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Labor Shortage Woes?
- 1. Your Trusted Partner in Learning & Development H O I S T I N G | M O B I L E E Q U I P M E N T | I N D U S T R I A L S A F E T Y I N D U S T R I A L T R A I N I N G I N T E R N AT I O N A L | i t i . c o m
- 2. The trusted advisor and learning solution provider of 1,000+ customers regarding hoisting, mobile equipment and safety topics. 1 Methodology & Learning Platform 3 Companies in the USA, Canada & UK 20+ Instructors & Technical Consultants 70+ Team Members 30+ Instructor-Led Courses 2,000+ Online Learning Titles 30+ Virtual Reality Titles 1,300+ Virtual Reality Scenarios 88%+ Net Promoter Score ANSI Accredited Certification Body Who are we?
- 3. A Trusted Advisor of Global Industry Leaders
- 4. Powering Hoisting & Transport People Learning Hub
- 5. Got labor shortage woes?
- 9. 1980: 91% 2022: 86% 2.7M Male Workers are on the sidelines
- 10. Wage Inequality and the Rise in Labor Force Exit: The Case of US Prime-Age Men - Federal Reserve Bank of Boston (bostonfed.org) What is going on? • Male Labor Participation Rate down to 86% (vs. 91% in 1980) • Female Labor Participation Rate up to 75% (vs. 60% in 1980) • Non-college-educated men’s median weekly earnings fell 17% between 1980-2019 (college-educate men up 20%) Why? (Hypotheses) • Offshoring jobs / globalization • Deteriorating social status and substance abuse; video game abuse • Living on spouse or parent income
- 12. 16% of total private employment in the USA, is in the Construction and Manufacturing sectors.
- 13. 16% of total private employment in the USA, is in the Construction and Manufacturing sectors. Through 2040, US population is projected to grow by 13% to 370 million (87% urbanized), requiring substantial investment in construction and manufactured goods.
- 14. What’s the good news?
- 21. How can people committed to the workforce support construction and manufacturing workers with specialized job skills, but not a traditional four-year degree?
- 23. A Framework for the Labor Shortage Problem Set & Solutions
- 24. A Framework for the Labor Shortage Problem Set & Solutions
- 25. Problems • Training models are not in sync with what industry needs 1. Integrated Training Models Solutions • Provide on-the-job opportunities for high school students • Develop partnerships with community/technical schools • Joint labor-management & apprenticeship programs • Demand-driven curricula: employer-aligned skills • Experiential learning models such as pre- apprenticeship, apprenticeship, and integrated training facilities • New modes of learning such as virtual reality and simulation
- 26. 2. Change Narratives Problems • Construction and manufacturing are perceived as low-tech, dangerous, dirty Solutions • Employers and workers need to adopt new technologies • Adopt and communicate values of continuous learning and skills upgrades to workforce and candidates • Mike Rowe, Dozer Days, You!
- 27. 3. Agile Credentialing Problems • Significant variety, volume, and all-or-nothing training and credentials exist Solutions • Clarify skill and competency requirements • Adopt micro-learning “merit badges” or qualifications so it is clear what the credential is • Adopt standards-based, nationally portable, industry-recognized training, certifications, and credentials
- 28. LOGBOOK • 46 hrs. Mobile Cranes • 92 hrs. Tractor Trailer • 31 hrs. Forklift/Telehandler • 12 hrs. MEWP INSTRUCTOR EVALUATION • 100% Attendance • 95% Safety Score • 97% Quality Score • 100% Ideal Team Player Score Evan Wayne TRANSCRIPT • OSHA 10 CERTIFICATION • Basic Rigging Course • CCO Rigger I Certification • Mobile Crane Operator Course • CCO Crane Operator Certification
- 29. LOGBOOK • 46 hrs. Mobile Cranes • 92 hrs. Tractor Trailer • 31 hrs. Forklift/Telehandler • 12 hrs. MEWP INSTRUCTOR EVALUATION • 100% Attendance • 95% Safety Score • 97% Quality Score • 100% Ideal Team Player Score Evan Wayne Evan Wayne Hi Evan, I see you are graduating soon from CREWTEK’s program. I’d like to interview you for a position we have available in Seattle, Dallas and Phoenix. Are you available next Friday or Saturday?
- 30. 4. Improve Visibility to Jobs & Pathways Problems • Workers don’t know what their career progression options are • Workers don’t know what training and experience is required to progress Solutions • Post entry-level jobs and link to future roles • Adopt common language and terms for hiring requirements • Adopt integrated platforms that help workers access and compare job opportunities
- 31. Only 36% of entry-level job postings are available online! 22% of entry-level job candidates have a longer job search than 3 months.
- 32. 4. Improve Visibility to Jobs & Pathways Problems • Workers don’t know what their career progression options are • Workers don’t know what training and experience is required to progress Solutions • Post entry-level jobs and link to future roles • Adopt common language and terms for hiring requirements • Adopt integrated platforms that help workers access and compare job opportunities
- 33. 4. Improve Visibility to Jobs & Pathways Entry-Level Roles Crane & Rigging Trainee Equipment Operation Journeyman Crane Operator RT Crane Operator Crawler Crane Operator Goldhofer Operator Field Leader Ironworker Journeyman Ironworker Rigging Foreman Lift Director Rigging Superintendent Field Leader Project Management Project Sales Sales Manager Sales Director Dispatcher Sales Technician Branch Manager Project Manager Regional Manager Operations Director Safety Site Safety Rep Regional Safety Manager Safety Director Technician Trainee Equipment Management Crane Mechanic Maintenance Manager Fleet Director Driver Trainee Heavy Haul & Transport ELD & CDL Heavy Haul Driver Heavy Haul Manager
- 34. 4. Improve Visibility to Jobs & Pathways Entry-Level Roles Crane & Rigging Trainee Equipment Operation Journeyman Crane Operator RT Crane Operator Crawler Crane Operator Goldhofer Operator Field Leader Ironworker Journeyman Ironworker Rigging Foreman Lift Director Rigging Superintendent Field Leader Project Management Project Sales Sales Manager Sales Director Dispatcher Sales Technician Branch Manager Project Manager Regional Manager Operations Director Safety Site Safety Rep Regional Safety Manager Safety Director Technician Trainee Equipment Management Crane Mechanic Maintenance Manager Fleet Director Driver Trainee Heavy Haul & Transport ELD & CDL Heavy Haul Driver Heavy Haul Manager
- 35. 4. Improve Visibility to Jobs & Pathways Entry-Level Roles Crane & Rigging Trainee Equipment Operation Journeyman Crane Operator RT Crane Operator Crawler Crane Operator Goldhofer Operator Field Leader Ironworker Journeyman Ironworker Rigging Foreman Lift Director Rigging Superintendent Field Leader Project Management Project Sales Sales Manager Sales Director Dispatcher Sales Technician Branch Manager Project Manager Regional Manager Operations Director Safety Site Safety Rep Regional Safety Manager Safety Director Technician Trainee Equipment Management Crane Mechanic Maintenance Manager Fleet Director Driver Trainee Heavy Haul & Transport ELD & CDL Heavy Haul Driver Heavy Haul Manager
- 36. 4. Improve Visibility to Jobs & Pathways Entry-Level Roles Crane & Rigging Trainee Equipment Operation Journeyman Crane Operator RT Crane Operator Crawler Crane Operator Goldhofer Operator Field Leader Ironworker Journeyman Ironworker Rigging Foreman Lift Director Rigging Superintendent Field Leader Project Management Project Sales Sales Manager Sales Director Dispatcher Sales Technician Branch Manager Project Manager Regional Manager Operations Director Safety Site Safety Rep Regional Safety Manager Safety Director Technician Trainee Equipment Management Crane Mechanic Maintenance Manager Fleet Director Driver Trainee Heavy Haul & Transport ELD & CDL Heavy Haul Driver Heavy Haul Manager
- 38. Yard Associate Program IUOE
- 40. 5. Shift Corporate Values Problems • Historical values of automate, use less people, lower costs Solutions • Treat workers as a center of value • Make Employee Learning & Development a Core Competency • Workforce is incorporated into workforce development and technology adoption decisions
- 41. Top reasons employees leave their jobs: 22% Lack of Career Development 12% Lack of Work-Life Balance 11% Their Manager’s Behavior 9% Unsatisfactory Compensation
- 42. 5. Shift Corporate Values Problems • Historical values of automate, use less people, lower costs Solutions • Treat workers as a center of value • Make Employee Learning & Development a Core Competency • Workforce is incorporated into workforce development and technology adoption decisions
- 44. Primary Factors of Learning Organization Success Strategic Alignment • Leaders Aligned on Desired Outcomes • Prioritize Roles & Learning Paths 70:20:10 Model • Learning Paths + Experience Plans • Training + Experience = Retention • Mentorship & Field Evaluations Content • Off-the-Shelf Content • High Quality + All Delivery Methods • Content Creation Tool Reporting & Continuous Improvement • Simple Measures to Managers • ROI
- 45. 70:20:10 Model of Learning • How do people learn to do their job well? • 70% through on-the-job experiences • 20% through peer-to-peer • 10% through formal training • Ebbinghaus Forgetting Curve – We forget 50% within 1 hour without practice. • Overcomes 2 Major Challenges: Costs & Timeliness • Managers & HR create learning experience plans (Learning Paths) • Employee becomes a responsible partner in their training and development by Pulling* Any Channel Any Time All the Resources Mobile Device & Tablet At Work Search eLearning Computer On the Move Assessment Video Center Face-to-Face At Home Mentors, Peers, Managers Knowledge Base/Support *YouTube – How to replace dishwasher drain hose?
- 46. What are the major L&D processes an organization needs to do well?
- 47. Learning & Development Process Desired Outcomes On-Boarding/ Upskilling • All-hands assignments • Field team assignments • Business team assignments • Department/Role specific procedures (e.g., BKM) • Increase speed of employee competency/retention • Reduce incident rate • Share learning responsibility with new hire • Screening process to exit low performers • Simple to administer and for learner • Fun and engaging for learner Compliance • Forklift Operator, Signalperson • OSHA 10, HAZMAT, DOT • Sexual Harassment • IT Security • Efficiently optimize compliance (e.g., off-the-shelf content during downtime) • Documentation – simple and accessible Professional Development • Continuous Improvement • Career Pathing • 20T Boom Truck to 100T RT • Increase competency bench strength • Increase employee engagement, morale and retention Event-Triggered • Site safety orientations • Customer requirements (CCO Rigger II) • Post-incident remediation • Lower training costs • Proactively prepared for triggered training requirements Organizational Health & Clarity • Culture, Values, Strategy • All-hands communications • Improve clarity of purpose, values, direction • Improve communication and trust
- 48. 6. Address Needs of Small/Med. Enterprise Problems • Slow technology adoption • Labor shortage is perceived as a problem that can’t be solved • Talent management is not treated as a priority for the core business
- 49. “The entire recruiting strategy and business model is based on the fact that people will be there their whole life and that HR is the part of the business responsible for ensuring the organization has the right skills. The world isn’t like that anymore.” — Expert interview, Construction and Manufacturing
- 50. 6. Address Needs of Small/Med. Enterprise Solutions • Associations and industry groups can improve communications of best practices and software adoption • SMEs generally need to invest more time and resources into improving its talent management processes Problems • Slow technology adoption • Labor shortage is perceived as a problem that can’t be solved • Talent management is not treated as a priority for the core business
- 51. 7. Address “social determinants of work” Problems • Healthcare and portable benefits • Criminal justice system and employability • Early childhood education 8. Promote cross- sector collaboration Problems • Lack of collaboration between K-12, post-secondary, government funding, and industry
- 52. A Framework for the Labor Shortage Problem Set & Solutions
- 54. Building the Crane, Rigging & Equipment Workforce Job-Ready Skills | Character & Life Skills | Career Placement crewtek.org a 501(c)3 nonprofit organization
- 56. Why do we exist? To serve and learn, everyday. What is our Mission? To recruit, prepare and place the next generation of skilled workers. Core Values • Heart of a Servant • Decisions of a Steward • Lifelong Learner What do we do? We prepare people with engaging and important learning experiences, to enter a meaningful career conducting crane, rigging and heavy equipment-related activities.
- 57. Programs • Crane & Rigging Trainee • Overhead Crane Technician Trainee • Mobile Equipment Technician Trainee • Tower Crane Technician Trainee Student Tuition Options • Employer Scholarships & Loans • Employer Tuition Reimbursement Plans • Government Grants & Loans (e.g., GI Bill) • Private Pay & Loans Career Partner Program • Access to vetted entry-level talent Initial Locations • Woodland, WA • Houston, TX Programs
- 58. Our Commitment to You • We will provide you with career counseling to determine if you are a good fit for a CREWTEK program and related career • We will teach you skills that are in demand today, and set you on a flexible career path allowing you to grow into various roles • We will with connect you with employers nationwide so you can make the best choice for your career We are a steward of your career
- 60. Career Partner Program Help us design a Career Partner Program that helps you shrink the skilled labor gap. Here’s what we have in the works… • Recruiter access to CREWTEK students and alumni • CREWTEK webpage featuring your company, entry-level job titles, and benefits such as tuition reimbursement • Your jobs posted on the CREWTEK job board • Annual scholarships named after your company Here are other partnership opportunities: • Career Curriculum Program Advisory Board • Provide tax-deductible grants, scholarships, classroom sponsorships, equipment and tools If you’d like to get involved, or have other ideas, please contact James Grover, Executive Director, CREWTEK at
- 61. 1 – Proactively View All ITI Career Student Profiles Online • Transcript – All coursework, certifications, licenses • Logbook – All hours logged per equipment type and work activity • Attendance History – Program attendance (On-Time, Late, Absent) • Instructor Evaluation – Qualitative evaluation by ITI instructors • Financial Aid Status – Payment method (open to employer loan) • Other Relevant Experience & Education • Career Preferences – Where to live? Amount of Travel? 2 – Communicate Online with Students & Interview • Fridays & Saturdays set aside for virtual/in-person interviews • All messaging on Tallo from Recruiter to Student Career Partner Program – Recruiting
- 62. Aerospace Construction (AEC) Defense Departments Energy Departments (Nuclear Labs) Manufacturing (Capital Goods) Maritime/Ports Mining – Open-Pit Mining – Deep-Shaft Oil & Gas – Upstream/Midstream Oil & Gas/Petrochemical Plants – Downstream Offshore Power Generation – Coal Power Generation – Hydro Power Generation – Nuclear Power Generation – Solar Power Generation – Wind Pulp & Paper Railroad Shipyards Steel Unions & Schools Utilities – Electricity Blue Origin, Boeing, Raytheon, Lockheed Martin, ULA Bechtel, Fluor, Kiewit, PCL, Walsh Group, Mortenson, RES Group US Naval Shipyards, US Naval Nuclear Refueling Laboratories, US Air Force Los Alamos, Sandia, Jefferson, INL, LLNL Siemens, GE, Vestas, GM, Ford, Toyota, Caterpillar, John Deere, TD Williams NOAA, Hawaiian Dredging, Ports America, SSA Marine Suncor, Syncrude, Rio Tinto, BHP Billiton Hecla, Dominion Diamond, Rio Tinton, BHP Billiton, De Beers, Anglo American Shell Upstream Americas, KinderMorgan, TransCanada Shell, BP, LyondellBasell, Koch Industries, ExxonMobil McDermott, TechnipFMC, Subsea7 TVA, AEP, Capital Power, Exelon, Constellation Energy, Xcel Energy BPA, NYPA, USACE, USBR Exelon, TVA, Southern Company, South Texas Project, PG&E, Entergy MidAmerican Renewables, NRG Xcel, MidAmerican, TVA, Basic Electric International Paper, Kimberly-Clark, Georgia Pacific BNSF, Canadian Northern, Canadian Pacific Huntington Ingalls, BAE, Seaspan, General Dynamics, Bollinger Shipyards, Bath Access to Thousands of Hiring Employers
- 65. Recruiting • Recruit new hires directly from Programs Existing Employee Apprenticeship Training • Assign your employees into Programs Career Partner Program Job-Ready Skills | Character & Life Skills | Career Placement The ITI Foundation Career School, is conceived as a 501(c)3 non-profit entity, that prepares trainees for careers conducting crane, rigging and specialized transport activities. CREWTEK
- 66. 1 – Proactively View All ITI Career Student Profiles Online • Transcript – All coursework, certifications, licenses • Logbook – All hours logged per equipment type and work activity • Attendance History – Program attendance (On-Time, Late, Absent) • Instructor Evaluation – Qualitative evaluation by ITI instructors • Financial Aid Status – Payment method (open to employer loan) • Other Relevant Experience & Education • Career Preferences – Where to live? Amount of Travel? 2 – Communicate Online with Students & Interview • Fridays & Saturdays set aside for virtual/in-person interviews • All messaging on Tallo from Recruiter to Student Career Partner Program – Recruiting Job-Ready Skills | Character & Life Skills | Career Placement The ITI Foundation Career School, is conceived as a 501(c)3 non-profit entity, that prepares trainees for careers conducting crane, rigging and specialized transport activities. CREWTEK
- 68. LOGBOOK • 46 hrs. Mobile Cranes • 92 hrs. Tractor Trailer • 31 hrs. Forklift/Telehandler • 12 hrs. MEWP INSTRUCTOR EVALUATION • 100% Attendance • 95% Safety Score • 97% Quality Score • 100% Ideal Team Player Score Evan Wayne
- 69. LOGBOOK • 46 hrs. Mobile Cranes • 92 hrs. Tractor Trailer • 31 hrs. Forklift/Telehandler • 12 hrs. MEWP INSTRUCTOR EVALUATION • 100% Attendance • 95% Safety Score • 97% Quality Score • 100% Ideal Team Player Score Evan Wayne Evan Wayne
- 74. CREWTEK Summary of Benefits • Direct Recruitment of Students with a Tallo Account for your organization so that your Recruiters can view/recruit ITI Career Students, and 1 Million+ other users on the platform • Website Listing displaying your organization on the ITI Career website so students can research your organization and see which positions or apprenticeships they are eligible to apply for aligned with ITI Program completion. • You are qualified to apply for: • Oiler • Rigger Apprentice • Lifting & Transport Trainee • Technician Apprentice Career Partner Program – Recruiting Job-Ready Skills | Character & Life Skills | Career Placement CREWTEK, is a 501(c)3 non-profit entity, that prepares trainees for careers conducting crane, rigging and specialized transport activities.
Editor's Notes
- Why did so many US men stop working? Economists have long put much of the blame on the offshoring of manufacturing jobs to China, a trend that picked up steam in the early 2000s after China joined the World Trade Organization, Begley and Colyar note. A 2021 study by the Federal Reserve Bank of Richmond also cites a rise in male substance abuse and even heavy video game use.
- Another study several months ago by the Federal Reserve Bank of Boston cites a less obvious reason: Non-college-educated men have left the labor force in greater numbers as the shortfall in their wages compared with those of college-educated men has increased, the study says. From 1980 to 2019, non-college-educated men’s median weekly earnings fell 17% after adjusting for inflation, while pay for their college-educated counterparts increased by 20%. “This finding suggests that deteriorating social status is a plausible key factor,” the Boston Fed paper concluded. In other words, the lower self-esteem associated with a lower social status has caused some men to simply drop out rather than cope with the stress. It’s unclear how they’re generating income, but some may be relying on a spouse’s earnings or doing occasional work that’s not recorded by Labor Department surveys. Other men leave the labor force to go back to school and bolster their skill set, while still others are hampered by a disability, the paper said.
- Rainer Strack https://www.ted.com/talks/rainer_strack_the_surprising_workforce_crisis_of_2030_and_how_to_start_solving_it_now?language=en By 2030, 40% developed economy skilled labor workforces (construction, operations, maintenance) are retiring. Crane operator jobs are projected to grow 8.6% during the next 10 years. Crafts that require rigging and signalperson to grow on average 13% during the next 10 years.
- How can actors committed to the American workforce support US-based construction and manufacturing workers with specialized job skills but not a traditional four-year degree?
- There are over 4,000 colleges and universities in the United States, but Harvard Business School professor Clayton Christensen says that half are bound for bankruptcy in the next few decades. Christensen is known for coining the theory of disruptive innovation in his 1997 book, “The Innovator’s Dilemma.” Since then, he has applied his theory of disruption to a wide range of industries, including education. In his recent book, “The Innovative University,” Christensen and co-author Henry Eyring analyze the future of traditional universities, and conclude that online education will become a more cost-effective way for students to receive an education, effectively undermining the business models of traditional institutions and running them out of business. At the Innovation + Disruption Symposium in Higher Education in 2017, Christensen specifically predicted that “50 percent of the 4,000 colleges and universities in the U.S. will be bankrupt in 10 to 15 years.”
- “A true bubble is when something is overvalued and intensely believed,” he says. “Education may be the only thing people still believe in in the United States. To question education is really dangerous. It is the absolute taboo. It’s like telling the world there’s no Santa Claus.”
- How can actors committed to the American workforce support US-based construction and manufacturing workers with specialized job skills but not a traditional four-year degree?
- How can actors committed to the American workforce support US-based construction and manufacturing workers with specialized job skills but not a traditional four-year degree?
- Areas of opportunity for investing in human capital are efforts aimed at helping workers develop the skills required to succeed and increasing the number of workers interested in construction and manufacturing to create an overall stronger supply of labor in these industries. These efforts are aimed at improving the effectiveness and efficiency of the marketplace that connects qualified workers to available jobs. A significant shift is happening in the typical relationship between employers and workers away from a largely stable, long term relationship and toward a more dynamic system in which workers are often required to change roles, jobs, and careers more frequently and fluidly, also earning income from a combination of full-time and part-time work These are efforts aimed at shifting employers’ mindsets vis-à-vis their workforce and supporting improved human capital practices that work not just for large employers but also small and medium sized enterprises (SMEs). Historically, many companies have adopted new technologies to reduce costs, often by reducing headcount. To better leverage human capital, they should instead consider how workers with specialized job skills but no traditional four-year degree can use these new technologies to create more value, both in the back office and on the front lines These are efforts that shape how the workforce and employment ecosystem functions overall. In this category are efforts designed to tackle holistic barriers facing workers without college educations and to promote public-private partnership models that share ownership, costs, and benefits. T
- without sufficient investment in human capital, not enough qualified workers will enter the construction and manufacturing industries to keep pace with growth. This broadly reflects the supply side of the labor market. On the other hand, we learned that unless companies leverage their human capital to maximize return on new technologies (as opposed to prioritizing cost reduction), the skills gap cannot be eliminated, and non-college-educated workers would be left particularly vulnerable. Supply-side challenges relate to attracting and training workers and creating a stronger supply of labor • “Matching” challenges relate to connecting workers to jobs and facilitating job and career transitions • Demand-side challenges relate to influencing employers’ employment practices vis-à-vis workers • System-level challenges relate to policy and cross-sector collaborations that impact how the workforce system operates as a whole Source: Deloitte, https://www2.deloitte.com/us/en/pages/monitor-institute/articles/bridging-the-manufacturing-and-construction-skills-gap.html
- Overall, training models for construction and manufacturing are not in sync with the twenty-first-century needs of these industries, contributing to growing worker shortages. There is an opportunity to develop more and better training models that are industry- and problembased, and that cultivate a reinforcing and evolving mix of skills
- The construction and manufacturing industries continue to be perceived by many as low tech, dangerous, and dirty, according to experts with whom we spoke. To help attract more new talent that is currently underrepresented in these industries (e.g., women, people of color), to encourage current workers to adopt new technology and engage in “continuous skills upgrades,” and to nudge companies to adopt new technology and forward-facing human capital practices, the entrenched perceptions of work in these industries must shift in ways that are linked to actual and meaningful change in the nature of work and the working environment.
- As the skills required in construction and manufacturing continuously evolve and frequent job changes require more regular and precise pairing between workers and roles, workers need more nuanced and agile means to effectively develop, capture, and communicate new competencies and experiences, in ways that employers understand and value. Standards-based, nationally portable, industry-recognized credentials are a promising mechanism for enabling workers to do that.
- Accelerating technology changes and increases in alternative work arrangements (e.g., gig work and contracting) are likely to make workers bear more responsibility for, and more risk associated with, continuous skills upgrades and job transitions. To be able to excel in this dynamic environment and capture the greatest economic value, workers need better guidance on how to navigate the job market and greater ability to align their current and future skills and capabilities to job opportunities. This requires employers and intermediaries to adopt a common language for discussing hiring requirements that goes beyond the standard proxies, and to use integrated platforms that help workers access and compare job opportunities and career pathways. What is the job? What does my future look like? How will you help me get there?
- This means, the majority of entry-level jobs are not visible to job seekers.
- Accelerating technology changes and increases in alternative work arrangements (e.g., gig work and contracting) are likely to make workers bear more responsibility for, and more risk associated with, continuous skills upgrades and job transitions. To be able to excel in this dynamic environment and capture the greatest economic value, workers need better guidance on how to navigate the job market and greater ability to align their current and future skills and capabilities to job opportunities. This requires employers and intermediaries to adopt a common language for discussing hiring requirements that goes beyond the standard proxies, and to use integrated platforms that help workers access and compare job opportunities and career pathways. What is the job? What does my future look like? How will you help me get there?
- In the United States, the adoption of new automation technologies has largely been driven by the desire to reduce overall costs and make labor costs more variable, which can adversely affect workers. There is an opportunity to build the business case for “high-road” employment models that incorporate investment in worker development and proactive worker involvement in technology adoption and integration decisions. This shift would treat workers as a center of value.
- The top reasons given by employees for leaving their jobs include lack of career development (22%), lack of support with work-life balance (12%), their manager’s behaviour (11%), unsatisfactory compensation and benefits (9%), and poor well-being (9%). (G2.com)
- In the United States, the adoption of new automation technologies has largely been driven by the desire to reduce overall costs and make labor costs more variable, which can adversely affect workers. There is an opportunity to build the business case for “high-road” employment models that incorporate investment in worker development and proactive worker involvement in technology adoption and integration decisions. This shift would treat workers as a center of value.
- Construction and manufacturing are both highly fragmented industries in the United States, with SMEs employing the majority of workers. Because most people in construction and manufacturing work for SMEs, and because SMEs tend to be late adopters of new technology and to have less capital available for workforce development, any effort to support workers should involve addressing the unique human capital challenges facing SMEs and bolstering their capacity to support their employees as they adopt new technologies. firms tend to treat talent supply issues “like the weather,” and see it as something that happens to them rather than something over which they have control. One expert we spoke with said, “They hope for the best, but they are not actively trying to shape it. Part of the reason is that it is not a problem that they’re used to solving.” The issue is further complicated, according to experts, by the tendency of firms to place all of the burden of talent issues on human resource (HR) departments rather than treating it as a priority for the core business. An expert in workforce strategy said, “The entire recruiting strategy and business model is based on the fact that people will be there their whole life and assumption that HR is the part of the business responsible for ensuring the organization has the right skills. The world isn’t like that anymore.”
- “The entire recruiting strategy and business model is based on the fact that people will be there their whole life and assumption that HR is the part of the business responsible for ensuring the organization has the right skills. The world isn’t like that anymore.” —Expert interview, Construction and Manufacturing
- Construction and manufacturing are both highly fragmented industries in the United States, with SMEs employing the majority of workers. Because most people in construction and manufacturing work for SMEs, and because SMEs tend to be late adopters of new technology and to have less capital available for workforce development, any effort to support workers should involve addressing the unique human capital challenges facing SMEs and bolstering their capacity to support their employees as they adopt new technologies. firms tend to treat talent supply issues “like the weather,” and see it as something that happens to them rather than something over which they have control. One expert we spoke with said, “They hope for the best, but they are not actively trying to shape it. Part of the reason is that it is not a problem that they’re used to solving.” The issue is further complicated, according to experts, by the tendency of firms to place all of the burden of talent issues on human resource (HR) departments rather than treating it as a priority for the core business. An expert in workforce strategy said, “The entire recruiting strategy and business model is based on the fact that people will be there their whole life and assumption that HR is the part of the business responsible for ensuring the organization has the right skills. The world isn’t like that anymore.”
- Finally, several broader issues stand in the way of closing the skills gap in construction and manufacturing in ways that support all workers. First, issues beyond work influence workers’ ability to thrive in an increasingly dynamic employment environment. Second, the responsibility for addressing the skills gap challenge is not well organized
- without sufficient investment in human capital, not enough qualified workers will enter the construction and manufacturing industries to keep pace with growth. This broadly reflects the supply side of the labor market. On the other hand, we learned that unless companies leverage their human capital to maximize return on new technologies (as opposed to prioritizing cost reduction), the skills gap cannot be eliminated, and non-college-educated workers would be left particularly vulnerable. Supply-side challenges relate to attracting and training workers and creating a stronger supply of labor • “Matching” challenges relate to connecting workers to jobs and facilitating job and career transitions • Demand-side challenges relate to influencing employers’ employment practices vis-à-vis workers • System-level challenges relate to policy and cross-sector collaborations that impact how the workforce system operates as a whole Source: Deloitte, https://www2.deloitte.com/us/en/pages/monitor-institute/articles/bridging-the-manufacturing-and-construction-skills-gap.html