The Age of Retraining: How Employers Are Working to Upskill Employees and Stave Off the Rise of the Machines
When economists and editorialists speak in worried tones about America鈥檚 鈥渟kills gap,鈥 they鈥檙e referring to the mounting number of jobs that require some degree of technical know-how and the relative dearth of qualified candidates to fill them.
For Traci Tapani, the phenomenon is no mere abstraction. It鈥檚 a potential company killer.
鈥淲hat we鈥檝e started to see 鈥 and we started seeing this a decade ago, at least 鈥 is that the skills that people could bring to the job were different than they were in the past,鈥 she told 蜜桃影视 in an interview. 鈥淎nd it鈥檚 just progressively gotten worse. When we combine a very tight labor force with the fact that people don鈥檛 really have the skills you鈥檙e looking for, we鈥檙e in uncharted territory.鈥
Tapani is the president of Wyoming Machine, a family-owned metal fabrication business. The company has helped build everything from armored Humvees to retail fixtures and medical supply equipment, and it is frequently in the market for expert welders and production technologists. This is advanced manufacturing in what is still America鈥檚 industrial heartland, and the lack of trained job candidates has proven a major impediment to business.
Those problems are borne out at the national level. A , the research and advocacy arm of the National Association of Manufacturers, projected that 2 million manufacturing jobs would go unfilled by 2015, amounting to 60 percent of total openings over that span. In a survey accompanying the report, the vast majority of manufacturing executives agreed that they faced a talent shortage; among needed skills, new hires were found to be most deficient in math, computing and technology, and problem-solving.
Along with her sister and co-president Lori, Tapani decided that their company had to change its approach.
鈥淲e realized that we could sit still and just hope the people that used to exist, or the skills we used to see, would just magically reappear. Or we needed to adjust what we were doing to the current reality, which is that there鈥檚 fewer people available, and the people that are available often don鈥檛 have any kind of manufacturing experience.鈥
The Tapanis weren鈥檛 alone in this realization. Their relatively small organization 鈥 a few dozen employees in a facility located, somewhat confusingly, in Stacy, Minnesota 鈥 is part of a larger movement of employers large and small who are hoping to cultivate a more skilled workforce. That means constant reinvestment in employees, in the form of classes and skills certifications, to prepare them for the jobs that will emerge as manual work is increasingly mechanized. And the effort never stops: Workers often have to go back and acquire wholly new competencies every few years as technologies and methods change.
Call it a move toward a more protean economy. To stay professionally viable, employees can鈥檛 count on performing the same tasks over the entirety of their careers. To protect their bottom line, employers need to assist them in the continuous process of reinvention. And according to experts, that process needs to start early 鈥 perhaps as soon as kindergarten.
Workers are aging
Of course, there鈥檚 nothing new about worker retraining. In fact, as a human resources strategy, it鈥檚 supposed to be kind of played out. Wide-ranging analyses of federal job-training programs on the millions of dollars spent to revive careers displaced by outsourcing and the chaotic business cycle. Meanwhile, as a generation of baby boomers begins to retire, we鈥檝e been told that their places in offices and factory floors will be filled by hyper-capable machines that will soon be making paralegals redundant alongside taxi drivers and sales clerks. According to some estimates, the quickening development of artificial intelligence could endanger in the next decade alone.
Americans are especially prone to this line of thinking. In of executives at major companies, a decisive 94 percent of European respondents said they believed that the skills gap would have to be addressed through a mixture of retraining existing staff and adding new hires. Just 62 percent of U.S. executives said the same; fully 35 percent of them believed that shortages in expertise could be addressed mostly or exclusively through taking on new, more skilled employees, a rate five times as high as among the Europeans. That regional difference could translate into mass layoffs based on age, .
Widespread joblessness among older Americans could be a problem, given the country鈥檚 aging curve. Workers left behind when professional expectations shift tend to be those past the midway point in their careers. The that by 2024, one-quarter of all working people will be over the age of 55, and 13 percent will be 65 or older.
Far from being an irrelevant policy solution, retraining could be a vital strategy for assisting the fastest-growing segment of the workforce. Even while conceding the possibly transformative effects of greater automation in the workplace, have argued that these senior employees will need to be put to work in new roles. After all, the labor-force participation rate among older people has been rising since the 1980s, and that even most retirees would return to the workplace if given the opportunity.
Major companies are beginning to acknowledge these realities, and some have already dedicated enormous resources to addressing the problem. AT&T to spend $1 billion to supply roughly 100,000 of its employees with new training in data science, cybersecurity, and other novel fields as the telecommunications icon completes its transition from a landline-heavy business model to one based in mobile and cloud-based technology (鈥渞eskilling鈥 is the preferred term).
Already a decade in the making, the company鈥檚 Future Ready initiative allows employees to access an online portal displaying open positions, their salary ranges, and the skills needed to fill them. Through partnerships with universities and online course providers like Coursera, those employees can take classes and earn skills certifications that are recognized throughout AT&T. In just a few years, nearly 60,000 workers have earned those certifications, and hundreds more have even enrolled in an .
Cheryl Oldham, the vice president of education policy at the U.S. Chamber of Commerce, says that moves like these are necessary steps at a time when few dare predict how new technologies will change the nature of work. While claims about the disruptive power of AI often , both organizations and their employees have to consider learning and skills acquisition a lifelong endeavor, she told 蜜桃影视.
鈥淎T&T is such a great example of an organization that has said, 鈥楲et鈥檚 be honest: We don鈥檛 know what it鈥檚 going to look like six months, six years from now.鈥 So, as people who want to support our workforce, we need to help them to be retraining and getting more education. Many employers who are sophisticated about this kind of stuff and are willing to invest in their workforce are thinking about this, and we鈥檙e in an exciting time right now for education and the ways we deliver training.鈥
Most organizations would likely prefer to transition existing workers to new tasks, Oldham explained, given the downsides of recruiting new talent. A bevy of studies on professional turnover demonstrate that the cost of replacing an employee roughly one-fifth of that person鈥檚 salary.
鈥淚t鈥檚 expensive to go out there and do the regular job posting, hope some people apply who are qualified,鈥 she said. 鈥淥nboarding somebody, getting them up to full productivity, all of that is time-consuming and costly. And we鈥檝e heard time and time again from folks we鈥檙e engaged with that not only is it costly, but they can鈥檛 get what they need.鈥
Business groups have also endorsed specific education policies to help solve labor shortages where they exist. After Congress passed the Every Student Succeeds Act, giving states significantly more autonomy to measure the effectiveness of schools, the Chamber urging employers and education leaders to emphasize career readiness when measuring student success.
High schoolers should not only be preparing for the academic rigors of college, the authors wrote, but also receiving career counseling and opportunities for work-based learning. The Council of Chief State School Officers has issued a similar call, noting that both colleges and employers have expressed concern at the lack of basic skills demonstrated by recent high school graduates.
But others argue that, in order to prepare today鈥檚 students to become tomorrow鈥檚 professionals, teachers need to start much earlier than high school. Indeed, a growing body of research suggests that schools should be inculcating 鈥渘oncognitive skills鈥 鈥 persistence, focus, collaboration and self-regulation, among others 鈥 beginning as early as kindergarten.
A from the RAND聽Corporation has identified dozens of K-12 programs that not only show promise in promoting social and emotional learning but also are eligible for federal funding under ESSA. The interventions differ in their format and target student demographic, delivering classroom lessons to kids on everything from how to appropriately gain a teacher鈥檚 attention to how to practice good hygiene.
In 2016, the Brookings Institution鈥檚 Hamilton Project summarizing much of the existing research on the labor-market value of noncognitive skills. Not only does the cultivation of greater social and emotional facility help kids avoid behavioral problems and attain greater levels of academic success, the report pointed as well to the rapidly rising status of workers who know how to communicate, switch between tasks, and work on a team.
It鈥檚 not hard to imagine how those attributes could also assist a worker in making a mid-career switch to new responsibilities, or even an entirely new job description. Lauren Bauer, one of the Hamilton Project鈥檚 researchers, told 蜜桃影视 that the most successful 鈥渞eskilling鈥 programs can boost wages and lengthen careers by broadening expertise beyond the technical.
鈥淲orkplace-related noncognitive skill development benefits participants,鈥 she wrote in an email. 鈥淚mportantly, these skills are malleable 鈥 those participating in workforce development programs later in their careers can learn new skills, including noncognitive skills.鈥
鈥楾hey know they can leave鈥
At Wyoming Machine, Lori Tapani has gotten used to being creative in the talent acquisition process. With the supply of experienced manufacturing workers dwindling, she and her sister even began looking for candidates with experience in process-driven industries . But the shifting focus of their company toward more advanced industrial production means that even seasoned employees need to add to their competencies.
The manufacturing processes 鈥渁re more computerized, so they鈥檙e more complicated, and people have to have some computer skills,鈥 she said. 鈥淓ven in small manufacturing, we鈥檙e starting to realize that there鈥檚 a ton of data 鈥 If I work on a shop floor and my quality isn鈥檛 good, it would be beneficial if a machine operator could get the raw quality data and analyze it himself 鈥 put it in Microsoft Excel and make a chart or try to figure out what it鈥檚 telling him. But very few people know what to do with [data], and … operators can鈥檛 use it to solve problems they鈥檙e seeing on the shop floor.鈥
That led the Tapanis, along with a consortium of other local employers, to begin a partnership with nearby Pine Technical and Community College. Together, they designed 鈥 led by professional educators, but accessed remotely via webcast 鈥 to help both new hires and longtime employees gain new nationally recognized credentials by learning skills such as auditing, maintenance, and safety. The continuous professional development not only makes participants more valuable to Wyoming, Tapani says, it also makes them feel more valued and confident.
鈥淲e actually think that when [employees] have those credentials, and they know they can leave, that increases their satisfaction,鈥 she said. 鈥淭hey鈥檙e staying because they want to, not because they have to. Not everyone agrees with me. But you can鈥檛 be afraid of that. They know they can leave, and I know they can leave, but it makes us all behave in a more positive way.鈥
Disclosure: 蜜桃影视鈥檚 coverage of the skills gap, the challenges and opportunities of better educating our future workforce, and efforts underway to improve local employment pipelines is underwritten in part by the U.S. Chamber of Commerce Foundation.
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