.

However, according to the survey, 36 percent of employers are taking the bury head in sand route. That’s always productive.

Think it’s hard to fill jobs now? It’s going to get even harder. According to a recent survey by Stanton Chase International and Birkman International, there will be 11.5 million more jobs then workers by the year 2010. Why?

According to the research data from many sources, it’s because baby boomers are retiring and the new generation of workers have different work ethics, talent and expectations then their older counterparts.

I disagree and think this is view is a bit simplistic.  The worker shortage involves the boomer retirements, but you also have to factor in the shifting global demand for workers, a lower birthrate, people waiting until a later age to start families, shifting attitudes about work, and on and on.

The marketplace is becoming global - Are you ready for it?

Are you ready to play in the global marketplace?

Do you understand what this implies?

If you have been paying attention over the past few years, you understand that there are massive changed happening in world output and the world trade picture.

• The U.S. no longer dominates the world economy
• Large U.S. multinationals no longer dominate international business
• The centrally planned communist economies that made up roughly half the world suddenly become accessible to Western businesses
• The global economy has become more knowledge-intensive

I'd like to address the last point - becoming more knowledge-intensive.

It is no longer enough to have the latest or best knowledge.  Further, the idea that "knowledge is power" has become somewhat of a attitude that is off-putting to others.

Let me provide context for this statement.

I recently completed arranging a foreign trade deal for a US firm that knew that they needed to be sourcing from China, but didn't have a clue as to how to begin.  This is not an uncommon situation, as increasingly, international business is a critical necessity of business.

It's not simple, nor straightforward, but is doable for those that want to spend the time to become smarter about the situation, and required processes regarding foreign trade.

One area that I have noticed that is often unfamiliar to those westerners seeking to establish trade/business relations with people/organizations in other cultures is the western tendency to "pigeonhole" people by our existing cultural beliefs.

Not only does this get you into trouble (quickly), such incorrect generalizations can damage potential for future relationship development.

Here's come suggestions to help you when dealing with people of different cultures:

• Do not try to identify the counterpart’s home culture too quickly. Things that you believe represent "cues" to the other's cultural orientation (e.g., name, physical appearance, language, accent, location) may be (and increasingly are) unreliable.
• Be particularly aware of the Western bias toward “doing.” Ways of being (e.g., comportment, smell), feeling, thinking, and talking can shape relationships with people of other cultures more powerfully than doing.
• Resist the western tendency to formulate simple, consistent, stable images.  These may not translate the same in other cultures.
• Do not make the assumption that all aspects of the culture you are dealing with are equally significant.
• Strive to recognize that the norms for interactions involving outsiders (e.g. YOU) may differ from those for interactions between compatriots.
• Never overestimate your familiarity with your counterpart’s culture. More often than not, you will be wrong.

Please trust me on these points.  I have learned the hard way that global trade is based on relationships, and is not entirely price driven.  In the fastest growing economies of the world, the relationship takes precedence in negotiations.  And relationship development doesn't happen quickly (by design)

There are many places where westerners (across many industries) have screwed up by trying to apply western values and practices to other cultures. Here are a few examples:

• An American oil rig supervisor in Indonesia shouted at an employee to take a boat to shore. Since it is no-one berates an Indonesian in public, a mob of outraged workers chased the supervisor with axes.
• Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it "whitens your teeth." They found out that the local natives chew betel nuts to blacken their teeth which they find attractive.
• A company advertised eyeglasses in Thailand by featuring a variety of cute animals wearing glasses. The ad was a poor choice since animals are considered to be a form of low life and no self respecting Thai would wear anything worn by animals.
• The soft drink Fresca was being promoted by a saleswoman in Mexico. She was surprised that her sales pitch was greeted with laughter, and later embarrassed when she learned that Fresca is Mexican slang for "lesbian."
• When President George H W Bush went to Japan with Lee Iacocca and other American business magnates, and directly made explicit and direct demands on Japanese leaders, the American representatives violated basic Japanese etiquette. To the Japanese (who use high context language) it is considered rude and a sign of ignorance or desperation to lower oneself to make direct demands. Some analysts believe it severely damaged the negotiations and confirmed to the Japanese that Americans are barbarians.
• U.S. and British negotiators who you might think are the most able to communicate well, found themselves at a standstill when the American company proposed that they "table" particular key points. In the U.S. "Tabling a motion" means to not discuss it, while the same phrase in Great Britain means to "bring it to the table for discussion."
• When Pepsico advertised Pepsi in Taiwan with the ad "Come Alive With Pepsi" they had no idea that it would be translated into Chinese as "Pepsi brings your ancestors back from the dead."
• In Italy, a campaign for Schweppes Tonic Water translated the name into "Schweppes Toilet Water."

So it's important that your actions and words are carefully considered, when dealing with anyone of another culture.  Remember, this is not just about dealing with people in foreign lands; increasingly, individuals from other cultures are all about us, and the sooner we learn how to deal with our "cultural colleagues", the better we will be at expanding into the global business community.

Think about it.

When Location Matters

Hint - it ALWAYS matters!

When businesses go looking for an "ideal" location, you'll often hear that it's all about the quality of the workforce.  While that is always true, it's an oversimplification.

In reality, the workforce is only one of many factors that influence where to locate,, or where to expand. The major factors usually taken into consideration include:

1. Workforce
2. Taxes
3. Economic Incentives
4. Quality of Life
5. Operating Costs and
6. Real Estate

These factors provide business owners with a two level scale of "goodness of fit"

• Quantitative (Demographic, Workforce, Quality of Life) and
• Qualitative (Wages, Taxes, Utility Rates)

The elements also have differing weights, based upon the level of needs.  For example, a a foundry would be looking for a much different skillset, incentive and real estate package than a biotech firm, or a highway construction company.

Workers also look at similar elements when seeking out their future employer.  And they do so on multiple levels (Level 1 - what is important to me for the job I am considering, and Level 2 - once I am ready to change employment again, and wish to stay in the area, what other aspects of the location would compel me to stay in the area?)

Thus, each factor related to attracting and keeping a qualified workforce needs to have a similar perspective (an owners perspective) as well.  Bearing in mind that today we live in a global market for most commodities and skills, it's no longer sufficient to just try to match job titles.  Today's workers understand that they have more options available, so the employers job of "selling" the overall package must reflect these changing times.

The "Perfect Labor Storm" and Why It Isn't Going Away

Among the top experts in the discussion of the "Perfect Labor Storm" is Ira Wolfe, who authored the book by the same title.

The book discusses why the aging workers, retiring baby boomers, rising health care costs, shortages of skilled workers, generational gaps, work ethics (just a few of the workforce demographic and socio-economic events that I discuss on this blog) are colliding to produce the biggest shortage of skilled workers in the United States and many other developed countries.

It's a good read, and worth the time, especially if you're an employer or policy maker.

Here's a synopsis of what you'll find...

Many managers and business owners and even economists and strategists are hoping for a break in the socio-economic "climate" and praying this storm too will pass. Human resource professionals, executives, and managers alike wrongly believe they are the isolated targets of some insidious plot to abscond with their workers or else are just magnets for under-skilled workers with poor work ethics. And not unlike the Andrea Gail which was sucked under by the colossal waves even two days before the full force of the storm hit, their businesses too will sink with this short-sighted, wait-and-see attitude.

All workforce trends indicate future employee shortages will not blow over for decades. Many solutions such as retaining older workers longer are flawed. Since health care and retirement costs explode for workers over age 55, how will businesses afford to insure these workers....and without health care and retirement benefits, why will they work? Even worse the full force of the storm won't hit until the end of this decade.

The Perfect Labor Storm has no industry or geographic boundaries. From plumbers to dental hygienists to teachers to border patrol to radiologists, virtually every industry at nearly every skill and position level is affected by shortages of workers with the right skills and attitudes to do all the jobs.

Is this starting to get you attention?  It should!  Besides Dr Wolfe's book, check out the other parts of this blog to get a better understanding of why this is an issue, and most importantly, what you can do about it.

Where do you think the workers are coming from?

China currently uses half of the world’s production of steel and concrete and will probably construct half of the world’s new buildings over the next decade.

What you might ask is fueling this awesome level of construction activity?  There are actually many factors at work?

• China's increased global visibility, including the WTO, APEC, Olympics, Expo 2010
• Continued GDP Growth – Currently running at 9% plus
• Construction spending growth – running at 8% annually
• An emerging middle class and growing consumer market
• A proactive and supportive Chinese government
• The reality that they have become the “Manufacturers” for The World
  • and that's Manufacturers with a capital M - Some Chinese factories can fit as many as 200,000 workers

What we're seeing is an unprecedented growth in Chinese construction, and construction by Chinese contractors in Asia and Africa, where the Chinese continue to invest heavily, often to secure access to oil and other natural resources China needs to fuel its economic expansion.

The engineers and contractors that we have come to expect to hire, increasingly are eyeing the "red hot" East as the "hot spot" for the AEC industry.  And that implies there will continue to be a diversion of foreign engineering and construction talent to the US that will continue to frustrate US firms trying to recruit talent. SO where will the talent come from that is needed for their business backlog and active projects? 

The Organizations That Continue To Win The “War For Talent” Will Be Based On Many Factors…

The demographics of the global workforce aren’t going to stand still while businesses try to catch up.

This makes having a transparent, consistent and strong employer "brand" essential, because it allows employers to align their talent acquisition and retention strategies to their corporate values. It also allows companies to project into the market a clear image of themselves, which a potential employee can buy-in to.

Whether its encouraging the aging workforce to remain motivated and continue working, whether its making the differentiation between themselves and the competition clearer to the smaller pool of Human Capital that do have the skills and abilities needed, or whether its continuing to drive a volume of employees into specific market sectors - strong recruitment campaigns, imaginative retention strategies, employee engagement initiatives, flexible benefits and work/life balance can be key ingredients in attracting and retaining talent now and into the future.

Not bad for a McJob

One high profile example of a corporation tackling their employer brand head-on is McDonalds, who rely on a steady supply of Human Capital to give their business and their brand life.

After the term 'McJob' appeared in the Oxford English Dictionary, being described as having low pay and poor prospects, McDonalds responded in 2006 with the challenging 'Not bad for a McJob' campaign.

The McDonalds fight-back campaign featured posters including examples of health policies, flexible working hours and prospects for promotion, with the objective of improving their public image as an employer of choice and ensuring their employees felt 'McRespected' and 'McValued'.

McDonalds represents an extreme example, but other companies across the world dedicate much time and resource to winning coveted places in top employer listings, such as the Sunday Times Top 100 Companies to Work For in the UK and the 100 Best Employers to work for in Canada. And, according to Sheffield University, its a case of 'Who Cares Wins' in todays job market.

Where to Find Women Building Bridges

Responding to the London 2012 Olympics and the push to get women into Construction, members of the WorcNet Women’s network, based in Skipton, hosted a “Women Into Construction” seminar at the Craven College Construction Launch event on Monday 5 June.

The seminar included presentations from two women ambassadors from the Construction Industry Training Board. Vicky Belton works as a Civil Engineer and Helen Dickinson as a Quantity Surveyor, they each presented on their journey and experiences as women in the construction industry. Attique Barlas told the audience of a scheme to introduce minority groups and women into construction, offering a four week placement and a guaranteed interview which could lead to a job and further training. Mary Kelly gave a very inspiring talk on the work of the Walter Segal Trust which supports people who are interested in self build opportunities, and Keith and Jane Barber from SHE Build UK told of their business which employs and trains women construction workers for their property management and development company in Bradford.

Members of the North Northumberland and Cumbrian Women’s Networks who travelled down to the Launch event are taking back information to their own networks and local colleges in a bid to establish a similar project in their own areas.

Following the formal launch event, some of the WorcNet members who are currently undertaking a 10 week starter course in construction, hosted an evening dinner at the Rendezvous Hotel for the speakers and the guests from other networks, where they talked about their experiences on the course and their hopes for the future.

WorcNet Co-ordinator Debi Hawkins said “We are really pleased that 11 of our members have taken part in this first Women In Construction course and we are working with the College to progress women into more specialized courses later on in the year. We hope to be running another Women In Construction course from September. We will be having a Women In Construction taster day in September which will include presentations, workshops and hands on activities.”

For more information on WorcNet, the courses or the taster day please contact Debi, Kath or Karen on 01756 692788 or worcnet@craven-college.ac.uk

Here where the new jobs (and job growth) will be

There's a lot projected to happen as relates to skilled jobs, according to a recent report published by the Bureau of Labor Statistics. Among the interesting data of this report:

WHERE THE SKILLED JOBS WILL BE
The Bureau of Labor Statistics projections of employment in 2014 suggest that apart from IT-related occupations, most other scientific, technological, engineering and mathematical (STEM) professions are expected to grow moderately, at rates similar to those for the entire U.S. labor force. Only three specific STEM occupations are expected to actually decline in employment, and all of those projected declines are quite small.
High projected growth rates (20 percent or better):

• Forensic science technicians +36%
• Medical scientists & epidemiologists (summary) +34
• Hydrologists +32
• Biomedical engineers +31
• Computer specialists (summary) +31
• Network systems & data communications analysts +55
• Computer software engineers +46
• Network & computer systems administrators +38
• Database administrators +38
• Computer systems analysts +31
• Computer & information scientists, research +26
• Computer support specialists +23
• Computer specialists, all other +19
• Environmental engineers +30
• Computer & information systems managers +26
• Environmental engineering technicians +24
• Actuaries +23
• Life scientists (summary) +21
• Market and survey researchers (summary) +20
• Other life, physical, & social science technicians +20

Low projected growth rates (five percent or less):

• Sociologists +5
• Statisticians +5
• Architectural and civil drafters +5
• Chemical technicians +4
• Historians +4
• Mathematical technicians +3
• Computer programmers +2
• Electrical and electronics drafters +1
• Petroleum engineers -0
• Mathematicians -1
• Mining & geological engineers, incl. mining safety -2

 

• WOMEN INCREASE IN THE WORKFORCE - Also of note is the projection that over the 2004-14 projection period, the number of women in the labor force is projected to grow by 10.9 percent, faster than the 9.1 percent growth projected for men. As a result, women's share of the labor force is expected to increase from 46.4 percent in 2004 to 46.8 percent by 2014.

• GROWTH OF THE HISPANIC WORK GROUP -“By 2014, the Hispanic labor force is expected to reach 25.8 million, due to faster population growth resulting from a younger population, higher fertility rates, and increased immigration levels.
  
  Despite relatively slow growth, whites will remain the largest group, composing 80.2 percent of the labor force. Blacks will constitute 12.0 percent of the labor force. Asians will continue to be the fastest growing race group, climbing to 5.1 percent of the labor force in 2014.

and finally, a topic we've covered extensively both on this blogspace as well as my speaking engagements around the country:

• CHANGES IN THE MAKEUP OF THE LABOR FORCE -The labor force will change in composition, as a result of changes in both the composition of the population and in the rates of labor force participation across demographic groups. The projected labor force growth will be affected by the aging of the baby-boom generation — persons born between 1946 and 1964.
  
  In 2014, baby-boomers will be ages 50 to 68 years, and this age group will grow significantly over the 2004-2014 period. The labor force will continue to age, with the number of workers in the 55-and-older group projected to grow by 49.1 percent, nearly five times the 10 percent growth projected for the overall labor force. Youths between the ages of 16 and 24.will decline in numbers and lose share of the labor force, from 15.1 percent in 2004 to 13.7 percent in 2014.
  
  Prime-age workers. those between the ages of 25 and 54 also will lose share of the labor force, from 69.3 percent in 2004 to 65.2 percent in 2014. The 55-and-older age group, on the other hand, is projected to gain share of the labor force, from 15.6 percent to 21.2 percent.

Human Capital and the war for talent

What are the factors that will determine the size and makeup of tomorrow's workforce?

It is clear from experience, as well as the vast amounts of information available to employers that the demographics of the global workforce are changing.

Patterns of migration, issues of diversity and social or educational development are presenting employers the world over with an increasingly difficult and important challenge - where their talent will come from in the future.

Watch this space for upcoming posts where we'll deal with these important issues and provide ideas on how employees AND employers can cash in on these changing patterns...

Men at Work - Gimme a Break !?!

Call it my warped sense of irony...

I was driving down the road today and saw the DOT standard "MEN AT WORK" sign, and noted that there were 3 ladies on the work crew.  I wonder how often the average passerby even considers that these are not just MEN at work?

It should not be a surprise that increasingly, smart women are looking to the construction industry as careers.  The pay and benefits in the construction industry are the best in business and industry. Pay is based on knowledge, skills and experience. Additional coursework and degrees from higher educational institutions paves the way to promotions within the industry. And there are more jobs than employees available to fill the many positions in construction. Whether your ambition is to work in an office or in the field, furthering your education is a vital step in getting ahead and staying ahead.

Many women enter the field of construction because their husbands, fathers, brothers or uncles work in construction and they encourage their wives, daughters, sisters and nieces to come into the field with them. Other women start out working in a construction office processing paperwork and then advance into the field and up the career ladder. Still others like the idea of working outdoors, using their hands to build houses, commercial buildings, bridges and highways, supervising projects and providing a good income for their families.

Women can be found working in construction offices or on-site as architects, CAD technicians, interior designers, estimators, project managers and project superintendents. Some women work on surveying crews; others work as building inspectors and plans examiners for municipalities. The possibilities are unlimited.

There are several ways to learn the construction business.

1. On-the-job training and apprenticeship programs have been the traditional route to construction jobs.
2. College programs and courses in construction management, business, drafting, estimating, surveying, civil engineering, and mathematics prepare women for both office and field positions. Some women continue their educations at the university level. Networking with management and leadership groups helps in moving up the ladder.  Many colleges offer certificates and associate degrees in Architectural Drafting, Computer Aided Drafting, Building Safety and Construction Technology, Civil Engineering Technology, Surveying Technology, Construction Management and Welding. (before you laugh at welding - bear in mind that a journeyman welder with O/T can make $120-130k/yr)
3. Want to check out construction from the comfort of your living room?  There are hundreds of "continuing education grade" courses on construction available online.  For example, RedVector has a large library of "fundamentals-level" online courses that will help anyone interested become familiar with the concepts and language of construction.
4. Another resource is the Arizona State University, Del E. Webb School of Construction that offers a bachelor of science degree in Construction. Starting wages average $50,000 per year.

Looking for change and a career with a long-term future?  Check out these resources...

Hiring Foreign Nationals: A Visa Programs Primer

In many situations, you may not be able to find "local" talent to fill a skilled labor requirement.  Obviously, there are a number of "alternative sources" from which you can source these needed skillsets.  When considering bringing in foreign workers, you and your team need to be aware of the myriad requirements, laws and issues associated with bringing foreign workers on board.

The good folks over at BLR (Business & Legal Reports) have provided a great source of information to help keep you out of hot water.  Their HR Daily Advisor newsletter, which provides in-depth professional guidance to those in the talent business, published a recent article you will not want to miss.

Entitled, "Hiring Foreign Nationals: A Visa Programs Primer", this great article will provide you useful information, including perspectives on your talent acquisition policies and procedures when it comes to hiring foreigners.

Check out this information, it can keep you out of trouble.

Webinar Annouoncement - OCT 17 - The Cost of Dropping Out: The Effects of the High School Drop Out Rate on America's Competitiveness

This is a "MUST ATTEND" for anyone concerned about the effect of dropouts on our skilled workforce.

This session, The Cost of Dropping Out: The Effects of the High School Drop Out Rate on America's Competitiveness, includes an Introduction to Education Day and Opening remarks by Emily Stover DeRocco, Assistant Secretary for the Employment and Training Administration (ETA), and Mason Bishop, Deputy Assistant Secretary for ETA. Panelists will include: Paul Harrington, Professor, Center for Labor Market Studies, Northeastern University (Boston, MA) and Martin Bean, General Manager of Worldwide Education Strategy, Products, and Solutions, Microsoft, Incorporated. Microsoft, Inc. will discuss the 21^st century global economy demands for a more highly educated workforce and the effects of our high drop-out rate on America's ability to compete.   

                     

Presenters:	Emily Stover DeRocco, Assistant Secretary, Office of the Assistant Secretary, Employment and Training Administration Paul Harrington, Professor, Center for Labor Market Studies, Northeastern University, Boston, Massachusetts Martin Bean, Vice President, Educational Programs, Microsoft, Incorporated
Moderator:	Mason Bishop, Deputy Assistant Secretary, Office of the Assistant Secretary, Employment and Training Administration
Date:	10/17/2007
Time:	11:00am Eastern   (10:00am/Central,   9:00am/Mountain,   8:00am/Pacific)
Length:	90 minutes

 

Register Now!!!
Registration for this Webinar is limited and seating is on a first-come, first-served basis. Please click the link below to login to Workforce³ One and register today! 

http://www.workforce3one.org/public/webinars/details.cfm?id=234          

If you are deaf, hard-of-hearing, or have speech disabilities and captioning would facilitate your participation in this Webinar, you can register for captioning service through the Federal Relay Conference Captioning. Please note the Federal Relay Service requires at least 48 hours notice (2 working days) to guarantee coverage. For more information, visit

 

http://www.workforce3one.org/support/index.cfm?id=940.                    

               

Population Trends and How They Play Into the Skilled Labor Shortage

One of the components that factors into the skilled workforce is, the availability of human workers.  Before you accuse me of being provincial, let me clarify.  If you do not have an increasing population base, and you do not have educated and skilled talent being developed in the population base, and demand increases, you will have a shortage.

Thus, it first takes a certain level of population growth to provide a foundation for an adequate skilled workforce.

According to US Census (domestic and international data), the developed countries in the world are all experiencing a population growth deceleration.  What this means is that there are fewer net people to develop into skilled workers.

Many parts of the world already face declining populations, sometimes due to too much of a good thing (the combination of economic development, women's education and easily accessible birth control that we see in western Europe and Japan).

Sometimes for more unpleasant reasons (totalitarian controls, war, hunger, disease, environmental pollution or simply a cost of living that discourages having children) the population is declining.

Add to this, the reality that in many parts of the world life expectancy has significantly increased.  Consider that, according to the U.S. Census Bureau, in 1900 the life expectancy of the average American was 47 years, and by 2000 it had jumped to 74.6 years.  That's a lot of older Americans that will require care.

Conversely, between 1960 and 2000 the birth rate fell by 40%.  And we're not alone, other industrialized countries have seen a birth rate decline of 60% or more during the same period.

This represents a reality that we will have to live with.  Let's get used to our "new future"...

Its All About the Talent

FMI Corp's,  Ron Magnus, who heads their Talent Development division dropped me an email recently, alerting me to a new Construction Industry report on Talent Development that FMI has just published.

By 2008, it's an accepted fact that a wealth of skills and experience will disappear from the job market as the first members of the Baby Boom generation reach average retirement age. Talent development will become a critical strategic objective and differentiator for any competitive organization.

Magnus reaffirms that in order to remain successful in the knowledge-based, global economy building and construction firms must continually invest in their human capital. 

1. This is a great report, well worth your time, in a easy to read format. Click here Download USTReport2007.pdf for a copy. 

 

Why Do Women Only Represent 9% of the Engineering Workforce?

A report published by the American Society for Engineering Education paints a picture that should concern for all Americans.  While women represent 56% of  total U.S. undergraduate enrollment across all fields of study, Undergraduate engineering enrollment, is only 17% of the total at 366,361 in 2005, according to the ASEE study

Today, women represent only 9% of the Engineering workforce. 

There's a lot of good programs underway to turn this situation.  Women-in-engineering (WIE) programs, and the Society of Women Engineers (SWE) student chapters, other support mechanisms provide:

•   Outreach/ K-12 education
•   Learning and/or living communities
•   Forums for discussing concerns/questions
•   Connection with role models in academia, industry, government
•   Mentoring (peer and professional-student)
•   Advising
•   Professional development and career guidance

It's premature to call this game before all of the innings have played out.  Never before have the prospects for women in engineering been better, nor have there been a stronger advocacy and support system available.  Let's get the word out.

The Engineering Workforce Commission also cites decreasing female enrollments since 2001; enrollment numbers remain virtually unchanged since 1984, and although Doctoral degrees have recently increased, these gains are being undercut by decreasing B.S. enrollments in Engineering.

Tougher US immigration leading to 'reverse brain-drain': study

The huge backlog in US immigration visas is leading to a "reverse brain-drain" that will force skilled workers to return to their home country, a report released Wednesday concludes.

read more | digg story

Women to overtake men by 2012

Citing better exam results that will catapult them to top at work , writer John Walsh of the Irish Independent wrote that women are well poised to take over the majority of top jobs in business, law, finance and the sciences within the next five years. And it's all because they are staying in education longer and getting better results than men.

The projections are made in a joint report from FÁS and the Economic and Social Research Institute which looks at the likely share-out of jobs by 2012. Just over a quarter of females will have degrees by then compared with only a fifth of men. A further 15.4 percent of females are expected to have attained diploma/certificate level compared with only 9.5 percent of men.

By contrast, nearly a fifth of men (18.9 percent) will drop out of school with only a Junior Certificate. Just 11.4 percent of women, however, will drop out at Junior Certificate level. Women tend to concentrate in clusters of occupations while men are in a greater range of jobs, some of which face uncertainty. The most obvious is construction where most workers are male. And the report, written by Dr Pete Lunn, Prof Gerry Hughes and Ms Nicola Doyle, suggests males workers would be more exposed if there were negative shocks to the housing market and the construction sector in general.

It predicts that, in the medium-term, overall jobs growth will be greatest in occupations that require third-level qualifications and high skill levels. Professional, associate professional and managerial occupations are expected to grow by more than 20 percent relative to 2005 figures. Outside of these high-skill occupations, some personal services occupations, including caring occupations such as childcare, are likely to experience similar expansion. Highest growth is expected in business, financial and the legal professions, where numbers are predicted to rise by nearly 50 percent.

Other occupations forecast to expand are managers and highly qualified workers in health, education and science. The report expects that two thirds of the health and education professions will be populated by female workers in 2012 - in fact 8.5 percent of all female workers will be in one or other of these areas. At present, around half of business, legal and other professionals such as psychologists, actors and information officers are women but the report predicts that their share will increase to 55 percent in the next five years.

In the case of science professionals, the report expects that women will account for 58.5 percent by 2012 compared with 41.5 percent in 1998. The category includes chemists, physicists and pharmacists. However, the proportion of women engineers, including software engineers, is expected to drop. This reflects the recent decline in numbers of females entering related courses. An area where women seem to be heading towards equality with men is management. In 1998, a third of managers were women but this is expected to reach 46.9 percent in five years.

However, Dr Lunn stressed this did not necessarily mean women were breaking through the 'glass ceiling' to the board room - it could simply be that more were being appointed to middle management and supervisory levels.

Critical Worker Shortage Issue - Current Warzones

Despite the much publicized effects of the "surge" in Iraq, our combat troops are having a tough time in the middle east warzones.  And it is affecting warfighter recruitment and retention in a significant way.

Reuters June 4 headlines reported: “U.S.-led soldiers control only about a third of Baghdad, the military said on Monday.  The troubling article cites ”After five years of war the US controls one-third of one city and nothing else".  This serious situation, according to a host of US commanding generals is depleting the resourses of the US military. A year ago Colin Powell said that the US Army is “about broken.” Gen. Barry McCafrey testified to the US Senate that without a change in strategy, “the Army will unravel.”

Col. Andy Bacevich, a renowned writer on military affairs, highlights the severity of how this protracted multi-theater war has depleted and exhausted the US Army and Marine Corps:

“Only a third of the regular Army’s brigades qualify as combat-ready. In the reserve components, none meet that standard. When the last of the units reaches Baghdad as part of the president’s strategy of escalation, the US will be left without a ready-to-deploy land force reserve.”

“The stress of repeated combat tours is sapping the Army’s lifeblood. Especially worrying is the accelerating exodus of experienced leaders. The service is currently short 3,000 commissioned officers. By next year, the number is projected to grow to 3,500. The Guard and reserves are in even worse shape. There the shortage amounts to 7,500 officers. Young West Pointers are bailing out of the Army at a rate not seen in three decades. In an effort to staunch the losses, that service has begun offering a $20,000 bonus to newly promoted captains who agree to stay on for an additional three years. Meanwhile, as more and more officers want out, fewer and fewer want in: ROTC scholarships go unfilled for a lack of qualified applicants.”

Without getting into the snare of political assessment, it becomes clear that fighting this war is having a significant effect on our warfighters in combat, the legions of military and civilian professionals working on retention and recruitment.  And in many cases without significant result.

This is not an academic exercise, as we're talking about real lives, and affects us in the battlefield, as well as our communities at home.  The "war for talent" in this case, is an actual war, the consequences of not winning are not ones we want to consider.

The Hottest Jobs (for College graduates)

According to Parade magazine, there are plenty of good paying jobs in HIGH DEMAND in today's market for graduates:

Forensic accountant
Combines accounting, auditing and investigative skills: $30,000-$150,000

Logistics manager
Plan, implement and control flow of goods or services: $35,000-$118,000

Corporate librarian
More companies need specialists to manage information: $37,000-$93,000

Emerging media specialist
Managers in Web content and online marketing need communication skills and tech savvy: $26,500-$100,000

Physical therapist
Aging baby boomers will drive the increasing need: $34,600-$74,000

Information security
Workers plan, implement and support network security: $47,000-$122,000

Source: Challenger, Gray & Christmas Inc., with data provided by the Bureau of Labor Statistics and industry sources

If you're looking for work, these folks are hiring...

In case you haven't been keeping up with current events in the global workforce, the hottest job market in construction in the world right now is not in China, but in Dubai in the United Arab Emeriates.

At this time, Dubai is said to currently have 15-25% of all the world's cranes.  And what are these cranes building you might ask?  Well, here are a few of the projects on the boards:

The Dubai Waterfront.  When completed it will become the largest waterfront development in the world.

The Palm Islands in Dubai. New Dutch dredging technology was used to create these massive man made islands.  They are the largest artificial islands in the world and can be seen from space.  Three of these Palms will be made with the last one being the largest of them all. 

Upon completion, the resort will have 2,000 villas, 40 luxury hotels, shopping centers, movie theaters, and many other facilities. It is expected to support a population of approximately 500,000 people.  It is advertised as being visible from the moon.

The World Islands.  300 artificially created islands in the shape of the world.  Each island will have an estimated cost of $25-30 million.

The Burj al-Arab hotel in Dubai. The worlds tallest hotel.  Considered the only '7 star' hotel and the most luxurious hotel in the world.  It stands on an artificial island in the sea.

Hydropolis, the world's first underwater hotel.  Entirely built in Germany and then assembled in Dubai, it is scheduled to be completed by the end of 2006.

The Burj Dubai.  Construction began in 2005 and is expected to be complete by 2008.  At an estimated height of over 800 meters, it will easily the be world's tallest building when finished.  It will be almost 40% taller than the the current tallest building, the Taipei 101.  Fifty stories (around 190 meters) of the Burj Dubai have already been completed.

The Al Burj.  This will be the centerpiece of the Dubai Waterfront.  Upon completion it will rival The Burj Dubai for the title of tallest building in the world.  The exact height of the building is being kept strictly confidential for reasons of competition.  Since the Al Burj and Burj Dubai are both striving to become the world's tallest building, it is rumored that the Al Burj will be built a little higher since the Burj Dubai will be completed first. 

The Burj al Alam, or The World Tower.  Upon completion it will rank as the world's highest hotel.  It is expected to be finished by 2009. At 480 meters it will only be 28 meters shorter than the Taipei 101.

Dubailand.  Currently, the largest amusement park collection in the world is  Walt Disney World Resort in Orlando, which is also the largest single-site employer in the United states with 58,000 employees.  Dubailand will be twice the size of Walt Disney World.  Dubailand will be built on 3 billion square feet (107 miles^2) at an estimated $20 billion price tag.  The site will include a purported 45 mega projects and 200 hundred other smaller projects. 

Dubai Sports City.  A huge collection of sports arenas located in Dubailand.

Currently, the Walt Disney World Resort is the #1 tourist destination in the world.  Once fully completed, Dubailand will easily take over that title since it is expected to attract 200,000 visitors daily.

Ocean Heights and The Princess Tower , two huge luxury condominium and apartment towers to be built on the Dubai Marina.  At over 100 stories tall, The Princess Tower will become the largest residential building in the world after construction is done.   

The Dubai Marina is an entirely man made development that will contain over 200 highrise buildings when finished.  It will be home to some of the tallest residential structures in the world.  The completed first phase of the project is shown. Most of the other high rise buildings will be finished by 2008.   

The Dubai Mall will be the largest shopping mall in the world with over 9 million square feet of shopping and around 1000 stores.  It will be completed in 2008. 

Ski Dubai, which is already open, is the largest indoor skiing facility in the world. 

Some of the tallest buildings in the world will line the Dubai Marina.

The UAE Spaceport would be the first spaceport in the world if construction ever gets under way.

The Dubai Metro system, once completed, will become the largest fully automated rail system in the world.

The Dubai World Central International Airport will become the largest airport in size when it is completed.  It will also eventually become the busiest airport in the world, based on passenger volume.

There are currently more construction workers in Dubai than there are actual citizens (although Dubai does has a 80% expatriate population).  And they don't have nearly enough to fill the demand.  The only downside - labor problems seem to be widespread and wages and safety aren't up to U.S. standards, so don't say I didn't forewarn you.

Why don't we invest enough in Workforce Training and Development?

Do you ever wonder why there seems to be so much talk about workforce development and training and so little evident action?  So did Anthony Carnevale who  wrote an excellent article in the "Brookings Review" entitled "Much Ado About Job Training."   He observed that for all the talk, that training consistently seems to loom far larger in policy talk than in public budgets.

Among the interesting insights he addressed regarding the situation was the sidebar that contrasts US behaviors with the approach being used successfully in Europe.

In Europe, labor unions, private corporations, and governments collaborate in an apprenticeship system to provide real training for real jobs.  But workforce development in the United States cannot be modeled on that system. In the first place, U.S. unions aren’t strong enough. Nor are American employers likely to take on big new training responsibilities when cutting costs and increasing flexibility are primary competitive assets.

More fundamentally, the European apprenticeship systems are rooted in political agreements and a popular solidarity absent from the individualistic and diverse
U.S.society.

Because European welfare states guarantee extensive income and basic social benefits, they have powerful incentives to educate and train everybody so that each worker will be sufficiently productive to justify the fixed costs of wage and benefit guarantees.

The United States has no such incentives for universal training investments. Here, the brutal efficiency of the American workforce development system discourages universal policies, and individuals pay the price of education and training failure.

Moreover, the more flexible American labor market appears better suited to meet the challenges of global trade and economic restructuring than the highly regulated labor markets that undergird Europe’s training system.

At the end of the day, what we can do, is determine if we can adapt any of these practices, because time is quickly running out.  Already many industries cite inability meeting their objectives due to lack of having a competent and motivated workforce. 

Maybe it's not too late to lose our pride and take a look over our shoulders to see if we can learn from those who have started to figure some of this out.