SKILL GAPS: A CONTINUED CRITICAL PROBLEM

Transcription

1 SKILL GAPS: A CONTINUED CRITICAL PROBLEM Breakfast in Business Dean Womer and Steve Finkelstein Prepared by: University of Missouri St. Louis College of Business Administration 1

2 Today s Messages Skills-Gaps continue to grow A sense of urgency is needed Together, we can make a difference

3 Count the F s (below) FANNY FILINGER WAS OF THE IMPRESSION THAT EIGHTY-SIX YEARS OF HISTORY SHOW THAT SCIENTIFIC RESEARCH IS OF THE UTMOST IMPORTANCE IN EVERY CASE OF FUTURE GENERATIONS. 3

4 How Many F s Did You Count?

5 Count the F s (below) FANNY FILINGER WAS OF THE IMPRESSION THAT EIGHTY-SIX YEARS OF HISTORY SHOW THAT SCIENTIFIC RESEARCH IS OF THE UTMOST IMPORTANCE IN EVERY CASE OF FUTURE GENERATIONS. 5

6 How Many F s Did You Count?

7 Count the F s (below) FANNY FILINGER WAS OF THE IMPRESSION THAT EIGHTY-SIX YEARS OF HISTORY SHOW THAT SCIENTIFIC RESEARCH IS OF THE UTMOST IMPORTANCE IN EVERY CASE OF FUTURE GENERATIONS. Answer is 8 F s 7

8 Today s Objectives and Agenda Objectives: Present survey results Gain your insights and feedback Agenda: Background Information Demographics Critical Skills and Gaps Open Discussion 8

9 Background Information 9

10 NEW GRADS ILL-PREPARED Skill Gaps among newly-hired graduates is hurting U.S. competitiveness Almost half of the respondents said they have to provide readiness training for new hires. They reported that newly-hired graduates lacked such basic workplace skills as communication, creativity, and teamwork. The Ill-Prepared U.S. Workforce: Exploring the Challenges of Employer-Provided Workforce Readiness Training, a report produced by Corporate Voices for Working Families, ASTD, The Conference Board, and SHRM in

11 Skills-Gaps Still an Issue 52% of businesses surveyed said there is a skill gap among their employees 63% said there is a skills gap with their applicants 32% gap is urgent 33% said gap would worsen The Skills Gap in our Region. East Tennessee State University Study. 11

12 The Skill-Gap Issue The future US workforce is here--and it is woefully ill-prepared for the demands of today s and tomorrow s workplace Are They Ready to Work the Conference Board, Partnership for 21st Century Skills Estimated that 80% of the labor shortage will involve skills, not numbers of workers potentially available. Employment Policy Foundation (EPF) 12

13 Survey Background 13

14 Skill Gaps Team Dr. Keith Womer Dean of the University of Missouri St. Louis College of Business Administration Steve Finkelstein Senior Partner, Experience on Demand Kathy Ntalaja PhD Student, UMSL Wes Boyce PhD Student, UMSL 14

15 Survey Process & Timeline Survey Planning HR Advisory Group Pilot Survey Administer Survey Compile Results Present Results Oct / Nov Dec Jan Feb / Mar Apr / May June

16 Key Questions What are the critical skills? Where are the skill-gaps? What are the business impacts? How do we close the skills-gaps? 16

17 Partnership University Business Working Together 17

18 Definitions Critical Skill (1) Required to perform one s job at a high level of performance. Skill Gap (2) A critical skill that is not meeting job requirements now or in the future. (1) Soft skills, not technical skills (2) Not a gap created by shortage of people 18

19 Performance Needed Skills-Gaps: A Growing Concern Required Talent - # and Skills Skills-Gaps Workforce Capabilities Time

20 Demographics 20

21 Survey Overview (1) Population: UMSL College of Business Administration Alumni, minimum 4 year degree and HR professionals Respondents: 317 Administered: January 2010 Demographics: Good distribution across industry, age, gender, company size and type (1) Although the survey population was targeted to the UMSL College of Business Alumni, the results are representative for other populations. The HR professionals completed their responses for their companies and the supervisors/managers answered the questions for their departments these perspectives included many different populations. 21

22 Demographics Gender: Male 67% Female 33% Type of Company: Private 45.4% Public 39.4% Not for profit 7.6% Other 7.6% Highest graduated degree: Bachelor s 63.2% Master s 31.2% Doctorate 3.2% Other 1.6% Associate s 0.8% Current or most recent position/title: Manager 28.4% Analyst 12.6% Staff Level 12.6% Other 12.3% Director 9.8% Vice President 9.8% President 8.2% Entry Level 5.7% CXO 2.2% Board Member 0.9% Other included the following: Instructor/Teacher Partner Portfolio Manager Consultant 22

23 Company's annual revenues? Large >$5 Billion, 23.0% Good mix of large and small companies - Revenue What range below represents your company's annual revenue? Small $0-50 Million, 37.2% $1-5 Billion, 18.6% $500-1 Billion, 5.5% $ Million, 10.9% $ Million, 4.9% 23

24 Individual / Non Supervisor versus Manager/ HR.Rep. Good mix of HR/Supervisors and Individuals Please check the option below that best describes your current or most recent position. Individual / Nonsupervisory, 40.6% Manager/Supervisor or Human Resources Representative, 59.4% 24

25 Work History - Different companies worked for in your career? 55% Only had 1 or 2 jobs Since graduation, how many different companies have you worked for in your career? >5, 10.4% 5, 8.8% 1, 33.6% 4, 15.2% 3, 10.4% 2, 21.6% 25

26 Critical Skills and Skills Gaps 26

27 List of 35 Skills Skills Skills Active Listening Applying Technology to Business Business Case Development Change Management Creativity / Innovation Critical/Analytical Thinking: Customer-Orientation Data Analysis Decision Making Driving Stakeholder Value Employee Engagement Facilitation Skills Generation Differences Management Global Business Perspective Leadership Meeting Management Networking - Internal and External Oral Communications

28 List of 35 Skills Skills Skills People Management/Supervisory Performance Management/Measures Portfolio Management Presenting and Selling Ideas Prioritization, Focus Process Improvement /Lean Thinking Project Management and Execution Relationship Building: Social Media Strategic Planning / Strategic thinking Teamwork/Collaboration Time Management Vendor Selection & Management Versatilist Workforce Diversity and Inclusion Written Communications Risk Management

29 Critical Skills / Skills Gaps Game Critical Skills Skills Gaps

30 Top 10 Critical Skills Are the Same as Critical Skills* Active Listening N Customer-Orientation # Critical/Analytical Thinking # Oral Communications # Time Management N Teamwork/Collaboration # Written Communications # Prioritization, Focus N Decision Making # Leadership # # (N) indicates a top 10 skill from 2008 that appeared in the top 10 for 2010 indicates a skill that is new for the 2010 survey 30

31 Top 10 Critical Skills Gaps Skills Gaps Leadership # People Management/Supervisory # Change Management # Strategic Planning Written Communications # Prioritization, Focus Active Listening N Time Management N Critical/Analytical Thinking # Lean Thinking / Process Improvement N # (N) indicates a top 10 skill from 2008 that appeared in the top 10 for 2010 indicates a skill that is new for the 2010 survey 31

32 Compare Top 10 Critical Skills vs out of 10 Critical Skills In 2010 were in Critical Skills Critical Thinking and Problem Solving Active Listening 2010 Critical Skills* (N) Decision Making Execution Oral Communications Customer-Orientation # Critical/Analytical Thinking # Oral Communications # Teamwork/Collaboration Time Management (N) Leadership Customer Orientation Written Communication Data Analysis Change Management Teamwork/Collaboration # Written Communications # Prioritization, Focus Decision Making # Leadership # # (N) indicates a top 10 skill from 2008 that appeared in the top 10 for 2010 indicates a skill that is new for the 2010 survey 32

33 Top 10 Critical Skills and the Degree of Skill Gaps 2010 Critical Skills Active Listening Customer-Orientation Critical/Analytical Thinking Oral Communications Time Management Teamwork/Collaboration Written Communications Prioritization, Focus Decision Making Leadership Degree of GAP Low 1 2 Med 3 4 High

34 Compare Top 10 Critical Skills and Skill Gaps out of 10 Critical Skills Have Skills Gaps 2010 Critical Skills* Active Listening Customer-Orientation Critical/Analytical Thinking # Oral Communications Time Management Teamwork/Collaboration Written Communications # Prioritization, Focus # Decision Making Leadership# 2010 Skill Gaps* Leadership People Management/Supervisory Change Management Strategic Planning Written Communications# Prioritization, Focus Active Listening Time Management Critical/Analytical Thinking Lean Thinking / Process Improvement (N) # (N) indicates a top 10 skill from 2008 that appeared in the top 10 for 2010 indicates a skill that is new for the 2010 survey 34

35 11 th to 20th Critical Skills & Gaps Critical Skills Relationship Building Applying Technology to Business Project Management and Execution Strategic Planning / Strategic thinking Data Analysis Presenting and Selling Ideas People Management/Supervisory Lean Thinking / Process Improvement Creativity / Innovation Performance Management/Measures 2010 Skill Gaps Decision Making Project Management and Execution Creativity / Innovation Oral Communications Applying Technology to Business Employee Engagement Presenting and Selling Ideas Business Case Development Meeting Management Teamwork/Collaboration 35

36 Comparison of skills gaps for supervisors and non supervisors Supervisors Weighted Avg Non-supervisors Weighted Avg Leadership 2.78 Change Management 2.74 Strategic Planning 2.72 Time Management 2.70 Written Communications 2.69 Active Listening 2.68 Prioritization, Focus 2.68 Critical/Analytical Thinking 2.66 People Management/Supervisory 2.66 Decision Making 2.60 Leadership 2.81 People Management/Supervisory 2.81 Written Communications 2.65 Lean Thinking / Process Improvement 2.65 Prioritization, Focus 2.63 Strategic Planning 2.63 Creativity / Innovation 2.63 Active Listening 2.62 Change Management 2.60 Project Management and Execution out of 10 the same 36

37 Impacts of Skill Gaps What are the areas of negative impact to your company as a result of the skill-gaps not being met? Reduced Productivity Reduced Overall Employee Performance Level Lower Employee Morale Higher Costs Reduced Customer Service Levels Lower Financial Results Lower Product/Service Quality Increased Risks Achieving Strategic Plan Other (please specify) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% Other responses: lack of leadership vision, lost market share, reduced positive working relationships, long-term sustainability, lower sales, and increased turnover. 37

38 Major Reasons for Skill Gaps Limited Experience Lack of awareness Academic/Business Environment Gap Apathy/Inappropriate priorities Other priorities Lack of time Speed of change Lack of funding Inadequate pre-college training Classes are not available Other (please specify) 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 38

39 How can we address these skill gaps? 39

40 How can universities help? How can the University help address these skill gaps? *Special projects joint with business *Expand internship programs *Continuing education classes *More business guest speakers in the classroom *Change curricula in degree program Add new emphasis areas Web-based instruction Weekend retreats on specific topics Other (please specify) New certificates 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% * Indicates items that were in the 2008 top 5 40

41 How can industry help? How can Industry help address these skill gaps? Mentoring Real Time, On the Job Training Cross-Training *Job Rotations Better Hiring *Classroom Training External Training *Internship - Full Time one semester *Special Assignments *Internship - Part Time one semester College Classroom Project Job Sharing Self-Study Other (please specify) Loan Executive Program 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% * Indicates items that were in the 2008 top 5 41

42 Industry s internal training programs? What internal training and development programs does your company have to address the skills needed? Self-study Classroom training Special projects Job rotation Internships Other (please specify) Volunteer work Loaned executive program 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 42

43 Wrap-Up 43

44 UMSL Actions Taken Input into the strategic planning process Expose student to more real business experience Increase guest speakers in classroom New class Project Execution Expand real project work for students IT classes Logistics classes Special projects, Part-time project for students Continue to build partnerships with business Express Scripts on Campus Brown Shoe Boeing Considering Skill-Gaps Continuing Education Course 44

45 Our Belief Skill gaps are too great and important to be left to self taught and/or trial and error. A transformation in business education involving the university and business is needed to close these gaps. 45

46 Conclusions Skill gaps are real and they continue to grow. Critical skill gaps have significant negative impacts. They exists is all types and sizes of companies Opportunities exist for universities and businesses to work more closely together. Universities need to change to include more real-world, business experience and continuing education. Businesses need to continue to provide internal development programs. Individuals must share the responsibility for their own development. We need to develop a sense of urgency, the time to address the problem is now. 46

47 Working Together Individual Business University 47

48 48