Tag Archives: Education Deficit

The 2020 Workforce: Misconceptions Between Management and Employees

data point tuesday

Oxford Economics and SAP recently released the report “Workforce 2020: The Looming Talent Crisis” aimed at understanding the opportunities and challenges of the evolving workforce. The research is based on survey responses from over 2,700 executives and more than 2,700 employees in 27 countries. Understanding the core characteristics of “the new face of work,” as SAP puts it, is an important step in recognizing the opportunities and challenges that will come with it. SAP and Oxford Economics’ research identifies several key characteristics of the 2020 workforce, including that it will be an increasingly flexible one. Of executives surveyed, 83% cited that they plan to increase use of contingent, intermittent, or consultant employees in the next three years and 58% say that this requires changing HR policy. In addition to being flexible, the 2020 workforce will be increasingly diverse, and SAP advises that because of this HR leaders will need to become more evidence-based to deal with these realities. As of now, only 50% of HR departments state that they use quantifiable metrics and benchmarking in workforce development and only 47% say they know how to extract meaningful insights from the data available to them. This is likely part of what influences the reported lack of progress towards meeting workforce goals that many executives cite. Just 33% stated that they have made “good” or “significant” progress towards workforce goals.

SAP identifies technology as a key need for the evolving workforce that organizations are unprepared for. While this may seem obvious, in the U.S. just 39% of employees report getting ample training on workplace technology and only 27% report access to the latest technology. While it’s understandable that not all organizations can offer the most cutting edge technologies, a lack of sufficient training for the technologies that are in place could be seriously affecting employee productivity. Aside from technology, misconceptions about Millennials are another trend of the evolving workforce that SAP points out (and with the expectation that this generation will make up more than 50% of the workforce by 2020, any misconceptions are noteworthy). The research points out that while Millennials are different than other generations, they may not be as different as they are typically portrayed. According to executives surveyed, 60% believe Millennials are frustrated with manager quality but only 18% of Millennials say that they actually are. Additionally, 62% of executives report that Millennials will consider leaving their job due to a lack of learning and development, but just 31% of Millennials say they have considered this.

millenial-misconception

In terms of the emerging workforce, there may also be gaps between what companies believe employees want from them and what employees actually want.

what-employees-say
Perhaps not surprisingly, the most important incentive to U.S employees is competitive compensation (84%) followed by retirement plans (75%), and vacation time (62%). 39% of employees say higher compensation would increase loyalty and engagement with their current job. When it comes to attributes that employees think are most important to their employer, job performance and results is number one (46%), followed by the ability to learn and be trained quickly (29%), and loyalty and long-term commitment to the company (28%). This differs however, from what employers deem most important. The top three attributes executives want in employees are a high level of education and/or institutional training (33%), loyalty and long-term commitment 32%), and the ability to learn and be trained quickly (31%).

What executives and employees do agree on is that organizations are not focused enough on developing future leaders. Only 51% of U.S. executives say their company plans for succession and continuity in key roles and 47% say their plans for growth are being hampered by lack of access to the right leaders. Employees agree that leadership is a problem area, with just 51% of employees stating that leadership at their company is equipped to lead the company to success. Better learning and education opportunities will be key to bridging this talent gap. The need for technology skills in particular will increase in demand (e.g. cloud and analytics), although SAP’s data states that just 33% of employees expect to be proficient in cloud in three years. This statistic is slightly better when it comes to analytics, with 43% expecting proficiency in three years and almost 50% expecting proficiency in mobile, social media, and social collaboration. In terms of training programs, only about half (51%) of American executives say their company widely offers supplemental training programs to develop new skills. This aligns with employees’ perceptions toward training, with 51% reporting that their company provides the right tools to help them grow and improve job performance. Additionally, about half (52%) of employees say their company encourages continuing education and training to further career development.

Take a look at the graphic below that highlights the five major labor market shifts discussed. Are you beginning to think about shifting workforce development strategies for the future? Are you really sure what your employees think? Or are you making assumptions based on popular press reports that may not be founded on fact?

labor-market-shifts

1 Comment

Filed under #HRTechTrends, 100 Best Companies to Work For, Leadership Aspiration, Leadership Challenges, Learning/Development, Millennials, Recruiting, Recruiting Technology, SAP

Shooting Ourselves in the Foot Isn’t an Effective Engagement Strategy

data point tuesday_500

Recent headlines from Gallup proclaiming that college-educated Americans are less engaged on the job than other cohorts may have spurred some conversation among HR leaders and professionals. Engagement, that elusive component to organizational success, is the holy grail many employers chase. And Gallup, the grand surveyor of people on all topics, has regularly published engagement data that either convinces us that engagement is a fraud or that we have to try harder to win over our workforces.

A recent USA TODAY article, “Higher education = lower joy on job?” quoted Gallup findings as well as findings from this report: “Why Are Recent College Graduates Underemployed?” from the Center for College Affordability and Productivity. The justaposition of these two sources shows an interesting picture.

Here’s Gallup’s data:

Gallup Engagement by Education 2013

So. According to Gallup, the most engaged group of workers are those who have earned a high school diploma or less.  And the least engaged group of workers are those who have earned a college degree. By themselves, the numbers are almost interesting. By themselves, the bigger news is that the numbers show that less than a third of the workforce is engaged, and more than two-thirds of the workforce is either not engaged or actively disengaged. OK. That’s interesting and cause for concern.

But put this Gallup data into the blender with this data from the Center for College Affordability and Productivity and it gets a little more interesting:

College Grads Underemployed 2013

If nearly half of all American workers with college degrees are in jobs that do not require a college degree, might that have something to do with their level of engagement? Are nearly half of our college educated workforce bored on the job?

And if they are, and if we’re concerned about engagement, why are we putting them into jobs for which they are overqualified? Would high school graduates be more engaged and perform better? Would those better performers positively impact the financial performance of their employers?

The Center also asserts that

“past and projected future growth in college enrollments and the number of graduates exceeds the actual or projected growth in high-skilled jobs, explain the development of the underemployment problem and its probable worsening in future years.”

So they believe the engagement problem will grow worse – if there really is a causal relationship between engagement levels and the over-qualification of many of our workers.

What do we make of this? Well, I do think it’s common sense to believe that people who are significantly over-educated for the jobs they hold could well be bored and unengaged. But I also think that in this economy, many are grateful to have any job, over-educated or not. What that means for engagement is unclear to me. Except that Gallup, being the last word in survey data, shows a clear line between education levels and engagement.

shoe with bullet holeWhile this might be above my pay grade, I’m willing to make a leap here and suggest that hiring overqualified workers might not be the best strategy for boosting engagement. If we truly believe that engaged workers have a demonstrably positive impact on an organization’s financial performance – and that’s been the HR mantra for a number of years – then we are probably shooting ourselves in the foot by requiring college degrees for jobs that truly don’t need them.

I’ve written this before: the over-inflation of job requirements in job descriptions isn’t putting the unemployed in this country back to work. And now we know it isn’t helping organizational performance. Hmmm…

I’ll bet we can agree on this:  shooting ourselves in the foot isn’t an effective engagement strategy.

5 Comments

Filed under Center for College Affordability and Productivity, China Gorman, Data Point Tuesday, Education Deficit, Engagement, Gallup, Job Descriptions

Jobs recovery? Not so much…

data point tuesday_500

I’ve referenced several times the good work that Georgetown University’s Center on Education and the Workforce is doing in predicting the educational Georgetown University Center on Education and the Workforce logopreparedness (or lack thereof) of the workforce in relation to the anticipated jobs growth in the United States. Anthony P. Carnevale and his colleagues have just published Recovery:  Job Growth and Education Requirements Through 2020. This is a follow up to their 2010 publication, Help Wanted:  Projection of Jobs and Education Requirements Through 2018.

The bad news is that the educational preparedness of the U.S. workforce is getting worse as we look to the future. Without systemic changes to the U.S. post-secondary education system, the economy will now fall 5 million workers short with post-secondary degrees by 2020 – an increase of 2 million from their projection of a 3 million shortfall in 2018.

While many sources are predicting that the U.S. economy will create 55 million new job openings over the next decade, these new job openings are a combination of an anticipated 24 million newly created jobs and 31 million openings created by Baby Boomer retirements. Foundational to the calculations are that jobs are returning much more slowly that we thought they would following the recession.

Recovery Figure 1

Still, an increase of 24 million new jobs between now and 2020 seems hugely optimistic. That’s an average of 307,000 new jobs per month between now and 2020. When has the U.S. sustained that kind of consistent job growth? Well, according to Bureau of Labor Statistics, in the last 30 years, only 1994 averaged new jobs creation at a rate of over 300,000 per month. 1994. A long time ago.

So there’s that.

But there’s more from this report that’s worth noting for those concerned about the future of the talent pipeline:

  • By 2020, 65% of all jobs in the economy will require post-secondary education and training beyond high school

    • 35% of the job openings will require at least a bachelor’s degree

    • 30% of the job openings will require some college or an associate’s degree

    • 36% of the job openings will not require education beyond high school

Reccovery Figure 4

The implications here are clear regardless of the numbers of new jobs created: employers and others predict that soon nearly two-thirds of all jobs will require some kind of post-secondary education or training. In 1973 – just 40 years ago – less than one-third of all jobs required the same. Forty years isn’t a very long time – just one generation. Lots of change in the nature of jobs, work, education, skills and employability in 40 years.

The report also defines the skills that will be most valued and in demand for the new jobs landscape. These are not as revolutionary as one might think. Cognitive skills of leadership, communication, analytics and administration will be most valued and in demand. Take a look and see what you think.

The Center on Education and the Workforce generates useful information for those involved with education and/or workforce planning – functions that should joined at the hip today and in the future.

3 Comments

Filed under Baby Boomers, Bureau of Labor Statistics, Center on Education and the Workforce, China Gorman, College Graduation Rates, Education Deficit, Job Creation, Post-secondary education

High Cost of ‘Mal-employment’

data point tuesday_500

Professor Andrew Sum from the Center for Labor Market Studies at Northeastern University has done a great deal of research on the effect of the most recent recession on the youngest cohorts in our economy.  (I wrote about other of his research here.)

A recent CNNMoney article highlighted some interesting data from Dr. Sum’s most recent research efforts. And it has to do with the ability of recent college graduates to enter the economy in jobs that require their degrees.

Recent college gradsWith unemployment still above 7%, it’s not hard to understand that young people armed with a newly minted degree and little experience are having a hard time connecting to jobs. People with degrees and lots of experience are having a hard time connecting to jobs.

While we know that the data regarding the lifetime earnings differential for college graduates is a compelling argument for college attendance, the “mal-employment rate” together with the student debt-load most graduating college seniors are burdened with might be making young people have second thoughts about investing in a four year degree. And that’s bad news.

The Lumina Foundation tracks our progress towards attaining the national goal that 60% of Americans obtain a high-quality postsecondary degree or credential by 2025. And in 2011, the last year for which the data are complete, the percentage of Americans between the ages of 25 and 64 with two- or four- year college degrees was 38.7%. Our goal is 60%. Our current level is 38.7%. That’s really bad news.

Add to this the expectation that 65% of U.S. jobs will require some kind of postsecondary education by 2020 – and it’s really, really bad news.

These are difficult data points at the intersection of jobs, education and the talent pipeline. And they should be motivating us – all of us, in or out of HR – to think better about our workforce. Our organization’s workforce and our nation’s workforce.

Mal-employment might be the least of our worries in 2020.

4 Comments

Filed under China Gorman, Data Point Tuesday, Education Deficit, Job Creation, Talent pipeline

Big Trouble in the Talent Pipeline

data point tuesday_500

I’m not generally big on infographics.  I find them self-serving and hard to read and digest.  Here’s an exception.  It’s called Unprepared for College and was posted on the College@Home.com blog.

I’ve written about the non-performance of the U.S. education system in preparing our future workforce here and here.  This infographic puts the issues front and center.  I don’t see how we can continually turn away from this data.

  • Half of all college students drop out before receiving a degree
  • 1 in 4 college freshman don’t complete their 1st year
  • Over half-a- million college freshman drop out every year

But wait.  It gets worse:

  • 80% of college freshman say high school is too easy but
    • 5 out of 10 college freshman can’t find New York or Ohio on a map of the U.S.
    • 9 out of 10 can’t find Afghanistan on a map of Asia
    • 3 out of 10 can’t find China on a globe
    • 4 out of 10 can’t find Israel, Iraq or Saudi Arabia
    • 7 out of 10 can’t find North Korea

And worse:

College@Home High School Readiness Benchmarks

And then there’s this:

  • 4 out of 5 students currently pursuing a math or science degree feel that their K-12 education did not prepare them for college
  • 2.2 million college freshman are learning high school material in college
  • 80% of students in remedial classes in college had a high school GPA of 3.0 or higher
  • 20% of freshman with a 4.0 high school GPA need remediation in math, English or both
  • And 8 out of 10 freshman believed they were ready for college when they graduated from high school

The bottom line?  Only 56% of students enrolled in a 4-year program receive a degree within 6 years.

So.  What are we doing about this?  Government can’t or won’t act.  We can blame teacher unions, local governments, state governments, the voting public, parents, the students themselves – but none of that helps solve the problem.

Seems to me that business in general – and HR specifically – needs to step up to the plate.  After all, we’re the ones most concerned with the unskilling of our populace.  We’re the ones who know the most about the kinds of skills we need today and the kinds of skills we’ll need tomorrow, and next month and in the years to come.  I think it’s up to us.  What do you think?

12 Comments

Filed under China Gorman, College Graduation Rates, Connecting Dots, Education Deficit, High School Graduation Rates, Jobs for America's Graduates, Post-secondary education, STEM, Talent pipeline

Voices of JAG

Now more than ever we need Jobs for America’s Graduates.

JAG is currently operating in 32 states with more than 800 local program affiliates.  If JAG is in your state you need to get involved.  If JAG is not in your state you need lead the way for its introduction.

That is all.

Leave a comment

Filed under China Gorman, Connecting Dots, Education Deficit, High School Graduation Rates, JAG, Jobs for America's Graduates

HR Talent Shortage

SHRM has just released a new report in its series on The Ongoing Impact of the Recession. The current release focuses on the Manufacturing Industry.  Previous reports have focused on the Federal Government, State and Local Government and the Finance Industry.

This report clearly shows the continued strong degree of difficulty in hiring professionals with STEM education backgrounds – as well as mangers and executives, the skilled trades, sales professionals, HR professionals and accounting/finance professionals. It should come as no surprise to any business leader or talent management professional that finding professionals in the U.S. with STEM backgrounds is difficult.  The U.S. education infrastructure is not producing enough graduates in these disciplines. See my posts here and here.

It is surprising to note, however, that in addition to reporting a high degree of difficulty in finding STEM professionals and skilled trade workers, manufacturing employers are also having a difficult time finding managerial and executive talent, and sales, HR and accounting/finance talent.

Hmmmm.  A shortage of HR talent. Is this good or bad news?

2 Comments

Filed under Education Deficit, Hiring Difficulty, HR, SHRM, STEM, Talent pipeline