WORKFORCE NEEDS

& BUSINESS

PROSPERITY

Meeting Employers & Meeting their Needs

2

Who & How

Debra Bultnick, Manufacturing Industry Liaison

MN Dept of Employment & Economic

Development

Rich Davy, Senior Field Rep

MN Dept of Labor & Industry

Electronic copy of this presentation and the

survey will be made available upon request

3

Why we’re listening

Intended Outcomes

We want you to articulate your needs in a way

that helps us identify specific challenges

We can tailor our services to better address your

needs

We will identify gaps we can then bring to the

attention of the State and other organizations so

they may have your concerns in mind when

assessing how to better meet Minnesota

Manufacturing Industry’s needs

4

Validate/Repudiate Data

The slides that follow contain national and

state data on workforce trends, shortages,

demographic changes, development strategies

and more

For each, you will indicate “how true” the data is

for your particular business

We’ll move through the slides together

We’ll use your responses to paint a picture of

specific needs

Note: Slide # and Question # do not match.

5

Changes in Workforce Size

0%

5%

10%

15%

20%

>25%

15-2

5%

10-1

4%

5-9

% No

Chan

…

<5%

5-9

%

10-1

4%

15-2

5%

>25%

Increase

Decrease

No Change

How will the size of your workforce

change over the next three years?

Industry Week

6

HR Managers’ Concerns

Training & Development

Retaining Top Performers

Recruiting

N/A

HR managers

were

asked, “Which

of the following

is your greatest

staffing

concern?”

Office Team

7

What Grads are Saying

Have you been working at

the same position since

starting with this employer?

Of those who had

new positions, most

(37%) had multiple-

level

promotions, nearly a

third transferred to

another department

and 20% had a

single-level

promotion.0%

10%

20%

30%

40%

50%

60%

70%

Yes No

RIT

8

What Grads are Saying

Is there anything your

current company could

have done/could do to

keep you?

Of those who plan to

look for a job at a

different

company, 24% could

be swayed to stay by

a promotion, raise

and/or salary

increase.

0%

5%

10%

15%

20%

25%

30%

Yes No

RIT

9

Impact of Aging Workforce

Very Negative

Negative

No Impact

What impact

will the aging of

the workforce

have on the

economic

environment

affecting your

company in the

near future (that

is, over the next

3 years)?

Sloan Center

10

Employer Readiness

29%

47%

40%

13%

10%

13%

26%

40%

30%

37%

43%

40%

37%

38%

25%

19%

17%

33%

36%

37%

26%

7%

5%

5%

11%

14%

14%

11%

0% 50% 100%

Not At All

Limited

Moderate ExtentGreat Extent

Developed Succession

Plans

Demographic Makeup

Projected Retirement Rates

Employee's Plans & Work

Purposes

Anticipated Skills Needs

Competency Sets of Employees

Supervisors' Ability to Anticipate

& Plan Staffing Needs

Has your company analyzed/assessed its workforce

demographics?

Sloan Center

11

Older Workers

29%

47%

40%

13%

10%

40%

30%

37%

43%

40%

25%

19%

17%

33%

36%

0% 20% 40% 60% 80% 100%

Retention

Engagement

Career Progression/Promotion

Training

Recruitment

Too Few

About Right

Too Many

Comment on the number of programs or policies your

company has for older workers related to the following

areas.

Sloan Center

12

Top Concerns

0% 20% 40% 60% 80%

Healthcare Costs

Government Regulations

Federal, State, Local Taxes

Availability of Capital

Pricing Pressures

Foreign Competition

Customer Financial Stability

Cost of Goods

Attract & Retain Qualified Workers

Payroll Costs

Lack of Qualified Workers

Vendor Financial Stability

Highest Concern Among Highest

State of Manufacturing

Actionable items

13

Broad Concerns

AACU

Nearly 88% of employers agree that the

challenges their employees face within their

organization are more complex today than

they were before, and that to succeed in their

organization, employees need higher levels of

learning and knowledge today than they did in

the past.

14

Why They Come & Why They

Go

RIT

15

Competitive Wages

For manufacturers, one challenge is to attract

the best employees who might be attracted to

work in other sectors. The provision of

competitive wages has been one means of

accomplishing this goal, but compensation in

this industry has stagnated and in some

respects declined over the past decade.

Sloan Center

16

Flexible Schedules

Approximately 45%

of employees in the

manufacturing

sector are never

allowed to change

their

schedule, compared

to only 30% of

employees in other

sectors who are

never allowed to

change their

schedule.

0

25

50

75

100

Allowed Not Allowed

Sloan Center

Manufa

ctu

ring

Oth

er

Secto

rs

17

Workforce Flexibility 5 Ways

Flexibility in the Number of Hours Worked. Examples include part time work, part year work, job share, phased retirement, and input into overtime.

Flexible Schedules. Examples include: changes in starting/ quitting times, changes in starting/quitting times, in compressed work, schedule that varies from typical schedule, choices about shifts.

Flexible Place. Examples include: working from home/remote site, or being able to select or periodically/seasonally change the work location.

Options for Time Off. Examples include: paid leave for care giving/personal/family responsibility, extra unpaid vacation days, paid/unpaid time for education/training, volunteering, or sabbatical.

Other Options. Additional examples include: control over the timing of breaks, and allowing employees to transfer to a job with reduced responsibilities and reduced pay, if they want to.

Sloan Center

18

Corporate Cocooning

Over 80% of today’s employees feel

overworked and under-appreciated. Too many

businesses have survived by over-loading

their long-term employees.

Once positive job growth occurs, some

employees will feel confident enough to leave

their companies.

Herman Trend Alert

19

Warning Signs

56%

38%

35%

Would consider leaving for the same compensation

Not sure of my company's mission besides to make money

Mainly here to get a paycheck

0% 10% 20% 30% 40% 50% 60%

StrategyOne

20

Workforce Shortages

Just over half of

respondents had

positions unfilled

due to lack of

qualified

applicants.

Job vacancies

most acute for

medium

companies (75-250

employees).

0%

20%

40%

60%

80%

Small Medium Overall

Job Unfilled

Percent Indicating at Least One Unfilled Position

Very

Small

MN Skills Gap

21

Maintaining Quality

30%

31%

32%

33%

34%

35%

Negative None

Manufacturers were

asked whether staff

reductions or other

cutbacks

implemented in

2010 negatively

impacted the quality

of their products/

services delivered.

Impact on Quality

ASQ

22

Workforce Shortages

Severity by Occupation

0%

25%

50%

75%

100%S

kill

ed

Pro

duction

Scie

ntists

/ E

ngin

eers

Sale

s/

Ma

rketing

Low

-skill

ed

Pro

duction

Mgt/

Adm

in

Custo

mer

Serv

ice

Overa

ll

No Shortage Moderate Serious

MN Skills Gap

23

What Matters Most?

Job Stability

31%

Base Salary18%

Career Oppty11%

Recognition of

My Importance

to the Company

14%

Industry Week

What else matters

Benefits 6%

Flexible Schedule

4%

Relationships with

Co-Workers 4%

Continuing

Education/ Training

1%

Interesting/

Challenging Work

1%

Other 3%

24

Top Factors for Future Success

A high-performance

workforce was noted

by all sizes of

companies in every

region as most

important overall.

Low-cost production

was #2 overall

New product

innovation was #3

overall MN Skills Gap

25

Training Incumbent Workforce

Overall, 20% of respondents indicated that nearly all

employees received training each year, but more than

half do little or no training.

0% 10% 20% 30% 40% 50% 60%

<10%

10%-…

25%-…

50%-…

>75%

Incumbents Receiving Training

MN Skills Gap

26

Retention Strategy

Minnesota

manufacturers were

only half as likely to

focus on improving

their organization’s

culture as a means to

retain their workforce.

0%

10%

20%

30%

40%

50%

MN US

Improving

Organizational Culture

2005 Skills Gap/MN Skills Gap

27

3 Tools to Improve the Culture

Nationally, manufacturers were more than twice as likely

to use certain retention strategies than their Minnesotan

counterparts.

9%

4%2%

22%

15%

6%

0%

10%

20%

30%

Professional Development

Formal Career Planning

MN US

Tuition

Reimbursement

2005 Skills Gap/MN Skills Gap

28

Next Steps

Compile your

answers and

prepare a report

back to each of you

Begin to research

possible tools/

practices/services to

address concerns

Contact us with

more comments

about your

workforce needs

Tell us about what’s

working for you—

and what’s not

We will You may